HB-4860, As Passed House, November 5, 2009

SUBSTITUTE FOR

HOUSE BILL NO. 4860

(As amended November 5, 2009)

[A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 11, 20j, 20k, 22b, 32d, 74, and 101 (MCL 388.1611,

388.1620j, 388.1620k, 388.1622b, 388.1632d, 388.1674, and 388.1701),

sections 11, 22b, 32d, 74, and 101 as amended by 2009 PA 121, section 20j

as amended by 2008 PA 561, and section 20k as added by 2003 PA 158, and

by adding section 20l.]

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 11. (1) For the fiscal year ending September 30, 2010,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

~~$10,793,954,100.00~~ $10,556,680,600.00 from the state school aid

fund established by section 11 of article IX of the state

constitution of 1963[, the sum of $59,075,000.00 from the Michigan future

fund,] and the sum of $31,800,000.00 from the general

fund. For the fiscal year ending September 30, 2010, there is also

appropriated the sum of ~~$450,000,000.00~~ $634,131,000.00 from the

federal funding awarded to this state under title XIV of the

American recovery and reinvestment act of 2009, Public Law 111-5,

to be used solely for the purpose of funding the primary funding

formula calculated under section 20, in accordance with federal

law. In addition, other available federal funds are appropriated

for the fiscal year ending September 30,2010.

(2) The appropriations under this section shall be allocated

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

the general fund shall be expended to fund the purposes of this act

before the expenditure of money appropriated under this section

from the state school aid fund. If the maximum amount appropriated

under this section from the state school aid fund for a fiscal year

exceeds the amount necessary to fully fund allocations under this

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

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

general fund, but instead shall be deposited into the school aid

stabilization fund created in section 11a.

(3) If the maximum amount appropriated under this section from

the state school aid fund and the school aid stabilization fund for

a fiscal year exceeds the amount available for expenditure from the

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

11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,

and 56 shall be made in full. In addition, for districts beginning

operations after 1994-95 that qualify for payments under section

22b, payments under section 22b shall be made so that the

qualifying districts receive the lesser of an amount equal to the

1994-95 foundation allowance of the district in which the district

beginning operations after 1994-95 is located or $5,500.00. The

amount of the payment to be made under section 22b for these

qualifying districts shall be as calculated under section 22a, with

the balance of the payment under section 22b being subject to the

proration otherwise provided under this subsection and subsection

(4). If proration is necessary, state payments under each of the

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

prorated in the manner prescribed in subsection (4) as necessary to

reflect the amount available for expenditure from the state school

aid fund for the affected fiscal year. However, if the department

of treasury determines that proration will be required under this

subsection, or if the department of treasury determines that

further proration is required under this subsection after an

initial proration has already been made for a fiscal year, the

department of treasury shall notify the state budget director, and

the state budget director shall notify the legislature at least 30

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

before the department reduces any payments under this act because

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

session day period after that notification by the state budget

director, the department shall not reduce any payments under this

act because of proration under this subsection. The legislature may

prevent proration from occurring by, within the 30 calendar day or

6 legislative session day period after that notification by the

state budget director, enacting legislation appropriating

additional funds from the general fund, countercyclical budget and

economic stabilization fund, state school aid fund balance, or

another source to fund the amount of the projected shortfall.

(4) If proration is necessary under subsection (3), the

department shall calculate the proration in district and

intermediate district payments that is required under subsection

(3) as follows:

(a) The department shall calculate the percentage of total

state school aid allocated under this act for the affected fiscal

year for each of the following:

(i) Districts.

(ii) Intermediate districts.

(iii) Entities other than districts or intermediate districts.

(b) The department shall recover a percentage of the proration

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(i) for districts by

reducing payments to districts. This reduction shall be made by

calculating an equal dollar amount per pupil as necessary to

recover this percentage of the proration amount and reducing each

district's total state school aid from state sources, other than

payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,

51a(2), 51a(12), 51c, and 53a, by that amount.

