HB-4401, As Passed Senate, June 18, 2003                                    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                          SENATE SUBSTITUTE FOR                                 

                                                                                

                           HOUSE BILL NO. 4401                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

        <<A bill to amend 1979 PA 94, entitled                                      

                                                                                

    "An act to make appropriations to aid in the support of the public schools and the intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to prescribe penalties; and to repeal acts and parts of acts,"                  

    by amending the title and sections 3, 6, 8b, 11, 11f, 11g, 18, 19, 20,      

                                                                                

    22a, 22b, 24, 26a, 31a, 31d, 32c, 32d, 38, 39a, 41, 51a, 51c, 51d, 53a,     

                                                                                

    54, 56, 57, 61a, 62, 68, 74, 81, 94a, 98, 99, 101, 104a, 105, 107,          

                                                                                

    108, 147, and 166a (MCL 388.1603, 388.1606, 388.1608b, 388.1611,            

                                                                                

    388.1611f, 388.1611g, 388.1618, 388.1619, 388.1620, 388.1622a,              

                                                                                

    388.1622b, 388.1624, 388.1626a, 388.1631a, 388.1631d, 388.1632c,            

                                                                                

    388.1632d, 388.1638, 388.1639a, 388.1641, 388.1651a, 388.1651c,             

                                                                                

    388.1651d, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662,    

                                                                                

    388.1668, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1701,      

                                                                                

    388.1704a, 388.1705, 388.1707, 388.1708, 388.1747, and 388.1766a), the      

                                                                                

    title as amended by 1997 PA 142, section 3 as amended by 2000 PA 297,       

                                                                                

    sections 6, 11, 11f, 11g, 20, 22a,22b, 24, 26a, 31a, 31d, 32c, 32d, 39a,    

                                                                                

    41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 68, 74, 81, 94a, 98, 99,       

                                                                                

    104a, 107, 108, and 147 as amended by 2002 PA 521, section 8b as added      

                                                                                


    House Bill No. 4401 as amended June 18, 2003                  (1 of 2)      

    and sections 19, 38, and 105 as amended by 2002 PA 191, section 18 as       

                                                                                

    amended by 1999 PA 119, section 101 as amended by 2002 PA 476, and          

                                                                                

    section 166a as amended by 1996 PA 300, and by adding sections 20k, 22d,    

                                                                                

    22e, 22f, 31e, 34, 51e, 55a, 93, 98b, 99b, and 107a; and to repeal acts     

                                                                                

    and parts of acts.>>                                                                            

                                                                                

                                                                                

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

  <<TITLE

    An act to make appropriations to aid in the support of the public schools and the intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts.>>                                         

1       Sec. 3.  (1) "Average daily attendance", for the purposes of                

                                                                                

2   complying with federal law, means 92% of the membership as                  

                                                                                

3   defined in section 6(4).                                                    

                                                                                

4       (2) "Board" means the governing body of a district or public                

                                                                                

5   school academy.                                                             

                                                                                

6       (3) "Center" means the center for educational performance and               

                                                                                

7   information created in section 94a.                                         

                                                                                

8       (4)  (3)  "Cooperative education program" means a written                   

                                                                                

9   voluntary agreement between and among districts to provide                  

                                                                                

10  certain educational programs for pupils in certain groups of                

                                                                                

11  districts.  The written agreement shall be approved by all                  

                                                                                

12  affected districts at least annually and shall specify the                  

                                                                                

13  educational programs to be provided and the estimated number of             

                                                                                

14  pupils from each district who will participate in the educational           

                                                                                

15  programs.                                                                   

                                                                                

16      (5)  (4)  "Department", except in sections 67, 68, 107, and                 

                                                                                

17  108, means the department of education.                                     

                                                                                

18      (6)  (5)  "District" means a local school district                          

                                                                                

19  established under the revised school code, a local act school               

                                                                                

20  district, or, except in sections 6(4), 6(6), 13, 20, 22a, 23,               


                                                                                

1   31a, 32f, 105, and 105c, a public school academy.  Except in                

                                                                                

2   sections 6(4), 6(6), 13, 20, 22a, 105, and 105c, district also              

                                                                                

3   includes a university school.                                               

                                                                                

4       (7)  (6)  "District of residence", except as otherwise                      

                                                                                

5   provided in this subsection, means the district in which a                  

                                                                                

6   pupil's custodial parent or parents or legal guardian resides.              

                                                                                

7   For a pupil described in section 24b, the pupil's district of               

                                                                                

8   residence is the district in which the pupil enrolls under that             

                                                                                

9   section.  For a pupil described in section 6(4)(d), the pupil's             

                                                                                

10  district of residence shall be considered to be the district or             

                                                                                

11  intermediate district in which the pupil is counted in membership           

                                                                                

12  under that section.  For a pupil under court jurisdiction who is            

                                                                                

13  placed outside the district in which the pupil's custodial parent           

                                                                                

14  or parents or legal guardian resides, the pupil's district of               

                                                                                

15  residence shall be considered to be the educating district or               

                                                                                

16  educating intermediate district.                                            

                                                                                

17      (8)  (7)  "District superintendent" means the superintendent                

                                                                                

18  of a district, the chief administrator of a public school                   

                                                                                

19  academy, or the chief administrator of a university school.                 

                                                                                

20      Sec. 6.  (1) "Center program" means a program operated by a                 

                                                                                

21  district or intermediate district for special education pupils              

                                                                                

22  from several districts in programs for the autistically impaired,           

                                                                                

23  trainable mentally impaired, severely mentally impaired, severely           

                                                                                

24  multiply impaired, hearing impaired, physically and otherwise               

                                                                                

25  health impaired, and visually impaired.  Programs for emotionally           

                                                                                

26  impaired pupils housed in buildings that do not serve regular               

                                                                                

27  education pupils also qualify.  Unless otherwise approved by the            


                                                                                

1   department, a center program either shall serve all constituent             

                                                                                

2   districts within an intermediate district or shall serve several            

                                                                                

3   districts with less than 50% of the pupils residing in the                  

                                                                                

4   operating district.  In addition, special education center                  

                                                                                

5   program pupils placed part-time in noncenter programs to comply             

                                                                                

6   with the least restrictive environment provisions of section 612            

                                                                                

7   of part B of the individuals with disabilities education act,               

                                                                                

8   title VI of Public Law 91-230, 20 U.S.C. 1412, may be considered            

                                                                                

9   center program pupils for pupil accounting purposes for the time            

                                                                                

10  scheduled in either a center program or a noncenter program.                

                                                                                

11      (2) "District  pupil retention  and high school graduation                  

                                                                                

12  rate" means the  proportion of pupils who have not dropped out of           

                                                                                

13  school in the immediately preceding school year and is equal to 1           

                                                                                

14  minus the quotient of the number of pupils unaccounted for in the           

                                                                                

15  immediately preceding school year, as determined pursuant to                

                                                                                

16  subsection (3), divided by the pupils of the immediately                    

                                                                                

17  preceding school year  annual completion and pupil dropout rate             

                                                                                

18  that is calculated by the center pursuant to nationally                     

                                                                                

19  recognized standards.                                                       

                                                                                

20      (3) "District  pupil retention  and high school graduation                  

                                                                                

21  report" means a report of the number of pupils, excluding migrant           

                                                                                

22  and adult, in the district for the immediately preceding school             

                                                                                

23  year, adjusted for those pupils who have transferred into or out            

                                                                                

24  of the district  , transferred out of the district,  or                     

                                                                                

25  transferred to alternative programs,  and have graduated, to                

                                                                                

26  determine the number of pupils who are unaccounted for.  The                

                                                                                

27  number of pupils unaccounted for shall be calculated as                     


                                                                                

1   determined by the department  who leave high school with a                  

                                                                                

2   diploma or other credential.                                                

                                                                                

3       (4) "Membership", except as otherwise provided in this act,                 

                                                                                

4   means for a district, public school academy, university school,             

                                                                                

5   or intermediate district the sum of the product of .8 times the             

                                                                                

6   number of full-time equated pupils in grades K to 12 actually               

                                                                                

7   enrolled and in regular daily attendance on the pupil membership            

                                                                                

8   count day for the current school year, plus the product of .2               

                                                                                

9   times the final audited count from the supplemental count day for           

                                                                                

10  the immediately preceding school year.  All pupil counts used in            

                                                                                

11  this subsection are as determined by the department and                     

                                                                                

12  calculated by adding the number of pupils registered for                    

                                                                                

13  attendance plus pupils received by transfer and minus pupils lost           

                                                                                

14  as defined by rules promulgated by the superintendent, and as               

                                                                                

15  corrected by a subsequent department audit.  The amount of the              

                                                                                

16  foundation allowance for a pupil in membership is determined                

                                                                                

17  under section 20.  In making the calculation of membership, all             

                                                                                

18  of the following, as applicable, apply to determining the                   

                                                                                

19  membership of a district, public school academy, university                 

                                                                                

20  school, or intermediate district:                                           

                                                                                

21      (a) Except as otherwise provided in this subsection, and                    

                                                                                

22  pursuant to subsection (6), a pupil shall be counted in                     

                                                                                

23  membership in the pupil's educating district or districts.  An              

                                                                                

24  individual pupil shall not be counted for more than a total of              

                                                                                

25  1.0 full-time equated membership.                                           

                                                                                

26      (b) If a pupil is educated in a district other than the                     

                                                                                

27  pupil's district of residence, if the pupil is not being educated           


                                                                                

1   as part of a cooperative education program, if the pupil's                  

                                                                                

2   district of residence does not give the educating district its              

                                                                                

3   approval to count the pupil in membership in the educating                  

                                                                                

4   district, and if the pupil is not covered by an exception                   

                                                                                

5   specified in subsection (6) to the requirement that the educating           

                                                                                

6   district must have the approval of the pupil's district of                  

                                                                                

7   residence to count the pupil in membership, the pupil shall not             

                                                                                

8   be counted in membership in any district.                                   

                                                                                

9       (c) A special education pupil educated by the intermediate                  

                                                                                

10  district shall be counted in membership in the intermediate                 

                                                                                

11  district.                                                                   

                                                                                

12      (d) A pupil placed by a court or state agency in an                         

                                                                                

13  on-grounds program of a juvenile detention facility, a child                

                                                                                

14  caring institution, or a mental health institution, or a pupil              

                                                                                

15  funded under section 53a, shall be counted in membership in the             

                                                                                

16  district or intermediate district approved by the department to             

                                                                                

17  operate the program.                                                        

                                                                                

18      (e) A pupil enrolled in the Michigan schools for the deaf and               

                                                                                

19  blind shall be counted in membership in the pupil's intermediate            

                                                                                

20  district of residence.                                                      

                                                                                

21      (f) A pupil enrolled in a vocational education program                      

                                                                                

22  supported by a millage levied over an area larger than a single             

                                                                                

23  district or in an area vocational-technical education program               

                                                                                

24  established pursuant to section 690 of the revised school code,             

                                                                                

25  MCL 380.690, shall be counted only in the pupil's district of               

                                                                                

26  residence.                                                                  

                                                                                

27      (g) A pupil enrolled in a university school shall be counted                


                                                                                

1   in membership in the university school.                                     

                                                                                

2       (h) A pupil enrolled in a public school academy shall be                    

                                                                                

3   counted in membership in the public school academy.                         

                                                                                

4       (i) For a new district, university school, or public school                 

                                                                                

5   academy beginning its operation after December 31, 1994,                    

                                                                                

6   membership for the first 2 full or partial fiscal years of                  

                                                                                

7   operation shall be determined as follows:                                   

                                                                                

8                                                                                (i) If operations begin before the pupil membership count day                       

                                                                                

9   for the fiscal year, membership is the average number of                    

                                                                                

10  full-time equated pupils in grades K to 12 actually enrolled and            

                                                                                

11  in regular daily attendance on the pupil membership count day for           

                                                                                

12  the current school year and on the supplemental count day for the           

                                                                                

13  current school year, as determined by the department and                    

                                                                                

14  calculated by adding the number of pupils registered for                    

                                                                                

15  attendance on the pupil membership count day plus pupils received           

                                                                                

16  by transfer and minus pupils lost as defined by rules promulgated           

                                                                                

17  by the superintendent, and as corrected by a subsequent                     

                                                                                

18  department audit, plus the final audited count from the                     

                                                                                

19  supplemental count day for the current school year, and dividing            

                                                                                

20  that sum by 2.                                                              

                                                                                

21      (ii) If operations begin after the pupil membership count day                

                                                                                

22  for the fiscal year and not later than the supplemental count day           

                                                                                

23  for the fiscal year, membership is the final audited count of the           

                                                                                

24  number of full-time equated pupils in grades K to 12 actually               

                                                                                

25  enrolled and in regular daily attendance on the supplemental                

                                                                                

26  count day for the current school year.                                      

                                                                                

27      (j) If a district is the authorizing body for a public school               


                                                                                

1   academy, then, in the first school year in which pupils are                 

                                                                                

2   counted in membership on the pupil membership count day in the              

                                                                                

3   public school academy, the determination of the district's                  

                                                                                

4   membership shall exclude from the district's pupil count for the            

                                                                                

5   immediately preceding supplemental count day any pupils who are             

                                                                                

6   counted in the public school academy on that first pupil                    

                                                                                

7   membership count day who were also counted in the district on the           

                                                                                

8   immediately preceding supplemental count day.                               

                                                                                

9       (k) In a district, public school academy, university school,                

                                                                                

10  or intermediate district operating an extended school year                  

                                                                                

11  program approved by the superintendent, a pupil enrolled, but not           

                                                                                

12  scheduled to be in regular daily attendance on a pupil membership           

                                                                                

13  count day, shall be counted.                                                

                                                                                

14                                                                               (l) Pupils to be counted in membership shall be not less than                       

                                                                                

15  5 years of age on December 1 and less than 20 years of age on               

                                                                                

16  September 1 of the school year except a special education pupil             

                                                                                

17  who is enrolled and receiving instruction in a special education            

                                                                                

18  program or service approved by the department and not having a              

                                                                                

19  high school diploma who is less than 26 years of age as of                  

                                                                                

20  September 1 of the current school year shall be counted in                  

                                                                                

21  membership.                                                                 

                                                                                

22      (m) An individual who has obtained a high school diploma                    

                                                                                

23  shall not be counted in membership.  An individual who has                  

                                                                                

24  obtained a general education development (G.E.D.)  certificate              

                                                                                

25  shall not be counted in membership.  An individual participating            

                                                                                

26  in a job training program funded under former section 107a or a             

                                                                                

27  jobs program funded under former section 107b, administered by              


                                                                                

1   the Michigan strategic fund or the department of career                     

                                                                                

2   development, or participating in any successor of either of those           

                                                                                

3   2 programs, shall not be counted in membership.                             

                                                                                

4       (n) If a pupil counted in membership in a public school                     

                                                                                

5   academy is also educated by a district or intermediate district             

                                                                                

6   as part of a cooperative education program, the pupil shall be              

                                                                                

7   counted in membership only in the public school academy, and the            

                                                                                

8   instructional time scheduled for the pupil in the district or               

                                                                                

9   intermediate district shall be included in the full-time equated            

                                                                                

10  membership determination under subdivision (q).  However, for               

                                                                                

11  pupils receiving instruction in both a public school academy and            

                                                                                

12  in a district or intermediate district but not as a part of a               

                                                                                

13  cooperative education program, the following apply:                         

                                                                                

14                                                                               (i) If the public school academy provides instruction for at                        

                                                                                

15  least 1/2 of the class hours specified in subdivision (q), the              

                                                                                

16  public school academy shall receive as its prorated share of the            

                                                                                

17  full-time equated membership for each of those pupils an amount             

                                                                                

18  equal to 1 times the product of the hours of instruction the                

                                                                                

19  public school academy provides divided by the number of hours               

                                                                                

20  specified in subdivision (q) for full-time equivalency, and the             

                                                                                

21  remainder of the full-time membership for each of those pupils              

                                                                                

22  shall be allocated to the district or intermediate district                 

                                                                                

23  providing the remainder of the hours of instruction.                        

                                                                                

24      (ii) If the public school academy provides instruction for                   

                                                                                

25  less than 1/2 of the class hours specified in subdivision (q),              

                                                                                

26  the district or intermediate district providing the remainder of            

                                                                                

27  the hours of instruction shall receive as its prorated share of             


                                                                                

1   the full-time equated membership for each of those pupils an                

                                                                                

2   amount equal to 1 times the product of the hours of instruction             

                                                                                

3   the district or intermediate district provides divided by the               

                                                                                

4   number of hours specified in subdivision (q) for full-time                  

                                                                                

5   equivalency, and the remainder of the full-time membership for              

                                                                                

6   each of those pupils shall be allocated to the public school                

                                                                                

7   academy.                                                                    

                                                                                

8       (o) An individual less than 16 years of age as of September 1               

                                                                                

9   of the current school year who is being educated in an                      

                                                                                

10  alternative education program shall not be counted in membership            

                                                                                

11  if there are also adult education participants being educated in            

                                                                                

12  the same program or classroom.                                              

                                                                                

13      (p) The department shall give a uniform interpretation of                   

                                                                                

14  full-time and part-time memberships.                                        

                                                                                

15      (q) The number of class hours used to calculate full-time                   

                                                                                

16  equated memberships shall be consistent with section 101(3).  In            

                                                                                

17  determining full-time equated memberships for pupils who are                

                                                                                

18  enrolled in a postsecondary institution, a pupil shall not be               

                                                                                

19  considered to be less than a full-time equated pupil solely                 

                                                                                

20  because of the effect of his or her postsecondary enrollment,               

                                                                                

21  including necessary travel time, on the number of class hours               

                                                                                

22  provided by the district to the pupil.                                      

                                                                                

23      (r) Full-time equated memberships for pupils in kindergarten                

                                                                                

24  shall be determined by dividing the number of class hours                   

                                                                                

25  scheduled and provided per year per kindergarten pupil by a                 

                                                                                

26  number equal to 1/2 the number used for determining full-time               

                                                                                

27  equated memberships for pupils in grades 1 to 12.                           


                                                                                

1       (s) For a district, university school, or public school                     

                                                                                

2   academy that has pupils enrolled in a grade level that was not              

                                                                                

3   offered by the district, university school, or public school                

                                                                                

4   academy in the immediately preceding school year, the number of             

                                                                                

5   pupils enrolled in that grade level to be counted in membership             

                                                                                

6   is the average of the number of those pupils enrolled and in                

                                                                                

7   regular daily attendance on the pupil membership count day and              

                                                                                

8   the supplemental count day of the current school year, as                   

                                                                                

9   determined by the department.  Membership shall be calculated by            

                                                                                

10  adding the number of pupils registered for attendance in that               

                                                                                

11  grade level on the pupil membership count day plus pupils                   

                                                                                

12  received by transfer and minus pupils lost as defined by rules              

                                                                                

13  promulgated by the superintendent, and as corrected by subsequent           

                                                                                

14  department audit, plus the final audited count from the                     

                                                                                

15  supplemental count day for the current school year, and dividing            

                                                                                

16  that sum by 2.                                                              

                                                                                

17      (t) A pupil enrolled in a cooperative education program may                 

                                                                                

18  be counted in membership in the pupil's district of residence               

                                                                                

19  with the written approval of all parties to the cooperative                 

                                                                                

20  agreement.                                                                  

                                                                                

21      (u) If, as a result of a disciplinary action, a district                    

                                                                                

22  determines through the district's alternative or disciplinary               

                                                                                

23  education program that the best instructional placement for a               

                                                                                

24  pupil is in the pupil's home, if that placement is authorized in            

                                                                                

25  writing by the district superintendent and district alternative             

                                                                                

26  or disciplinary education supervisor, and if the district                   

                                                                                

27  provides appropriate instruction as described in this subdivision           


                                                                                

1   to the pupil at the pupil's home, the district may count the                

                                                                                

2   pupil in membership on a pro rata basis, with the proration based           

                                                                                

3   on the number of hours of instruction the district actually                 

                                                                                

4   provides to the pupil divided by the number of hours specified in           

                                                                                

5   subdivision (q) for full-time equivalency.  For the purposes of             

                                                                                

6   this subdivision, a district shall be considered to be providing            

                                                                                

7   appropriate instruction if all of the following are met:                    

                                                                                

8                                                                                (i) The district provides at least 2 nonconsecutive hours of                        

                                                                                

9   instruction per week to the pupil at the pupil's home under the             

                                                                                

10  supervision of a certificated teacher.                                      

                                                                                

11      (ii) The district provides instructional materials,                          

                                                                                

12  resources, and supplies, except computers, that are comparable to           

                                                                                

13  those otherwise provided in the district's alternative education            

                                                                                

14  program.                                                                    

                                                                                

15      (iii) Course content is comparable to that in the district's                 

                                                                                

16  alternative education program.                                              

                                                                                

17      (iv) Credit earned is awarded to the pupil and placed on the                 

                                                                                

18  pupil's transcript.                                                         

                                                                                

19      (v) A pupil enrolled in an alternative or disciplinary                      

                                                                                

20  education program described in section 25 shall be counted in               

                                                                                

21  membership in the district or public school academy that expelled           

                                                                                

22  the pupil.                                                                  

                                                                                

23      (w) If a pupil was enrolled in a public school academy on the               

                                                                                

24  pupil membership count day, if the public school academy's                  

                                                                                

25  contract with its authorizing body is revoked, and if the pupil             

                                                                                

26  enrolls in a district within 45 days after the pupil membership             

                                                                                

27  count day, the department shall adjust the district's pupil count           


                                                                                

1   for the pupil membership count day to include the pupil in the              

                                                                                

2   count.                                                                      

                                                                                

3       (x) For a public school academy that has been in operation                  

                                                                                

4   for at least 2 years and that suspended operations for at least 1           

                                                                                

5   semester and is resuming operations, membership is the sum of the           

                                                                                

6   product of .8 times the number of full-time equated pupils in               

                                                                                

7   grades K to 12 actually enrolled and in regular daily attendance            

                                                                                

8   on the first pupil membership count day or supplemental count               

                                                                                

9   day, whichever is first, occurring after operations resume, plus            

                                                                                

10  the product of .2 times the final audited count from the most               

                                                                                

11  recent pupil membership count day or supplemental count day that            

                                                                                

12  occurred before suspending operations, as determined by the                 

                                                                                

13  superintendent.                                                             

                                                                                

14      (y) If a district's membership for a particular fiscal year,                

                                                                                

15  as otherwise calculated under this subsection, would be less than           

                                                                                

16  1,550 pupils and the district has 4.5 or fewer pupils per square            

                                                                                

17  mile, as determined by the department, the district's membership            

                                                                                

18  shall be considered to be the membership figure calculated under            

                                                                                

19  this subdivision.   However, beginning in 2003-2004, this                   

                                                                                

20  subdivision applies only to districts located in the Lower                  

                                                                                

21  Peninsula.  If a district educates and counts in its membership             

                                                                                

22  pupils in grades 9 to 12 who reside in a contiguous district that           

                                                                                

23  does not operate grades 9 to 12 and if 1 or both of the affected            

                                                                                

24  districts request the department to use the determination allowed           

                                                                                

25  under this sentence, the department shall include the square                

                                                                                

26  mileage of both districts in determining the number of pupils per           

                                                                                

27  square mile for each of the districts for the purposes of this              


    House Bill No. 4401 as amended June 18, 2003                                

1   subdivision.  The membership figure calculated under this                   

                                                                                

2   subdivision is the greater of the following:                                

                                                                                

3                                                                                (i) The average of the district's membership for the                                

                                                                                

4   3-fiscal-year period ending with that fiscal year, calculated by            

                                                                                

5   adding the district's actual membership for each of those 3                 

                                                                                

6   fiscal years, as otherwise calculated under this subsection, and            

                                                                                

7   dividing the sum of those 3 membership figures by 3.                        

                                                                                

8       (ii) The district's actual membership for that fiscal year as                

                                                                                

9   otherwise calculated under this subsection.                                 

                                                                                

10      (z) If a public school academy that is not in its first or                  

                                                                                

11  second year of operation closes at the end of a school year and             

                                                                                

12  does not reopen for the next school year, the department shall              

                                                                                

13  adjust the membership count of the district in which a former               

                                                                                

14  pupil of the public school academy enrolls and is in regular                

                                                                                

15  daily attendance for the next school year to ensure that the                

                                                                                

16  district receives the same amount of membership aid for the pupil           

                                                                                

17  as if the pupil were counted in the district on the supplemental            

                                                                                

18  count day of the preceding school year.                                     

                                                                                

19      (5) "Public school academy" means a public school academy <<, urban high school academy,>> or                                                                   

20  strict discipline academy operating under the revised school                

                                                                                

21  code.                                                                       

                                                                                

22      (6) "Pupil" means a person in membership in a public school.                

                                                                                

23  A district must have the approval of the pupil's district of                

                                                                                

24  residence to count the pupil in membership, except approval by              

                                                                                

25  the pupil's district of residence shall not be required for any             

                                                                                

26  of the following:                                                           

                                                                                

27      (a) A nonpublic part-time pupil enrolled in grades 1 to 12 in               


                                                                                

1   accordance with section 166b.                                               

                                                                                

2       (b) A pupil receiving 1/2 or less of his or her instruction                 

                                                                                

3   in a district other than the pupil's district of residence.                 

                                                                                

4       (c) A pupil enrolled in a public school academy or university               

                                                                                

5   school.                                                                     

                                                                                

6       (d) A pupil enrolled in a district other than the pupil's                   

                                                                                

7   district of residence under an intermediate district schools of             

                                                                                

8   choice pilot program as described in section 91a or former                  

                                                                                

9   section 91 if the intermediate district and its constituent                 

                                                                                

10  districts have been exempted from section 105.                              

                                                                                

11      (e) A pupil enrolled in a district other than the pupil's                   

                                                                                

12  district of residence but within the same intermediate district             

                                                                                

13  if the educating district enrolls nonresident pupils in                     

                                                                                

14  accordance with section 105.                                                

                                                                                

15      (f) A pupil enrolled in a district other than the pupil's                   

                                                                                

16  district of residence if the pupil has been continuously enrolled           

                                                                                

17  in the educating district since a school year in which the pupil            

                                                                                

18  enrolled in the educating district under section 105 or 105c and            

                                                                                

19  in which the educating district enrolled nonresident pupils in              

                                                                                

20  accordance with section 105 or 105c.                                        

                                                                                

21      (g) A pupil who has made an official written complaint or                   

                                                                                

22  whose parent or legal guardian has made an official written                 

                                                                                

23  complaint to law enforcement officials and to school officials of           

                                                                                

24  the pupil's district of residence that the pupil has been the               

                                                                                

25  victim of a criminal sexual assault or other serious assault, if            

                                                                                

26  the official complaint either indicates that the assault occurred           

                                                                                

27  at school or that the assault was committed by 1 or more other              


                                                                                

1   pupils enrolled in the school the pupil would otherwise attend in           

                                                                                

2   the district of residence or by an employee of the district of              

                                                                                

3   residence.  A person who intentionally makes a false report of a            

                                                                                

4   crime to law enforcement officials for the purposes of this                 

                                                                                

5   subdivision is subject to section 411a of the Michigan penal                

                                                                                

6   code, 1931 PA 328, MCL 750.411a, which provides criminal                    

                                                                                

7   penalties for that conduct.  As used in this subdivision:                   

                                                                                

8                                                                                (i) "At school" means in a classroom, elsewhere on school                           

                                                                                

9   premises, on a school bus or other school-related vehicle, or at            

                                                                                

10  a school-sponsored activity or event whether or not it is held on           

                                                                                

11  school premises.                                                            

                                                                                

12      (ii) "Serious assault" means an act that constitutes a felony                

                                                                                

13  violation of chapter XI of the Michigan penal code, 1931 PA 328,            

                                                                                

14  MCL 750.81 to 750.90g, or that constitutes an assault and                   

                                                                                

15  infliction of serious or aggravated injury under section 81a of             

                                                                                

16  the Michigan penal code, 1931 PA 328, MCL 750.81a.                          

                                                                                

17      (h) A pupil enrolled in a district located in a contiguous                  

                                                                                

18  intermediate district, as described in section 105c, if the                 

                                                                                

19  educating district enrolls those nonresident pupils in accordance           

                                                                                

20  with section 105c.                                                          

                                                                                

21      (i) A pupil whose district of residence changed after the                   

                                                                                

22  pupil membership count day and before the supplemental count day            

                                                                                

23  and who continues to be enrolled on the supplemental count day as           

                                                                                

24  a nonresident in the district in which he or she was enrolled as            

                                                                                

25  a resident on the pupil membership count day of the same school             

                                                                                

26  year.                                                                       

                                                                                

27      (j) A pupil enrolled in an alternative education program                    


                                                                                

1   operated by a district other than his or her district of                    

                                                                                

2   residence who meets 1 or more of the following:                             

                                                                                

3                                                                                (i) The pupil has been suspended or expelled from his or her                        

                                                                                

4   district of residence for any reason, including, but not limited            

                                                                                

5   to, a suspension or expulsion under section 1310, 1311, or 1311a            

                                                                                

6   of the revised school code, MCL 380.1310, 380.1311, and                     

                                                                                

7   380.1311a.                                                                  

                                                                                

8       (ii) The pupil had previously dropped out of school.                         

                                                                                

9       (iii) The pupil is pregnant or is a parent.                                  

                                                                                

10      (iv) The pupil has been referred to the program by a court.                  

                                                                                

11      (k) A pupil enrolled in the Michigan virtual high school, for               

                                                                                

12  the pupil's enrollment in the Michigan virtual high school.                 

                                                                                

13      However, if a district that is not a first class district                   

                                                                                

14  educates pupils who reside in a first class district and if the             

                                                                                

15  primary instructional site for those pupils is located within the           

                                                                                

16  boundaries of the first class district, the educating district              

                                                                                

17  must have the approval of the first class district to count those           

                                                                                

18  pupils in membership.  As used in this subsection, "first class             

                                                                                

19  district" means a district organized as a school district of the            

                                                                                

20  first class under the revised school code.                                  

                                                                                

21      (7) "Pupil membership count day" of a district or                           

                                                                                

22  intermediate district means:                                                

                                                                                

23      (a) Except as provided in subdivision (b), the fourth                       

                                                                                

24  Wednesday in September each school year.                                    

                                                                                

25      (b) For a district or intermediate district maintaining                     

                                                                                

26  school during the entire school year, the following days:                   

                                                                                

27                                                                               (i) Fourth Wednesday in July.                                                       


                                                                                

1       (ii) Fourth Wednesday in September.                                          

                                                                                

2       (iii) Second Wednesday in February.                                          

                                                                                

3       (iv) Fourth Wednesday in April.                                              

                                                                                

4       (8) "Pupils in grades K to 12 actually enrolled and in                      

                                                                                

5   regular daily attendance" means pupils in grades K to 12 in                 

                                                                                

6   attendance and receiving instruction in all classes for which               

                                                                                

7   they are enrolled on the pupil membership count day or the                  

                                                                                

8   supplemental count day, as applicable.  A pupil who is absent               

                                                                                

9   from any of the classes in which the pupil is enrolled on the               

                                                                                

10  pupil membership count day or supplemental count day and who does           

                                                                                

11  not attend each of those classes during the 10 consecutive school           

                                                                                

12  days immediately following the pupil membership count day or                

                                                                                

13  supplemental count day, except for a pupil who has been excused             

                                                                                

14  by the district, shall not be counted as 1.0 full-time equated              

                                                                                

15  membership.  In addition, a pupil who is excused from attendance            

                                                                                

16  on the pupil membership count day or supplemental count day and             

                                                                                

17  who fails to attend each of the classes in which the pupil is               

                                                                                

18  enrolled within 30 calendar days after the pupil membership count           

                                                                                

19  day or supplemental count day shall not be counted as 1.0                   

                                                                                

20  full-time equated membership.  Pupils not counted as 1.0                    

                                                                                

21  full-time equated membership due to an absence from a class shall           

                                                                                

22  be counted as a prorated membership for the classes the pupil               

                                                                                

23  attended.  For purposes of this subsection, "class" means a                 

                                                                                

24  period of time in 1 day when pupils and a certificated teacher or           

                                                                                

25  legally qualified substitute teacher are together and instruction           

                                                                                

26  is taking place.                                                            

                                                                                

27      (9) "Rule" means a rule promulgated pursuant to the                         


                                                                                

1   administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to           

                                                                                

2   24.328.                                                                     

                                                                                

3       (10) "The revised school code" means 1976 PA 451, MCL 380.1                 

                                                                                

4   to 380.1852.                                                                

                                                                                

5       (11) "School fiscal year" means a fiscal year that commences                

                                                                                

6   July 1 and continues through June 30.                                       

                                                                                

7       (12) "State board" means the state board of education.                      

                                                                                

8       (13) "Superintendent", unless the context clearly refers to a               

                                                                                

9   district or intermediate district superintendent, means the                 

                                                                                

10  superintendent of public instruction described in section 3 of              

                                                                                

11  article VIII of the state constitution of 1963.                             

                                                                                

12      (14) "Supplemental count day" means the day on which the                    

                                                                                

13  supplemental pupil count is conducted under section 6a.                     

                                                                                

14      (15) "Tuition pupil" means a pupil of school age attending                  

                                                                                

15  school in a district other than the pupil's district of residence           

                                                                                

16  for whom tuition may be charged.  Tuition pupil does not include            

                                                                                

17  a pupil who is a special education pupil or a pupil described in            

                                                                                

18  subsection (6)(d) to (k).  A pupil's district of residence shall            

                                                                                

19  not require a high school tuition pupil, as provided under                  

                                                                                

20  section 111, to attend another school district after the pupil              

                                                                                

21  has been assigned to a school district.                                     

                                                                                

22      (16) "State school aid fund" means the state school aid fund                

                                                                                

23  established in section 11 of article IX of the state constitution           

                                                                                

24  of 1963.                                                                    

                                                                                

25      (17) "Taxable value" means the taxable value of property as                 

                                                                                

26  determined under section 27a of the general property tax act,               

                                                                                

27  1893 PA 206, MCL 211.27a.                                                   


                                                                                

1       (18) "Textbook" means a book that is selected and approved by               

                                                                                

2   the governing board of a district and that contains a                       

                                                                                

3   presentation of principles of a subject, or that is a literary              

                                                                                

4   work relevant to the study of a subject required for the use of             

                                                                                

5   classroom pupils, or another type of course material that forms             

                                                                                

6   the basis of classroom instruction.                                         

                                                                                

7       (19)  (18)  "Total state aid" or "total state school aid"                   

                                                                                

8   means the total combined amount of all funds due to a district,             

                                                                                

9   intermediate district, or other entity under all of the                     

                                                                                

10  provisions of this act.                                                     

                                                                                

11      (20)  (19)  "University school" means an instructional                      

                                                                                

12  program operated by a public university under section 23 that               

                                                                                

13  meets the requirements of section 23.                                       

                                                                                

14      Sec.  8b.  (1) The department shall assign a district code                  

                                                                                

15  to each public school academy that is authorized under the                  

                                                                                

16  revised school code and is eligible to receive funding under this           

                                                                                

17  act within 30 days after a contract is submitted to the                     

                                                                                

18  department by the authorizing body of a public school academy.              

                                                                                

19      (2) If the department does not assign a district code to a                  

                                                                                

20  public school academy  in a timely manner  within the 30-day                

                                                                                

21  period described in subsection (1), the  department of treasury             

                                                                                

22  may assign a temporary district code to the public school academy           

                                                                                

23  for the purpose of making payments under this act.  district code           

                                                                                

24  the department shall use to make payments under this act to the             

                                                                                

25  newly authorized public school academy shall be a number that is            

                                                                                

26  equivalent to the sum of the last district code assigned to a               

                                                                                

27  public school academy located in the same county as the newly               


                                                                                

1   authorized public school academy plus 1.  However, if there is              

                                                                                

2   not an existing public school academy located in the same county            

                                                                                

3   as the newly authorized public school academy, then the district            

                                                                                

4   code the department shall use to make payments under this act to            

                                                                                

5   the newly authorized public school academy shall be a 5-digit               

                                                                                

6   number that has the county code in which the public school                  

                                                                                

7   academy is located as its first 2 digits, 9 as its third digit, 0           

                                                                                

8   as its fourth digit, and 1 as its fifth digit.                              

                                                                                

9       Sec. 11.  (1)  For the fiscal year ending September 30,                     

                                                                                

10  2002, there is appropriated for the public schools of this state            

                                                                                

11  and certain other state purposes relating to education the sum of           

                                                                                

12  $10,990,148,200.00 from the state school aid fund established by            

                                                                                

13  section 11 of article IX of the state constitution of 1963 and              

                                                                                

14  the sum of $198,413,500.00 from the general fund.  For the fiscal           

                                                                                

15  year ending September 30, 2003, there is appropriated for the               

                                                                                

16  public schools of this state and certain other state purposes               

                                                                                

17  relating to education the sum of  $11,259,441,400.00                        

                                                                                

18  $11,230,753,400.00 from the state school aid fund established by            

                                                                                

19  section 11 of article IX of the state constitution of 1963, the             

                                                                                

20  sum of $198,413,500.00 from the general fund, and the sum of                

                                                                                

21  $700,000.00 from local revenues.   However, if legislation                  

                                                                                

22  authorizing the transfer of $79,500,000.00 from the Michigan                

                                                                                

23  employment security act contingent fund, penalties and interest             

                                                                                

24  subaccount, is not enacted and in effect on or before October 1,            

                                                                                

25  2002, there is instead appropriated from the general fund for               

                                                                                

26  2002-2003 the sum of $122,656,500.00.  For the fiscal year ending           

                                                                                

27  September 30, 2004, there is appropriated for the public schools            


                                                                                

1   of this state and certain other state purposes relating to                  

                                                                                

2   education the sum of  $11,246,667,400.00  $10,972,778,500.00 from           

                                                                                

3   the state school aid fund established by section 11 of article IX           

                                                                                

4   of the state constitution of 1963 and the sum of                            

                                                                                

5   $198,413,500.00  $306,800,000.00 from the general fund.  From              

                                                                                

6   the merit award trust fund established in section 3 of the                  

                                                                                

7   Michigan merit award scholarship act, 1999 PA 94, MCL 390.1453,             

                                                                                

8   $17,000,000.00 is transferred and appropriated to the state                 

                                                                                

9   school aid fund for the fiscal year ending September 30, 2004.              

                                                                                

10  Upon certification by the state treasurer that the school bond              

                                                                                

11  loan fund debt owed by this state under 1961 PA 112, MCL 388.981            

                                                                                

12  to 388.985, has been refinanced, the net proceeds from that                 

                                                                                

13  transaction shall be deposited in the state school aid fund. In             

                                                                                

14  addition, available federal funds are appropriated for each of              

                                                                                

15  those fiscal years.                                                         

                                                                                

16      (2) The appropriations under this section shall be allocated                

                                                                                

17  as provided in this act.  Money appropriated under this section             

                                                                                

18  from the general fund  and from available federal funds  shall be           

                                                                                

19  expended to fund the purposes of this act before the expenditure            

                                                                                

20  of money appropriated under this section from the state school              

                                                                                

21  aid fund.  If the maximum amount appropriated under this section            

                                                                                

22  from the state school aid fund for a fiscal year exceeds the                

                                                                                

23  amount necessary to fully fund allocations under this act from              

                                                                                

24  the state school aid fund, that excess amount shall not be                  

                                                                                

25  expended in that state fiscal year and shall not lapse to the               

                                                                                

26  general fund, but instead shall remain in the state school aid              

                                                                                

27  fund.                                                                       


                                                                                

1       (3) If the maximum amount appropriated under this section and               

                                                                                

2   section 11f from the state school aid fund for a fiscal year                

                                                                                

3   exceeds the amount available for expenditure from the state                 

                                                                                

4   school aid fund for that fiscal year, payments under sections               

                                                                                

5   11f, 11g, 22a, 31d, 51a(2), and 51c shall be made in full.  In              

                                                                                

6   addition, for districts beginning operations after 1994-95 that             

                                                                                

7   qualify for payments under section 22b, payments under section              

                                                                                

8   22b shall be made so that the qualifying districts receive the              

                                                                                

9   lesser of an amount equal to the 1994-95 foundation allowance of            

                                                                                

10  the district in which the district beginning operations after               

                                                                                

11  1994-95 is located or $5,500.00.  The amount of the payment to be           

                                                                                

12  made under section 22b for these qualifying districts shall be as           

                                                                                

13  calculated under section 22a, with the balance of the payment               

                                                                                

14  under section 22b being subject to the proration otherwise                  

                                                                                

15  provided under this subsection and subsection (4) State  For             

                                                                                

16  proration before May 1, 2003, state payments under each of the              

                                                                                

17  other sections of this act from all state funding sources shall             

                                                                                

18  be prorated on an equal percentage basis as necessary to reflect            

                                                                                

19  the amount available for expenditure from the state school aid              

                                                                                

20  fund for  that  the affected fiscal year.  If additional                    

                                                                                

21  proration is necessary in 2002-2003 because of the outcome of any           

                                                                                

22  revenue estimating conference occurring after May 1, 2003, and              

                                                                                

23  for any proration necessary after 2002-2003, state payments under           

                                                                                

24  each of the other sections of this act from all state funding               

                                                                                

25  sources shall be prorated in the manner prescribed in subsection            

                                                                                

26  (4) as necessary to reflect the amount available for expenditure            

                                                                                

27  from the state school aid fund for the affected fiscal year.                


                                                                                

1   However, if the department of treasury determines that proration            

                                                                                

2   will be required under this subsection, the department of                   

                                                                                

3   treasury shall notify the state budget director, and the state              

                                                                                

4   budget director shall not notify the legislature at least 30                

                                                                                

5   calendar days or 6 legislative session days, whichever is more,             

                                                                                

6   before the department reduces any payments under this act because           

                                                                                

7   of the proration.  During the 30 calendar day or 6 legislative              

                                                                                

8   session day period after that notification by the state budget              

                                                                                

9   director, the department shall not reduce any payments under this           

                                                                                

10  act because of proration under this subsection.  The legislature            

                                                                                

11  may prevent proration from occurring by, within the 30 calendar             

                                                                                

12  day or 6 legislative session day period after that notification             

                                                                                

13  by the state budget director, enacting legislation appropriating            

                                                                                

14  additional funds from the general fund, countercyclical budget              

                                                                                

15  and economic stabilization fund, state school aid fund balance,             

                                                                                

16  or another source to fund the amount of the projected shortfall.            

                                                                                

17      (4) If additional proration is necessary in 2002-2003 because               

                                                                                

18  of the outcome of any revenue estimating conference occurring               

                                                                                

19  after May 1, 2003 and for any proration necessary after                     

                                                                                

20  2002-2003, the department shall calculate the proration in                  

                                                                                

21  district and intermediate district payments that is required                

                                                                                

22  under subsection (3) as follows:                                            

                                                                                

23      (a) The department shall recover 95% of the proration amount                

                                                                                

24  required under subsection (3) by reducing payments to districts.            

                                                                                

25  This reduction shall be made by calculating an equal dollar                 

                                                                                

26  amount per pupil as necessary to recover this percentage of the             

                                                                                

27  proration amount and reducing each district's total state school            


                                                                                

1   aid from state sources, other than payments under sections 11f,             

                                                                                

2   11g, 22a, 31d, 51a(2), 51a(12), 51c, 53a, and 56, by that                   

                                                                                

3   amount.                                                                     

                                                                                

4       (b) The department shall recover the remaining 5% of the                    

                                                                                

5   proration amount required under subsection (3) by reducing                  

                                                                                

6   payments to intermediate districts.  This reduction shall be made           

                                                                                

7   by reducing the payments to each intermediate district, other               

                                                                                

8   than payments under sections 11f, 11g, 22a, 31d, 51a(2), 51a(12),           

                                                                                

9   51c, 53a, and 56, on an equal percentage basis.                             

                                                                                

10      (5) For the fiscal year ending September 30, 2003 only, in                  

                                                                                

11  addition to the appropriations under subsection (1), the amount             

                                                                                

12  of $61,000,000.00 is transferred and appropriated from the                  

                                                                                

13  general fund to the state school aid fund.  This transfer                   

                                                                                

14  reflects the estimated net shortfall in state school aid fund               

                                                                                

15  revenue as determined at the May 2003 consensus revenue                     

                                                                                

16  estimating conference and is appropriated to avoid any further              

                                                                                

17  proration under subsection (3) due to that estimated shortfall.             

