HB-5579, As Passed House, April 24, 2018

SUBSTITUTE FOR

HOUSE BILL NO. 5579

(as amended April 24, 2018)

[A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 11, 11a, 11j, 11k, 11m, 11s, 15, 18, 19,

20, 20d, 20f, 21f, 21h, 21j, 22a, 22b, 22d, 22m, 22n, 24, 24a, 24c,

25e, 25f, 25g, 26a, 26b, 26c, 31a, 31b, 31d, 31f, 31j, 32d, 32p,

32q, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 56, 61a, 61b,

61c, 62, 64b, 64d, 65, 67, 67a, 74, 81, 94, 94a, 95b, 98, 99h, 99k,

99r, 99s, 99t, 99u, 102d, 104, 104c, 104d, 104e, 107, 147, 147a,

147b, 147c, 147e, 152a, 152b, 166b, 201, 201a, 206, 207a, 207b,

207c, 209, 210b, 217, 225, 226, 229, 229a, 230, 236, 236a, 236b,

236c, 241, 251, 252, 256, 263, 264, 265, 265a, 267, 268, 269, 270,

274, 274c, 274d, 276, 277, 278, 279, 280, 281, 282, and 289 (MCL

388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m,

388.1611s, 388.1615, 388.1618, 388.1619, 388.1620, 388.1620d,

388.1620f, 388.1621f, 388.1621h, 388.1621j, 388.1622a, 388.1622b,

House Bill No. 5579 as amended April 24, 2018

388.1622d, 388.1622m, 388.1622n, 388.1624, 388.1624a, 388.1624c,

388.1625e, 388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c,

388.1631a, 388.1631b, 388.1631d, 388.1631f, 388.1631j, 388.1632d,

388.1632p, 388.1632q, 388.1635a, 388.1639, 388.1639a, 388.1641,

388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1654b,

388.1656, 388.1661a, 388.1661b, 388.1661c, 388.1662, 388.1664b,

388.1664d, 388.1665, 388.1667, 388.1667a, 388.1674, 388.1681,

388.1694, 388.1694a, 388.1695b, 388.1698, 388.1699h, 388.1699k,

388.1699r, 388.1699s, 388.1699t, 388.1699u, 388.1702d, 388.1704,

388.1704c, 388.1704d, 388.1704e, 388.1707, 388.1747, 388.1747a,

388.1747b, 388.1747c, 388.1747e, 388.1752a, 388.1752b, 388.1766b,

388.1801, 388.1801a, 388.1806, 388.1807a, 388.1807b, 388.1807c,

388.1809, 388.1810b, 388.1817, 388.1825, 388.1826, 388.1829,

388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b, 388.1836c,

388.1841, 388.1851, 388.1852, 388.1856, 388.1863, 388.1864,

388.1865, 388.1865a, 388.1867, 388.1868, 388.1869, 388.1870,

388.1874, 388.1874c, 388.1874d, 388.1876, 388.1877, 388.1878,

388.1879, 388.1880, 388.1881, 388.1882, and 388.1889), sections 6,

11a, 11j, 11k, 11m, 11s, 15, 18, 20, 20d, 20f, 22a, 22b, 22d, 24,

24a, 24c, 25f, 25g, 26a, 26b, 26c, 31b, 31d, 31f, 32p, 32q, 39,

39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 56, 61a, 61b, 62, 64b, 65,

67, 74, 81, 94, 94a, 98, 99s, 104, 104d, 147, 147b, 147c, 152a,

152b, 201, 201a, 206, 207a, 207b, 207c, 209, 210b, 217, 225, 226,

229, 229a, 230, 236, 236a, 236b, 236c, 241, 251, 252, 256, 263,

264, 265, 265a, 267, 268, 269, 270, 274, 274c, 276, 277, 278, 279,

280, 281, and 282 as amended and sections 21h, 21j, 22m, 22n, 99k,

147e, and 274d as added by 2017 PA 108, sections 11, 21f, 25e, 31a,

House Bill No. 5579 as amended April 24, 2018

31j, 32d, 35a, 61c, 64d, 67a, 95b, 99h, 99r, 99t, 102d, 104c, 107,

147a, and 166b as amended and sections 99u and 104e as added by

2017 PA 143, section 19 as amended by 2016 PA 533, and section 289

as amended by 2013 PA 60, and by adding sections 17c, 22o, 25h,

35b, 54d, 68, 68a, 68b, 68c, 68d, 110, 167b, 210f, 215, 265b, 265c, 265d,

274e, 274f, and 292; and to repeal acts and parts of acts.]

