SB-0941, As Passed Senate, June 12, 2018

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 941

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending section 2 (MCL 388.1602), as amended by 2011 PA 62, and

by adding article V.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this article, ~~and~~ article IV, and article

V, the words and phrases defined in sections 3 to 6 have the

meanings ascribed to them in those sections.

ARTICLE V

Sec. 297. (1) For the fiscal year ending September 30, 2018,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

$100,000,000.00 from the talent investment fund created under

section 8a of the higher education loan authority act, 1975 PA 222,

MCL 390.1158a.

(2) The funds appropriated under this section for 2017-2018

are a work project appropriation, and any unexpended funds for

2017-2018 are carried forward into 2018-2019. The purpose of the

work project is to improve this state's talent pool by training

citizens for high-demand career fields, providing educational

supports, expanding career exploration opportunities, and

supporting innovative teachers and curriculum. The estimated

completion date of the work project is September 30, 2022.

(3) Grants awarded under this article with funds appropriated

under this section are subject to section 297j.

(4) This article shall be known and may be cited as the

"Marshall Plan for Talent".

Sec. 297a. (1) From the appropriation in section 297, there is

allocated for 2017-2018 an amount not to exceed $36,485,000.00 for

the expansion of K-12 education programs that focus on creating

competencies and earning credentials in high-demand fields.

(2) Subject to section 297k, from the allocation in subsection

(1), there is allocated an amount not to exceed $29,935,000.00 for

competitive grants to districts and intermediate districts that are

members of and apply on behalf of a talent consortium, in a form

and manner prescribed by the department under section 297i for the

purpose of expanding or creating pupil experiences that result in

competencies or credentials, or both, in high-demand fields. An

application for a grant under this subsection must include a

commitment to adopt the principles of a competency-based

instructional model.

(3) Funds received under this section shall be used by members

of the talent consortium for any of the following:

(a) Stipends for industry mentors to assist in teaching

classes in high-demand fields.

(b) Testing or project fees on behalf of pupils for the

purpose of earning credentials in high-demand fields.

capacity to teach high-demand skills. Grants awarded for this

purpose shall not exceed $5,000.00 per teacher.

(d) The hiring of full-time staff to create or expand a

program in a high-demand field. In order to use funds for this

purpose, the applicant must commit to continuing to provide the

program for at least an additional 3 years following the final

disbursement of funds. The total amount of grants awarded for the

purpose under this subdivision must not exceed $7,000,000.00. An

applicant shall not receive more than 1 grant for the purposes

under this subdivision.

(e) The creation of new curriculum, which may include, but is

not limited to, professional development, materials, lesson plans,

pupil projects, and other items needed in a high-demand field that

lacks sufficient curricula, as determined by the department. A

curriculum created using funds allocated under this section must

meet all of the following:

(i) Is made open-source to other districts across this state,

to the extent practicable.

(ii) Is developed with the direct and meaningful input of at

least 1 employer who is party to a talent consortium.

(iii) Utilizes the principles of competency-based learning.

(iv) Leads to a credential.

(f) To assist certificated teachers to earn new endorsements

in areas of high-demand critical shortage through a competency-

based residency model. Grants awarded for the purposes under this

subdivision must not exceed $8,000.00 per teacher and must be used

to pay the costs of a teacher's participation in a teacher

preparation program that collaborates with the department to

develop endorsement programs that cost no more than $8,000.00 for a

teacher or a district and that assess a teacher's mastery of

standards in a competency-based model.

(4) At least $2,000,000.00 of the funds appropriated under

subsection (1) must be used for competitive grants to districts

that are members of a talent consortium and that seek to convert an

entire school or district to a competency-based learning model.

Applications under this section must include all of the following:

(a) An educational model that allows the use of multiple and

innovative methods to determine pupils' achievement of grade-level

competencies and credit under the Michigan merit curriculum.

(b) Curriculum that allows for a majority of instructional

time to be spent on pupil-driven projects that target academic

skills and assist pupils in achieving 21st century skills such as

leadership, teamwork, problem solving, and communication.

higher education, or both, to provide contextualized learning

opportunities that emphasize attainment of competencies that

include application and creation of knowledge, along with the

development of work-ready skills.

