SB-0710, As Passed Senate, March 22, 2016
SUBSTITUTE FOR
SENATE BILL NO. 710
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending the title and sections 3, 5, 6, 11, 11a, 501, 502, 507,
522, 528, 551, 552, 561, 654, 705, 921, 1147, 1225, 1229, 1231,
1351a, and 1356 (MCL 380.3, 380.5, 380.6, 380.11, 380.11a, 380.501,
380.502, 380.507, 380.522, 380.528, 380.551, 380.552, 380.561,
380.654, 380.705, 380.921, 380.1147, 380.1225, 380.1229, 380.1231,
380.1351a, and 380.1356), the title as amended by 2003 PA 179,
section 3 as amended by 2007 PA 45, section 5 as amended by 2011 PA
232, section 6 as amended by 2009 PA 205, section 11 as amended by
1995 PA 289, section 11a as amended by 2010 PA 91, sections 501,
502, 507, 522, 528, 551, and 561 as amended by 2011 PA 277, section
552 as amended by 2012 PA 129, section 705 as amended by 2003 PA
299, section 1147 as amended by 2014 PA 479, section 1225 as
amended by 2012 PA 1, section 1229 as amended by 2011 PA 105,
section 1231 as amended by 2002 PA 735, section 1351a as amended by
2002 PA 65, and section 1356 as amended by 2002 PA 181, and by
adding sections 12b and 1284c and part 5b; and to repeal acts and
parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to provide a system of public instruction and
elementary and secondary schools; to revise, consolidate, and
clarify the laws relating to elementary and secondary education; to
provide for the organization, regulation, and maintenance of
schools, school districts, public school academies, intermediate
school districts, and other public school entities; to prescribe
rights, powers, duties, and privileges of schools, school
districts, public school academies, intermediate school districts,
and other public school entities; to provide for the regulation of
school teachers and certain other school employees; to provide for
school elections and to prescribe powers and duties with respect
thereto; to provide for the levy and collection of taxes; to
provide for the borrowing of money and issuance of bonds and other
evidences of indebtedness; to establish a fund and provide for
expenditures from that fund; to make appropriations for certain
purposes; to provide for and prescribe the powers and duties of
certain state departments, the state board of education, and
certain other boards and officials; to provide for licensure of
boarding schools; to prescribe penalties; and to repeal acts and
parts of acts.
Sec. 3. (1) "Area" as used in the phrase "area vocational-
technical education program" or "area career and technical
education program" means the geographical territory, within the
boundaries of a K to 12 school district, an intermediate school
district, or a community college district, that is designated by
the department as the service area for the operation of an area
vocational-technical education program.
(2) "Area vocational-technical education program", "area
career and technical education program", or "career and technical
education program" means a program of organized, systematic
instruction
designed to prepare the following persons individuals
for useful employment in recognized occupations:
(a)
Persons Individuals participating in career and technical
education readiness activities that lead to enrollment in a career
and technical education program in high school.
(b)
Persons Individuals enrolled in high school in a school
district, intermediate school district, public school academy, or
nonpublic school.
(c)
Persons Individuals who have completed or left high school
and who are available for full-time study in preparation for
entering the labor market.
(d)
Persons Individuals who have entered the labor market and
who need training or retraining to achieve stability or advancement
in employment.
(3) "Board" or "school board" means the governing body of a
local school district unless clearly otherwise stated.
(4) "Boarding school" means a place accepting for board, care,
and instruction 5 or more children under 16 years of age.
(5) "Community district" means a school district organized
under part 5b.
(6) (5)
"Constituent district"
means a local school district
the territory of which is entirely within and is an integral part
of an intermediate school district.
Sec.
5. (1) "Local act school district" or "special act school
district"
means a district governed by a special
or local act or
chapter of a local act. "Local school district" and "local school
district board" as used in article 3 include a local act school
district and a local act school district board.
(2) "Membership" means the number of full-time equivalent
pupils in a public school as determined by the number of pupils
registered for attendance plus pupils received by transfer and
minus
pupils lost as defined by rules promulgated by the state
board.superintendent of public instruction.
(3) "Michigan election law" means the Michigan election law,
1954 PA 116, MCL 168.1 to 168.992.
(4) "Nonpublic school" means a private, denominational, or
parochial school.
(5) "Objectives" means measurable pupil academic skills and
knowledge.
(6) "Public school" means a public elementary or secondary
educational entity or agency that is established under this act or
under other law of this state, has as its primary mission the
teaching and learning of academic and vocational-technical skills
and knowledge, and is operated by a school district, local act
school
district, special act school district, intermediate school
district, school of excellence corporation, public school academy
corporation, strict discipline academy corporation, urban high
school
academy corporation, or by the department, or the state
board, or another public body. Public school also includes a
laboratory school or other elementary or secondary school that is
controlled and operated by a state public university described in
section 4, 5, or 6 of article VIII of the state constitution of
1963. Public school does not include an education commission under
section 390 or a nonpublic school.
(7) "Public school academy" means a public school academy
established under part 6a and, except as used in part 6a, also
includes an urban high school academy established under part 6c, a
school of excellence established under part 6e, and a strict
discipline academy established under sections 1311b to 1311m.
(8) "Pupil membership count day" of a school district means
that term as defined in section 6 of the state school aid act of
1979, MCL 388.1606.
(9) "Qualifying school district" means a school district that
was previously organized and operated as a first class school
district governed by part 6 that has a pupil membership of less
than 100,000 enrolled on its most recent pupil membership count
day, including, but not limited to, a school district that was
previously organized and operated as a first class school district
before the effective date of the amendatory act that added this
subsection.
(10) (9)
"Regular school election"
or "regular election" means
the election held in a school district, local act school district,
or intermediate school district to elect a school board member in
the regular course of the terms of that office and held on the
school district's regular election date as determined under section
642c of the Michigan election law, MCL 168.642c.
(11) (10)
"Reorganized intermediate
school district" means an
intermediate school district formed by consolidation or annexation
of 2 or more intermediate school districts under sections 701 and
702.
(12) (11)
"Rule" means a rule
promulgated under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
Sec. 6. (1) "School district" or "local school district" means
a general powers school district organized under this act,
regardless of previous classification, a community district, or a
school district of the first class.
(2) "School district filing official" means the school
district election coordinator as defined in section 4 of the
Michigan election law, MCL 168.4, or an authorized agent of the
school district election coordinator.
(3) "School elector" means a person qualified as an elector
under section 492 of the Michigan election law, MCL 168.492, and
resident of the school district or intermediate school district on
or before the thirtieth day before the next ensuing regular or
special school election.
(4) "School month" means a 4-week period of 5 days each unless
otherwise specified in the teacher's contract.
(5) "School of excellence" means a school of excellence
established under part 6e.
(6) "Special education building and equipment" means a
structure or portion of a structure or personal property accepted,
leased, purchased, or otherwise acquired, prepared, or used for
special education programs and services.
(7) "Special education personnel" means persons engaged in and
having professional responsibility for students with a disability
in special education programs and services including, but not
limited to, teachers, aides, school social workers, diagnostic
personnel, physical therapists, occupational therapists,
audiologists, teachers of speech and language, instructional media-
curriculum specialists, mobility specialists, teacher consultants,
supervisors, and directors.
(8) "Special education programs and services" means
educational and training services designed for students with a
disability
and operated by local a school districts, district,
local
act school districts, district,
intermediate school
districts,
district, the Michigan schools for the deaf and blind,
the
department of community health, the
department of health and
human services, or a combination of these, and ancillary
professional services for students with a disability rendered by
agencies
approved by the state board. superintendent
of public
instruction. The programs shall include vocational training, but
need not include academic programs of college or university level.
(9) "Special school election" or "special election" means a
school district election to fill a vacancy on the school board or
submit a ballot question to the school electors that is held on a
regular election date established under section 641 of the Michigan
election law, MCL 168.641.
(10) "State approved nonpublic school" means a nonpublic
school that complies with 1921 PA 302, MCL 388.551 to 388.558.
(11) "State board" means the state board of education created
by section 3 of article VIII of the state constitution of 1963
unless clearly otherwise stated.
(12) "Student with a disability" means that term as defined in
R 340.1702 of the Michigan administrative code.
(13) "Department" means the department of education created
and
operating under sections 300 to 305
of the executive
organization act of 1965, 1965 PA 380, MCL 16.400 to 16.405.
(14) "State school aid" means allotments from the general
appropriating act for the purpose of aiding in the support of the
public schools of the state, including, but not limited to,
appropriations from the state school aid fund under the state
school aid act of 1979.
(15) "The state school aid act of 1979" means the state school
aid
act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772.388.1896.
Sec. 11. Each school district, except a school district of the
first class or a community district, shall be organized and
conducted as a general powers school district regardless of
previous classification.
Sec. 11a. (1) Beginning on July 1, 1996, each school district
formerly organized as a primary school district or as a school
district of the fourth class, third class, or second class shall be
a general powers school district under this act.
(2) Beginning on July 1, 1996, a school district operating
under a special or local act shall operate as a general powers
school district under this act except to the extent that the
special or local act is inconsistent with this act. Upon repeal of
a special or local act that governs a school district, that school
district shall become a general powers school district under this
act.
(3) A general powers school district has all of the rights,
powers, and duties expressly stated in this act; may exercise a
power implied or incident to a power expressly stated in this act;
and, except as otherwise provided by law, may exercise a power
incidental or appropriate to the performance of a function related
to
operation of the school district a public school and the
provision of public education services in the interests of public
elementary and secondary education in the school district,
including, but not limited to, all of the following:
(a) Educating pupils. In addition to educating pupils in
grades K-12, this function may include operation of preschool,
lifelong education, adult education, community education, training,
enrichment, and recreation programs for other persons. A school
district may do either or both of the following:
(i) Educate pupils by directly operating 1 or more public
schools on its own.
(ii) Cause public education services to be provided for pupils
of the school district through an agreement, contract, or other
cooperative agreement with another public entity, including, but
not limited to, another school district or an intermediate school
district.
(b) Providing for the safety and welfare of pupils while at
school or a school sponsored activity or while en route to or from
school or a school sponsored activity.
(c)
Acquiring, Except as
otherwise provided in this section,
acquiring, constructing, maintaining, repairing, renovating,
disposing of, or conveying school property, facilities, equipment,
technology, or furnishings.
(d) Hiring, contracting for, scheduling, supervising, or
terminating employees, independent contractors, and others,
including, but not limited to, another school district or an
intermediate school district, to carry out school district powers.
A school district may indemnify its employees.
(e)
Receiving, accounting for, investing, or expending school
district
public school money; borrowing money and pledging school
district
public school funds for repayment; and qualifying for
state school aid and other public or private money from local,
regional, state, or federal sources.
(4) A general powers school district may enter into
agreements, contracts, or other cooperative arrangements with other
entities, public or private, including, but not limited to, another
school district or an intermediate school district, or join
organizations as part of performing the functions of the school
district. An agreement, contract, or other cooperative arrangement
that is entered into under this act is not required to comply with
the provisions of the urban cooperation act of 1967, 1967 (Ex Sess)
PA 7, MCL 124.501 to 124.512, as provided under section 503 of that
act, MCL 124.503.
(5) A general powers school district is a body corporate and
shall be governed by a school board. An act of a school board is
not valid unless approved, at a meeting of the school board, by a
majority vote of the members lawfully serving on the board.
(6) The board of a general powers school district shall adopt
bylaws. These bylaws may establish or change board procedures, the
number of board officers, titles and duties of board officers, and
any other matter related to effective and efficient functioning of
the board. Regular meetings of the board shall be held at least
once each month, at the time and place fixed by the bylaws. Special
meetings may be called and held in the manner and for the purposes
specified in the bylaws. Board procedures, bylaws, and policies in
effect on the effective date of this section shall continue in
effect until changed by action of the board.
(7) The board of a school district shall be elected as
provided under this act and the Michigan election law. The number
of members of the board of a general powers school district shall
remain the same as for that school district before July 1, 1996
unless changed by the school electors of the school district at a
regular or special school election. A ballot question for changing
the number of board members may be placed on the ballot by action
of the board or by petition submitted by school electors as
provided under chapter XIV of the Michigan election law, MCL
168.301 to 168.316.
(8) Members of the board of a general powers school district
shall be elected by the school electors for terms of 4 or 6 years,
as provided by the school district's bylaws. At each regular school
election, members of the board shall be elected to fill the
positions of those whose terms will expire. A term of office begins
as provided in section 302 of the Michigan election law, MCL
168.302, and continues until a successor is elected and qualified.
(9) The board of a general powers school district may submit
to the school electors of the school district a question that is
within the scope of the powers of the school electors and that the
board considers proper for the management of the school system or
the advancement of education in the school district. Upon the
adoption of a question by the board, the board shall submit the
question to the school electors by complying with section 312 of
the Michigan election law, MCL 168.312.
(10) A special election may be called by the board of a
general powers school district as provided under chapter XIV of the
Michigan election law, MCL 168.301 to 168.316.
(11) Unless expressly provided in 1995 PA 289, the powers of a
school board or school district are not diminished by this section
or by 1995 PA 289.
(12) A school district operating a public library, public
museum, or community recreational facility as of July 1, 1996 may
continue to operate the public library, public museum, or community
recreational facility.
(13) A school district may establish and administer
scholarships for its students or graduates to support their
attendance at a postsecondary educational institution from funds
the school district receives as a result of a compact entered into
between this state and a federally recognized Indian tribe pursuant
to the Indian gaming regulatory act, Public Law 100-497. A school
district that establishes a scholarship program funded under this
subsection shall ensure that the scholarship program provides for
all of the following:
(a) That a student or graduate is not eligible to be awarded a
scholarship unless the student or graduate is enrolled in the
school district for all of grades 9 to 12 and meets 1 of the
following:
(i) Is a resident of the school district for all of grades 9
to 12.
(ii) Was enrolled in the school district for the 2009-2010
school year but was not a resident of the school district for that
school year, and is enrolled in the school district continuously
after that school year until graduation.
(b) That the amount of a scholarship awarded to a student or
graduate who was not enrolled in and a continuous resident of the
school district for all of grades K to 12 shall be adjusted based
on length of enrollment and continuous residency or, for a student
or graduate described in subdivision (a)(ii), based on length of
enrollment.
Sec. 12b. (1) Beginning on the effective date of the
amendatory act that added this section, if a school district is or
becomes a qualifying school district, the school district shall
lose its organization and be dissolved as provided in subsections
(2) and (3).
(2) If a school district loses its organization under
subsection (1), except as otherwise provided in this section, all
records, funds, and property of the qualifying school district are
transferred on the transfer date to a community district created
with the same geographic boundaries of the qualifying school
district under part 5b. A school building or other real property
owned by and located in the qualifying school district becomes part
of and owned by the community district. If a qualifying school
district has outstanding debt on the transfer date, the qualifying
school district shall retain a limited separate identity as a
school district and the territory of the qualifying school district
shall continue as a separate taxing unit only for the limited
public purposes of the repayment of the debt until the debt is
retired and protecting the credit of this state and of its school
districts. Before the transfer date, the governor shall appoint an
individual authorized to exercise powers of the qualifying school
district as the transition manager for the community district to
perform functions and satisfy responsibilities under this
subsection until the elected members of the school board of the
community district are elected and take office under section 384.
Until the elected members of the school board of the community
district are elected and take office under section 384, the
transition manager shall exercise the powers, perform the
functions, and satisfy the responsibilities of the school board and
officers of the community district and shall perform the functions
and satisfy the responsibilities of the school board and officers
of the qualifying school district relating to the repayment of debt
and the dissolution of the qualifying school district, including,
but not limited to, all of the following:
(a) Certifying and levying taxes for satisfaction of the debt
in the name of the qualifying school district.
(b) Conducting school district elections.
(c) Doing all other things relative to the repayment of
outstanding debt of the qualifying school district required by law
and by the terms of the debt, including, but not limited to,
levying or renewing a school operating tax under section 1211, or
refunding or refinancing debt at a lower rate.
(d) Doing all other things relative to the dissolution of the
qualifying school district.
(3) As permitted under federal law, on the transfer date the
superintendent of public instruction shall allocate to a community
district receiving the functions and responsibilities of a
qualifying school district for a public school under subsection (2)
all applicable grants under 20 USC 6333, 20 USC 6334, 20 USC 6335,
and 20 USC 6337, and other federal funds that would otherwise be
made available for grants to or federal funding for the public
school or make other adjustments in the allocation of federal funds
to implement the transfer of functions and responsibilities for the
public school.
