November 6, 2014, Introduced by Reps. Roberts, Brunner, Nathan, Irwin and Lipton and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 503c, 504a, 523c, 525, 553c, 557, and 1311h
(MCL 380.503c, 380.504a, 380.523c, 380.525, 380.553c, 380.557, and
380.1311h), sections 503c, 523c, and 553c as added by 2011 PA 277,
section 504a as amended and section 525 as added by 2003 PA 179,
section 557 as added by 2009 PA 205, and section 1311h as amended
by 2012 PA 620.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 503c. (1) Beginning with management agreements described
in
this section that are entered into or renewed after the
effective
date of this section, March
28, 2012, if the board of
directors of a public school academy enters into or renews a
management agreement with an educational management organization to
carry out the operations of the public school academy, both of the
following apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors at
least annually all of the same information that a school district
is required to disclose under section 18(2) of the state school aid
act of 1979, MCL 388.1618, for the most recent school fiscal year
for which that information is available.
(b) Within 30 days after receiving the information under
subdivision (a), the board of directors shall make all of the
information it receives under subdivision (a) available through a
link on the public school academy's website homepage, in a form and
manner prescribed by the department.
(2) In addition to the requirements under subsection (1),
beginning with management agreements described in this section that
are entered into or renewed after the effective date of the
amendatory act that added this subsection, if the board of
directors of a public school academy enters into or renews a
management agreement with an educational management organization to
carry out the operations of the public school academy, all of the
following apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors, at
least annually, audited financial statements for the educational
management organization that disclose the specific financial
expenditures of the money received by the educational management
organization under the contract.
(b) The management agreement shall require the educational
management organization to provide to the board of directors, for
each employee, officer, or board member of the educational
management organization whose compensation exceeds $100,000.00 per
year, a list providing a description and cost of each fringe
benefit that is included in the individual's compensation package.
(c) Within 30 days after receiving the information under
subdivisions (a) and (b), the board of directors shall make all of
the information it receives under subdivisions (a) and (b)
available through a link on the public school academy's website
homepage, in a form and manner prescribed by the department.
(3)
(2) As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with a public school academy.
(b) "Entity" means a partnership, nonprofit or business
corporation, or any other association, corporation, trust, or other
legal entity.
(c) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to a public school academy.
(d) "School fiscal year" means the period that begins July 1
and ends June 30.
Sec. 504a. In addition to other powers set forth in this part,
a public school academy may take action to carry out the purposes
for which it was incorporated under this part, including, but not
limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to section 503b, to acquire, hold, and own in its
own name real and personal property, or interests in real or
personal property, for educational purposes by purchase, gift,
grant, devise, bequest, lease, sublease, installment purchase
agreement, land contract, option, or condemnation, and subject to
mortgages, security interests, or other liens; and to sell or
convey the property as the interests of the public school academy
require.
(c) To receive, disburse, and pledge funds for lawful
purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the public school academy, if the agreement is in
compliance with sections 7 and 18 of the state school aid act of
1979, MCL 388.1607 and 388.1618.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the public school academy in the furtherance of its public
purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by a public school academy
is not subject to section 1351a(4) or section 1351(2) to (4). Bonds
issued under this section shall be full faith and credit
obligations of the public school academy, pledging the general
funds or any other money available for such a purpose. Bonds issued
under this section are subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
Sec. 523c. (1) Beginning with management agreements described
in this section that are entered into or renewed after the
effective date of this section, if the board of directors of an
urban high school academy enters into or renews a management
agreement with an educational management organization to carry out
the operations of the urban high school academy, both of the
following apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors at
least annually all of the same information that a school district
is required to disclose under section 18(2) of the state school aid
act of 1979, MCL 388.1618, for the most recent school fiscal year
for which that information is available.
(b) Within 30 days after receiving the information under
subdivision (a), the board of directors shall make all of the
information it receives under subdivision (a) available through a
link on the urban high school academy's website homepage, in a form
and manner prescribed by the department.