(d) A plan for the transition away from a grade-level system

of pupil promotion to a competency-based system of pupil promotion.

This plan must include messaging to parents describing the benefits

of, and steps taken to implement, a competency-based instructional

model.

(e) A plan for a scope and timeline of professional

development for school instructional and administrative staff.

(f) A commitment to maintain participation in statewide

assessment and accountability systems for pupils being served by

programs funded under this section.

(g) A description of how the applicant will be an ambassador

for competency-based learning, including a commitment to mentor

other districts that wish to convert to a competency-based

instructional model.

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

for 2017-2018 an amount not to exceed $1,100,000.00 to the

department of technology, management, and budget to support

critical cybersecurity training and infrastructure programs, as

approved by this state's information technology governance council.

Funding allocated under this subsection must be used to expand the

Michigan high school cyber challenge program, as approved by the

department of technology, management, and budget. The expansion

must include, but is not limited to, both of the following:

(a) An open professional credentialing or micro-credentialing

process, or both, for any pupil in grades 9 to 12 who demonstrates

mastery of industry-recognized cybersecurity skills.

(b) Collaboration with other cybersecurity programs to ensure

alignment of coach, mentor, and educator skills.

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

for 2017-2018 an amount not to exceed $450,000.00 to the department

for statewide supports for competency-based learning, including,

but not limited to, the necessary capacity-building infrastructure,

tools, transcripts, and reporting mechanisms to support the

implementation of competency-based education models in districts

and consortia of districts receiving funding under subsection (4)

with the goal of offering these tools statewide.

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

allocated an amount not to exceed $1,000,000.00 to the department

for providing technical assistance to districts to help districts

integrate the Michigan merit curriculum into competency-based

programs, including career and technical education programs.

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

allocated for 2017-2018 an amount not to exceed $4,000,000.00 for

an innovative educator program. Funds shall be used to support

educators who possess specialized skills and use those skills to

deploy innovative instructional programs for the purposes of

replication, expansion, and dissemination across this state. All of

the following apply to the innovative educator program:

(a) Beginning in the 2017-2018 school year, the department

shall develop a process for selecting innovative educators under

this section.

(b) The governing body of each district may nominate 1

educator to the intermediate district in which the district is

located for appointment to the innovative educator corps, according

to the timelines established by the department. An individual must

meet all of the following to be nominated under this subdivision:

(i) Have demonstrated documented pupil academic achievement in

the innovative program or the creation of pupil talent portfolios

in high-demand fields.

(ii) Be recommended by, at least, peers, pupils,

administrators, parents, and local community partners.

(iii) Have demonstrated successful implementation of

innovative instructional methodology in preparing pupils for 21st

century careers.

(iv) Exemplify the passion, energy, and professionalism of the

teaching profession.

availability of funds, the department shall review the nominations

submitted under subdivision (b) and select up to 100 educators from

the submitted nominations for appointment to the innovative

educator corps for a term of 3 years. The department shall select

educators based on at least both of the following criteria:

(i) Preference for educators with demonstrated community,

higher education, or business partnerships.

(ii) Preference for educators who utilize a competency-based

instructional model, utilize a project-based instructional model,

have had success in the turnaround of a low-performing school, or

have had success in a balanced or year-round calendar.

(d) If sufficient funding is available, each of the educators

selected by the department to serve in the innovative educator

corps under subdivision (c) shall receive a stipend in the amount

of $5,000.00 per year for up to 3 years. At least 1 time per year,

the department shall review the qualification of educators to

ensure the eligibility requirements, and other requirements

established by the department, are still being met. If sufficient

funding is available, an additional $5,000.00 per educator will be

awarded annually to the intermediate district for purposes of

replication, expansion, and dissemination of the innovative

strategies and program. The selected educator shall develop a plan

with the intermediate district that details how the funds will be

spent to support the duties of the selected educator under this

subsection. These funds may be used to cover costs, including, but

not limited to, the following:

(i) Pupil and educator travel.