(4) Effective on the transfer date for a qualifying school
district and the community district created with the same
geographic boundaries of the qualifying school district under part
5b, all of the following apply:
(a) The community district acquires, succeeds to, and assumes
the exclusive right, responsibility, and authority to own, occupy,
operate, control, use, lease, and convey the facilities of the
qualifying school district existing as of the transfer date,
including all lands, buildings, improvements, structures,
easements, rights of access, and all other privileges and
appurtenances. The officers of the qualifying school district shall
execute any instruments of conveyance, assignment, and transfer
that are necessary or appropriate to accomplish the acquisition and
succession under this subdivision.
(b) The community district acquires, succeeds to, and assumes
all rights, title, and interests in and to the fixtures, equipment,
materials, furnishings, and other personal property owned and used
by the qualifying school district as of the transfer date. The
officers of the qualifying school district shall execute any
instruments of conveyance, assignment, and transfer that are
necessary or appropriate to accomplish the acquisition and
succession under this subdivision.
(c) Except as otherwise provided in this section, the
community district acquires, succeeds to, and assumes all of the
rights of the qualifying school district relating to the qualifying
school district under any ordinances, agreements, or other
instruments and under law. This succession includes, and there is
transferred to the community district, all licenses, permits,
approvals, or awards related to the qualifying school district
along with all grant agreements, grant pre-applications, and the
right to receive the balance of any funds payable under the
agreements.
(d) The community district has the right and authority to own,
occupy, operate, control, use, lease, and convey the facilities
transferred by the qualifying school district, subject to any liens
on the real property and restrictions and limitations on the use of
the real property.
(e) Except for debt or other obligations retained by the
qualifying school district under this section, the community
district has the qualifying school district's right, title, and
interest in and all of the qualifying school district's
responsibilities and authority arising under leases, concessions,
and other contracts for facilities.
(f) All records and files, software, and software licenses
required for financial management, personnel management, accounting
and inventory systems, or general administration of the qualifying
school district are transferred to the community district.
(g) A community district acquires, succeeds to, and assumes
all of the rights, duties, and obligations under a collective
bargaining agreement applicable to the qualifying school district
on the transfer date. The terms and conditions of that collective
bargaining agreement applicable to employees of the qualifying
school district on the transfer date shall be the terms and
conditions applicable to employees of the community district and
the community district shall be the successor employer for
employees of the qualifying school district on the transfer date.
An individual who is entitled to employment by the qualifying
school district on the transfer date shall be entitled to
employment by the community district following the transfer to the
community district.
(5) A transfer to a community district under this section does
not impair a contract with a party in privity with the qualifying
school district.
(6) Upon the transfer to a community district, the qualifying
school district is relieved from all operational jurisdiction over
the qualifying school district and facilities and is relieved from
all further costs and responsibility arising from or associated
with operating a public school or providing public education
services, except as otherwise required under obligations retained
by the qualifying school district under this section, including,
but not limited to, debt.
(7) A qualifying school district shall do all of the
following:
(a) Refrain from any action that would impair a community
district's exercise of the powers granted to the community district
under this section or part 5b, or that would impair the efficient
operation and management of the community district.
(b) Take all action reasonably necessary to cure any defects
in title to property transferred from the qualifying school
district to the community district.
(c) Upon creation of a community district and before the
transfer date, conduct operations of the qualifying school district
in the ordinary and usual course of business.
(d) Comply with the terms and conditions of any loan agreement
between the qualifying school district and the local financial
emergency assistance loan board under the emergency municipal loan
act, 1980 PA 243, MCL 141.931 to 141.942, including, but not
limited to, any terms and conditions providing for the payment of
transitional operating costs.
(e) Notify the state treasurer upon the repayment of all
outstanding operating obligations of the qualifying school
district.
(f) Notify the state treasurer upon the repayment of all
outstanding debt of the qualifying school district.
(8) Upon the election and assumption of duties by the members
of the initial elected school board of the community district, the
school board of the qualifying school district is dissolved and the
functions and responsibilities of the qualifying school district
shall be exercised by the community district on behalf of the
qualifying school district until the qualifying school district is
fully dissolved under subsection (11).
(9) If the state treasurer is notified that all outstanding
operating obligations of the qualifying school district have been
repaid, the state treasurer shall verify whether all outstanding
obligations of the qualifying school district have been repaid. The
state treasurer also may determine that the outstanding operating
obligations of a qualifying school district have been satisfied on
his or her own without notice. If the state treasurer determines
that all outstanding operating obligations of the qualifying school
district have been repaid, the state treasurer shall certify in a
written notice to a community district that has the same geographic
boundaries as the qualifying school district that the outstanding
operating obligations of the qualifying school district have been
repaid.
(10) If the state treasurer is notified that all outstanding
debt of the qualifying school district has been repaid, the state
treasurer shall verify whether all of the outstanding debt of the
qualifying school district has been repaid. The state treasurer
also may determine that the outstanding debt of a qualifying school
district has been repaid on his or her own without notice. If the
state treasurer determines that all of the outstanding debt of the
qualifying school district has been repaid, the state treasurer
shall certify in a written notice to a community district that has
the same geographic boundaries as the qualifying district that all
outstanding debt of the qualifying school district has been repaid.
(11) Upon certification by the state treasurer under
subsection (10), the qualifying school district is fully dissolved
and any remaining assets of the qualifying school district are
transferred to the community district.
(12) As used in this section:
(a) "Debt" means that term as defined in section 103 of the
revised municipal finance act, 2001 PA 34, MCL 141.2103, and also
includes any of the following:
(i) Obligations of the qualifying school district under an
energy installment purchase contract.
(ii) Obligations of the qualifying school district under a
capital lease.
(iii) Any unpaid amounts payable by the qualifying school
district to the Michigan public school employees' retirement board
under the public school employees retirement act of 1979, 1980 PA
300, MCL 38.1301 to 38.1437.
(iv) The repayment of any loan or obligations under any loan
agreement between the qualifying school district and the local
financial emergency assistance loan board under the emergency
municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, including
any terms and conditions providing for the payment of transitional
operating costs not to exceed an amount equal to 3% of the taxable
value of the qualifying school district.
(v) The repayment of any school financing stability bonds
under section 1356.
(vi) Any other monetary obligations of the qualifying school
district.
(b) "Operating obligation" means debt of a school district
incurred for purposes of financing the operation of a school
district or public schools operated by a school district,
including, but not limited to, fiscal stability bonds under section
1356 and an emergency loan under the emergency municipal loan act,
1980 PA 243, MCL 141.931 to 141.942, and transitional operating
costs. Operating obligation does not include debt of a school
district incurred for the purpose of constructing, renovating,
maintaining, or otherwise improving school facilities unless the
debt is incurred as a transitional operating cost.
(c) "Transfer date" means the first July 1 after the date a
school district becomes a qualifying school district. For a school
district that became a qualifying school district on the effective
date of the amendatory act that added this subdivision, the
transfer date is July 1, 2016.
(d) "Transitional operating cost" means a cost of operating
public schools incurred by a community district as a result of the
transfer of functions and responsibilities from a qualifying school
district to a community district, as agreed to in writing,
including, but not limited to, academic and instructional support;
professional transition costs such as information technology,
legal, accounting, human resources, and financial; payments to
vendors; costs relating to changes in timing for grant funding or
reimbursements; cash flow needs; insurance; academic program
expenditures; deferred maintenance; space consolidation; and
facilities rationalization. Transitional operating cost includes up
to $1,000,000.00 per school year for up to 10 years to pay for the
operation of any education commission in place for a community
district under section 390.
PART 5B
COMMUNITY DISTRICTS
Sec. 381. (1) A school district organized as a community
district shall be governed by this part, by the provisions of
article 2 not inconsistent with this part, and by articles 3 and 4.
(2) A community district is a political subdivision and public
body corporate separate and distinct from this state and other
school districts in this state.
(3) The name of a school district governed by this part shall
include the name of the city, village, or township with the
greatest population located within the geographic boundaries of the
community district, the word "school" or "schools", and the word
"community" or "district", or both.
(4) Subject to section 12b, a school district governed by this
part shall be under the jurisdiction of and governed by the school
board of the community district provided for by section 384.
(5) As used in this part:
(a) "Authorizing body" means that term as defined in section
501, 521, or 551, as applicable.
(b) "Chief administrative officer" means the mayor of a city
if the city has the greatest population of any city, village, or
township located within the geographic area of the community
district; the president of a village if the village has the
greatest population of any city, village, or township located
within the geographic area of the community district; or the
supervisor of a township if the township has the greatest
population of any city, village, or township located within the
geographic area of the community district.
(c) "Education commission" means the appointed body
established under section 390.
(d) "Educational management organization" means that term as
defined in section 503c, 523c, or 553c, as applicable.
(e) "Transfer date" means that term as defined in section 12b.
Sec. 382. Except as otherwise provided in this part, a
community district shall be organized and conducted in the same
manner as a general powers school district. Except as otherwise
provided by law, a community district has all of the powers of a
general powers school district under section 11a and has all
additional powers granted by law to a community district or the
school board of a community district.
Sec. 383. Effective 30 days after a school district becomes a
qualifying school district, a community district is created for the
same geographic area of that qualifying school district to provide
public education services for residents of that geographic area and
to otherwise exercise the powers of a community district for that
geographic area beginning on the transfer date for that qualifying
school district.
Sec. 384. (1) The school board for a community district shall
consist of 9 school electors of the community district. If the
geographic boundaries of the community district include a single
city and members of the governing body of that city are elected
from 9 or fewer electoral districts, a member of the community
district shall be elected from each of the electoral districts. If
the city has fewer than 9 electoral districts for members of its
governing body, a member of the board of the community district
residing in each electoral district shall be elected from each
electoral district and the remaining members of the board shall be
elected on a districtwide basis.
(2) The initial members of the school board shall be elected
at the first August regular election date after the transfer date
as established under section 641 of the Michigan election law, MCL
168.641. Three of the initial members shall be elected for a term
ending on the seventh December 31 after the transfer date, 3 of the
initial members shall be elected for a term ending on the fifth
December 31 after the transfer date, and 3 of the initial members
shall be elected for a term ending on the third December 31 after
the transfer date. At least 30 days before the election under this
subsection, the transition manager for the community district under
section 12b shall prescribe which position on the elected school
board is elected for each initial term under this subsection to
achieve the staggering of terms required under this subsection. The
term of an initial member of the school board will begin upon the
certification of the member's election.
(3) After the initial terms under subsection (2), each member
of the school board shall be elected to a 6-year term beginning on
January 1 following the member's election.
(4) A member of a school board for a qualifying school
district under section 12b may not also serve as a member of a
school board for a community district that has the same geographic
boundaries as the qualifying school district. A member of a school
board of a community district may not also serve as a member of a
school board for a qualifying school district that has the same
geographic boundaries as the community district.
Sec. 385. (1) The school board of a community district shall
employ a superintendent. Within 90 days after the initial school
board of a community district takes office, the school board of the
community district shall appoint an initial superintendent for the
community district. The initial superintendent shall be selected
based upon his or her demonstrated ability, record of competence,
experience in increasing academic achievement, experience with
education reform and redesign, and expertise in the turnaround of
academically underperforming urban schools.
(2) On an annual basis, the school board of a community
district shall evaluate and issue a report on the performance of
the community district based on the following factors:
(a) The proportion of pupils enrolled in the community
district who achieve scores at least equivalent to proficient on
state assessments.
(b) The proportion of pupils enrolled in the community
district who achieve at least 1 year of academic growth in a school
year.
(c) The proportion of graduates from or pupils enrolled in the
community district who are enrolled in some form of postsecondary
education or career and technical education.
(3) On at least an annual basis, the school board of a
community district shall evaluate the performance of the
superintendent of the community district.
Sec. 386. If another school district is authorized to levy a
school operating tax under section 1211 within the geographic
boundaries of the community district during a tax year, the
community district shall not levy a school operating tax under
section 1211 during that tax year.
Sec. 387. A community district is subject to financial
oversight by a financial review commission to the extent provided
under the Michigan financial review commission act, 2014 PA 181,
MCL 141.1631 to 141.1643. If a financial review commission is in
place for a community district, both of the following apply:
(a) The appointment of a chief financial officer for the
community district is subject to the approval of the financial
review commission. Before the chief financial officer's appointment
is final, the school board of the community district shall submit
the proposed appointment in writing to the financial review
commission for its approval. If the proposed appointment is not
approved by the financial review commission within 45 days after it
is submitted in writing to the financial review commission, the
appointment is denied.
(b) The community district may not terminate the employment of
the chief financial officer unless that action is approved by the
financial review commission.
Sec. 388. This part does not repeal or affect a general law or
local law governing the management and control of a public library
established in a community district under this part or a first
class school district under part 6. Any powers and duties of a
qualifying school district under section 12b relating to the
management and control of a public library are transferred to the
community district on the transfer date for the qualifying school
district under section 12b.
Sec. 389. The validity of the formation of a community
district shall be conclusively presumed unless questioned in an
original action filed in the court of appeals within 60 days after
the community district is created under section 383. The court of
appeals has original jurisdiction to hear an action under this
section. The court shall hear the action in an expedited manner.
The department of treasury is a necessary party in any action under
this section.
Sec. 390. (1) Subject to subsection (13), for a period of 5
years after the transfer date, an education commission shall be in
place for a community district as provided in this section. The
chief administrative officer shall determine the name of the
education commission.
(2) Except as otherwise provided in subsection (4), the
education commission shall consist of 7 members appointed by the
chief administrative officer as follows:
(a) Two members who have at least 5 years of experience
teaching in, serving as a school administrator in, or serving on
the board of directors of a public school academy that is located
within the community district and is authorized by the governing
board of a state public university that serves as the authorizing
body for at least 5 public school academies located within the
community district.
(b) Two members who have at least 5 years of experience
teaching or serving as a school administrator in a public school
operated by the community district or operated by a first class
school district that has the same boundaries as the community
district.
(c) One member who, at the time of his or her appointment, is
the parent of at least 1 pupil who is currently enrolled, and who
has been enrolled for at least 1 full school year, in a public
school academy that is located within the community district and is
authorized by the governing board of a state public university that
serves as the authorizing body for at least 5 public school
academies located within the community district. If a member
appointed under this subdivision ceases to have a child enrolled in
a public school academy meeting the requirements under this
subdivision, that member shall be considered to have vacated the
member's office.
(d) One member who, at the time of his or her appointment, is
the parent of at least 1 pupil who is currently enrolled, and who
has been enrolled for at least 1 full school year, in a public
school operated by the community district. If a member appointed
under this subdivision ceases to have a child enrolled in a public
school operated by the community district, that member shall be
considered to have vacated the member's office.
(e) One member who has expertise in public school
accountability systems and school improvement, such as experience
in education policy research, including research on quantitative
measures of student academic growth, and experience with the
implementation of academic accountability systems.
(3) The chief administrative officer shall ensure that, at all
times, at least 5 members of the education commission are residents
of the community district.
(4) Members of the education commission shall serve for
staggered terms of 4 years. To achieve this staggering, of the
members initially appointed by the chief administrative officer
under subsection (2), the chief administrative officer shall
appoint 2 for initial terms of 1 year, 2 for initial terms of 2
years, 2 for initial terms of 3 years, and 1 for an initial term of
4 years.
(5) The chief administrative officer shall appoint the initial
members of the education commission under subsection (2) within 60
days after the initial members of the school board of the community
district take office. If the chief administrative officer does not
make an appointment within that 60-day time period, the
superintendent of public instruction shall make the appointment
within 75 days after the initial members of the school board of the
community district take office.
(6) If there is a vacancy among members of the education
commission, within 30 days after the vacancy occurs the chief
administrative officer shall make an appointment to fill the
vacancy in the same manner as the original appointment for the
vacated seat. If the chief administrative officer does not make an
appointment within the time period required under this subsection,
the superintendent of public instruction shall make the appointment
within 45 days after the vacancy occurs.
(7) The chief administrative officer may remove a member of
the education commission from office for corrupt or willful
malfeasance or misfeasance in office or for willful neglect of the
duties of the member's office. The chief administrative officer
also may remove a member who has ceased to be a resident if removal
is necessary to ensure compliance with subsection (3).
(8) An education commission shall meet at least monthly for as
long as the education commission is in place, and shall regularly
report on its activities to the school board of the community
district.
(9) An education commission and the members of an education
commission have governmental immunity as provided in section 7 of
1964 PA 170, MCL 691.1407.
(10) Within 3 months after its first meeting, an education
commission shall adopt and implement a conflict of interest policy
designed to avoid conflicts of interest by education commission
members. An education commission's conflict of interest policy
shall comply with 1968 PA 317, MCL 15.321 to 15.330.