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(ii) for intermediate

districts by reducing payments to intermediate districts. This

reduction shall be made by reducing the payments to each

intermediate district, other than payments under sections 11f, 11g,

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26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage

basis.

(d) The department shall recover a percentage of the proration

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(iii) for entities other

than districts and intermediate districts by reducing payments to

these entities. This reduction shall be made by reducing the

payments to each of these entities, other than payments under

sections 11j, 26a, and 26b, on an equal percentage basis.

(5) Except for the allocation under section 26a, any general

fund allocations under this act that are not expended by the end of

the state fiscal year are transferred to the school aid

stabilization fund created under section 11a.

[(6) It is the intent of the legislature that, beginning with appropriations for 2010-2011, the legislature shall enact the appropriations bill making general appropriations for the ensuing fiscal year for the purposes of this act not later than June 1 each year.

Sec. 20j. (1) ~~Foundation~~ From the money appropriated in section 11 from the Michigan future fund, there is allocated an amount not to exceed $25,750,000.00 for 2009-2010 to make foundation allowance supplemental payments ~~for 2008-2009~~ under this section to districts that in the 1994-95 state fiscal year had a foundation allowance greater than $6,500.00. ~~shall be calculated under this section.~~

(2) The per pupil allocation to each district under this section shall be an amount equal to the product of the difference between the basic foundation allowance for the 1998-99 state fiscal year and $7,204.00 less $271.00 minus the dollar amount of the adjustment from the 1998-99 state fiscal year to 2007-2008 in the district's foundation allowance, times 50%.

(3) If a district's local revenue per pupil does not exceed the sum of its foundation allowance under section 20 plus the per pupil allocation under subsection (2), the total payment to the district calculated under this section shall be the product of the per pupil allocation under subsection (2) multiplied by the district's membership excluding special education pupils. If a district's local revenue per pupil exceeds the foundation allowance under section 20 but does not exceed the sum of the foundation allowance under section 20 plus the per pupil allocation under subsection (2), the total payment to the district calculated under this section shall be the product of the difference between the sum of the foundation allowance under section 20 plus the per pupil allocation under subsection (2) minus the local revenue per pupil multiplied by the district's membership excluding special education

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pupils. If a district's local revenue per pupil exceeds the sum of the foundation allowance under section 20 plus the per pupil allocation under subsection (2), there is no payment calculated under this section for the district.

~~(4) Payments to districts shall not be made under this section. Rather, the calculations under this section shall be made and used to determine the amount of state payments under section 22b.~~

Sec. 20k. If the maximum amount appropriated under section 11 from the state school aid fund for a fiscal year exceeds the amount available for expenditure from the state school aid fund for that fiscal year so that a district's state school aid is reduced pursuant to section 11(3), the payments ~~calculated~~ allocated under section 20j ~~and made under section 22b~~ shall be considered to be foundation allowance payments for the purpose of determining the maximum number of mills a district may levy under section 1211(3) of the revised school code, MCL 380.1211. However, the amount to be considered a foundation allowance payment for this purpose shall not exceed the amount reduced from the district's state aid payment as a result of the implementation of section 11(3).

Sec. 20l. From the money appropriated in section 11 from the Michigan future fund, there is allocated an amount not to exceed $25,750,000.00 for 2009-2010 to make equity payments to districts that have a foundation allowance or per pupil payment calculated under section 20, including any adjustment under section 20(19), for 2009-2010 of less than $7,356.00. The equity payment for a district shall be an amount per membership pupil equal to the lesser of $40.00 or the difference between $7,356.00 and the district's 2009-2010 foundation allowance or per pupil payment as calculated under section 20, including any adjustment under section 20(19). It is the intent of the legislature that, beginning in 2010-2011, these payments will be included in the calculation of a district's foundation allowance or per pupil payment under section 20.]