(ii) Substitute educators.

(iii) Program materials.

(iv) Training materials.

(v) Pupil supplies and materials.

(9) The superintendent of public instruction shall promulgate

rules to implement this section.

Sec. 297b. (1) From the appropriation in section 297, there is

allocated for 2017-2018 an amount not to exceed $18,500,000.00 for

competitive grants to districts and intermediate districts for the

talent equipment program described in this section. Grants awarded

under this section are subject to section 297k.

(2) A district or intermediate district that is a member of a

talent consortium is eligible to apply for a grant under this

section, in a form and manner prescribed by the department under

section 297i.

(3) Grant funds awarded under this section must be used to

purchase or lease equipment for use in educational programs that

build a more qualified and skilled workforce in emerging and high-

demand fields and result in competencies or credentials in those

fields.

(4) An application for a grant under this section must include

a commitment to provide matching funds of at least 25% of the

amount of the grant award and include a description of how the

proposed capital infrastructure initiative will align with the

talent agreement defined in section 297h and provide increased

career opportunities for pupils and adult learners in high-demand

fields. Matching funds required under this subsection may be in-

kind.

Sec. 297c. (1) From the appropriation in section 297, there is

allocated for 2017-2018 an amount not to exceed $25,500,000.00 for

the Michigan talent pledge scholarship program administered by the

department of treasury.

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

for 2017-2018 an amount not to exceed $20,000,000.00 to be used for

the purpose of assisting low-income individuals with the cost of

obtaining a qualifying degree or credential in high-demand fields.

The funds must be used to fund scholarships and stipends for 3

cohorts of eligible individuals over 4 years. Awards shall be in

the following amounts:

(a) $750.00 scholarship award for individuals enrolled in an

eligible program that leads to a 1-year credential, in addition to

a $250.00 stipend paid to the individual.

(b) $500.00 scholarship award each year for 2 years for

individuals enrolled in an eligible program that leads to a 2-year

credential, in addition to a $250.00 stipend each year paid to the

individual.

(3) To be eligible for a scholarship grant under this section,

an individual shall meet all of the following:

(a) Except for an individual under the age of 18, possess a

high school diploma, recognized equivalency, or recognized

equivalency certificate.

(b) Be a resident of this state and a citizen of the United

States of America.

annually.

(d) Meet the same income qualification requirements as the

Healthy Michigan plan under section 107 of the social welfare act,

1939 PA 280, MCL 400.107, at the time of application.

(e) Be enrolled full-time in a qualifying program at an

eligible postsecondary institution.

(f) Apply for a grant in a form and manner prescribed by the

department of treasury.

(g) Maintain a cumulative grade point average of at least 2.5,

if the institution utilizes a standard grading model, or, if the

institution utilizes a competency-based grading model during his or

her time enrolled in an eligible postsecondary institution, make

sufficient progress through the curriculum to complete the program.

(h) Is between the ages of 16 and 45 at the time of

application.

(4) A postsecondary institution is eligible under this section

if the postsecondary institution is a public or private nonprofit

college or university, junior college, community college, or

private training provider that grants degrees or certificates and

is located in this state and provides proof, in a form and manner

prescribed by the department of treasury, in cooperation with the

department of talent and economic development, that it has

implemented a talent guarantee for the relevant qualifying program

under subsection (5). For the purposes of this subsection, "talent

guarantee" means a process by which the institution will provide

relevant training in the relevant field at no cost to a graduate

who successfully completes a qualifying program under subsection

(5), if the graduate is unable to find or keep a job in the

relevant field at a relevant level due to a lack of technical

skills. Institutions are encouraged to work with their local

Michigan works agencies to implement this guarantee.

(5) A program must meet all of the following to be a

qualifying program under this section:

(a) Completion of the program must result in a credential in a

qualifying high-demand field.

(b) The program is intended to be completed in no more than 1

year for an award under subsection (2)(a), or no more than 2 years

for an award under subsection (2)(b).

model.