(11) In carrying out its functions and responsibilities under
this part, an education commission shall solicit input and consider
recommendations from community groups, parent-teacher groups, and
other interested parties with relevant experience.
(12) A member of an education commission is a public officer
and shall, before entering upon the duties of the office, take the
constitutional oath of office for public officers under section 1
of article XI of the state constitution of 1963.
(13) Upon request by the chief administrative officer, the
state school reform/redesign officer serving under section 1280c
may order that the education commission shall remain in place for
the community district for an additional 5-year period after the
expiration of the 5-year period described in subsection (1). The
state school reform/redesign officer shall not issue an order under
this subsection unless he or she determines that the education
commission has been effective in achieving a turnaround in the
community district based on the following factors:
(a) A stabilization of or increase in the total membership
enrolled in public schools located within the community district.
(b) The academic growth and performance of pupils enrolled in
public schools located within the community district.
(c) Improvement in the financial condition of the community
district.
Sec. 390a. (1) An education commission is a political
subdivision and a public body corporate separate and distinct from
the community district. An education commission is subject to the
leadership and general supervision of the state board over all
public education to the extent provided under section 3 of article
VIII of the state constitution of 1963. An education commission may
accept and retain money or other assets from any public or private
source for the purposes of performing its functions and satisfying
its obligations under this act and creating and providing
incentives for public schools to locate in areas identified as
priority zones under section 391. In distributing funds or assets
to public school entities, the education commission shall not
discriminate between classes of public school entities. In making
siting recommendations under section 391 or a siting approval
decision under section 392, the education commission shall not
consider as a factor any contribution or gift offered to or
received by the education commission under this section.
(2) An education commission is exempt from all taxation on its
earnings and property. Instruments of conveyance to or from an
education commission are exempt from all taxation, including taxes
imposed by 1966 PA 134, MCL 207.501 to 207.513. Unless the property
is already fully exempt from real and personal property taxes under
the general property tax act, 1893 PA 206, MCL 211.1 to 211.155,
property owned by an education commission is exempt from real and
personal property taxes levied for school operating purposes under
section 1211, to the extent exempted under that section, and from
real and personal property taxes levied under the state education
tax act, 1993 PA 331, MCL 211.901 to 211.906.
(3) An education commission shall select financial
institutions for the deposit of funds of the education commission.
The education commission shall keep a set of coded accounts to be
approved by the superintendent of public instruction. An education
commission shall have its books audited at least annually by a
certified public accountant and shall provide a copy of the audit
report to the state treasurer. An education commission may invest
funds through a financial institution that is not ineligible to be
a depository of surplus funds belonging to this state under section
6 of 1855 PA 105, MCL 21.146. As used in this subsection,
"financial institution" means a state or nationally chartered bank
or a state or federally chartered savings and loan association,
savings bank, or credit union whose deposits are insured by an
agency of the United States government and that maintains a
principal office or branch office located in this state under the
laws of this state or the United States.
(4) At the end of the 5-year period under section 390(1) or
the additional 5-year period under section 390(12), as applicable,
the education commission shall be fully dissolved and any remaining
assets of the education commission shall be transferred to the
community district.
Sec. 390b. (1) An education commission shall have the
following rights, powers, and duties:
(a) To sue or be sued.
(b) To hire or contract with personnel as necessary for the
education commission to perform its functions under this act. An
education commission may indemnify its employees.
(c) To procure appropriate goods and services in kinds and
amounts necessary to carry out the purposes of the education
commission.
(d) To procure insurance for the education commission and its
employees and contractors in types and amounts necessary to operate
the education commission.
(e) To receive, account for, invest, or expend education
commission money.
(f) To acquire, hold, and transfer interests in property.
(2) Unless otherwise expressly provided in this act, an
education commission shall not directly or indirectly operate a
public school or provide educational services to any pupil.
Sec. 390c. An education commission shall comply with 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) The uniform budgeting and accounting act, 1968 PA 2, MCL
141.421 to 141.440a.
(d) 1968 PA 317, MCL 15.321 to 15.330.
(e) 1978 PA 566, MCL 15.181 to 15.185.
Sec. 391. (1) Subject to subsection (3), not later than 6
months after the completion of appointments to the education
commission under section 390, an education commission shall prepare
and make publicly available a report on the siting of existing and
future public schools within the community district that makes
specific siting recommendations for public schools within the
community district. The education commission shall provide a copy
of this report to the school board of the community district, to
the state school reform/redesign officer, to the authorizing body
of each public school academy located within the community
district, and to the standing committees of the senate and house of
representatives with responsibility for education legislation.
(2) Subject to subsection (3), after the education commission
has completed and submitted the report under subsection (1), the
education commission shall prepare and make publicaly available an
annual report updating the information and recommendations in the
report under subsection (1). The education commission shall provide
a copy of each annual report to the school board of the community
district, to the state school reform/redesign officer, to the
authorizing body of each public school academy located within the
community district, and to the standing committees of the senate
and house of representatives with responsibility for education
legislation.
(3) Except as otherwise provided in this subsection, an
education commission shall make its siting recommendations under
subsections (1) and (2) based on the siting of existing public
schools within various geographic areas within the community
district. The recommendations shall identify as "priority zones"
those geographic areas where there is extraordinary need for the
siting of new public schools to serve residents of those areas. The
education commission shall make its siting recommendations under
subsections (1) and (2) based on the siting of existing public
schools within each of the zip codes located in the community
district. The recommendations shall be broken down by grade
configurations and shall take into account at least all of the
following:
(a) The ratio of school-age population to the enrollment
capacity of existing public schools within each area. The
recommendations shall emphasize the need for additional public
schools in areas identified as having unmet need for public schools
based on this ratio.
(b) The academic opportunities available at the existing
public schools within each area based on factors identified by the
education commission, including, but not limited to, standardized
test scores, pupil attendance, employee attendance and turnover,
and parental satisfaction.
(c) The condition of the existing public school facilities
within each area, including, but not limited to, their geographic
distribution, physical condition, suitability for alternative grade
configurations, and enrollment capacity.
(d) The demographics and general characteristics of
neighborhoods within each area, including, but not limited to,
school-age population, enrollment trends, crime rates, and housing
inventory.
(e) The adequacy of transportation and other public services
available to existing public schools within each area.
(4) This section does not authorize an education commission to
establish or recommend a cap, ban, or moratorium on the opening of
new public schools within a community district; to regulate or
audit any aspect of the operations of an existing or future public
school academy or authorizing body; or to exercise any other power
or authority that is not expressly granted to an education
commission under this part or necessarily incident to a power
expressly granted to an education commission under this part.
(5) As part of its reports under subsections (1) and (2), an
education commission may include an assessment of the academics and
operations of the community district and make recommendations on
the use of facilities, enrollment, building capacity,
transportation, student proficiency and growth, graduation rates
and trends, special education, wrap-around services, and other
related matters. This subsection does not grant to an education
commission any authority over a public school located within the
community district with regard to any recommendations under this
subsection.
Sec. 392. (1) If there is an education commission in place in
a community district, except as otherwise provided in this
subsection, the school board of the community district shall not
take action to approve the opening of a new public school and an
authorizing body shall not issue a contract for a new public school
academy to be located in the community district without siting
approval by the education commission under subsection (2). This
siting approval is not required for a proposed new school if that
school meets either of the following:
(a) If the accountability system under section 393 has been in
effect for fewer than 3 school years, the new school will be
operated by the school board of the community district and will
replicate a specific existing school that is operated by the
community district and that has achieved a letter grade of "A" or
"B" under section 393 for each school year for which that
accountability system has been in effect. If the accountability
system under section 393 has been in effect for at least 3 years,
the new school will be operated by the school board of the
community district and will replicate a specific existing school
that is operated by the community district and that, as of the date
of final action to approve the new school, has achieved a letter
grade of "A" or "B" under section 393 for the 3 most recent school
years for which the data are available. For the purposes of the
limitation under this subdivision, there may not be more than 1 new
school replicating a specific existing school.
(b) If the accountability system under section 393 has been in
effect for fewer than 3 school years, the new school will be a
public school academy that will replicate a specific existing
public school that is operated by the same governing board or
educational management organization that will operate the proposed
new public school academy and that has achieved a letter grade of
"A" or "B" under section 393 for each school year for which that
accountability system has been in effect. If the accountability
system under section 393 has been in effect for at least 3 years,
the new school will be a public school academy that will replicate
a specific existing public school that is operated by the same
governing board or educational management organization that will
operate the new school and that, as of the date of issuance of the
contract for the new public school academy, has achieved a letter
grade of "A" or "B" under section 393 for the 3 most recent school
years for which the data are available. For the purposes of the
limitation under this subdivision, there may not be more than 1 new
public school academy replicating a specific existing public
school.
(2) If there is an education commission in place in a
community district, for a proposed new school that is not exempt
under subsection (1) from the requirement for education commission
siting approval, before the school board of the community district
takes action to approve the opening of a new public school or an
authorizing body issues a contract for a new public school academy
to be located in the community district, the school board or
authorizing body shall submit a written request for siting approval
to the education commission. The education commission shall
consider and act to approve or disapprove a siting approval request
within 90 days after it is submitted to the education commission.
The siting approval request is considered to be approved if the
education commission does not disapprove the siting approval
request within 90 days after it is submitted for approval. If the
education commission disapproves a siting approval request
described in this subdivision, the person submitting the request
may appeal that decision to the superintendent of public
instruction within 30 days after the date of the disapproval. The
superintendent of public instruction shall consider the appeal
within 60 days after it is submitted. Unless the superintendent of
public instruction determines within this 60-day period that the
disapproval was arbitrary and capricious, the superintendent of
public instruction shall affirm the disapproval. If the
superintendent of public instruction issues to the person
submitting the request and the education commission within this 60-
day period a finding that the disapproval was arbitrary and
capricious, the siting approval request shall be considered to be
approved. The decision of the superintendent of public instruction
is final and is not subject to further appeal.
(3) If there is an education commission in place in the
community district, for a proposed new school that is exempt under
subsection (1) from the requirement for education commission siting
approval, before the school board of the community district takes
action to approve the opening of a new public school or an
authorizing body issues a contract for a new public school academy
to be located in the community district, the school board or
authorizing body shall provide the education commission of the
community district a period of at least 90 days to submit written
comments concerning the location of the proposed new school, unless
the education commission agrees in writing to waive the comment
period. If the education commission submits written comments
concerning the location of the proposed new school, the school
board or authorizing body shall consider the education commission's
comments as part of its decision whether or not to take final
action to approve the opening of the new school or to issue a
contract for the new public school academy, as applicable.
(4) As part of the comment process under subsection (3), the
education commission may request the state school reform/redesign
officer to review a proposed new school to ensure that it meets the
standards under subsection (5) for being considered to be
replicating an existing school. If the education commission
requests such a review, the state school reform/redesign officer
shall conduct the review. If the state school reform/redesign
officer determines as a result of the review that a proposed new
school does not meet the standards under subsection (5) for being
considered to be replicating an existing school, the state school
reform/redesign officer shall notify the school board of the
community district or the authorizing body, as applicable, of this
determination. A review by the state school reform/redesign officer
under this subsection is limited to the issue of whether a proposed
new school meets the standards under subsection (5) for being
considered to be replicating an existing school and shall not
consider siting of the proposed new school or any other issue.
(5) For the purposes of this section, a new school is
considered to be replicating an existing school if the new school
will operate using the same educational and operational models as
the existing school, will operate the same age or grade
configuration as the existing school, and will have a
demographically similar expected pupil population as the existing
school.
Sec. 393. (1) The state school reform/redesign officer serving
under section 1280c shall establish, implement, and administer a
community district accountability system under this section for all
public schools located within the boundaries of a community
district, including all schools operated by the community district
and all public school academies located within the boundaries of
the community district. The accountability system shall meet all of
the requirements of this section. If there is an education
commission in place in the community district, the state school
reform/redesign officer shall establish and implement the
accountability system according to the following:
(a) Not later than 30 days after the creation of the education
commission, the education commission may recommend to the state
school reform/redesign officer an accountability system that
complies with this section.
(b) If the education commission submits a timely
recommendation under subdivision (a), within 30 days after receipt
of the recommendation, the state school reform/redesign officer
shall either approve the recommendation or disapprove the
recommendation with specific reasons for the disapproval. If the
recommendation is approved, the state school reform/redesign
officer shall establish and implement the recommended
accountability system.
(c) If the recommendation of the education commission is
disapproved with reasons for the disapproval under subdivision (b),
the state school reform/redesign officer shall submit the reasons
for the disapproval to the education commission. Within 15 days
after the reasons for the disapproval are submitted to the
education commission, the education commission may submit a revised
recommendation to the state school reform/redesign officer.
(d) If the education commission submits a revised
recommendation to the state school reform/redesign officer under
subdivision (c), the state school reform/redesign officer shall
either approve the revised recommendation or approve the revised
recommendation with changes, as determined by the state school
reform/redesign officer. If the revised recommendation is approved
or is approved with changes, the state school reform/redesign
officer shall establish and implement the recommended
accountability system and is not required to obtain any other
review or approval.
(e) If the education commission does not submit a timely
recommendation under subdivision (a) or a timely revised
recommendation under subdivision (c), the state school
reform/redesign officer shall establish and implement an
accountability system that complies with this section as he or she
determines and is not required to obtain any other review or
approval.
(f) Once an accountability system is established and
implemented under this subsection, the state reform/redesign
officer shall administer the accountability system.
(2) The state school reform/redesign officer shall implement
and administer the accountability system under this section as soon
as possible after completing the process under subsection (1).
After the accountability system is implemented, the state school
reform/redesign officer, not more frequently than annually, may
make adjustments to the accountability system that are consistent
with this section. If there is an education commission in place in
the community district, the education commission, not more
frequently than annually, may request the state school
reform/redesign officer to review the accountability system and
make adjustments. If an education commission makes such a request,
the state school reform/redesign officer shall review the
accountability system and each requested adjustment. Unless the
state school reform/redesign officer determines, after consultation
with the education commission, that there is a substantial
likelihood that better results will be achieved by not making a
requested adjustment or that a requested adjustment is not
consistent with this section, the state school reform/redesign
officer shall make an adjustment requested by the education
commission.
(3) A community district accountability system under this
section shall meet all of the following:
(a) The accountability system annually shall assign a letter
grade of A, B, C, D, or F to each public school located within the
boundaries of the community district.
(b) The accountability system shall assign the letter grades
under subdivision (a) based on a point scale from 0 to 100 points,
using the total points achieved by a school to determine the letter
grade. The state school reform/redesign officer shall determine how
many points are necessary for each letter grade.
(c) The points under subdivision (b) shall be assigned based
on a school's performance on proficiency measures, growth measures,
and nonacademic measures, as prescribed under subsection (4).
(d) If possible, a school's performance on proficiency
measures, growth measures, and nonacademic measures shall be based
on the average of the results from the 2 most recent school years
for which the data are available. If 2 years of data are not
available for a particular measure, the school's performance for
that measure shall be based on the results from the most recent
school year for which the data are available.
(4) In determining the number of points to be assigned for
each public school under subsection (3), the state school
reform/redesign officer shall ensure that not less than 80% of the
total points assigned are based on the combined weight given to
proficiency measures and growth measures. Of the combined weight
given to these 2 measures, growth measures shall account for at
least 50% and not more than 70% of that combined weight. The
balance that is not based on proficiency measures and growth
measures shall be based on nonacademic measures. All of the
following apply to these measures:
(a) Proficiency measures shall include all of the following:
(i) For a public school that operates any of grades K to 8,
both of the following:
(A) Overall proficiency as measured on the English language
arts and mathematics portions of the M-STEP.
(B) Proficiency for continuously enrolled pupils as measured
on the English language arts and mathematics portions of the M-
STEP. This shall be based on the percentage of pupils who have been
enrolled in that school for 2 or more consecutive school years who
achieve proficiency or advanced on these portions of the M-STEP,
assigning equal weight to English language arts and mathematics
results.
(ii) For a public school that operates any of grades 9 to 12,
all of the following:
(A) The percentage of pupils who graduate within 4 years.
(B) Pupil scores on the college entrance examination component
of the Michigan merit examination under section 1279g(2)(a).
(C) The percentage of pupils enrolled in that school in
college level equivalent courses and the percentage of those pupils
who pass the courses and achieve the score on a college level
equivalent credit examination that must be achieved to qualify for
college level equivalent credit for each of the courses. As used in
this sub-subparagraph, "college level equivalent course" and
"college level equivalent credit examination" mean those terms as
defined in section 1471.