Sec. 22b. (1) From the state funds appropriated in section 11,

there is allocated for 2009-2010 an amount not to exceed

~~$3,323,800,000.00~~ $3,088,169,000.00 for discretionary nonmandated

payments to districts under this section. Funds allocated under

this section that are not expended in the state fiscal year for

which they were allocated, as determined by the department, may be

used to supplement the allocations under sections 22a and 51c in

order to fully fund those calculated allocations for the same

fiscal year.

(2) In addition to the funds allocated in subsection (1),

there is allocated an amount estimated at ~~$450,000,000.00~~

$634,131,000.00 from the federal funds awarded to this state under

title XIV of the American recovery and reinvestment act of 2009,

Public Law 111-5. These funds shall be distributed in a form and

House Bill No. 4860 (H-1) as amended November 5, 2009

manner determined by the department based on an equal dollar amount

per the number of membership pupils used to calculate the August

20, 2009 state aid payment and shall be expended in a manner

prescribed by federal law.

(3) Subject to subsection (4) and section 11, the allocation

to a district under this section shall be an amount equal to the

sum of the amounts calculated under sections 20, [~~20j,~~] 51a(2),

51a(3), and 51a(12), minus the sum of the allocations to the

district under sections 22a and 51c.

(4) In order to receive an allocation under subsection (1),

each district shall do all of the following:

(a) Administer in each grade level that it operates in grades

1 to 5 a standardized assessment approved by the department of

grade-appropriate basic educational skills. A district may use the

Michigan literacy progress profile to satisfy this requirement for

grades 1 to 3. Also, if the revised school code is amended to

require annual assessments at additional grade levels, in order to

receive an allocation under this section each district shall comply

with that requirement.

(b) Comply with sections 1278a and 1278b of the revised school

code, MCL 380.1278a and 380.1278b.

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

(d) Comply with section 1230g of the revised school code, MCL

380.1230g.

(5) Districts are encouraged to use funds allocated under this

section for the purchase and support of payroll, human resources,

and other business function software that is compatible with that

of the intermediate district in which the district is located and

with other districts located within that intermediate district.

(6) From the allocation in subsection (1), the department

shall pay up to $1,000,000.00 in litigation costs incurred by this

state associated with lawsuits filed by 1 or more districts or

intermediate districts against this state. If the allocation under

this section is insufficient to fully fund all payments required

under this section, the payments under this subsection shall be

made in full before any proration of remaining payments under this

section.

(7) It is the intent of the legislature that all

constitutional obligations of this state have been fully funded

under sections 22a, 31d, 51a, and 51c. If a claim is made by an

entity receiving funds under this act that challenges the

legislative determination of the adequacy of this funding or

alleges that there exists an unfunded constitutional requirement,

the state budget director may escrow or allocate from the

discretionary funds for nonmandated payments under this section the

amount as may be necessary to satisfy the claim before making any

payments to districts under subsection (3). If funds are escrowed,

the escrowed funds are a work project appropriation and the funds

are carried forward into the following fiscal year. The purpose of

the work project is to provide for any payments that may be awarded

to districts as a result of litigation. The work project shall be

completed upon resolution of the litigation.

(8) If the local claims review board or a court of competent

jurisdiction makes a final determination that this state is in

violation of section 29 of article IX of the state constitution of

1963 regarding state payments to districts, the state budget

director shall use work project funds under subsection (7) or

allocate from the discretionary funds for nonmandated payments

under this section the amount as may be necessary to satisfy the

amount owed to districts before making any payments to districts

under subsection (3).

(9) If a claim is made in court that challenges the

legislative determination of the adequacy of funding for this

state's constitutional obligations or alleges that there exists an

unfunded constitutional requirement, any interested party may seek

an expedited review of the claim by the local claims review board.

If the claim exceeds $10,000,000.00, this state may remove the

action to the court of appeals, and the court of appeals shall have

and shall exercise jurisdiction over the claim.