(6) The department of treasury shall develop an application

and eligibility determination process that will provide the highest

level of participation and ensure that all requirements of the

program are met.

(7) The department of treasury shall provide payment on behalf

of an individual eligible under subsection (3) for the scholarship

award amounts described in subsection (2)(a) and (b). The

department of treasury shall reimburse the eligible postsecondary

institution no later than 30 days after the start of the fiscal

year. Subject to subsection (8), the department of treasury shall

only accept standard per-credit hour tuition billings and shall

reject billings that are excessive or outside of the guidelines for

the type of educational institution. For the stipend amounts under

subsection (2)(a) and (b), the department of treasury shall

collaborate with eligible postsecondary institutions to ensure that

a prorated amount of the stipend is forwarded to the student

following each regular meeting with a coach, mentor, or counselor

as an incentive for the student to meet with the coach, mentor, or

counselor.

(8) For the department of treasury to pay a scholarship award

on behalf of an individual eligible under subsection (3), at least

1 of the following must apply:

(a) For individuals enrolled at a community college in this

state, the individual is charged the current in-district tuition

and mandatory fees.

(b) For individuals enrolled at a public university in this

state, the individual is charged the lower division resident

tuition and mandatory fees for the current year.

degree-granting college or university in this state or a federal

tribally controlled community college in this state, the mandatory

fees and per-credit payment charged to the individual do not exceed

the average community college in-district per-credit tuition rate

as reported on August 1 of the immediately preceding academic year.

(9) The department of treasury shall collaborate with the

center to use the P-20 longitudinal data system to report the

number of students who are engaged in and have completed a program

using an award granted under this section.

(10) From the funds allocated under subsection (1), there is

allocated for 2017-2018 an amount not to exceed $2,440,000.00 for

grants to community colleges, universities, or private nonprofit

colleges for the purpose of providing coaches to students who

receive scholarship awards under this section. The coaches funded

under this subsection shall provide intense mentoring and advising

to recipients of scholarships under this section, focusing on

ensuring that students complete programs for which they receive

scholarships under this section. Grants awarded under this

subsection must be made to eligible postsecondary institutions in

the amount not to exceed $40,000.00 per coach.

(11) From the funds allocated under subsection (1), there is

an amount allocated for 2017-2018 not to exceed $2,300,000.00 to be

used for grants to districts for stipends for students and bonus

payments to districts that are parties to a talent consortium and

whose students successfully earn an in-demand workforce certificate

in a high-demand field. For the purposes of funding under this

subsection, a workforce certificate must, as determined by the

department of talent and economic development, be entry-level or

above, recognized by statewide industry, and in a high-demand,

high-salary, high-upward mobility career. Grants awarded under this

subsection must be in the amount of $500.00 per student who

successfully completes an in-demand credential in a high-demand

field in calendar year 2019 or 2020. A grant awarded under this

subsection shall be distributed in an amount of $250.00 to the

student and in an amount of $250.00 to the district. A district

seeking a grant under this subsection shall apply in a form and

manner prescribed by the department of treasury. An application for

a grant under this subsection must describe the credentials that

students will earn using funds awarded under this subsection. The

department of treasury shall work with the department of talent and

economic development to award grants under this subsection and

notify applicants of the decision to award a grant not later than

30 days after receiving an application.

(12) The following do not qualify as in-demand credentials in

a high-demand field for the purposes of subsection (11):

(a) A high school diploma or equivalent.

(b) An advanced placement test other than physics c:

electricity and magnetism, physics c: mechanics, computer science

a, or computer science principles.

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

amount allocated not to exceed $760,000.00 to the department of

treasury for costs related to the administration of this section.

Sec. 297d. (1) From the appropriation in section 297, there is

allocated for 2017-2018 an amount not to exceed $14,500,000.00 for

competitive grants to districts and intermediate districts that are

members of a talent consortium for the Michigan career development

navigator program to increase the number of college- and career-

ready pupils with an emphasis on increasing the number of citizens

working in high-demand fields. A district or intermediate district

that is a member of a talent consortium is eligible to apply for a

grant under this section, in a form and manner prescribed by the

department under section 297i. Grants awarded under this section

are subject to section 297k.

