February 21, 2007, Introduced by Reps. Hildenbrand, Meekhof and Elsenheimer and referred to the Committee on Oversight and Investigations.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 503, 523, and 1311e (MCL 380.503, 380.523, and
380.1311e), section 503 as amended by 2003 PA 299, section 523 as
added by 2003 PA 179, and section 1311e as added by 1999 PA 23.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 503. (1) An authorizing body is not required to issue a
contract to any person or entity. Public school academy contracts
shall be issued on a competitive basis taking into consideration
the resources available for the proposed public school academy, the
population to be served by the proposed public school academy, and
the educational goals to be achieved by the proposed public school
academy.
(2) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more public
school academies within the boundaries of the school district and
the board does not issue the contract, the person or entity may
petition the board to place the question of issuing the contract on
the ballot to be decided by the school electors of the school
district. The petition shall contain all of the information
required to be in the contract application under section 502 and
shall be signed by a number of school electors of the school
district equal to at least 15% of the total number of school
electors of that school district. The petition shall be filed with
the school district filing official. If the board receives a
petition meeting the requirements of this subsection, the board
shall have the question of issuing the contract placed on the
ballot at its next regular school election held at least 60 days
after receiving the petition. If a majority of the school electors
of the school district voting on the question vote to issue the
contract, the board shall issue the contract.
(3) Within 10 days after issuing a contract for a public
school academy, the authorizing body shall submit to the
superintendent of public instruction a copy of the contract and of
the application under section 502.
(4) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, and number of members of
the board of directors of each public school academy subject to its
jurisdiction.
(5) A contract issued to organize and administer a public
school academy shall contain at least all of the following:
(a) The educational goals the public school academy is to
achieve and the methods by which it will be held accountable. To
the extent applicable, the pupil performance of a public school
academy shall be assessed using at least a Michigan education
assessment program (MEAP) test or an assessment instrument
developed under section 1279 or 1279g.
(b) A description of the method to be used to monitor the
public school academy's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) All of the matters set forth in the application for the
contract.
(e) For a public school academy authorized by a school
district, an agreement that employees of the public school academy
will be covered by the collective bargaining agreements that apply
to employees of the school district employed in similar
classifications in schools that are not public school academies.
(f) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 507.
(g) A description of and address for the proposed physical
plant in which the public school academy will be located.
(h) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by a
certified public accountant in accordance with generally accepted
governmental auditing principles.
(6) A public school academy shall comply with all applicable
law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(d) (e)
Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and
1274.
(7) A public school academy and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for an act or omission in authorizing a public school academy if
the authorizing body or the person acted or reasonably believed he
or she acted within the authorizing body's or the person's scope of
authority.
(8) A public school academy is exempt from all taxation on its
earnings and property. Instruments of conveyance to or from a
public school academy are exempt from all taxation including taxes
imposed by 1966 PA 134, MCL 207.501 to 207.513. A public school
academy may not levy ad valorem property taxes or another tax for
any purpose. However, operation of 1 or more public school
academies by a school district or intermediate school district does
not affect the ability of the school district or intermediate
school district to levy ad valorem property taxes or another tax.
(9) A public school academy may acquire by purchase, gift,
devise, lease, sublease, installment purchase agreement, land
contract, option, or by any other means, hold and own in its own
name buildings and other property for school purposes, and
interests therein, and other real and personal property, including,
but not limited to, interests in property subject to mortgages,
security interests, or other liens, necessary or convenient to
fulfill its purposes. For the purposes of condemnation, a public
school academy may proceed under the uniform condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding
sections 6 to 9 of that act, MCL 213.56 to 213.59, or other
applicable statutes, but only with the express, written permission
of the authorizing body in each instance of condemnation and only
after just compensation has been determined and paid.
Sec. 523. (1) An authorizing body is not required to issue a
contract to any entity. Urban high school academy contracts shall
be issued on a competitive basis taking into consideration the
resources available for the proposed urban high school academy, the
population to be served by the proposed urban high school academy,
and the educational goals to be achieved by the proposed urban high
school academy. In evaluating if an applicant is qualified, the
authorizing body shall examine the proposed performance standards,
proposed academic program, financial viability of the applicant,
and the ability of the proposed board of directors to meet the
contract goals and objectives. An authorizing body shall give
priority to applicants that demonstrate all of the following:
(a) The proposed school will operate at least all of grades 9
through 12 within 3 years after beginning operation.
(b) The proposed school will occupy a building or buildings
that are newly constructed or renovated after January 1, 2003.
(c) The proposed school has a stated goal of increasing high
school graduation rates.
(d) The proposed school has received commitments for financial
and educational support from the entity applying for the contract.
(e) The entity that submits the application for a contract has
net assets of at least $50,000,000.00.