(10) If payments resulting from a final determination by the

local claims review board or a court of competent jurisdiction that

there has been a violation of section 29 of article IX of the state

constitution of 1963 exceed the amount allocated for discretionary

nonmandated payments under this section, the legislature shall

provide for adequate funding for this state's constitutional

obligations at its next legislative session.

(11) If a lawsuit challenging payments made to districts

related to costs reimbursed by federal title XIX medicaid funds is

filed against this state, then, for the purpose of addressing

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potential liability under such a lawsuit, the state budget director

may place funds allocated under this section in escrow or allocate

money from the funds otherwise allocated under this section, up to

a maximum of 50% of the amount allocated in subsection (1). If

funds are placed in escrow under this subsection, those funds are a

work project appropriation and the funds are carried forward into

the following fiscal year. The purpose of the work project is to

provide for any payments that may be awarded to districts as a

result of the litigation. The work project shall be completed upon

resolution of the litigation. In addition, this state reserves the

right to terminate future federal title XIX medicaid reimbursement

payments to districts if the amount or allocation of reimbursed

funds is challenged in the lawsuit. As used in this subsection,

"title XIX" means title XIX of the social security act, 42 USC 1396

to 1396v.

[Sec. 32d. (1) For 2009-2010, from the state school aid fund appropriation in section 11, there is allocated an amount not to exceed $88,100,000.00 to eligible districts for great start readiness programs. ~~and~~ For 2009-2010, from the general fund appropriation in section 11, there is allocated an amount not to exceed $7,575,000.00, and from the Michigan Future fund appropriation in section 11, there is allocated an amount not to exceed $7,575,000.00, for competitive great start readiness program grants. Funds allocated under this section shall be used to provide part-day or full-day comprehensive free compensatory programs designed to do 1 or both of the following:

(a) Improve the readiness and subsequent achievement of educationally disadvantaged children as defined by the department who will be at least 4, but less than 5 years of age, as of December 1 of the school year in which the programs are offered, and who show evidence of 2 or more risk factors as defined by the state board.

(b) Provide preschool and parenting education programs similar to those under former section 32b as in effect for 2001-2002. Beginning in 2007-2008, funds spent by a district for programs described in this subdivision shall not exceed the lesser of the amount spent by the district under this subdivision for 2006-2007 or the amount spent under this subdivision in any subsequent fiscal year.

(2) To be eligible to receive payments under this section, a district shall comply with this section and section 39. To receive competitive grant payments under this section, an eligible grant recipient shall comply with this section and section 32l.

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(3) In addition to the allocation under subsection (1), from the general fund money appropriated under section 11, there is allocated an amount not to exceed $300,000.00 for 2009-2010 for a competitive grant to continue a longitudinal evaluation of children who have participated in great start readiness programs.

(4) To be eligible for funding under this section, a program shall prepare children for success in school through comprehensive part-day or full-day programs that contain all of the following program components, as determined by the department:

(a) Participation in a collaborative recruitment and enrollment process. At a minimum, the process shall include all other funded preschool programs that may serve children in the same geographic area, to assure that each child is enrolled in the program most appropriate to his or her needs and to maximize the use of federal, state, and local funds.

(b) An age-appropriate educational curriculum that is in compliance with the early childhood standards of quality for prekindergarten children adopted by the state board.

(d) Health screening services for all program participants.

(e) Referral services for families of program participants to community social service agencies, as appropriate.

(f) Active and continuous involvement of the parents or guardians of the program participants.

(g) A plan to conduct and report annual great start readiness program evaluations and continuous improvement plans using criteria approved by the department.

(h) Participation in a multidistrict, multiagency, school readiness advisory committee that provides for the involvement of classroom teachers, parents or guardians of program participants, and community, volunteer, and social service agencies and organizations, as appropriate. The advisory committee shall review the program components listed in this subsection and make recommendations for changes to the great start readiness program for which it is an advisory committee.