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

for 2017-2018 an amount not to exceed $10,500,000.00 for

competitive grants to districts and intermediate districts that are

members of a talent consortium to hire additional staff for the

purposes described in this section. Districts and intermediate

districts that use grant funds awarded under this subsection to

hire staff for newly created positions shall commit to retain the

positions for at least 2 years after the end of the 3-year grant

period. Grant funds awarded under this section must not be used to

supplant existing counseling services within a district or

intermediate district.

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

to the department of talent and economic development for 2017-2018

an amount not to exceed $4,000,000.00 for the expansion of a web-

based career preparation platform.

(4) A recipient of a grant under this section shall use staff

hired with funds under this section for career counseling

activities such as the creation of robust education development

plans, the creation of talent portfolios for pupils, identifying

work-based learning opportunities, and identifying career

exploration activities such as internships, apprenticeships, and

job shadows.

Sec. 297e. (1) From the appropriation in section 297, there is

allocated for 2017-2018 an amount not to exceed $3,515,000.00 to

the department of talent and economic development for a statewide

talent marketing strategy.

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

for 2017-2018 an amount not to exceed $2,765,000.00 for a talent

marketing campaign designed to increase the number of individuals

in this state entering high-demand fields, recruit new and

experienced professionals in high-demand fields to this state, and

retain current graduates in high-demand fields.

(3) From the allocation under subsection (1), there is

allocated for 2017-2018 an amount not to exceed $750,000.00 for an

expansion of the existing Going pro campaign.

Sec. 297g. From the allocation in section 297, there is

allocated for 2017-2018 an amount not to exceed $1,500,000.00 to

the department for costs associated with the administration of this

article.

Sec. 297h. As used in this article:

(a) "Competency-based education" and "competency-based

instructional model" mean an approach to teaching and pupil

learning where pupils are evaluated on individual competencies, and

only when they master them, they move on to more advanced

competencies. For the purposes of this article, competency-based

instructional programs must meet at least all of the following:

(i) The majority of instructional time is spent on pupil-

driven projects in multiple subject areas as well as 21st century

skills such as leadership, teamwork, problem solving, and

communication. Instructional time may take place outside of the

traditional school calendar.

(ii) Includes an innovative partnership with employers or

postsecondary institutions, or both, as appropriate, to provide

contextualized learning opportunities that emphasize attainment of

competencies that include application and creation of knowledge

along with the development of work-ready skills.

(iii) Includes the use of multiple and innovative methods to

determine pupil achievement of competencies in a subject area or

combined subject areas such as public presentations, submission of

research papers, attaining marketable workforce credentials, and

mentoring other pupils.

(b) "Credential" means proof of competency in a high-demand,

high-salary, and high-upward mobility field or any other

designation determined to be in high demand. A credential must be

stackable, which means that it can lead to a more advanced

recognized credential. A high school diploma is not a credential.

manufacturing, engineering, information technology and computer

science, machine learning and artificial intelligence, mobility,

health care, and business.

(d) "Talent agreement" means an agreement that is signed by

the members of a talent consortium and is approved by the

department of talent and economic development and the department. A

talent agreement must include at least all of the following:

(i) A description of how the members will create a seamless,

competency-based education model that results in pupils acquiring

high-demand skills and credentials.

(ii) A formalized process by which the talent consortium will

periodically review and update employer needs and which skills and

credentials are in demand, including, but not limited to, a 2-, 5-,

and 20-year talent skills projection.

(iii) A detailed plan on how curriculum and instruction will

be changed to address the changing employer and talent skills

needs.

(iv) If a postsecondary institution is a member of a talent

consortium, how the postsecondary institution will reduce barriers

as pupils transition through phases of their education from K-12

education to postsecondary education and into the workforce. These

efforts may include, but are not limited to, the following:

(A) Dual enrollment practices.

(B) The acceptance of talent portfolios for college

admissions.

(D) The creation of career pathways beginning in middle school

and high school.