(2) A contract issued to organize and administer an urban high
school academy shall contain at least all of the following:
(a) The educational goals the urban high school academy is to
achieve and the methods by which it will be held accountable. To
the extent applicable, the pupil performance of an urban high
school academy shall be assessed using at least a Michigan
education assessment program (MEAP) test or an assessment
instrument developed under section 1279 or 1279g.
(b) A description of the method to be used to monitor the
urban high school academy's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract. An authorizing body may approve
amendment of the contract with respect to any provision contained
in the contract.
(d) A certification, signed by an authorized member of the
urban high school academy board of directors, that the urban high
school academy will comply with the contract and all applicable
law.
(e) Procedures for revoking the contract and grounds for
revoking the contract.
(f) A description of and address for the proposed building or
buildings in which the urban high school academy will be located.
(g) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by an
independent certified public accountant in accordance with
generally accepted governmental auditing principles.
(h) A requirement that the board of directors shall ensure
compliance with the requirements of 1968 PA 317, MCL 15.321 to
15.330.
(i) A requirement that the board of directors shall prohibit
specifically identified family relationships between members of the
board of directors, individuals who have an ownership interest in
or who are officers or employees of an educational management
company involved in the operation of the urban high school academy,
and employees of the urban high school academy. The contract shall
identify the specific prohibited relationships consistent with
applicable law.
(j) A requirement that the board of directors of the urban
high school academy shall make information concerning its operation
and management available to the public and to the authorizing body
in the same manner as is required by state law for school
districts.
(k) A requirement that the board of directors of the urban
high school academy shall collect, maintain, and make available to
the public and the authorizing body, in accordance with applicable
law and the contract, at least all of the following information
concerning the operation and management of the urban high school
academy:
(i) A copy of the contract issued by the authorizing body for
the urban high school academy.
(ii) A list of currently serving members of the board of
directors of the urban high school academy, including name,
address, and term of office; copies of policies approved by the
board of directors; board meeting agendas and minutes; copy of the
budget approved by the board of directors and of any amendments to
the budget; and copies of bills paid for amounts of $10,000.00 or
more as they were submitted to the board of directors.
(iii) Quarterly financial reports submitted to the authorizing
body.
(iv) A current list of teachers working at the urban high
school academy that includes their individual salaries; copies of
the teaching certificates or permits of current teaching staff; and
evidence of compliance with the criminal background and records
checks and unprofessional conduct check required under sections
1230, 1230a, and 1230b for all teachers and administrators working
at the urban high school academy.
(v) Curriculum documents and materials given to the
authorizing body.
(vi) Proof of insurance as required by the contract.
(vii) Copies of facility leases or deeds, or both, and of any
equipment leases.
(viii) Copies of any management contracts or services contracts
approved by the board of directors.
(ix) All health and safety reports and certificates, including
those relating to fire safety, environmental matters, asbestos
inspection, boiler inspection, and food service.
(x) Any management letters issued as part of the annual
financial audit under subdivision (g).
(xi) Any other information specifically required under this
act.
(l) A requirement that the authorizing body must review and may
disapprove any agreement between the board of directors and an
educational management company before the agreement is final and
valid. An authorizing body may disapprove an agreement described in
this subdivision only if the agreement is contrary to the contract
or applicable law.
(m) A requirement that the board of directors shall
demonstrate all of the following to the satisfaction of the
authorizing body with regard to its pupil admission process:
(i) That the urban high school academy has made a reasonable
effort to advertise its enrollment openings in a newspaper of
general circulation in the intermediate school district in which
the urban high school academy is located.
(ii) That the urban high school academy has made the following
additional efforts to recruit pupils who are eligible for special
education programs and services to apply for admission:
(A) Reasonable efforts to advertise all enrollment openings to
organizations and media that regularly serve and advocate for
individuals with disabilities within the boundaries of the
intermediate school district in which the urban high school academy
is located.
(B) Inclusion in all pupil recruitment materials of a
statement that appropriate special education services will be made
available to pupils attending the school as required by law.
(iii) That the open enrollment period for the urban high school
academy is for a duration of at least 2 weeks and that the
enrollment times include some evening and weekend times.
(n) A requirement that the board of directors shall prohibit
any individual from being employed by the urban high school academy
in more than 1 full-time position and simultaneously being
compensated at a full-time rate for each of those positions.
(o) A requirement that, if requested, the board of directors
shall report to the authorizing body the total compensation for
each individual working at the urban high school academy.
(3) An urban high school academy shall comply with all
applicable law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(d) (e)
1978 PA 566, MCL 15.181 to 15.185.
(e) (f)
1968 PA 317, MCL 15.321 to 15.330.
(f) (g)
The uniform budgeting and accounting act, 1968 PA 2,
MCL 141.421 to 141.440a.
(g) (h)
The revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(h) (i)
The federal no child left behind act of 2001, Public
Law
107-110. , 115 Stat. 1425.