(i) For great start readiness programs operated by a district or consortium of districts, provide for the ongoing articulation of the early childhood, kindergarten, and first grade programs offered by the district or districts.

(5) An application for funding under this section shall provide for the following, in a form and manner determined by the department:

(a) Ensure compliance with all program components described in subsection (4).

(b) Ensure that more than 50% of the children participating in an eligible great start readiness program are children who live with families with a household income that is equal to or less than 300% of the federal poverty level.

(i) Teachers possessing proper training. For programs the district manages itself, a valid teaching certificate and an early childhood (ZA)

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endorsement are required. This provision does not apply to a district that subcontracts with an eligible child development program. In that situation, a teacher must have a valid Michigan teaching certificate with an early childhood (ZA) endorsement, a valid Michigan teaching certificate with a child development associate credential, or a bachelor's degree in child development with specialization in preschool teaching. However, both of the following apply to this subparagraph:

(A) If a district demonstrates to the department that it is unable to fully comply with this subparagraph after making reasonable efforts to comply, teachers who have significant but incomplete training in early childhood education or child development may be employed by the district if the district provides to the department, and the department approves, a plan for each teacher to come into compliance with the standards in this subparagraph. A teacher's compliance plan must be completed within 4 years of the date of employment. Progress toward completion of the compliance plan shall consist of at least 2 courses per calendar year.

(B) For a subcontracted program, the department shall consider a teacher with 90 credit hours and at least 4 years' teaching experience in a qualified preschool program to meet the requirements under this subparagraph.

(ii) Paraprofessionals possessing proper training in early childhood development, including an associate's degree in early childhood education or child development or the equivalent, or a child development associate (CDA) credential, or the equivalent as approved by the state board. However, if a district demonstrates to the department that it is unable to fully comply with this subparagraph after making reasonable efforts to comply, the district may employ paraprofessionals who have completed at least 1 course in early childhood education or child development if the district provides to the department, and the department approves, a plan for each paraprofessional to come into compliance with the standards in this subparagraph. A paraprofessional's compliance plan must be completed within 2 years of the date of employment. Progress toward completion of the compliance plan shall consist of at least 2 courses or 60 clock hours of training per calendar year.

(d) Include a program budget that contains only those costs that are not reimbursed or reimbursable by federal funding, that are clearly and directly attributable to the great start readiness program, and that would not be incurred if the program were not being offered. The program budget shall indicate the extent to which these funds will supplement other federal, state, local, or private funds. Funds received under this section shall not be used to supplant any federal funds by the applicant to serve children eligible for a federally funded existing preschool program that has the capacity to serve those children.

(6) For a grant recipient that enrolls pupils in a full-day program funded under this section, each child enrolled in the full-day program shall be counted as 2 children served by the program for purposes of determining the number of children to be served and for determining the amount of the grant award. A grant award shall not be increased solely on the basis of providing a full-day program. As used in this subsection, "full-day program" means a program that operates for at least the same

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length of day as a district's first grade program for a minimum of 4 days per week, 30 weeks per year. A classroom that offers a full-day program must enroll all children for the full day to be considered a full-day program.

(7) A district or consortium of districts receiving a grant under this section may contract with for-profit or nonprofit preschool center providers that meet all requirements of subsection (4) and retain for administrative services an amount equal to not more than 5% of the grant amount. A district or consortium of districts may expend not more than 10% of the total grant amount for administration of the program.

(8) Any public or private for-profit or nonprofit legal entity or agency may apply for a competitive grant under this section. However, a district or intermediate district may not apply for a competitive grant under this section unless the district, intermediate district, or consortium of districts or intermediate districts is acting as a local grantee for the federal head start program operating under the head start act, 42 USC 9831 to 9852.