(2) In addition to the requirements under subsection (1),
beginning with management agreements described in this section that
are entered into or renewed after the effective date of the
amendatory act that added this subsection, if the board of
directors of an urban high school academy enters into or renews a
management agreement with an educational management organization to
carry out the operations of the urban high school academy, all of
the following apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors, at
least annually, audited financial statements for the educational
management organization that disclose the specific financial
expenditures of the money received by the educational management
organization under the contract.
(b) The management agreement shall require the educational
management organization to provide to the board of directors, for
each employee, officer, or board member of the educational
management organization whose compensation exceeds $100,000.00 per
year, a list providing a description and cost of each fringe
benefit that is included in the individual's compensation package.
(c) Within 30 days after receiving the information under
subdivisions (a) and (b), the board of directors shall make all of
the information it receives under subdivisions (a) and (b)
available through a link on the urban high school academy's website
homepage, in a form and manner prescribed by the department.
(3)
(2) As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with an urban high school
academy.
(b) "Entity" means a partnership, nonprofit or business
corporation, or any other association, corporation, trust, or other
legal entity.
(c) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to an urban high school academy.
(d) "School fiscal year" means the period that begins July 1
and ends June 30.
Sec. 525. In addition to other powers set forth in this part,
an urban high school academy may take action to carry out the
purposes for which it was incorporated under this part, including,
but not limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to section 523a, to acquire, hold, and own in its
own name real and personal property, or interests in real or
personal property, for educational purposes by purchase, gift,
grant, devise, bequest, lease, sublease, installment purchase
agreement, land contract, option, or condemnation, and subject to
mortgages, security interests, or other liens; and to sell or
convey the property as the interests of the urban high school
academy require.
(c) To receive, disburse, and pledge funds for lawful
purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the urban high school academy, if the agreement is
in compliance with sections 7 and 18 of the state school aid act of
1979, MCL 388.1607 and 388.1618.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the urban high school academy in the furtherance of its public
purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by an urban high school
academy are not subject to section 1351a(4) or section 1351(2) to
(4). Bonds issued under this section shall be full faith and credit
obligations of the urban high school academy, pledging the general
funds or any other money available for such a purpose. Bonds issued
under this section are subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
Sec. 553c. (1) Beginning with management agreements described
in this section that are entered into or renewed after the
effective date of this section, if the board of directors of a
school of excellence enters into or renews a management agreement
with an educational management organization to carry out the
operations of the school of excellence, both of the following
apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors at
least annually all the same information that a school district is
required to disclose under section 18(2) of the state school aid
act of 1979, MCL 388.1618, for the most recent school fiscal year
for which that information is available.
(b) Within 30 days after receiving the information under
subdivision (a), the board of directors shall make all of the
information it receives under subdivision (a) available through a
link on the school of excellence's website homepage, in a form and
manner prescribed by the department.
(2) In addition to the requirements under subsection (1),
beginning with management agreements described in this section that
are entered into or renewed after the effective date of the
amendatory act that added this subsection, if the board of
directors of a school of excellence enters into or renews a
management agreement with an educational management organization to
carry out the operations of the school of excellence, all of the
following apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors, at
least annually, audited financial statements for the educational
management organization that disclose the specific financial
expenditures of the money received by the educational management
organization under the contract.
(b) The management agreement shall require the educational
management organization to provide to the board of directors, for
each employee, officer, or board member of the educational
management organization whose compensation exceeds $100,000.00 per
year, a list providing a description and cost of each fringe
benefit that is included in the individual's compensation package.
(c) Within 30 days after receiving the information under
subdivisions (a) and (b), the board of directors shall make all of
the information it receives under subdivisions (a) and (b)
available through a link on the school of excellence's website
homepage, in a form and manner prescribed by the department.
(3)
(2) As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with a school of excellence.
(b) "Entity" means a partnership, nonprofit or business
corporation, or any other association, corporation, trust, or other
legal entity.
(c) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to a school of excellence.
(d) "School fiscal year" means the period that begins July 1
and ends June 30.