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 6. (1) "Center program" means a program operated by a

district or by an intermediate district for special education

pupils from several districts in programs for pupils with autism

spectrum disorder, pupils with severe cognitive impairment, pupils

with moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

district or shall serve several districts with less than 50% of the

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

disabilities education act, 20 USC 1412, may be considered center

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult education

participants, in the district for the immediately preceding school

year, adjusted for those pupils who have transferred into or out of

the district or high school, who leave high school with a diploma

or other credential of equal status.

(4) "Membership", except as otherwise provided in this

article, means for a district, a public school academy, or an

intermediate district the sum of the product of .90 times the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the pupil membership

count day for the current school year, plus the product of .10

times the final audited count from the supplemental count day for

the immediately preceding school year. A district's, public school

academy's, or intermediate district's membership shall be adjusted

as provided under section 25e for pupils who enroll after the pupil

membership count day in a strict discipline academy operating under

sections 1311b to 1311m of the revised school code, MCL 380.1311b

to 380.1311m. However, for a district that is a community district,

"membership" means the sum of the product of .90 times the number

of full-time equated pupils in grades K to 12 actually enrolled and

in regular daily attendance in the community district on the pupil

membership count day for the current school year, plus the product

of .10 times the sum of the final audited count from the

supplemental count day of pupils in grades K to 12 actually

enrolled and in regular daily attendance in the community district

for the immediately preceding school year plus the final audited

count from the supplemental count day of pupils in grades K to 12

actually enrolled and in regular daily attendance in the education

achievement system for the immediately preceding school year. All

pupil counts used in this subsection are as determined by the

department and calculated by adding the number of pupils registered

for attendance plus pupils received by transfer and minus pupils

lost as defined by rules promulgated by the superintendent, and as

corrected by a subsequent department audit. The amount of the

foundation allowance for a pupil in membership is determined under

section 20. In making the calculation of membership, all of the

following, as applicable, apply to determining the membership of a

district, a public school academy, or an intermediate district:

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

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan Schools for the Deaf and

Blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a career and technical education

program supported by a millage levied over an area larger than a

single district or in an area vocational-technical education

program established pursuant to section 690 of the revised school

code, MCL 380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

(h) For the purposes of this section and section 6a, for a

cyber school, as defined in section 551 of the revised school code,

MCL 380.551, that is in compliance with section 553a of the revised

school code, MCL 380.553a, a pupil's participation in the cyber

school's educational program is considered regular daily

attendance, and for a district or public school academy, a pupil's

participation in a virtual course as defined in section 21f is

considered regular daily attendance.

(i) For a new district or public school academy beginning its

operation after December 31, 1994, membership for the first 2 full

or partial fiscal years of operation shall be determined as

follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) For an extended school year program approved by the

superintendent, a pupil enrolled, but not scheduled to be in

regular daily attendance, on a pupil membership count day, shall be

counted in membership.

(l) To be counted in membership, a pupil shall meet the

minimum age requirement to be eligible to attend school under

section 1147 of the revised school code, MCL 380.1147, or shall be

enrolled under subsection (3) of that section, and shall be less

than 20 years of age on September 1 of the school year except as

follows:

(i) A special education pupil who is enrolled and receiving

instruction in a special education program or service approved by

the department, who does not have a high school diploma, and who is

less than 26 years of age as of September 1 of the current school

year shall be counted in membership.

(ii) A pupil who is determined by the department to meet all

of the following may be counted in membership:

(A) Is enrolled in a public school academy or an alternative

education high school diploma program, that is primarily focused on

educating pupils with extreme barriers to education, such as being

homeless as defined under 42 USC 11302.

(B) Had dropped out of school.

current school year.

(iii) If a child does not meet the minimum age requirement to

be eligible to attend school for that school year under section

1147 of the revised school code, MCL 380.1147, but will be 5 years

of age not later than December 1 of that school year, the district

may count the child in membership for that school year if the

parent or legal guardian has notified the district in writing that

he or she intends to enroll the child in kindergarten for that

school year.