(9) A recipient of funds under this section shall report to the department on the midyear report the number of children participating in the program who meet the income or other eligibility criteria prescribed by the department and the total number of children participating in the program. For children participating in the program who meet the income or other eligibility criteria specified under subsection (5)(b), a recipient shall also report whether or not a parent is available to provide care based on employment status. For the purposes of this subsection, "employment status" shall be defined by the department of human services in a manner consistent with maximizing the amount of spending that may be claimed for temporary assistance for needy families maintenance of effort purposes.]

Sec. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed ~~$1,625,000.00~~ $2,425,000.00

for 2009-2010 for the purposes of this section.

(2) From the allocation in subsection (1), there is allocated

for 2009-2010 the amount necessary for payments to state supported

colleges or universities and intermediate districts providing

school bus driver safety instruction pursuant to section 51 of the

pupil transportation act, 1990 PA 187, MCL 257.1851. The payments

shall be in an amount determined by the department not to exceed

75% of the actual cost of instruction and driver compensation for

each public or nonpublic school bus driver attending a course of

instruction. For the purpose of computing compensation, the hourly

rate allowed each school bus driver shall not exceed the hourly

rate received for driving a school bus. Reimbursement compensating

the driver during the course of instruction shall be made by the

department to the college or university or intermediate district

providing the course of instruction.

(3) From the allocation in subsection (1), there is allocated

each fiscal year the amount necessary to pay the reasonable costs

of nonspecial education auxiliary services transportation provided

pursuant to section 1323 of the revised school code, MCL 380.1323.

Districts funded under this subsection shall not receive funding

under any other section of this act for nonspecial education

auxiliary services transportation.

(4) From the funds allocated in subsection (1), there is

allocated an amount not to exceed $800,000.00 for 2009-2010 for

reimbursement to districts and intermediate districts for costs

associated with the inspection of school buses and pupil

transportation vehicles by the department of state police as

required under section 715a of the Michigan vehicle code, 1949 PA

300, MCL 257.715a, and section 39 of the pupil transportation act,

1990 PA 187, MCL 257.1839. The department of state police shall

prepare a statement of costs attributable to each district for

which bus inspections are provided and submit it to the department

and to each affected district in a time and manner determined

jointly by the department and the department of state police. The

department shall reimburse each district and intermediate district

for costs detailed on the statement within 30 days after receipt of

the statement. Districts for which services are provided shall make

payment in the amount specified on the statement to the department

of state police within 45 days after receipt of the statement. The

total reimbursement of costs under this subsection shall not exceed

the amount allocated under this subsection. Notwithstanding section

17b, payments to eligible entities under this subsection shall be

paid on a schedule prescribed by the department.

Sec. 101. (1) To be eligible to receive state aid under this

act, not later than the fifth Wednesday after the pupil membership

count day and not later than the fifth Wednesday after the

supplemental count day, each district superintendent shall submit

to the center, in the form and manner prescribed by the center, the

number of pupils enrolled and in regular daily attendance in the

district as of the pupil membership count day and as of the

supplemental count day, as applicable, for the current school year.

In addition, a district maintaining school during the entire year,

as provided under section 1561 of the revised school code, MCL

380.1561, shall submit to the center, in the form and manner

prescribed by the center, the number of pupils enrolled and in

regular daily attendance in the district for the current school

year pursuant to rules promulgated by the superintendent. Not later

than the seventh Wednesday after the pupil membership count day and

not later than the seventh Wednesday after the supplemental count

day, the district shall certify the data in a form and manner

prescribed by the center. If a district fails to submit and certify

the attendance data, as required under this subsection, the center

shall notify the department and state aid due to be distributed

under this act shall be withheld from the defaulting district

immediately, beginning with the next payment after the failure and

continuing with each payment until the district complies with this

subsection. If a district does not comply with this subsection by

the end of the fiscal year, the district forfeits the amount

withheld. A person who willfully falsifies a figure or statement in

the certified and sworn copy of enrollment shall be punished in the

manner prescribed by section 161.