(D) Overall proficiency as measured on the social studies and
science portions of the M-STEP.
(b) Growth measures shall include all of the following:
(i) For a public school that operates any of grades K to 8,
all of the following:
(A) Overall growth among all pupils enrolled in that school
for the full school year as measured by growth achieved from 1
school year to the next on the English language arts and
mathematics portions of the M-STEP, assigning equal weight to
English language arts and mathematics results.
(B) Growth among continuously enrolled pupils as measured on
the English language arts and mathematics portions of the M-STEP.
This shall be based on the average student growth achieved from 1
school year to the next among pupils who have been enrolled in that
school for 2 or more consecutive school years on the English
language arts and mathematics portions of the M-STEP, assigning
equal weight to English language arts and mathematics results.
(C) Growth among the bottom 30% of pupils enrolled in that
school as measured on the English language arts and mathematics
portions of the M-STEP. This shall be based on the average student
growth achieved from 1 school year to the next among pupils whose
test scores for the first of the 2 school years were in the bottom
30% on the English language arts and mathematics portions of the M-
STEP, assigning equal weight to English language arts and
mathematics results.
(ii) For a public school that operates any of grades 9 to 12,
both of the following:
(A) Progress made in improving the percentage of pupils who
graduate within 4 years.
(B) Progress made in improving pupil scores on the college
entrance examination component of the Michigan merit examination
under section 1279g(2)(a).
(c) Nonacademic measures shall include all of the following
for all public schools, regardless of grade level:
(i) Student survey results. The student survey shall be
procured from a third-party vendor and must include measures of
student engagement and pupils' perceptions of school safety and
learning environment. There must be published evidence of the
reliability and validity of the student survey instruments used,
including evidence that the survey results are predictive of
student growth results and that the survey results can be used to
make meaningful distinctions in performance across schools.
(ii) Year-to-year reenrollment rates, as measured by the
percentage of pupils who enrolled in that school in the current
school year among all pupils who were enrolled in that school at
the end of the immediately preceding school year, excluding those
who moved residences or completed the terminal grade in the school.
(iii) Absenteeism rates, as measured by the percentage of
pupils enrolled in that school for the full school year who miss
more than 10% of school days.
(iv) Parent participation in school satisfaction surveys. In
determining a school's performance on the nonacademic measures,
this measure may not be given more than 1/4 weight among the
measures listed in this subdivision.
(d) For public schools that operate a configuration of grade
levels that includes pupils in both any of grades K to 8 and any of
grades 9 to 12, the public school's performance on proficiency
measures and growth measures shall be determined using a weighted
average of the measurements under subdivisions (a) and (b).
(5) The accountability system under this section shall remain
in effect until a state accountability system is established by the
legislature for all public schools in this state and is designated
as replacing the accountability system under this section. If such
a state accountability system is established, the accountability
system under this section is terminated and the public schools
located within the boundaries of a community district are subject
to that state accountability system as provided under that system.
(6) As used in this section, "M-STEP" means the Michigan
student test of educational progress or a successor statewide
assessment adopted and implemented by the department.
Sec. 394. (1) Notwithstanding section 1280c, except for a
school that is an alternative school serving a special student
population, and subject to subsection (2), if a school operated by
a community district has been assigned a grade of "F" under section
393 for 3 consecutive school years, for 3 of the preceding 4 school
years, or for 3 of the preceding 5 school years, or is among the
lowest achieving 5% of all public schools in this state for 3
consecutive school years, for 3 of the preceding 4 school years, or
for 3 of the preceding 5 school years, as determined under section
1280c, the state school reform/redesign officer under section 1280c
shall order the community district to implement 1 of the school
intervention models specified in section 1280c(2) or another
intervention model authorized by the state school reform/redesign
officer, effective no later than the end of the current school
year.
(2) If there is an education commission in place in a
community district, before ordering the community district to
implement 1 of the school intervention models for a school under
subsection (1), the state school reform/redesign officer shall
notify the education commission. The education commission may make
a recommendation to the state school reform/redesign officer on the
intervention model that should be implemented for the school. The
state school reform/redesign officer shall order the community
district to implement the intervention model recommended by the
education commission unless the state school reform/redesign
officer determines, after consultation with the education
commission, that there is a substantial likelihood that better
results will be achieved by implementation of another intervention
model. The decision of the state school reform/redesign officer is
final and is not subject to appeal.
Sec. 395. (1) If a qualifying school district is a party to a
lease between the qualifying school district and an achievement
authority, on or after the transfer date the community district
shall not renew or extend the lease.
(2) If a qualifying school district is a party to an
interlocal agreement with a state public university creating an
achievement authority, as soon as possible after the transfer date
the community district shall take action to withdraw from that
interlocal agreement to the extent permitted under that interlocal
agreement.
(3) If a qualifying school district is a party to an
interlocal agreement with a state public university creating an
achievement authority, the community district is not authorized to
jointly exercise any powers, privileges, or authorities under that
interlocal agreement after the June 30 following the transfer date.
(4) As used in this section, "achievement authority" means
that term as defined in section 3 of the state school aid act of
1979, MCL 388.1603.
Sec. 396. For the state fiscal year ending September 30, 2016,
$250,000.00 is appropriated from the general fund to the department
of treasury for the purpose of providing financial support for the
organization and administration of any community district formed
under this part during the fiscal year ending September 30, 2016.
Sec. 501. (1) A public school academy is a public school under
section 2 of article VIII of the state constitution of 1963, is a
school district for the purposes of section 11 of article IX of the
state constitution of 1963 and for the purposes of section 1225 and
section 1351a, and is subject to the leadership and general
supervision of the state board over all public education under
section 3 of article VIII of the state constitution of 1963. A
public school academy is a body corporate and is a governmental
agency. The powers granted to a public school academy under this
part constitute the performance of essential public purposes and
governmental functions of this state.
(2) As used in this part:
(a) "Authorizing body" means any of the following that issues
a contract as provided in this part:
(i) The board of a school district. that
operates grades K to
12.
(ii) An intermediate school board.
(iii) The board of a community college.
(iv) The governing board of a state public university.
(v) Two or more of the public agencies described in
subparagraphs (i) to (iv) exercising power, privilege, or authority
jointly pursuant to an interlocal agreement under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
(b) "Certificated teacher" means an individual who holds a
valid teaching certificate issued by the superintendent of public
instruction under section 1531.
(c) "Community college" means a community college organized
under the community college act of 1966, 1966 PA 331, MCL 389.1 to
389.195, or a federal tribally controlled community college that is
recognized under the tribally controlled colleges and universities
assistance
act of 1978, 25 USC 1801 to 1852, 1864, and is
determined by the department to meet the requirements for
accreditation by a recognized regional accrediting body.
(d) "Contract" means the executive act taken by an authorizing
body that evidences the authorization of a public school academy
and that establishes, subject to the constitutional powers of the
state board and applicable law, the written instrument executed by
an authorizing body conferring certain rights, franchises,
privileges, and obligations on a public school academy, as provided
by this part, and confirming the status of a public school academy
as a public school in this state.
(e) "Entity" means a partnership, nonprofit or business
corporation, labor organization, or any other association,
corporation, trust, or other legal entity.
(f) "State public university" means a state university
described in section 4, 5, or 6 of article VIII of the state
constitution of 1963.
Sec. 502. (1) A public school academy shall be organized and
administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. A public school academy corporation shall be organized
under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3192, except that a public school academy corporation is not
required to comply with sections 170 to 177 of 1931 PA 327, MCL
450.170 to 450.177. To the extent disqualified under the state or
federal constitution, a public school academy shall not be
organized by a church or other religious organization and shall not
have any organizational or contractual affiliation with or
constitute a church or other religious organization.
(2)
Any Subject to subsection
(9), any of the following may
act as an authorizing body to issue a contract to organize and
operate 1 or more public school academies under this part:
(a)
The board of a school district. that operates grades K to
12.
However, the board of a school
district shall not issue a
contract for a public school academy to operate outside the school
district's boundaries, and a public school academy authorized by
the board of a school district shall not operate outside that
school district's boundaries.
(b) An intermediate school board. However, the board of an
intermediate school district shall not issue a contract for a
public school academy to operate outside the intermediate school
district's boundaries, and a public school academy authorized by
the board of an intermediate school district shall not operate
outside that intermediate school district's boundaries.
(c) The board of a community college. However, except as
otherwise provided in this subdivision, the board of a community
college shall not issue a contract for a public school academy to
operate in a school district organized as a school district of the
first class, a public school academy authorized by the board of a
community college shall not operate in a school district organized
as a school district of the first class, the board of a community
college shall not issue a contract for a public school academy to
operate outside the boundaries of the community college district,
and a public school academy authorized by the board of a community
college shall not operate outside the boundaries of the community
college district. The board of a community college also may issue a
contract for not more than 1 public school academy to operate on
the grounds of an active or closed federal military installation
located outside the boundaries of the community college district,
or may operate a public school academy itself on the grounds of
such a federal military installation, if the federal military
installation is not located within the boundaries of any community
college district and the community college has previously offered
courses on the grounds of the federal military installation for at
least 10 years.
(d) The governing board of a state public university. However,
the combined total number of contracts for public school academies
issued by all state public universities shall not exceed 300
through December 31, 2012 and shall not exceed 500 through December
31, 2014. After December 31, 2014, there is no limit on the
combined total number of contracts for public school academies that
may be issued by all state public universities.
(e) Two or more of the public agencies described in
subdivisions (a) to (d) exercising power, privilege, or authority
jointly pursuant to an interlocal agreement under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
(3) To obtain a contract to organize and operate 1 or more
public school academies, 1 or more persons or an entity may apply
to an authorizing body described in subsection (2). The application
shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 503(5), a list of the proposed members of the board
of directors of the public school academy and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed public school academy.
(ii) The purposes for the public school academy corporation.
This language shall provide that the public school academy is
incorporated pursuant to this part and that the public school
academy corporation is a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the public school
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the public school academy.
(ii) A copy of the educational goals of the public school
academy and the curricula to be offered and methods of pupil
assessment to be used by the public school academy. The educational
goals shall include demonstrated improved pupil academic
achievement for all groups of pupils. To the extent applicable, the
progress of the pupils in the public school academy shall be
assessed
using at least a Michigan education assessment program
(MEAP)
test both the mathematics and
reading portions of the
Michigan student test of educational progress (M-STEP) or the
Michigan merit examination under section 1279g, as applicable.
(iii) The admission policy and criteria to be maintained by
the public school academy. The admission policy and criteria shall
comply with section 504. This part of the application also shall
include a description of how the applicant will provide to the
general public adequate notice that a public school academy is
being created and adequate information on the admission policy,
criteria, and process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(f) Descriptions of staff responsibilities and of the public
school academy's governance structure.
(g) For an application to the board of a school district, an
intermediate school board, or board of a community college,
identification of the local and intermediate school districts in
which the public school academy will be located.
(h) An agreement that the public school academy will comply
with the provisions of this part and, subject to the provisions of
this part, with all other state law applicable to public bodies and
with federal law applicable to public bodies or school districts.
(i) A description of and address for the proposed physical
plant in which the public school academy will be located. An
applicant may request the authorizing body to issue a contract
allowing the public school academy board of directors to operate
the same configuration of age or grade levels at more than 1 site.
(4) An authorizing body shall oversee, or shall contract with
an intermediate school district, community college, or state public
university to oversee, each public school academy operating under a
contract issued by the authorizing body. The authorizing body is
responsible for overseeing compliance by the board of directors
with the contract and all applicable law. This subsection does not
relieve any other government entity of its enforcement or
supervisory responsibility.
(5) If the superintendent of public instruction finds that an
authorizing body is not engaging in appropriate continuing
oversight of 1 or more public school academies operating under a
contract issued by the authorizing body, the superintendent of
public instruction may suspend the power of the authorizing body to
issue new contracts to organize and operate public school
academies. A contract issued by the authorizing body during the
suspension is void. A contract issued by the authorizing body
before the suspension is not affected by the suspension.
(6) An authorizing body shall not charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a public school academy in an amount that exceeds a
combined total of 3% of the total state school aid received by the
public school academy in the school year in which the fees or
expenses are charged. An authorizing body may provide other
services for a public school academy and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the public school academy.
(7) A public school academy shall be presumed to be legally
organized if it has exercised the franchises and privileges of a
public school academy for at least 2 years.
(8) An authorizing body may enter into an intergovernmental
agreement with another authorizing body to issue public school
academy contracts. At a minimum, the agreement shall further the
purposes set forth in section 501, describe which authorizing body
shall issue the contract, and set forth which authorizing body will
be responsible for monitoring compliance by the board of directors
of the public school academy with the contract and all applicable
law.
(9) All of the following apply to the issuance of a contract
for a new public school academy to be located in a community
district:
(a) If there is an education commission in place in the
community district, both of the following:
(i) The decision whether to issue the contract for the new
public school academy is subject to education commission siting
approval under section 392(2) unless the proposed new public school
academy is exempt under section 392(1) from the requirement for
education commission siting approval.
(ii) Before an authorizing body issues a contract for a new
public school academy that is exempt under section 392(1) from the
requirement for education commission siting approval, the
authorizing body shall provide the education commission of the
community district a period of at least 90 days to submit written
comments concerning the location of the proposed new public school
academy, unless the education commission agrees in writing to waive
the comment period. If the education commission submits written
comments concerning the location of the proposed new public school
academy, the authorizing body shall consider the education
commission's comments as part of its decision whether or not to
take final action to issue a contract for the new public school
academy.
(b) An authorizing body shall not issue a new contract to
organize and operate a public school academy under this part to an
existing public school academy that has had its contract with its
previous authorizing body revoked, terminated, or not renewed or
that is currently assigned a letter grade of "F" under the
community district accountability system under section 393. The
board of directors of a public school academy described in this
subsection shall not apply for a contract that would violate this
subsection. This subdivision does not apply to the nonrenewal of a
contract by an authorizing body if the authorizing body's governing
board has made an official determination that it will not issue or
renew any contracts under this act authorizing the operation of a
public school academy regardless of the merits of renewing the
contract.
Sec. 507. (1) An authorizing body that issues a contract for a
public school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each public school
academy that it authorizes. The authorizing body shall ensure that
the board of directors includes representation from the local
community.
(d) Oversee each public school academy operating under a
contract issued by the authorizing body. The oversight shall be
sufficient to ensure that the board of directors is in compliance
with the terms of the contract and with applicable law.
(e) Develop and implement a process for holding a public
school academy accountable for meeting applicable academic
performance standards set forth in the contract and for
implementing corrective action for a public school academy that
does not meet those standards.
(f) Take necessary measures to ensure that the board of
directors of a public school academy operates independently of any
educational management company involved in the operations of the
public school academy.
(g) Oversee and ensure that the pupil admission process used
by the public school academy is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the public school
academy maintains and releases information as necessary to comply
with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for a public school academy is the
fiscal agent for the public school academy. A state school aid
payment for a public school academy shall be paid to the
authorizing body that is the fiscal agent for that public school
academy, and the authorizing body shall then forward the payment to
the public school academy. Within 30 days after a contract is
submitted to the department by an authorizing body under subsection
(1), the department shall issue a district code to the public
school academy for which the contract was issued. If the department
does not issue a district code within 30 days after a contract is
filed, the state treasurer shall assign a temporary district code
in order for the public school academy to receive funding under the
state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the public school academy to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the public school academy to comply with all
applicable law.
(c) Failure of the public school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for a public school academy that is an alternative
school
serving a special student population, if the superintendent
of
public instruction state
school reform/redesign officer
determines that a public school academy site that has been
operating for at least 4 years is among the lowest achieving 5% of
all public schools in this state for 3 consecutive school years,
for 3 of the preceding 4 school years, or for 3 of the preceding 5
school
years, as defined for the purposes
of the federal incentive
grant
program created under sections 14005 and 14006 of title XIV
of
the American recovery and reinvestment act of 2009, Public Law
111-5,
is in year 2 of restructuring sanctions under the no child
left
behind act of 2001, Public Law 107-110, determined under
section
1280c, not to include the any individualized
education plan
subgroup, and is not currently undergoing reconstitution under this
section,
the superintendent of public instruction state school
reform/redesign officer shall notify the public school academy's
authorizing body. Also, except for a public school academy that is
an alternative school serving a special student population, if the
state school reform/redesign officer determines that a public
school academy site located in a community district has been
assigned a grade of "F" under section 393 for 3 consecutive school
years, for 3 of the preceding 4 school years, or for 3 of the
preceding 5 school years, and is not currently undergoing
reconstitution under this section, the state school reform/redesign
officer shall notify the public school academy's authorizing body.