                                                                                

18      (6)  (4)  Except for the allocation under section 26a, any                  

                                                                                

19  general fund allocations under this act that are not expended by            

                                                                                

20  the end of the state fiscal year are transferred to the state               

                                                                                

21  school aid fund.                                                            

                                                                                

22      Sec. 11f.  (1)  In addition to any other money appropriated                 

                                                                                

23  under this act, there is appropriated from the state school aid             

                                                                                

24  fund  From the appropriations under section 11, there is                    

                                                                                

25  allocated for the purposes of this section an amount not to                 

                                                                                

26  exceed $32,000,000.00  each fiscal year for the fiscal year                 

                                                                                

27  ending September 30, 2002, for the fiscal year ending September             


                                                                                

1   30, 2003,  for the fiscal year ending September 30, 2004  ,  and            

                                                                                

2   for each succeeding fiscal year through the fiscal year ending              

                                                                                

3   September 30, 2008.  Payments under this section will cease after           

                                                                                

4   September 30, 2008.  These  appropriations  allocations are for             

                                                                                

5   paying the amounts described in subsection (4) to districts and             

                                                                                

6   intermediate districts, other than those receiving a lump sum               

                                                                                

7   payment under subsection (2), that were not plaintiffs in the               

                                                                                

8   consolidated cases known as Durant v State of Michigan, Michigan            

                                                                                

9   supreme court docket no. 104458-104492 and that, on or before               

                                                                                

10  March 2, 1998, submitted to the state treasurer a board                     

                                                                                

11  resolution waiving any right or interest the district or                    

                                                                                

12  intermediate district has or may have in any claim or litigation            

                                                                                

13  based on or arising out of any claim or potential claim through             

                                                                                

14  September 30, 1997 that is or was similar to the claims asserted            

                                                                                

15  by the plaintiffs in the consolidated cases known as Durant v               

                                                                                

16  State of Michigan.  The waiver resolution shall be in form and              

                                                                                

17  substance as required under subsection  (8)  (7).  The state                

                                                                                

18  treasurer is authorized to accept such a waiver resolution on               

                                                                                

19  behalf of this state.  The amounts described in this subsection             

                                                                                

20  represent offers of settlement and compromise of any claim or               

                                                                                

21  claims that were or could have been asserted by these districts             

                                                                                

22  and intermediate districts, as described in this subsection.                

                                                                                

23      (2) In addition to any other money appropriated under this                  

                                                                                

24  act, there was appropriated from the state school aid fund an               

                                                                                

25  amount not to exceed $1,700,000.00 for the fiscal year ending               

                                                                                

26  September 30, 1999.  This appropriation was for paying the                  

                                                                                

27  amounts described in this subsection to districts and                       


                                                                                

1   intermediate districts that were not plaintiffs in the                      

                                                                                

2   consolidated cases known as Durant v State of Michigan; that, on            

                                                                                

3   or before March 2, 1998, submitted to the state treasurer a board           

                                                                                

4   resolution waiving any right or interest the district or                    

                                                                                

5   intermediate district had or may have had in any claim or                   

                                                                                

6   litigation based on or arising out of any claim or potential                

                                                                                

7   claim through September 30, 1997 that is or was similar to the              

                                                                                

8   claims asserted by the plaintiffs in the consolidated cases known           

                                                                                

9   as Durant v State of Michigan; and for which the total amount               

                                                                                

10  listed in section 11h and paid under this section was less than             

                                                                                

11  $75,000.00.  For a district or intermediate district qualifying             

                                                                                

12  for a payment under this subsection, the entire amount listed for           

                                                                                

13  the district or intermediate district in section 11h was paid in            

                                                                                

14  a lump sum on November 15, 1998 or on the next business day                 

                                                                                

15  following that date.  The amounts paid under this subsection                

                                                                                

16  represent offers of settlement and compromise of any claim or               

                                                                                

17  claims that were or could have been asserted by these districts             

                                                                                

18  and intermediate districts, as described in this subsection.                

                                                                                

19      (3) This section does not create any obligation or liability                

                                                                                

20  of this state to any district or intermediate district that does            

                                                                                

21  not submit a waiver resolution described in this section.  This             

                                                                                

22  section, any other provision of this act, and section 353e of the           

                                                                                

23  management and budget act, 1984 PA 431, MCL 18.1353e, are not               

                                                                                

24  intended to admit liability or waive any defense that is or would           

                                                                                

25  be available to this state or its agencies, employees, or agents            

                                                                                

26  in any litigation or future litigation with a district or                   

                                                                                

27  intermediate district.                                                      


                                                                                

1       (4) The amount paid each fiscal year to each district or                    

                                                                                

2   intermediate district under subsection (1) shall be 1/20 of the             

                                                                                

3   total amount listed in section 11h for each listed district or              

                                                                                

4   intermediate district that qualifies for a payment under                    

                                                                                

5   subsection (1).  The amounts listed in section 11h and paid in              

                                                                                

6   part under this subsection and in a lump sum under subsection (2)           

                                                                                

7   are offers of settlement and compromise to each of these                    

                                                                                

8   districts or intermediate districts to resolve, in their                    

                                                                                

9   entirety, any claim or claims that these districts or                       

                                                                                

10  intermediate districts may have asserted for violations of                  

                                                                                

11  section 29 of article IX of the state constitution of 1963                  

                                                                                

12  through September 30, 1997, which claims are or were similar to             

                                                                                

13  the claims asserted by the plaintiffs in the consolidated cases             

                                                                                

14  known as Durant v State of Michigan.  This section, any other               

                                                                                

15  provision of this act, and section 353e of the management and               

                                                                                

16  budget act, 1984 PA 431, MCL 18.1353e, shall not be construed to            

                                                                                

17  constitute an admission of liability to the districts or                    

                                                                                

18  intermediate districts listed in section 11h or a waiver of any             

                                                                                

19  defense that is or would have been available to the state or its            

                                                                                

20  agencies, employees, or agents in any litigation or future                  

                                                                                

21  litigation with a district or intermediate district.                        

                                                                                

22      (5) The entire amount of each payment under subsection (1)                  

                                                                                

23  each fiscal year shall be paid on November 15 of the applicable             

                                                                                

24  fiscal year or on the next business day following that date.                

                                                                                

25      (6) Funds paid to a district or intermediate district under                 

                                                                                

26  this section shall be used only for textbooks, electronic                   

                                                                                

27  instructional material, software, technology, infrastructure or             


                                                                                

1   infrastructure improvements, school buses, school security,                 

                                                                                

2   training for technology, or to pay debt service on voter-approved           

                                                                                

3   bonds issued by the district or intermediate district before the            

                                                                                

4   effective date of this section.  For intermediate districts only,           

                                                                                

5   funds paid under this section may also be used for other                    

                                                                                

6   nonrecurring instructional expenditures including, but not                  

                                                                                

7   limited to, nonrecurring instructional expenditures for                     

                                                                                

8   vocational education, or for debt service for acquisition of                

                                                                                

9   technology for academic support services.  Funds received by an             

                                                                                

10  intermediate district under this section may be used for projects           

                                                                                

11  conducted for the benefit of its constituent districts at the               

                                                                                

12  discretion of the intermediate board.  To the extent payments               

                                                                                

13  under this section are used by a district or intermediate                   

                                                                                

14  district to pay debt service on debt payable from millage                   

                                                                                

15  revenues, and to the extent permitted by law, the district or               

                                                                                

16  intermediate district may make a corresponding reduction in the             

                                                                                

17  number of mills levied for that debt service.                               

                                                                                

18      (7) The appropriations under this section are from the money                

                                                                                

19  appropriated and transferred to the state school aid fund from              

                                                                                

20  the countercyclical budget and economic stabilization fund under            

                                                                                

21  section 353e(2) and (3) of the management and budget act, 1984              

                                                                                

22  PA 431, MCL 18.1353e.                                                       

                                                                                

23      (7)  (8)  The resolution to be adopted and submitted by a                   

                                                                                

24  district or intermediate district under this section and section            

                                                                                

25  11g shall read as follows:                                                  

                                                                                

26      "Whereas, the board of ____________________ (name of district               

                                                                                

27  or intermediate district) desires to settle and compromise, in              


                                                                                

1   their entirety, any claim or claims that the district (or                   

                                                                                

2   intermediate district) has or had for violations of section 29 of           

                                                                                

3   article IX of the state constitution of 1963, which claim or                

                                                                                

4   claims are or were similar to the claims asserted by the                    

                                                                                

5   plaintiffs in the consolidated cases known as Durant v State of             

                                                                                

6   Michigan, Michigan supreme court docket no. 104458-104492.                  

                                                                                

7       Whereas, the district (or intermediate district) agrees to                  

                                                                                

8   settle and compromise these claims for the consideration                    

                                                                                

9   described in sections 11f and 11g of the state school aid act of            

                                                                                

10  1979, 1979 PA 94, MCL 388.1611f and 388.1611g, and in the amount            

                                                                                

11  specified for the district (or intermediate district) in                    

                                                                                

12  section 11h of the state school aid act of 1979, 1979 PA 94,                

                                                                                

13  MCL 388.1611h.                                                              

                                                                                

14      Whereas, the board of _______________ (name of district or                  

                                                                                

15  intermediate district) is authorized to adopt this resolution.              

                                                                                

16      Now, therefore, be it resolved as follows:                                  

                                                                                

17                                                                               1.  The board of ____________________ (name of district or                          

                                                                                

18  intermediate district) waives any right or interest it may have             

                                                                                

19  in any claim or potential claim through September 30, 1997                  

                                                                                

20  relating to the amount of funding the district or intermediate              

                                                                                

21  district is, or may have been, entitled to receive under the                

                                                                                

22  state school aid act of 1979, 1979 PA 94, MCL 388.1601 to                   

                                                                                

23  388.1772, or any other source of state funding, by reason of the            

                                                                                

24  application of section 29 of article IX of the state constitution           

                                                                                

25  of 1963, which claims or potential claims are or were similar to            

                                                                                

26  the claims asserted by the plaintiffs in the consolidated cases             

                                                                                

27  known as Durant v State of Michigan, Michigan supreme court                 


                                                                                

1   docket no. 104458-104492.                                                   

                                                                                

2                                                                                2.  The board of ____________________ (name of district or                          

                                                                                

3   intermediate district) directs its secretary to submit a                    

                                                                                

4   certified copy of this resolution to the state treasurer no later           

                                                                                

5   than 5 p.m. eastern standard time on March 2, 1998, and agrees              

                                                                                

6   that it will not take any action to amend or rescind this                   

                                                                                

7   resolution.                                                                 

                                                                                

8                                                                                3.  The board of ____________________ (name of district or                          

                                                                                

9   intermediate district) expressly agrees and understands that, if            

                                                                                

10  it takes any action to amend or rescind this resolution, the                

                                                                                

11  state, its agencies, employees, and agents shall have available             

                                                                                

12  to them any privilege, immunity, and/or defense that would                  

                                                                                

13  otherwise have been available had the claims or potential claims            

                                                                                

14  been actually litigated in any forum.                                       

                                                                                

15                                                                               4.  This resolution is contingent on continued payments by                          

                                                                                

16  the state each fiscal year as determined under sections 11f and             

                                                                                

17  11g of the state school aid act of 1979, 1979 PA 94,                        

                                                                                

18  MCL 388.1611f and 388.1611g.  However, this resolution shall be             

                                                                                

19  an irrevocable waiver of any claim to amounts actually received             

                                                                                

20  by the school district or intermediate school district under                

                                                                                

21  sections 11f and 11g of the state school aid act of 1979.".                 

                                                                                

22      Sec. 11g.  (1) From the general fund  money appropriated                    

                                                                                

23  appropriation in section 11, there is allocated an amount not to            

                                                                                

24  exceed  $40,000,000.00  $141,000.00 each fiscal year for the                

                                                                                

25  fiscal year ending  September 30, 2002, for the fiscal year                 

                                                                                

26  ending  September 30, 2003, for the fiscal year ending                      

                                                                                

27  September 30, 2004, and for the fiscal year ending September 30,            


                                                                                

1   2005.  There is allocated an amount not to exceed $34,200,000.00            

                                                                                

2   for each succeeding fiscal year through the fiscal year ending              

                                                                                

3   September 30, 2013.  Payments under this section will cease after           

                                                                                

4   September 30, 2013.  These  appropriations  allocations are for             

                                                                                

5   paying the amounts described in subsection (3) to districts and             

                                                                                

6   intermediate districts, other than those receiving a lump sum               

                                                                                

7   payment under section 11f(2), that were not plaintiffs in the               

                                                                                

8   consolidated cases known as Durant v State of Michigan, Michigan            

                                                                                

9   supreme court docket no. 104458-104492 and that, on or before               

                                                                                

10  March 2, 1998, submitted to the state treasurer a waiver                    

                                                                                

11  resolution described in section 11f.  The amounts paid under this           

                                                                                

12  section represent offers of settlement and compromise of any                

                                                                                

13  claim or claims that were or could have been asserted by these              

                                                                                

14  districts and intermediate districts, as described in this                  

                                                                                

15  section.                                                                    

                                                                                

16      (2) This section does not create any obligation or liability                

                                                                                

17  of this state to any district or intermediate district that does            

                                                                                

18  not submit a waiver resolution described in section 11f.  This              

                                                                                

19  section, any other provision of this act, and section 353e of the           

                                                                                

20  management and budget act, 1984 PA 431, MCL 18.1353e, are not               

                                                                                

21  intended to admit liability or waive any defense that is or would           

                                                                                

22  be available to this state or its agencies, employees, or agents            

                                                                                

23  in any litigation or future litigation with a district or                   

                                                                                

24  intermediate district regarding these claims or potential                   

                                                                                

25  claims.                                                                     

                                                                                

26      (3) The amount paid each fiscal year to each district or                    

                                                                                

27  intermediate district under this section shall be the sum of the            


                                                                                

1   following:                                                                  

                                                                                

2       (a) 1/30 of the total amount listed in section 11h for the                  

                                                                                

3   district or intermediate district.                                          

                                                                                

4       (b) If the district or intermediate district borrows money                  

                                                                                

5   and issues bonds under section 11i, an additional amount in each            

                                                                                

6   fiscal year calculated by the department of treasury that, when             

                                                                                

7   added to the amount described in subdivision (a), will cause the            

                                                                                

8   net present value as of November 15, 1998 of the total of the 15            

                                                                                

9   annual payments made to the district or intermediate district               

                                                                                

10  under this section, discounted at a rate as determined by the               

                                                                                

11  state treasurer, to equal the amount of the bonds issued by that            

                                                                                

12  district or intermediate district under section 11i and that will           

                                                                                

13  result in the total payments made to all districts and                      

                                                                                

14  intermediate districts in each fiscal year under this section               

                                                                                

15  being no more than the amount appropriated under this section in            

                                                                                

16  each fiscal year.                                                           

                                                                                

17      (4) The entire amount of each payment under this section each               

                                                                                

18  fiscal year shall be paid on May 15 of the applicable fiscal year           

                                                                                

19  or on the next business day following that date.  If a district             

                                                                                

20  or intermediate district borrows money and issues bonds under               

                                                                                

21  section 11i, the district or intermediate district shall use                

                                                                                

22  funds received under this section to pay debt service on bonds              

                                                                                

23  issued under section 11i.  If a district or intermediate district           

                                                                                

24  does not borrow money and issue bonds under section 11i, the                

                                                                                

25  district or intermediate district shall use funds received under            

                                                                                

26  this section only for the following purposes, in the following              

                                                                                

27  order of priority:                                                          


                                                                                

1       (a) First, to pay debt service on voter-approved bonds issued               

                                                                                

2   by the district or intermediate district before the effective               

                                                                                

3   date of this section.                                                       

                                                                                

4       (b) Second, to pay debt service on other limited tax                        

                                                                                

5   obligations.                                                                

                                                                                

6       (c) Third, for deposit into a sinking fund established by the               

                                                                                

7   district or intermediate district under the revised school code.            

                                                                                

8       (5) To the extent payments under this section are used by a                 

                                                                                

9   district or intermediate district to pay debt service on debt               

                                                                                

10  payable from millage revenues, and to the extent permitted by               

                                                                                

11  law, the district or intermediate district may make a                       

                                                                                

12  corresponding reduction in the number of mills levied for debt              

                                                                                

13  service.                                                                    

                                                                                

14      (6) A district or intermediate district may pledge or assign                

                                                                                

15  payments under this section as security for bonds issued under              

                                                                                

16  section 11i, but shall not otherwise pledge or assign payments              

                                                                                

17  under this section.                                                         

                                                                                

18      Sec. 18.  (1) Except as provided in another section of this                 

                                                                                

19  act, each district or other entity shall apply the money received           

                                                                                

20  by the district or entity under this act to salaries and other              

                                                                                

21  compensation of teachers and other employees, tuition,                      

                                                                                

22  transportation, lighting, heating, ventilation, water service,              

                                                                                

23  the purchase of textbooks which are designated by the board to be           

                                                                                

24  used in the schools under the board's charge, other supplies, and           

                                                                                

25  any other school operating expenditures defined in section 7.               

                                                                                

26  However, not more than 20% of the total amount received by a                

                                                                                

27  district under article 2 or intermediate district under article 8           


                                                                                

1   may be transferred by the board to either the capital projects              

                                                                                

2   fund or to the debt retirement fund for debt service.  The money            

                                                                                

3   shall not be applied or taken for a purpose other than as                   

                                                                                

4   provided in this section.  The department shall determine the               

                                                                                

5   reasonableness of expenditures and may withhold from a recipient            

                                                                                

6   of funds under this act the apportionment otherwise due for the             

                                                                                

7   fiscal year following the discovery by the department of a                  

                                                                                

8   violation by the recipient.                                                 

                                                                                

9       (2) For the purpose of determining the reasonableness of                    

                                                                                

10  expenditures and whether a violation of this act has occurred,              

                                                                                

11  the department shall require that each district and intermediate            

                                                                                

12  district have an audit of the district's or intermediate                    

                                                                                

13  district's financial and pupil accounting records conducted at              

                                                                                

14  least annually at the expense of the district or intermediate               

                                                                                

15  district, as applicable, by a certified public accountant or by             

                                                                                

16  the intermediate district superintendent, as may be required by             

                                                                                

17  the department, or in the case of a district of the first class             

                                                                                

18  by a certified public accountant, the intermediate                          

                                                                                

19  superintendent, or the auditor general of the city.  An                     

                                                                                

20  intermediate district's annual financial audit shall be                     

                                                                                

21  accompanied by the intermediate district's pupil accounting                 

                                                                                

22  procedures report.  A district's or intermediate district's                 

                                                                                

23  annual financial audit shall include an analysis of the financial           

                                                                                

24  and pupil accounting data used as the basis for distribution of             

                                                                                

25  state school aid.  The pupil accounting records and reports,                

                                                                                

26  audits, and management letters are subject to requirements                  

                                                                                

27  established in the auditing and accounting manuals approved and             


                                                                                

1   published by the department.  Except as otherwise provided in               

                                                                                

2   this subsection, a district shall file the annual financial audit           

                                                                                

3   reports with the intermediate district not later than 120 days              

                                                                                

4   after the end of each school fiscal year and the intermediate               

                                                                                

5   district shall forward the annual financial audit reports for its           

                                                                                

6   constituent districts and for the intermediate district, and the            

                                                                                

7   pupil accounting procedures report for the pupil membership count           

                                                                                

8   day and supplemental count day, to the department not later than            

                                                                                

9   November 15 of each year.  The annual financial audit reports and           

                                                                                

10  pupil accounting procedures reports shall be available to the               

                                                                                

11  public in compliance with the freedom of information act, 1976              

                                                                                

12  PA 442, MCL 15.231 to 15.246.  Not later than December 1 of each            

                                                                                

13  year, the department shall notify the state budget director and             

                                                                                

14  the legislative appropriations subcommittees responsible for                

                                                                                

15  review of the school aid budget of districts and intermediate               

                                                                                

16  districts that have not filed an annual financial audit and pupil           

                                                                                

17  accounting procedures report required under this section for the            

                                                                                

18  school year ending in the immediately preceding fiscal year.                

                                                                                

19      (3)  Each  By November 15 of each year, each district and                   

                                                                                

20  intermediate district shall  file with the department by                    

                                                                                

21  November 15 of each year an annual comprehensive financial                  

                                                                                

22  report, known as "Form B", on a form and in the manner prescribed           

                                                                                

23  by the department  submit to the center, in a manner prescribed             

                                                                                

24  by the center, annual comprehensive financial data consistent               

                                                                                

25  with accounting manuals and charts of accounts approved and                 

                                                                                

26  published by the department.                                                

                                                                                

27      (4) By September 30 of each year, each district and                         


                                                                                

1   intermediate district shall file with the department the special            

                                                                                

2   education actual cost report, known as "SE-4096", on a form and             

                                                                                

3   in the manner prescribed by the department.                                 

                                                                                

4       (5) By October 7 of each year, each district and intermediate               

                                                                                

5   district shall file with the department the transportation                  

                                                                                

6   expenditure report, known as "SE-4094", on a form and in the                

                                                                                

7   manner prescribed by the department.                                        

                                                                                

8       (6)  (4)  Not later than July 1, 1999, the department shall                 

                                                                                

9   approve and publish pupil accounting and pupil auditing manuals.            

                                                                                

10  The department shall review those manuals at least annually and             

                                                                                

11  shall periodically update those manuals to reflect changes in               

                                                                                

12  this act.  The pupil accounting manuals in effect for the 1996-97           

                                                                                

13  school year, including subsequent revisions issued by the                   

                                                                                

14  superintendent, shall be the interim manuals in effect until new            

                                                                                

15  manuals are approved and published.  However, the clarification             

                                                                                

16  of class-by-class accounting provided in the department's April             

                                                                                

17  15, 1998 memorandum on pupil accounting procedures shall be                 

                                                                                

18  excluded from the interim manuals.                                          

                                                                                

19      (7)  (5)  If a district that is a public school academy                     

                                                                                

20  purchases property using money received under this act, the                 

                                                                                

21  public school academy shall retain ownership of the property                

                                                                                

22  unless the public school academy sells the property at fair                 

                                                                                

23  market value.                                                               

                                                                                

24      (8)  (6)  If a district or intermediate district does not                   

                                                                                

25  comply with subsection (2),  or  (3), (4), or (5), the department           

                                                                                

26  shall withhold all state school aid due to the district or                  

                                                                                

27  intermediate district under this act, beginning with the next               


                                                                                

1   payment due to the district or intermediate district, until the             

                                                                                

2   district or intermediate district complies with subsections (2),            

                                                                                

3   and  (3), (4), and (5).  If the district or intermediate                   

                                                                                

4   district does not comply with subsections (2),  and  (3), (4),              

                                                                                

5   and (5) by the end of the fiscal year, the district or                      

                                                                                

6   intermediate district forfeits the amount withheld.                         

                                                                                

7       Sec. 19.  (1) A district shall comply with  the  any                        

                                                                                

8   requirements of sections 1204a, 1277, 1278, and 1280 of the                 

                                                                                

9   revised school code, MCL 380.1204a, 380.1277, 380.1278, and                 

                                                                                

10  380.1280, commonly referred to as "public act 25 of 1990" that              

                                                                                

11  are not also required by the no child left behind act of 2001,              

                                                                                

12  Public Law 107-110, 115 Stat. 1425, as determined by the                    

                                                                                

13  department.                                                                 

                                                                                

14      (2) Each district and intermediate district shall provide to                

                                                                                

15  the department, in a form and manner prescribed by the                      

                                                                                

16  department, information necessary for the development of an                 

                                                                                

17  annual progress report on the required implementation of sections           

                                                                                

18  1204a, 1277, 1278, and 1280 of the revised school code,                     

                                                                                

19  MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly                   

                                                                                

20  referred to as "public act 25 of 1990".   Additionally, each                

                                                                                

21  district and intermediate district shall provide to the                     

                                                                                

22  department of information technology, in a form and manner                  

                                                                                

23  prescribed by the department of information technology, on the              

                                                                                

24  achievement of national education goals, and information                    

                                                                                

25  necessary for the development of other performance reports.                 

                                                                                

26      (3) A district or intermediate district shall comply with all               

                                                                                

27  applicable reporting requirements specified in the no child left            


                                                                                

1   behind act of 2001, Public Law 107-110, 115 Stat. 1425.  Data               

                                                                                

2   provided to the center, in a form and manner prescribed by the              

                                                                                

3   center, shall be aggregated and disaggregated as required by the            

                                                                                

4   no child left behind act of 2001, Public Law 107-110, 115                   

                                                                                

5   Stat. 1425.                                                                 

                                                                                

6       (4) Each district shall furnish to the center not later than                

                                                                                

7   7 weeks after the pupil membership count day, in a manner                   

                                                                                

8   prescribed by the center, the information necessary for the                 

                                                                                

9   preparation of the district and high school graduation report.              

                                                                                

10  The center shall calculate an annual graduation and pupil dropout           

                                                                                

11  rate for each high school, each district, and this state, in                

                                                                                

12  compliance with nationally recognized standards for these                   

                                                                                

13  calculations.  The center shall report all graduation and dropout           

                                                                                

14  rates to the senate and house education committees and                      

                                                                                

15  appropriations committees, the state budget director, and the               

                                                                                

16  department not later than June 1 of each year.                              

                                                                                

17      (5) A district shall furnish to the center, in a manner                     

                                                                                

18  prescribed by the center, information related to educational                

                                                                                

19  personnel as necessary for reporting required by state and                  

                                                                                

20  federal law.                                                                

                                                                                

21      (6)  (3)  If a district or intermediate district fails to                   

                                                                                

22  meet the requirements of subsection (2),  and sections 1204a,               

                                                                                

23  1277, and 1278 of the revised school code, MCL 380.1204a,                   

                                                                                

24  380.1277, and 380.1278,  (3), (4), or (5), the department shall             

                                                                                

25  withhold 5% of the total funds for which the district or                    

                                                                                

26  intermediate district qualifies under this act until the district           

                                                                                

27  or intermediate district complies with all of those  sections               


                                                                                

1   subsections.  If the district or intermediate district does not             

                                                                                

2   comply with all of those  sections  subsections by the end of the           

                                                                                

3   fiscal year, the department shall place the amount withheld in an           

                                                                                

4   escrow account until the district or intermediate district                  

                                                                                

5   complies with all of those  sections  subsections.                          

                                                                                

6       (7)  (4)  If a school in a district is not accredited under                 

                                                                                

7   section 1280 of the revised school code, MCL 380.1280, or is not            

                                                                                

8   making satisfactory progress toward meeting the standards for               

                                                                                

9   that accreditation, the department shall withhold 5% of the total           

                                                                                

10  funds for which the district qualifies under this act that are              

                                                                                

11  attributable to pupils attending that school.  The department               

                                                                                

12  shall place the amount withheld from a district under this                  

                                                                                

13  subsection in an escrow account and shall not release the funds             

                                                                                

14  to the district until the district submits to the department a              

                                                                                

15  plan for achieving accreditation for each of the district's                 

                                                                                

16  schools that are not accredited under section 1280 of the revised           

                                                                                

17  school code, MCL 380.1280, or are not making satisfactory                   

                                                                                

18  progress toward meeting the standards for that accreditation.               

                                                                                

19      (8) Before publishing a list of schools or districts                        

                                                                                

20  determined to have failed to make adequate yearly progress as               

                                                                                

21  required by the federal no child left behind act of 2001, Public            

                                                                                

22  Law 107-110, 115 Stat. 1425, the department shall allow a school            

                                                                                

23  or district to appeal that determination.  The department shall             

                                                                                

24  consider and act upon the appeal within 30 days after it is                 

                                                                                

25  submitted and shall not publish the list until after all appeals            

                                                                                

26  have been considered and decided.                                           

                                                                                

27      Sec. 20.  (1)  For 2001-2002, the basic foundation allowance                


                                                                                

1   is $6,300.00 per membership pupil.  For 2002-2003 and for                   

                                                                                

2   2003-2004, the basic foundation allowance is $6,700.00 per                  

                                                                                

3   membership pupil.                                                           

                                                                                

4       (2) The amount of each district's foundation allowance shall                

                                                                                

5   be calculated as provided in this section, using a basic                    

                                                                                

6   foundation allowance in the amount specified in subsection (1).             

                                                                                

7       (3) Except as otherwise provided in this section, the amount                

                                                                                

8   of a district's foundation allowance shall be calculated as                 

                                                                                

9   follows, using in all calculations the total amount of the                  

                                                                                

10  district's foundation allowance as calculated before any                    

                                                                                

11  proration:                                                                  

                                                                                

12      (a) Except as otherwise provided in this subsection, for a                  

                                                                                

13  district that in the immediately preceding state fiscal year had            

                                                                                

14  a foundation allowance in an amount at least equal to the amount            

                                                                                

15  of the basic foundation allowance for the immediately preceding             

                                                                                

16  state fiscal year, the district shall receive a foundation                  

                                                                                

17  allowance in an amount equal to the sum of the district's                   

                                                                                

18  foundation allowance for the immediately preceding state fiscal             

                                                                                

19  year plus the dollar amount of the adjustment from the                      

                                                                                

20  immediately preceding state fiscal year to the current state                

                                                                                

21  fiscal year in the basic foundation allowance.  However, for                

                                                                                

22  2002-2003, the foundation allowance for a district under this               

                                                                                

23  subdivision is an amount equal to the sum of the district's                 

                                                                                

24  foundation allowance for the immediately preceding state fiscal             

                                                                                

25  year plus $200.00.                                                          

                                                                                

26      (b) For a district that in the 1994-95 state fiscal year had                

                                                                                

27  a foundation allowance greater than $6,500.00, the district's               


                                                                                

1   foundation allowance is an amount equal to the sum of the                   

                                                                                

2   district's foundation allowance for the immediately preceding               

                                                                                

3   state fiscal year plus the lesser of the increase in the basic              

                                                                                

4   foundation allowance for the current state fiscal year, as                  

                                                                                

5   compared to the immediately preceding state fiscal year, or the             

                                                                                

6   product of the district's foundation allowance for the                      

                                                                                

7   immediately preceding state fiscal year times the percentage                

                                                                                

8   increase in the United States consumer price index in the                   

                                                                                

9   calendar year ending in the immediately preceding fiscal year as            

                                                                                

10  reported by the May revenue estimating conference conducted under           

                                                                                

11  section 367b of the management and budget act, 1984 PA 431,                 

                                                                                

12  MCL 18.1367b.  For 2002-2003, for a district that in the 1994-95            

                                                                                

13  state fiscal year had a foundation allowance greater than                   

                                                                                

14  $6,500.00, the district's foundation allowance is an amount equal           

                                                                                

15  to the sum of the district's foundation allowance for the                   

                                                                                

16  immediately preceding state fiscal year plus the lesser of                  

                                                                                

17  $200.00 or the product of the district's foundation allowance for           

                                                                                

18  the immediately preceding state fiscal year times the percentage            

                                                                                

19  increase in the United States consumer price index in the                   

                                                                                

20  calendar year ending in the immediately preceding fiscal year as            

                                                                                

21  reported by the May revenue estimating conference conducted under           

                                                                                

22  section 367b of the management and budget act, 1984 PA 431,                 

                                                                                

23  MCL 18.1367b.                                                               

                                                                                

24      (c) For a district that has a foundation allowance that is                  

                                                                                

25  not a whole dollar amount, the district's foundation allowance              

                                                                                

26  shall be rounded up to the nearest whole dollar.                            

                                                                                

27      (d)  Beginning in 2002-2003, for  For a district that                       


                                                                                

1   receives  received a payment under former section 22c for                  

                                                                                

2   2001-2002, the district's 2001-2002 foundation allowance shall be           

                                                                                

3   considered to have been an amount equal to the sum of the                   

                                                                                

4   district's actual 2001-2002 foundation allowance as otherwise               

                                                                                

5   calculated under this section plus the per pupil amount of the              

                                                                                

6   district's equity payment for 2001-2002 under former section                

                                                                                

7   22c.                                                                        

                                                                                

8       (4) Except as otherwise provided in this subsection, the                    

                                                                                

9   state portion of a district's foundation allowance is an amount             

                                                                                

10  equal to the district's foundation allowance or $6,500.00,                  

                                                                                

11  whichever is less, minus the difference between the product of              

                                                                                

12  the taxable value per membership pupil of all property in the               

                                                                                

13  district that is not a homestead or qualified agricultural                  

                                                                                

14  property times the lesser of 18 mills or the number of mills of             

                                                                                

15  school operating taxes levied by the district in 1993-94 and the            

                                                                                

16  quotient of the ad valorem property tax revenue of the district             

                                                                                

17  captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax               

                                                                                

18  increment finance authority act, 1980 PA 450, MCL 125.1801 to               

                                                                                

19  125.1830, the local development financing act, 1986 PA 281,                 

                                                                                

20  MCL 125.2151 to 125.2174, or the brownfield redevelopment                   

                                                                                

21  financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by            

                                                                                

22  the district's membership excluding special education pupils.               

                                                                                

23  For a district described in subsection (3)(b), the state portion            

                                                                                

24  of the district's foundation allowance is an amount equal to                

                                                                                

25  $6,962.00 plus the difference between the district's foundation             

                                                                                

26  allowance for the current state fiscal year and the district's              

                                                                                

27  foundation allowance for 1998-99, minus the difference between              


                                                                                

1   the product of the taxable value per membership pupil of all                

                                                                                

2   property in the district that is not a homestead or qualified               

                                                                                

3   agricultural property times the lesser of 18 mills or the number            

                                                                                

4   of mills of school operating taxes levied by the district in                

                                                                                

5   1993-94 and the quotient of the ad valorem property tax revenue             

                                                                                

6   of the district captured under 1975 PA 197, MCL 125.1651 to                 

                                                                                

7   125.1681, the tax increment finance authority act, 1980 PA 450,             

                                                                                

8   MCL 125.1801 to 125.1830, the local development financing act,              

                                                                                

9   1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield                    

                                                                                

10  redevelopment financing act, 1996 PA 381, MCL 125.2651 to                   

                                                                                

11  125.2672, divided by the district's membership excluding special            

                                                                                

12  education pupils.  For a district that has a millage reduction              

                                                                                

13  required under section 31 of article IX of the state constitution           

                                                                                

14  of 1963, the state portion of the district's foundation allowance           

                                                                                

15  shall be calculated as if that reduction did not occur.  The                

                                                                                

16  $6,500.00 amount prescribed in this subsection shall be adjusted            

                                                                                

17  each year by an amount equal to the dollar amount of the                    

                                                                                

18  difference between the basic foundation allowance for the current           

                                                                                

19  state fiscal year and $5,000.00,  .  However, beginning in                  

                                                                                

20  2002-2003, the $6,500.00 amount prescribed in this subsection               

                                                                                

21  shall be adjusted each year by an amount equal to the dollar                

                                                                                

22  amount of the difference between the basic foundation allowance             

                                                                                

23  for the current state fiscal year and $5,000.00,  minus $200.00.            

                                                                                

24      (5) The allocation calculated under this section for a pupil                

                                                                                

25  shall be based on the foundation allowance of the pupil's                   

                                                                                

26  district of residence.  However, for a pupil enrolled pursuant to           

                                                                                

27  section 105 or 105c in a district other than the pupil's district           


                                                                                

1   of residence, the allocation calculated under this section shall            

                                                                                

2   be based on the lesser of the foundation allowance of the pupil's           

                                                                                

3   district of residence or the foundation allowance of the                    

                                                                                

4   educating district.  For a pupil in membership in a K-5, K-6, or            

                                                                                

5   K-8 district who is enrolled in another district in a grade not             

                                                                                

6   offered by the pupil's district of residence, the allocation                

                                                                                

7   calculated under this section shall be based on the foundation              

                                                                                

8   allowance of the educating district if the educating district's             

                                                                                

9   foundation allowance is greater than the foundation allowance of            

                                                                                

10  the pupil's district of residence.  The calculation under this              

                                                                                

11  subsection shall take into account a district's per pupil                   

                                                                                

12  allocation under section 20j(2).                                            

                                                                                

13      (6) Subject to subsection (7) and section 22b(3) and except                 

                                                                                

14  as otherwise provided in this subsection, for pupils in                     

                                                                                

15  membership, other than special education pupils, in a public                

                                                                                

16  school academy or a university school, the allocation calculated            

                                                                                

17  under this section is an amount per membership pupil other than             

                                                                                

18  special education pupils in the public school academy or                    

                                                                                

19  university school equal to the sum of the local school operating            

                                                                                

20  revenue per membership pupil other than special education pupils            

                                                                                

21  for the district in which the public school academy or university           

                                                                                

22  school is located and the state portion of that district's                  

                                                                                

23  foundation allowance, or the sum of the basic foundation                    

                                                                                

24  allowance under subsection (1) plus  $500.00  $300.00, whichever            

                                                                                

25  is less.   However, beginning in 2002-2003, this $500.00 amount             

                                                                                

26  shall instead be $300.00.  Notwithstanding section 101(2), for a            

                                                                                

27  public school academy that begins operations in  2001-2002,                 


                                                                                

1   2002-2003  ,  or 2003-2004, as applicable, after the pupil                  

                                                                                

2   membership count day, the amount per membership pupil calculated            

                                                                                

3   under this subsection shall be adjusted by multiplying that                 

                                                                                

4   amount per membership pupil by the number of hours of pupil                 

                                                                                

5   instruction provided by the public school academy after it begins           

                                                                                

6   operations, as determined by the department, divided by the                 

                                                                                

7   minimum number of hours of pupil instruction required under                 

                                                                                

8   section 101(3).  The result of this calculation shall not exceed            

                                                                                

9   the amount per membership pupil otherwise calculated under this             

                                                                                

10  subsection.                                                                 

                                                                                

11      (7) If more than 25% of the pupils residing within a district               

                                                                                

12  are in membership in 1 or more public school academies located in           

                                                                                

13  the district, then the amount per membership pupil calculated               

                                                                                

14  under this section for a public school academy located in the               

                                                                                

15  district shall be reduced by an amount equal to the difference              

                                                                                

16  between the product of the taxable value per membership pupil of            

                                                                                

17  all property in the district that is not a homestead or qualified           

                                                                                

18  agricultural property times the lesser of 18 mills or the number            

                                                                                

19  of mills of school operating taxes levied by the district in                

                                                                                

20  1993-94 and the quotient of the ad valorem property tax revenue             

                                                                                

21  of the district captured under 1975 PA 197, MCL 125.1651 to                 

                                                                                

22  125.1681, the tax increment finance authority act, 1980 PA 450,             

                                                                                

23  MCL 125.1801 to 125.1830, the local development financing act,              

                                                                                

24  1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield                    

                                                                                

25  redevelopment financing act, 1996 PA 381, MCL 125.2651 to                   

                                                                                

26  125.2672, divided by the district's membership excluding special            

                                                                                

27  education pupils, in the school fiscal year ending in the current           


                                                                                

1   state fiscal year, calculated as if the resident pupils in                  

                                                                                

2   membership in 1 or more public school academies located in the              

                                                                                

3   district were in membership in the district.  In order to receive           

                                                                                

4   state school aid under this act, a district described in this               

                                                                                

5   subsection shall pay to the authorizing body that is the fiscal             

                                                                                

6   agent for a public school academy located in the district for               

                                                                                

7   forwarding to the public school academy an amount equal to that             

                                                                                

8   local school operating revenue per membership pupil for each                

                                                                                

9   resident pupil in membership other than special education pupils            

                                                                                

10  in the public school academy, as determined by the department.              

                                                                                

11      (8) If a district does not receive an amount calculated under               

                                                                                

12  subsection (9); if the number of mills the district may levy on a           

                                                                                

13  homestead and qualified agricultural property under                         

                                                                                

14  section 1211(1) of the revised school code, MCL 380.1211, is 0.5            

                                                                                

15  mills or less; and if the district elects not to levy those                 

                                                                                

16  mills, the district instead shall receive a separate supplemental           

                                                                                

17  amount calculated under this subsection in an amount equal to the           

                                                                                

18  amount the district would have received had it levied those                 

                                                                                

19  mills, as determined by the department of treasury.  A district             

                                                                                

20  shall not receive a separate supplemental amount calculated under           

                                                                                

21  this subsection for a fiscal year unless in the calendar year               

                                                                                

22  ending in the fiscal year the district levies 18 mills or the               

                                                                                

23  number of mills of school operating taxes levied by the district            

                                                                                

24  in 1993, whichever is less, on property that is not a homestead             

                                                                                

25  or qualified agricultural property.                                         

                                                                                

26      (9) For a district that had combined state and local revenue                

                                                                                

27  per membership pupil in the 1993-94 state fiscal year of more               


                                                                                

1   than $6,500.00 and that had fewer than 350 pupils in membership,            

                                                                                

2   if the district elects not to reduce the number of mills from               

                                                                                

3   which a homestead and qualified agricultural property are exempt            

                                                                                

4   and not to levy school operating taxes on a homestead and                   

                                                                                

5   qualified agricultural property as provided in section 1211(1) of           

                                                                                

6   the revised school code, MCL 380.1211, and not to levy school               

                                                                                

7   operating taxes on all property as provided in section 1211(2) of           

                                                                                

8   the revised school code, MCL 380.1211, there is calculated under            

                                                                                

9   this subsection for 1994-95 and each succeeding fiscal year a               

                                                                                

10  separate supplemental amount in an amount equal to the amount the           

                                                                                

11  district would have received per membership pupil had it levied             

                                                                                

12  school operating taxes on a homestead and qualified agricultural            

                                                                                

13  property at the rate authorized for the district under                      

                                                                                

14  section 1211(1) of the revised school code, MCL 380.1211, and               

                                                                                

15  levied school operating taxes on all property at the rate                   

                                                                                

16  authorized for the district under section 1211(2) of the revised            

                                                                                

17  school code, MCL 380.1211, as determined by the department of               

                                                                                

18  treasury.  If in the calendar year ending in the fiscal year a              

                                                                                

19  district does not levy 18 mills or the number of mills of school            

                                                                                

20  operating taxes levied by the district in 1993, whichever is                

                                                                                

21  less, on property that is not a homestead or qualified                      

                                                                                

22  agricultural property, the amount calculated under this                     

                                                                                

23  subsection will be reduced by the same percentage as the millage            

                                                                                

24  actually levied compares to the 18 mills or the number of mills             

                                                                                

25  levied in 1993, whichever is less.                                          

                                                                                

26      (10) For a district that is formed or reconfigured after                    

                                                                                

27  June 1, 2002 by consolidation of 2 or more districts or by                  


                                                                                

1   annexation, the resulting district's foundation allowance under             

                                                                                

2   this section beginning after the effective date of the                      

                                                                                

3   consolidation or annexation shall be the  lesser of an amount               

                                                                                

4   equal to the sum of the highest foundation allowance, as                    

                                                                                

5   calculated under this section, among the original or affected               

                                                                                

6   districts plus $50.00 or an amount equal to $6,500.00 adjusted by           

                                                                                

7   the dollar amount of the difference between the basic foundation            

                                                                                

8   allowance under this section for the current state fiscal year              

                                                                                

9   and $5,000.00.  However, beginning in 2002-2003, the $6,500.00              

                                                                                

10  amount prescribed in this subsection shall be adjusted each year            

                                                                                

11  by an amount equal to the dollar amount of the difference between           

                                                                                

12  the basic foundation allowance for the current state fiscal year            

                                                                                

13  and $5,000.00, minus $200.00.  average of the foundation                    

                                                                                

14  allowances of each of the original or affected districts,                   

                                                                                

15  calculated as provided in this section, weighted as to the                  

                                                                                

16  percentage of pupils in total membership in the resulting                   

                                                                                

17  district who reside in the geographic area of each of the                   

                                                                                

18  original or affected districts.                                             

                                                                                

19      (11) Each fraction used in making calculations under this                   

                                                                                

20  section shall be rounded to the fourth decimal place and the                

                                                                                

21  dollar amount of an increase in the basic foundation allowance              

                                                                                

22  shall be rounded to the nearest whole dollar.                               