(m) An individual who has achieved a high school diploma shall

not be counted in membership. An individual who has achieved a high

school equivalency certificate shall not be counted in membership

unless the individual is a student with a disability as defined in

R 340.1702 of the Michigan Administrative Code. An individual

participating in a job training program funded under former section

107a or a jobs program funded under former section 107b,

administered by the department of talent and economic development,

or participating in any successor of either of those 2 programs,

shall not be counted in membership.

(n) If a pupil counted in membership in a public school

academy is also educated by a district or intermediate district as

part of a cooperative education program, the pupil shall be counted

in membership only in the public school academy unless a written

agreement signed by all parties designates the party or parties in

which the pupil shall be counted in membership, and the

instructional time scheduled for the pupil in the district or

intermediate district shall be included in the full-time equated

membership determination under subdivision (q) and section 101.

However, for pupils receiving instruction in both a public school

academy and in a district or intermediate district but not as a

part of a cooperative education program, the following apply:

(i) If the public school academy provides instruction for at

least 1/2 of the class hours required under section 101, the public

school academy shall receive as its prorated share of the full-time

equated membership for each of those pupils an amount equal to 1

times the product of the hours of instruction the public school

academy provides divided by the number of hours required under

section 101 for full-time equivalency, and the remainder of the

full-time membership for each of those pupils shall be allocated to

the district or intermediate district providing the remainder of

the hours of instruction.

(ii) If the public school academy provides instruction for

less than 1/2 of the class hours required under section 101, the

district or intermediate district providing the remainder of the

hours of instruction shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the

district or intermediate district provides divided by the number of

hours required under section 101 for full-time equivalency, and the

remainder of the full-time membership for each of those pupils

shall be allocated to the public school academy.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section 101. In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

considered to be less than a full-time equated pupil solely because

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

(r) Full-time equated memberships for pupils in kindergarten

shall be determined by dividing the number of instructional hours

scheduled and provided per year per kindergarten pupil by the same

number used for determining full-time equated memberships for

pupils in grades 1 to 12. However, to the extent allowable under

federal law, for a district or public school academy that provides

evidence satisfactory to the department that it used federal title

I money in the 2 immediately preceding school fiscal years to fund

full-time kindergarten, full-time equated memberships for pupils in

kindergarten shall be determined by dividing the number of class

hours scheduled and provided per year per kindergarten pupil by a

number equal to 1/2 the number used for determining full-time

equated memberships for pupils in grades 1 to 12. The change in the

counting of full-time equated memberships for pupils in

kindergarten that took effect for 2012-2013 is not a mandate.

(s) For a district or a public school academy that has pupils

enrolled in a grade level that was not offered by the district or

public school academy in the immediately preceding school year, the

number of pupils enrolled in that grade level to be counted in

membership is the average of the number of those pupils enrolled

and in regular daily attendance on the pupil membership count day

and the supplemental count day of the current school year, as

determined by the department. Membership shall be calculated by

adding the number of pupils registered for attendance in that grade

level on the pupil membership count day plus pupils received by

transfer and minus pupils lost as defined by rules promulgated by

the superintendent, and as corrected by subsequent department

audit, plus the final audited count from the supplemental count day

for the current school year, and dividing that sum by 2.

(t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours required under section 101 for full-time equivalency. For the

purposes of this subdivision, a district shall be considered to be

providing appropriate instruction if all of the following are met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies that are comparable to those otherwise provided in the

district's alternative education program.

(iii) Course content is comparable to that in the district's

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

within 45 days after the pupil membership count day, the department

shall adjust the district's pupil count for the pupil membership

count day to include the pupil in the count.

(w) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .90 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .10 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(x) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and if the district does not

receive funding under section 22d(2), the district's membership

shall be considered to be the membership figure calculated under

this subdivision. If a district educates and counts in its

membership pupils in grades 9 to 12 who reside in a contiguous

district that does not operate grades 9 to 12 and if 1 or both of

the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

number of pupils per square mile for each of the districts for the

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

(ii) The district's actual membership for that fiscal year as

otherwise calculated under this subsection.