If
an authorizing body receives notice from the superintendent of
public
instruction state school
reform/redesign officer under this
subsection, the authorizing body shall amend the public school
academy's contract to eliminate the public school academy's
authority to operate the existing age and grade levels at the site
and the public school academy shall cease operating the existing
age and grade levels at the site, effective at the end of the
current school year. If the public school academy operates at only
1 site, and the authorizing body receives notice from the
superintendent
of public instruction state
school reform/redesign
officer under this subsection, the authorizing body shall revoke
the public school academy's contract, effective at the end of the
current school year.
(6)
The Except as otherwise
provided in section 502 or 503,
the decision of an authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
court or any state agency. An authorizing body that issues, does
not issue, or reconstitutes a contract under this part, or that
terminates or revokes a contract under this section, is not liable
for that action to the public school academy, the public school
academy corporation, a pupil of the public school academy, the
parent or guardian of a pupil of the public school academy, or any
other person.
(7)
Except as otherwise provided in subsection (5), this
section, before an authorizing body revokes a contract, the
authorizing body may consider and take corrective measures to avoid
revocation. An authorizing body may reconstitute the public school
academy in a final attempt to improve student educational
performance or to avoid interruption of the educational process. An
authorizing body shall include a reconstituting provision in the
contract that identifies these corrective measures, including, but
not limited to, canceling a contract with an educational management
organization, if any, withdrawing approval of a contract under
section 506, or appointing a new board of directors or a trustee to
take over operation of the public school academy.
(8) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the public
school academy under this part, shall return any school aid funds
held by the authorizing body that are attributable to the affected
pupils to the state treasurer for deposit into the state school aid
fund. The state treasurer shall distribute funds to the public
school in which the pupils enroll after the revocation pursuant to
a methodology established by the department and the center for
educational performance and information.
(9) Not more than 10 days after a public school academy's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the public school academy whose contract has terminated or
been revoked and the date of contract termination or revocation.
Sec. 522. (1) An urban high school academy shall be organized
and administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. An urban high school academy corporation shall be
organized under the nonprofit corporation act, 1982 PA 162, MCL
450.2101 to 450.3192, except that an urban high school academy
corporation is not required to comply with sections 170 to 177 of
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified
under the state or federal constitution, an urban high school
academy shall not be organized by a church or other religious
organization and shall not have any organizational or contractual
affiliation with or constitute a church or other religious
organization.
(2)
The Subject to subsection
(9), the governing board of a
state public university may act as an authorizing body to issue a
contract for the organization and operation of an urban high school
academy under this part.
(3) A contract issued under this part shall be issued for an
initial term of 10 years. If the urban high school academy meets
the educational goals set forth in the contract and operates in
substantial compliance with this part, the authorizing body shall
automatically renew the contract for a subsequent 10-year term.
(4) To obtain a contract to organize and operate 1 or more
urban high school academies, an entity may apply to an authorizing
body described in subsection (2). The contract shall be issued to
an urban high school academy corporation designated by the entity
applying for the contract. The application shall include at least
all of the following:
(a) Name of the entity applying for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 528, a list of the proposed members of the board of
directors of the urban high school academy and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed urban high school academy to
which the contract will be issued.
(ii) The purposes for the urban high school academy
corporation. This language shall provide that the urban high school
academy is incorporated pursuant to this part and that the urban
high school academy corporation is a governmental entity and
political subdivision of this state.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the urban high school
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the urban high school academy.
(ii) A copy of the educational goals of the urban high school
academy and the curricula to be offered and methods of pupil
assessment to be used by the urban high school academy. The
educational goals shall include demonstrated improved pupil
academic achievement for all groups of pupils. To the extent
applicable, the progress of the pupils in the urban high school
academy
shall be assessed using at least a Michigan education
assessment
program (MEAP) test both the
mathematics and reading
portions of the Michigan student test of educational progress (M-
STEP) or the Michigan merit examination under section 1279g, as
applicable.
(iii) The admission policy and criteria to be maintained by
the urban high school academy. The admission policy and criteria
shall comply with section 524. This part of the application also
shall include a description of how the applicant will provide to
the general public adequate notice that an urban high school
academy is being created and adequate information on the admission
policy, criteria, and process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(f) Descriptions of staff responsibilities and of the urban
high school academy's governance structure.
(g) A description of and address for the proposed building or
buildings in which the urban high school academy will be located,
and a financial commitment by the entity applying for the contract
to construct or renovate the building or buildings that will be
occupied by the urban high school academy that is issued the
contract.
(5) If a particular state public university issues a contract
that allows an urban high school academy to operate the same
configuration of grades at more than 1 site, as provided in section
524(1), each of those sites shall be under the direction of the
board of directors that is a party to the contract.
(6) If the superintendent of public instruction finds that an
authorizing body is not engaging in appropriate continuing
oversight of 1 or more urban high school academies operating under
a contract issued by the authorizing body, the superintendent of
public instruction may suspend the power of the authorizing body to
issue new contracts to organize and operate urban high school
academies. A contract issued by the authorizing body during the
suspension is void. A contract issued by the authorizing body
before the suspension is not affected by the suspension.
(7) An authorizing body shall not charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for an urban high school academy in an amount that exceeds
a combined total of 3% of the total state school aid received by
the urban high school academy in the school year in which the fees
or expenses are charged. All of the following apply to this fee:
(a) An authorizing body may use this fee only for the
following purposes:
(i) Considering applications and issuing or administering
contracts.
(ii) Compliance monitoring and oversight of urban high school
academies.
(iii) Training for urban high school academy applicants,
administrators, and boards of directors.
(iv) Technical assistance to urban high school academies.
(v) Academic support to urban high school academies or to
pupils or graduates of urban high school academies.
(vi) Evaluation of urban high school academy performance.
(vii) Training of teachers, including supervision of teacher
interns.
(viii) Other purposes that assist the urban high school
academies or traditional public schools in achieving improved
academic performance.
(b) An authorizing body may provide other services for an
urban high school academy and charge a fee for those services, but
shall not require such an arrangement as a condition to issuing the
contract authorizing the urban high school academy.
(8) An urban high school academy shall be presumed to be
legally organized if it has exercised the franchises and privileges
of an urban high school academy for at least 2 years.
(9) All of the following apply to the issuance of a contract
for a new urban high school academy to be located in a community
district:
(a) If there is an education commission in place in the
community district, both of the following:
(i) The decision whether to issue the contract for the new
urban high school academy is subject to education commission siting
approval under section 392(2) unless the proposed new urban high
school academy is exempt under section 392(1) from the requirement
for education commission siting approval.
(ii) Before an authorizing body issues a contract for a new
urban high school academy that is exempt under section 392(1) from
the requirement for education commission siting approval, the
authorizing body shall provide the education commission of the
community district a period of at least 90 days to submit written
comments concerning the location of the proposed new urban high
school academy, unless the education commission agrees in writing
to waive the comment period. If the education commission submits
written comments concerning the location of the proposed new urban
high school academy, the authorizing body shall consider the
education commission's comments as part of its decision whether or
not to take final action to issue a contract for the new urban high
school academy.
(b) An authorizing body shall not issue a new contract to
organize and operate an urban high school academy under this part
to an existing urban high school academy that has had its contract
with its previous authorizing body revoked, terminated, or not
renewed or that is currently assigned a letter grade of "F" under
the community district accountability system under section 393. The
board of directors of an urban high school academy described in
this subsection shall not apply for a contract that would violate
this subsection. This subdivision does not apply to the nonrenewal
of a contract by an authorizing body if the authorizing body's
governing board has made an official determination that it will not
issue or renew any contracts under this act authorizing the
operation of an urban high school academy regardless of the merits
of renewing the contract.
Sec. 528. (1) An authorizing body that issues a contract for
an urban high school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Adopt a resolution establishing the method of selection,
length of term, and number of members of the board of directors of
each urban high school academy that it authorizes. The resolution
shall be written or amended as necessary to include a requirement
that each member of the board of directors must be a citizen of the
United States.
(d) Oversee the operations of each urban high school academy
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the urban high school
academy is in compliance with the terms of the contract and with
applicable law. An authorizing body may enter into an agreement
with 1 or more other authorizing bodies to oversee an urban high
school academy operating under a contract issued by the authorizing
body.
(e) Develop and implement a process for holding an urban high
school academy board of directors accountable for meeting
applicable academic performance standards set forth in the contract
and for implementing corrective action for an urban high school
academy that does not meet those standards.
(f) Take necessary measures to ensure that an urban high
school academy board of directors operates independently of any
educational management company involved in the operations of the
urban high school academy.
(g) Oversee and ensure that the pupil admission process used
by the urban high school academy is operated in a fair and open
manner and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the urban high
school academy maintains and releases information as necessary to
comply with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for an urban high school academy is
the fiscal agent for the urban high school academy. A state school
aid payment for an urban high school academy shall be paid to the
authorizing body that is the fiscal agent for that urban high
school academy, which shall then forward the payment to the urban
high school academy. Within 30 days after a contract is submitted
to the department by an authorizing body under subsection (1), the
department shall issue a district code to the urban high school
academy for which the contract was issued. If the department does
not issue a district code within 30 days after a contract is filed,
the state treasurer shall assign a temporary district code in order
for the urban high school academy to receive funding under the
state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body that issued the contract if the authorizing body
determines that 1 or more of the following have occurred:
(a) Failure of the urban high school academy to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the urban high school academy to comply with
all applicable law.
(c) Failure of the urban high school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for an urban high school academy that is an
alternative school serving a special student population, if the
superintendent
of public instruction state
school reform/redesign
officer determines that an urban high school academy site that has
been operating for at least 4 years is among the lowest achieving
5% of all public schools in this state for 3 consecutive school
years, for 3 of the preceding 4 school years, or for 3 of the
preceding
5 school years, as defined for the
purposes of the
federal
incentive grant program created under sections 14005 and
14006
of title XIV of the American recovery and reinvestment act of
2009,
Public Law 111-5, is in year 2 of restructuring sanctions
under
the no child left behind act of 2001, Public Law 107-110,
determined
under section 1280c, not to include the
any
individualized education plan subgroup, and is not currently
undergoing
reconstitution under this section, the superintendent of
public
instruction state school
reform/redesign officer shall
notify the urban high school academy's authorizing body. Also,
except for an urban high school academy that is an alternative
school serving a special student population, if the state school
reform/redesign officer determines that an urban high school
academy site located in a community district has been assigned a
grade of "F" under section 393 for 3 consecutive school years, for
3 of the preceding 4 school years, or for 3 of the preceding 5
school years, and is not currently undergoing reconstitution under
this section, the state school reform/redesign officer shall notify
the urban high school academy's authorizing body. If an authorizing
body
receives notice from the superintendent of public instruction
state school reform/redesign officer under this subsection, the
authorizing body shall amend the urban high school academy's
contract to eliminate the urban high school academy's authority to
operate the existing age and grade levels at the site and the urban
high school academy shall cease operating the existing age and
grade levels at the site, effective at the end of the current
school year. If the urban high school academy operates at only 1
site, and the authorizing body receives notice from the
superintendent
of public instruction state
school reform/redesign
officer under this subsection, the authorizing body shall revoke
the urban high school academy's contract, effective at the end of
the current school year.
(6)
The Except as otherwise
provided in section 522, the
decision of an authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
court or any state agency. An authorizing body that issues, does
not issue, or reconstitutes a contract under this part, or that
terminates or revokes a contract under this section, is not liable
for that action to the urban high school academy, the urban high
school academy corporation, a pupil of the urban high school
academy, the parent or guardian of a pupil of the urban high school
academy, or any other person.
(7)
Except as otherwise provided in subsection (5), this
section, before an authorizing body revokes a contract, the
authorizing body may consider and take corrective measures to avoid
revocation. An authorizing body may reconstitute the urban high
school academy in a final attempt to improve student educational
performance or to avoid interruption of the educational process. An
authorizing body shall include a reconstituting provision in the
contract that identifies these corrective measures, including, but
not limited to, removing 1 or more members of the board of
directors, withdrawing approval to contract under section 527, or
appointing a new board of directors or a trustee to take over
operation of the urban high school academy.
(8) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the urban high
school academy under this part, shall return any school aid funds
held by the authorizing body that are attributable to the affected
pupils to the state treasurer for deposit into the state school aid
fund. The state treasurer shall distribute funds to the public
school in which the pupils enroll after the revocation pursuant to
a methodology established by the department and the center for
educational performance and information.
(9)
If an authorizing body revokes a contract issued under
this
part, the authorizing body may issue a new contract within the
1-year
period following the revocation without the new contract
counting
toward the maximum number of contracts that may be issued
under
this part.
(9) (10)
Not more than 10 days after an
urban high school
academy's contract terminates or is revoked, the authorizing body
shall notify the superintendent of public instruction in writing of
the name of the urban high school academy whose contract has
terminated or been revoked and the date of contract termination or
revocation.
(10) (11)
If an urban high school academy's
contract
terminates or is revoked, title to all real and personal property,
interest in real or personal property, and other assets owned by
the urban high school academy shall revert to the state. This
property shall be distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of an urban high school academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the urban high school academy
corporation, all in accordance with chapter 8 of the nonprofit
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.
(b) The urban high school academy shall file a certificate of
dissolution
with the bureau of commercial services department of
licensing and regulatory affairs within 10 business days following
board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the urban high school academy
board of directors shall provide a copy of the board of directors'
plan of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the urban high school academy's winding up of the dissolved
corporation in accordance with the plan of distribution of assets
approved or provided under subdivision (c).
(e) As part of the plan of distribution of assets, the urban
high school academy board of directors shall designate the director
of the department of technology, management, and budget, or his or
her designee, to dispose of all real property of the urban high
school academy corporation in accordance with the directives
developed for disposition of surplus land and facilities under
section 251 of the management and budget act, 1984 PA 431, MCL
18.1251.
(f) If the board of directors of an urban high school academy
fails to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the urban high
school academy board of directors and appoint a trustee to carry
out the board's plan of distribution of assets. Upon appointment,
the trustee shall have all the rights, powers, and privileges under
law that the urban high school academy board of directors had
before being suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any urban high school academy debt secured by the property or
interest in property, whether real or personal, the urban high
school academy board of directors, or a trustee appointed under
this section, shall forward any remaining money to the state
treasurer. Following receipt, the state treasurer, or his or her
designee, shall deposit this remaining money in the state school
aid fund.
Sec. 551. (1) A school of excellence is a public school under
section 2 of article VIII of the state constitution of 1963, is a
school district for the purposes of section 11 of article IX of the
state constitution of 1963 and for the purposes of section 1225 and
section 1351a, and is subject to the leadership and general
supervision of the state board over all public education under
section 3 of article VIII of the state constitution of 1963. A
school of excellence is a body corporate and is a governmental
agency. The powers granted to a school of excellence under this
part constitute the performance of essential public purposes and
governmental functions of this state.
(2) As used in this part:
(a) "Authorizing body" means any of the following that issues
a contract as provided in this part:
(i) The board of a school district. that
operates grades K to
12.
(ii) An intermediate school board.
(iii) The board of a community college.
(iv) The governing board of a state public university.
(v) Two or more of the public agencies described in
subparagraphs (i) to (iv) exercising power, privilege, or authority
jointly pursuant to an interlocal agreement under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
(b) "Certificated teacher" means an individual who holds a
valid teaching certificate issued by the superintendent of public
instruction under section 1531.
(c) "Community college" means a community college organized
under the community college act of 1966, 1966 PA 331, MCL 389.1 to
389.195, or a federal tribally controlled community college that is
recognized under the tribally controlled colleges and universities
assistance
act of 1978, 25 USC 1801 to 1852, 1864, and is
determined by the department to meet the requirements for
accreditation by a recognized regional accrediting body.
(d) "Contract" means the executive act taken by an authorizing
body that evidences the authorization of a school of excellence and
that establishes, subject to the constitutional powers of the state
board and applicable law, the written instrument executed by an
authorizing body conferring certain rights, franchises, privileges,
and obligations on a school of excellence, as provided by this
part, and confirming the status of a school of excellence as a
public school in this state.
(e) "Cyber school" means a school of excellence established
under this part that has been issued a contract to be organized and
operated as a cyber school under section 552(2) and that provides
full-time instruction to pupils through online learning or
otherwise on a computer or other technology, which instruction and
learning may be remote from a school facility.