                                                                                

23      (12) State payments related to payment of the foundation                    

                                                                                

24  allowance for a special education pupil are not calculated under            

                                                                                

25  this section but are instead calculated under section 51a.                  

                                                                                

26      (13) To assist the legislature in determining the basic                     

                                                                                

27  foundation allowance for the subsequent state fiscal year, each             


                                                                                

1   revenue estimating conference conducted under section 367b of the           

                                                                                

2   management and budget act, 1984 PA 431, MCL 18.1367b, shall                 

                                                                                

3   calculate a pupil membership factor, a revenue adjustment factor,           

                                                                                

4   and an index as follows:                                                    

                                                                                

5       (a) The pupil membership factor shall be computed by dividing               

                                                                                

6   the estimated membership in the school year ending in the current           

                                                                                

7   state fiscal year, excluding intermediate district membership, by           

                                                                                

8   the estimated membership for the school year ending in the                  

                                                                                

9   subsequent state fiscal year, excluding intermediate district               

                                                                                

10  membership.  If a consensus membership factor is not determined             

                                                                                

11  at the revenue estimating conference, the principals of the                 

                                                                                

12  revenue estimating conference shall report their estimates to the           

                                                                                

13  house and senate subcommittees responsible for school aid                   

                                                                                

14  appropriations not later than 7 days after the conclusion of the            

                                                                                

15  revenue conference.                                                         

                                                                                

16      (b) The revenue adjustment factor shall be computed by                      

                                                                                

17  dividing the sum of the estimated total state school aid fund               

                                                                                

18  revenue for the subsequent state fiscal year plus the estimated             

                                                                                

19  total state school aid fund revenue for the current state fiscal            

                                                                                

20  year, adjusted for any change in the rate or base of a tax the              

                                                                                

21  proceeds of which are deposited in that fund and excluding money            

                                                                                

22  transferred into that fund from the countercyclical budget and              

                                                                                

23  economic stabilization fund under section 353e of the management            

                                                                                

24  and budget act, 1984 PA 431, MCL 18.1353e, by the sum of the                

                                                                                

25  estimated total school aid fund revenue for the current state               

                                                                                

26  fiscal year plus the estimated total state school aid fund                  

                                                                                

27  revenue for the immediately preceding state fiscal year, adjusted           


                                                                                

1   for any change in the rate or base of a tax the proceeds of which           

                                                                                

2   are deposited in that fund.  If a consensus revenue factor is not           

                                                                                

3   determined at the revenue estimating conference, the principals             

                                                                                

4   of the revenue estimating conference shall report their estimates           

                                                                                

5   to the house and senate subcommittees responsible for school aid            

                                                                                

6   appropriations not later than 7 days after the conclusion of the            

                                                                                

7   revenue conference.                                                         

                                                                                

8       (c) The index shall be calculated by multiplying the pupil                  

                                                                                

9   membership factor by the revenue adjustment factor.  However, for           

                                                                                

10  2003-2004 only, the index shall be 1.00. If a consensus index is            

                                                                                

11  not determined at the revenue estimating conference, the                    

                                                                                

12  principals of the revenue estimating conference shall report                

                                                                                

13  their estimates to the house and senate subcommittees responsible           

                                                                                

14  for school aid appropriations not later than 7 days after the               

                                                                                

15  conclusion of the revenue conference.                                       

                                                                                

16      (14) If the principals at the revenue estimating conference                 

                                                                                

17  reach a consensus on the index described in subsection (13)(c),             

                                                                                

18  the basic foundation allowance for the subsequent state fiscal              

                                                                                

19  year shall be at least the amount of that consensus index                   

                                                                                

20  multiplied by the basic foundation allowance specified in                   

                                                                                

21  subsection (1).                                                             

                                                                                

22      (15) If at the January revenue estimating conference it is                  

                                                                                

23  estimated that pupil membership, excluding intermediate district            

                                                                                

24  membership, for the subsequent state fiscal year will be greater            

                                                                                

25  than 101% of the pupil membership, excluding intermediate                   

                                                                                

26  district membership, for the current state fiscal year, then it             

                                                                                

27  is the intent of the legislature that the executive budget                  


                                                                                

1   proposal for the school aid budget for the subsequent state                 

                                                                                

2   fiscal year include a general fund/general purpose allocation               

                                                                                

3   sufficient to support the membership in excess of 101% of the               

                                                                                

4   current year pupil membership.                                              

                                                                                

5       (16) For a district that had combined state and local revenue               

                                                                                

6   per membership pupil in the 1993-94 state fiscal year of more               

                                                                                

7   than $6,500.00, that had fewer than 7 pupils in membership in the           

                                                                                

8   1993-94 state fiscal year, that has at least 1 child educated in            

                                                                                

9   the district in the current state fiscal year, and that levies              

                                                                                

10  the number of mills of school operating taxes authorized for the            

                                                                                

11  district under section 1211 of the revised school code,                     

                                                                                

12  MCL 380.1211, a minimum amount of combined state and local                  

                                                                                

13  revenue shall be calculated for the district as provided under              

                                                                                

14  this subsection.  The minimum amount of combined state and local            

                                                                                

15  revenue for 1999-2000 shall be $67,000.00 plus the district's               

                                                                                

16  additional expenses to educate pupils in grades 9 to 12 educated            

                                                                                

17  in other districts as determined and allowed by the department.             

                                                                                

18  The minimum amount of combined state and local revenue under this           

                                                                                

19  subsection, before adding the additional expenses, shall increase           

                                                                                

20  each fiscal year by the same percentage increase as the                     

                                                                                

21  percentage increase in the basic foundation allowance from the              

                                                                                

22  immediately preceding fiscal year to the current fiscal year.               

                                                                                

23  The state portion of the minimum amount of combined state and               

                                                                                

24  local revenue under this subsection shall be calculated by                  

                                                                                

25  subtracting from the minimum amount of combined state and local             

                                                                                

26  revenue under this subsection the sum of the district's local               

                                                                                

27  school operating revenue and an amount equal to the product of              


                                                                                

1   the sum of the state portion of the district's foundation                   

                                                                                

2   allowance plus the amount calculated under section 20j times the            

                                                                                

3   district's membership.  As used in this subsection, "additional             

                                                                                

4   expenses" means the district's expenses for tuition or fees, not            

                                                                                

5   to exceed $6,500.00 as adjusted each year by an amount equal to             

                                                                                

6   the dollar amount of the difference between the basic foundation            

                                                                                

7   allowance for the current state fiscal year and $5,000.00, minus            

                                                                                

8   $200.00, plus a room and board stipend not to exceed $10.00 per             

                                                                                

9   school day for each pupil in grades 9 to 12 educated in another             

                                                                                

10  district, as approved by the department.   However, beginning in            

                                                                                

11  2002-2003, the $6,500.00 amount prescribed in this subsection               

                                                                                

12  shall be adjusted each year by an amount equal to the dollar                

                                                                                

13  amount of the difference between the basic foundation allowance             

                                                                                

14  for the current state fiscal year and $5,000.00, minus $200.00.             

                                                                                

15      (17) For a district in which 7.75 mills levied in 1992 for                  

                                                                                

16  school operating purposes in the 1992-93 school year were not               

                                                                                

17  renewed in 1993 for school operating purposes in the 1993-94                

                                                                                

18  school year, the district's combined state and local revenue per            

                                                                                

19  membership pupil shall be recalculated as if that millage                   

                                                                                

20  reduction did not occur and the district's foundation allowance             

                                                                                

21  shall be calculated as if its 1994-95 foundation allowance had              

                                                                                

22  been calculated using that recalculated 1993-94 combined state              

                                                                                

23  and local revenue per membership pupil as a base.  A district is            

                                                                                

24  not entitled to any retroactive payments for fiscal years before            

                                                                                

25  2000-2001 due to this subsection.                                           

                                                                                

26      (18) For a district in which an industrial facilities                       

                                                                                

27  exemption certificate that abated taxes on property with a state            


                                                                                

1   equalized valuation greater than the total state equalized                  

                                                                                

2   valuation of the district at the time the certificate was issued            

                                                                                

3   or $700,000,000.00, whichever is greater, was issued under 1974             

                                                                                

4   PA 198, MCL 207.551 to 207.572, before the calculation of the               

                                                                                

5   district's 1994-95 foundation allowance, the district's                     

                                                                                

6   foundation allowance for 2002-2003 is an amount equal to the sum            

                                                                                

7   of the district's foundation allowance for 2002-2003, as                    

                                                                                

8   otherwise calculated under this section, plus $250.00.                      

                                                                                

9       (19) For a district that received a grant under former                      

                                                                                

10  section 32e for 2001-2002, the district's foundation allowance              

                                                                                

11  for 2002-2003 shall be adjusted to be an amount equal to the sum            

                                                                                

12  of the district's foundation allowance, as otherwise calculated             

                                                                                

13  under this section, plus the quotient of the amount of the grant            

                                                                                

14  award to the district for 2001-2002 under former section 32e                

                                                                                

15  divided by the district's membership for 2001-2002, and the                 

                                                                                

16  district's foundation allowance for 2003-2004 shall be adjusted             

                                                                                

17  to be an amount equal to the sum of the district's foundation               

                                                                                

18  allowance, as otherwise calculated under this section, plus the             

                                                                                

19  quotient of 89.84% of the amount of the grant award to the                  

                                                                                

20  district for 2001-2002 under former section 32e divided by the              

                                                                                

21  district's membership for 2001-2002 A  Except as otherwise               

                                                                                

22  provided in this subsection, a district qualifying for a                    

                                                                                

23  foundation allowance adjustment under this  section  subsection             

                                                                                

24  shall use the funds resulting from this adjustment for at least 1           

                                                                                

25  of grades K to 3 for purposes allowable under former section 32e            

                                                                                

26  as in effect for 2001-2002.  For an individual school or schools            

                                                                                

27  operated by a district qualifying for a foundation allowance                


    House Bill No. 4401 as amended June 18, 2003                                

1   under this subsection that have been determined by the department           

                                                                                

2   to meet the adequate yearly progress standards of the federal no            

                                                                                

3   child left behind act of 2001, Public Law 107-110, 115                      

                                                                                

4   Stat. 1425, in both mathematics and English language arts at all            

                                                                                

5   applicable grade levels for all applicable subgroups, the                   

                                                                                

6   district may submit to the department an application for                    

                                                                                

7   flexibility in using the funds resulting from this adjustment               

                                                                                

8   that are attributable to the pupils in the school or schools.               

                                                                                

9   The application shall identify the affected school or schools and           

                                                                                

10  the affected funds and shall contain a plan for using the funds             

                                                                                

11  for specific purposes identified by the district that are                   

                                                                                

12  designed to <<reduce class size,>> but that may be                          

                                                                                

13  different from the purposes otherwise allowable under this                  

                                                                                

14  subsection.  The department shall approve the application if the            

                                                                                

15  department determines that the purposes identified in the plan              

                                                                                

16  are reasonably designed to <<reduce class size.>>  If                       

                                                                                

17  the department does not act to approve or disapprove an                     

                                                                                

18  application within 30 days after it is submitted to the                     

                                                                                

19  department, the application is considered to be approved.  If an            

                                                                                

20  application for flexibility in using the funds is approved, the             

                                                                                

21  district may use the funds identified in the application for any            

                                                                                

22  purpose identified in the plan.                                             

                                                                                

23      (20) For a district that is a qualifying school district with               

                                                                                

24  a school reform board in place under part 5a of the revised                 

                                                                                

25  school code, MCL 380.371 to 380.376, the district's foundation              

                                                                                

26  allowance for 2002-2003 shall be adjusted to be an amount equal             

                                                                                

27  to the sum of the district's foundation allowance, as otherwise             


    House Bill No. 4401 as amended June 18, 2003                                

1   calculated under this section, plus the quotient of                         

                                                                                

2   $15,000,000.00 divided by the district's membership for                     

                                                                                

3   2002-2003.  If a district ceases to meet the requirements of this           

                                                                                

4   subsection, the department shall adjust the district's foundation           

                                                                                

5   allowance in effect at that time based on a 2002-2003 foundation            

                                                                                

6   allowance for the district that does not include the 2002-2003              

                                                                                

7   adjustment under this subsection.  This subsection only applies             

                                                                                

8   for 2002-2003.  Beginning in 2003-2004, the foundation allowance            

                                                                                

9   of a district that received an adjustment under this subsection             

                                                                                

10  for 2002-2003 shall be calculated as if that 2002-2003 adjustment           

                                                                                

11  did not occur.                                                              

                                                                                

12      (21) For a district in which the school electors voted in                   

                                                                                

13  1993 on a proposal to override a millage reduction required under           

                                                                                

14  section 31 of article IX of the state constitution of 1963 of 4.2           

                                                                                

15  mills for operating purposes but did not approve the proposal,              

                                                                                

16  the district's combined state and local revenue per membership              

                                                                                

17  pupil shall be recalculated as if that millage reduction did not            

                                                                                

18  occur and, beginning in 2003-2004, the district's foundation                

                                                                                

19  allowance shall be calculated as if its 1994-95 foundation                  

                                                                                

20  allowance had been calculated using the recalculated 1993-94                

                                                                                

21  combined state and local revenue per membership pupil as a base.            

                                                                                

22  A district is not entitled to any retroactive payments for fiscal           

                                                                                

23  years before 2003-2004 due to this subsection.  However, a                  

                                                                                

24  district receiving an adjustment under this subsection shall not            

                                                                                

25  receive more than <<$100.00>> for a fiscal year as a result of              

                                                                                

26  this adjustment.                                                            

                                                                                

27      (22)  (21)  Payments to districts, university schools, or                   


                                                                                

1   public school academies shall not be made under this section.               

                                                                                

2   Rather, the calculations under this section shall be used to                

                                                                                

3   determine the amount of state payments under section 22b.                   

                                                                                

4       (23)  (22)  If an amendment to section 2 of article VIII of                 

                                                                                

5   the state constitution of 1963 allowing state aid to some or all            

                                                                                

6   nonpublic schools is approved by the voters of this state, each             

                                                                                

7   foundation allowance or per pupil payment calculation under this            

                                                                                

8   section may be reduced.                                                     

                                                                                

9       (24)  (23)  As used in this section:                                        

                                                                                

10      (a) "Combined state and local revenue" means the aggregate of               

                                                                                

11  the district's state school aid received by or paid on behalf of            

                                                                                

12  the district under this section and the district's local school             

                                                                                

13  operating revenue.                                                          

                                                                                

14      (b) "Combined state and local revenue per membership pupil"                 

                                                                                

15  means the district's combined state and local revenue divided by            

                                                                                

16  the district's membership excluding special education pupils.               

                                                                                

17      (c) "Current state fiscal year" means the state fiscal year                 

                                                                                

18  for which a particular calculation is made.                                 

                                                                                

19      (d) "Homestead" means that term as defined in section 1211 of               

                                                                                

20  the revised school code, MCL 380.1211.                                      

                                                                                

21      (e) "Immediately preceding state fiscal year" means the state               

                                                                                

22  fiscal year immediately preceding the current state fiscal year.            

                                                                                

23      (f) "Local school operating revenue" means school operating                 

                                                                                

24  taxes levied under section 1211 of the revised school code,                 

                                                                                

25  MCL 380.1211.                                                               

                                                                                

26      (g) "Local school operating revenue per membership pupil"                   

                                                                                

27  means a district's local school operating revenue divided by the            


                                                                                

1   district's membership excluding special education pupils.                   

                                                                                

2       (h) "Membership" means the definition of that term under                    

                                                                                

3   section 6 as in effect for the particular fiscal year for which a           

                                                                                

4   particular calculation is made.                                             

                                                                                

5       (i) "Qualified agricultural property" means that term as                    

                                                                                

6   defined in section 1211 of the revised school code,                         

                                                                                

7   MCL 380.1211.                                                               

                                                                                

8       (j) "School operating purposes" means the purposes included                 

                                                                                

9   in the operation costs of the district as prescribed in                     

                                                                                

10  sections 7 and 18.                                                          

                                                                                

11      (k) "School operating taxes" means local ad valorem property                

                                                                                

12  taxes levied under section 1211 of the revised school code,                 

                                                                                

13  MCL 380.1211, and retained for school operating purposes.                   

                                                                                

14                                                                               (l) "Taxable value per membership pupil" means taxable value,                       

                                                                                

15  as certified by the department of treasury, for the calendar year           

                                                                                

16  ending in the current state fiscal year divided by the district's           

                                                                                

17  membership excluding special education pupils for the school year           

                                                                                

18  ending in the current state fiscal year.                                    

                                                                                

19      Sec. 20k.  If the maximum amount appropriated under section                 

                                                                                

20  11 from the state school aid fund for a fiscal year exceeds the             

                                                                                

21  amount available for expenditure from the state school aid fund             

                                                                                

22  for that fiscal year so that a district's state school aid is               

                                                                                

23  reduced pursuant to section 11(3), the payments calculated under            

                                                                                

24  section 20j and made under section 22b shall be considered to be            

                                                                                

25  foundation allowance payments for the purpose of determining the            

                                                                                

26  maximum number of mills a district may levy under section 1211(3)           

                                                                                

27  of the revised school code, MCL 380.1211.  However, the amount to           


                                                                                

1   be considered a foundation allowance payment for this purpose               

                                                                                

2   shall not exceed the amount reduced from the district's state aid           

                                                                                

3   payment as a result of the implementation of section 11(3).                 

                                                                                

4       Sec. 22a.  (1) From the appropriation in section 11, there                  

                                                                                

5   is allocated an amount not to exceed  $7,022,000,000.00 for                 

                                                                                

6   2001-2002 and an amount not to exceed $6,953,000,000.00 each                

                                                                                

7   fiscal year for 2002-2003 and  $6,842,300,000.00 for 2003-2004              

                                                                                

8   for payments to districts, qualifying university schools, and               

                                                                                

9   qualifying public school academies to guarantee each district,              

                                                                                

10  qualifying university school, and qualifying public school                  

                                                                                

11  academy an amount equal to its 1994-95 total state and local per            

                                                                                

12  pupil revenue for school operating purposes under section 11 of             

                                                                                

13  article IX of the state constitution of 1963.  Pursuant to                  

                                                                                

14  section 11 of article IX of the state constitution of 1963, this            

                                                                                

15  guarantee does not apply to a district in a year in which the               

                                                                                

16  district levies a millage rate for school district operating                

                                                                                

17  purposes less than it levied in 1994.  However, subsection (2)              

                                                                                

18  applies to calculating the payments under this section.  Funds              

                                                                                

19  allocated under this section that are not expended in the state             

                                                                                

20  fiscal year for which they were allocated, as determined by the             

                                                                                

21  department, may be used to supplement the allocations under                 

                                                                                

22  sections 22b and 51c in order to fully fund those calculated                

                                                                                

23  allocations for the same fiscal year.                                       

                                                                                

24      (2) To ensure that a district receives an amount equal to the               

                                                                                

25  district's 1994-95 total state and local per pupil revenue for              

                                                                                

26  school operating purposes, there is allocated to each district a            

                                                                                

27  state portion of the district's 1994-95 foundation allowance in             


                                                                                

1   an amount calculated as follows:                                            

                                                                                

2       (a) Except as otherwise provided in this subsection, the                    

                                                                                

3   state portion of a district's 1994-95 foundation allowance is an            

                                                                                

4   amount equal to the district's 1994-95 foundation allowance or              

                                                                                

5   $6,500.00, whichever is less, minus the difference between the              

                                                                                

6   product of the taxable value per membership pupil of all property           

                                                                                

7   in the district that is not a homestead or qualified agricultural           

                                                                                

8   property times the lesser of 18 mills or the number of mills of             

                                                                                

9   school operating taxes levied by the district in 1993-94 and the            

                                                                                

10  quotient of the ad valorem property tax revenue of the district             

                                                                                

11  captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax               

                                                                                

12  increment finance authority act, 1980 PA 450, MCL 125.1801 to               

                                                                                

13  125.1830, the local development financing act, 1986 PA 281,                 

                                                                                

14  MCL 125.2151 to 125.2174, or the brownfield redevelopment                   

                                                                                

15  financing act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by            

                                                                                

16  the district's membership.  For a district that has a millage               

                                                                                

17  reduction required under section 31 of article IX of the state              

                                                                                

18  constitution of 1963, the state portion of the district's                   

                                                                                

19  foundation allowance shall be calculated as if that reduction did           

                                                                                

20  not occur.                                                                  

                                                                                

21      (b) For a district that had a 1994-95 foundation allowance                  

                                                                                

22  greater than $6,500.00, the state payment under this subsection             

                                                                                

23  shall be the sum of the amount calculated under subdivision (a)             

                                                                                

24  plus the amount calculated under this subdivision.  The amount              

                                                                                

25  calculated under this subdivision shall be equal to the                     

                                                                                

26  difference between the district's 1994-95 foundation allowance              

                                                                                

27  minus $6,500.00 and the current year hold harmless school                   


                                                                                

1   operating taxes per pupil.  If the result of the calculation                

                                                                                

2   under subdivision (a) is negative, the negative amount shall be             

                                                                                

3   an offset against any state payment calculated under this                   

                                                                                

4   subdivision.  If the result of a calculation under this                     

                                                                                

5   subdivision is negative, there shall not be a state payment or a            

                                                                                

6   deduction under this subdivision.  The taxable values per                   

                                                                                

7   membership pupil used in the calculations under this subdivision            

                                                                                

8   are as adjusted by ad valorem property tax revenue captured under           

                                                                                

9   1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance            

                                                                                

10  authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local             

                                                                                

11  development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,           

                                                                                

12  or the brownfield redevelopment financing act, 1996 PA 381,                 

                                                                                

13  MCL 125.2651 to 125.2672, divided by the district's membership.             

                                                                                

14      (3) For pupils in membership in a qualifying public school                  

                                                                                

15  academy or qualifying university school, there is allocated under           

                                                                                

16  this section  each fiscal year for 2001-2002, for 2002-2003, and            

                                                                                

17  for 2003-2004 to the authorizing body that is the fiscal agent              

                                                                                

18  for the qualifying public school academy for forwarding to the              

                                                                                

19  qualifying public school academy, or to the board of the public             

                                                                                

20  university operating the qualifying university school, an amount            

                                                                                

21  equal to the 1994-95 per pupil payment to the qualifying public             

                                                                                

22  school academy or qualifying university school under section 20.            

                                                                                

23      (4) A district, qualifying university school, or qualifying                 

                                                                                

24  public school academy may use funds allocated under this section            

                                                                                

25  in conjunction with any federal funds for which the district,               

                                                                                

26  qualifying university school, or qualifying public school academy           

                                                                                

27  otherwise would be eligible.                                                


                                                                                

1       (5) For a district that is formed or reconfigured after                     

                                                                                

2   June 1, 2000 by consolidation of 2 or more districts or by                  

                                                                                

3   annexation, the resulting district's 1994-95 foundation allowance           

                                                                                

4   under this section beginning after the effective date of the                

                                                                                

5   consolidation or annexation shall be the average of the 1994-95             

                                                                                

6   foundation allowances of each of the original or affected                   

                                                                                

7   districts, calculated as provided in this section, weighted as to           

                                                                                

8   the percentage of pupils in total membership in the resulting               

                                                                                

9   district in the state fiscal year in which the consolidation                

                                                                                

10  takes place who reside in the geographic area of each of the                

                                                                                

11  original districts.  If an affected district's 1994-95 foundation           

                                                                                

12  allowance is less than the 1994-95 basic foundation allowance,              

                                                                                

13  the amount of that district's 1994-95 foundation allowance shall            

                                                                                

14  be considered for the purpose of calculations under this                    

                                                                                

15  subsection to be equal to the amount of the 1994-95 basic                   

                                                                                

16  foundation allowance.                                                       

                                                                                

17      (6) As used in this section:                                                

                                                                                

18      (a) "1994-95 foundation allowance" means a district's 1994-95               

                                                                                

19  foundation allowance calculated and certified by the department             

                                                                                

20  of treasury or the superintendent under former section 20a as               

                                                                                

21  enacted in 1993 PA 336 and as amended by 1994 PA 283.                       

                                                                                

22      (b) "Current state fiscal year" means the state fiscal year                 

                                                                                

23  for which a particular calculation is made.                                 

                                                                                

24      (c) "Current year hold harmless school operating taxes per                  

                                                                                

25  pupil" means the per pupil revenue generated by multiplying a               

                                                                                

26  district's 1994-95 hold harmless millage by the district's                  

                                                                                

27  current year taxable value per membership pupil.                            


                                                                                

1       (d) "Hold harmless millage" means, for a district with a                    

                                                                                

2   1994-95 foundation allowance greater than $6,500.00, the number             

                                                                                

3   of mills by which the exemption from the levy of school operating           

                                                                                

4   taxes on a homestead and qualified agricultural property could be           

                                                                                

5   reduced as provided in section 1211(1) of the revised school                

                                                                                

6   code, MCL 380.1211, and the number of mills of school operating             

                                                                                

7   taxes that could be levied on all property as provided in section           

                                                                                

8   1211(2) of the revised school code, MCL 380.1211, as certified by           

                                                                                

9   the department of treasury for the 1994 tax year.                           

                                                                                

10      (e) "Homestead" means that term as defined in section 1211 of               

                                                                                

11  the revised school code, MCL 380.1211.                                      

                                                                                

12      (f) "Membership" means the definition of that term under                    

                                                                                

13  section 6 as in effect for the particular fiscal year for which a           

                                                                                

14  particular calculation is made.                                             

                                                                                

15      (g) "Qualified agricultural property" means that term as                    

                                                                                

16  defined in section 1211 of the revised school code,                         

                                                                                

17  MCL 380.1211.                                                               

                                                                                

18      (h) "Qualifying public school academy" means a public school                

                                                                                

19  academy that was in operation in the 1994-95 school year and is             

                                                                                

20  in operation in the current state fiscal year.                              

                                                                                

21      (i) "Qualifying university school" means a university school                

                                                                                

22  that was in operation in the 1994-95 school year and is in                  

                                                                                

23  operation in the current fiscal year.                                       

                                                                                

24      (j) "School operating taxes" means local ad valorem property                

                                                                                

25  taxes levied under section 1211 of the revised school code,                 

                                                                                

26  MCL 380.1211, and retained for school operating purposes.                   

                                                                                

27      (k) "Taxable value per membership pupil" means each of the                  


                                                                                

1   following divided by the district's membership:                             

                                                                                

2                                                                                (i) For the number of mills by which the exemption from the                         

                                                                                

3   levy of school operating taxes on a homestead and qualified                 

                                                                                

4   agricultural property may be reduced as provided in section                 

                                                                                

5   1211(1) of the revised school code, MCL 380.1211, the taxable               

                                                                                

6   value of homestead and qualified agricultural property for the              

                                                                                

7   calendar year ending in the current state fiscal year.                      

                                                                                

8       (ii) For the number of mills of school operating taxes that                  

                                                                                

9   may be levied on all property as provided in section 1211(2) of             

                                                                                

10  the revised school code, MCL 380.1211, the taxable value of all             

                                                                                

11  property for the calendar year ending in the current state fiscal           

                                                                                

12  year.                                                                       

                                                                                

13      Sec. 22b.  (1) From the appropriation in section 11, there                  

                                                                                

14  is allocated an amount not to exceed  $2,368,000,000.00 for                 

                                                                                

15  2001-2002, an amount not to exceed $2,883,500,000.00 for                    

                                                                                

16  2002-2003, and an amount not to exceed $2,880,000,000.00                    

                                                                                

17  $2,881,399,900.00 for 2003-2004 for discretionary nonmandated               

                                                                                

18  payments to districts under this section.  Funds allocated under            

                                                                                

19  this section that are not expended in the state fiscal year for             

                                                                                

20  which they were allocated, as determined by the department, may             

                                                                                

21  be used to supplement the allocations under sections 22a and 51c            

                                                                                

22  in order to fully fund those calculated allocations for the same            

                                                                                

23  fiscal year.                                                                

                                                                                

24      (2) Subject to subsection (3)  , subsections (5) to (9),  and               

                                                                                

25  section 11, the allocation to a district under this section shall           

                                                                                

26  be an amount equal to the sum of the amounts calculated under               

                                                                                

27  sections 20, 20j, 51a(2), 51a(3), and 51a(12), minus the sum of             


                                                                                

1   the allocations to the district under sections 22a and 51c.                 

                                                                                

2       (3) In order to receive an allocation under this section,                   

                                                                                

3   each district shall administer in each grade level that it                  

                                                                                

4   operates in grades 1 to 5 a standardized assessment approved by             

                                                                                

5   the department of grade-appropriate basic educational skills.  A            

                                                                                

6   district may use the Michigan literacy progress profile to                  

                                                                                

7   satisfy this requirement for grades 1 to 3.  Also, if the revised           

                                                                                

8   school code is amended to require annual assessments at                     

                                                                                

9   additional grade levels, in order to receive an allocation under            

                                                                                

10  this section each district shall comply with that requirement.              

                                                                                

11      (4) From the allocation in subsection (1), the department                   

                                                                                

12  shall expend funds to pay for necessary costs associated with               

                                                                                

13  resolving matters pending in federal court impacting payments to            

                                                                                

14  districts, including, but not limited to, expert witness fees.              

                                                                                

15  Beginning in 2001-2002, from the allocation in subsection (1),              

                                                                                

16  the department shall also pay up to $1,000,000.00 in litigation             

                                                                                

17  costs incurred by this state associated with lawsuits filed by 1            

                                                                                

18  or more districts or intermediate districts against this state.             

                                                                                

19  If the allocation under this section is insufficient to fully               

                                                                                

20  fund all payments required under this section, the payments under           

                                                                                

21  this subsection shall be made in full before any proration of               

                                                                                

22  remaining payments under this section.                                      

                                                                                

23      (5) It is the intent of the legislature that all                            

                                                                                

24  constitutional obligations of this state have been fully funded             

                                                                                

25  under sections 22a, 31d, 51a, and 51c.  If a claim is made by an            

                                                                                

26  entity receiving funds under this act that challenges the                   

                                                                                

27  legislative determination of the adequacy of this funding or                


                                                                                

1   alleges that there exists an unfunded constitutional requirement,           

                                                                                

2   the state budget director may escrow or allocate from the                   

                                                                                

3   discretionary funds for nonmandated payments under this section             

                                                                                

4   the amount as may be necessary to satisfy the claim before making           

                                                                                

5   any payments to districts under subsection (2).  If funds are               

                                                                                

6   escrowed, the escrowed funds are a work project appropriation and           

                                                                                

7   the funds are carried forward into the following fiscal year.               

                                                                                

8   The purpose of the work project is to provide for any payments              

                                                                                

9   that may be awarded to districts as a result of litigation.  The            

                                                                                

10  work project shall be completed upon resolution of the                      

                                                                                

11  litigation.                                                                 

                                                                                

12      (6) If the local claims review board or a court of competent                

                                                                                

13  jurisdiction makes a final determination that this state is in              

                                                                                

14  violation of section 29 of article IX of the state constitution             

                                                                                

15  of 1963 regarding state payments to districts, the state budget             

                                                                                

16  director shall use work project funds under subsection (5) or               

                                                                                

17  allocate from the discretionary funds for nonmandated payments              

                                                                                

18  under this section the amount as may be necessary to satisfy the            

                                                                                

19  amount owed to districts before making any payments to districts            

                                                                                

20  under subsection (2).                                                       

                                                                                

21      (7) If a claim is made in court that challenges the                         

                                                                                

22  legislative determination of the adequacy of funding for this               

                                                                                

23  state's constitutional obligations or alleges that there exists             

                                                                                

24  an unfunded constitutional requirement, any interested party may            

                                                                                

25  seek an expedited review of the claim by the local claims review            

                                                                                

26  board.  If the claim exceeds $10,000,000.00, this state may                 

                                                                                

27  remove the action to the court of appeals, and the court of                 


    House Bill No. 4401 as amended June 18, 2003                                

1   appeals shall have and shall exercise jurisdiction over the                 

                                                                                

2   claim.                                                                      

                                                                                

3       (8) If payments resulting from a final determination by the                 

                                                                                

4   local claims review board or a court of competent jurisdiction              

                                                                                

5   that there has been a violation of section 29 of article IX of              

                                                                                

6   the state constitution of 1963 exceed the amount allocated for              

                                                                                

7   discretionary nonmandated payments under this section, the                  

                                                                                

8   legislature shall provide for adequate funding for this state's             

                                                                                

9   constitutional obligations at its next legislative session.                 

                                                                                

10      <<(9) If a lawsuit challenging payments made to districts                   

                                                                                

11  related to costs reimbursed by federal title XIX medicaid funds             

                                                                                

12  is filed against this state during 2001-2002, 2002-2003, or                 

                                                                                

13  2003-2004, 50% of the amount allocated in subsection (1) not                

                                                                                

14  previously paid out for 2002-2003, 2003-2004, and each succeeding fiscal    

                                                                                

15  year is a work project appropriation and the funds are carried forward      

                                                                                

16  into the following fiscal year.  The purpose of the work project            

                                                                                

17  is to provide for any payments that may be awarded to districts             

                                                                                

18  as a result of the litigation.  The work project shall be                   

                                                                                

19  completed upon resolution of the litigation.  In addition, this             

                                                                                

20  state reserves the right to terminate future federal title XIX              

                                                                                

21  medicaid reimbursement payments to districts if the amount or               

                                                                                

22  allocation of reimbursed funds is challenged in the lawsuit.  As            

                                                                                

23  used in this subsection, "title XIX" means title XIX of the                 

                                                                                

24  social security act, chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to           

                                                                                

25  1396r-6 and 1396r-8 to 1396v.>>                                             

                                                                                

26      Sec. 22d.  If the department determines that a district has                 

                                                                                

27  been required to pay interest and penalties due to a decision of            


                                                                                

1   the state tax tribunal involving a loss in taxable value related            

                                                                                

2   to property classified as industrial, the district shall receive            

                                                                                

3   a payment under this section to reimburse the district for the              

                                                                                

4   amount of interest and penalties the district is required to pay            

                                                                                

5   in excess of $8,000,000.00, as determined by the department of              

                                                                                

6   treasury.                                                                   

                                                                                

7       Sec. 22e.  (1) From the appropriations in section 11, there                 

                                                                                

8   is allocated an amount not to exceed $120,000.00 for 2003-2004              

                                                                                

9   for interest payments to districts under this section.                      

                                                                                

10      (2) If the department determines that a district is required                

                                                                                

11  to pay interest on any property tax refund ordered in the partial           

                                                                                

12  consent judgment entered on November 6, 2001 in Hitachi Magnetics           

                                                                                

13  Corporation v Home Township, Michigan tax tribunal, docket                  

                                                                                

14  nos. 190507 and 247733 (consolidated), the district shall receive           

                                                                                

15  a payment under this section to reimburse the district for                  

                                                                                

16  interest paid, in an amount determined by the department of                 

                                                                                

17  treasury.                                                                   

                                                                                

18      Sec. 22f.  From the appropriation in section 11, there is                   

                                                                                

19  allocated an amount not to exceed $100.00 for 2003-2004 to                  

                                                                                

20  reimburse districts for payments made for the public schools'               

                                                                                

21  share of the cost of examinations authorized under section 22a of           

                                                                                

22  the general property tax act, 1893 PA 206, MCL 211.22a, under a             

                                                                                

23  contract approved by the department of treasury.  The public                

                                                                                

24  schools' share for a calendar year shall be calculated by adding            

                                                                                

25  that year's millage rate under the state education tax act, 1993            

                                                                                

26  PA 331, MCL 211.901 to 211.906, and the millage rate levied that            

                                                                                

27  year under section 1211 of the revised school code, MCL 380.1211,           


                                                                                

1   on property that is not a homestead and not qualified                       

                                                                                

2   agricultural property, and dividing the sum by the total millage            

                                                                                

3   rate levied that year on property that is not a homestead and not           

                                                                                

4   qualified agricultural property.  The department shall make                 

                                                                                

5   distributions under this section based on amounts determined by             

                                                                                

6   the department of treasury.                                                 

                                                                                

7       Sec. 24.  (1) Subject to subsection (2), from the                           

                                                                                

8   appropriation in section 11, there is allocated  each fiscal year           

                                                                                

9   for 2001-2002, for 2002-2003, and  for 2003-2004 to the educating           

                                                                                

10  district or intermediate district an amount equal to 100% of the            

                                                                                

11  added cost each fiscal year for educating all pupils assigned by            

                                                                                

12  a court or the family independence agency to reside in or to                

                                                                                

13  attend a juvenile detention facility or child caring institution            

                                                                                

14  licensed by the family independence agency or the department of             

                                                                                

15  consumer and industry services and approved by the department to            

                                                                                

16  provide an on-grounds education program.  The total amount to be            

                                                                                

17  paid under this section for added cost shall not exceed                     

                                                                                

18  $8,400,000.00 for 2001-2002 and $8,900,000.00 each fiscal year             

                                                                                

19  for 2002-2003 and  $8,000,000.00 for 2003-2004.  For the purposes           

                                                                                

20  of this section, "added cost" shall be computed by deducting all            

                                                                                

21  other revenue received under this act for pupils described in               

                                                                                

22  this section from total costs, as approved by the department, in            

                                                                                

23  whole or in part, for educating those pupils in the on-grounds              

                                                                                

24  education program or in a program approved by the department that           

                                                                                

25  is located on property adjacent to a juvenile detention facility            

                                                                                

26  or child caring institution.  Costs reimbursed by federal funds             

                                                                                

27  are not included.  For an on-grounds education program or a                 


                                                                                

1   program located on property adjacent to a juvenile detention                

                                                                                

2   facility or child caring institution that was not in existence at           

                                                                                

3   the time the allocations under this section were approved, the              

                                                                                

4   department shall give approval for only that portion of the                 

                                                                                

5   educating district's or intermediate district's total costs that            

                                                                                

6   will not prevent the allocated amounts under this section from              

                                                                                

7   first being applied to 100% of the added cost of the programs               

                                                                                

8   that were in existence at the time the allocations under this               

                                                                                

9   section were approved.                                                      

                                                                                

10      (2) A district or intermediate district educating pupils                    

                                                                                

11  described in this section at a residential child caring                     

                                                                                

12  institution may operate, and receive funding under this section             

                                                                                

13  for, a department-approved on-grounds educational program for               

                                                                                

14  those pupils that is longer than 181 days, but not longer than              

                                                                                

15  233 days, if the child caring institution was licensed as a child           

                                                                                

16  caring institution and offered in 1991-92 an on-grounds                     

                                                                                

17  educational program that was longer than 181 days but not longer            

                                                                                

18  than 233 days and that was operated by a district or intermediate           

                                                                                

19  district.                                                                   

                                                                                

20      (3) Special education pupils funded under section 53a shall                 

                                                                                

21  not be funded under this section.                                           

                                                                                

22      Sec. 26a.  From the general fund appropriation in section                   

                                                                                

23  11, there is allocated an amount not to exceed  $8,800,000.00 for           

                                                                                

24  2001-2002 and an amount not to exceed $10,174,000.00 each fiscal            

                                                                                

25  year for 2002-2003 and  $18,700,000.00 for 2002-2003 and an                 

                                                                                

26  amount not to exceed $27,910,000.00 for 2003-2004 to reimburse              

                                                                                

27  districts, intermediate districts, and the state school aid fund            


                                                                                

1   pursuant to section 12 of the Michigan renaissance zone act, 1996           

                                                                                

2   PA 376, MCL 125.2692, for taxes levied in  2001,  2002  ,  and              

                                                                                

3   2003, respectively.  This reimbursement shall be made by                    

                                                                                

4   adjusting payments under section 22a to eligible districts,                 

                                                                                

5   adjusting payments under section 56, 62, or 81 to eligible                  

                                                                                

6   intermediate districts, and adjusting the state school aid fund.            

                                                                                

7   The adjustments shall be made not later than 60 days after the              

                                                                                

8   department of treasury certifies to the department and to the               

                                                                                

9   state budget director that the department of treasury has                   

                                                                                

10  received all necessary information to properly determine the                

                                                                                

11  amounts due to each eligible recipient.                                     

                                                                                

12      Sec. 31a.  (1) From the state school aid fund money                         

                                                                                

13  appropriated in section 11, there is allocated for  2001-2002 an            

                                                                                

14  amount not to exceed $314,200,000.00 and there is allocated each            

                                                                                

15  fiscal year for 2002-2003 and for  2003-2004 an amount not to               

                                                                                

16  exceed  $314,200,000.00  $314,359,400.00 for payments to eligible           

                                                                                

17  districts and eligible public school academies under this                   

                                                                                

18  section.  Subject to subsection  (11)  (12), the amount of the              

                                                                                

19  additional allowance under this section shall be based on the               

                                                                                

20  number of actual pupils in membership in the district or public             

                                                                                

21  school academy who met the income eligibility criteria for free             

                                                                                

22  breakfast, lunch, or milk in the immediately preceding state                

                                                                                

23  fiscal year, as determined under the Richard B. Russell national            

                                                                                

24  school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to              

                                                                                

25  1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c,             

                                                                                

26  and 1769f to 1769h, and reported to the department by October 31            

                                                                                

27  of the immediately preceding fiscal year and adjusted not later             


                                                                                

1   than December 31 of the immediately preceding fiscal year.                  