(2) To be eligible to receive state aid under this act, not

later than the twenty-fourth Wednesday after the pupil membership

count day and not later than the twenty-fourth Wednesday after the

supplemental count day, an intermediate district shall submit to

the center, in a form and manner prescribed by the center, the

audited enrollment and attendance data for the pupils of its

constituent districts and of the intermediate district. If an

intermediate district fails to submit the audited data as required

under this subsection, state aid due to be distributed under this

act shall be withheld from the defaulting intermediate district

immediately, beginning with the next payment after the failure and

continuing with each payment until the intermediate district

complies with this subsection. If an intermediate district does not

comply with this subsection by the end of the fiscal year, the

intermediate district forfeits the amount withheld.

(3) All of the following apply to the provision of pupil

instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours and, beginning in 2010-

2011, the required minimum number of days of pupil instruction. For

2010-2011 and for 2011-2012, the required minimum number of days of

pupil instruction is 165. Beginning in 2012-2013, the required

minimum number of days of pupil instruction is 170. However,

beginning in 2010-2011, a district shall not provide fewer days of

pupil instruction than the district provided for 2009-2010. Except

as otherwise provided in this act, a district failing to comply

with the required minimum hours and days of pupil instruction under

this subsection shall forfeit from its total state aid allocation

an amount determined by applying a ratio of the number of hours or

days the district was in noncompliance in relation to the required

minimum number of hours and days under this subsection. Not later

than August 1, the board of each district shall certify to the

department the number of hours and, beginning in 2010-2011, days of

pupil instruction in the previous school year. If the district did

not provide at least the required minimum number of hours and days

of pupil instruction under this subsection, the deduction of state

aid shall be made in the following fiscal year from the first

payment of state school aid. A district is not subject to

forfeiture of funds under this subsection for a fiscal year in

which a forfeiture was already imposed under subsection (6). Hours

or days lost because of strikes or teachers' conferences shall not

be counted as hours or days of pupil instruction. If a collective

bargaining agreement that provides a complete school calendar is in

effect for employees of a district as of the effective date of the

2009 amendatory act that amended this subsection, and if that

school calendar is not in compliance with this subsection, then

this subsection does not apply to that district until after the

expiration of that collective bargaining agreement.

(b) Except as otherwise provided in subdivision (c), a

district not having at least 75% of the district's membership in

attendance on any day of pupil instruction shall receive state aid

in that proportion of 1/180 that the actual percent of attendance

bears to the specified percentage.

operates a department-approved alternative education program and

that does not provide instruction for pupils in all of grades K to

12, the superintendent shall grant a waiver for a period of 3

school years from the requirements of subdivision (b) in order to

conduct a pilot study. The waiver shall indicate that an eligible

district is subject to the proration provisions of subdivision (b)

only if the district does not have at least 50% of the district’s

membership in attendance on any day of pupil instruction. In order

to be eligible for this waiver, a district must maintain records to

substantiate its compliance with the following requirements during

the pilot study:

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil’s individual education plan.

(d) The superintendent shall promulgate rules for the

implementation of this subsection.

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

30 hours or 6 days for which pupil instruction is not provided

because of conditions not within the control of school authorities,

such as severe storms, fires, epidemics, utility power

unavailability, water or sewer failure, or health conditions as

defined by the city, county, or state health authorities, shall be

counted as hours and days of pupil instruction. With the approval

of the superintendent of public instruction, the department shall

count as hours and days of pupil instruction for a fiscal year not

more than 30 additional hours or 6 additional days for which pupil

instruction is not provided in a district after April 1 of the

applicable school year due to unusual and extenuating occurrences

resulting from conditions not within the control of school

authorities such as those conditions described in this subsection.

Subsequent such hours or days shall not be counted as hours or days

of pupil instruction.