(i) (j)
Sections 1134, 1135, 1146, 1153, 1263(3), 1267, 1274,
and 1280.
(4) An urban high school academy and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for any acts or omissions in authorizing or oversight of an urban
high school academy if the authorizing body or the person acted or
reasonably believed he or she acted within the authorizing body's
or the person's scope of authority.
(5) An urban high school academy is exempt from all taxation
on its earnings and property. Instruments of conveyance to or from
an urban high school academy are exempt from all taxation,
including taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. An
urban high school academy may not levy ad valorem property taxes or
any other tax for any purpose.
(6) An urban high school academy may acquire by purchase,
gift, devise, lease, sublease, installment purchase agreement, land
contract, option, or any other means, hold, and own in its own name
buildings and other property for school purposes, and interests
therein, and other real and personal property, including, but not
limited to, interests in property subject to mortgages, security
interests, or other liens, necessary or convenient to fulfill its
purposes. For the purposes of condemnation, an urban high school
academy may proceed under the uniform condemnation procedures act,
1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of that
act, MCL 213.56 to 213.59, or other applicable statutes, but only
with the express, written permission of the authorizing body in
each instance of condemnation and only after just compensation has
been determined and paid.
Sec. 1311e. (1) An authorizing body is not required to issue a
contract to any person or entity. Contracts for strict discipline
academies shall be issued on a competitive basis taking into
consideration the resources available for the proposed strict
discipline academy, the population to be served by the proposed
strict discipline academy, and the educational goals to be achieved
by the proposed strict discipline academy.
(2) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more strict
discipline academies within the boundaries of the school district
and the board does not issue the contract, the person or entity may
petition the board to place the question of issuing the contract on
the ballot to be decided by the school electors of the school
district. The petition shall contain all of the information
required to be in the contract application under section 1311d and
shall be signed by a number of school electors of the school
district equal to at least 15% of the total number of school
electors of that school district. The petition shall be filed with
the secretary of the board. If the board receives a petition
meeting the requirements of this subsection, the board shall place
the question of issuing the contract on the ballot at its next
annual school election held at least 60 days after receiving the
petition. If a majority of the school electors of the school
district voting on the question vote to issue the contract, the
board shall issue the contract.
(3) Within 10 days after issuing a contract for a strict
discipline academy, the board of the authorizing body shall submit
to
the state board superintendent
of public instruction a copy of
the contract and of the application under section 1311d.
(4) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, and number of members of
the board of directors of each strict discipline academy subject to
its jurisdiction.
(5) A contract issued to organize and administer a strict
discipline academy shall contain at least all of the following:
(a) The educational goals the strict discipline academy is to
achieve and the methods by which it will be held accountable. To
the extent applicable, the pupil performance of a strict discipline
academy shall be assessed using at least a Michigan education
assessment program (MEAP) test or an assessment instrument
developed
under section 1279 for a state-endorsed high school
diploma
or 1279g.
(b) A description of the method to be used to monitor the
strict discipline academy's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) All of the matters set forth in the application for the
contract.
(e) For a strict discipline academy authorized by a school
district, an agreement that employees of the strict discipline
academy will be covered by the collective bargaining agreements
that apply to employees of the school district employed in similar
classifications in schools that are not strict discipline
academies.
(f) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 1311l.
(g) A description of and address for the proposed physical
plant in which the strict discipline academy will be located.
(h) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by a
certified public accountant in accordance with generally accepted
governmental auditing principles.
(6) A strict discipline academy shall comply with all
applicable law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(d) (e)
Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and
1274.
(e) (f)
Except for part 6a, all provisions of this act that
explicitly apply to public school academies established under part
6a.
(7) A strict discipline academy and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for any acts or omissions in authorizing a strict discipline
academy if the authorizing body or the person acted or reasonably
believed he or she acted within the authorizing body's or the
person's scope of authority.
(8) A strict discipline academy is exempt from all taxation on
its earnings and property. Instruments of conveyance to or from a
strict discipline academy are exempt from all taxation including
taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. A strict
discipline academy may not levy ad valorem property taxes or any
other tax for any purpose. However, operation of 1 or more strict
discipline academies by a school district or intermediate school
district does not affect the ability of the school district or
intermediate school district to levy ad valorem property taxes or
any other tax.
(9) A strict discipline academy may acquire by purchase, gift,
devise, lease, sublease, installment purchase agreement, land
contract, option, or by any other means, hold and own in its own
name buildings and other property for school purposes, and
interests therein, and other real and personal property, including,
but not limited to, interests in property subject to mortgages,
security interests, or other liens, necessary or convenient to
fulfill its purposes. For the purposes of condemnation, a strict
discipline academy may proceed under the uniform condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding
sections 6 to 9 of that act, MCL 213.56 to 213.59, or other
applicable statutes, but only with the express, written permission
of the authorizing body in each instance of condemnation and only
after just compensation has been determined and paid.