                                                                                

2   However, for a public school academy that began operations as a             

                                                                                

3   public school academy after the pupil membership count day of the           

                                                                                

4   immediately preceding school year, the basis for the additional             

                                                                                

5   allowance under this section shall be the number of actual pupils           

                                                                                

6   in membership in the public school academy who met the income               

                                                                                

7   eligibility criteria for free breakfast, lunch, or milk in the              

                                                                                

8   current state fiscal year, as determined under the Richard                  

                                                                                

9   B. Russell national school lunch act.                                       

                                                                                

10      (2) To be eligible to receive funding under this section,                   

                                                                                

11  other than funding under subsection (6), a district or public               

                                                                                

12  school academy that has not been previously determined to be                

                                                                                

13  eligible shall apply to the department, in a form and manner                

                                                                                

14  prescribed by the department, and a district or public school               

                                                                                

15  academy must meet all of the following:                                     

                                                                                

16      (a) The sum of the district's or public school academy's                    

                                                                                

17  combined state and local revenue per membership pupil in the                

                                                                                

18  current state fiscal year, as calculated under section 20, plus             

                                                                                

19  the amount of the district's per pupil allocation under section             

                                                                                

20  20j(2), is less than or equal to $6,500.00 adjusted by the dollar           

                                                                                

21  amount of the difference between the basic foundation allowance             

                                                                                

22  under section 20 for the current state fiscal year and $5,000.00,           

                                                                                

23  .  However, beginning in 2002-2003, the $6,500.00 amount                   

                                                                                

24  prescribed in this subdivision shall be adjusted each year by an            

                                                                                

25  amount equal to the dollar amount of the difference between the             

                                                                                

26  basic foundation allowance for the current state fiscal year and            

                                                                                

27  $5,000.00,  minus $200.00.                                                  


                                                                                

1       (b) The district or public school academy agrees to use the                 

                                                                                

2   funding only for purposes allowed under this section and to                 

                                                                                

3   comply with the program and accountability requirements under               

                                                                                

4   this section.                                                               

                                                                                

5       (3) Except as otherwise provided in this subsection, an                     

                                                                                

6   eligible district or eligible public school academy shall receive           

                                                                                

7   under this section for each membership pupil in the district or             

                                                                                

8   public school academy who met the income eligibility criteria for           

                                                                                

9   free breakfast, lunch, or milk, as determined under the Richard             

                                                                                

10  B. Russell national school lunch act and as reported to the                 

                                                                                

11  department by October 31 of the immediately preceding fiscal year           

                                                                                

12  and adjusted not later than December 31 of the immediately                  

                                                                                

13  preceding fiscal year, an amount per pupil equal to 11.5% of the            

                                                                                

14  sum of the district's foundation allowance or public school                 

                                                                                

15  academy's per pupil amount calculated under section 20, plus the            

                                                                                

16  amount of the district's per pupil allocation under section                 

                                                                                

17  20j(2), not to exceed $6,500.00 adjusted by the dollar amount of            

                                                                                

18  the difference between the basic foundation allowance under                 

                                                                                

19  section 20 for the current state fiscal year and $5,000.00, minus           

                                                                                

20  $200.00, or of the public school academy's per membership pupil             

                                                                                

21  amount calculated under section 20 for the current state fiscal             

                                                                                

22  year.   However, beginning in 2002-2003, the $6,500.00 amount               

                                                                                

23  prescribed in this subsection shall be adjusted each year by an             

                                                                                

24  amount equal to the dollar amount of the difference between the             

                                                                                

25  basic foundation allowance for the current state fiscal year and            

                                                                                

26  $5,000.00, minus $200.00.  A public school academy that began               

                                                                                

27  operations as a public school academy after the pupil membership            


    House Bill No. 4401 as amended June 18, 2003                                

1   count day of the immediately preceding school year shall receive            

                                                                                

2   under this section for each membership pupil in the public school           

                                                                                

3   academy who met the income eligibility criteria for free                    

                                                                                

4   breakfast, lunch, or milk, as determined under the Richard                  

                                                                                

5   B. Russell national school lunch act and as reported to the                 

                                                                                

6   department by October 31 of the current fiscal year and adjusted            

                                                                                

7   not later than December 31 of the current fiscal year, an amount            

                                                                                

8   per pupil equal to 11.5% of the public school academy's per                 

                                                                                

9   membership pupil amount calculated under section 20 for the                 

                                                                                

10  current state fiscal year.                                                  

                                                                                

11      (4) Except as otherwise provided in this section, a district                

                                                                                

12  or public school academy receiving funding under this section               

                                                                                

13  shall use that money only to provide instructional programs and             

                                                                                

14  direct noninstructional services, including, but not limited to,            

                                                                                

15  medical or counseling services, for at-risk pupils; for school              

                                                                                

16  health clinics; and for the purposes of subsection (5) or (6).  ,           

                                                                                

17  and  A district or public school academy shall not use any of               

                                                                                

18  that money for administrative costs or to supplant another                  

                                                                                

19  program or other funds, except for funds allocated to the                   

                                                                                

20  district or public school academy under this section in the                 

                                                                                

21  immediately preceding year and already being used by the district           

                                                                                

22  or public school academy for at-risk pupils.  The instruction or            

                                                                                

23  direct noninstructional services provided under this section may            

                                                                                

24  be conducted before or after regular school hours or by adding              

                                                                                

25  extra school days to the school year and may <<be conducted using           

                                                                                

26  a>> <<include, but are not limited to, tutorial services, early             

                                                                                

27  childhood programs to serve children age 0 to 5, and reading                


    House Bill No. 4401 as amended June 18, 2003                                

1   programs as described in former section 32f as in effect for                

                                                                                

2   2001-2002.  A tutorial method may be conducted>> with                                                            

                                                                                

3   paraprofessionals working under the supervision of a certificated           

                                                                                

4   teacher.  The ratio of pupils to paraprofessionals shall be                 

                                                                                

5   between 10:1 and 15:1.  Only 1 certificated teacher is required             

                                                                                

6   to supervise instruction using a tutorial method.  As used in               

                                                                                

7   this subsection, "to supplant another program" means to take the            

                                                                                

8   place of a previously existing instructional program or direct              

                                                                                

9   noninstructional services funded from a funding source other than           

                                                                                

10  funding under this section.                                                 

                                                                                

11      (5)  A  Except as otherwise provided in subsection (11), a                  

                                                                                

12  district or public school academy that receives funds under this            

                                                                                

13  section and that operates a school breakfast program under                  

                                                                                

14  section 1272a of the revised school code, MCL 380.1272a, shall              

                                                                                

15  use from the funds received under this section an amount, not to            

                                                                                

16  exceed $10.00 per pupil for whom the district or public school              

                                                                                

17  academy receives funds under this section, necessary to operate             

                                                                                

18  the school breakfast program.                                               

                                                                                

19      (6) From the funds allocated under subsection (1), there is                 

                                                                                

20  allocated  for 2001-2002 an amount not to exceed $2,400,000.00 to           

                                                                                

21  support teen health centers.  These 2001-2002 funds shall be                

                                                                                

22  distributed to existing teen health centers in a manner                     

                                                                                

23  determined by the department in collaboration with the department           

                                                                                

24  of community health.  From the funds allocated under                        

                                                                                

25  subsection (1), there is allocated each fiscal year for 2002-2003           

                                                                                

26  and for  beginning with 2003-2004 an amount not to exceed                   

                                                                                

27  $3,743,000.00  for competitive grants  to support teen health               


                                                                                

1   centers.  These grants  for 2002-2003 and 2003-2004  shall be               

                                                                                

2   awarded for 3 consecutive years beginning with 2003-2004 in a               

                                                                                

3   form and manner approved jointly by the department and the                  

                                                                                

4   department of community health.  Each grant recipient shall                 

                                                                                

5   remain in compliance with the terms of the grant award or shall             

                                                                                

6   forfeit the grant award for the duration of the 3-year period               

                                                                                

7   after the noncompliance. If any funds allocated under this                  

                                                                                

8   subsection are not used for the purposes of this subsection for             

                                                                                

9   the fiscal year in which they are allocated, those unused funds             

                                                                                

10  shall be used that fiscal year to avoid or minimize any proration           

                                                                                

11  that would otherwise be required under subsection  (11)  (12) for           

                                                                                

12  that fiscal year.                                                           

                                                                                

13      (7) Each district or public school academy receiving funds                  

                                                                                

14  under this section shall submit to the department by July 15 of             

                                                                                

15  each fiscal year a report, not to exceed 10 pages, on the usage             

                                                                                

16  by the district or public school academy of funds under this                

                                                                                

17  section, which report shall include at least a brief description            

                                                                                

18  of each program conducted by the district or public school                  

                                                                                

19  academy using funds under this section, the amount of funds under           

                                                                                

20  this section allocated to each of those programs, the number of             

                                                                                

21  at-risk pupils eligible for free or reduced price school lunch              

                                                                                

22  who were served by each of those programs, and the total number             

                                                                                

23  of at-risk pupils served by each of those programs.  If a                   

                                                                                

24  district or public school academy does not comply with this                 

                                                                                

25  subsection, the department shall withhold an amount equal to the            

                                                                                

26  August payment due under this section until the district or                 

                                                                                

27  public school academy complies with this subsection.  If the                


                                                                                

1   district or public school academy does not comply with this                 

                                                                                

2   subsection by the end of the state fiscal year, the withheld                

                                                                                

3   funds shall be forfeited to the school aid fund.                            

                                                                                

4       (8) In order to receive funds under this section, a district                

                                                                                

5   or public school academy shall allow access for the department or           

                                                                                

6   the department's designee to audit all records related to the               

                                                                                

7   program for which it receives those funds.  The district or                 

                                                                                

8   public school academy shall reimburse the state for all                     

                                                                                

9   disallowances found in the audit.                                           

                                                                                

10      (9) Subject to subsections (5),  and  (6), and (11), any                    

                                                                                

11  district may use up to 100% of the funds it receives under this             

                                                                                

12  section to reduce the ratio of pupils to teachers in grades K-6,            

                                                                                

13  or any combination of those grades, in school buildings in which            

                                                                                

14  the percentage of pupils described in subsection (1) exceeds the            

                                                                                

15  district's aggregate percentage of those pupils.  Subject to                

                                                                                

16  subsections (5),  and  (6), and (11), if a district obtains a               

                                                                                

17  waiver from the department, the district may use up to 100% of              

                                                                                

18  the funds it receives under this section to reduce the ratio of             

                                                                                

19  pupils to teachers in grades K-6, or any combination of those               

                                                                                

20  grades, in school buildings in which the percentage of pupils               

                                                                                

21  described in subsection (1) is at least 60% of the district's               

                                                                                

22  aggregate percentage of those pupils and at least 30% of the                

                                                                                

23  total number of pupils enrolled in the school building.  To                 

                                                                                

24  obtain a waiver, a district must apply to the department and                

                                                                                

25  demonstrate to the satisfaction of the department that the class            

                                                                                

26  size reductions would be in the best interests of the district's            

                                                                                

27  at-risk pupils.                                                             


    House Bill No. 4401 as amended June 18, 2003                                

1       (10) A district or public school academy may use funds                      

                                                                                

2   received under this section for adult high school completion,               

                                                                                

3   general education development (G.E.D.)  test preparation, <<                

                                                                                

4                                >> or adult basic education programs           

                                                                                

5   described in section 107.                                                   

                                                                                

6       (11) For an individual school or schools operated by a                      

                                                                                

7   district or public school academy receiving funds under this                

                                                                                

8   section that have been determined by the department to meet the             

                                                                                

9   adequate yearly progress standards of the federal no child left             

                                                                                

10  behind act of 2001, Public Law 107-110, 115 Stat. 1425, in both             

                                                                                

11  mathematics and English language arts at all applicable grade               

                                                                                

12  levels for all applicable subgroups, the district or public                 

                                                                                

13  school academy may submit to the department an application for              

                                                                                

14  flexibility in using the funds received under this section that             

                                                                                

15  are attributable to the pupils in the school or schools.  The               

                                                                                

16  application shall identify the affected school or schools and the           

                                                                                

17  affected funds and shall contain a plan for using the funds for             

                                                                                

18  specific purposes identified by the district that are designed to           

                                                                                

19  benefit at-risk pupils in the school, but that may be different             

                                                                                

20  from the purposes otherwise allowable under this section.  The              

                                                                                

21  department shall approve the application if the department                  

                                                                                

22  determines that the purposes identified in the plan are                     

                                                                                

23  reasonably designed to benefit at-risk pupils in the school.  If            

                                                                                

24  the department does not act to approve or disapprove an                     

                                                                                

25  application within 30 days after it is submitted to the                     

                                                                                

26  department, the application is considered to be approved.  If an            

                                                                                

27  application for flexibility in using the funds is approved, the             


                                                                                

1   district may use the funds identified in the application for any            

                                                                                

2   purpose identified in the plan.                                             

                                                                                

3       (12)  (11)  If necessary, and before any proration required                 

                                                                                

4   under section 11, the department shall prorate payments under               

                                                                                

5   this section by reducing the amount of the per pupil payment                

                                                                                

6   under this section by a dollar amount calculated by determining             

                                                                                

7   the amount by which the amount necessary to fully fund the                  

                                                                                

8   requirements of this section exceeds the maximum amount allocated           

                                                                                

9   under this section and then dividing that amount by the total               

                                                                                

10  statewide number of pupils who met the income eligibility                   

                                                                                

11  criteria for free breakfast, lunch, or milk in the immediately              

                                                                                

12  preceding fiscal year, as described in subsection (1).                      

                                                                                

13      (12) Funds allocated under this section that are unexpended                 

                                                                                

14  and unencumbered at the end of the fiscal year for which they               

                                                                                

15  were allocated shall be carried forward and used in subsequent              

                                                                                

16  fiscal years to avoid or minimize any proration that would                  

                                                                                

17  otherwise be required under subsection (11).                                

                                                                                

18      (13) If a district is formed by consolidation after June 1,                 

                                                                                

19  1995, and if 1 or more of the original districts was not eligible           

                                                                                

20  before the consolidation for an additional allowance under this             

                                                                                

21  section, the amount of the additional allowance under this                  

                                                                                

22  section for the consolidated district shall be based on the                 

                                                                                

23  number of pupils described in subsection (1) enrolled in the                

                                                                                

24  consolidated district who reside in the territory of an original            

                                                                                

25  district that was eligible before the consolidation for an                  

                                                                                

26  additional allowance under this section.                                    

                                                                                

27      (14) A district or public school academy that does not meet                 


                                                                                

1   the eligibility requirement under subsection (2)(a) is eligible             

                                                                                

2   for funding under this section if at least 1/4 of the pupils in             

                                                                                

3   membership in the district or public school academy met the                 

                                                                                

4   income eligibility criteria for free breakfast, lunch, or milk in           

                                                                                

5   the immediately preceding state fiscal year, as determined and              

                                                                                

6   reported as described in subsection (1), and at least 4,500 of              

                                                                                

7   the pupils in membership in the district or public school academy           

                                                                                

8   met the income eligibility criteria for free breakfast, lunch, or           

                                                                                

9   milk in the immediately preceding state fiscal year, as                     

                                                                                

10  determined and reported as described in subsection (1).  A                  

                                                                                

11  district or public school academy that is eligible for funding              

                                                                                

12  under this section because the district meets the requirements of           

                                                                                

13  this subsection shall receive under this section for each                   

                                                                                

14  membership pupil in the district or public school academy who met           

                                                                                

15  the income eligibility criteria for free breakfast, lunch, or               

                                                                                

16  milk in the immediately preceding fiscal year, as determined and            

                                                                                

17  reported as described in subsection (1), an amount per pupil                

                                                                                

18  equal to  5.75% for 2001-2002 and 11.5% for 2002-2003 and                   

                                                                                

19  subsequent fiscal years  11.5% of the sum of the district's                 

                                                                                

20  foundation allowance or public school academy's per pupil                   

                                                                                

21  allocation under section 20, plus the amount of the district's              

                                                                                

22  per pupil allocation under section 20j(2), not to exceed                    

                                                                                

23  $6,500.00 adjusted by the dollar amount of the difference between           

                                                                                

24  the basic foundation allowance under section 20 for the current             

                                                                                

25  state fiscal year and $5,000.00,  .  However, beginning in                  

                                                                                

26  2002-2003, the $6,500.00 amount prescribed in this subsection               

                                                                                

27  shall be adjusted each year by an amount equal to the dollar                


                                                                                

1   amount of the difference between the basic foundation allowance             

                                                                                

2   for the current state fiscal year and $5,000.00,  minus $200.00.            

                                                                                

3       (15) As used in this section, "at-risk pupil" means a pupil                 

                                                                                

4   for whom the district has documentation that the pupil meets at             

                                                                                

5   least 2 of the following criteria:  is a victim of child abuse or           

                                                                                

6   neglect; is below grade level in English language and                       

                                                                                

7   communication skills or mathematics; is a pregnant teenager or              

                                                                                

8   teenage parent; is eligible for a federal free or reduced-price             

                                                                                

9   lunch subsidy; has atypical behavior or attendance patterns; or             

                                                                                

10  has a family history of school failure, incarceration, or                   

                                                                                

11  substance abuse.  For pupils for whom the results of at least the           

                                                                                

12  applicable Michigan education assessment program (MEAP) test have           

                                                                                

13  been received, at-risk pupil also includes a pupil who does not             

                                                                                

14  meet the other criteria under this subsection but who did not               

                                                                                

15  achieve at least a score of moderate on the most recent MEAP                

                                                                                

16  reading test for which results for the pupil have been received,            

                                                                                

17  did not achieve at least a score of moderate on the most recent             

                                                                                

18  MEAP mathematics test for which results for the pupil have been             

                                                                                

19  received, or did not achieve at least a score of novice on the              

                                                                                

20  most recent MEAP science test for which results for the pupil               

                                                                                

21  have been received.  For pupils in grades K-3, at-risk pupil also           

                                                                                

22  includes a pupil who is at risk of not meeting the district's               

                                                                                

23  core academic curricular objectives in English language,                    

                                                                                

24  communication skills, or mathematics.                                       

                                                                                

25      Sec. 31d.  (1) From the  state school aid fund                              

                                                                                

26  appropriation  appropriations in section 11, there is allocated             

                                                                                

27  an amount not to exceed  $16,477,700.00 for 2001-2002 and an                


                                                                                

1   amount not to exceed $17,337,200.00 each fiscal year for                    

                                                                                

2   2002-2003 and for 2003-2004, and from the general fund                      

                                                                                

3   appropriation in section 11, there is allocated an amount not to            

                                                                                

4   exceed $722,300.00 for 2001-2002 and an amount not to exceed                

                                                                                

5   $762,800.00 each fiscal year for 2002-2003 and  $18,315,000.00              

                                                                                

6   for 2002-2003 and an amount not to exceed $21,300,000.00 for                

                                                                                

7   2003-2004 for the purpose of making payments to districts  ,                

                                                                                

8   intermediate districts,  and other eligible entities under this             

                                                                                

9   section.                                                                    

                                                                                

10      (2) The amounts allocated from state sources under this                     

                                                                                

11  section shall be used to pay the amount necessary to reimburse              

                                                                                

12  districts for 6.0127% of the necessary costs of the state                   

                                                                                

13  mandated portion of the school lunch programs provided by those             

                                                                                

14  districts.  The amount due to each district under this section              

                                                                                

15  shall be computed by the department using the methods of                    

                                                                                

16  calculation adopted by the Michigan supreme court in the                    

                                                                                

17  consolidated cases known as Durant v State of Michigan, Michigan            

                                                                                

18  supreme court docket no. 104458-104492.                                     

                                                                                

19      (3) The payments made under this section include all state                  

                                                                                

20  payments made to districts so that each district receives at                

                                                                                

21  least 6.0127% of the necessary costs of operating the state                 

                                                                                

22  mandated portion of the school lunch program in a fiscal year.              

                                                                                

23      (4) The payments made under this section to districts and                   

                                                                                

24  other eligible entities that are not required under section 1272a           

                                                                                

25  of the revised school code, MCL 380.1272a, to provide a school              

                                                                                

26  lunch program shall be in an amount not to exceed $10.00 per                

                                                                                

27  pupil plus 5 cents for each free lunch and 2 cents for each                 


                                                                                

1   reduced price lunch provided, as determined by the department.              

                                                                                

2       (5)  (4)  From the federal funds appropriated in section 11,                

                                                                                

3   there is allocated  each fiscal year for 2002-2003 and  for                 

                                                                                

4   2003-2004 all available federal funding, estimated at                       

                                                                                

5   $272,125,000.00,  each fiscal year,  for the national school                

                                                                                

6   lunch program and all available federal funding, estimated at               

                                                                                

7   $2,506,000.00, for the emergency food assistance program.                   

                                                                                

8       (6)  (5)  Notwithstanding section 17b, payments to                          

                                                                                

9   intermediate districts and other  eligible entities other than             

                                                                                

10  districts under this section shall be paid on a schedule                    

                                                                                

11  determined by the department.                                               

                                                                                

12      Sec.  31e.  From the appropriations in section 11, there is                 

                                                                                

13  allocated an amount not to exceed $2,430,000.00 for 2002-2003 for           

                                                                                

14  the purpose of making payments to districts to reimburse for the            

                                                                                

15  cost of providing breakfast.  The funds appropriated under this             

                                                                                

16  section shall be made available to all eligible applicant                   

                                                                                

17  districts as determined under section 702 of 2002 PA 522.                   

                                                                                

18      Sec. 32c.  (1) From the general fund  allocation in                         

                                                                                

19  section 32a(1)  appropriation in section 11, there is allocated             

                                                                                

20  an amount not to exceed  $2,000,000.00 each fiscal year for                 

                                                                                

21  2001-2002, for 2002-2003, and  $1,900,000.00 for 2003-2004 to the           

                                                                                

22  department for grants for community-based collaborative                     

                                                                                

23  prevention services designed to foster positive parenting skills;           

                                                                                

24  improve parent/child interaction, especially for children 0-3               

                                                                                

25  years of age; promote access to needed community services;                  

                                                                                

26  increase local capacity to serve families at risk; improve school           

                                                                                

27  readiness; and support healthy family environments that                     


                                                                                

1   discourage alcohol, tobacco, and other drug use.  The allocation            

                                                                                

2   under this section is to fund secondary prevention programs as              

                                                                                

3   defined by the children's trust fund for the prevention of child            

                                                                                

4   abuse and neglect.                                                          

                                                                                

5       (2) The funds allocated under subsection (1) shall be                       

                                                                                

6   distributed through a joint request for proposals process                   

                                                                                

7   established by the department in conjunction with the children's            

                                                                                

8   trust fund and the state's interagency systems reform workgroup.            

                                                                                

9   Projects funded with grants awarded under this section shall meet           

                                                                                

10  all of the following:                                                       

                                                                                

11      (a) Be secondary prevention initiatives and voluntary to                    

                                                                                

12  consumers.  This appropriation is not intended to serve the needs           

                                                                                

13  of children for whom and families in which neglect or abuse has             

                                                                                

14  been substantiated.                                                         

                                                                                

15      (b) Demonstrate that the planned services are part of a                     

                                                                                

16  community's integrated comprehensive family support strategy                

                                                                                

17  endorsed by the local multi-purpose collaborative body.                     

                                                                                

18      (c) Provide a 25% local match, of which not more than 10% may               

                                                                                

19  be in-kind services, unless this requirement is waived by the               

                                                                                

20  interagency systems reform workgroup.                                       

                                                                                

21      (3) Notwithstanding section 17b, payments under this section                

                                                                                

22  may be made pursuant to an agreement with the department.                   

                                                                                

23      Sec. 32d.  (1) From the  state school aid fund allocation                   

                                                                                

24  under section 32a(1), there is allocated an amount not to exceed            

                                                                                

25  $72,600,000.00 for 2001-2002, and from the  state school aid fund           

                                                                                

26  money  allocated  appropriated under section  32a  11, there is             

                                                                                

27  allocated an amount not to exceed  $72,600,000.00 each fiscal               


                                                                                

1   year for 2002-2003 and  $66,928,400.00 for 2003-2004  ,  for                

                                                                                

2   school readiness or preschool and parenting program grants to               

                                                                                

3   enable eligible districts, as determined under section 37, to               

                                                                                

4   develop or expand, in conjunction with whatever federal funds may           

                                                                                

5   be available, including, but not limited to, federal funds under            

                                                                                

6   title I of the elementary and secondary education act of 1965,              

                                                                                

7   Public Law 89-10, 108 Stat. 3519, 20 U.S.C. 6301 to 6304, 6311 to           

                                                                                

8   6339, 6361 to 6368, 6371 to 6376, 6381 to 6383, 6391 to 6399,               

                                                                                

9   6421 to 6472, 6491 to 6494, 6511 to 6518, 6531 to 6537, 6551 to             

                                                                                

10  6561i, and 6571 to 6578, chapter 1 of title I of the                        

                                                                                

11  Hawkins-Stafford elementary and secondary school improvement                

                                                                                

12  amendments of 1988, Public Law 89-10, 102 Stat. 140, and the head           

                                                                                

13  start act, subchapter B of chapter 8 of subtitle A of title VI of           

                                                                                

14  the omnibus budget reconciliation act of 1981, Public Law 97-35,            

                                                                                

15  42 U.S.C. 9831 to 9835, 9836 to 9844, 9846, and 9848 to 9852,               

                                                                                

16  comprehensive compensatory programs designed to  improve  do 1 or           

                                                                                

17  both of the following:                                                      

                                                                                

18      (a) Improve the readiness and subsequent achievement of                     

                                                                                

19  educationally disadvantaged children as defined by the department           

                                                                                

20  who will be at least 4, but less than 5 years of age, as of                 

                                                                                

21  December 1 of the school year in which the programs are offered,            

                                                                                

22  and who show evidence of 2 or more risk factors as defined in the           

                                                                                

23  state board report entitled "children at risk" that was adopted             

                                                                                

24  by the state board on April 5, 1988.                                        

                                                                                

25      (b) Provide preschool and parenting education programs                      

                                                                                

26  similar to those under former section 32b as in effect for                  

                                                                                

27  2001-2002.                                                                  


                                                                                

1       (2) A comprehensive compensatory program funded under this                  

                                                                                

2   section  shall  may include an age-appropriate educational                  

                                                                                

3   curriculum, nutritional services, health screening for                      

                                                                                

4   participating children, a plan for parent and legal guardian                

                                                                                

5   involvement, and provision of referral services for families                

                                                                                

6   eligible for community social services.                                     

                                                                                

7       (3) In addition to the allocation under subsection (1),                     

                                                                                

8   from the general fund allocations under section 32a(1), there is           

                                                                                

9   allocated an amount not to exceed $200,000.00 for 2001-2002 for             

                                                                                

10  the purposes of subsection (2), and  from the general fund money            

                                                                                

11  allocated under section  32a  11, there is allocated an amount              

                                                                                

12  not to exceed $200,000.00  each fiscal year for 2002-2003 and               

                                                                                

13  for 2003-2004 for the purposes of subsection  (2)  (4).                     

                                                                                

14      (4)  (2)  From the general fund allocation in subsection                    

                                                                                

15  (1)  (3), there is allocated  each fiscal year for 2001-2002,              

                                                                                

16  for 2002-2003, and  for 2003-2004 an amount not to exceed                   

                                                                                

17  $200,000.00 for a competitive grant to continue a longitudinal              

                                                                                

18  evaluation of children who have participated in the Michigan                

                                                                                

19  school readiness program.                                                   

                                                                                

20      (5)  (3)  A district receiving a grant under this section may               

                                                                                

21  contract for the provision of the comprehensive compensatory                

                                                                                

22  program and retain for administrative services an amount equal to           

                                                                                

23  not more than 5% of the grant amount.                                       

                                                                                

24      (6)  (4)  A grant recipient receiving funds under this                      

                                                                                

25  section shall report to the department no later than October 15             

                                                                                

26  of each year the number of children participating in the program            

                                                                                

27  who meet the income or other eligibility criteria specified under           


    House Bill No. 4401 as amended June 18, 2003                     (1 of 2)   

1   section 37(3)(g) and the total number of children participating             

                                                                                

2   in the program.  For children participating in the program who              

                                                                                

3   meet the income or other eligibility criteria specified under               

                                                                                

4   section 37(3)(g), grant recipients shall also report whether or             

                                                                                

5   not a parent is available to provide care based on employment               

                                                                                

6   status.  For the purposes of this subsection, "employment status"           

                                                                                

7   shall be defined by the family independence agency in a manner              

                                                                                

8   consistent with maximizing the amount of spending that may be               

                                                                                

9   claimed for temporary assistance for needy families maintenance             

                                                                                

10  of effort purposes.                                                         

           <<Sec. 34.  (1) The early literacy intervention instructional technology fund is created within the state treasury.  The state treasurer may receive money or other assets from donations or any other source for deposit into the fund.  The state treasurer shall direct the investment of the fund.  The state treasurer shall credit to the fund interest and earnings from fund investments.  Money in the fund at the close of the fiscal year shall remain in the fund and shall not lapse to the general fund.  The department shall expend money from the fund, upon appropriation, only for the purposes of this section.

      (2) From the general fund appropriations in section 11, there is allocated the sum of $100.00 for 2003-2004 for deposit into the early literacy intervention instructional technology fund created under subsection (1).

      (3) The department shall allocate money from the early literacy intervention instructional technology fund for pilot grants to districts for software-based early literacy intervention instructional technology programs.  The programs may be operated by the district or by another entity under contract with the district.  The grants shall be awarded on a competitive basis to districts to increase the literacy skills and reading abilities of pupils in grades K to 3.

    (4) The department shall prescribe the form and manner of applications for grants under this section and shall determine the amount of grants under this section.>>                                                                      

11      Sec. 38.  The maximum number of prekindergarten children                    

                                                                                

12  construed to be in need of special readiness assistance under               

                                                                                

13  section 32d shall be calculated for each district in the                    

                                                                                

14  following manner:  one-half of the percentage of the district's             

                                                                                

15  pupils in grades 1-5 who are eligible for free lunch, as                    

                                                                                

16  determined by the district's October count in the  immediately              

                                                                                

17  preceding  school year 2 years before the fiscal year for which             

                                                                                

18  the calculation is made under the Richard B. Russell national               

                                                                                

19  school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to              

                                                                                

20  1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769, 1769b to 1769c,             

                                                                                

21  and 1769f to 1769h, as reported to the department not later than            

                                                                                

22  December 31 of the  immediately preceding  fiscal year 2 years              

                                                                                

23  before the fiscal year for which the calculation is made, shall             

                                                                                

24  be multiplied by the average kindergarten enrollment of the                 

                                                                                

25  district on the pupil membership count day of the 2 immediately             

                                                                                

26  preceding years.                                                            

                                                                                

27      Sec. 39a.  (1) From the appropriation in section 11, there                  


                                                                                

1   is allocated  each fiscal year for 2002-2003 and  for 2003-2004             

                                                                                

2   to districts, intermediate districts, and other eligible entities           

                                                                                

3   all available federal funding, estimated at  $634,919,400.00 each           

                                                                                

4   fiscal year,  $639,068,800.00, for the federal programs under the           

                                                                                

5   no child left behind act of 2001, Public Law 107-110, 115                   

                                                                                

6   Stat. 1425.  These funds are allocated for each fiscal year as              

                                                                                

7   follows:                                                                    

                                                                                

8       (a) An amount estimated at $1,666,300.00 for community                      

                                                                                

9   service state grants, funded from DED-OESE, community service               

                                                                                

10  state grant funds.                                                          

                                                                                

11      (b) An amount estimated at  $15,520,100.00  $15,946,200.00 to               

                                                                                

12  provide students with drug- and violence-prevention programs and            

                                                                                

13  to implement strategies to improve school safety, funded from               

                                                                                

14  DED-OESE, drug-free schools and communities funds.                          

                                                                                

15      (c) An amount estimated at  $22,572,000.00  $11,863,000.00                  

                                                                                

16  for the purpose of improving teaching and learning through a more           

                                                                                

17  effective use of technology, funded from DED-OESE, educational              

                                                                                

18  technology state grant funds.                                               

                                                                                

19      (d) An amount estimated at  $104,568,800.00  $105,570,600.00                

                                                                                

20  for the purpose of preparing, training, and recruiting                      

                                                                                

21  high-quality teachers and class size reduction, funded from                 

                                                                                

22  DED-OESE, improving teacher quality funds.                                  

                                                                                

23      (e) An amount estimated at $4,647,700.00 for programs to                    

                                                                                

24  teach English to limited English proficient (LEP) children,                 

                                                                                

25  funded from DED-OESE, language acquisition state grant funds.               

                                                                                

26      (f) An amount estimated at $8,550,000.00 for the Michigan                   

                                                                                

27  charter school subgrant program, funded from DED-OESE, charter              


                                                                                

1   school funds.                                                               

                                                                                

2       (g) An amount estimated at $247,600.00 for Michigan model                   

                                                                                

3   partnership for character education programs, funded from                   

                                                                                

4   DED-OESE, title X, fund for improvement of education funds.                 

                                                                                

5       (h) An amount estimated at $1,909,600.00 for rural and low                  

                                                                                

6   income schools, funded from DED-OESE, rural and low income school           

                                                                                

7   funds.                                                                      

                                                                                

8       (h)  (i)  An amount estimated at $11,123,700.00 to help                     

                                                                                

9   schools develop and implement comprehensive school reform                   

                                                                                

10  programs, funded from DED-OESE, title I and title X,                        

                                                                                

11  comprehensive school reform funds.                                          

                                                                                

12      (i)  (j)  An amount estimated at  $401,388,600.00                           

                                                                                

13  $427,000,000.00 to provide supplemental programs to enable                  

                                                                                

14  educationally disadvantaged children to meet challenging academic           

                                                                                

15  standards, funded from DED-OESE, title I, disadvantaged children            

                                                                                

16  funds.                                                                      

                                                                                

17      (j)  (k)  An amount estimated at $8,246,600.00 for the                      

                                                                                

18  purpose of providing unified family literacy programs, funded               

                                                                                

19  from DED-OESE, title I, even start funds.                                   

                                                                                

20      (k)  (l)  An amount estimated at $8,953,100.00 for the                      

                                                                                

21  purpose of identifying and serving migrant children, funded from            

                                                                                

22  DED-OESE, title I, migrant education funds.                                 

                                                                                

23                                                                               (l)  (m)  An amount estimated at $22,779,000.00 to promote                           

                                                                                

24  high-quality school reading instruction for grades K-3, funded              

                                                                                

25  from DED-OESE, title I, reading first state grant funds.                    

                                                                                

26      (m)  (n)  An amount estimated at  $11,585,100.00                            

                                                                                

27  $12,475,000.00 for the purpose of implementing innovative                   


                                                                                

1   strategies for improving student achievement, funded from                   

                                                                                

2   DED-OESE, title VI, innovative strategies funds.                            

                                                                                

3       (o) An amount estimated at $11,161,200.00 for the purpose of                

                                                                                

4   providing high-quality extended learning opportunities, after               

                                                                                

5   school and during the summer, for children in low-performing                

                                                                                

6   schools, funded from DED-OESE, twenty-first century community               

                                                                                

7   learning center funds.                                                      

                                                                                

8       (2) From the federal funds appropriation in section 11, there               

                                                                                

9   is allocated  each fiscal year for 2002-2003 and  for 2003-2004             

                                                                                

10  to districts, intermediate districts, and other eligible entities           

                                                                                

11  all available federal funding, estimated at  $6,495,300.00                  

                                                                                

12  $5,421,800.00 each fiscal year, for the following programs that             

                                                                                

13  are funded by federal grants:                                               

                                                                                

14      (a) An amount estimated at $600,000.00 for acquired                         

                                                                                

15  immunodeficiency syndrome education grants, funded from                     

                                                                                

16  HHS-center for disease control, AIDS funding.                               

                                                                                

17      (b) An amount estimated at $976,000.00 for at-risk child                    

                                                                                

18  care, funded from HHS-ACF, at-risk child care funds.                        

                                                                                

19      (b)  (c)  An amount estimated at $1,553,500.00 for emergency                

                                                                                

20  services to immigrants, funded from DED-OBEMLA, emergency                   

                                                                                

21  immigrant education assistance funds.                                       

                                                                                

22      (c)  (d)  An amount estimated at $1,468,300.00 to provide                   

                                                                                

23  services to homeless children and youth, funded from DED-OVAE,              

                                                                                

24  homeless children and youth funds.                                          

                                                                                

25      (d)  (e)  An amount estimated at  $400,000.00  $1,000,000.00                

                                                                                

26  for refugee children school impact grants, funded from HHS-ACF,             

                                                                                

27  refugee children school impact funds.                                       


                                                                                

1       (f) An amount estimated at $857,500.00 for school-age child                 

                                                                                

2   care grants, funded from HHS-ACF, dependent care block grant                

                                                                                

3   funds.                                                                      

                                                                                

4       (e)  (g)  An amount estimated at  $640,000.00  $800,000.00                  

                                                                                

5   for serve America grants, funded from the corporation for                   

                                                                                

6   national and community service funds.                                       

                                                                                

7       (3) All federal funds allocated under this section shall be                 

                                                                                

8   distributed in accordance with federal law and with flexibility             

                                                                                

9   provisions outlined in Public Law 107-116, 115 Stat. 2177 and in            

                                                                                

10  the education flexibility partnership act of 1999, Public Law               

                                                                                

11  106-25, 113 Stat. 41.  Notwithstanding section 17b, payments of             

                                                                                

12  federal funds to districts, intermediate districts, and other               

                                                                                

13  eligible entities under this section shall be paid on a schedule            

                                                                                

14  determined by the department.                                               

                                                                                

15      (4) As used in this section:                                                

                                                                                

16      (a) "DED" means the United States department of education.                  

                                                                                

17      (b) "DED-OBEMLA" means the DED office of bilingual education                

                                                                                

18  and minority languages affairs.                                             

                                                                                

19      (c) "DED-OESE" means the DED office of elementary and                       

                                                                                

20  secondary education.                                                        

                                                                                

21      (d) "DED-OVAE" means the DED office of vocational and adult                 

                                                                                

22  education.                                                                  

                                                                                

23      (e) "HHS" means the United States department of health and                  

                                                                                

24  human services.                                                             

                                                                                

25      (f) "HHS-ACF" means the HHS administration for children and                 

                                                                                

26  families.                                                                   

                                                                                

27      Sec. 41.  From the appropriation in section 11, there is                    


    House Bill No. 4401 as amended June 18, 2003                                

1   allocated an amount not to exceed  $4,212,000.00 each fiscal year           

                                                                                

2   for 2001-2002, for 2002-2003, and  <<$3,067,800.00>> for 2003-2004 to       

                                                                                

3   applicant districts and intermediate districts offering programs            

                                                                                

4   of bilingual instruction for pupils of limited English-speaking             

                                                                                

5   ability under section 1153 of the revised school code,                      

                                                                                

6   MCL 380.1153.  In addition, from the federal funds appropriated             

                                                                                

7   in section 11, there is allocated an amount estimated at                    

                                                                                

8   $1,232,100.00 from the United States department of                          

                                                                                

9   education-office of elementary and secondary education, language            

                                                                                

10  acquisition state grant funds. Reimbursement shall be on a per              

                                                                                

11  pupil basis and shall be based on the number of pupils of limited           

                                                                                

12  English-speaking ability in membership on the pupil membership              

                                                                                

13  count day.  Funds allocated under this section shall be used                

                                                                                

14  solely for  bilingual  instruction in speaking, reading, writing,           

                                                                                

15  or comprehension of  pupils of limited English-speaking ability             

                                                                                

16  English.  A pupil shall not be counted under this section or                

                                                                                

17  instructed in a program under this section for more than 3                  

                                                                                

18  years.                                                                      

                                                                                

19      Sec. 51a.  (1) From the appropriation in section 11, there                  

                                                                                

20  is allocated  for 2001-2002 an amount not to exceed                         

                                                                                

21  $796,401,900.00 from state sources and all available federal                

                                                                                

22  funding under sections 611 to 619 of part B of the individuals              

                                                                                

23  with disabilities education act, title VI of Public Law 91-230,             

                                                                                

24  20 U.S.C. 1411 to 1419, estimated at $203,000,000.00, plus any              

                                                                                

25  carryover federal funds from previous year appropriations; and              

                                                                                

26  there is allocated each fiscal year for 2002-2003 and  for                  

                                                                                

27  2003-2004 an amount not to exceed  $852,721,900.00                          


                                                                                

1   $878,200,000.00 from state sources and all available federal                

                                                                                

2   funding under sections 611 to 619 of part B of the individuals              

                                                                                

3   with disabilities education act, title VI of Public Law 91-230,             

                                                                                

4   20 U.S.C. 1411 to 1419, estimated at  $235,000,000.00 each fiscal           

                                                                                

5   year,  $285,000,000.00 plus any carryover federal funds from                

                                                                                

6   previous year appropriations.  The allocations under this                   

                                                                                

7   subsection are for the purpose of reimbursing districts and                 

                                                                                

8   intermediate districts for special education programs, services,            

                                                                                

9   and special education personnel as prescribed in article 3 of the           

                                                                                

10  revised school code, MCL 380.1701 to 380.1766; net tuition                  

                                                                                

11  payments made by intermediate districts to the Michigan schools             

                                                                                

12  for the deaf and blind; and special education programs and                  

                                                                                

13  services for pupils who are eligible for special education                  

                                                                                

14  programs and services according to statute or rule.  For meeting            

                                                                                

15  the costs of special education programs and services not                    

                                                                                

16  reimbursed under this article, a district or intermediate                   

                                                                                

17  district may use money in general funds or special education                

                                                                                

18  funds, not otherwise restricted, or contributions from districts            

                                                                                

19  to intermediate districts, tuition payments, gifts and                      

                                                                                

20  contributions from individuals, or federal funds that may be                

                                                                                

21  available for this purpose, as determined by the intermediate               

                                                                                

22  district plan prepared pursuant to article 3 of the revised                 

                                                                                

23  school code, MCL 380.1701 to 380.1766.  All federal funds                   

                                                                                

24  allocated under this section in excess of those allocated under             

                                                                                

25  this section for  2001-2002  2002-2003 may be distributed in                

                                                                                

26  accordance with  34 C.F.R. 300.234 and section 613(a)(2)(D) of              

                                                                                

27  part B of title VI  the flexible funding provisions of the                  


                                                                                

1   individuals with disabilities education act, title VI of Public             

                                                                                

2   Law 91-230,  20 U.S.C.  1413  including, but not limited to, 34             

                                                                                

3   C.F.R. 300.234 and 300.235.  Notwithstanding section 17b,                   

                                                                                

4   payments of federal funds to districts, intermediate districts,             

                                                                                

5   and other eligible entities under this section shall be paid on a           

                                                                                

6   schedule determined by the department.                                      

                                                                                

7       (2) From the funds allocated under subsection (1), there is                 

                                                                                

8   allocated  each fiscal year for 2001-2002, for 2002-2003, and               

                                                                                

9   for 2003-2004 the amount necessary, estimated at  $139,200,000.00           

                                                                                

10  for 2001-2002 and $149,500,000.00 each fiscal year for 2002-2003            

                                                                                

11  and  $159,517,000.00 for 2003-2004, for payments toward                     

                                                                                

12  reimbursing districts and intermediate districts for 28.6138% of            

                                                                                

13  total approved costs of special education, excluding costs                  

                                                                                

14  reimbursed under section 53a, and 70.4165% of total approved                

                                                                                

15  costs of special education transportation.  Allocations under               

                                                                                

16  this subsection shall be made as follows:                                   

                                                                                

17      (a) The initial amount allocated to a district under this                   

                                                                                

18  subsection toward fulfilling the specified percentages shall be             

                                                                                

19  calculated by multiplying the district's special education pupil            

                                                                                

20  membership, excluding pupils described in subsection (12), times            

                                                                                

21  the sum of the foundation allowance under section 20 of the                 

                                                                                

22  pupil's district of residence plus the amount of the district's             

                                                                                

23  per pupil allocation under section 20j(2), not to exceed                    

                                                                                

24  $6,500.00 adjusted by the dollar amount of the difference between           

                                                                                

25  the basic foundation allowance under section 20 for the current             

                                                                                

26  fiscal year and $5,000.00 minus $200.00, or, for a special                  

                                                                                

27  education pupil in membership in a district that is a public                


                                                                                

1   school academy or university school, times an amount equal to the           

                                                                                

2   amount per membership pupil calculated under section 20(6).  For            

                                                                                

3   an intermediate district, the amount allocated under this                   

                                                                                

4   subdivision toward fulfilling the specified percentages shall be            

                                                                                

5   an amount per special education membership pupil, excluding                 

                                                                                

6   pupils described in subsection (12), and shall be calculated in             

                                                                                

7   the same manner as for a district, using the foundation allowance           

                                                                                

8   under section 20 of the pupil's district of residence, not to               

                                                                                

9   exceed $6,500.00 adjusted by the dollar amount of the difference            

                                                                                

10  between the basic foundation allowance under section 20 for the             

                                                                                

11  current fiscal year and $5,000.00 minus $200.00, and that                   

                                                                                

12  district's per pupil allocation under section 20j(2).   However,            

                                                                                

13  beginning in 2002-2003, the $6,500.00 amount prescribed in this             

                                                                                

14  subdivision shall be adjusted each year by an amount equal to the           

                                                                                

15  dollar amount of the difference between the basic foundation                

                                                                                

16  allowance for the current state fiscal year and $5,000.00, minus            

                                                                                

17  $200.00.                                                                    

                                                                                

18      (b) After the allocations under subdivision (a), districts                  

                                                                                

19  and intermediate districts for which the payments under                     

                                                                                

20  subdivision (a) do not fulfill the specified percentages shall be           

                                                                                

21  paid the amount necessary to achieve the specified percentages              

                                                                                

22  for the district or intermediate district.                                  

                                                                                

23      (3) From the funds allocated under subsection (1), there is                 

                                                                                

24  allocated  each fiscal year for 2001-2002, for 2002-2003, and               

                                                                                

25  for 2003-2004 the amount necessary, estimated at  $2,000,000.00             

                                                                                

26  each fiscal year  $2,600,000.00, to make payments to districts              

                                                                                

27  and intermediate districts under this subsection.  If the amount            


                                                                                

1   allocated to a district or intermediate district for a fiscal               

                                                                                

2   year under subsection (2)(b) is less than the sum of the amounts            

                                                                                

3   allocated to the district or intermediate district for 1996-97              

                                                                                

4   under sections 52 and 58, there is allocated to the district or             

                                                                                

5   intermediate district for the fiscal year an amount equal to that           

                                                                                

6   difference, adjusted by applying the same proration factor that             

                                                                                

7   was used in the distribution of funds under section 52 in 1996-97           

                                                                                

8   as adjusted to the district's or intermediate district's                    

                                                                                

9   necessary costs of special education used in calculations for the           

                                                                                

10  fiscal year.  This adjustment is to reflect reductions in special           

                                                                                

11  education program operations between 1996-97 and subsequent                 

                                                                                

12  fiscal years.  Adjustments for reductions in special education              

                                                                                

13  program operations shall be made in a manner determined by the              

                                                                                

14  department and shall include adjustments for program shifts.                