(f) "Educational management organization" means an entity that
enters into an agreement with the governing board of a public
school to provide comprehensive educational, administrative,
management, or instructional services or staff to the public
school.
(g) "Entity" means a partnership, nonprofit or business
corporation, labor organization, or any other association,
corporation, trust, or other legal entity.
(h) "State public university" means a state university
described in section 4, 5, or 6 of article VIII of the state
constitution of 1963.
Sec. 552. (1) An authorizing body may issue contracts under
this subsection to organize and operate a school of excellence. All
of the following apply to the issuance of a contract by an
authorizing body under this subsection:
(a) The issuance of the contract must be approved by the
superintendent of public instruction. The superintendent of public
instruction shall approve issuance of a contract if he or she
determines that the proposed school of excellence is modeled after
a high-performing school or program.
(b) The first 5 contracts issued by all authorizing bodies
under this subsection shall be for schools of excellence that offer
1 or more of high school grades 9 to 12, or any combination of
those grades, as specified in the contract.
(c) A school of excellence authorized under this subsection
shall not be located in a school district that has a graduation
rate of over 75%, on average, for the most recent 3 school years
for which the data are available, as determined by the department.
(2) Subject to the limitations in this subsection and
subsection
(14), subsections (14) and (15),
an authorizing body may
issue contracts under this subsection for 1 or more schools of
excellence
that are cyber schools. Until December 31, 2013, the
combined
total number of contracts that may be issued by all
statewide
authorizing bodies under this subsection for schools of
excellence
that are cyber schools shall not exceed 5. Until
December
31, 2014, the combined total number of contracts that may
be
issued by all statewide authorizing bodies under this subsection
for
schools of excellence that are cyber schools shall not exceed
10.
After December 31, 2014, the The
combined total number of
contracts issued by all statewide authorizing bodies under this
subsection for schools of excellence that are cyber schools shall
not exceed 15. The board of a school district, an intermediate
school board, the board of a community college that is not a
statewide authorizing body, or 2 or more public agencies acting
jointly as described in subsection (6)(e) may not act as the
authorizing body for more than 1 school of excellence that is a
cyber school. An authorizing body shall not issue a contract for a
school of excellence that is a cyber school unless the school of
excellence that is a cyber school meets all of the following
requirements:
(a) Is available for enrollment to all pupils in this state.
(b) Offers some configuration of or all of grades K to 12.
(c) The entity applying for the school of excellence that is a
cyber school demonstrates experience in delivering a quality
education program that improves pupil academic achievement. In
determining whether this requirement is met, an authorizing body
shall refer to the standards for quality online learning
established by the national association of charter school
authorizers or other similar nationally recognized standards for
quality online learning.
(d) The enrollment in the school of excellence that is a cyber
school is limited to not more than 2,500 pupils in membership for
the first school year of operation of the school of excellence that
is a cyber school, not more than 5,000 pupils in membership for the
second school year of operation of the school of excellence that is
a cyber school, and not more than 10,000 pupils in membership for
the third and subsequent school years of operation of the school of
excellence that is a cyber school. As used in this subdivision,
"membership" means that term as defined in section 6 of the state
school aid act of 1979, MCL 388.1606.
(e) The school of excellence that is a cyber school offers
each pupil's family a computer and subsidizes the cost of internet
access.
(3) For a public school academy operating under part 6a that
meets the requirements of subsection (4), with the approval of its
authorizing body, the board of directors of the public school
academy may adopt a resolution choosing to convert the public
school academy to a school of excellence under this part. If the
board of directors of a public school academy that meets the
requirements of subsection (4) is issued a contract as a school of
excellence under this subsection, all the following apply:
(a) The public school academy shall cease to operate as a
public school academy under part 6a and shall operate as a school
of excellence upon the issuance of a contract or at another time as
determined by the authorizing body.
(b) The public school academy shall be considered to be a
school of excellence for all purposes upon the issuance of a
contract or at another time as determined by the authorizing body,
but shall retain its corporate identity.
(c) The conversion of a public school academy under part 6a to
a school of excellence operating under this part shall not impair
any agreement, mortgage, loan, bond, note or other instrument of
indebtedness, or any other agreement entered into by a public
school academy while it was operating under part 6a.
(d) The contract issued to the public school academy under
part 6a shall automatically terminate upon the issuance of a
contract or at another time as determined by the authorizing body.
(4) Subsection (3) applies to a public school academy that is
determined by the department to meet all of the following, as
applicable:
(a) If the public school academy operates only some or all of
grades K to 8, meets at least 1 of the following:
(i) On average over a 3-year period, at least 90% of the
pupils enrolled in the public school academy achieved a score of
proficient or better on the Michigan education assessment program
mathematics and reading tests or successor state assessment
program.
(ii) On average over a 3-year period, at least 70% of the
pupils enrolled in the public school academy achieved a score of
proficient or better on the Michigan education assessment program
mathematics and reading tests or successor state assessment program
and at least 50% of the pupils enrolled in the public school
academy met the income eligibility criteria for the federal free or
reduced-price lunch program, as determined under the Richard B.
Russell
national school lunch act, 42 USC 1751 to 1769i, 1769j, and
reported to the department.
(b) If the public school academy operates grades 9 to 12, at
least 80% of the school's pupils graduate from high school or are
determined by the department to be on track to graduate from high
school, the school has at least 80% average attendance, and the
school has at least an 80% postsecondary enrollment rate.
(5) A school of excellence shall be organized and administered
under the direction of a board of directors in accordance with this
part and with bylaws adopted by the board of directors. A school of
excellence shall be organized under the nonprofit corporation act,
1982 PA 162, MCL 450.2101 to 450.3192, except that a school of
excellence is not required to comply with sections 170 to 177 of
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified
under the state or federal constitution, a school of excellence
shall not be organized by a church or other religious organization
and shall not have any organizational or contractual affiliation
with or constitute a church or other religious organization.
(6) Any of the following may act as an authorizing body to
issue a contract to organize and operate 1 or more schools of
excellence under this part:
(a)
The board of a school district. that operates grades K to
12.
However, except as otherwise
provided in this subdivision, the
board of a school district shall not issue a contract for a school
of excellence to operate outside the school district's boundaries,
and a school of excellence authorized by the board of a school
district shall not operate outside that school district's
boundaries. If the board of a school district issues a contract for
a school of excellence that is a cyber school, the contract may
authorize the school of excellence that is a cyber school to
operate outside that school district's boundaries.
(b) An intermediate school board. However, except as otherwise
provided in this subdivision, the board of an intermediate school
district shall not issue a contract for a school of excellence to
operate outside the intermediate school district's boundaries, and
a school of excellence authorized by the board of an intermediate
school district shall not operate outside that intermediate school
district's boundaries. If the board of an intermediate school
district issues a contract for a school of excellence that is a
cyber school, the contract may authorize the school of excellence
that is a cyber school to operate outside that intermediate school
district's boundaries.
(c) The board of a community college. Except as otherwise
provided in this subdivision, the board of a community college
shall not issue a contract for a school of excellence to operate
outside the boundaries of the community college district, and a
school of excellence authorized by the board of a community college
shall not operate outside the boundaries of the community college
district. If the board of a community college issues a contract for
a school of excellence that is a cyber school, the contract may
authorize the school of excellence that is a cyber school to
operate outside the boundaries of the community college district.
The board of a community college also may issue a contract for not
more than 1 school of excellence to operate on the grounds of an
active or closed federal military installation located outside the
boundaries of the community college district, or may operate a
school of excellence itself on the grounds of such a federal
military installation, if the federal military installation is not
located within the boundaries of any community college district and
the community college has previously offered courses on the grounds
of the federal military installation for at least 10 years.
(d) The governing board of a state public university.
(e) Two or more of the public agencies described in
subdivisions (a) to (d) exercising power, privilege, or authority
jointly pursuant to an interlocal agreement under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
(7) To obtain a contract to organize and operate 1 or more
schools of excellence, 1 or more persons or an entity may apply to
an authorizing body described in this section. The application
shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 553(4), a list of the proposed members of the board
of directors of the school of excellence and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed school of excellence.
(ii) The purposes for the school of excellence corporation.
This language shall provide that the school of excellence is
incorporated pursuant to this part and that the school of
excellence is a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the school of excellence.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the school of excellence.
(ii) A copy of the educational goals of the school of
excellence and the curricula to be offered and methods of pupil
assessment to be used by the school of excellence. The educational
goals shall include demonstrated improved pupil academic
achievement for all groups of pupils. To the extent applicable, the
progress of the pupils in the school of excellence shall be
assessed
using at least a Michigan education assessment program
(MEAP)
test both the mathematics and
reading portions of the
Michigan student test of educational progress (M-STEP) or the
Michigan merit examination under section 1279g, as applicable.
(iii) The admission policy and criteria to be maintained by
the school of excellence. The admission policy and criteria shall
comply with section 556. This part of the application also shall
include a description of how the applicant will provide to the
general public adequate notice that a school of excellence is being
created and adequate information on the admission policy, criteria,
and process.
(iv) Except for a school of excellence that is a cyber school,
the school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(f) Descriptions of staff responsibilities and of the school
of excellence governance structure.
(g) For an application to the board of a school district, an
intermediate school board, or board of a community college,
identification of the school district and intermediate school
district in which the school of excellence will be located.
(h) An agreement that the school of excellence will comply
with the provisions of this part and, subject to the provisions of
this part, with all other state law applicable to public bodies and
with federal law applicable to public bodies or school districts.
(i) A description of and address for the proposed physical
plant in which the school of excellence will be located. An
applicant may request the authorizing body to issue a contract
allowing the board of directors of the school of excellence to
operate the same configuration of age or grade levels at more than
1 site.
(8) An authorizing body shall oversee, or shall contract with
an intermediate school district, community college, or state public
university to oversee, each school of excellence operating under a
contract issued by the authorizing body. The authorizing body is
responsible for overseeing compliance by the board of directors
with the contract and all applicable law. This subsection does not
relieve any other government entity of its enforcement or
supervisory responsibility.
(9) If the superintendent of public instruction finds that an
authorizing body is not engaging in appropriate continuing
oversight of 1 or more schools of excellence operating under a
contract issued by the authorizing body, the superintendent of
public instruction may suspend the power of the authorizing body to
issue new contracts to organize and operate schools of excellence.
A contract issued by the authorizing body during the suspension is
void. A contract issued by the authorizing body before the
suspension is not affected by the suspension.
(10) An authorizing body shall not charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a school of excellence in an amount that exceeds a
combined total of 3% of the total state school aid received by the
school of excellence in the school year in which the fees or
expenses are charged. The authorizing body may provide other
services for a school of excellence and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the school of excellence.
(11) A school of excellence shall be presumed to be legally
organized if it has exercised the franchises and privileges of a
public school academy for at least 2 years.
(12) A member of the board of directors of a school of
excellence is a public officer and shall, before entering upon the
duties of the office, take the constitutional oath of office for
public officers under section 1 of article XI of the state
constitution of 1963.
(13) A school of excellence that is a cyber school may make
available to other public schools for purchase any of the course
offerings that the cyber school offers to its own pupils.
(14) If the department determines that the combined total
statewide final audited membership for all pupils in membership in
schools of excellence that are cyber schools for the 2012-2013
state fiscal year exceeds a number equal to 1% of the combined
total statewide final audited membership for all pupils in
membership in public schools for the 2011-2012 state fiscal year,
then all of the following apply:
(a) An authorizing body may not issue a new contract for a new
school of excellence that is a cyber school to begin operations in
the 2013-2014 school year.
(b) A school of excellence that is a cyber school may not
enroll any new pupils in the school of excellence that is a cyber
school in the 2013-2014 school year.
(15) Beginning July 1, 2013, if the department determines that
the combined total statewide final audited membership for all
pupils in membership in schools of excellence that are cyber
schools for a state fiscal year exceeds a number equal to 2% of the
combined total statewide final audited membership for all pupils in
membership in public schools for the 2011-2012 state fiscal year,
then all of the following apply:
(a) Subject to subdivision (c), an authorizing body may not
issue a new contract for a new school of excellence that is a cyber
school to begin operations in a school year that begins after that
determination is made.
(b) Subject to subdivision (c), a school of excellence that is
a cyber school may not enroll any new pupils in the school of
excellence that is a cyber school in a school year that begins
after that determination is made.
(c) If the department determines that the combined total
statewide final audited membership for all pupils in membership in
schools of excellence that are cyber schools for a state fiscal
year does not exceed a number equal to 2% of the combined total
statewide final audited membership for all pupils in membership in
public schools for the 2011-2012 state fiscal year, then
subdivisions (a) and (b) do not apply for a school year that begins
after that determination is made unless the department makes a new
determination that the membership limits under this subsection have
been exceeded.
(16)
For the purposes of subsections (14) and (15), not later
than
July 1, 2012, and by not later than
July 1 of each year,
thereafter,
the department shall determine the
percentage of the
combined total statewide final audited membership for all pupils in
membership in public schools that are pupils in membership in
schools of excellence that are cyber schools for the state fiscal
year that includes that July 1.
(17) As used in this section:
(a) "Membership" means that term as defined in section 6 of
the state school aid act of 1979, MCL 388.1606.
(b) "Statewide authorizing body" means the governing board of
a state public university or the board of a federal tribally
controlled community college that is recognized under the tribally
controlled colleges and universities assistance act of 1978, 25 USC
1801
to 1852, 1864, and is determined by the department to meet the
requirements for accreditation by a recognized regional accrediting
body.
(18) Not later than October 1, 2012, If a district, an
intermediate school district, a public school academy, or the
education achievement system offers online learning, the board or
board of directors of the district, intermediate school district,
or public school academy, or the education achievement system,
shall submit to the department a report that details the per-pupil
costs of operating the online learning. The report shall include,
on a per-pupil basis, at least all of the following costs:
(a) Textbooks, instructional materials, and supplies,
including electronic instructional material.
(b) Computer and other electronic equipment, including
internet and telephone access.
(c) Salaries and benefits for the online learning employees.
(d) Purchased courses and curricula.
(e) Fees associated with oversight and regulation.
(f) Travel costs associated with school activities and
testing.
(g) Facilities costs.
(h) Costs associated with special education.
(19) Not later than December 31, 2012, the department shall
issue a report to the legislature including the following:
(a) A review of the data submitted under subsection (14).
(b) A comparison with costs of substantially similar programs
in other states and relevant national research on the costs of
online learning.
(c) Any conclusions concerning factors or characteristics of
online learning programs that make a difference in the costs of
operating the programs.
(20) The board of directors of a school of excellence that is
a cyber school, or the board of a school district, intermediate
school district, or public school academy that operates an online
or other distance learning program, shall submit a monthly report
to the department, in the form and manner prescribed by the
department, that reports the number of pupils enrolled in the
school of excellence that is a cyber school, or in the online or
other distance learning program, during the immediately preceding
month.
(21) The board of directors of a school of excellence that is
a cyber school shall ensure that, when a pupil enrolls in the
school of excellence that is a cyber school, the pupil and his or
her parent or legal guardian are provided with a parent-student
orientation. If the pupil is at least age 18 or is an emancipated
minor, the orientation may be provided to just the pupil.
(22) All of the following apply to the issuance of a contract
for a new school of excellence to be located in a community
district:
(a) If there is an education commission in place in the
community district, both of the following:
(i) The decision whether to issue the contract for the new
school of excellence is subject to education commission siting
approval under section 392(2) unless the proposed new school of
excellence is exempt under section 392(1) from the requirement for
education commission siting approval.
(ii) Before an authorizing body issues a contract for a new
school of excellence that is exempt under section 392(1) from the
requirement for education commission siting approval, the
authorizing body shall provide the education commission of the
community district a period of at least 90 days to submit written
comments concerning the location of the proposed new school of
excellence, unless the education commission agrees in writing to
waive the comment period. If the education commission submits
written comments concerning the location of the proposed new school
of excellence, the authorizing body shall consider the education
commission's comments as part of its decision whether or not to
take final action to issue a contract for the new school of
excellence.
(b) An authorizing body shall not issue a new contract to
organize and operate a school of excellence under this part to an
existing school of excellence that has had its contract with its
previous authorizing body revoked, terminated, or not renewed or
that is currently assigned a letter grade of "F" under the
community district accountability system under section 393. The
board of directors of a school of excellence described in this
subsection shall not apply for a contract that would violate this
subsection. This subdivision does not apply to the nonrenewal of a
contract by an authorizing body if the authorizing body's governing
board has made an official determination that it will not issue or
renew any contracts under this act authorizing the operation of a
school of excellence regardless of the merits of renewing the
contract.