(y) Full-time equated memberships for special education pupils

who are not enrolled in kindergarten but are enrolled in a

classroom program under R 340.1754 of the Michigan Administrative

Code shall be determined by dividing the number of class hours

scheduled and provided per year by 450. Full-time equated

memberships for special education pupils who are not enrolled in

kindergarten but are receiving early childhood special education

services under R 340.1755 or R 340.1862 of the Michigan

Administrative Code shall be determined by dividing the number of

hours of service scheduled and provided per year per-pupil by 180.

(z) A pupil of a district that begins its school year after

Labor Day who is enrolled in an intermediate district program that

begins before Labor Day shall not be considered to be less than a

full-time pupil solely due to instructional time scheduled but not

attended by the pupil before Labor Day.

(aa) For the first year in which a pupil is counted in

membership on the pupil membership count day in a middle college

program, the membership is the average of the full-time equated

membership on the pupil membership count day and on the

supplemental count day for the current school year, as determined

by the department. If a pupil described in this subdivision was

counted in membership by the operating district on the immediately

preceding supplemental count day, the pupil shall be excluded from

the district's immediately preceding supplemental count for the

purposes of determining the district's membership.

(bb) A district or public school academy that educates a pupil

who attends a United States Olympic Education Center may count the

pupil in membership regardless of whether or not the pupil is a

resident of this state.

(cc) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148, shall be counted in the educating

district.

(dd) For a pupil enrolled in a dropout recovery program that

meets the requirements of section 23a, the pupil shall be counted

as 1/12 of a full-time equated membership for each month that the

district operating the program reports that the pupil was enrolled

in the program and was in full attendance. However, if the special

membership counting provisions under this subdivision and the

operation of the other membership counting provisions under this

subsection result in a pupil being counted as more than 1.0 FTE in

a fiscal year, the payment made for the pupil under sections 22a

and 22b shall not be based on more than 1.0 FTE for that pupil, and

any portion of an FTE for that pupil that exceeds 1.0 shall instead

be paid under section 25g. The district operating the program shall

report to the center the number of pupils who were enrolled in the

program and were in full attendance for a month not later than 30

days after the end of the month. A district shall not report a

pupil as being in full attendance for a month unless both of the

following are met:

(i) A personalized learning plan is in place on or before the

first school day of the month for the first month the pupil

participates in the program.

(ii) The pupil meets the district's definition under section

23a of satisfactory monthly progress for that month or, if the

pupil does not meet that definition of satisfactory monthly

progress for that month, the pupil did meet that definition of

satisfactory monthly progress in the immediately preceding month

and appropriate interventions are implemented within 10 school days

after it is determined that the pupil does not meet that definition

of satisfactory monthly progress.

(ee) A pupil participating in a virtual course under section

21f shall be counted in membership in the district enrolling the

pupil.

(ff) If a public school academy that is not in its first or

second year of operation closes at the end of a school year and

does not reopen for the next school year, the department shall

adjust the membership count of the district or other public school

academy in which a former pupil of the closed public school academy

enrolls and is in regular daily attendance for the next school year

to ensure that the district or other public school academy receives

the same amount of membership aid for the pupil as if the pupil

were counted in the district or other public school academy on the

supplemental count day of the preceding school year.

(gg) If a special education pupil is expelled under section

1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a, and is not in attendance on the pupil membership count

day because of the expulsion, and if the pupil remains enrolled in

the district and resumes regular daily attendance during that

school year, the district's membership shall be adjusted to count

the pupil in membership as if he or she had been in attendance on

the pupil membership count day.

(hh) A pupil enrolled in a community district shall be counted

in membership in the community district.

(ii) A part-time pupil enrolled in a nonpublic school in

grades K to 12 in accordance with section 166b shall not be counted

as more than 0.75 of a full-time equated membership.

(jj) A district that borders another state or a public school

academy that operates at least grades 9 to 12 and is located within

20 miles of a border with another state may count in membership a

pupil who is enrolled in a course at a college or university that

is located in the bordering state and within 20 miles of the border

with this state if all of the following are met:

(i) The pupil would meet the definition of an eligible student

under the postsecondary enrollment options act, 1996 PA 160, MCL

388.511 to 388.524, if the course were an eligible course under

that act.

(ii) The course in which the pupil is enrolled would meet the

definition of an eligible course under the postsecondary enrollment

options act, 1996 PA 160, MCL 388.511 to 388.524, if the course

were provided by an eligible postsecondary institution under that

act.