                                                                                

15      (4) If the department determines that the sum of the amounts                

                                                                                

16  allocated for a fiscal year to a district or intermediate                   

                                                                                

17  district under subsection (2)(a) and (b) is not sufficient to               

                                                                                

18  fulfill the specified percentages in subsection (2), then the               

                                                                                

19  shortfall shall be paid to the district or intermediate district            

                                                                                

20  during the fiscal year beginning on the October 1 following the             

                                                                                

21  determination and payments under subsection (3) shall be adjusted           

                                                                                

22  as necessary.  If the department determines that the sum of the             

                                                                                

23  amounts allocated for a fiscal year to a district or intermediate           

                                                                                

24  district under subsection (2)(a) and (b) exceeds the sum of the             

                                                                                

25  amount necessary to fulfill the specified percentages in                    

                                                                                

26  subsection (2), then the department shall deduct the amount of              

                                                                                

27  the excess from the district's or intermediate district's                   


                                                                                

1   payments under this act for the fiscal year beginning on the                

                                                                                

2   October 1 following the determination and payments under                    

                                                                                

3   subsection (3) shall be adjusted as necessary.  However, if the             

                                                                                

4   amount allocated under subsection (2)(a) in itself exceeds the              

                                                                                

5   amount necessary to fulfill the specified percentages in                    

                                                                                

6   subsection (2), there shall be no deduction under this                      

                                                                                

7   subsection.                                                                 

                                                                                

8       (5) State funds shall be allocated on a total approved cost                 

                                                                                

9   basis.  Federal funds shall be allocated under applicable federal           

                                                                                

10  requirements, except that an amount not to exceed $3,500,000.00             

                                                                                

11  each fiscal year  may be allocated by the department  for                  

                                                                                

12  2001-2002, for 2002-2003, and  for 2003-2004 to districts or                

                                                                                

13  intermediate districts on a competitive grant basis for programs,           

                                                                                

14  equipment, and services that the department determines to be                

                                                                                

15  designed to benefit or improve special education on a statewide             

                                                                                

16  scale.                                                                      

                                                                                

17      (6) From the amount allocated in subsection (1), there is                   

                                                                                

18  allocated an amount not to exceed $2,200,000.00  each fiscal year           

                                                                                

19  for 2001-2002, for 2002-2003, and  for 2003-2004 to reimburse               

                                                                                

20  100% of the net increase in necessary costs incurred by a                   

                                                                                

21  district or intermediate district in implementing the revisions             

                                                                                

22  in the administrative rules for special education that became               

                                                                                

23  effective on July 1, 1987.  As used in this subsection, "net                

                                                                                

24  increase in necessary costs" means the necessary additional costs           

                                                                                

25  incurred solely because of new or revised requirements in the               

                                                                                

26  administrative rules minus cost savings permitted in implementing           

                                                                                

27  the revised rules.  Net increase in necessary costs shall be                


                                                                                

1   determined in a manner specified by the department.                         

                                                                                

2       (7) For purposes of this article, all of the following                      

                                                                                

3   apply:                                                                      

                                                                                

4       (a) "Total approved costs of special education" shall be                    

                                                                                

5   determined in a manner specified by the department and may                  

                                                                                

6   include indirect costs, but shall not exceed 115% of approved               

                                                                                

7   direct costs for section 52 and section 53a programs.  The total            

                                                                                

8   approved costs include salary and other compensation for all                

                                                                                

9   approved special education personnel for the program, including             

                                                                                

10  payments for social security and medicare and public school                 

                                                                                

11  employee retirement system contributions.  The total approved               

                                                                                

12  costs do not include salaries or other compensation paid to                 

                                                                                

13  administrative personnel who are not special education personnel            

                                                                                

14  as defined in section 6 of the revised school code, MCL 380.6.              

                                                                                

15  Costs reimbursed by federal funds, other than those federal funds           

                                                                                

16  included in the allocation made under this article, are not                 

                                                                                

17  included.  Special education approved personnel not utilized full           

                                                                                

18  time in the evaluation of students or in the delivery of special            

                                                                                

19  education programs, ancillary, and other related services shall             

                                                                                

20  be reimbursed under this section only for that portion of time              

                                                                                

21  actually spent providing these programs and services, with the              

                                                                                

22  exception of special education programs and services provided to            

                                                                                

23  youth placed in child caring institutions or juvenile detention             

                                                                                

24  programs approved by the department to provide an on-grounds                

                                                                                

25  education program.                                                          

                                                                                

26      (b) Reimbursement for ancillary and other related services,                 

                                                                                

27  as defined by  R 340.1701  R 340.1701c of the Michigan                      


                                                                                

1   administrative code, shall not be provided when those services              

                                                                                

2   are covered by and available through private group health                   

                                                                                

3   insurance carriers or federal reimbursed program sources unless             

                                                                                

4   the department and district or intermediate district agree                  

                                                                                

5   otherwise and that agreement is approved by the state budget                

                                                                                

6   director.  Expenses, other than the incidental expense of filing,           

                                                                                

7   shall not be borne by the parent.  In addition, the filing of               

                                                                                

8   claims shall not delay the education of a pupil.  A district or             

                                                                                

9   intermediate district shall be responsible for payment of a                 

                                                                                

10  deductible amount and for an advance payment required until the             

                                                                                

11  time a claim is paid.                                                       

                                                                                

12      (8) From the allocation in subsection (1), there is allocated               

                                                                                

13  each fiscal year for 2001-2002, for 2002-2003, and  for                    

                                                                                

14  2003-2004 an amount not to exceed $15,313,900.00  each fiscal               

                                                                                

15  year  to intermediate districts.  The payment under this                    

                                                                                

16  subsection to each intermediate district shall be equal to the              

                                                                                

17  amount of the 1996-97 allocation to the intermediate district               

                                                                                

18  under subsection (6) of this section as in effect for 1996-97.              

                                                                                

19      (9) A pupil who is enrolled in a full-time special education                

                                                                                

20  program conducted or administered by an intermediate district or            

                                                                                

21  a pupil who is enrolled in the Michigan schools for the deaf and            

                                                                                

22  blind shall not be included in the membership count of a                    

                                                                                

23  district, but shall be counted in membership in the intermediate            

                                                                                

24  district of residence.                                                      

                                                                                

25      (10) Special education personnel transferred from 1 district                

                                                                                

26  to another to implement the revised school code shall be entitled           

                                                                                

27  to the rights, benefits, and tenure to which the person would               


                                                                                

1   otherwise be entitled had that person been employed by the                  

                                                                                

2   receiving district originally.                                              

                                                                                

3       (11) If a district or intermediate district uses money                      

                                                                                

4   received under this section for a purpose other than the purpose            

                                                                                

5   or purposes for which the money is allocated, the department may            

                                                                                

6   require the district or intermediate district to refund the                 

                                                                                

7   amount of money received.  Money that is refunded shall be                  

                                                                                

8   deposited in the state treasury to the credit of the state school           

                                                                                

9   aid fund.                                                                   

                                                                                

10      (12) From the funds allocated in subsection (1), there is                   

                                                                                

11  allocated  each fiscal year for 2001-2002, for 2002-2003, and               

                                                                                

12  for 2003-2004 the amount necessary, estimated at  $7,200,000.00             

                                                                                

13  each fiscal year  $6,300,000.00, to pay the foundation allowances           

                                                                                

14  for pupils described in this subsection.  The allocation to a               

                                                                                

15  district under this subsection shall be calculated by multiplying           

                                                                                

16  the number of pupils described in this subsection who are counted           

                                                                                

17  in membership in the district times the sum of the foundation               

                                                                                

18  allowance under section 20 of the pupil's district of residence             

                                                                                

19  plus the amount of the district's per pupil allocation under                

                                                                                

20  section 20j(2), not to exceed $6,500.00 adjusted by the dollar              

                                                                                

21  amount of the difference between the basic foundation allowance             

                                                                                

22  under section 20 for the current fiscal year and $5,000.00 minus            

                                                                                

23  $200.00, or, for a pupil described in this subsection who is                

                                                                                

24  counted in membership in a district that is a public school                 

                                                                                

25  academy or university school, times an amount equal to the amount           

                                                                                

26  per membership pupil under section 20(6).  The allocation to an             

                                                                                

27  intermediate district under this subsection shall be calculated             


                                                                                

1   in the same manner as for a district, using the foundation                  

                                                                                

2   allowance under section 20 of the pupil's district of residence,            

                                                                                

3   not to exceed $6,500.00 adjusted by the dollar amount of the                

                                                                                

4   difference between the basic foundation allowance under section             

                                                                                

5   20 for the current fiscal year and $5,000.00 minus $200.00, and             

                                                                                

6   that district's per pupil allocation under section 20j(2).                  

                                                                                

7   However, beginning in 2002-2003, the $6,500.00 amount prescribed           

                                                                                

8   in this subsection shall be adjusted each year by an amount equal           

                                                                                

9   to the dollar amount of the difference between the basic                    

                                                                                

10  foundation allowance for the current state fiscal year and                  

                                                                                

11  $5,000.00, minus $200.00.  This subsection applies to all of the            

                                                                                

12  following pupils:                                                           

                                                                                

13      (a) Pupils described in section 53a.                                        

                                                                                

14      (b) Pupils counted in membership in an intermediate district                

                                                                                

15  who are not special education pupils and are served by the                  

                                                                                

16  intermediate district in a juvenile detention or child caring               

                                                                                

17  facility.                                                                   

                                                                                

18      (c) Emotionally impaired pupils counted in membership by an                 

                                                                                

19  intermediate district and provided educational services by the              

                                                                                

20  department of community health.                                             

                                                                                

21      (13) After payments under subsections (2) and (12) and                      

                                                                                

22  section 51c, the remaining expenditures from the allocation in              

                                                                                

23  subsection (1) shall be made in the following order:                        

                                                                                

24      (a) 100% of the reimbursement required under section 53a.                   

                                                                                

25      (b) 100% of the reimbursement required under subsection (6).                

                                                                                

26      (c) 100% of the payment required under section 54.                          

                                                                                

27      (d) 100% of the payment required under subsection (3).                      


                                                                                

1       (e) 100% of the payment required under subsection (8).                      

                                                                                

2       (f) 100% of the payments under section 56.                                  

                                                                                

3       (14) The allocations under subsection (2), subsection (3),                  

                                                                                

4   and subsection (12) shall be allocations to intermediate                    

                                                                                

5   districts only and shall not be allocations to districts, but               

                                                                                

6   instead shall be calculations used only to determine the state              

                                                                                

7   payments under section 22b.                                                 

                                                                                

8       Sec. 51c.  As required by the court in the consolidated                     

                                                                                

9   cases known as Durant v State of Michigan, Michigan supreme court           

                                                                                

10  docket no. 104458-104492, from the allocation under section                 

                                                                                

11  51a(1), there is allocated  each fiscal year for 2001-2002, for             

                                                                                

12  2002-2003, and  for 2003-2004 the amount necessary, estimated at            

                                                                                

13  $576,100,000.00 for 2001-2002 and $621,900,000.00 each fiscal              

                                                                                

14  year for 2002-2003 and for 2003-2004  $640,900,000.00, for                  

                                                                                

15  payments to reimburse districts for 28.6138% of total approved              

                                                                                

16  costs of special education excluding costs reimbursed under                 

                                                                                

17  section 53a, and 70.4165% of total approved costs of special                

                                                                                

18  education transportation.  Funds allocated under this section               

                                                                                

19  that are not expended in the state fiscal year for which they               

                                                                                

20  were allocated, as determined by the department, may be used to             

                                                                                

21  supplement the allocations under sections 22a and 22b in order to           

                                                                                

22  fully fund those calculated allocations for the same fiscal                 

                                                                                

23  year.                                                                       

                                                                                

24      Sec. 51d.  (1) From the federal funds appropriated in                       

                                                                                

25  section 11, there is allocated  each fiscal year for 2002-2003              

                                                                                

26  and  for 2003-2004 all available federal funding, estimated at              

                                                                                

27  $59,837,200.00 each fiscal year  $60,500,000.00, for special               


    House Bill No. 4401 as amended June 18, 2003                     (1 of 3)   

1   education programs that are funded by federal grants.  All                  

                                                                                

2   federal funds allocated under this section shall be distributed             

                                                                                

3   in accordance with federal law.  Notwithstanding section 17b,               

                                                                                

4   payments of federal funds to districts, intermediate districts,             

                                                                                

5   and other eligible entities under this section shall be paid on a           

                                                                                

6   schedule determined by the department.                                      

                                                                                

7       (2) From the federal funds allocated under subsection (1),                  

                                                                                

8   the following amounts are allocated  each fiscal year for                   

                                                                                

9   2002-2003 and  for 2003-2004:                                               

                                                                                

10      (a) An amount estimated at $16,000,000.00 for handicapped                   

                                                                                

11  infants and toddlers, funded from DED-OSERS, handicapped infants            

                                                                                

12  and toddlers funds.                                                         

                                                                                

13      (b) An amount estimated at $13,500,000.00 for preschool                     

                                                                                

14  grants (Public Law 94-142), funded from DED-OSERS, handicapped              

                                                                                

15  preschool incentive funds.                                                  

                                                                                

16      (c) An amount estimated at  $30,337,200.00  $31,000,000.00                  

                                                                                

17  for special education programs funded by DED-OSERS, handicapped             

                                                                                

18  program, individuals with disabilities act funds.                           

                                                                                

19      (3) As used in this section, "DED-OSERS" means the United                   

                                                                                

20  States department of education office of special education and              

                                                                                

21  rehabilitative services.                                                    

           <<Sec. 51e. (1) A district may apply to the department for a limited waiver of some or all of the rules regarding the allocation of special education funds and staff time in order to implement prereferral intervention pilot projects targeting pupils in grades K to 3 who are at-risk for academic problems.

      (2) A waiver granted under this section shall be effective for a duration of 1 to 3 years, as specified in the waiver. 

      (3) To qualify for a waiver under this section, a district shall apply to the department in the form and manner prescribed by the department. In the application, the district shall demonstrate all of the following:

      (a) That there will be collaboration between general education and special education staff in the implementation and operation of the project.

      (b) That the project will develop a continuum of literacy interventions aligned to pupil needs in the areas of vocabulary and oral language development, phonemic awareness, phonics and decoding, reading fluency, reading comprehension, or written expression.

      (c) That the requirements of subsection (4) will be met.

      (4) Special education funds allocated to a prereferral intervention pilot project under this section shall be used only to supplement and not to supplant existing general education, at-risk, and federal Title I programs.

      (5) If a district is granted a waiver under this section, all of the following apply:

      (a) The district may allocate up to 15% of the special education funds it receives under section 51a and up to 15% of its special education staff time at the pilot project site to prereferral activities, including, but not limited to, screening and assessment of pupils who are at-risk for reading problems, instructional interventions with at-risk general education pupils, staff training and professional development in scientifically-based reading interventions, and the purchase of materials required to implement planned interventions.

      (b) The district shall submit an annual report to the department in the form and manner prescribed by the department. The report shall contain at least all of the following:

      (i) The selection of valid and reliable assessment tools used to identify pupils who are at-risk for academic problems.

      (ii) The number of pupils in grades K to 3 identified as being at-risk for academic problems and the number receiving intervention under the program.

      (iii) The specific nature, duration, and intensity of the interventions under the program.

      (iv) A data-based analysis of pupil response to interventions under the program, including at least pre- and post-measures of reading achievement.

      (v) Data on the number of special education evaluations conducted at pilot project sites of pupils in grades K to 3 suspected of having learning disabilities and the number of those pupils found eligible for special education services as learning disabled, with the specific subcategory of eligibility. This part of the report shall also include referral, evaluation, and eligibility data for the 3-year period immediately preceding the implementation of the pilot project to compare with current-year data.

      (c) The district shall not refer pupils in grades K to 3 for special education evaluation for a suspected learning disability unless 1 of the following is met:

      (i) The pilot project staff determines that long-term special education support may be indicated because the pupil has had a poor response to intervention by a certified special education teacher and the intervention has been of sufficient intensity and duration to expect improvement.

      (ii) The evaluation is requested by the pupil's parent or legal guardian or is otherwise required by law.

    (6) In addition to the requirements under subsection (3), to qualify for a waiver under this section, a district shall submit to the department, in the form and manner prescribed by the department, a resolution of the district's board waiving any claim or potential claim it may have due to the operation of this section that relates to the amount of special education funding the district is, or may have been, entitled to receive under this act or any other source of state funding by reason of the application of section 29 of article IX of the state constitution of 1963.>>                                                         

22      Sec. 53a.  (1) For districts, reimbursement for pupils                      

                                                                                

23  described in subsection (2), reimbursement shall be 100% of the             

                                                                                

24  total approved costs of operating special education programs and            

                                                                                

25  services approved by the department and included in the                     

                                                                                

26  intermediate district plan adopted pursuant to article 3 of the             

                                                                                

27  revised school code, MCL 380.1701 to 380.1766, minus the                    


                                                                                

1   district's foundation allowance calculated under section 20, and            

                                                                                

2   minus the amount calculated for the district under section 20j.             

                                                                                

3   For intermediate districts, reimbursement for pupils described in           

                                                                                

4   section (2) shall be calculated in the same manner as for a                 

                                                                                

5   district, using the foundation allowance under section 20 of the            

                                                                                

6   pupil's district of residence, not to exceed $6,500.00 adjusted             

                                                                                

7   by the dollar amount of the difference between the basic                    

                                                                                

8   foundation allowance under section 20 for the current fiscal year           

                                                                                

9   and  the amount calculated for that district  $5,000.00, minus              

                                                                                

10  $200.00, and under section 20j.   However, beginning in                     

                                                                                

11  2002-2003, the $6,500.00 amount prescribed in this subsection               

                                                                                

12  shall be adjusted each year by an amount equal to the dollar                

                                                                                

13  amount of the difference between the basic foundation allowance             

                                                                                

14  for the current state fiscal year and $5,000.00, minus $200.00.             

                                                                                

15      (2) Reimbursement under subsection (1) is for the following                 

                                                                                

16  special education pupils:                                                   

                                                                                

17      (a) Pupils assigned to a district or intermediate district                  

                                                                                

18  through the community placement program of the courts or a state            

                                                                                

19  agency, if the pupil was a resident of another intermediate                 

                                                                                

20  district at the time the pupil came under the jurisdiction of the           

                                                                                

21  court or a state agency.                                                    

                                                                                

22      (b) Pupils who are residents of institutions operated by the                

                                                                                

23  department of community health.                                             

                                                                                

24      (c) Pupils who are former residents of department of                        

                                                                                

25  community health institutions for the developmentally disabled              

                                                                                

26  who are placed in community settings other than the pupil's                 

                                                                                

27  home.                                                                       


                                                                                

1       (d) Pupils enrolled in a department-approved on-grounds                     

                                                                                

2   educational program longer than 180 days, but not longer than 233           

                                                                                

3   days, at a residential child care institution, if the child care            

                                                                                

4   institution offered in 1991-92 an on-grounds educational program            

                                                                                

5   longer than 180 days but not longer than 233 days.                          

                                                                                

6       (e) Pupils placed in a district by a parent for the purpose                 

                                                                                

7   of seeking a suitable home, if the parent does not reside in the            

                                                                                

8   same intermediate district as the district in which the pupil is            

                                                                                

9   placed.                                                                     

                                                                                

10      (3) Only those costs that are clearly and directly                          

                                                                                

11  attributable to educational programs for pupils described in                

                                                                                

12  subsection (2), and that would not have been incurred if the                

                                                                                

13  pupils were not being educated in a district or intermediate                

                                                                                

14  district, are reimbursable under this section.                              

                                                                                

15      (4) The costs of transportation shall be funded under this                  

                                                                                

16  section and shall not be reimbursed under section 58.                       

                                                                                

17      (5) Not more than  $14,800,000.00 each fiscal year for                      

                                                                                

18  2001-2002, for 2002-2003, and for 2003-2004  $12,800,000.00 of              

                                                                                

19  the allocation for 2003-2004 in section 51a(1) shall be allocated           

                                                                                

20  under this section.                                                         

                                                                                

21      (6) From the allocation in subsection (5), there is                         

                                                                                

22  allocated each fiscal year for 2001-2002, for 2002-2003, and for            

                                                                                

23  2003-2004 an amount not to exceed $150,000.00 to an intermediate            

                                                                                

24  district that received at least $1,000,000.00 for 1999-2000 under           

                                                                                

25  subsection (4).                                                             

                                                                                

26      Sec. 54.  In addition to the aid received under section 52,                 

                                                                                

27  each intermediate district shall receive an amount per pupil for            


    House Bill No. 4401 as amended June 18, 2003                                

1   each pupil in attendance at the Michigan schools for the deaf and           

                                                                                

2   blind.  The amount shall be proportionate to the total                      

                                                                                

3   instructional cost at each school.  Not more than $1,688,000.00             

                                                                                

4   each fiscal year for 2001-2002, for 2002-2003, and for                     

                                                                                

5   2003-2004  of the allocation for 2003-2004 in section 51a(1)                

                                                                                

6   shall be allocated under this section.                                      

                                                                                

7       Sec.  55a.  From the general fund appropriation in section                  

                                                                                

8   11, there is allocated the amount of <<$150,000.00>> for 2003-2004 to       

                                                                                

9   Grand Valley state university for the purpose of providing grants           

                                                                                

10  to at least 1 center devoted to enhancing the skills of children            

                                                                                

11  with motor impairments.  To be eligible to receive a grant under            

                                                                                

12  this section, a center must provide children with motor                     

                                                                                

13  impairments and their families with an innovative, highly                   

                                                                                

14  successful educational program designed to improve the child's              

                                                                                

15  independence, self-esteem, and overall quality of life.                     

                                                                                

16      Sec. 56.  (1) For the purposes of this section:                             

                                                                                

17      (a) "Membership" means for a particular fiscal year the total               

                                                                                

18  membership for the immediately preceding fiscal year of the                 

                                                                                

19  intermediate district and the districts constituent to the                  

                                                                                

20  intermediate district.                                                      

                                                                                

21      (b) "Millage levied" means the millage levied for special                   

                                                                                

22  education pursuant to part 30 of the revised school code,                   

                                                                                

23  MCL 380.1711 to 380.1743, including a levy for debt service                 

                                                                                

24  obligations.                                                                

                                                                                

25      (c) "Taxable value" means the total taxable value of the                    

                                                                                

26  districts constituent to an intermediate district, except that if           

                                                                                

27  a district has elected not to come under part 30 of the revised             


                                                                                

1   school code, MCL 380.1711 to 380.1743, membership and taxable               

                                                                                

2   value of the district shall not be included in the membership and           

                                                                                

3   taxable value of the intermediate district.                                 

                                                                                

4       (2) From the allocation under section 51a(1), there is                      

                                                                                

5   allocated an amount not to exceed  $37,900,000.00 for 2001-2002             

                                                                                

6   and an amount not to exceed $38,120,000.00 each fiscal year for             

                                                                                

7   2002-2003 and  $36,881,100.00 for 2003-2004 to reimburse                    

                                                                                

8   intermediate districts levying millages for special education               

                                                                                

9   pursuant to part 30 of the revised school code, MCL 380.1711 to             

                                                                                

10  380.1743.  The purpose, use, and expenditure of the reimbursement           

                                                                                

11  shall be limited as if the funds were generated by these millages           

                                                                                

12  and governed by the intermediate district plan adopted pursuant             

                                                                                

13  to article 3 of the revised school code, MCL 380.1701 to                    

                                                                                

14  380.1766.  As a condition of receiving funds under this section,            

                                                                                

15  an intermediate district distributing any portion of special                

                                                                                

16  education millage funds to its constituent districts shall submit           

                                                                                

17  for departmental approval and implement a distribution plan.                

                                                                                

18      (3)  Reimbursement for those millages levied in 2000-2001                   

                                                                                

19  shall be made in 2001-2002 at an amount per 2000-2001 membership            

                                                                                

20  pupil computed by subtracting from $119,200.00 the 2000-2001                

                                                                                

21  taxable value behind each membership pupil and multiplying the              

                                                                                

22  resulting difference by the 2000-2001 millage levied.                       

                                                                                

23  Reimbursement for those millages levied in 2001-2002 shall be               

                                                                                

24  made in 2002-2003 at an amount per 2001-2002 membership pupil               

                                                                                

25  computed by subtracting from $125,900.00 the 2001-2002 taxable              

                                                                                

26  value behind each membership pupil and multiplying the resulting            

                                                                                

27  difference by the 2001-2002 millage levied.  Reimbursement for              


    House Bill No. 4401 as amended June 18, 2003                                

1   those millages levied in 2002-2003 shall be made in 2003-2004 at            

                                                                                

2   an amount per 2002-2003 membership pupil computed by subtracting            

                                                                                

3   from  $125,900.00  $132,275.00 the 2002-2003 taxable value behind           

                                                                                

4   each membership pupil and multiplying the resulting difference by           

                                                                                

5   the 2002-2003 millage levied.                                               

                                                                                

6       Sec. 57.  (1) From the appropriation in section 11, there is                

                                                                                

7   allocated an amount not to exceed  $600,000.00 each fiscal year             

                                                                                

8   for 2001-2002, for 2002-2003, and  <<$320,000.00>> for 2003-2004 to         

                                                                                

9   applicant intermediate districts that provide support services              

                                                                                

10  for the education of  gifted and talented  advanced and                     

                                                                                

11  accelerated pupils.  An intermediate district is entitled to 75%            

                                                                                

12  of the actual salary, but not to exceed $25,000.00 reimbursement            

                                                                                

13  for an individual salary, of a support services teacher approved            

                                                                                

14  by the department, and not to exceed $4,000.00 reimbursement for            

                                                                                

15  expenditures to support program costs, excluding in-county travel           

                                                                                

16  and salary, as approved by the department.                                  

                                                                                

17      (2) From the appropriation in section 11, there is allocated                

                                                                                

18  an amount not to exceed  $400,000.00 each fiscal year for                   

                                                                                

19  2001-2002, for 2002-2003, and  $0.00 for 2003-2004 to support               

                                                                                

20  part of the cost of summer institutes for  gifted and talented              

                                                                                

21  advanced and accelerated students.  This amount shall be                    

                                                                                

22  contracted to applicant intermediate districts in cooperation               

                                                                                

23  with a local institution of higher education and shall be                   

                                                                                

24  coordinated by the department.                                              

                                                                                

25      (3) From the appropriation in section 11, there is allocated                

                                                                                

26  an amount not to exceed  $4,000,000.00 each fiscal year for                 

                                                                                

27  2001-2002, for 2002-2003, and  <<$1,280,000.00>> for 2003-2004 for the      


                                                                                

1   development and operation of comprehensive programs for  gifted             

                                                                                

2   and talented  advanced and accelerated pupils.  An eligible                 

                                                                                

3   district or consortium of districts shall receive an amount not             

                                                                                

4   to exceed $100.00 per K-12 pupil for up to 5% of the district's             

                                                                                

5   or consortium's K-12 membership for the immediately preceding               

                                                                                

6   fiscal year with a minimum total grant of $6,000.00.  Funding               

                                                                                

7   shall be provided in the following order:  the per pupil                    

                                                                                

8   allotment, and then the minimum total grant of $6,000.00 to                 

                                                                                

9   individual districts.  An intermediate district may act as the              

                                                                                

10  fiscal agent for a consortium of districts.  In order to be                 

                                                                                

11  eligible for funding under this subsection, the district or                 

                                                                                

12  consortium of districts shall submit each year a current 3-year             

                                                                                

13  plan for operating a comprehensive program for  gifted and                  

                                                                                

14  talented  advanced and accelerated pupils and the district or               

                                                                                

15  consortium shall demonstrate to the department that the district            

                                                                                

16  or consortium will contribute matching funds of at least $50.00             

                                                                                

17  per K-12 pupil.  The plan or revised plan shall be developed in             

                                                                                

18  accordance with criteria established by the department and shall            

                                                                                

19  be submitted to the department for approval.  Within the                    

                                                                                

20  criteria, the department shall encourage the development of                 

                                                                                

21  consortia among districts of less than 5,000 memberships.                   

                                                                                

22      Sec. 61a.  (1) From the appropriation in section 11, there                  

                                                                                

23  is allocated an amount not to exceed  $31,027,600.00 each fiscal            

                                                                                

24  year for 2001-2002, for 2002-2003, and  $30,000,000.00 for                  

                                                                                

25  2003-2004 to reimburse on an added cost basis districts, except             

                                                                                

26  for a district that served as the fiscal agent for a vocational             

                                                                                

27  education consortium in the 1993-94 school year, and secondary              


                                                                                

1   area vocational-technical education centers for secondary-level             

                                                                                

2   vocational-technical education programs, including parenthood               

                                                                                

3   education programs, according to rules approved by the                      

                                                                                

4   superintendent.  Applications for participation in the programs             

                                                                                

5   shall be submitted in the form prescribed by the department.  The           

                                                                                

6   department shall determine the added cost for each                          

                                                                                

7   vocational-technical program area.  The allocation of added cost            

                                                                                

8   funds shall be based on the type of vocational-technical programs           

                                                                                

9   provided, the number of pupils enrolled, and the length of the              

                                                                                

10  training period provided, and shall not exceed 75% of the added             

                                                                                

11  cost of any program.  With the approval of the department, the              

                                                                                

12  board of a district maintaining a secondary vocational-technical            

                                                                                

13  education program may offer the program for the period from the             

                                                                                

14  close of the school year until September 1.  The program shall              

                                                                                

15  use existing facilities and shall be operated as prescribed by              

                                                                                

16  rules promulgated by the superintendent.                                    

                                                                                

17      (2) Except for a district that served as the fiscal agent for               

                                                                                

18  a vocational education consortium in the 1993-94 school year,               

                                                                                

19  districts and intermediate districts shall be reimbursed for                

                                                                                

20  local vocational administration, shared time vocational                     

                                                                                

21  administration, and career education planning district                      

                                                                                

22  vocational-technical administration.  The definition of what                

                                                                                

23  constitutes administration and reimbursement shall be pursuant to           

                                                                                

24  guidelines adopted by the superintendent.  Not more than                    

                                                                                

25  $800,000.00 of the allocation in subsection (1) shall be                    

                                                                                

26  distributed under this subsection.                                          

                                                                                

27      (3) From the allocation in subsection (1), there is allocated               


                                                                                

1   an amount not to exceed $388,700.00  each fiscal year  for                  

                                                                                

2   2003-2004 to intermediate districts with constituent districts              

                                                                                

3   that had combined state and local revenue per membership pupil in           

                                                                                

4   the 1994-95 state fiscal year of $6,500.00 or more, served as a             

                                                                                

5   fiscal agent for a state board designated area vocational                   

                                                                                

6   education center in the 1993-94 school year, and had an                     

                                                                                

7   adjustment made to their 1994-95 combined state and local revenue           

                                                                                

8   per membership pupil pursuant to section 20d.  The payment under            

                                                                                

9   this subsection to the intermediate district shall equal the                

                                                                                

10  amount of the allocation to the intermediate district for 1996-97           

                                                                                

11  under this subsection.                                                      

                                                                                

12      Sec. 62.  (1) For the purposes of this section:                             

                                                                                

13      (a) "Membership" means for a particular fiscal year the total               

                                                                                

14  membership for the immediately preceding fiscal year of the                 

                                                                                

15  intermediate district and the districts constituent to the                  

                                                                                

16  intermediate district or the total membership for the immediately           

                                                                                

17  preceding fiscal year of the area vocational-technical program.             

                                                                                

18      (b) "Millage levied" means the millage levied for area                      

                                                                                

19  vocational-technical education pursuant to sections 681 to 690 of           

                                                                                

20  the revised school code, MCL 380.681 to 380.690, including a levy           

                                                                                

21  for debt service obligations incurred as the result of borrowing            

                                                                                

22  for capital outlay projects and in meeting capital projects fund            

                                                                                

23  requirements of area vocational-technical education.                        

                                                                                

24      (c) "Taxable value" means the total taxable value of the                    

                                                                                

25  districts constituent to an intermediate district or area                   

                                                                                

26  vocational-technical education program, except that if a district           

                                                                                

27  has elected not to come under sections 681 to 690 of the revised            


                                                                                

1   school code, MCL 380.681 to 380.690, the membership and taxable             

                                                                                

2   value of that district shall not be included in the membership              

                                                                                

3   and taxable value of the intermediate district.  However, the               

                                                                                

4   membership and taxable value of a district that has elected not             

                                                                                

5   to come under sections 681 to 690 of the revised school code,               

                                                                                

6   MCL 380.681 to 380.690, shall be included in the membership and             

                                                                                

7   taxable value of the intermediate district if the district meets            

                                                                                

8   both of the following:                                                      

                                                                                

9                                                                                (i) The district operates the area vocational-technical                             

                                                                                

10  education program pursuant to a contract with the intermediate              

                                                                                

11  district.                                                                   

                                                                                

12      (ii) The district contributes an annual amount to the                        

                                                                                

13  operation of the program that is commensurate with the revenue              

                                                                                

14  that would have been raised for operation of the program if                 

                                                                                

15  millage were levied in the district for the program under                   

                                                                                

16  sections 681 to 690 of the revised school code, MCL 380.681 to              

                                                                                

17  380.690.                                                                    

                                                                                

18      (2) From the appropriation in section 11, there is allocated                

                                                                                

19  an amount not to exceed  $9,810,000.00 for 2001-2002 and an                 

                                                                                

20  amount not to exceed $9,860,000.00 each fiscal year for 2002-2003           

                                                                                

21  and  $9,800,000.00 for 2003-2004 to reimburse intermediate                  

                                                                                

22  districts and area vocational-technical education programs                  

                                                                                

23  established under section 690(3) of the revised school code,                

                                                                                

24  MCL 380.690, levying millages for area vocational-technical                 

                                                                                

25  education pursuant to sections 681 to 690 of the revised school             

                                                                                

26  code, MCL 380.681 to 380.690.  The purpose, use, and expenditure            

                                                                                

27  of the reimbursement shall be limited as if the funds were                  


                                                                                

1   generated by those millages.                                                

                                                                                

2       (3)  Reimbursement for the millages levied in 2000-2001 shall               

                                                                                

3   be made in 2001-2002 at an amount per 2000-2001 membership pupil            

                                                                                

4   computed by subtracting from $122,300.00 the 2000-2001 taxable              

                                                                                

5   value behind each membership pupil, and multiplying the resulting           

                                                                                

6   difference by the 2000-2001 millage levied.  Reimbursement for              

                                                                                

7   the millages levied in 2001-2002 shall be made in 2002-2003 at an           

                                                                                

8   amount per 2001-2002 membership pupil computed by subtracting               

                                                                                

9   from $130,200.00 the 2001-2002 taxable value behind each                    

                                                                                

10  membership pupil, and multiplying the resulting difference by the           

                                                                                

11  2001-2002 millage levied.  Reimbursement for the millages levied            

                                                                                

12  in 2002-2003 shall be made in 2003-2004 at an amount per                    

                                                                                

13  2002-2003 membership pupil computed by subtracting from                     

                                                                                

14  $130,200.00  $137,700.00 the 2002-2003 taxable value behind each           

                                                                                

15  membership pupil and multiplying the resulting difference by the            

                                                                                

16  2002-2003 millage levied.                                                   

                                                                                

17      Sec. 68.  (1) From the general fund appropriation in section                

                                                                                

18  11, there is allocated an amount not to exceed  $21,850,000.00              

                                                                                

19  each fiscal year for 2001-2002, for 2002-2003, and                          

                                                                                

20  $10,000,000.00 for 2003-2004 to be used to implement the Michigan           

                                                                                

21  career preparation system  in the corresponding school years  as            

                                                                                

22  provided under this section.  These funds may be used for the               

                                                                                

23  purposes of this section and for the purposes of former section             

                                                                                

24  67 as in effect for 2002-2003. In order to receive funds under              

                                                                                

25  this section, an eligible education agency shall be part of an              

                                                                                

26  approved regional career preparation plan under subsection (2)              

                                                                                

27  and shall agree to expend the funds required under this section             


                                                                                

1   in accordance with the regional career preparation plan.  Funds             

                                                                                

2   awarded under this section that are not expended in accordance              

                                                                                

3   with this section may be recovered by the department.                       

                                                                                

4       (2) In order to receive funding under this section, an                      

                                                                                

5   eligible education agency shall be a part of an approved 3-year             

                                                                                

6   regional career preparation plan that is consistent with the                

                                                                                

7   workforce development board's strategic plan and is as described            

                                                                                

8   in this subsection.  All of the following apply to a regional               

                                                                                

9   career preparation plan:                                                    

                                                                                

10      (a) A 3-year regional career preparation plan shall be                      

                                                                                

11  developed under subdivisions (b), (c), and (d) for all public               

                                                                                

12  education agencies participating as part of a regional career               

                                                                                

13  preparation system within the geographical boundaries of a                  

                                                                                

14  workforce development board, and revised annually.  If an                   

                                                                                

15  intermediate district is located within the geographical                    

                                                                                

16  boundaries of more than 1 workforce development board, the board            

                                                                                

17  of the intermediate district shall choose 1 workforce development           

                                                                                

18  board with which to align and shall notify the department of this           

                                                                                

19  choice not later than October 31, 1997.                                     

                                                                                

20      (b) The regional career preparation plan shall be developed                 

                                                                                

21  by representatives of the education advisory group of each                  

                                                                                

22  workforce development board in accordance with guidelines                   

                                                                                

23  developed under former section 67(5), and in accordance with                

                                                                                

24  subdivisions (d) and (e).  All of the following shall be                    

                                                                                

25  represented on each education advisory group:  workforce                    

                                                                                

26  development board members, other employers, labor, districts,               

                                                                                

27  intermediate districts, postsecondary institutions,                         


                                                                                

1   career/technical educators, parents of public school pupils, and            

                                                                                

2   academic educators.  The representatives of districts,                      

                                                                                

3   intermediate districts, and postsecondary institutions appointed            

                                                                                

4   to the education advisory group by the workforce development                

                                                                                

5   board shall be individuals designated by the board of the                   

                                                                                

6   district, intermediate district, or postsecondary institution.              

                                                                                

7       (c) By majority vote, the education advisory group may                      

                                                                                

8   nominate 1 education representative, who may or may not be a                

                                                                                

9   member of the education advisory group, for appointment to the              

                                                                                

10  workforce development board.  This education representative shall           

                                                                                

11  be in addition to existing education representation on the                  

                                                                                

12  workforce development board.  This education representative shall           

                                                                                

13  meet all workforce development board membership requirements.               

                                                                                

14      (d) The components of the regional career preparation plan                  

                                                                                

15  shall include, but are not limited to, all of the following:                

                                                                                

16                                                                               (i) The roles of districts, intermediate districts, advanced                        

                                                                                

17  career academies, postsecondary institutions, employers, labor              

                                                                                

18  representatives, and others in the career preparation system.               

                                                                                

19      (ii) Programs to be offered, including at least career                       

                                                                                

20  exploration activities, for middle school pupils.                           

                                                                                

21      (iii) Identification of integrated academic and technical                    

                                                                                

22  curriculum, including related professional development training             

                                                                                

23  for teachers.                                                               

                                                                                

24      (iv) Identification of work-based learning opportunities for                 

                                                                                

25  pupils and for teachers and other school personnel.                         

                                                                                

26      (v) Identification of testing and assessments that will be                  

                                                                                

27  used to measure pupil achievement.                                          


                                                                                

1       (vi) Identification of all federal, state, local, and private                

                                                                                

2   sources of funding available for career preparation activities in           

                                                                                

3   the region.                                                                 

                                                                                

4       (e) The education advisory group shall develop a 3-year                     

                                                                                

5   regional career preparation plan consistent with the workforce              

                                                                                

6   development board's strategic plan and submit the plan to the               

                                                                                

7   department for final approval.  The submission to the department            

                                                                                

8   shall also include statements signed by the chair of the                    

                                                                                

9   education advisory group and the chair of the workforce                     

                                                                                

10  development board certifying that the plan has been reviewed by             

                                                                                

11  each entity.  Upon department approval, all eligible education              

                                                                                

12  agencies designated in the regional career preparation plan as              

                                                                                

13  part of the career preparation delivery system are eligible for             

                                                                                

14  funding under this section.                                                 

                                                                                

15      (3) Funding under this section shall be distributed to                      

                                                                                

16  eligible education agencies for allowable costs defined in this             

                                                                                

17  subsection and identified as necessary costs for implementing a             

                                                                                

18  regional career preparation plan, as follows:                               

                                                                                

19      (a) The department shall rank all career clusters, including                

                                                                                

20  career exploration, guidance, and counseling.  Rank determination           

                                                                                

21  will be based on median salary data in career clusters and                  

                                                                                

22  employment opportunity data provided by the council for career              

                                                                                

23  preparation standards.  In addition, rank determination shall be            

                                                                                

24  based on placement data available for prior year graduates of the           

                                                                                

25  programs in the career clusters either in related careers or                

                                                                                

26  postsecondary education.  The procedure for ranking of career               

                                                                                

27  clusters shall be determined by the department.                             


                                                                                

1       (b) Allowable costs to be funded under this section shall be                

                                                                                

2   determined by the department.  Budgets submitted by eligible                

                                                                                

3   education agencies to the department in order to receive funding            

                                                                                

4   shall identify funds and in-kind contributions from the regional            

                                                                                

5   career education plan, excluding funds or in-kind contributions             

                                                                                

6   available as a result of funding received under section 61a,                

                                                                                

7   equal to at least 100% of anticipated funding under this                    

                                                                                

8   section.  Eligible categories of allowable costs are the                    

                                                                                

9   following:                                                                  

                                                                                

10                                                                               (i) Career exploration, guidance, and counseling.                                   

                                                                                

11      (ii) Curriculum development, including integration of                        

                                                                                

12  academic and technical content, and professional development for            

                                                                                

13  teachers directly related to career preparation.                            

                                                                                

14      (iii) Technology and equipment determined to be necessary.                   

                                                                                

15      (iv) Supplies and materials directly related to career                       

                                                                                

16  preparation programs.                                                       

                                                                                

17      (v) Work-based learning expenses for pupils, teachers, and                  

                                                                                

18  counselors.                                                                 

                                                                                

19      (vi) Evaluation, including career competency testing and peer                

                                                                                

20  review.                                                                     

                                                                                

21      (vii) Career placement services.                                             

                                                                                

22      (viii) Student leadership organizations integral to the                       

                                                                                

23  career preparation system.                                                  

                                                                                

24      (ix) Up to 10% of the allocation to an eligible education                    

                                                                                

25  agency may be expended for planning, coordination, direct                   

                                                                                

26  oversight, and accountability for the career preparation system.            

                                                                                

27      (c) The department shall calculate career preparation costs                 


                                                                                

1   per FTE for each career cluster, including career exploration,              

                                                                                

2   guidance, and counseling, by dividing the allowable costs for               

                                                                                

3   each career cluster by the prior year FTE enrollment for each               

                                                                                

4   career cluster.  Distribution to eligible education agencies                

                                                                                

5   shall be the product of 50% of career preparation costs per FTE             

                                                                                

6   times the current year FTE enrollment of each career cluster.               

                                                                                

7   This allocation shall be distributed to eligible education                  

                                                                                

8   agencies in decreasing order of the career cluster ranking                  

                                                                                

9   described in subdivision (a) until the money allocated for grant            

                                                                                

10  recipients in this section is distributed.  Beginning in                    

                                                                                

11  2001-2002, funds shall be distributed to eligible education                 

                                                                                

12  agencies according to workforce development board geographic area           

                                                                                

13  consistent with subsection (2)(a) based upon the proportion of              

                                                                                

14  each workforce development board area's K-12 public school                  

                                                                                

15  membership to the total state K-12 public school membership.                

                                                                                

16      (4) The department shall establish a review procedure for                   

                                                                                

17  assessing the career preparation system in each region.                     

                                                                                

18      (5) An education advisory group is responsible for assuring                 

                                                                                

19  the quality of the career preparation system.  An education                 

                                                                                

20  advisory group shall review the career preparation system in                

                                                                                

21  accordance with evaluation criteria established by the                      

                                                                                

22  department.                                                                 

                                                                                

23      (6) An education advisory group shall report its findings and               

                                                                                

24  recommendations for changes to the participating eligible                   

                                                                                

25  education agencies, the workforce development board, and the                

                                                                                

26  department.                                                                 

                                                                                

27      (7) The next revision of a regional career preparation plan                 


                                                                                

1   shall take into account the findings of the education advisory              

                                                                                

2   group in accordance with evaluation criteria established by the             

                                                                                

3   department in order for the affected education agencies to                  

                                                                                

4   receive continued funding under this section.                               