Sec. 561. (1) If an authorizing body issues a contract for a
school of excellence under this part, the authorizing body shall do
all of the following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each school of
excellence that it authorizes. The authorizing body shall ensure
that the board of directors includes representation from the local
community.
(d) Oversee the operations of each school of excellence
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the school of
excellence is in compliance with the terms of the contract and with
applicable law. This subdivision does not relieve any other
governmental entity of its enforcement or supervisory
responsibility.
(e) Develop and implement a process for holding a school of
excellence board of directors accountable for meeting applicable
academic performance standards set forth in the contract and for
implementing corrective action for a school of excellence that does
not meet those standards.
(f) Take necessary measures to ensure that a school of
excellence board of directors operates independently of any
educational management organization involved in the operations of
the school of excellence.
(g) Oversee and ensure that the pupil admission process used
by the school of excellence is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the school of
excellence maintains and releases information as necessary to
comply with applicable law.
(2) The authorizing body may enter into an agreement with 1 or
more authorizing bodies, as defined under part 6a, to carry out any
function of the authorizing body under subsection (1)(a) to (h).
(3) The authorizing body for a school of excellence is the
fiscal agent for the school of excellence. A state school aid
payment for a school of excellence shall be paid to the authorizing
body as the fiscal agent for that school of excellence, and the
authorizing body shall then forward the payment to the school of
excellence. Within 30 days after a contract is submitted to the
department by the authorizing body under subsection (1), the
department shall issue a district code to the school of excellence
for which the contract was issued. If the department does not issue
a district code within 30 days after a contract is filed, the state
treasurer shall assign a temporary district code in order for the
school of excellence to receive funding under the state school aid
act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the school of excellence to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the school of excellence to comply with all
applicable law.
(c) Failure of the school of excellence to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for a school of excellence that is an alternative
school
serving a special student population, if the superintendent
of
public instruction state
school reform/redesign officer
determines that a school of excellence site that has been operating
for at least 4 years is among the lowest achieving 5% of all public
schools in this state for 3 consecutive school years, for 3 of the
preceding 4 school years, or for 3 of the preceding 5 school years,
as
defined for the purposes of the federal incentive grant program
created
under sections 14005 and 14006 of title XIV of the American
recovery
and reinvestment act of 2009, Public Law 111-5, is in year
2
of restructuring sanctions under the no child left behind act of
2001,
Public Law 107-110, determined
under section 1280c, not to
include
the any individualized education plan subgroup, and is not
currently undergoing reconstitution under this section, the
superintendent
of public instruction state
school reform/redesign
officer shall notify the school of excellence's authorizing body.
Also, except for a school of excellence that is an alternative
school serving a special student population, if the state school
reform/redesign officer determines that a school of excellence site
located in a community district has been assigned a grade of "F"
under section 393 for 3 consecutive school years, for 3 of the
preceding 4 school years, or for 3 of the preceding 5 school years,
and is not currently undergoing reconstitution under this section,
the state school reform/redesign officer shall notify the school of
excellence's authorizing body. If an authorizing body receives
notice
from the superintendent of public instruction state school
reform/redesign officer under this subsection, the authorizing body
shall amend the school of excellence's contract to eliminate the
school of excellence's authority to operate the existing age and
grade levels at the site and the school of excellence shall cease
operating the existing age and grade levels at the site, effective
at the end of the current school year. If the school of excellence
operates at only 1 site or is a cyber school, and the authorizing
body
receives notice from the superintendent of public instruction
state school reform/redesign officer under this subsection, the
authorizing body shall revoke the school of excellence's contract,
effective at the end of the current school year.
(6) Except for a contract issued by a school district pursuant
to a vote by the school electors on a ballot question under section
553(2), and except as otherwise provided in section 552, the
decision of the authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
court or any other state agency. If the authorizing body issues,
does not issue, or reconstitutes a contract under this part, or
terminates or revokes a contract under this section, the
authorizing body is not liable for that action to the school of
excellence, the school of excellence corporation, a pupil of the
school of excellence, the parent or guardian of a pupil of the
school of excellence, or any other person.
(7)
Except as otherwise provided in subsection (5), this
section, before the authorizing body revokes a contract, the
authorizing body may consider and take corrective measures to avoid
revocation. The authorizing body may reconstitute the school of
excellence in a final attempt to improve student educational
performance or to avoid interruption of the educational process.
The authorizing body shall include a reconstituting provision in
the contract that identifies these corrective measures, including,
but not limited to, canceling a contract with an educational
management organization, if any, withdrawing approval to contract
under section 560, or appointing a new board of directors or a
trustee to take over operation of the school of excellence.
(8) If the authorizing body revokes a contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the school of excellence under this part, shall return any
school aid funds held by the authorizing body that are attributable
to the affected pupils to the state treasurer for deposit into the
state school aid fund. The state treasurer shall distribute funds
to the public school in which the pupils enroll after the
revocation pursuant to a methodology established by the department
and the center for educational performance and information.
(9) Not more than 10 days after a school of excellence's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the school of excellence whose contract has terminated or
been revoked and the date of contract termination or revocation.
(10) If a school of excellence's contract terminates or is
revoked, title to all real and personal property, interest in real
or personal property, and other assets owned by the school of
excellence shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of a school of excellence shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the school of excellence corporation,
all in accordance with chapter 8 of the nonprofit corporation act,
1982 PA 162, MCL 450.2801 to 450.2864.
(b) The school of excellence shall file a certificate of
dissolution
with the bureau of commercial services department of
licensing and regulatory affairs within 10 business days following
board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the school of excellence board
of directors shall provide a copy of the board of directors' plan
of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the school of excellence's winding up of the dissolved corporation
in accordance with the plan of distribution of assets approved or
provided under subdivision (c).
(e) As part of the plan of distribution of assets, the school
of excellence board of directors shall designate the director of
the department of technology, management, and budget, or his or her
designee, to dispose of all real property of the school of
excellence corporation in accordance with the directives developed
for disposition of surplus land and facilities under section 251 of
the management and budget act, 1984 PA 431, MCL 18.1251.
(f) If the board of directors of a school of excellence fails
to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the school of
excellence board of directors and appoint a trustee to carry out
the board's plan of distribution of assets. Upon appointment, the
trustee shall have all the rights, powers, and privileges under law
that the school of excellence board of directors had before being
suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any school of excellence debt secured by the property or interest
in property, whether real or personal, the school of excellence
board of directors, or a trustee appointed under this section,
shall forward any remaining money to the state treasurer. Following
receipt, the state treasurer, or his or her designee, shall deposit
this remaining money in the state school aid fund.
Sec.
654. (1) In Except
as otherwise provided in subsection
(2), in a constituent district not employing a superintendent the
intermediate superintendent shall do all of the following:
(a) Recommend in writing all teachers to the school board of
education.the constituent district.
(b)
Suspend a teacher for cause until the school
board of
education
of the constituent district
employing the teacher
considers the suspension.
(c) Supervise and direct the work of the teachers.
(d) Classify and control the promotion of pupils.
(2) Subsection (1) does not apply to a constituent district if
any of the following apply:
(a) The constituent district is not required to employ a
superintendent as an employee of the district under section 1229.
(b) All of the public schools within the constituent district
have been transferred to 1 or more other school districts or public
entities.
Sec. 705. (1) Beginning in 1997, and in each year after 1997,
a regional enhancement property tax may be levied by an
intermediate school district at a rate not to exceed 3 mills to
enhance other state and local funding for local school district
operations if approved by a majority of the intermediate school
electors voting on the question.
(2) If a resolution requesting that the question of a regional
enhancement property tax be submitted to the voters is adopted
within a 180-day period and transmitted to the intermediate school
board
by 1 or more boards of its constituent school districts
representing a majority of the combined membership of the
constituent
school districts as of the most recent pupil membership
count day and if those resolutions all contain an identical
specified number of mills to be levied under this section and an
identical specified number of years for which the tax shall be
levied, the question of levying a regional enhancement property tax
by the intermediate school district shall be placed on the ballot
by the intermediate school district at the next regular school
election held in each of the constituent districts. If the question
is to be submitted to the intermediate school electors of an
intermediate school district having a population of more than
1,400,000, the intermediate school board shall call a special
election to be held at the next state primary or general election.
If the resolution requirement is met more than 180 days before the
next regular school district elections, and if requested in the
resolutions, the intermediate school board shall submit the
question of levying a regional enhancement property tax within the
intermediate school district on the ballot at a special election
called by the intermediate school board for that purpose not
earlier than 90 days after the resolution requirements are met.
(3) Not later than 10 days after receipt by the intermediate
school district of the revenue from the regional enhancement
property tax, the intermediate school district shall calculate and
pay
to each of its constituent school districts an amount of the
revenue calculated by dividing the total amount of the revenue by
the
combined membership of the constituent school districts within
the intermediate school district, as of the most recent pupil
membership count day, and multiplying that quotient by the
constituent
school district's membership, as of the most recent
pupil membership count day for which a final department-audited
pupil count is available. If a constituent district has entered
into an agreement with another school district or public entity to
perform the functions and responsibilities of the constituent
district for operating a public school of the constituent district,
then for the purposes of this subsection the pupils in membership
in that public school shall be considered to be in membership in
the constituent district and a proportionate share of the revenue
payable to the constituent district under this section shall be
transferred by the constituent district to the school district or
public entity performing the functions and responsibilities of the
constituent district for operating the public school. The
proportionate share of that revenue to be paid to that school
district or public entity shall be determined according to the
percentage of the constituent district's membership that is
enrolled in the particular public school for the state fiscal year
corresponding to the tax year. Revenue from a regional enhancement
property tax under this section shall not be allocated or paid to a
constituent district that does not operate a public school directly
but retains a limited separate identity for purposes of section 12,
12b, 863, 903, or 947.
(4) Regional enhancement property tax under this section may
be levied for a term not to exceed 20 years, as specified in the
ballot question, and may be renewed for the same term with the
approval of a majority of the intermediate school electors voting
on the question.
(5) The question of levying a regional enhancement property
tax under this section shall be presented to the intermediate
school electors as a separate question.
Sec.
921. (1) Annually Subject to subsection (2), annually on
June 1 each intermediate superintendent shall compile a list of
constituent
districts which that did not operate school within the
constituent
district during the preceding 2 or more
years. Not
later
than Before June 10, the intermediate superintendent shall
direct in writing the board of each constituent district on this
list
to comply with this section and section
922. Before the
expiration
of 1 year following this official notification Within 1
year after issuance of this directive by the intermediate
superintendent,
the constituent district shall either:do 1 of the
following:
(a) Attach itself either totally or in part to 1 or more
operating school districts, including, but not limited to, a
reorganization under section 12 or 12b.
(b) Transfer the functions and responsibilities of the
constituent district relating to operating public schools to 1 or
more other public entities authorized to operate public schools,
including, but not limited to, another school district or an
intermediate school district.
(c) (b)
Reopen and operate its own school.
(2) For the purposes of this section, a constituent district
shall be considered to have operated a school within the school
district if the constituent district did either or both of the
following:
(a) Directly operated 1 or more schools on its own.
(b) Caused public education services to be provided within the
school district to residents of the school district through an
agreement, contract, or other cooperative agreement with another
public entity, including, but not limited to, another school
district or an intermediate school district.
Sec. 1147. (1) A child who is a resident of a school district
that does not provide kindergarten and who is at least 5 years of
age on the first day of enrollment of the school year may attend
school in a public school operated by the school district or, for a
community district or a school district that does not directly
operate schools on its own, in another public school located within
the geographic boundaries of the school district.
(2)
Subject to subsection (3), for the 2013-2014 school year,
a
child who resides in the school district may enroll in
kindergarten
if the child is at least 5 years of age on November 1,
2013.
Subject to subsection (3), for the 2014-2015 school year, a
child
who resides in the school district may enroll in kindergarten
if
the child is at least 5 years of age on October 1, 2014. Subject
to subsection (3), beginning with the 2015-2016 school year, a
child who is at least 5 years of age on September 1 of the school
year of enrollment and who resides in the school district may
enroll
in kindergarten if the child is at least 5 years of age on
September
1 of the school year of enrollment.in
a public school
operated by the school district or, for a community district or a
school district that does not directly operate schools on its own,
in another public school located within the geographic boundaries
of the school district.
(3) If a child residing in the school district or a child
eligible to enroll in and be counted in membership in the school
district under section 105 or 105c of the state school aid act of
1979, MCL 388.1705 and 388.1705c, is not 5 years of age on the
enrollment eligibility date specified in subsection (2), but will
be 5 years of age not later than December 1 of a school year, the
parent or legal guardian of that child may enroll the child in
kindergarten for that school year in a public school operated by
the school district or, for a community district or a school
district that does not directly operate schools on its own, in
another public school located within the geographic boundaries of
the school district if the parent or legal guardian notifies the
school
district public school in writing that he or she intends to
enroll
the child in kindergarten for that school year. A school
district
public school that receives this written notification may
make a recommendation to the parent or legal guardian of a child
described in this subsection that the child is not ready to enroll
in kindergarten due to the child's age or other factors. However,
regardless of this recommendation, the parent or legal guardian
retains the sole discretion to determine whether or not to enroll
the child in kindergarten under this subsection.
(4) The ages prescribed in this section for a child's
eligibility
for enrollment in a school district public school also
apply to a child's eligibility to enroll in a public school
academy.
(5)
If a school district or public school academy public
school enrolls any children in kindergarten for a school year under
subsection
(3), the school district or public school academy public
school shall notify the department of the number of those children
enrolled by not later than December 31 of that school year.
(6) This section does not require a school district to operate
a public school directly on its own.
(7) This section does not apply to a school district that does
not operate a public school directly but retains a limited separate
identity for purposes of section 12, 12b, 863, 903, or 947.
(8) This section does not require a school district or public
school academy that does not otherwise provide kindergarten to
provide kindergarten.
Sec. 1225. (1) Subject to restrictions of this section, a
school board or intermediate school board may borrow money and
issue notes of the school district or intermediate school district
for the borrowed money to secure funds for school operations or to
pay previous loans obtained for school operations under this or any
other statute. The school board or intermediate school board shall
pledge money to be received by it from state school aid for the
payment of notes issued under this section. A pledge of state
school aid by a school district or intermediate school district for
the payment of notes issued pursuant to this section is valid and
binding from the time when the pledge is made. A pledge made
pursuant to this section for the benefit of the holders of notes or
for the benefit of others is perfected without delivery, recording,
or notice. Notes issued pursuant to this section are full faith and
credit obligations of the school district or intermediate school
district and are payable from tax levies or from unencumbered funds
of the school district or intermediate school district in event of
the unavailability or insufficiency of state school aid for any
reason.
(2) A school district or intermediate school district for
which
an emergency manager has been appointed pursuant to the local
government
and school district fiscal accountability act, 2011 PA
4,
MCL 141.1501 to 141.1531, local
financial stability and choice
act, 2012 PA 436, MCL 141.1541 to 141.1575, or a school district or
intermediate school district that has an approved deficit
elimination plan or an enhanced deficit elimination plan required
under section 102 of the state school aid act of 1979, MCL
388.1702, may enter into an agreement with the Michigan finance
authority in accordance with section 17a(4) of the state school aid
act of 1979, MCL 388.1617a, providing for the direct payment on
behalf of the school district or intermediate school district to
the Michigan finance authority, or to a trustee designated by the
Michigan finance authority, of state school aid pledged and to be
used for the sole purpose of paying the principal of and interest
on the notes issued pursuant to this section and secured by state
school aid.
(3) Notes issued under this section shall become due not later
than 372 days after the date on which they are issued, except as
otherwise provided in this section. Notes issued within a fiscal
year shall not exceed 70% of the difference between the total state
aid funds apportioned to the school district or intermediate school
district for that fiscal year and the portion already received or
pledged, except secondary pledges made under section 1356.
(4) A school district or intermediate school district that is
not able to redeem its notes within 372 days after the date on
which the notes were issued may enter into a multi-year agreement
with a lending institution to repay its obligation. A repayment
agreement shall not be executed without the prior approval of an
authorized representative of the state board or, for notes sold to
the Michigan finance authority only, without the approval of an
authorized representative of the department of treasury.
(5) During the last 4 months of a fiscal year, notes may be
issued pledging state school aid for the next succeeding fiscal
year. Except as otherwise provided in this subsection, the notes
shall not exceed 50% of the state school aid apportioned to the
school district or intermediate school district for the next
succeeding fiscal year or, if the apportionment has not been made,
50% of the apportionment for the then current fiscal year. The
notes shall mature not later than 372 days after the date of
issuance.