(E) In-classroom mentoring or career counseling.

(F) Prehiring agreements in which employers promise to hire

graduates of a program.

(v) How any grant dollars received will further the goals of

the consortium.

(vi) How members will continue to collaborate after a grant is

awarded.

(e) "Talent consortium" means a consortium of entities that

enter into a talent agreement for the purposes of funding under

this article. A talent consortium must include at least 1 district

or intermediate district and at least 2 employers or organizations

representing employers. However, a talent consortium with only 1

district that is a tier 3 district is not required to include more

than 1 employer or organization representing employers. A talent

consortium may include a private training provider that grants

degrees or certificates and is located in this state, community

colleges, colleges, or universities. A talent consortium is not

bound by size or geographic locations in this state.

(f) "Tier 1 district" means a district with a pupil membership

in 2017-2018 of at least 3,800.

(g) "Tier 2 district" means a district with a pupil membership

in 2017-2018 of at least 1,400 but less than 3,800.

(h) "Tier 3 district" means a district with a pupil membership

in 2017-2018 of less than 1,400.

Sec. 297i. (1) The department, in consultation with the

department of talent and economic development, shall develop a

consolidated grant application for grants under sections 297a,

297b, and 297d. The department, in consultation with the department

of talent and economic development, may develop additional

consolidated applications for grants under this article. A

consolidated application developed under this subsection must

require an applicant to identify the grant or grants for which the

applicant is applying and the amount of the award the applicant is

requesting for each grant.

(2) The department shall begin accepting consolidated

applications for grants under this article not later than March 31,

2019.

(3) Not later than June 1, 2019, the department, in

consultation with the department of talent and economic

development, shall award at least 50% of the funds allocated under

sections 297a, 297b, and 297d.

Sec. 297j. (1) A tier 1 district may apply for grant funding

under this article in an amount not to exceed $500,000.00. A tier 2

district may apply for grant funding under this article in an

amount not to exceed $300,000.00. A tier 3 district may apply for

grant funding under this article in an amount not to exceed

$200,000.00.

(2) A district may apply for a grant under this article with 1

or more other districts. The sum of the pupil memberships of the

districts applying for a combined grant must be used to determine

the tier level for grant allocation, and each district in the

combined grant application is eligible for that tier amount.

(3) An intermediate district may apply for a grant under this

article for its own program, or on behalf of 1 or more of its

constituent districts. If an intermediate district applies for a

grant under this article on behalf of 1 or more of its constituent

districts, the sum of the pupil memberships of the constituent

districts in the grant application shall determine the tier level

for grant allocation for each constituent district included in the

application. An intermediate district that applies for a grant for

its own program is considered a tier 1 district.

Sec. 297k. (1) The department shall ensure that grant funds

awarded under sections 297a, 297b, and 297d are awarded as follows:

(a) 50% to tier 1 districts.

(b) 30% to tier 2 districts.

(2) If a district from 1 tier applies for a grant with 1 or

more other districts in a combined application, or if an

intermediate district submits a grant application on behalf of more

than 1 of its constituent districts, and the combined application

results in a district from 1 tier receiving a grant award that is

higher than if a combined application had not been submitted, the

portion of the grant award that exceeds what the district would

have received in the absence of a combined application must be

applied to the tier percentages under subsection (1) in the same

proportion that the pupil membership of that district represents of

the total pupil memberships in the combined grant application.

Sec. 297l. Each recipient of a grant under this article shall

provide a report to the department not later than June 30, 2020

that identifies the amount of the grant received, how the grant was

spent, the number of pupils reached with grant funds, and other

information as required by the department.

Enacting section 1. In accordance with section 30 of article

IX of the state constitution of 1963, total state spending from

state sources on state school aid under article V of the state

school aid act of 1979, 1979 PA 94, MCL 388.1897 to 388.1897n, as

added by this amendatory act for fiscal year 2017-2018 is estimated

at $100,000,000.00 and state appropriations for school aid to be

paid to local units of government for fiscal year 2017-2018 are

estimated at $61,235,000.00.