                                                                                

5       (8) As used in this section:                                                

                                                                                

6       (a) "Advanced career academy" means a career-technical                      

                                                                                

7   education program operated by a district, by an intermediate                

                                                                                

8   district, or by a public school academy, that applies for and               

                                                                                

9   receives advanced career academy designation from the                       

                                                                                

10  department.  To receive this designation, a career-technical                

                                                                                

11  education program shall meet criteria established by the                    

                                                                                

12  department, which criteria shall include at least all of the                

                                                                                

13  following:                                                                  

                                                                                

14                                                                               (i) Operation of programs for those career clusters                                 

                                                                                

15  identified by the department as being eligible for advanced                 

                                                                                

16  career academy status.                                                      

                                                                                

17      (ii) Involvement of employers in the design and                              

                                                                                

18  implementation of career-technical education programs.                      

                                                                                

19      (iii) A fully integrated program of academic and technical                   

                                                                                

20  education available to pupils.                                              

                                                                                

21      (iv) Demonstration of an established career preparation                      

                                                                                

22  system resulting in industry-validated career ladders for                   

                                                                                

23  graduates of the program, including, but not limited to, written            

                                                                                

24  articulation agreements with postsecondary institutions to allow            

                                                                                

25  pupils to receive advanced college placement and credit or                  

                                                                                

26  federally registered apprenticeships, as applicable.                        

                                                                                

27      (b) "Career cluster" means a grouping of occupations from 1                 


                                                                                

1   or more industries that share common skill requirements.                    

                                                                                

2       (c) "Career preparation system" is a system of programs and                 

                                                                                

3   strategies providing pupils with opportunities to prepare for               

                                                                                

4   success in careers of their choice.                                         

                                                                                

5       (d) "Department" means the department of career development.                

                                                                                

6       (e) "Eligible education agency" means a district,                           

                                                                                

7   intermediate district, or advanced career academy that                      

                                                                                

8   participates in an approved regional career preparation plan.               

                                                                                

9       (f) "FTE" means full-time equivalent pupil as determined by                 

                                                                                

10  the department.                                                             

                                                                                

11      (g) "Workforce development board" means a local workforce                   

                                                                                

12  development board established pursuant to the workforce                     

                                                                                

13  investment act of 1998, Public Law 105-220, 112 Stat. 936, and              

                                                                                

14  the school-to-work opportunities act of 1994, Public Law 103-239,           

                                                                                

15  108 Stat. 568, or the equivalent.                                           

                                                                                

16      (h) "Strategic plan" means a department-approved                            

                                                                                

17  comprehensive plan prepared by a workforce development board with           

                                                                                

18  input from local representatives, including the education                   

                                                                                

19  advisory group, that includes career preparation system goals and           

                                                                                

20  objectives for the region.                                                  

                                                                                

21      Sec. 74.  (1) From the amount appropriated in section 11,                   

                                                                                

22  there is allocated an amount not to exceed  $1,625,000.00 each              

                                                                                

23  fiscal year for 2001-2002, for 2002-2003, and  $1,500,000.00 for            

                                                                                

24  2003-2004 for the purposes of subsections (2) and (3).                      

                                                                                

25      (2) From the allocation in subsection (1), there is allocated               

                                                                                

26  each fiscal year the amount necessary for payments to state                 

                                                                                

27  supported colleges or universities and intermediate districts               


                                                                                

1   providing school bus driver safety instruction or driver skills             

                                                                                

2   road tests pursuant to sections 51 and 52 of the pupil                      

                                                                                

3   transportation act, 1990 PA 187, MCL 257.1851 and 257.1852.  The            

                                                                                

4   payments shall be in an amount determined by the department not             

                                                                                

5   to exceed 75% of the actual cost of instruction and driver                  

                                                                                

6   compensation for each public or nonpublic school bus driver                 

                                                                                

7   attending a course of instruction.  For the purpose of computing            

                                                                                

8   compensation, the hourly rate allowed each school bus driver                

                                                                                

9   shall not exceed the hourly rate received for driving a school              

                                                                                

10  bus.  Reimbursement compensating the driver during the course of            

                                                                                

11  instruction or driver skills road tests shall be made by the                

                                                                                

12  department to the college or university or intermediate district            

                                                                                

13  providing the course of instruction.                                        

                                                                                

14      (3) From the allocation in subsection (1), there is allocated               

                                                                                

15  each fiscal year the amount necessary to pay the reasonable costs           

                                                                                

16  of nonspecial education auxiliary services transportation                   

                                                                                

17  provided pursuant to section 1323 of the revised school code,               

                                                                                

18  MCL 380.1323.  Districts funded under this subsection shall not             

                                                                                

19  receive funding under any other section of this act for                     

                                                                                

20  nonspecial education auxiliary services transportation.                     

                                                                                

21      Sec. 81.  (1) Except as otherwise provided in this section,                 

                                                                                

22  from the appropriation in section 11, there is allocated  each              

                                                                                

23  fiscal year for 2001-2002, for 2002-2003, and  for 2003-2004 to             

                                                                                

24  the intermediate districts the sum necessary, but not to exceed             

                                                                                

25  $92,170,800.00 for 2001-2002 and not to exceed  $95,028,100.00,            

                                                                                

26  each fiscal year for 2002-2003 and for 2003-2004  to provide               

                                                                                

27  state aid to intermediate districts under this section.   Except            


                                                                                

1   as otherwise provided in this section, there shall be allocated             

                                                                                

2   to each intermediate district for 2001-2002 an amount equal to              

                                                                                

3   105% of the amount of funding actually received by the                      

                                                                                

4   intermediate district under this subsection for 2000-2001.                  

                                                                                

5   Except as otherwise provided in this section, there shall be                

                                                                                

6   allocated to each intermediate district  each fiscal year for               

                                                                                

7   2002-2003 and  for 2003-2004 an amount equal to  103.1% of the              

                                                                                

8   amount of funding actually received by the intermediate district            

                                                                                

9   under this subsection for 2001-2002  the amount appropriated                

                                                                                

10  under this subsection for 2002-2003 in 2002 PA 521, before any              

                                                                                

11  reduction made for 2002-2003 under section 11(3).  Funding                  

                                                                                

12  provided under this section shall be used to comply with                    

                                                                                

13  requirements of this act and the revised school code that are               

                                                                                

14  applicable to intermediate districts, and for which funding is              

                                                                                

15  not provided elsewhere in this act, and to provide technical                

                                                                                

16  assistance to districts as authorized by the intermediate school            

                                                                                

17  board.                                                                      

                                                                                

18      (2) From the allocation in subsection (1), there is allocated               

                                                                                

19  to an intermediate district, formed by the consolidation or                 

                                                                                

20  annexation of 2 or more intermediate districts or the attachment            

                                                                                

21  of a total intermediate district to another intermediate school             

                                                                                

22  district or the annexation of all of the constituent K-12                   

                                                                                

23  districts of a previously existing intermediate school district             

                                                                                

24  which has disorganized, an additional allotment of $3,500.00 each           

                                                                                

25  fiscal year for each intermediate district included in the new              

                                                                                

26  intermediate district for 3 years following consolidation,                  

                                                                                

27  annexation, or attachment.                                                  


                                                                                

1       (3) If an intermediate district participated in 1993-94 in a                

                                                                                

2   consortium operating a regional educational media center under              

                                                                                

3   section 671 of the revised school code, MCL 380.671, and rules              

                                                                                

4   promulgated by the superintendent, and if the intermediate                  

                                                                                

5   district obtains written consent from each of the other                     

                                                                                

6   intermediate districts that participated in the consortium in               

                                                                                

7   1993-94, the intermediate district may notify the department not            

                                                                                

8   later than December 30 of the current fiscal year that it is                

                                                                                

9   electing to directly receive its payment attributable to                    

                                                                                

10  participation in that consortium.  An intermediate district                 

                                                                                

11  making that election, and that has obtained the necessary                   

                                                                                

12  consent, shall receive each fiscal year for 2001-2002, for                  

                                                                                

13  2002-2003, or for 2003-2004, as applicable, for each pupil in               

                                                                                

14  membership in the intermediate district or a constituent district           

                                                                                

15  an amount equal to the quotient of the 1993-94 allocation to the            

                                                                                

16  fiscal agent for that consortium under former section 83,                   

                                                                                

17  adjusted as determined by the department to account for that                

                                                                                

18  election, divided by the combined total membership for the                  

                                                                                

19  current fiscal year in all of the intermediate districts that               

                                                                                

20  participated in that consortium and their constituent districts.            

                                                                                

21  The amount allocated to an intermediate district under this                 

                                                                                

22  subsection for a fiscal year shall be deducted from the total               

                                                                                

23  allocation for that fiscal year under this section to the                   

                                                                                

24  intermediate district that was the 1993-94 fiscal agent for the             

                                                                                

25  consortium.                                                                 

                                                                                

26      (3)  (4)  During a fiscal year, the department shall not                    

                                                                                

27  increase an intermediate district's allocation under subsection             


                                                                                

1   (1) because of an adjustment made by the department during the              

                                                                                

2   fiscal year in the intermediate district's taxable value for a              

                                                                                

3   prior year.  Instead, the department shall report the adjustment            

                                                                                

4   and the estimated amount of the increase to the house and senate            

                                                                                

5   fiscal agencies and the state budget director not later than                

                                                                                

6   June 1 of the fiscal year, and the legislature shall appropriate            

                                                                                

7   money for the adjustment in the next succeeding fiscal year.                

                                                                                

8       (4)  (5)  In order to receive funding under this section, an                

                                                                                

9   intermediate district shall demonstrate to the satisfaction of              

                                                                                

10  the department that the intermediate district employs at least 1            

                                                                                

11  person who is trained in pupil counting procedures, rules, and              

                                                                                

12  regulations.                                                                

                                                                                

13      Sec. 93.  (1) Not later than December 1, 2003, the senate                   

                                                                                

14  and house appropriations subcommittees responsible for this act             

                                                                                

15  shall conduct a study of the issue of declining enrollment and              

                                                                                

16  make recommendations on the most appropriate methods to address             

                                                                                

17  the situation of districts that are experiencing severely                   

                                                                                

18  declining enrollment, such as a funding method or formula or                

                                                                                

19  cost-saving measures, or a combination of these.                            

                                                                                

20      (2) From the general fund money appropriated in section 11,                 

                                                                                

21  an amount not to exceed $20,000.00 is allocated to the                      

                                                                                

22  legislature to reimburse the subcommittees for expenses related             

                                                                                

23  to the study under subsection (1).                                          

                                                                                

24      Sec. 94a.  (1) There is created within the office of the                    

                                                                                

25  state budget director in the department of management and budget            

                                                                                

26  the center for educational performance and information.  The                

                                                                                

27  department of management and budget shall provide administrative            


                                                                                

1   support to the center. The center shall do all of the following:            

                                                                                

2       (a) Coordinate the collection of all data required by state                 

                                                                                

3   and federal law from all entities receiving funds under this                

                                                                                

4   act.                                                                        

                                                                                

5       (b) Collect data in the most efficient manner possible in                   

                                                                                

6   order to reduce the administrative burden on reporting entities.            

                                                                                

7       (c) Establish procedures to ensure the validity and                         

                                                                                

8   reliability of the data and the collection process.                         

                                                                                

9       (d) Develop state and model local data collection policies,                 

                                                                                

10  including, but not limited to, policies that ensure the privacy             

                                                                                

11  of individual student data.  State privacy policies shall ensure            

                                                                                

12  that student social security numbers are not released to the                

                                                                                

13  public for any purpose.                                                     

                                                                                

14      (e) Provide data in a useful manner to allow state and local                

                                                                                

15  policymakers to make informed policy decisions.                             

                                                                                

16      (f) Provide reports to the citizens of this state to allow                  

                                                                                

17  them to assess allocation of resources and the return on their              

                                                                                

18  investment in the education system of this state.                           

                                                                                

19      (g) Assist all entities receiving funds under this act in                   

                                                                                

20  complying with audits performed according to generally accepted             

                                                                                

21  accounting procedures.                                                      

                                                                                

22      (h) Other functions as assigned by the state budget                         

                                                                                

23  director.                                                                   

                                                                                

24      (2) The state budget director shall appoint a CEPI advisory                 

                                                                                

25  committee, consisting of the following members:                             

                                                                                

26      (a) One representative from the house fiscal agency.                        

                                                                                

27      (b) One representative from the senate fiscal agency.                       


                                                                                

1       (c) One representative from the office of the state budget                  

                                                                                

2   director.                                                                   

                                                                                

3       (d) One representative from the state education agency.                     

                                                                                

4       (e) One representative each from the department of career                   

                                                                                

5   development and the department of treasury.                                 

                                                                                

6       (f) Three representatives from intermediate school                          

                                                                                

7   districts.                                                                  

                                                                                

8       (g) One representative from each of the following educational               

                                                                                

9   organizations:                                                              

                                                                                

10                                                                               (i) Michigan association of school boards.                                          

                                                                                

11      (ii) Michigan association of school administrators.                          

                                                                                

12      (iii) Michigan school business officials.                                    

                                                                                

13      (h) One representative representing private sector firms                    

                                                                                

14  responsible for auditing school records.                                    

                                                                                

15      (i) Other representatives as the state budget director                      

                                                                                

16  determines are necessary.                                                   

                                                                                

17      (3) The CEPI advisory committee appointed under                             

                                                                                

18  subsection (2) shall provide advice to the director of the center           

                                                                                

19  regarding the management of the center's data collection                    

                                                                                

20  activities, including, but not limited to:                                  

                                                                                

21      (a) Determining what data is necessary to collect and                       

                                                                                

22  maintain in order to perform the center's functions in the most             

                                                                                

23  efficient manner possible.                                                  

                                                                                

24      (b) Defining the roles of all stakeholders in the data                      

                                                                                

25  collection system.                                                          

                                                                                

26      (c) Recommending timelines for the implementation and ongoing               

                                                                                

27  collection of data.                                                         


                                                                                

1       (d) Establishing and maintaining data definitions, data                     

                                                                                

2   transmission protocols, and system specifications and procedures            

                                                                                

3   for the efficient and accurate transmission and collection of               

                                                                                

4   data.                                                                       

                                                                                

5       (e) Establishing and maintaining a process for ensuring the                 

                                                                                

6   accuracy of the data.                                                       

                                                                                

7       (f) Establishing and maintaining state and model local                      

                                                                                

8   policies related to data collection, including, but not limited             

                                                                                

9   to, privacy policies related to individual student data.                    

                                                                                

10      (g) Ensuring the data is made available to state and local                  

                                                                                

11  policymakers and citizens of this state in the most useful format           

                                                                                

12  possible.                                                                   

                                                                                

13      (h) Other matters as determined by the state budget director                

                                                                                

14  or the director of the center.                                              

                                                                                

15      (4) The center may enter into any interlocal agreements                     

                                                                                

16  necessary to fulfill its functions.                                         

                                                                                

17      (5)  From the general fund appropriation in section 11, there               

                                                                                

18  is allocated an amount not to exceed $2,332,000.00 for 2001-2002            

                                                                                

19  for payments to the center.  From the general fund appropriation            

                                                                                

20  in section 11, there is allocated an amount not to exceed                   

                                                                                

21  $4,500,000.00 each fiscal year for 2002-2003 and  $2,000,000.00            

                                                                                

22  for 2003-2004 to the office of the state budget in the department           

                                                                                

23  of management and budget to support the operations of the                   

                                                                                

24  center.  In addition, from the federal funds appropriated in                

                                                                                

25  section 11 for 2003-2004, there is allocated $1,000,000.00 funded           

                                                                                

26  from DED-OESE, title V, innovative strategies grants, to the                

                                                                                

27  center for a contract with Standard & Poor's for the school                 


                                                                                

1   evaluation services website if the center determines that the               

                                                                                

2   contract is warranted. The center shall cooperate with the state            

                                                                                

3   education agency to ensure that this state is in compliance with            

                                                                                

4   federal law and is maximizing opportunities for increased federal           

                                                                                

5   funding to improve education in this state.  In addition, from              

                                                                                

6   the federal funds appropriated in section 11  for 2002-2003 and             

                                                                                

7   for 2003-2004, there is allocated the following amounts  each               

                                                                                

8   fiscal year  in order to fulfill federal reporting requirements:            

                                                                                

9       (a) An amount estimated at $1,000,000.00 funded from                        

                                                                                

10  DED-OESE, title I, disadvantaged children funds.                            

                                                                                

11      (b) An amount estimated at $284,700.00 funded from DED-OESE,                

                                                                                

12  title I, reading first state grant funds.                                   

                                                                                

13      (c) An amount estimated at  $46,750.00  $46,800.00 funded                   

                                                                                

14  from DED-OESE, title I, migrant education funds.                            

                                                                                

15      (d) An amount estimated at $500,000.00 funded from DED-OESE,                

                                                                                

16  improving teacher quality funds.                                            

                                                                                

17      (e) An amount estimated at  $526,100.00  $100,000.00 funded                 

                                                                                

18  from DED-OESE, drug-free schools and communities funds.                     

                                                                                

19      (6)  Funds  Federal funds allocated under this section that                 

                                                                                

20  are not expended in the fiscal year in which they were allocated            

                                                                                

21  may be carried forward to a subsequent fiscal year.   From the              

                                                                                

22  funds allocated for 1999-2000 that were carried forward under               

                                                                                

23  this section and from the general funds appropriated under this             

                                                                                

24  section for 2002-2003, the center shall make grants to                      

                                                                                

25  intermediate districts for the purpose of assisting the                     

                                                                                

26  intermediate districts and their constituent districts in data              

                                                                                

27  collection required by state and federal law or necessary for               


                                                                                

1   audits according to generally accepted accounting procedures.               

                                                                                

2   Grants to each intermediate district shall be made at the rate of           

                                                                                

3   $2.00 per each full-time equated membership pupil times the total           

                                                                                

4   number of 2000-2001 pupils in membership in the intermediate                

                                                                                

5   district and its constituent districts.  An intermediate district           

                                                                                

6   shall develop a plan in cooperation with its constituent                    

                                                                                

7   districts to distribute the grants between the intermediate                 

                                                                                

8   district and its constituent districts.  These grants shall be              

                                                                                

9   paid to intermediate districts no later than the next regularly             

                                                                                

10  scheduled school aid payment after the effective date of this               

                                                                                

11  section.                                                                    

                                                                                

12      (7) If the applicable intermediate district determines that                 

                                                                                

13  the pupil counts submitted by a district for the February 2002              

                                                                                

14  supplemental pupil count using the single record student database           

                                                                                

15  cannot be audited by the intermediate district pursuant to                  

                                                                                

16  section 101, all of the following apply:                                    

                                                                                

17      (a) The district may submit its pupil count data for the                    

                                                                                

18  February 2002 supplemental pupil count using the education data             

                                                                                

19  network system.                                                             

                                                                                

20      (b) If the applicable intermediate district determines that                 

                                                                                

21  the pupil counts submitted by the district for the 2002-2003                

                                                                                

22  pupil membership count day using the single record student                  

                                                                                

23  database cannot be audited by the intermediate district pursuant            

                                                                                

24  to section 101, the district may submit its pupil count data for            

                                                                                

25  the 2002-2003 pupil membership count day using the education data           

                                                                                

26  network system.                                                             

                                                                                

27      (8) At least 30 days before implementing a proposed                         


                                                                                

1   electronic data collection, submission, or collation process, or            

                                                                                

2   a proposed change to 1 or more of those processes, the center               

                                                                                

3   shall submit the proposal and an analysis of the proposal to the            

                                                                                

4   senate and house of representatives appropriations subcommittees            

                                                                                

5   responsible for this act.  The analysis shall include at least a            

                                                                                

6   determination of the cost of the proposal for districts and                 

                                                                                

7   intermediate districts and of available funding for districts and           

                                                                                

8   intermediate districts.                                                     

                                                                                

9       (7) The center may bill departments as necessary in order to                

                                                                                

10  fulfill reporting requirements of state and federal law.                    

                                                                                

11      (8)  (9)  As used in this section:                                          

                                                                                

12      (a) "Center" means the center for educational performance and               

                                                                                

13  information created under this section.                                     

                                                                                

14      (b) "DED-OESE" means the United States department of                        

                                                                                

15  education office of elementary and secondary education.                     

                                                                                

16      (c) "State education agency" means the department.                          

                                                                                

17      Sec. 98.  (1) From the general fund money appropriated in                   

                                                                                

18  section 11, there is allocated an amount not to exceed                      

                                                                                

19  $1,500,000.00 for 2001-2002 and an amount not to exceed                    

                                                                                

20  $5,000,000.00 each fiscal year for 2002-2003 and  $4,000,000.00             

                                                                                

21  for 2003-2004  to the department  to provide a grant to the                 

                                                                                

22  Michigan virtual university for the development, implementation,            

                                                                                

23  and operation of the Michigan virtual high school and to fund               

                                                                                

24  other purposes described in this section.  In addition, from the            

                                                                                

25  federal funds appropriated in section 11, there is allocated                

                                                                                

26  each fiscal year for 2001-2002, for 2002-2003, and  for                    

                                                                                

27  2003-2004  the following amounts:  (a) An  an amount estimated at           


                                                                                

1   $3,251,800.00  $2,250,000.00 from DED-OESE, title II, improving            

                                                                                

2   teacher quality funds.                                                      

                                                                                

3       (b) An amount estimated at $1,188,000.00 from DED-OESE,                     

                                                                                

4   title II, educational technology grants funds.                              

                                                                                

5       (c) An amount estimated at $2,044,400.00 from DED-OESE, title               

                                                                                

6   V, innovative strategies grants funds.                                      

                                                                                

7       (d) An amount estimated at $100,500.00 from DED-OESE, title                 

                                                                                

8   VI, rural and low income schools grants funds.                              

                                                                                

9       (2) The Michigan virtual high school shall have the following               

                                                                                

10  goals:                                                                      

                                                                                

11      (a) Significantly expand curricular offerings for high                      

                                                                                

12  schools across this state through agreements with districts or              

                                                                                

13  licenses from other recognized providers.  The Michigan virtual             

                                                                                

14  university shall explore options for providing rigorous civics              

                                                                                

15  curricula online.                                                           

                                                                                

16      (b) Create statewide instructional models using interactive                 

                                                                                

17  multimedia tools delivered by electronic means, including, but              

                                                                                

18  not limited to, the internet, digital broadcast, or satellite               

                                                                                

19  network, for distributed learning at the high school level.                 

                                                                                

20      (c) Provide pupils with opportunities to develop skills and                 

                                                                                

21  competencies through on-line learning.                                      

                                                                                

22      (d) Offer teachers opportunities to learn new skills and                    

                                                                                

23  strategies for developing and delivering instructional services.            

                                                                                

24      (e) Accelerate this state's ability to respond to current and               

                                                                                

25  emerging educational demands.                                               

                                                                                

26      (f) Grant high school diplomas through a dual enrollment                    

                                                                                

27  method with districts.                                                      


                                                                                

1       (g) Act as a broker for college level equivalent courses, as                

                                                                                

2   defined in section 1471 of the revised school code, MCL 380.1471,           

                                                                                

3   and dual enrollment courses from postsecondary education                    

                                                                                

4   institutions.                                                               

                                                                                

5       (3) The Michigan virtual high school course offerings shall                 

                                                                                

6   include, but are not limited to, all of the following:                      

                                                                                

7       (a) Information technology courses.                                         

                                                                                

8       (b) College level equivalent courses, as defined in section                 

                                                                                

9   1471 of the revised school code, MCL 380.1471.                              

                                                                                

10      (c) Courses and dual enrollment opportunities.                              

                                                                                

11      (d) Programs and services for at-risk pupils.                               

                                                                                

12      (e) General education development test preparation courses                  

                                                                                

13  for adjudicated youth.                                                      

                                                                                

14      (f) Special interest courses.                                               

                                                                                

15      (g) Professional development programs and services for                      

                                                                                

16  teachers.                                                                   

                                                                                

17      (4) From the allocation in subsection (1), there is                         

                                                                                

18  allocated $3,500,000.00 each fiscal year for 2002-2003 and for              

                                                                                

19  2003-2004 for the purpose of developing innovative strategies to            

                                                                                

20  use wireless technology to improve student academic achievement             

                                                                                

21  in this state.  The Michigan virtual university shall identify              

                                                                                

22  not more than 5 pilot project sites for these initiatives.  The             

                                                                                

23  pilot project sites shall be geographically diverse and at least            

                                                                                

24  1 of the pilot project sites shall be in the Upper Peninsula.               

                                                                                

25  The pilot projects shall be funded through public-private                   

                                                                                

26  partnerships.  In addition, the Michigan virtual university shall           

                                                                                

27  establish local fund matching requirements for the pilot project            


                                                                                

1   sites.                                                                      

                                                                                

2       (4)  (5)  The state education agency shall sign a memorandum                

                                                                                

3   of understanding with the Michigan virtual university regarding             

                                                                                

4   the DED-OESE, title II, improving teacher quality funds as                  

                                                                                

5   provided under this subsection.   To the extent allowed under               

                                                                                

6   federal law, the Michigan virtual university shall address the              

                                                                                

7   unique issues of providing educational opportunities in rural               

                                                                                

8   communities.  The memorandum of understanding under this                    

                                                                                

9   subsection shall require that the Michigan virtual university               

                                                                                

10  coordinate the following activities related to DED-OESE, title              

                                                                                

11  II, improving teacher quality funds in accordance with federal              

                                                                                

12  law:                                                                        

                                                                                

13      (a) Develop, and assist districts in the development and use                

                                                                                

14  of, proven, innovative strategies to deliver intensive                      

                                                                                

15  professional development programs that are both cost-effective              

                                                                                

16  and easily accessible, such as strategies that involve delivery             

                                                                                

17  through the use of technology, peer networks, and distance                  

                                                                                

18  learning.                                                                   

                                                                                

19      (b) Encourage and support the training of teachers and                      

                                                                                

20  administrators to effectively integrate technology into curricula           

                                                                                

21  and instruction.                                                            

                                                                                

22      (c) Coordinate the activities of eligible partnerships that                 

                                                                                

23  include higher education institutions for the purposes of                   

                                                                                

24  providing professional development activities for teachers,                 

                                                                                

25  paraprofessionals, and principals as defined in federal law.                

                                                                                

26      (6) The state education agency shall sign a memorandum of                   

                                                                                

27  understanding with the Michigan virtual university regarding                


                                                                                

1   DED-OESE, title II, educational technology grants as provided               

                                                                                

2   under this subsection.  The Michigan virtual university shall               

                                                                                

3   coordinate activities described in this subsection with the pilot           

                                                                                

4   project sites identified in subsection (4).  The memorandum of              

                                                                                

5   understanding shall require that the Michigan virtual university            

                                                                                

6   coordinate the following state activities related to DED-OESE,              

                                                                                

7   title II, educational technology grants in accordance with                  

                                                                                

8   federal law:                                                                

                                                                                

9       (a) Assist in the development of innovative strategies for                  

                                                                                

10  the delivery of specialized or rigorous academic courses and                

                                                                                

11  curricula through the use of technology, including distance                 

                                                                                

12  learning technologies.                                                      

                                                                                

13      (b) Establish and support public-private initiatives for the                

                                                                                

14  acquisition of educational technology for students in high-need             

                                                                                

15  districts.                                                                  

                                                                                

16      (7) The state education agency shall sign a memorandum of                   

                                                                                

17  understanding with the Michigan virtual university regarding                

                                                                                

18  DED-OESE, title V, innovative strategies grants as provided under           

                                                                                

19  this subsection.  The Michigan virtual university shall                     

                                                                                

20  coordinate activities described in this subsection with the pilot           

                                                                                

21  project sites identified in subsection (4).  The memorandum of              

                                                                                

22  understanding shall require the Michigan virtual university to              

                                                                                

23  coordinate the following state-level activities related to                  

                                                                                

24  DED-OESE, title V, innovative strategies grants in accordance               

                                                                                

25  with federal law:                                                           

                                                                                

26      (a) Programs for the development or acquisition and use of                  

                                                                                

27  instructional and educational materials, including computer                 


                                                                                

1   software and hardware for instructional use, that will be used to           

                                                                                

2   improve student academic achievement as part of an overall                  

                                                                                

3   education reform strategy.                                                  

                                                                                

4       (b) Programs and activities that expand learning                            

                                                                                

5   opportunities through best-practice models designed to improve              

                                                                                

6   classroom learning and teaching.                                            

                                                                                

7       (8) The state education agency shall sign a memorandum of                   

                                                                                

8   understanding with the Michigan virtual university requiring that           

                                                                                

9   the Michigan virtual university coordinate the awarding of                  

                                                                                

10  competitive grants to districts and state-level activities                  

                                                                                

11  related to DED-OESE, title VI, rural and low income schools                 

                                                                                

12  grants in accordance with federal law for the following                     

                                                                                

13  purposes:                                                                   

                                                                                

14      (a) Teacher professional development, including programs that               

                                                                                

15  train teachers to utilize technology, programs to improve                   

                                                                                

16  teaching, and programs to train special needs teachers.                     

                                                                                

17      (b) Educational technology, including software and hardware,                

                                                                                

18  as described in federal law.                                                

                                                                                

19      (9) Funds allocated under this section that are not expended                

                                                                                

20  in the state fiscal year for which they were allocated may be               

                                                                                

21  carried forward to a subsequent state fiscal year.                          

                                                                                

22      (10) The state education agency and the Michigan virtual                    

                                                                                

23  university shall complete the memoranda of understanding required           

                                                                                

24  under this section within 60 days after the effective date of the           

                                                                                

25  amendatory act that added this subsection.  It is the intent of             

                                                                                

26  the legislature that all plans or applications submitted by the             

                                                                                

27  state education agency to the United States department of                   


    House Bill No. 4401 as amended June 18, 2003                                

1   education relating to the distribution of federal funds under               

                                                                                

2   this section shall be for the purposes described in this                    

                                                                                

3   section.                                                                    

                                                                                

4       (5) If a home-schooled or nonpublic school student is a                     

                                                                                

5   resident of a district that subscribes to services provided by              

                                                                                

6   the Michigan virtual university, the student may use the services           

                                                                                

7   provided by the Michigan virtual university to the district                 

                                                                                

8   without charge to the student beyond what is charged to a                   

                                                                                

9   district pupil using the same services.                                     

                                                                                

10      (6) From the allocations in subsection (1), the amount                      

                                                                                

11  necessary, not to exceed $4,700,000.00, shall be used to provide            

                                                                                

12  online professional development for classroom teachers.  This               

                                                                                

13  allocation is intended to be for the first of 3 years.  These               

                                                                                

14  funds may be used for designing and building courses, marketing             

                                                                                

15  and outreach, workshops and evaluation, content acquisition,                

                                                                                

16  technical assistance, project management, and customer support.             

                                                                                

17  The Michigan virtual university shall offer at least 5 hours of             

                                                                                

18  online professional development for classroom teachers under this           

                                                                                

19  section in 2003-2004 without charge to the teachers or to                   

                                                                                

20  districts or intermediate districts.                                        

                                                                                

21      (7) A district or intermediate district <<may>> require a                   

                                                                                

22  full-time teacher to participate in at least 5 hours of online              

                                                                                

23  professional development provided by the Michigan virtual                   

                                                                                

24  university under subsection (6).  Five hours of this professional           

                                                                                

25  development shall be considered to be part of the 51 hours                  

                                                                                

26  allowed to be counted as hours of pupil instruction under section           

                                                                                

27  101(10).                                                                    


                                                                                

1       (8)  (11)  As used in this section:                                         

                                                                                

2       (a) "DED-OESE" means the United States department of                        

                                                                                

3   education office of elementary and secondary education.                     

                                                                                

4       (b) "State education agency" means the department.                          

                                                                                

5       Sec. 98b.  (1) For the limitless learning program under this                

                                                                                

6   section, there is allocated for 2003-2004 the following federal             

                                                                                

7   funds:                                                                      

                                                                                

8       (a) From the federal funds appropriated in section 11, an                   

                                                                                

9   amount estimated at $12,383,000.00 from the competitive grants of           

                                                                                

10  DED-OESE, title II, educational technology grants funds.                    

                                                                                

11      (b) An amount estimated at $7,000,000.00 from funds carried                 

                                                                                

12  forward from 2002-2003 from unexpended DED-OESE, title II,                  

                                                                                

13  educational technology grants funds.                                        

                                                                                

14      (c) From the federal funds appropriated in section 11, an                   

                                                                                

15  amount estimated at $2,010,100.00 from rural and low income                 

                                                                                

16  schools, DED-OESE, rural and low income school funds.                       

                                                                                

17      (2) The allocations in subsection (1) shall be used to                      

                                                                                

18  develop, implement, and operate the limitless learning program              

                                                                                

19  and make program grants.  The goal of the program is to achieve             

                                                                                

20  one-to-one access to wireless technology for K-12 pupils through            

                                                                                

21  statewide and local public-private partnerships.  To implement              

                                                                                

22  the program, the state education agency shall sign a memorandum             

                                                                                

23  of understanding with the Michigan virtual university that                  

                                                                                

24  provides for joint administration of program grants under this              

                                                                                

25  subsection.  By December 1, 2003, the Michigan virtual university           

                                                                                

26  and the state education agency shall make grants to districts as            

                                                                                

27  described in this section.                                                  


                                                                                

1       (3) The amount of program grants to districts is estimated at               

                                                                                

2   $250.00 per pupil in membership in grade 6 in 2003-2004, or in              

                                                                                

3   another grade allowed in this section.  The state education                 

                                                                                

4   agency shall establish grant criteria that maximize the                     

                                                                                

5   distribution of federal funds to achieve the $250.00 per pupil in           

                                                                                

6   districts that qualify for federal funds.  To qualify for a grant           

                                                                                

7   under this section, a district shall submit an application and              

                                                                                

8   complete the application process established by the state                   

                                                                                

9   education agency and the Michigan virtual university.  The                  

                                                                                

10  application shall include at least all of the following:                    

                                                                                

11      (a) If the district is applying for federal funds, how the                  

                                                                                

12  district will meet the requirements of the competitive grants               

                                                                                

13  under DED-OESE, title II, part D.                                           

                                                                                

14      (b) How the district will provide the opportunity for each                  

                                                                                

15  pupil in membership in grade 6 to receive a wireless computing              

                                                                                

16  device.  If the district has already achieved one-to-one wireless           

                                                                                

17  access in grade 6, the district may apply for a grant for the               

                                                                                

18  next highest grade.  If the district does not have a grade 6 or             

                                                                                

19  higher, the district may apply for funding for the next lowest              

                                                                                

20  grade level.                                                                

                                                                                

21      (c) The district shall submit a plan describing the uses of                 

                                                                                

22  the grant funds.  The plan shall describe a plan for professional           

                                                                                

23  development, technology integration, content and curriculum, and            

                                                                                

24  local partnerships with the other districts and representatives             

                                                                                

25  from businesses, industry, and higher education.  The plan shall            

                                                                                

26  include at least the following:                                             

                                                                                

27                                                                               (i) The academic achievement goals of the plan.                                     


                                                                                

1       (ii) The engagement goals, which may include, but are not                    

                                                                                

2   limited to, goals related to retention rates, dropout rates,                

                                                                                

3   detentions, and suspensions.                                                

                                                                                

4       (d) How the district will amend its local technology plan as                

                                                                                

5   required under state and federal law to reflect the program under           

                                                                                

6   this section.                                                               

                                                                                

7       (4) A district that receives a grant under this section shall               

                                                                                

8   provide at least a $25.00 per pupil match for grant money                   

                                                                                

9   received under this section from local public or private                    

                                                                                

10  resources.                                                                  

                                                                                

11      (5) A district that received money under section 98 in                      

                                                                                

12  2002-2003 for a wireless technology grant is eligible to receive            

                                                                                

13  a grant under this section.                                                 

                                                                                

14      (6) A public school academy that does not offer a grade                     

                                                                                

15  higher than grade 5 may apply to receive a grant under this                 

                                                                                

16  section for pupils in the highest grade offered by the public               

                                                                                

17  school academy.                                                             

                                                                                

18      (7) By October 1, 2003, the department of management and                    

                                                                                

19  budget shall establish a statewide public-private partnership to            

                                                                                

20  implement the program.  The department of management and budget             

                                                                                

21  shall select a program partner through a request for proposals              

                                                                                

22  process for a total learning technology package that includes,              

                                                                                

23  but is not limited to, a wireless laptop, software, professional            

                                                                                

24  development, service, and support, and for management by a single           

                                                                                

25  point of contact individual responsible for the overall                     

                                                                                

26  implementation.  The proposal selected shall achieve significant            

                                                                                

27  efficiencies and economies of scale and be interoperable with               


                                                                                

1   existing technologies.  The private partner selected in the                 

                                                                                

2   request for proposals process to partner with the state must                

                                                                                

3   possess all of the following:                                               

                                                                                

4       (a) Experience in the development and successful                            

                                                                                

5   implementation of large-scale, school-based wireless technology             

                                                                                

6   projects.                                                                   

                                                                                

7       (b) Proven technical ability to deliver a total solutions                   

                                                                                

8   package of learning technology for elementary and secondary                 

                                                                                

9   students and teachers.                                                      

                                                                                

10      (c) Results-based education solutions to increase student                   

                                                                                

11  achievement and advance professional development for teachers.              

                                                                                

12      (d) Ability to coordinate, utilize, and expand existing                     

                                                                                

13  technology infrastructures and professional development delivery            

                                                                                

14  systems within school districts and regions.                                

                                                                                

15      (8) Within 30 days after the effective date of this section,                

                                                                                

16  the limitless learning partnership advisory group appointed under           

                                                                                

17  subsection (9) shall provide recommendations to the department of           

                                                                                

18  management and budget to assist in developing the request for               

                                                                                

19  proposals required under subsection (7).  In providing these                

                                                                                

20  recommendations, the limitless learning partnership advisory                

                                                                                

21  group shall focus on ensuring that the request for proposals will           

                                                                                

22  seek a program partner that will achieve significant economies of           

                                                                                

23  scale, will be interoperable with existing technologies, and will           

                                                                                

24  possess the qualifications of subdivisions (a) to (d) of                    

                                                                                

25  subsection (7).                                                             

                                                                                

26      (9) The limitless learning partnership advisory group shall                 

                                                                                

27  consist of the following 4 members, who shall be appointed                  


                                                                                

1   promptly upon enactment of the amendatory act that added this               

                                                                                

2   section:                                                                    

                                                                                

3       (a) One member appointed by the speaker of the house of                     

                                                                                

4   representatives.                                                            

                                                                                

5       (b) One member appointed by the senate majority leader.                     

                                                                                

6       (c) One member appointed by the governor.                                   

                                                                                

7       (d) One member appointed by the superintendent of public                    

                                                                                

8   instruction.                                                                

                                                                                

9       (10) A district may elect to purchase wireless laptops from a               

                                                                                

10  vendor other than the statewide partnership described in                    

                                                                                

11  subsection (7) if that person meets subdivisions (a) to (d) of              

                                                                                

12  subsection (7).                                                             

                                                                                

13      (11) The state education agency shall sign a memorandum of                  

                                                                                

14  understanding with the Michigan virtual university regarding                

                                                                                

15  DED-OESE, title II, educational technology grants, as provided              

                                                                                

16  under this subsection.  The Michigan virtual university shall               

                                                                                

17  coordinate activities described in this subsection with the                 

                                                                                

18  limitless learning grants described under this section.  The                

                                                                                

19  memorandum of understanding shall require that the Michigan                 

                                                                                

20  virtual university coordinate the following state activities                

                                                                                

21  related to DED-OESE, title II, educational technology grants in             

                                                                                

22  accordance with federal law:                                                

                                                                                

23      (a) Assist in the development of innovative strategies for                  

                                                                                

24  the delivery of specialized or rigorous academic courses and                

                                                                                

25  curricula through the use of technology, including distance                 

                                                                                

26  learning technologies.                                                      

                                                                                

27      (b) Establish and support public-private initiatives for the                


                                                                                

1   acquisition of educational technology for students in high-need             

                                                                                

2   districts.                                                                  

                                                                                

3       (12) Funds allocated under this section that are not expended               

                                                                                

4   in the state fiscal year for which they were allocated may be               

                                                                                

5   carried forward to a subsequent state fiscal year.                          

                                                                                

6       (13) The state education agency and the Michigan virtual                    

                                                                                

7   university shall complete the memoranda of understanding required           

                                                                                

8   under this section within 60 days after the effective date of the           

                                                                                

9   amendatory act that added this subsection.  It is the intent of             

                                                                                

10  the legislature that all plans or applications submitted by the             

                                                                                

11  state education agency to the United States department of                   

                                                                                

12  education relating to the distribution of federal funds under               

                                                                                

13  this section are for the purposes described in this section.                

                                                                                

14      (14) The state education agency shall ensure that the program               

                                                                                

15  goals and plans for the limitless learning program are contained            

                                                                                

16  in the state technology plan required by federal law.                       

                                                                                

17      (15) As used in this section:                                               

                                                                                

18      (a) "DED-OESE" means the United States department of                        

                                                                                

19  education office of elementary and secondary education.                     

                                                                                

20      (b) "State education agency" means the department.                          

                                                                                

21      Sec. 99.  (1) From the  state school aid fund appropriation                 

                                                                                

22  appropriations in section 11, there is allocated an amount not to           

                                                                                

23  exceed  $9,684,300.00 each fiscal year for 2001-2002, for                   

                                                                                

24  2002-2003, and for 2003-2004 and from the general fund                      

                                                                                

25  appropriation in section 11 there is allocated an amount not to             

                                                                                

26  exceed $548,000.00 each fiscal year for 2001-2002, for 2002-2003,           

                                                                                

27  and  $2,500,000.00 for 2003-2004 for implementing the                       


                                                                                

1   comprehensive master plan for mathematics and science centers               

                                                                                

2   developed by the department and approved by the state board on              

                                                                                

3   February 17, 1993  August 8, 2002In addition, from the                  

                                                                                

4   federal funds appropriated in section 11, there is allocated an             

                                                                                

5   amount estimated at $2,487,700.00 from DED-OESE, title II,                  

                                                                                

6   mathematics and science partnership grants.                                 

                                                                                

7       (2) Within a service area designated locally, approved by the               

                                                                                

8   department, and consistent with the master plan described in                

                                                                                

9   subsection (1), an established mathematics and science center               

                                                                                

10  shall address  2  4 or more of the following 6 basic services, as           

                                                                                

11  described in the master plan, to constituent districts and                  

                                                                                

12  communities:  leadership, pupil services, curriculum support,               

                                                                                

13  community involvement, professional development, and resource               

                                                                                

14  clearinghouse services.                                                     

                                                                                

15      (3) The department shall not award a state grant under this                 

                                                                                

16  section to more than 1 mathematics and science center located in            

                                                                                

17  a  particular intermediate district  designated region as                   

                                                                                

18  prescribed in the 2002 master plan unless each of the grants                

                                                                                

19  serves a distinct target population or provides a service that              

                                                                                

20  does not duplicate another program in the  intermediate district            

                                                                                

21  designated region.                                                          

                                                                                

22      (4) As part of the technical assistance process, the                        

                                                                                

23  department shall provide minimum standard guidelines that may be            

                                                                                

24  used by the mathematics and science center for providing fair               

                                                                                

25  access for qualified pupils and professional staff as prescribed            

                                                                                

26  in this section.                                                            

                                                                                

27      (5) Allocations under this section to support the activities                


                                                                                

1   and programs of mathematics and science centers shall be                    

                                                                                

2   continuing support grants to all  25  33 established mathematics            

                                                                                

3   and science centers.  and, subject to subsection (9), the 8                 

                                                                                

4   satellite extensions that were funded in 1996-97.  Each                     

                                                                                

5   established mathematics and science center that was funded in               

                                                                                

6   1999-2000  2002-2003 shall receive state funding in an amount              

                                                                                

7   equal to  105.3%  24.43% of the amount it received under this               

                                                                                

8   section  in 1999-2000  for 2002-2003 in 2002 PA 521, before any             

                                                                                

9   reduction made for 2002-2003 under section 11(3).                           