(6) Notes issued under this section are subject to the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
Failure of a school district or intermediate school district to
receive state school aid does not affect the validity or
enforceability of a note issued under this section.
(7) A school board or intermediate school board, including,
but not limited to, the school board of a community district, may
make more than 1 borrowing under this section during a school year.
(8) In addition to other powers under this section, with the
approval of the state treasurer, a school board or intermediate
school board, including, but not limited to, the school board of a
community district, may obtain a line of credit to secure funds for
school operations or to pay previous loans obtained for school
operations under this or any other statute. The school board or
intermediate school board shall pledge not more than 30% of the
state school aid apportioned to the school district or intermediate
school district for that fiscal year for repayment of funds
received pursuant to a line of credit obtained under this
subsection. However, the school board or intermediate school board
shall not borrow against the line of credit an amount greater than
the difference, as of the date of the borrowing, between the total
state school aid funds apportioned to the school district or
intermediate school district for that fiscal year and the portion
already received or pledged, except secondary pledges made under
section 1356. To obtain approval for obtaining a line of credit
under this subsection, a school board or intermediate school board
shall apply to the state treasurer in the form and manner
prescribed by the state treasurer, and shall provide information as
requested by the state treasurer for evaluating the application.
The state treasurer shall approve or disapprove an application and
notify the school board or intermediate school board within 20
business days after receiving a proper application. If the state
treasurer disapproves an application, the state treasurer shall
include the reasons for disapproval in the notification to the
school board or intermediate school board.
Sec. 1229. (1) Except as otherwise provided in subsection (4),
the board of a school district, other than a school district that
was organized as a primary school district during the 1995-1996
school year, or of an intermediate school district shall employ a
superintendent of schools, who shall meet the requirements of
section 1246. The superintendent shall not be a member of the
board. Employment of a superintendent shall be by written contract.
The term of the superintendent's contract shall be fixed by the
board, not to exceed 5 years. If written notice of nonrenewal of
the contract of a superintendent is not given at least 90 days
before the termination of the contract, the contract is renewed for
an additional 1-year period.
(2) The board of a school district or intermediate school
district may employ assistant superintendents, principals,
assistant principals, guidance directors, and other administrators
who do not assume tenure in that position under 1937 (Ex Sess) PA
4, MCL 38.71 to 38.191. The employment shall be by written
contract. The term of the employment contract shall be fixed by the
board, not to exceed 3 years. The board shall prescribe the duties
of a person described in this subsection. If written notice of
nonrenewal of the contract of a person described in this subsection
is not given at least 60 days before the termination date of the
contract, the contract is renewed for an additional 1-year period.
(3) A notification of nonrenewal of contract of a person
described in subsection (2) may be given only for a reason that is
not arbitrary or capricious. The board shall not issue a notice of
nonrenewal under this section unless the affected person has been
provided with not less than 30 days' advance notice that the board
is considering the nonrenewal together with a written statement of
the reasons the board is considering the nonrenewal. After the
issuance of the written statement, but before the nonrenewal
statement is issued, the affected person shall be given the
opportunity to meet with not less than a majority of the board to
discuss the reasons stated in the written statement. The meeting
shall be open to the public or a closed session, as the affected
person elects under section 8 of the open meetings act, 1976 PA
267, MCL 15.268. If the board fails to provide for a meeting with
the board, or if a court finds that the reason for nonrenewal is
arbitrary or capricious, the affected person's contract is renewed
for an additional 1-year period. This subsection does not apply to
the nonrenewal of the contract of a superintendent of schools
described in subsection (1).
(4) A school district, instead of directly employing a
superintendent of schools, may contract with its intermediate
school district for the intermediate superintendent to serve as the
superintendent of schools for the school district or for the
intermediate school district to provide another person to serve as
superintendent of schools for the school district or may contract
with another person, including, but not limited to, the
superintendent of another school district, to serve as
superintendent of schools for the school district. If a school
district does not operate a public school directly on its own, the
school district is not required to employ a superintendent.
Sec.
1231. (1) The Except as
otherwise provided in subsection
(5), the board of a school district shall hire and contract with
qualified teachers. Contracts with teachers shall be in writing and
signed on behalf of the school district by a majority of the board,
by the president and secretary of the board, or by the
superintendent of schools or an authorized representative of the
board. The contracts shall specify the wages agreed upon.
(2) A teacher's contract shall be filed with the secretary of
the board and a duplicate copy of the contract shall be furnished
to the teacher.
(3) Except as otherwise provided under this act, a contract
with a teacher is not valid unless the person holds a valid
teaching certificate at the time the contractual period begins. A
contract shall terminate if the certificate expires by limitation
and is not renewed immediately or if it is suspended or revoked by
proper legal authority.
(4) The board of a school district, after a teacher has been
employed at least 2 consecutive years by the board, may enter into
a continuing contract with a certificated teacher.
(5) Subject to subsection (6), the school board of a school
district that is a community district may employ qualified teachers
and other qualified instructional personnel at a public school that
formerly operated as an achievement school as necessary to carry
out the purposes of the community district.
(6) Notwithstanding any provision of law to the contrary, for
a period of 24 months after termination of an interlocal agreement
described in section 395 or until June 30, 2018, whichever is
earlier, the terms and conditions of a contract for or employment
of individuals previously contracted for or employed at a school
that formerly operated as an achievement school shall be the same
as those terms and conditions that applied to the individuals
before termination of the interlocal agreement.
(7) (5)
As used in this section: ,
"teacher"
(a) "Achievement school" means a public school operated or
authorized by a public body corporate created under an interlocal
agreement between a school district and state public university.
(b) "Teacher" does not include a substitute teacher.
Sec. 1284c. The governing body for a public school that
operates a year-round program or operates as a year-round school
may designate a date after May 31 and before the first Monday in
September as the end of the school year for the public school. A
date adopted by the governing body of a public school under this
section shall be the end of the school year for the public school
for purposes of this act and other laws of this state.
Sec. 1351a. (1) Beginning with bonds issued after May 1, 1994,
a school district, including, but not limited to, a school district
that is a community district or a qualifying school district, shall
not borrow money and issue bonds of the district under section
1351(1). However, a school district, including, but not limited to,
a school district that is a community district, may borrow money
and issue bonds of the district to defray all or a part of the cost
of purchasing, erecting, completing, remodeling, or equipping or
reequipping, except for equipping or reequipping for technology,
school buildings, including library buildings, structures, athletic
fields, playgrounds, or other facilities, or parts of or additions
to those facilities; furnishing or refurnishing new or remodeled
school buildings; acquiring, preparing, developing, or improving
sites, or parts of or additions to sites, for school buildings,
including library buildings, structures, athletic fields,
playgrounds, or other facilities; purchasing school buses;
acquiring, installing, or equipping or reequipping school buildings
for technology; or accomplishing a combination of the purposes set
forth in this subsection. Section 1351(2) to (4) applies to bonds
issued under this section.
(2) The proceeds of bonds issued under this section or under
section
11i of the state school aid act of 1979, 1979 PA 94, MCL
388.1611i, shall be used for capital expenditures and to pay costs
of bond issuance, and shall not be used for maintenance costs.
Except as otherwise provided in this subsection, a school district
that issues bonds under this section or under section 11i of the
state
school aid act of 1979, 1979 PA 94, MCL 388.1611i, shall have
an independent audit, using generally accepted accounting
principles, of its bonding activities under these sections
conducted within 120 days after completion of all projects financed
by the proceeds of the bonds and shall submit the audit report to
the department of treasury. For bonds issued under section 11i of
the
state school aid act of 1979, 1979 PA 94, MCL 388.1611i, the
independent audit required under this subsection may be conducted
and submitted with the annual report required under the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(3) A school district, including, but not limited to, a school
district that is a community district, shall not borrow money and
issue notes or bonds under this section to defray all or part of
the costs of any of the following:
(a) Upgrades to operating system or application software.
(b) Media, including diskettes, compact discs, video tapes,
and disks, unless used for the storage of initial operating system
software or customized application software included in the
definition of technology under this section.
(c) Training, consulting, maintenance, service contracts,
software upgrades, troubleshooting, or software support.
(4) A resident of a school district, including, but not
limited to, a school district that is a community district, has
standing to bring suit against the school district to enforce the
provisions of this section in a court having jurisdiction.
(5) As used in this section, "technology" means any of the
following:
(a) Hardware and communication devices that transmit, receive,
or compute information for pupil instructional purposes.
(b) The initial purchase of operating system software or
customized application software, or both, accompanying the purchase
of hardware and communication devices under subdivision (a).
(c) The costs of design and installation of the hardware,
communication devices, and initial operating system software or
customized application software authorized under this subsection.
Sec. 1356. (1) Notwithstanding section 1351, a school district
that
has an operating or projected operating deficit in excess of
$100.00
per membership pupil or that
has outstanding state aid
anticipation notes issued under section 1225 through the Michigan
finance authority may, with the approval of the state treasurer,
borrow
and issue its negotiable interest bearing notes or bonds for
the
purpose of funding eliminating
the deficit or refunding or
refinancing the state aid anticipation notes in accordance with
this section. Notes or bonds issued under this section shall be
known as school financing stability bonds. This authority is in
addition to and not in derogation of any power granted to a school
district
by any other provision of this act. However, except for
the
purpose of funding an operating or projected operating deficit
resulting
from a state tax tribunal order or a court order, a
school
district shall not initiate the procedures to borrow money
or
issue notes or bonds under this section after January 1, 1994.
(2)
Before a board of a school district issues notes or bonds
under this section, the board of the school district shall provide
by resolution for the submission of the following certified and
substantiated information to the department of treasury:
(a) There exists or will exist an operating deficit in the
school
district in excess of $100.00 per membership pupil.or the
school district has outstanding state aid anticipation notes issued
under section 1225 through the Michigan finance authority.
(b)
During If the school
district has a deficit, during or
before the fiscal year in which the application is made, the school
district
has made every available effort to offset the deficit. ,
including
submission of a question to the school electors of the
district
to increase the rate of ad valorem property taxes levied
in
the school district.
(c)
The school district has a plan approved by the school
board
state treasurer that outlines actions to be taken to balance
future expenditures with anticipated revenues and to repay any
bonds or notes issues under this section. The state treasurer may
recognize a deficit elimination plan or an enhanced deficit
elimination plan authorized under section 102 of the state school
aid act of 1979, MCL 388.1702, as satisfying the requirements for
an approved plan under this subdivision.
(3)
The existence of the an operating or projected operating
deficit, and
the amount of the operating or projected operating
deficit, and the amount necessary to refund or refinance any school
aid anticipation notes issued under section 1225 through the
Michigan finance authority shall be determined by the department of
treasury, using normal school accounting practices. If a financial
audit is required to arrive at a conclusive determination as to the
amount
of the a deficit, the state treasurer shall charge all
necessary expenses for the audit, including per diem and travel
expenses, to the school district, and the school district shall
make
payment to the state treasurer for these expenses. The A
determination by the department of treasury under this subsection
is
final and conclusive. as to the existence of an operating or
projected
operating deficit, the amount of the deficit, and the
amount
of the deficit per membership pupil.
(4) The notes or bonds may be issued in 1 or more series by
resolution adopted by the school board, which resolution in each
case shall make reference to the determination of the department of
treasury under subsection (3). The amount of a note or bond issued
shall
not exceed the amount of the operating deficit as shown by
the
determination.determined by
the department of treasury under
subsection (3).
(5)
The school district shall may
pledge as secondary security
for the repayment of principal and interest on notes or bonds
future
issued under this section
money from state school aid
payments ,
if any, paid or payable to
the school district, revenue
form taxes levied by the school district for school operating
purposes
under section 1211, and other funds tax revenue or money
of the district legally available as security. A pledge under this
subsection is valid and binding from the time the pledge is made. A
pledge under this subsection for the benefit of the holders of
notes or bonds or for the benefit of others is perfected without
delivery, recording, or notice. A school district may enter into an
agreement with the department of treasury or the Michigan finance
authority, or both, providing for the direct payment on behalf of
the school district to the Michigan finance authority or a
designated trustee of state school aid pledged for the repayment of
principal and interest on notes or bonds issued under this section
in the same manner as an agreement under section 17a(4) of the
state school aid act of 1979, MCL 388.1617a. A school district also
may provide for the deposit of revenues pledged for the payment of
notes or bonds issued under this section in a separate account to
pay principal and interest on notes or bonds, associated
administrative costs, and any other obligations issued by the
school district secured by the revenues. If the school district
enters into an agreement with a person with a duty or obligation to
collect for, pay, remit, disburse, or distribute to the school
district all or a portion of the revenues pledged by the school
district under this section, then the agreement must also provide
for the direct payment of the revenues that the person has a duty
or obligation to collect for, pay, remit, disburse, or distribute
to the school district, and that the school district has pledged
for payment of the notes or bonds issued under this section, to a
trustee to be deposited in a trust account and used only for paying
principal of and interest on the notes or bonds and related
administrative costs and any other obligations issued or owing by
the school district and secured by the revenues. If a school
district has entered into an agreement with a trustee for the
deposit of revenues pledged by a school district into a trust
account, then after the issuance of the notes or bonds and before
the deposit of the revenues of the school district into that trust
account, the revenues of the school district to be deposited are
held in trust for the benefit of the trustee and the notes or bonds
by any persons coming into possession of the revenues. The revenues
are held in trust for the benefit of the trustee and the notes or
bonds whether the school district directly collects the revenues,
another person collects the revenues, or any other person comes
into possession of the revenues, and the revenues remain subject to
the trust regardless of any subsequent transfer of the revenues
until the revenues are deposited into the trust account. If the
school district or other person holds a residual or other interest
in the revenues held in trust and to be deposited with the trustee
in the trust account, the interest is subordinate to a lien on the
revenues in favor of the trustee for the purpose of ensuring
delivery of the revenues to the trust account. The lien arises by
operation of law and without further act or notice of any kind at
the earliest time that the school district has or acquires any
rights in the revenues pledged under the agreement, is and will
remain paramount and superior to any other lien and interest of any
kind, and is perfected without delivery, recording, or notice. The
revenues held in trust and to be deposited into the trust account
under this subsection are exempt from being levied upon, taken,
sequestered, or applied toward paying the debts or liabilities of
the school district other than those expressly specified in the
agreement described in this subsection.
(6) The notes or bonds shall mature serially with annual
maturities
not more than 10 25 years from their date and shall bear
interest, payable annually or semiannually, at a rate or rates not
exceeding a rate determined by the school board in the school
district's borrowing resolution. The first principal installment on
the notes or bonds shall be due not more than 18 months from the
date
of the issuance of the notes or bonds. , and a principal
installment
on the notes shall not be less than 1/3 of the
principal
amount of a subsequent principal installment. The notes
or bonds may be made subject to redemption before maturity with or
without premium in a manner and at times provided in the resolution
authorizing the issuance of the notes or bonds.
(7) Notes or bonds issued under this section are valid and
binding general obligations of the school district, it being the
intent and purpose that the notes or bonds and the interest on the
notes or bonds be promptly paid when due from the first money
available to the school district not pledged for other indebtedness
and except to the extent that the use is restricted by the state
constitution of 1963 or the laws of the United States. If a school
district does not receive state school aid, the validity of a note
or bond issued under this section is not affected.
(8) Except as otherwise provided in this section, bonds and
notes issued under this section are subject to the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(9) The proceeds of the sale of notes or bonds authorized
under this section, after payment of the costs of issuance of the
notes
or bonds and interest on the notes or bonds, for a period not
to
exceed 9 months, shall be used
solely for the purpose of paying
necessary operating expenses of the school district, including the
payment of principal of and interest on notes or bonds of the
school district issued for operating purposes under this or any
other act.
(10)
A board of a school district that borrows pursuant to
subsections
(1) to (9) under this section
shall submit its budget
for
review and approval to the department of education. treasury.
The
department of education treasury
shall take necessary steps,
subject to the school district's contracts and statutory
obligations, to assure that the expenditures of a school district
that receives money under this part shall not exceed revenues on an
annual basis and that the school district maintains a balanced
budget.
Enacting section 1. Part 5a and sections 403, 404, 412, 416a,
420, 421, 449, and 485 of the revised school code, 1976 PA 451, MCL
380.371 to 380.376, 380.403, 380.404, 380.412, 380.416a, 380.420,
380.421, 380.449, and 380.485, are repealed.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 711 of the 98th Legislature is enacted into
law.