(iii) The department determines that the college or university

is an institution that, in the other state, fulfills a function

comparable to a state university or community college, as those

terms are defined in section 3 of the postsecondary enrollment

options act, 1996 PA 160, MCL 388.513, or is an independent

nonprofit degree-granting college or university.

(iv) The district or public school academy pays for a portion

of the pupil's tuition at the college or university in an amount

equal to the eligible charges that the district or public school

academy would pay to an eligible postsecondary institution under

the postsecondary enrollment options act, 1996 PA 160, MCL 388.511

to 388.524, as if the course were an eligible course under that

act.

(v) The district or public school academy awards high school

credit to a pupil who successfully completes a course as described

in this subdivision.

(kk) A pupil enrolled in a middle college program may be

counted for more than a total of 1.0 full-time equated membership

if the pupil is enrolled in more than the minimum number of

instructional days and hours required under section 101 and the

pupil is expected to complete the 5-year program with both a high

school diploma and at least 60 transferable college credits or is

expected to earn an associate's degree in fewer than 5 years.

(5) "Public school academy" means that term as defined in

section 5 of the revised school code, MCL 380.5.

(6) "Pupil" means an individual in membership in a public

school. A district must have the approval of the pupil's district

of residence to count the pupil in membership, except approval by

the pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades K to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90h, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(i) A pupil enrolled in the Michigan Virtual School, for the

pupil's enrollment in the Michigan Virtual School.

(j) A pupil who is the child of a person who works at the

district or who is the child of a person who worked at the district

as of the time the pupil first enrolled in the district but who no

longer works at the district due to a workforce reduction. As used

in this subdivision, "child" includes an adopted child, stepchild,

or legal ward.

(k) An expelled pupil who has been denied reinstatement by the

expelling district and is reinstated by another school board under

section 1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a.

(l) A pupil enrolled in a district other than the pupil's

district of residence in a middle college program if the pupil's

district of residence and the enrolling district are both

constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil's

district of residence who attends a United States Olympic Education

Center.

(n) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148.

(o) A pupil who enrolls in a district other than the pupil's

district of residence as a result of the pupil's school not making

adequate yearly progress under the no child left behind act of

2001, Public Law 107-110, or the every student succeeds act, Public

Law 114-95.

However, except for pupils enrolled in the youth challenge

program at the site at which the youth challenge program operated

for 2015-2016, if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

(7) "Pupil membership count day" of a district or intermediate

district means:

(a) Except as provided in subdivision (b), the first Wednesday

in October each school year or, for a district or building in which

school is not in session on that Wednesday due to conditions not

within the control of school authorities, with the approval of the

superintendent, the immediately following day on which school is in

session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) First Wednesday in October.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

day and who does not attend each of those classes during the 10

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, shall not be counted as 1.0 full-time

equated membership. A pupil who is excused from attendance on the

pupil membership count day or supplemental count day and who fails

to attend each of the classes in which the pupil is enrolled within

30 calendar days after the pupil membership count day or

supplemental count day shall not be counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, intermediate district, or public school

academy before the pupil membership count day or supplemental count

day of a particular year but was expelled or suspended on the pupil

membership count day or supplemental count day shall only be

counted as 1.0 full-time equated membership if the pupil resumed

attendance in the district, intermediate district, or public school

academy within 45 days after the pupil membership count day or

supplemental count day of that particular year. Pupils not counted

as 1.0 full-time equated membership due to an absence from a class

shall be counted as a prorated membership for the classes the pupil

attended. For purposes of this subsection, "class" means a period

of time in 1 day when pupils and a certificated teacher or ~~legally~~

~~qualified~~ an individual working under a valid substitute ~~teacher~~

permit, authorization, or approval issued by the department, are

together and instruction is taking place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to

380.1852.

(11) "School district of the first class", "first class school

district", and "district of the first class" mean, for the purposes

of this article only, a district that had at least 40,000 pupils in

membership for the immediately preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(13) "State board" means the state board of education.

(14) "Superintendent", unless the context clearly refers to a

district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(15) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(16) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged to the district of residence.