                                                                                

10      (6) In order to receive state funds under this section, a                   

                                                                                

11  grant recipient shall allow access for the department or the                

                                                                                

12  department's designee to audit all records related to the program           

                                                                                

13  for which it receives such funds.  The grant recipient shall                

                                                                                

14  reimburse the state for all disallowances found in the audit.               

                                                                                

15      (7) From the  state school aid fund allocation  state funds                 

                                                                                

16  allocated under subsection (1), there is allocated an amount not            

                                                                                

17  to exceed  $611,800.00 each fiscal year for 2001-2002, for                  

                                                                                

18  2002-2003, and  $298,925.00 for 2003-2004 for additional funding            

                                                                                

19  under this subsection for mathematics and science centers that              

                                                                                

20  have come into compliance with the comprehensive master plan                

                                                                                

21  described in subsection (1).  These amounts are in addition to              

                                                                                

22  the funding determined under subsection (5).  and are as follows            

                                                                                

23  for each of those fiscal years:                                             

                                                                                

24      (a) $68,000.00 each to the central Michigan science,                        

                                                                                

25  mathematics, and technology center; the Hillsdale-Lenawee-Monroe            

                                                                                

26  mathematics and science center; the St. Clair mathematics,                  

                                                                                

27  science, and technology network; the Saginaw valley state                   


                                                                                

1   university regional center; the Genesee area mathematics,                   

                                                                                

2   science, and technology center; the Grand Traverse area regional            

                                                                                

3   mathematics, science, and technology center; and the                        

                                                                                

4   Livingston/Washtenaw mathematics and science center.                        

                                                                                

5       (b) $85,000.00 to the Grand valley state university regional                

                                                                                

6   mathematics and science center.                                             

                                                                                

7       (c) $50,800.00 to the Seaborg center at Northern Michigan                   

                                                                                

8   university.                                                                 

                                                                                

9       (8) Not later than  June 30, 2000  September 30, 2007, the                  

                                                                                

10  department shall reevaluate and update the comprehensive master             

                                                                                

11  plan described in subsection (1), including any recommendations             

                                                                                

12  for upgrading satellite extensions to full centers.                         

                                                                                

13      (9) The department shall give preference in awarding the                    

                                                                                

14  federal grants allocated in subsection (1) to the 33 existing               

                                                                                

15  mathematics and science centers.                                            

                                                                                

16      (10)  (9) During the course of the 2000-2001 and 2001-2002                  

                                                                                

17  fiscal years, the department shall facilitate the conversion of             

                                                                                

18  the 8 existing satellite extensions to full mathematics and                 

                                                                                

19  science centers.  To this end, in 2000-2001 the department shall            

                                                                                

20  provide 4 satellite extensions, as selected by the department,              

                                                                                

21  with applications for conversion to full centers, and in                    

                                                                                

22  2001-2002 the department shall provide the remaining 4 satellite            

                                                                                

23  extensions with applications for conversion.  The department                

                                                                                

24  shall provide the applications not later than October 15 of the             

                                                                                

25  applicable fiscal year; a satellite extension shall submit the              

                                                                                

26  application and a detail plan as prescribed by the department not           

                                                                                

27  later than November 15 of the applicable fiscal year; and the               


                                                                                

1   department shall review the applications and plans and notify the           

                                                                                

2   satellite extensions of their status not later than December 1 of           

                                                                                

3   the applicable fiscal year.  The allocations under this section             

                                                                                

4   are sufficient to fund the conversion of the satellite extensions           

                                                                                

5   to full centers and to fund them as full centers.  In order to              

                                                                                

6   receive funds under this section, a grant recipient shall provide           

                                                                                

7   at least a 10% local match from local public or private resources           

                                                                                

8   for the funds received under this section.                                  

                                                                                

9       (11) As used in this section:                                               

                                                                                

10      (a) "DED" means the United States department of education.                  

                                                                                

11      (b) "DED-OESE" means the DED office of elementary and                       

                                                                                

12  secondary education.                                                        

                                                                                

13      Sec. 99b.  From the general fund appropriation in section                   

                                                                                

14  11, there is allocated the amount of $50,000.00 for 2003-2004 to            

                                                                                

15  Oakland university for the purpose of providing science education           

                                                                                

16  grants to at least 1 entity.  To be eligible for a grant, an                

                                                                                

17  entity must, through interactive video conferencing technology,             

                                                                                

18  deliver innovative and high-quality science educational programs            

                                                                                

19  that are based on the state model core curriculum content                   

                                                                                

20  standards.  A grant recipient shall provide these programs to               

                                                                                

21  districts across the state, with an emphasis on rural and                   

                                                                                

22  underserved districts.                                                      

                                                                                

23      Sec. 101.  (1) To be eligible to receive state aid under                    

                                                                                

24  this act, not later than the fifth Wednesday after the pupil                

                                                                                

25  membership count day and not later than the fifth Wednesday after           

                                                                                

26  the supplemental count day, each district superintendent through            

                                                                                

27  the secretary of the district's board shall file with the                   


                                                                                

1   intermediate superintendent a certified and sworn copy of the               

                                                                                

2   number of pupils enrolled and in regular daily attendance in the            

                                                                                

3   district as of the pupil membership count day and as of the                 

                                                                                

4   supplemental count day, as applicable, for the current school               

                                                                                

5   year.  In addition, a district maintaining school during the                

                                                                                

6   entire year, as provided under section 1561 of the revised school           

                                                                                

7   code, MCL 380.1561, shall file with the intermediate                        

                                                                                

8   superintendent a certified and sworn copy of the number of pupils           

                                                                                

9   enrolled and in regular daily attendance in the district for the            

                                                                                

10  current school year pursuant to rules promulgated by the                    

                                                                                

11  superintendent.  Not later than the seventh Wednesday after the             

                                                                                

12  pupil membership count day and not later than the seventh                   

                                                                                

13  Wednesday after the supplemental count day, the intermediate                

                                                                                

14  district shall transmit to the  department  center the data filed           

                                                                                

15  by each of its constituent districts.  If a district fails to               

                                                                                

16  file the sworn and certified copy with the intermediate                     

                                                                                

17  superintendent in a timely manner, as required under this                   

                                                                                

18  subsection, the intermediate district shall notify the department           

                                                                                

19  and state aid due to be distributed under this act shall be                 

                                                                                

20  withheld from the defaulting district immediately, beginning with           

                                                                                

21  the next payment after the failure and continuing with each                 

                                                                                

22  payment until the district complies with this subsection.  If an            

                                                                                

23  intermediate district fails to transmit the data in its                     

                                                                                

24  possession in a timely and accurate manner to the department, as            

                                                                                

25  required under this subsection, state aid due to be distributed             

                                                                                

26  under this act shall be withheld from the defaulting intermediate           

                                                                                

27  district immediately, beginning with the next payment after the             


                                                                                

1   failure and continuing with each payment until the intermediate             

                                                                                

2   district complies with this subsection.  If a district or                   

                                                                                

3   intermediate district does not comply with this subsection by the           

                                                                                

4   end of the fiscal year, the district or intermediate district               

                                                                                

5   forfeits the amount withheld.  A person who willfully falsifies a           

                                                                                

6   figure or statement in the certified and sworn copy of enrollment           

                                                                                

7   shall be punished in the manner prescribed by section 161.                  

                                                                                

8       (2) To be eligible to receive state aid under this act, not                 

                                                                                

9   later than the twenty-fourth Wednesday after the pupil membership           

                                                                                

10  count day and not later than the twenty-fourth Wednesday after              

                                                                                

11  the supplemental count day, an intermediate district shall submit           

                                                                                

12  to the  department  center, in a form and manner prescribed by              

                                                                                

13  the  department  center, the audited enrollment and attendance              

                                                                                

14  data for the pupils of its constituent districts and of the                 

                                                                                

15  intermediate district.  If an intermediate district fails to                

                                                                                

16  transmit the audited data as required under this subsection,                

                                                                                

17  state aid due to be distributed under this act shall be withheld            

                                                                                

18  from the defaulting intermediate district immediately, beginning            

                                                                                

19  with the next payment after the failure and continuing with each            

                                                                                

20  payment until the intermediate district complies with this                  

                                                                                

21  subsection.  If an intermediate district does not comply with               

                                                                                

22  this subsection by the end of the fiscal year, the intermediate             

                                                                                

23  district forfeits the amount withheld.                                      

                                                                                

24      (3) Except as otherwise provided in this section, each                      

                                                                                

25  district shall provide at least  180 days of pupil instruction              

                                                                                

26  and a number of  1,098 hours of pupil instruction.  at least                

                                                                                

27  equal to the required minimum number of hours of pupil                      


                                                                                

1   instruction required for 2000-2001 under section 1284 of the                

                                                                                

2   revised school code, MCL 380.1284.  Except as otherwise provided            

                                                                                

3   in this act, a district failing to hold 180 days of pupil                   

                                                                                

4   instruction shall forfeit from its total state aid allocation for           

                                                                                

5   each day of failure an amount equal to 1/180 of its total state             

                                                                                

6   aid allocation.  Except as otherwise provided in this act, a                

                                                                                

7   district failing to comply with the required minimum hours of               

                                                                                

8   pupil instruction under this subsection shall forfeit from its              

                                                                                

9   total state aid allocation an amount determined by applying a               

                                                                                

10  ratio of the number of hours the district was in noncompliance in           

                                                                                

11  relation to the required minimum number of hours under this                 

                                                                                

12  subsection.   A district failing to meet both the 180 days of               

                                                                                

13  pupil instruction requirement and the minimum number of hours of            

                                                                                

14  pupil instruction requirement under this subsection shall be                

                                                                                

15  penalized only the higher of the 2 amounts calculated under the             

                                                                                

16  forfeiture provisions of this subsection.  Not later than August            

                                                                                

17  1, the board of each district shall certify to the department the           

                                                                                

18  number of  days and  hours of pupil instruction in the previous             

                                                                                

19  school year.  If the district did not  hold at least 180 days               

                                                                                

20  and  provide at least the required minimum number of hours of               

                                                                                

21  pupil instruction under this subsection, the deduction of state             

                                                                                

22  aid shall be made in the following fiscal year from the first               

                                                                                

23  payment of state school aid.  A district is not subject to                  

                                                                                

24  forfeiture of funds under this subsection for a fiscal year in              

                                                                                

25  which a forfeiture was already imposed under subsection  (7)                

                                                                                

26  (6) Days or hours  Hours lost because of strikes or teachers'            

                                                                                

27  conferences shall not be counted as days or hours of pupil                  


    House Bill No. 4401 as amended June 18, 2003                                

1   instruction.  <<A district not having at least 75% of the                   

                                                                                

2   district's membership in attendance on any day of pupil                     

                                                                                

3   instruction shall receive state aid in that proportion of 1/180             

                                                                                

4   that the actual percent of attendance bears to the specified                

                                                                                

5   percentage.>> The superintendent shall promulgate rules for the             

                                                                                

6   implementation of this subsection.                                          

                                                                                

7       (4) Except as otherwise provided in this subsection, the                    

                                                                                

8   first  2 days  30 hours for which pupil instruction is not                  

                                                                                

9   provided because of conditions not within the control of school             

                                                                                

10  authorities, such as severe storms, fires, epidemics, or health             

                                                                                

11  conditions as defined by the city, county, or state health                  

                                                                                

12  authorities, shall be counted as  days  hours of pupil                      

                                                                                

13  instruction.  In addition, for  2001-2002  2002-2003 only, the              

                                                                                

14  department shall count as days of pupil instruction not more than           

                                                                                

15  4  5 additional days, and shall count as hours of pupil                    

                                                                                

16  instruction not more than  24  30 hours, for which pupil                    

                                                                                

17  instruction was not provided in a district  after May 27, 2002              

                                                                                

18  from April 3, 2003 to April 11, 2003 due to a  train derailment             

                                                                                

19  involving hazardous materials  storm.  Subsequent such  days                

                                                                                

20  hours shall not be counted as  days  hours of pupil instruction.            

                                                                                

21      (5) A district shall not forfeit part of its state aid                      

                                                                                

22  appropriation because it adopts or has in existence an                      

                                                                                

23  alternative scheduling program for pupils in kindergarten if the            

                                                                                

24  program provides at least the number of hours required under                

                                                                                

25  subsection (3) for a full-time equated membership for a pupil in            

                                                                                

26  kindergarten as provided under section 6(4).                                

                                                                                

27      (6) Upon application by the district for a particular fiscal                


                                                                                

1   year, the superintendent may waive the minimum number of days of            

                                                                                

2   pupil instruction requirement of subsection (3) for a district if           

                                                                                

3   the district has adopted an experimental school year schedule in            

                                                                                

4   1 or more buildings in the district if the experimental school              

                                                                                

5   year schedule provides the required minimum number of hours of              

                                                                                

6   pupil instruction under subsection (3) or more and is consistent            

                                                                                

7   with all state board policies on school improvement and                     

                                                                                

8   restructuring.  If a district applies for and receives a waiver             

                                                                                

9   under this subsection and complies with the terms of the waiver,            

                                                                                

10  for the fiscal year covered by the waiver the district is not               

                                                                                

11  subject to forfeiture under this section of part of its state aid           

                                                                                

12  allocation for the specific building or program covered by the              

                                                                                

13  waiver.                                                                     

                                                                                

14      (6)  (7)  Not later than April 15 of each fiscal year, the                  

                                                                                

15  board of each district shall certify to the department the                  

                                                                                

16  planned number of  days and  hours of pupil instruction in the              

                                                                                

17  district for the school year ending in the fiscal year.  In                 

                                                                                

18  addition to any other penalty or forfeiture under this section,             

                                                                                

19  if at any time the department determines that 1 or more of the              

                                                                                

20  following has occurred in a district, the district shall forfeit            

                                                                                

21  in the current fiscal year beginning in the next payment to be              

                                                                                

22  calculated by the department a proportion of the funds due to the           

                                                                                

23  district under this act that is equal to the proportion below               

                                                                                

24  180 days and  the required minimum number of hours of pupil                

                                                                                

25  instruction under subsection (3), as specified in the following:            

                                                                                

26      (a) The district fails to operate its schools for at least                  

                                                                                

27  180 days and  the required minimum number of hours of pupil                


                                                                                

1   instruction under subsection (3) in a school year, including                

                                                                                

2   days  hours counted under subsection (4).                                  

                                                                                

3       (b) The board of the district takes formal action not to                    

                                                                                

4   operate its schools for at least  180 days and  the required                

                                                                                

5   minimum number of hours of pupil instruction under subsection (3)           

                                                                                

6   in a school year, including  days  hours counted under subsection           

                                                                                

7   (4).                                                                        

                                                                                

8       (7)  (8)  In providing the minimum number of hours of pupil                 

                                                                                

9   instruction required under subsection (3), a district shall use             

                                                                                

10  the following guidelines, and a district shall maintain records             

                                                                                

11  to substantiate its compliance with the following guidelines:               

                                                                                

12      (a) Except as otherwise provided in this subsection, a pupil                

                                                                                

13  must be scheduled for at least the required minimum number of               

                                                                                

14  hours of instruction, excluding study halls, or at least the sum            

                                                                                

15  of 90 hours plus the required minimum number of hours of                    

                                                                                

16  instruction, including up to 2 study halls.                                 

                                                                                

17      (b) The time a pupil is assigned to any tutorial activity in                

                                                                                

18  a block schedule may be considered instructional time, unless               

                                                                                

19  that time is determined in an audit to be a study hall period.              

                                                                                

20      (c) A pupil in grades 9 to 12 for whom a reduced schedule is                

                                                                                

21  determined to be in the individual pupil's best educational                 

                                                                                

22  interest must be scheduled for a number of hours equal to at                

                                                                                

23  least 80% of the required minimum number of hours of pupil                  

                                                                                

24  instruction to be considered a full-time equivalent pupil.                  

                                                                                

25      (d) If a pupil in grades 9 to 12 who is enrolled in a                       

                                                                                

26  cooperative education program or a special education pupil cannot           

                                                                                

27  receive the required minimum number of hours of pupil instruction           


                                                                                

1   solely because of travel time between instructional sites during            

                                                                                

2   the school day, that travel time, up to a maximum of 3 hours per            

                                                                                

3   school week, shall be considered to be pupil instruction time for           

                                                                                

4   the purpose of determining whether the pupil is receiving the               

                                                                                

5   required minimum number of hours of pupil instruction.  However,            

                                                                                

6   if a district demonstrates to the satisfaction of the department            

                                                                                

7   that the travel time limitation under this subdivision would                

                                                                                

8   create undue costs or hardship to the district, the department              

                                                                                

9   may consider more travel time to be pupil instruction time for              

                                                                                

10  this purpose.                                                               

                                                                                

11      (8)  (9)  The department shall apply the guidelines under                   

                                                                                

12  subsection  (8)  (7) in calculating the full-time equivalency of            

                                                                                

13  pupils.                                                                     

                                                                                

14      (9)  (10)  Upon application by the district for a particular                

                                                                                

15  fiscal year, the superintendent may waive for a district the  180           

                                                                                

16  days or  minimum number of hours of pupil instruction requirement           

                                                                                

17  of subsection (3) for a department-approved alternative education           

                                                                                

18  program.  If a district applies for and receives a waiver under             

                                                                                

19  this subsection and complies with the terms of the waiver, for              

                                                                                

20  the fiscal year covered by the waiver the district is not subject           

                                                                                

21  to forfeiture under this section for the specific program covered           

                                                                                

22  by the waiver.                                                              

                                                                                

23      (10)  (11) Beginning in 2000-2001, a  A district may count up               

                                                                                

24  to 51 hours of professional development for teachers, including             

                                                                                

25  the 5 hours of online professional development provided by the              

                                                                                

26  Michigan virtual university under section 98, as hours of pupil             

                                                                                

27  instruction.  A district that elects to use this exception shall            


                                                                                

1   notify the department of its election.                                      

                                                                                

2       Sec. 104a.  (1) In order to receive state aid under this                    

                                                                                

3   act, a district shall comply with this section and shall                    

                                                                                

4   administer state assessments to high school pupils in the subject           

                                                                                

5   areas of communications skills, mathematics, science, and social            

                                                                                

6   studies.  If the department of treasury or the Michigan                     

                                                                                

7   assessment governing board, as applicable, determines that it               

                                                                                

8   would be consistent with the purposes of this section, the                  

                                                                                

9   department of treasury or the Michigan assessment governing                 

                                                                                

10  board, as applicable, may designate the grade 11 Michigan                   

                                                                                

11  education assessment program tests or the ACT/ACT work keys tests           

                                                                                

12  as the assessments to be used for the purposes of this section.             

                                                                                

13  The district shall include on the pupil's high school transcript            

                                                                                

14  all of the following:                                                       

                                                                                

15      (a) For each high school graduate who has completed a subject               

                                                                                

16  area assessment under this section, the pupil's scaled score on             

                                                                                

17  the assessment.                                                             

                                                                                

18      (b) If the pupil's scaled score on a subject area assessment                

                                                                                

19  falls within the range required under subsection (2) for a                  

                                                                                

20  category established under subsection (2), an indication that the           

                                                                                

21  pupil has achieved state endorsement for that subject area.                 

                                                                                

22      (c) The number of school days the pupil was in attendance at                

                                                                                

23  school each school year during high school and the total number             

                                                                                

24  of school days in session for each of those school years.                   

                                                                                

25      (2) The department of treasury shall develop scaled scores                  

                                                                                

26  for reporting subject area assessment results for each of the               

                                                                                

27  subject areas under this section.  The  superintendent                      


                                                                                

1   department of treasury shall establish 3 categories for each                

                                                                                

2   subject area indicating basic competency, above average, and                

                                                                                

3   outstanding, and shall establish the scaled score range required            

                                                                                

4   for each category.  The department of treasury shall design and             

                                                                                

5   distribute to districts, intermediate districts, and nonpublic              

                                                                                

6   schools a simple and concise document that describes these                  

                                                                                

7   categories in each subject area and indicates the scaled score              

                                                                                

8   ranges for each category in each subject area.  A district may              

                                                                                

9   award a high school diploma to a pupil who successfully completes           

                                                                                

10  local district requirements established in accordance with state            

                                                                                

11  law for high school graduation, regardless of whether the pupil             

                                                                                

12  is eligible for any state endorsement.                                      

                                                                                

13      (3) The assessments administered for the purposes of this                   

                                                                                

14  section shall be administered to pupils during the last 30 school           

                                                                                

15  days of grade 11.  The department of treasury shall ensure that             

                                                                                

16  the assessments are scored and the scores are returned to pupils,           

                                                                                

17  their parents or legal guardians, and districts not later than              

                                                                                

18  the beginning of the pupil's first semester of grade 12.  The               

                                                                                

19  department of treasury shall arrange for those portions of a                

                                                                                

20  pupil's assessment that cannot be scored mechanically to be                 

                                                                                

21  scored in Michigan by persons who are Michigan teachers, retired            

                                                                                

22  Michigan teachers, or Michigan school administrators and who have           

                                                                                

23  been trained in scoring the assessments.  The returned scores               

                                                                                

24  shall indicate the pupil's scaled score for each subject area               

                                                                                

25  assessment, the range of scaled scores for each subject area, and           

                                                                                

26  the range of scaled scores required for each category established           

                                                                                

27  under subsection (2).  In reporting the scores to pupils,                   


                                                                                

1   parents, and schools, the department of treasury shall provide              

                                                                                

2   specific, meaningful, and timely feedback on the pupil's                    

                                                                                

3   performance on the assessment.                                              

                                                                                

4       (4) For each pupil who does not achieve state endorsement in                

                                                                                

5   1 or more subject areas, the board of the district in which the             

                                                                                

6   pupil is enrolled shall provide that there be at least 1 meeting            

                                                                                

7   attended by at least the pupil and a member of the district's               

                                                                                

8   staff or a local or intermediate district consultant who is                 

                                                                                

9   proficient in the measurement and evaluation of pupils.  The                

                                                                                

10  district may provide the meeting as a group meeting for pupils in           

                                                                                

11  similar circumstances.  If the pupil is a minor, the district               

                                                                                

12  shall invite and encourage the pupil's parent, legal guardian, or           

                                                                                

13  person in loco parentis to attend the meeting and shall mail a              

                                                                                

14  notice of the meeting to the pupil's parent, legal guardian, or             

                                                                                

15  person in loco parentis.  The purpose of this meeting and any               

                                                                                

16  subsequent meeting under this subsection shall be to determine an           

                                                                                

17  educational program for the pupil designed to have the pupil                

                                                                                

18  achieve state endorsement in each subject area in which he or she           

                                                                                

19  did not achieve state endorsement.  In addition, a district may             

                                                                                

20  provide for subsequent meetings with the pupil conducted by a               

                                                                                

21  high school counselor or teacher designated by the pupil's high             

                                                                                

22  school principal, and shall invite and encourage the pupil's                

                                                                                

23  parent, legal guardian, or person in loco parentis to attend the            

                                                                                

24  subsequent meetings.  The district shall provide special programs           

                                                                                

25  for the pupil or develop a program using the educational programs           

                                                                                

26  regularly provided by the district unless the board of the                  

                                                                                

27  district decides otherwise and publishes and explains its                   


                                                                                

1   decision in a public justification report.                                  

                                                                                

2       (5) A pupil who wants to repeat an assessment administered                  

                                                                                

3   under this section may repeat the assessment, without charge to             

                                                                                

4   the pupil, in the next school year or after graduation.  An                 

                                                                                

5   individual may repeat an assessment at any time the district                

                                                                                

6   administers an applicable assessment instrument or during a                 

                                                                                

7   retesting period under subsection (7).                                      

                                                                                

8       (6) The department of treasury shall ensure that the length                 

                                                                                

9   of the assessments used for the purposes of this section and the            

                                                                                

10  combined total time necessary to administer all of the                      

                                                                                

11  assessments are the shortest possible that will still maintain              

                                                                                

12  the degree of reliability and validity of the assessment results            

                                                                                

13  determined necessary by the department of treasury.  The                    

                                                                                

14  department of treasury shall ensure that the maximum total                  

                                                                                

15  combined length of time that schools are required to set aside              

                                                                                

16  for administration of all of the assessments used for the                   

                                                                                

17  purposes of this section does not exceed 8 hours.  However, this            

                                                                                

18  subsection does not limit the amount of time that individuals may           

                                                                                

19  have to complete the assessments.                                           

                                                                                

20      (7) The department of treasury shall establish, schedule, and               

                                                                                

21  arrange periodic retesting periods throughout the year for                  

                                                                                

22  individuals who desire to repeat an assessment under this                   

                                                                                

23  section.  The department of treasury shall coordinate the                   

                                                                                

24  arrangements for administering the repeat assessments and shall             

                                                                                

25  ensure that the retesting is made available at least within each            

                                                                                

26  intermediate district and, to the extent possible, within each              

                                                                                

27  district.                                                                   


                                                                                

1       (8) A district shall provide accommodations to a pupil with                 

                                                                                

2   disabilities for the assessments required under this section, as            

                                                                                

3   provided under section 504 of title V of the rehabilitation act             

                                                                                

4   of 1973, Public Law 93-112, 29 U.S.C. 794; subtitle A of title II           

                                                                                

5   of the Americans with disabilities act of 1990, Public Law                  

                                                                                

6   101-336, 42 U.S.C. 12131 to 12134; and the implementing                     

                                                                                

7   regulations for those statutes.                                             

                                                                                

8       (9) For the purposes of this section, the  superintendent                   

                                                                                

9   department of treasury shall develop or select and approve                  

                                                                                

10  assessment instruments to measure pupil performance in                      

                                                                                

11  communications skills, mathematics, social studies, and science.            

                                                                                

12  The  Unless the department of treasury selects and approves the            

                                                                                

13  ACT/ACT work keys tests, the assessment instruments shall be                

                                                                                

14  based on the model core academic content standards objectives               

                                                                                

15  under section 1278 of the revised school code, MCL 380.1278.                

                                                                                

16      (10) Upon written request by the pupil's parent or legal                    

                                                                                

17  guardian stating that the request is being made for the purpose             

                                                                                

18  of providing the pupil with an opportunity to qualify to take 1             

                                                                                

19  or more postsecondary courses as an eligible student under the              

                                                                                

20  postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to           

                                                                                

21  388.524, the board of a district shall allow a pupil who is in at           

                                                                                

22  least grade 10 to take an assessment administered under this                

                                                                                

23  section without charge at any time the district regularly                   

                                                                                

24  administers the assessment or during a retesting period                     

                                                                                

25  established under subsection (7).  A district is not required to            

                                                                                

26  include in an annual education report, or in any other report               

                                                                                

27  submitted to the department of treasury for accreditation                   


                                                                                

1   purposes, results of assessments taken under this subsection by a           

                                                                                

2   pupil in grade 11 or lower until the results of that pupil's                

                                                                                

3   graduating class are otherwise reported.                                    

                                                                                

4       (11) All assessment instruments developed or selected and                   

                                                                                

5   approved by the state under any statute or rule for a purpose               

                                                                                

6   related to K to 12 education shall be objective-oriented and                

                                                                                

7   consistent with the model core academic content standards                   

                                                                                

8   objectives under section 1278 of the revised school code,                   

                                                                                

9   MCL 380.1278.                                                               

                                                                                

10      (12) A person who has graduated from high school after 1996                 

                                                                                

11  and who has not previously taken an assessment under this section           

                                                                                

12  may take an assessment used for the purposes of this section,               

                                                                                

13  without charge to the person, at the district from which he or              

                                                                                

14  she graduated from high school at any time that district                    

                                                                                

15  administers the assessment or during a retesting period scheduled           

                                                                                

16  under subsection (7) and have his or her scaled score on the                

                                                                                

17  assessment included on his or her high school transcript.  If the           

                                                                                

18  person's scaled score on a subject area assessment falls within             

                                                                                

19  the range required under subsection (2) for a category                      

                                                                                

20  established under subsection (2), the district shall also                   

                                                                                

21  indicate on the person's high school transcript that the person             

                                                                                

22  has achieved state endorsement for that subject area.                       

                                                                                

23      (13) A child who is a student in a nonpublic school or home                 

                                                                                

24  school may take an assessment under this section.  To take an               

                                                                                

25  assessment, a child who is a student in a home school shall                 

                                                                                

26  contact the district in which the child resides, and that                   

                                                                                

27  district shall administer the assessment, or the child may take             


                                                                                

1   the assessment at a nonpublic school if allowed by the nonpublic            

                                                                                

2   school.  Upon request from a nonpublic school, the department of            

                                                                                

3   treasury shall supply assessments and the nonpublic school may              

                                                                                

4   administer the assessment.                                                  

                                                                                

5       (14) The purpose of the assessment under this section is to                 

                                                                                

6   assess pupil performance in mathematics, science, social studies,           

                                                                                

7   and communication arts for the purpose of improving academic                

                                                                                

8   achievement and establishing a statewide standard of competency.            

                                                                                

9   The assessment under this section provides a common measure of              

                                                                                

10  data that will contribute to the improvement of Michigan schools'           

                                                                                

11  curriculum and instruction by encouraging alignment with                    

                                                                                

12  Michigan's curriculum framework standards.  These standards are             

                                                                                

13  based upon the expectations of what pupils should know and be               

                                                                                

14  able to do by the end of grade 11.                                          

                                                                                

15      (15) If the Michigan assessment governing board is                          

                                                                                

16  established by law, the Michigan assessment governing board shall           

                                                                                

17  administer this section and shall have all of the powers and                

                                                                                

18  duties as otherwise provided under this section for the                     

                                                                                

19  department  or the superintendent  of treasury.                             

                                                                                

20      (16) As used in this section:                                               

                                                                                

21      (a) "Communications skills" means reading and writing.                      

                                                                                

22      (b) "Social studies" means geography, history, economics, and               

                                                                                

23  American government.                                                        

                                                                                

24      Sec. 105.  (1) In order to avoid a penalty under this                       

                                                                                

25  section, and in order to count a nonresident pupil residing                 

                                                                                

26  within the same intermediate district in membership without the             

                                                                                

27  approval of the pupil's district of residence, a district shall             


                                                                                

1   comply with this section.                                                   

                                                                                

2       (2) Except as otherwise provided in this section, a district                

                                                                                

3   shall determine whether or not it will accept applications for              

                                                                                

4   enrollment by nonresident applicants residing within the same               

                                                                                

5   intermediate district for the next school year.  If the district            

                                                                                

6   determines to accept applications for enrollment of a number of             

                                                                                

7   nonresidents, beyond those entitled to preference under this                

                                                                                

8   section, the district shall use the following procedures for                

                                                                                

9   accepting applications from and enrolling nonresidents:                     

                                                                                

10      (a) The district shall publish the grades, schools, and                     

                                                                                

11  special programs, if any, for which enrollment may be available             

                                                                                

12  to, and for which applications will be accepted from, nonresident           

                                                                                

13  applicants residing within the same intermediate district.                  

                                                                                

14      (b) If the district has a limited number of positions                       

                                                                                

15  available for nonresidents residing within the same intermediate            

                                                                                

16  district in a grade, school, or program, all of the following               

                                                                                

17  apply to accepting applications for and enrollment of                       

                                                                                

18  nonresidents in that grade, school, or program:                             

                                                                                

19                                                                               (i) The district shall do all of the following not later than                       

                                                                                

20  the second Friday in August:                                                

                                                                                

21      (A) Provide notice to the general public that applications                  

                                                                                

22  will be taken for a 15-day period from nonresidents residing                

                                                                                

23  within the same intermediate district for enrollment in that                

                                                                                

24  grade, school, or program.  The notice shall identify the 15-day            

                                                                                

25  period and the place and manner for submitting applications.                

                                                                                

26      (B) During the application period under sub-subparagraph (A),               

                                                                                

27  accept applications from nonresidents residing within the same              


                                                                                

1   intermediate district for enrollment in that grade, school, or              

                                                                                

2   program.                                                                    

                                                                                

3       (C) Within 15 days after the end of the application period                  

                                                                                

4   under sub-subparagraph (A), using the procedures and preferences            

                                                                                

5   required under this section, determine which nonresident                    

                                                                                

6   applicants will be allowed to enroll in that grade, school, or              

                                                                                

7   program, using the random draw system required under                        

                                                                                

8   subsection (13) as necessary, and notify the parent or legal                

                                                                                

9   guardian of each nonresident applicant of whether or not the                

                                                                                

10  applicant may enroll in the district.  The notification to                  

                                                                                

11  parents or legal guardians of nonresident applicants accepted for           

                                                                                

12  enrollment shall contain notification of the date by which the              

                                                                                

13  applicant must enroll in the district and procedures for                    

                                                                                

14  enrollment.                                                                 

                                                                                

15      (ii) Beginning on the third Monday in August and not later                   

                                                                                

16  than the end of the first week of school, if any positions become           

                                                                                

17  available in a grade, school, or program due to accepted                    

                                                                                

18  applicants failing to enroll or to more positions being added,              

                                                                                

19  the district may enroll nonresident applicants from the waiting             

                                                                                

20  list maintained under subsection (13), offering enrollment in the           

                                                                                

21  order that applicants appear on the waiting list.  If there are             

                                                                                

22  still positions available after enrolling all applicants from the           

                                                                                

23  waiting list who desire to enroll, the district may not fill                

                                                                                

24  those positions until the second semester enrollment under                  

                                                                                

25  subsection (3), as provided under that subsection, or until the             

                                                                                

26  next school year.                                                           

                                                                                

27      (c) For a grade, school, or program that has an unlimited                   


                                                                                

1   number of positions available for nonresidents residing within              

                                                                                

2   the same intermediate district, all of the following apply to               

                                                                                

3   enrollment of nonresidents in that grade, school, or program:               

                                                                                

4                                                                                (i) The district may accept applications for enrollment in                          

                                                                                

5   that grade, school, or program, and may enroll nonresidents                 

                                                                                

6   residing within the same intermediate district in that grade,               

                                                                                

7   school, or program, until the end of the first week of school.              

                                                                                

8   The district shall provide notice to the general public of the              

                                                                                

9   place and manner for submitting applications and, if the district           

                                                                                

10  has a limited application period, the notice shall include the              

                                                                                

11  dates of the application period.  The application period shall be           

                                                                                

12  at least a 15-day period.                                                   

                                                                                

13      (ii) Not later than the end of the first week of school, the                 

                                                                                

14  district shall notify the parent or legal guardian of each                  

                                                                                

15  nonresident applicant who is accepted for enrollment that the               

                                                                                

16  applicant has been accepted for enrollment in the grade, school,            

                                                                                

17  or program and of the date by which the applicant must enroll in            

                                                                                

18  the district and the procedures for enrollment.                             

                                                                                

19      (3) If a district determines during the first semester of a                 

                                                                                

20  school year that it has positions available for enrollment of a             

                                                                                

21  number of nonresidents residing within the same intermediate                

                                                                                

22  district, beyond those entitled to preference under this section,           

                                                                                

23  for the second semester of the school year, the district may                

                                                                                

24  accept applications from and enroll nonresidents residing within            

                                                                                

25  the same intermediate district for the second semester using the            

                                                                                

26  following procedures:                                                       

                                                                                

27      (a) Not later than 2 weeks before the end of the first                      


                                                                                

1   semester, the district shall publish the grades, schools, and               

                                                                                

2   special programs, if any, for which enrollment for the second               

                                                                                

3   semester may be available to, and for which applications will be            

                                                                                

4   accepted from, nonresident applicants residing within the same              

                                                                                

5   intermediate district.                                                      

                                                                                

6       (b) During the last 2 weeks of the first semester, the                      

                                                                                

7   district shall accept applications from nonresidents residing               

                                                                                

8   within the same intermediate district for enrollment for the                

                                                                                

9   second semester in the available grades, schools, and programs.             

                                                                                

10      (c) By the beginning of the second semester, using the                      

                                                                                

11  procedures and preferences required under this section, the                 

                                                                                

12  district shall determine which nonresident applicants will be               

                                                                                

13  allowed to enroll in the district for the second semester and               

                                                                                

14  notify the parent or legal guardian of each nonresident applicant           

                                                                                

15  residing within the same intermediate district of whether or not            

                                                                                

16  the applicant may enroll in the district.  The notification to              

                                                                                

17  parents or legal guardians of nonresident applicants accepted for           

                                                                                

18  enrollment shall contain notification of the date by which the              

                                                                                

19  applicant must enroll in the district and procedures for                    

                                                                                

20  enrollment.                                                                 

                                                                                

21      (4) If deadlines similar to those described in subsection (2)               

                                                                                

22  or (3) have been established in an intermediate district, and if            

                                                                                

23  those deadlines are not later than the deadlines under                      

                                                                                

24  subsection (2) or (3), the districts within the intermediate                

                                                                                

25  district may use those deadlines.                                           

                                                                                

26      (5) A district offering to enroll nonresident applicants                    

                                                                                

27  residing within the same intermediate district may limit the                


                                                                                

1   number of nonresident pupils it accepts in a grade, school, or              

                                                                                

2   program, at its discretion, and may use that limit as the reason            

                                                                                

3   for refusal to enroll an applicant.                                         

                                                                                

4       (6) A nonresident applicant residing within the same                        

                                                                                

5   intermediate district shall not be granted or refused enrollment            

                                                                                

6   based on intellectual, academic, artistic, or other ability,                

                                                                                

7   talent, or accomplishment, or lack thereof, or based on a mental            

                                                                                

8   or physical disability, except that a district may refuse to                

                                                                                

9   admit a nonresident applicant if the applicant does not meet the            

                                                                                

10  same criteria, other than residence, that an applicant who is a             

                                                                                

11  resident of the district must meet to be accepted for enrollment            

                                                                                

12  in a grade or a specialized, magnet, or intra-district choice               

                                                                                

13  school or program to which the applicant applies.                           

                                                                                

14      (7) A nonresident applicant residing within the same                        

                                                                                

15  intermediate district shall not be granted or refused enrollment            

                                                                                

16  based on age, except that a district may refuse to admit a                  

                                                                                

17  nonresident applicant applying for a program that is not                    

                                                                                

18  appropriate for the age of the applicant.                                   

                                                                                

19      (8) A nonresident applicant residing within the same                        

                                                                                

20  intermediate district shall not be granted or refused enrollment            

                                                                                

21  based upon religion, race, color, national origin, sex, height,             

                                                                                

22  weight, marital status, or athletic ability, or, generally, in              

                                                                                

23  violation of any state or federal law prohibiting                           

                                                                                

24  discrimination.                                                             

                                                                                

25      (9) A district may refuse to enroll a nonresident applicant                 

                                                                                

26  if the applicant is, or has been within the preceding 2 years,              

                                                                                

27  suspended from another school or if the applicant has ever been             


                                                                                

1   expelled from another school.                                               

                                                                                

2       (10) A district shall continue to allow a pupil who was                     

                                                                                

3   enrolled in and attended the district under this section in the             

                                                                                

4   school year or semester immediately preceding the school year or            

                                                                                

5   semester in question to enroll in the district until the pupil              

                                                                                

6   graduates from high school.  This subsection does not prohibit a            

                                                                                

7   district from expelling a pupil described in this subsection for            

                                                                                

8   disciplinary reasons.                                                       

                                                                                

9       (11) A district shall give preference for enrollment under                  

                                                                                

10  this section over all other nonresident applicants residing                 

                                                                                

11  within the same intermediate district to other school-age                   

                                                                                

12  children who reside in the same household as a pupil described in           

                                                                                

13  subsection (10).                                                            

                                                                                

14      (12) If a nonresident pupil was enrolled in and attending                   

                                                                                

15  school in a district as a nonresident pupil in the 1995-96 school           

                                                                                

16  year and continues to be enrolled continuously each school year             

                                                                                

17  in that district, the district shall allow that nonresident pupil           

                                                                                

18  to continue to enroll in and attend school in the district until            

                                                                                

19  high school graduation, without requiring the nonresident pupil             

                                                                                

20  to apply for enrollment under this section.  This subsection does           

                                                                                

21  not prohibit a district from expelling a pupil described in this            

                                                                                

22  subsection for disciplinary reasons.                                        

                                                                                

23      (13) If the number of qualified nonresident applicants                      

                                                                                

24  eligible for acceptance in a school, grade, or program does not             

                                                                                

25  exceed the positions available for nonresident pupils in the                

                                                                                

26  school, grade, or program, the school district shall accept for             

                                                                                

27  enrollment all of the qualified nonresident applicants eligible             


                                                                                

1   for acceptance.  If the number of qualified nonresident                     

                                                                                

2   applicants residing within the same intermediate district                   

                                                                                

3   eligible for acceptance exceeds the positions available in a                

                                                                                

4   grade, school, or program in a district for nonresident pupils,             

                                                                                

5   the district shall use a random draw system, subject to the need            

                                                                                

6   to abide by state and federal antidiscrimination laws and court             

                                                                                

7   orders and subject to preferences allowed by this section.  The             

                                                                                

8   district shall develop and maintain a waiting list based on the             

                                                                                

9   order in which nonresident applicants were drawn under this                 

                                                                                

10  random draw system.                                                         

                                                                                

11      (14) If a district, or the nonresident applicant, requests                  

                                                                                

12  the district in which a nonresident applicant resides to supply             

                                                                                

13  information needed by the district for evaluating the applicant's           

                                                                                

14  application for enrollment or for enrolling the applicant, the              

                                                                                

15  district of residence shall provide that information on a timely            

                                                                                

16  basis.                                                                      

                                                                                

17      (15) If a district is subject to a court-ordered                            

                                                                                

18  desegregation plan, and if the court issues an order prohibiting            

                                                                                

19  pupils residing in that district from enrolling in another                  

                                                                                

20  district or prohibiting pupils residing in another district from            

                                                                                

21  enrolling in that district, this section is subject to the court            

                                                                                

22  order.                                                                      

                                                                                

23      (16) This section does not require a district to provide                    

                                                                                

24  transportation for a nonresident pupil enrolled in the district             

                                                                                

25  under this section or for a resident pupil enrolled in another              

                                                                                

26  district under this section.  However, at the time a nonresident            

                                                                                

27  pupil enrolls in the district, a district shall provide to the              


                                                                                

1   pupil's parent or legal guardian information on available                   

                                                                                

2   transportation to and from the school in which the pupil                    

                                                                                

3   enrolls.                                                                    

                                                                                

4       (17) If the total number of pupils enrolled and counted in                  

                                                                                

5   membership in a district for 2001-2002 is less than 90% of the              

                                                                                

6   total number of pupils residing in the district who are enrolled            

                                                                                

7   and counted in membership in either that district or 1 or more              

                                                                                

8   other districts for 2001-2002, the total amount of money                    

                                                                                

9   allocated to that district for 2001-2002 under sections 22a and             

                                                                                

10  22b shall be adjusted so that the district receives a total                 

                                                                                

11  allocation under those sections equal to the amount the district            

                                                                                

12  would receive under those sections if exactly 90% of the pupils             

                                                                                

13  residing in the district who are enrolled and counted in either             

                                                                                

14  that district or 1 or more other districts were enrolled and                

                                                                                

15  counted in membership in that district.                                     

                                                                                

16      (18) Beginning in 2002-2003, if the total number of pupils                  

                                                                                

17  enrolled and counted in membership in a district for a fiscal               

                                                                                

18  year is less than 90% of the sum of the total number of pupils              

                                                                                

19  residing in the district who are enrolled and counted in                    

                                                                                

20  membership for the fiscal year in that district plus the total              

                                                                                

21  number of pupils residing in that district who are enrolled and             

                                                                                

22  counted in membership for the fiscal year in 1 or more other                

                                                                                

23  districts under this section or section 105c, the department                

                                                                                

24  shall calculate the total amount of money that would be allocated           

                                                                                

25  to that district for the fiscal year under sections 22a and 22b             

                                                                                

26  if exactly 90% of the sum of the total number of pupils residing            

                                                                                

27  in the district who are enrolled and counted in membership for              


                                                                                

1   the fiscal year in that district plus the total number of pupils            

                                                                                

2   residing in that district who are enrolled and counted in                   

                                                                                

3   membership for the fiscal year in 1 or more other districts under           

                                                                                

4   this section or section 105c were enrolled and counted in                   

                                                                                

5   membership in that district for the fiscal year.  The department            

                                                                                

6   shall use this calculation to calculate a payment under                     

                                                                                

7   subsection (19).                                                            

                                                                                

8       (19) Subject to subsection (20), beginning in 2002-2003, the                

                                                                                

9   department shall make a payment to a district described in                  

                                                                                

10  subsection (18) in an amount equal to a percentage of the                   

                                                                                

11  difference between the total amount of money the district would             

                                                                                

12  receive under sections 22a and 22b for the particular fiscal year           

                                                                                

13  as otherwise calculated under this act and the amount calculated            

                                                                                

14  under subsection (18).  This percentage is as follows:                      

                                                                                

15      (a) For 2002-2003, 75%.                                                     

                                                                                

16      (b) For 2003-2004, 50%.                                                     

                                                                                

17      (c) For 2004-2005, 25%.                                                     

                                                                                

18      (d) For 2005-2006 and succeeding fiscal years, 0%.                          