(5) A district shall not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) Not later than April 15 of each fiscal year, the board of

each district shall certify to the department the planned number of

hours and days of pupil instruction in the district for the school

year ending in the fiscal year. In addition to any other penalty or

forfeiture under this section, if at any time the department

determines that 1 or more of the following has occurred in a

district, the district shall forfeit in the current fiscal year

beginning in the next payment to be calculated by the department a

proportion of the funds due to the district under this act that is

equal to the proportion below the required minimum number of hours

and days of pupil instruction under subsection (3), as specified in

the following:

(a) The district fails to operate its schools for at least the

required minimum number of hours and days of pupil instruction

under subsection (3) in a school year, including hours and days

counted under subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours and days of pupil instruction under subsection (3) in a

school year, including hours and days counted under subsection (4).

(7) In providing the minimum number of hours and days of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, shall be considered to be pupil instruction time for

the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a junior reserve officer training corps (JROTC) program shall be

considered to be pupil instruction time regardless of whether the

instructor is a certificated teacher if all of the following are

met:

(i) The instructor has met all of the requirements established

by the United States department of defense and the applicable

branch of the armed services for serving as an instructor in the

junior reserve officer training corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) The department shall apply the guidelines under subsection

(7) in calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent may waive for a district the minimum

number of hours and days of pupil instruction requirement of

subsection (3) for a department-approved alternative education

program or another innovative program approved by the department.

If a district applies for and receives a waiver under this

subsection and complies with the terms of the waiver, for the

fiscal year covered by the waiver the district is not subject to

forfeiture under this section for the specific program covered by

the waiver. If the district does not comply with the terms of the

waiver, the amount of the forfeiture shall be calculated based upon

a comparison of the number of hours and days of pupil instruction

actually provided to the minimum number of hours and days of pupil

instruction required under subsection (3).

(10) ~~If at least 5 of the hours of professional development~~

~~are provided online by the Michigan virtual university under~~

~~section 98 or by another department-approved intermediate district~~

~~provider of online professional development~~ All of the following

apply to counting hours of pupil instruction:

(a) Except as otherwise provided in this subdivision and

subdivision (b), beginning in 2010-2011, a district may count up to

38 hours of qualifying professional development for teachers as

hours of pupil instruction if at least 5 of the hours of

professional development are provided online by the Michigan

virtual university under section 98 or by another department-

approved intermediate district provider of online professional

development. However, if a collective bargaining agreement is in

effect for employees of a district as of October 1, 2009 that

provides for professional development that is not in compliance

with the requirement under this subdivision with regard to online

professional development, then until the fiscal year that begins

after the expiration of that collective bargaining agreement a

district may count up to 38 hours of qualifying professional

development for teachers as hours of pupil instruction without

meeting that requirement.

(b) ~~However, if~~ If a collective bargaining agreement that

provides more than 38 but not more than 51 hours of professional

development for teachers is in effect for employees of a district

as of October 1, 2006, then until the fiscal year that begins after

House Bill No. 4860 (H-1) as amended November 5, 2009

the expiration of that collective bargaining agreement a district

may count up to 51 hours of qualifying professional development for

teachers, including the 5 hours of online professional development,

as hours of pupil instruction.

subsection shall notify the department of its election.

(d) As used in this subsection, "qualifying professional

development" means professional development that is focused on 1 or

more of the following:

(i) ~~(a)~~ Achieving or improving adequate yearly progress as

defined under the no child left behind act of 2001, Public Law 107-

110.

(ii) ~~(b)~~ Achieving accreditation or improving a school's

accreditation status under section 1280 of the revised school code,

MCL 380.1280.

(iii) ~~(c)~~ Achieving highly qualified teacher status as defined

under the no child left behind act of 2001, Public Law 107-110.

(iv) ~~(d)~~ Maintaining teacher certification.

Enacting section 1. In accordance with section 30 of article I

of the state constitution of 1963, total state spending in this

amendatory act and in 2009 PA 121 from state sources for fiscal

year 2009-2010 is estimated at [$10,647,555,600.00] and state

appropriations to be paid to local units of government for fiscal

year 2009-2010 are estimated at [$10,531,822,000.00].