Sec. 557. In addition to other powers set forth in this part,
a school of excellence may take action to carry out the purposes
for which it was incorporated under this part, including, but not
limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to section 555, to acquire, hold, and own in its
own name real and personal property, or interests in real or
personal property, for educational purposes by purchase, gift,
grant, devise, bequest, lease, sublease, installment purchase
agreement, land contract, option, or condemnation, and subject to
mortgages, security interests, or other liens; and to sell or
convey the property as the interests of the school of excellence
require.
(c) To receive, disburse, and pledge funds for lawful
purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the school of excellence, if the agreement is in
compliance with sections 7 and 18 of the state school aid act of
1979, MCL 388.1607 and 388.1618.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the school of excellence in the furtherance of its public purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by a school of excellence
is not subject to section 1351a(4) or section 1351(2) to (4). Bonds
issued under this section shall be full faith and credit
obligations of the school of excellence, pledging the general funds
or any other money available for such a purpose. Bonds issued under
this section are subject to the revised municipal finance act, 2001
PA 34, MCL 141.2101 to 141.2821.
Sec. 1311h. (1) In addition to other powers set forth in
sections
1311b to 1311l, 1311m, a
strict discipline academy may take
action to carry out the purposes for which it was incorporated
under
sections 1311b to 1311l, 1311m, including,
but not limited to,
all of the following:
(a) To sue and be sued in its name.
(b) To acquire, hold, and own in its own name real and
personal property, or interests in real or personal property, for
educational purposes by purchase, gift, grant, devise, bequest,
lease, sublease, installment purchase agreement, land contract,
option, or condemnation, and subject to mortgages, security
interests, or other liens; and to sell or convey the property as
the interests of the strict discipline academy require.
(c) To receive and disburse funds for lawful purposes.
(d)
To Subject to subsections
(2) and (3), to enter into
binding legal agreements with persons or entities as necessary for
the operation, management, financing, and maintenance of the strict
discipline academy.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the strict discipline academy in the furtherance of its public
purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by a strict discipline
academy is not subject to section 1351a(4) or section 1351(2) to
(4). Bonds issued under this section shall be full faith and credit
obligations of the strict discipline academy, pledging the general
funds or any other money available for such a purpose. Bonds issued
under this section are subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) Beginning with management agreements that are entered into
or renewed after the effective date of the amendatory act that
added this subsection, if the board of directors of a strict
discipline academy enters into or renews a management agreement
with an educational management organization to carry out the
operations of the strict discipline academy, both of the following
apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors at
least annually all the same information that a school district is
required to disclose under section 18(2) of the state school aid
act of 1979, MCL 388.1618, for the most recent school fiscal year
for which that information is available.
(b) Within 30 days after receiving the information under
subdivision (a), the board of directors shall make all of the
information it receives under subdivision (a) available through a
link on the strict discipline academy's website homepage, in a form
and manner prescribed by the department.
(3) Beginning with management agreements that are entered into
or renewed after the effective date of the amendatory act that
added this subsection, if the board of directors of a strict
discipline academy enters into or renews a management agreement
with an educational management organization to carry out the
operations of the strict discipline academy, all of the following
apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors, at
least annually, audited financial statements for the educational
management organization that disclose the specific financial
expenditures of the money received by the educational management
organization under the contract.
(b) The management agreement shall require the educational
management organization to provide to the board of directors, for
each employee, officer, or board member of the educational
management organization whose compensation exceeds $100,000.00 per
year, a list providing a description and cost of each fringe
benefit that is included in the individual's compensation package.
(c) Within 30 days after receiving the information under
subdivisions (a) and (b), the board of directors shall make all of
the information it receives under subdivisions (a) and (b)
available through a link on the strict discipline academy's website
homepage, in a form and manner prescribed by the department.
(4) As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with a strict discipline
academy.
(b) "Entity" means a partnership, nonprofit or business
corporation, or any other association, corporation, trust, or other
legal entity.
(c) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to a strict discipline academy.
(d) "School fiscal year" means the period that begins July 1
and ends June 30.