                                                                                

19      (20) A district is not eligible for a payment under                         

                                                                                

20  subsection (19) if the district receives additional funding for             

                                                                                

21  the applicable fiscal year due to the membership calculation                

                                                                                

22  under section 6(4)(y).                                                      

                                                                                

23      (17)  (21)  A district may participate in a cooperative                     

                                                                                

24  education program with 1 or more other districts or intermediate            

                                                                                

25  districts whether or not the district enrolls any nonresidents              

                                                                                

26  pursuant to this section.                                                   

                                                                                

27      (18)  (22)  A district that, pursuant to this section,                      


                                                                                

1   enrolls a nonresident pupil who is eligible for special education           

                                                                                

2   programs and services according to statute or rule, or who is a             

                                                                                

3   child with disabilities, as defined under the individuals with              

                                                                                

4   disabilities education act, title VI of Public Law 91-230, 20               

                                                                                

5   U.S.C. 1400 to 1420, 1431 to 1461, and 1471 to 1487, shall be               

                                                                                

6   considered to be the resident district of the pupil for the                 

                                                                                

7   purpose of providing the pupil with a free appropriate public               

                                                                                

8   education.  Consistent with state and federal law, that district            

                                                                                

9   is responsible for developing and implementing an individualized            

                                                                                

10  education plan annually for a nonresident pupil described in this           

                                                                                

11  subsection.                                                                 

                                                                                

12      (19)  (23)  If a district does not comply with this section,                

                                                                                

13  the district forfeits 5% of the total state school aid allocation           

                                                                                

14  to the district under this act.                                             

                                                                                

15      (20)  (24)  Upon application by a district, the                             

                                                                                

16  superintendent may grant a waiver for the district from a                   

                                                                                

17  specific requirement under this section for not more than 1                 

                                                                                

18  year.                                                                       

                                                                                

19      Sec. 107.  (1) From the appropriation in section 11, there                  

                                                                                

20  is allocated an amount not to exceed  $75,000,000.00 for                    

                                                                                

21  2001-2002 and an amount not to exceed $77,500,000.00 each fiscal            

                                                                                

22  year for 2002-2003 and  $19,303,700.00 for 2003-2004 for adult              

                                                                                

23  education programs authorized under this section.  In addition,             

                                                                                

24  from the federal funds appropriated in section 11, there is                 

                                                                                

25  allocated for 2003-2004 an amount estimated at $20,696,300.00               

                                                                                

26  from the United States department of education-office of                    

                                                                                

27  elementary and secondary education, twenty-first century                    


                                                                                

1   community learning center funds.                                            

                                                                                

2       (2) To be eligible to be a participant funded under this                    

                                                                                

3   section, a person shall be enrolled in an adult basic education             

                                                                                

4   program, an adult English as a second language program, a general           

                                                                                

5   education development (G.E.D.)  test preparation program, a job             

                                                                                

6   or employment related program, or a high school completion                  

                                                                                

7   program, that meets the requirements of this section, and shall             

                                                                                

8   meet either of the following, as applicable:                                

                                                                                

9       (a) If the individual has obtained a high school diploma or a               

                                                                                

10  general education development (G.E.D.)  certificate, the                    

                                                                                

11  individual meets 1 of the following:                                        

                                                                                

12                                                                               (i) Is less than 20 years of age on September 1 of the school                       

                                                                                

13  year and is enrolled in the state technical institute and                   

                                                                                

14  rehabilitation center.                                                      

                                                                                

15      (ii) Is less than 20 years of age on September 1 of the                      

                                                                                

16  school year, is not attending an institution of higher education,           

                                                                                

17  and is enrolled in a job or employment-related program through a            

                                                                                

18  referral by an employer.                                                    

                                                                                

19      (iii) Is enrolled in an English as a second language                         

                                                                                

20  program.                                                                    

                                                                                

21      (iv) Is enrolled in a high school completion program.                        

                                                                                

22      (b) If the individual has not obtained a high school diploma                

                                                                                

23  or G.E.D. certificate, the individual meets 1 of the following:             

                                                                                

24                                                                               (i) Is at least 20 years of age on September 1 of the school                        

                                                                                

25  year.                                                                       

                                                                                

26      (ii) Is at least 16 years of age on September 1 of the school                

                                                                                

27  year, has been permanently expelled from school under section               


                                                                                

1   1311(2) or 1311a of the revised school code, MCL 380.1311 and               

                                                                                

2   380.1311a, and has no appropriate alternative education program             

                                                                                

3   available through his or her district of residence.                         

                                                                                

4       (3)  The  Except as otherwise provided in subsection (4), the               

                                                                                

5   amount allocated under subsection (1) shall be distributed as               

                                                                                

6   follows:                                                                    

                                                                                

7       (a) For districts and consortia that received payments for                  

                                                                                

8   1995-96 under former section 107f and that received payments for           

                                                                                

9   1996-97 under subsection (4) of this section as in effect in                

                                                                                

10  1996-97  2001-2002 under this section, the amount allocated to              

                                                                                

11  each for  2001-2002, for 2002-2003, and for  2003-2004 shall be             

                                                                                

12  an amount each fiscal year equal to 36.76%  based on the number            

                                                                                

13  of participants served by the district or consortium for                    

                                                                                

14  2003-2004, using the amount allocated per full-time equated                 

                                                                                

15  participant under subsection (5), up to a maximum total                     

                                                                                

16  allocation under this section in an amount equal to 25.74% of the           

                                                                                

17  amount the district or consortium received for  1995-96 under               

                                                                                

18  former section 107f  2001-2002 under this section before any                

                                                                                

19  reallocations made for 2001-2002 under subsection (4).                      

                                                                                

20      (b) For districts and consortia that received payments under                

                                                                                

21  subsection (3) of this section as in effect for 1996-97, the                

                                                                                

22  amount allocated to each for 2001-2002, for 2002-2003, and for              

                                                                                

23  2003-2004 shall be an amount each fiscal year equal to the                  

                                                                                

24  product of the number of full-time equated participants actually            

                                                                                

25  enrolled and in attendance during the 1996-97 school fiscal year            

                                                                                

26  in the program funded under subsection (3) of this section as in            

                                                                                

27  effect for 1996-97 as reported to the department of career                  


                                                                                

1   development, audited, and adjusted according to subsection (10)             

                                                                                

2   of this section as in effect for 1996-97, multiplied by                     

                                                                                

3   $2,750.00.                                                                  

                                                                                

4       (c) For districts and consortia that meet the conditions of                 

                                                                                

5   both subdivisions (a) and (b), the amount allocated each fiscal             

                                                                                

6   year for 2001-2002, for 2002-2003, and for 2003-2004 shall be the           

                                                                                

7   sum of the allocations to the district or consortium under                  

                                                                                

8   subdivisions (a) and (b).                                                   

                                                                                

9       (b)  (d)  A district or consortium that received funding in                 

                                                                                

10  1996-97  2002-2003 under this section  as in effect for 1996-97            

                                                                                

11  may operate independently of a consortium or join or form a                 

                                                                                

12  consortium  for 2001-2002, for 2002-2003, or  for 2003-2004.  The           

                                                                                

13  allocation  for 2001-2002, for 2002-2003, or  for 2003-2004 to              

                                                                                

14  the district or the newly formed consortium under this subsection           

                                                                                

15  shall be determined by the department of career development and             

                                                                                

16  shall be based on the proportion of the amounts  specified in               

                                                                                

17  subdivision (a) or (b), or both,  that are attributable to the              

                                                                                

18  district or consortium that received funding in  1996-97                    

                                                                                

19  2002-2003.  A district or consortium described in this                      

                                                                                

20  subdivision shall notify the department of career development of            

                                                                                

21  its intention with regard to  2001-2002, 2002-2003, or for                  

                                                                                

22  2003-2004 by October 1,  of the affected fiscal year  2003.                 

                                                                                

23      (4) A district that operated an adult education program in                  

                                                                                

24  1996-97  2002-2003 and does not intend to operate a program in             

                                                                                

25  2001-2002, 2002-2003, or  2003-2004 shall notify the department            

                                                                                

26  of career development by October 1,  of the affected fiscal year            

                                                                                

27  2003 of its intention.  The funds intended to be allocated under            


                                                                                

1   this section to a district that does not operate a program in               

                                                                                

2   2001-2002, 2002-2003, or  2003-2004 and the unspent funds                  

                                                                                

3   originally allocated under this section to a district or                    

                                                                                

4   consortium that subsequently operates a program at less than the            

                                                                                

5   level of funding allocated under subsection (3) shall instead be            

                                                                                

6   proportionately reallocated to the other districts described in             

                                                                                

7   subsection (3)(a) that are operating an adult education program             

                                                                                

8   in  2001-2002, 2002-2003, or  2003-2004 under this section.                 

                                                                                

9       (5) The amount allocated under this section per full-time                   

                                                                                

10  equated participant is $2,850.00 for a 450-hour program.  The               

                                                                                

11  amount shall be proportionately reduced for a program offering              

                                                                                

12  less than 450 hours of instruction.                                         

                                                                                

13      (6) An adult basic education program or an adult English as a               

                                                                                

14  second language program operated on a year-round or school year             

                                                                                

15  basis may be funded under this section, subject to all of the               

                                                                                

16  following:                                                                  

                                                                                

17      (a) The program enrolls adults who are determined by an                     

                                                                                

18  appropriate assessment to be below ninth grade level in reading             

                                                                                

19  or mathematics, or both, or to lack basic English proficiency.              

                                                                                

20      (b) The program tests individuals for eligibility under                     

                                                                                

21  subdivision (a) before enrollment and tests participants to                 

                                                                                

22  determine progress after every 90 hours of attendance, using                

                                                                                

23  assessment instruments approved by the department of career                 

                                                                                

24  development.                                                                

                                                                                

25      (c) A participant in an adult basic education program is                    

                                                                                

26  eligible for reimbursement until 1 of the following occurs:                 

                                                                                

27                                                                               (i) The participant's reading and mathematics proficiency are                       


                                                                                

1   assessed at or above the ninth grade level.                                 

                                                                                

2       (ii) The participant fails to show progress on 2 successive                  

                                                                                

3   assessments after having completed at least 450 hours of                    

                                                                                

4   instruction.                                                                

                                                                                

5       (d) A funding recipient enrolling a participant in an English               

                                                                                

6   as a second language program is eligible for funding according to           

                                                                                

7   subsection (10) until the participant meets 1 of the following:             

                                                                                

8                                                                                (i) The participant is assessed as having attained basic                            

                                                                                

9   English proficiency.                                                        

                                                                                

10      (ii) The participant fails to show progress on 2 successive                  

                                                                                

11  assessments after having completed at least 450 hours of                    

                                                                                

12  instruction.  The department of career development shall provide            

                                                                                

13  information to a funding recipient regarding appropriate                    

                                                                                

14  assessment instruments for this program.                                    

                                                                                

15      (7) A general education development (G.E.D.)  test                          

                                                                                

16  preparation program operated on a year-round or school year basis           

                                                                                

17  may be funded under this section, subject to all of the                     

                                                                                

18  following:                                                                  

                                                                                

19      (a) The program enrolls adults who do not have a high school                

                                                                                

20  diploma.                                                                    

                                                                                

21      (b) The program shall administer a G.E.D. pre-test approved                 

                                                                                

22  by the department of career development before enrolling an                 

                                                                                

23  individual to determine the individual's potential for success on           

                                                                                

24  the G.E.D. test, and shall administer other tests after every 90            

                                                                                

25  hours of attendance to determine a participant's readiness to               

                                                                                

26  take the G.E.D. test.                                                       

                                                                                

27      (c) A funding recipient shall receive funding according to                  


                                                                                

1   subsection (10) for a participant, and a participant may be                 

                                                                                

2   enrolled in the program until 1 of the following occurs:                    

                                                                                

3                                                                                (i) The participant passes the G.E.D. test.                                         

                                                                                

4       (ii) The participant fails to show progress on 2 successive                  

                                                                                

5   tests used to determine readiness to take the G.E.D. test after             

                                                                                

6   having completed at least 450 hours of instruction.                         

                                                                                

7       (8) A high school completion program operated on a year-round               

                                                                                

8   or school year basis may be funded under this section, subject to           

                                                                                

9   all of the following:                                                       

                                                                                

10      (a) The program enrolls adults who do not have a high school                

                                                                                

11  diploma.                                                                    

                                                                                

12      (b) A funding recipient shall receive funding according to                  

                                                                                

13  subsection (10) for a participant in a course offered under this            

                                                                                

14  subsection until 1 of the following occurs:                                 

                                                                                

15                                                                               (i) The participant passes the course and earns a high school                       

                                                                                

16  diploma.                                                                    

                                                                                

17      (ii) The participant fails to earn credit in 2 successive                    

                                                                                

18  semesters or terms in which the participant is enrolled after               

                                                                                

19  having completed at least 900 hours of instruction.                         

                                                                                

20      (9) A job or employment-related adult education program                     

                                                                                

21  operated on a year-round or school year basis may be funded under           

                                                                                

22  this section, subject to all of the following:                              

                                                                                

23      (a) The program enrolls adults referred by their employer who               

                                                                                

24  are less than 20 years of age, have a high school diploma, are              

                                                                                

25  determined to be in need of remedial mathematics or communication           

                                                                                

26  arts skills and are not attending an institution of higher                  

                                                                                

27  education.                                                                  


                                                                                

1       (b) An individual may be enrolled in this program and the                   

                                                                                

2   grant recipient shall receive funding according to subsection               

                                                                                

3   (10) until 1 of the following occurs:                                       

                                                                                

4                                                                                (i) The individual achieves the requisite skills as                                 

                                                                                

5   determined by appropriate assessment instruments administered at            

                                                                                

6   least after every 90 hours of attendance.                                   

                                                                                

7       (ii) The individual fails to show progress on 2 successive                   

                                                                                

8   assessments after having completed at least 450 hours of                    

                                                                                

9   instruction.  The department of career development shall provide            

                                                                                

10  information to a funding recipient regarding appropriate                    

                                                                                

11  assessment instruments for this program.                                    

                                                                                

12      (10) A funding recipient shall receive payments under this                  

                                                                                

13  section in accordance with the following:                                   

                                                                                

14      (a) Ninety percent for enrollment of eligible participants.                 

                                                                                

15      (b) Ten percent for completion of the adult basic education                 

                                                                                

16  objectives by achieving an increase of at least 1 grade level of            

                                                                                

17  proficiency in reading or mathematics; for achieving basic                  

                                                                                

18  English proficiency; for passage of the G.E.D. test; for passage            

                                                                                

19  of a course required for a participant to attain a high school              

                                                                                

20  diploma; or for completion of the course and demonstrated                   

                                                                                

21  proficiency in the academic skills to be learned in the course,             

                                                                                

22  as applicable.                                                              

                                                                                

23      (11) As used in this section, "participant" means the sum of                

                                                                                

24  the number of full-time equated individuals enrolled in and                 

                                                                                

25  attending a department-approved adult education program under               

                                                                                

26  this section, using quarterly participant count days on the                 

                                                                                

27  schedule described in section 6(7)(b).                                      


                                                                                

1       (12) A person who is not eligible to be a participant funded                

                                                                                

2   under this section may receive adult education services upon the            

                                                                                

3   payment of tuition.  In addition, a person who is not eligible to           

                                                                                

4   be served in a program under this section due to the program                

                                                                                

5   limitations specified in subsection (6), (7), (8), or (9) may               

                                                                                

6   continue to receive adult education services in that program upon           

                                                                                

7   the payment of tuition.  The tuition level shall be determined by           

                                                                                

8   the local or intermediate district conducting the program.                  

                                                                                

9       (13) An individual who is an inmate in a state correctional                 

                                                                                

10  facility shall not be counted as a participant under this                   

                                                                                

11  section.                                                                    

                                                                                

12      (14) A district shall not commingle money received under this               

                                                                                

13  section or from another source for adult education purposes with            

                                                                                

14  any other funds of the district.  A district receiving adult                

                                                                                

15  education funds shall establish a separate ledger account for               

                                                                                

16  those funds.  This subsection does not prohibit a district from             

                                                                                

17  using general funds of the district to support an adult education           

                                                                                

18  or community education program.                                             

                                                                                

19      (15)  The department shall work with the department of                      

                                                                                

20  education to ensure that this section is administered in the same           

                                                                                

21  manner as in 1998-99.  A district or intermediate district                  

                                                                                

22  receiving funds under this section may establish a sliding scale            

                                                                                

23  of tuition rates based upon a participant's family income.  A               

                                                                                

24  district or intermediate district may charge a participant                  

                                                                                

25  tuition to receive adult education services under this section              

                                                                                

26  from that sliding scale of tuition rates on a uniform basis.  The           

                                                                                

27  amount of tuition charged per participant shall not exceed the              


                                                                                

1   actual operating cost per participant minus any funds received              

                                                                                

2   under this section per participant.  A district or intermediate             

                                                                                

3   district may not charge a participant tuition under this section            

                                                                                

4   if the participant's income is at or below 200% of the federal              

                                                                                

5   poverty guidelines published by the United States department of             

                                                                                

6   health and human services.                                                  

                                                                                

7       (16) The department shall give preference in awarding the                   

                                                                                

8   federal grants allocated in subsection (1) to providers of adult            

                                                                                

9   education programs under this section.                                      

                                                                                

10      Sec. 107a.  (1) The family resource center curriculum blue                  

                                                                                

11  ribbon study committee is established to explore and make                   

                                                                                

12  recommendations on implementing a new integrated system of                  

                                                                                

13  delivering adult education and related family services beginning            

                                                                                

14  with the 2004-2005 school year, including, but not limited to:              

                                                                                

15      (a) Educational services, including, but not limited to,                    

                                                                                

16  high school completion programs, adult basic education, general             

                                                                                

17  education development (G.E.D.) test preparation, English as a               

                                                                                

18  second language programs, and early childhood education.                    

                                                                                

19      (b) Family services, including, but not limited to, even                    

                                                                                

20  start programs, 21st century learning center grants, before- and            

                                                                                

21  after-school child care programs, parenting classes, and                    

                                                                                

22  referrals for family and child services.                                    

                                                                                

23      (c) Employment and training services, including, but not                    

                                                                                

24  limited to, career preparation programs and work readiness                  

                                                                                

25  classes.                                                                    

                                                                                

26      (2) The family resource center curriculum blue ribbon study                 

                                                                                

27  committee shall consist of the following:                                   


    House Bill No. 4401 as amended June 18, 2003                                

1       (a) Two members of the senate, 1 appointed by the senate                    

                                                                                

2   majority leader and 1 appointed by the senate minority leader.              

                                                                                

3       (b) Two members of the house of representatives, 1 appointed                

                                                                                

4   by the speaker of the house of representatives and 1 appointed by           

                                                                                

5   the minority leader of the house of representatives.                        

                                                                                

6       (c) A representative of the Michigan association of                         

                                                                                

7   community and adult education.                                              

                                                                                

8       (d) A representative of the Michigan works!  association.                   

                                                                                

9       (e) Three local adult education program directors, appointed                

                                                                                

10  <<jointly by the legislative members appointed under subdivisions (a) and (b)>> .  

11      (f) Three local Michigan works program directors, appointed                 

                                                                                

12   <<jointly by the legislative members appointed under subdivisions (a) and (b)>> .

    <<(g) The state director of adult education.>>                              

13      (3) The timetable for the work of the family resource center                

                                                                                

14  curriculum blue ribbon study committee is as follows:                       

                                                                                

15      (a) Not later than September 1, 2003, report on its progress                

                                                                                

16  to the senate and house appropriations subcommittees responsible            

                                                                                

17  for this act.                                                               

                                                                                

18      (b) Not later than November 1, 2003, make final                             

                                                                                

19  recommendations to the senate and house appropriations                      

                                                                                

20  subcommittees responsible for this act.                                     

                                                                                

21      Sec. 108.  (1) From the general fund appropriation in                       

                                                                                

22  section 11, there is allocated an amount not to exceed                      

                                                                                

23  $20,000,000.00 for 2001-2002 and an amount not to exceed                   

                                                                                

24  $20,000,000.00 each fiscal year for 2002-2003 and  $10,000,000.00           

                                                                                

25  for 2003-2004 for partnership for adult learning programs                   

                                                                                

26  authorized under this section.                                              

                                                                                

27      (2) To be eligible to be enrolled as a participant in an                    


                                                                                

1   adult learning program funded under this section, a person shall            

                                                                                

2   be at least 16 years of age as of September 1 of the immediately            

                                                                                

3   preceding state fiscal year and shall meet the following, as                

                                                                                

4   applicable:                                                                 

                                                                                

5       (a) If the individual has obtained a high school diploma or a               

                                                                                

6   general education development (G.E.D.) certificate, the                     

                                                                                

7   individual is determined to have English language proficiency,              

                                                                                

8   reading, writing, or math skills below workforce readiness                  

                                                                                

9   standards as determined by tests approved by the department of              

                                                                                

10  career development and is not enrolled in a postsecondary                   

                                                                                

11  institution.  An individual who has obtained a high school                  

                                                                                

12  diploma is not eligible for enrollment in a G.E.D. test                     

                                                                                

13  preparation program funded under this section.                              

                                                                                

14      (b) If the individual has not obtained a high school diploma                

                                                                                

15  or a G.E.D. certificate, the individual has not attended a                  

                                                                                

16  secondary institution for at least 6 months before enrollment in            

                                                                                

17  an adult learning program funded under this section and is not              

                                                                                

18  enrolled in a postsecondary institution.                                    

                                                                                

19      (3) From the allocation under subsection (1), an amount not                 

                                                                                

20  to exceed  $19,800,000.00 is allocated for 2001-2002 and an                 

                                                                                

21  amount not to exceed $19,800,000.00 is allocated each fiscal year           

                                                                                

22  for 2002-2003 and  $9,800,000.00 is allocated for 2003-2004 to              

                                                                                

23  local workforce development boards for the purpose of providing             

                                                                                

24  regional adult learning programs.  An application for a grant               

                                                                                

25  under this subsection shall be in the form and manner prescribed            

                                                                                

26  by the department of career development.  Subject to subsections            

                                                                                

27  (4), (5), and (6), the amount allocated to each local workforce             


                                                                                

1   development board shall be as provided in this subsection, except           

                                                                                

2   that an eligible local workforce development board shall not                

                                                                                

3   receive an initial allocation under this section that is less               

                                                                                

4   than $70,000.00.  The maximum amount of a grant awarded to an               

                                                                                

5   eligible local workforce development board shall be the sum of              

                                                                                

6   the following components:                                                   

                                                                                

7       (a) Thirty-four percent of the allocation under this                        

                                                                                

8   subsection multiplied by the proportion of the family                       

                                                                                

9   independence agency caseload in the local workforce development             

                                                                                

10  board region to the statewide family independence agency                    

                                                                                

11  caseload.                                                                   

                                                                                

12      (b) Thirty-three percent of the allocation under this                       

                                                                                

13  subsection multiplied by the proportion of the number of persons            

                                                                                

14  in the local workforce development board region over age 17 who             

                                                                                

15  have not received a high school diploma compared to the statewide           

                                                                                

16  total of persons over age 17 who have not received a high school            

                                                                                

17  diploma.                                                                    

                                                                                

18      (c) Thirty-three percent of the allocation under this                       

                                                                                

19  subsection multiplied by the proportion of the number of persons            

                                                                                

20  in the local workforce development board region over age 17 for             

                                                                                

21  whom English is not a primary language compared to the statewide            

                                                                                

22  total of persons over age 17 for whom English is not a primary              

                                                                                

23  language.                                                                   

                                                                                

24      (4) The amount of a grant to a local workforce development                  

                                                                                

25  board under subsection (3) shall not exceed the cost for adult              

                                                                                

26  learning programs needed in the local workforce development board           

                                                                                

27  region, as documented in a manner approved by the department of             


                                                                                

1   career development.                                                         

                                                                                

2       (5) Not more than 9% of a grant awarded to a local workforce                

                                                                                

3   development board may be used for program administration,                   

                                                                                

4   including contracting for the provision of career and educational           

                                                                                

5   information, counseling services, and assessment services.                  

                                                                                

6       (6) In order to receive funds under this section, a local                   

                                                                                

7   workforce development board shall comply with the following                 

                                                                                

8   requirements in a manner approved by the department of career               

                                                                                

9   development:                                                                

                                                                                

10      (a) The local workforce development board shall document the                

                                                                                

11  need for adult learning programs in the local workforce                     

                                                                                

12  development region.                                                         

                                                                                

13      (b) The local workforce development board shall report                      

                                                                                

14  participant outcomes and other measurements of program                      

                                                                                

15  performance.                                                                

                                                                                

16      (c) The local workforce development board shall develop a                   

                                                                                

17  strategic plan that incorporates adult learning programs in the             

                                                                                

18  region.  A local workforce development board is not eligible for            

                                                                                

19  state funds under this section without a strategic plan approved            

                                                                                

20  by the department of career development.                                    

                                                                                

21      (d) The local workforce development board shall furnish to                  

                                                                                

22  the department of career development, in a form and manner                  

                                                                                

23  determined by the department of career development, the                     

                                                                                

24  information the department of career development determines is              

                                                                                

25  necessary to administer this section.                                       

                                                                                

26      (e) The local workforce development board shall allow access                

                                                                                

27  for the department of career development or its designee to audit           


                                                                                

1   all records related to adult learning programs for which it                 

                                                                                

2   receives funds.  The local workforce development board shall                

                                                                                

3   reimburse this state for all disallowances found in the audit in            

                                                                                

4   a manner determined by the department of career development.                

                                                                                

5       (7) Local workforce development boards shall distribute funds               

                                                                                

6   to eligible adult learning providers as follows:                            

                                                                                

7       (a) Not less than 85% of a grant award shall be used to                     

                                                                                

8   support programs that improve reading, writing, and math skills             

                                                                                

9   to workforce readiness standards; English as a second language              

                                                                                

10  programs; G.E.D. preparation programs; high school completion               

                                                                                

11  programs; or workforce readiness programs in the local workforce            

                                                                                

12  development board region.  These programs may include the                   

                                                                                

13  provision of career and educational information, counseling                 

                                                                                

14  services, and assessment services.                                          

                                                                                

15      (b) Up to 15% of a grant award may be used to support                       

                                                                                

16  workforce readiness programs for employers in the local workforce           

                                                                                

17  development board region as approved by the department of career            

                                                                                

18  development.  Employers or consortia of employers whose employees           

                                                                                

19  participate in these programs must provide matching funds in a              

                                                                                

20  ratio of at least $1.00 of private funds for each $1.00 of state            

                                                                                

21  funds.                                                                      

                                                                                

22      (8) Local workforce development boards shall award                          

                                                                                

23  competitive grants to eligible adult learning providers for the             

                                                                                

24  purpose of providing adult learning programs in the local                   

                                                                                

25  workforce development board region.  Applications shall be in a             

                                                                                

26  form and manner prescribed by the department of career                      

                                                                                

27  development.  In awarding grants, local workforce development               


                                                                                

1   boards shall consider all of the following:                                 

                                                                                

2       (a) The ability of the provider to assess individuals before                

                                                                                

3   enrollment using assessment tools approved by the department of             

                                                                                

4   career development and to develop individual adult learner plans            

                                                                                

5   from those assessments for each participant.                                

                                                                                

6       (b) The ability of the provider to conduct continuing                       

                                                                                

7   assessments in a manner approved by the department of career                

                                                                                

8   development to determine participant progress toward achieving              

                                                                                

9   the goals established in individual adult learner plans.                    

                                                                                

10      (c) The past effectiveness of an eligible provider in                       

                                                                                

11  improving adult literacy skills and the success of an eligible              

                                                                                

12  provider in meeting or exceeding performance measures approved by           

                                                                                

13  the department of career development.                                       

                                                                                

14      (d) Whether the program is of sufficient intensity and                      

                                                                                

15  duration for participants to achieve substantial learning gains.            

                                                                                

16      (e) Whether the program uses research-based instructional                   

                                                                                

17  practices that have proven to be effective in teaching adult                

                                                                                

18  learners.                                                                   

                                                                                

19      (f) Whether the program uses advances in technology, as                     

                                                                                

20  appropriate, including computers.                                           

                                                                                

21      (g) Whether the programs are staffed by well-trained                        

                                                                                

22  teachers, counselors, and administrators.                                   

                                                                                

23      (h) Whether the activities coordinate with other available                  

                                                                                

24  resources in the community, such as schools, postsecondary                  

                                                                                

25  institutions, job training programs, and social service                     

                                                                                

26  agencies.                                                                   

                                                                                

27      (i) Whether the provider offers flexible schedules and                      


                                                                                

1   support services, such as child care and transportation, that               

                                                                                

2   enable participants, including individuals with disabilities or             

                                                                                

3   other special needs, to attend and complete programs.                       

                                                                                

4       (j) Whether the provider offers adequate job and                            

                                                                                

5   postsecondary education counseling services.                                

                                                                                

6       (k) Whether the provider can maintain an information                        

                                                                                

7   management system that has the capacity to report participant               

                                                                                

8   outcomes and monitor program performance against performance                

                                                                                

9   measures approved by the department of career development.                  

                                                                                

10                                                                               (l) Whether the provider will allow access for the local                            

                                                                                

11  workforce development board or its designee to audit all records            

                                                                                

12  related to adult learning programs for which it receives funds.             

                                                                                

13  The adult learning provider shall reimburse the local workforce             

                                                                                

14  development board for all disallowances found in the audit.                 

                                                                                

15      (m) The cost per participant contact hour or unit of                        

                                                                                

16  measurable outcome for each type of adult learning program for              

                                                                                

17  which the provider is applying.                                             

                                                                                

18      (9) Contracts awarded by local workforce development boards                 

                                                                                

19  to adult learning providers shall comply with the priorities                

                                                                                

20  established in a strategic plan approved by the department of               

                                                                                

21  career development.                                                         

                                                                                

22      (10) Adult learning providers that do not agree with the                    

                                                                                

23  decisions of the local workforce development board in issuing or            

                                                                                

24  administering competitive grants may use the grievance procedure            

                                                                                

25  established by the department of career development.                        

                                                                                

26      (11) Local workforce development boards shall reimburse                     

                                                                                

27  eligible adult learning providers under this section as follows:            


                                                                                

1       (a) For a first-time provider, as follows:                                  

                                                                                

2                                                                                (i) Fifty percent of the contract amount shall be allocated                         

                                                                                

3   to eligible adult learning providers based upon enrollment of               

                                                                                

4   participants in adult learning programs.  "Enrollment" means a              

                                                                                

5   participant enrolled in the program who received a preenrollment            

                                                                                

6   assessment using assessment tools approved by the department of             

                                                                                

7   career development and for whom an individual adult learner plan            

                                                                                

8   has been developed.                                                         

                                                                                

9       (ii) Fifty percent of the contract amount shall be allocated                 

                                                                                

10  to eligible adult learning providers based upon the following               

                                                                                

11  performance standards as measured in a manner approved by the               

                                                                                

12  department of career development:                                           

                                                                                

13      (A) The percentage of participants taking both a pretest and                

                                                                                

14  a posttest in English language proficiency, reading, writing, and           

                                                                                

15  math.                                                                       

                                                                                

16      (B) The percentage of participants showing improvement toward               

                                                                                

17  goals identified in their individual adult learner plan.                    

                                                                                

18      (C) The percentage of participants achieving their terminal                 

                                                                                

19  goals as identified in their individual adult learner plan.                 

                                                                                

20      (b) Eligible providers that have provided adult learning                    

                                                                                

21  programs previously under this section shall be reimbursed 100%             

                                                                                

22  of the contract amount based upon the performance standards in              

                                                                                

23  subdivision (a)(ii) as measured in a manner determined by the                

                                                                                

24  department of career development.                                           

                                                                                

25      (c) A provider is eligible for reimbursement for a                          

                                                                                

26  participant in an adult learning program until the participant's            

                                                                                

27  reading, writing, or math proficiency, as applicable, is assessed           


                                                                                

1   at workforce readiness levels or the participant fails to show              

                                                                                

2   progress on 2 successive assessments as determined by the                   

                                                                                

3   department of career development.                                           

                                                                                

4       (d) A provider is eligible for reimbursement for a                          

                                                                                

5   participant in an English as a second language program until the            

                                                                                

6   participant is assessed as having attained basic English                    

                                                                                

7   proficiency or the participant fails to show progress on 2                  

                                                                                

8   successive assessments as determined by the department of career            

                                                                                

9   development.                                                                

                                                                                

10      (e) A provider is eligible for reimbursement for a                          

                                                                                

11  participant in a G.E.D. test preparation program until the                  

                                                                                

12  participant passes the G.E.D. test or the participant fails to              

                                                                                

13  show progress on 2 successive assessments as determined by the              

                                                                                

14  department of career development.                                           

                                                                                

15      (f) A provider is eligible for reimbursement for a                          

                                                                                

16  participant in a high school completion program until the                   

                                                                                

17  participant earns a high school diploma or the participant fails            

                                                                                

18  to show progress as determined by the department of career                  

                                                                                

19  development.                                                                

                                                                                

20      (12) A person who is not eligible to be a participant funded                

                                                                                

21  under this section may receive adult learning services upon the             

                                                                                

22  payment of tuition or fees for service.  The tuition or fee level           

                                                                                

23  shall be determined by the adult learning provider and approved             

                                                                                

24  by the local workforce development board.                                   

                                                                                

25      (13) Adult learning providers may collect refundable deposits               

                                                                                

26  from participants for the use of reusable equipment and supplies            

                                                                                

27  and may provide incentives for program completion.                          


                                                                                

1       (14) A provider shall not be reimbursed under this section                  

                                                                                

2   for an individual who is an inmate in a state correctional                  

                                                                                

3   facility.                                                                   

                                                                                

4       (15) In order to administer the partnership for adult                       

                                                                                

5   learning system under this section, the department of career                

                                                                                

6   development shall do all of the following:                                  

                                                                                

7       (a) Develop and provide guidelines to local workforce                       

                                                                                

8   development boards for the development of strategic plans that              

                                                                                

9   incorporate adult learning.                                                 

                                                                                

10      (b) Develop and provide adult learning minimum program                      

                                                                                

11  performance standards to be implemented by local workforce                  

                                                                                

12  development boards.                                                         

                                                                                

13      (c) Identify approved assessment tools for assessing a                      

                                                                                

14  participant's English language proficiency, reading, math, and              

                                                                                

15  writing skills.                                                             

                                                                                

16      (d) Approve workforce readiness standards for English                       

                                                                                

17  language proficiency, reading, math, and writing skills that can            

                                                                                

18  be measured by nationally recognized assessment tools approved by           

                                                                                

19  the department of career development.                                       

                                                                                

20      (16) Of the amount allocated in subsection (1), up to                       

                                                                                

21  $200,000.00 is allocated to the department of career development            

                                                                                

22  for the development and administration of a standardized data               

                                                                                

23  collection system.  Local workforce development boards and adult            

                                                                                

24  learning providers receiving funding under this section shall use           

                                                                                

25  the standardized data collection system for enrolling                       

                                                                                

26  participants in adult learning programs, tracking participant               

                                                                                

27  progress, reporting participant outcomes, and reporting other               


                                                                                

1   performance measures.                                                       

                                                                                

2       (17) A provider is not required to use certificated teachers                

                                                                                

3   or certificated counselors to provide instructional and                     

                                                                                

4   counseling services in a program funded under this section.                 

                                                                                

5       (18) As used in this section:                                               

                                                                                

6       (a) "Adult education", for the purposes of complying with                   

                                                                                

7   section 3 of article VIII of the state constitution of 1963,                

                                                                                

8   means a high school pupil receiving educational services in a               

                                                                                

9   nontraditional setting from a district or intermediate district             

                                                                                

10  in order to receive a high school diploma.                                  

                                                                                

11      (b) "Adult learning program" means a program approved by the                

                                                                                

12  department of career development that improves reading, writing,            

                                                                                

13  and math skills to workforce readiness standards; an English as a           

                                                                                

14  second language program; a G.E.D. preparation program; a high               

                                                                                

15  school completion program; or a workforce readiness program that            

                                                                                

16  enhances employment opportunities.                                          

                                                                                

17      (c) "Eligible adult learning provider" means a district,                    

                                                                                

18  public school academy, intermediate district, community college,            

                                                                                

19  university, community-based organization, or other organization             

                                                                                

20  approved by the department of career development that provides              

                                                                                

21  adult learning programs under a contract with a local workforce             

                                                                                

22  development board.                                                          

                                                                                

23      (d) "Participant" means an individual enrolled in an adult                  

                                                                                

24  learning program and receiving services from an eligible adult              

                                                                                

25  learning provider.                                                          

                                                                                

26      (e) "Strategic plan" means a document approved by the                       

                                                                                

27  department of career development that incorporates adult learning           


                                                                                

1   goals and objectives for the local workforce development board              

                                                                                

2   region and is developed jointly by the local workforce                      

                                                                                

3   development board and the education advisory groups.                        

                                                                                

4       (f) "Workforce development board" means a local workforce                   

                                                                                

5   development board established pursuant to the workforce                     

                                                                                

6   investment act of 1998, Public Law 105-220, 112 Stat. 936, and              

                                                                                

7   the school-to-work opportunities act of 1994, Public Law 103-239,           

                                                                                

8   108 Stat. 568, or the equivalent.                                           

                                                                                

9       (g) "Workforce readiness standard" means a proficiency level                

                                                                                

10  approved by the department of career development in English                 

                                                                                

11  language, reading, writing, or mathematics, or any and all of               

                                                                                

12  these, as determined by results from assessments approved for use           

                                                                                

13  by the department of career development.                                    

                                                                                

14      Sec. 147.  (1) The  allocations for 2001-2002, for 2002-2003,               

                                                                                

15  and  allocation for 2003-2004 for the public school employees'              

                                                                                

16  retirement system pursuant to the public school employees                   

                                                                                

17  retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408,                

                                                                                

18  shall be made using the entry age normal cost actuarial method              

                                                                                

19  and risk assumptions adopted by the public school employees                 

                                                                                

20  retirement board and the department of management and budget.               

                                                                                

21  The annual level percentage of payroll contribution rate is                 

                                                                                

22  estimated at  12.17% for the 2001-2002 state fiscal year and at             

                                                                                

23  12.99% for the 2002-2003 state fiscal year  14.37% for the                  

                                                                                

24  2003-2004 state fiscal yearHowever, if all eligible districts            

                                                                                

25  participating in the school bond loan authority assist the state            

                                                                                

26  treasurer in the refinancing of school bond loan authority debt,            

                                                                                

27  the annual level percentage of payroll contribution rate for all            


    House Bill No. 4401 as amended June 18, 2003                     (1 of 2)   

1   districts is estimated to be 12.99% for the 2003-2004 fiscal                

                                                                                

2   year.  If an eligible district does not assist in the                       

                                                                                

3   refinancing, that district's payroll contribution rate is                   

                                                                                

4   estimated to be 14.37% for the 2003-2004 fiscal year. The portion           

                                                                                

5   of the contribution rate assigned to districts and intermediate             

                                                                                

6   districts for each fiscal year is all of the total percentage               

                                                                                

7   points.  This contribution rate reflects an amortization period             

                                                                                

8   of  35 years for 2001-2002, 34 years for 2002-2003, and  33 years           

                                                                                

9   for 2003-2004.  The public school employees' retirement system              

                                                                                

10  board shall notify each district and intermediate district by               

                                                                                

11  February 28 of each fiscal year of the estimated contribution               

                                                                                

12  rate for the next fiscal year.                                              

                                                                                

13      (2) It is the intent of the legislature that the amortization               

                                                                                

14  period described in section 41(2) of the public school employees            

                                                                                

15  retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to             

                                                                                

16  30 years by the end of the 2005-2006 state fiscal year by                   

                                                                                

17  reducing the amortization period by not more than 1 year each               

                                                                                

18  fiscal year.                                                                

           <<Sec. 166a.  (1) In order to avoid forfeiture of state aid under subsection (2), the board of a district or intermediate district providing reproductive health or other sex education instruction under section 1169, 1506, or 1507 of the revised school code, being sections 380.1169, 380.1506, and 380.1507 of the Michigan Compiled Laws MCL 380.1169, 380.1506, and 380.1507, or under any other provision of law, shall ensure that all of the following are met:

      (a) That the district or intermediate district does not provide any of  that  the instruction to a pupil who is less than 18 years of age unless the district or intermediate district notifies the pupil's parent or legal guardian in advance of the instruction and the content of the instruction, gives the pupil's parent or legal guardian a prior opportunity to review the materials to be used in the instruction, allows the pupil's parent or legal guardian to observe the instruction, and notifies the pupil's parent or legal guardian in advance of his or her rights to observe the instruction and to have the pupil excused from the instruction.

      (b)  Upon That, upon the written request of a pupil's parent or legal guardian or of a pupil if the pupil is at least age 18, the pupil shall be excused, without penalty or loss of academic credit, from attending class sessions in which the instruction is provided.

      (c) That the sex education instruction includes information clearly informing pupils that having sex or sexual contact with an individual under the age of 16 is a crime punishable by imprisonment, and that 1 of the other results of being convicted of this crime is to be listed on the sex offender registry on the internet for at least 25 years.

    (2) A district or intermediate district that does not comply with this section shall forfeit 5% of its total state school aid allocation under this act.>>     

19      Enacting section 1.  In accordance with section 30 of article               

                                                                                

20  IX of the state constitution of 1963, total state spending in               

                                                                                

21  this amendatory act and in 2002 PA 521, 2002 PA 191, 2001 PA 121,           

                                                                                

22  and 2000 PA 297 from state sources for fiscal year 2002-2003 is             

                                                                                

23  estimated at $11,462,251,900.00 and state appropriations to be              

                                                                                

24  paid to local units of government for fiscal year 2002-2003 are             

                                                                                

25  estimated at $11,408,849,600.00; and total state spending in this           

                                                                                

26  amendatory act and in 2002 PA 521 from state sources for fiscal             

                                                                                

27  year 2003-2004 is estimated at $11,262,578,500.00 and state                 


                                                                                

1   appropriations to be paid to local units of government for fiscal           

                                                                                

2   year 2003-2004 are estimated at $11,259,695,500.00.                         

                                                                                

3       Enacting section 2.  Sections 8, 8c, 11j, 18d, 32a, 32i, 55,                

                                                                                

4   67, 94, 96, 99a, 121a, and 158 of the state school aid act of               

                                                                                

5   1979, 1979 PA 94, MCL 388.1608, 388.1608c, 388.1611j, 388.1618d,            

                                                                                

6   388.1632a, 388.1632i, 388.1655, 388.1667, 388.1694, 388.1696,               

                                                                                

7   388.1699a, 388.1721a, and 388.1758, are repealed effective                  

                                                                                

8   October 1, 2003.                                                            

                                                                                

9       Enacting section 3.  (1) Except as otherwise specified in                   

                                                                                

10  subsection (2), this amendatory act takes effect October 1,                 

                                                                                

11  2003.                                                                       

                                                                                

12      (2) Sections 11, 11g, 20, 26a, and 31d of 1979 PA 94, as                    

                                                                                

13  amended by this amendatory act, and sections 20k, 31e, 98b, and             

                                                                                

14  107a of 1979 PA 94, as added by this amendatory act, take effect            

                                                                                

15  upon enactment of this amendatory act.