Tuition pupil does not include a pupil who is a special education

pupil, a pupil described in subsection (6)(c) to (o), or a pupil

whose parent or guardian voluntarily enrolls the pupil in a

district that is not the pupil's district of residence. A pupil's

district of residence shall not require a high school tuition

pupil, as provided under section 111, to attend another school

district after the pupil has been assigned to a school district.

(17) "State school aid fund" means the state school aid fund

established in section 11 of article IX of the state constitution

of 1963.

(18) "Taxable value" means the taxable value of property as

determined under section 27a of the general property tax act, 1893

PA 206, MCL 211.27a.

(19) "Textbook" means a book, electronic book, or other

instructional print or electronic resource that is selected and

approved by the governing board of a district and that contains a

presentation of principles of a subject, or that is a literary work

relevant to the study of a subject required for the use of

classroom pupils, or another type of course material that forms the

basis of classroom instruction.

(20) "Total state aid" or "total state school aid" means the

total combined amount of all funds due to a district, intermediate

district, or other entity under this article.

Sec. 11. (1) ~~For the fiscal year ending September 30, 2017,~~

~~there is appropriated for the public schools of this state and~~

~~certain other state purposes relating to education the sum of~~

~~$12,069,644,300.00 from the state school aid fund, the sum of~~

~~$179,100,000.00 from the general fund, an amount not to exceed~~

~~$72,000,000.00 from the community district education trust fund~~

~~created under section 12 of the Michigan trust fund act, 2000 PA~~

~~489, MCL 12.262, and an amount not to exceed $100.00 from the water~~

~~emergency reserve fund.~~ 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

~~$12,547,270,300.00~~ $12,561,077,200.00 from the state school aid

House Bill No. 5579 as amended April 24, 2018

fund, the sum of ~~$215,000,000.00~~ $190,000,000.00 from the general

fund, an amount not to exceed $72,000,000.00 from the community

district education trust fund created under section 12 of the

Michigan trust fund act, 2000 PA 489, MCL 12.262, an amount not to

exceed $23,100,000.00 from the MPSERS retirement obligation reform

reserve fund, and an amount not to exceed $100.00 from the water

emergency reserve fund. For the fiscal year ending September 30,

2019, there is appropriated for the public schools of this state

and certain other state purposes relating to education the sum of

$12,849,145,400.00 from the state school aid fund, the sum of

[$47,400,000.00] from the general fund, an amount not to exceed

$72,000,000.00 from the community district education trust fund

created under section 12 of the Michigan trust fund act, 2000 PA

489, MCL 12.262, an amount not to exceed $31,900,000.00 from the

MPSERS retirement obligation reform reserve fund, an amount not to

exceed [$100,000,100.00] from the talent investment fund, and an

amount not to exceed $100.00 from the water emergency reserve fund.

In addition, all available federal funds are appropriated each

fiscal year for the fiscal years ending September 30, ~~2017~~ 2018 and

September 30, ~~2018.~~2019.

(2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

from the general fund shall be expended to fund the purposes of

this article before the expenditure of money appropriated under

this section from the state school aid fund.

(3) Any general fund allocations under this article that are

not expended by the end of the state fiscal year are transferred to

the school aid stabilization fund created under section 11a.

Sec. 11a. (1) The school aid stabilization fund is created as

a separate account within the state school aid fund established by

section 11 of article IX of the state constitution of 1963.

(2) The state treasurer may receive money or other assets from

any source for deposit into the school aid stabilization fund. The

state treasurer shall deposit into the school aid stabilization

fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue

for a fiscal year that remains in the state school aid fund as of

the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid

stabilization fund.

(3) Money available in the school aid stabilization fund may

not be expended without a specific appropriation from the school

aid stabilization fund. Money in the school aid stabilization fund

shall be expended only for purposes for which state school aid fund

money may be expended.

(4) The state treasurer shall direct the investment of the

school aid stabilization fund. The state treasurer shall credit to

the school aid stabilization fund interest and earnings from fund

investments.

(5) Money in the school aid stabilization fund at the close of

a fiscal year shall remain in the school aid stabilization fund and

shall not lapse to the unreserved school aid fund balance or the

general fund.

