HOUSE BILL No. 4307

 

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.