(6) If the maximum amount appropriated under section 11 from

the state school aid fund for a fiscal year exceeds the amount

available for expenditure from the state school aid fund for that

fiscal year, there is appropriated from the school aid

stabilization fund to the state school aid fund an amount equal to

the projected shortfall as determined by the department of

treasury, but not to exceed available money in the school aid

stabilization fund. If the money in the school aid stabilization

fund is insufficient to fully fund an amount equal to the projected

shortfall, the state budget director shall notify the legislature

as required under section 296(2) and state payments in an amount

equal to the remainder of the projected shortfall shall be prorated

in the manner provided under section 296(3).

(7) For ~~2016-2017 and for 2017-2018,~~ 2018-2019, in addition to

the appropriations in section 11, there is appropriated from the

school aid stabilization fund to the state school aid fund the

amount necessary to fully fund the allocations under this article.

Sec. 11j. From the appropriation in section 11, there is

allocated an amount not to exceed $125,500,000.00 for ~~2017-2018~~

2018-2019 for payments to the school loan bond redemption fund in

the department of treasury on behalf of districts and intermediate

districts. Notwithstanding section 296 or any other provision of

this act, funds allocated under this section are not subject to

proration and shall be paid in full.

Sec. 11k. For ~~2017-2018,~~ 2018-2019, there is appropriated from

the general fund to the school loan revolving fund an amount equal

to the amount of school bond loans assigned to the Michigan finance

authority, not to exceed the total amount of school bond loans held

in reserve as long-term assets. As used in this section, "school

loan revolving fund" means that fund created in section 16c of the

shared credit rating act, 1985 PA 227, MCL 141.1066c.

Sec. 11m. From the appropriation in section 11, ~~there is~~

~~allocated for 2016-2017 an amount not to exceed $5,500,000.00 and~~

there is allocated for 2017-2018 an amount not to exceed

~~$6,500,000.00~~ $18,000,000.00 and there is allocated for 2018-2019

an amount not to exceed $24,000,000.00 for fiscal year cash-flow

borrowing costs solely related to the state school aid fund

established by section 11 of article IX of the state constitution

of 1963.

Sec. 11s. (1) From the general fund appropriation in section

11, ~~there is allocated $10,142,500.00 for 2016-2017 and~~ there is

allocated ~~$8,730,000.00 for 2017-2018~~ $3,230,000.00 for 2018-2019

for the purpose of providing services and programs to children who

reside within the boundaries of a district with the majority of its

territory located within the boundaries of a city for which an

executive proclamation of emergency is issued in the current or

immediately preceding 2 3 fiscal years under the emergency

management act, 1976 PA 390, MCL 30.401 to 30.421. From the funding

appropriated in section 11, there is allocated for ~~each fiscal year~~

~~for 2016-2017 and for 2017-2018~~ 2018-2019 $100.00 from the water

emergency reserve fund for the purposes of this section.

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

to a district with the majority of its territory located within the

boundaries of a city in which an executive proclamation of

emergency is issued in the current or immediately preceding 2 3

fiscal years and that has at least 4,500 pupils in membership for

the 2016-2017 fiscal year or has at least 4,000 pupils in

membership for a fiscal year after 2016-2017, an amount not to

exceed ~~$1,292,500.00 for 2016-2017 and an amount not to exceed~~

$2,625,000.00 ~~for 2017-2018~~ for 2018-2019 for the purpose of

employing school nurses and school social workers. The district

shall provide a report to the department in a form, manner, and

frequency prescribed by the department. The department shall

provide a copy of that report to the governor, the house and senate

school aid subcommittees, the house and senate fiscal agencies, and

the state budget director within 5 days after receipt. The report

shall provide at least the following information:

(a) How many personnel were hired using the funds allocated

under this subsection.

(b) A description of the services provided to pupils by those

personnel.

in subdivision (b).

(d) Any other information the department considers necessary

to ensure that the children described in subsection (1) received

appropriate levels and types of services.

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

~~to an intermediate district that has a constituent district~~

~~described in subsection (2) an amount not to exceed $1,195,000.00~~

~~for 2016-2017 and an amount not to exceed $2,500,000.00 for 2017-~~

~~2018 to augment staff for the purpose of providing additional early~~

~~childhood services and for nutritional services to children~~

~~described in subsection (1), regardless of location of school of~~

~~attendance. For 2016-2017, the early childhood services to be~~

~~provided under this subsection are state early intervention~~

~~services as described in subsection (4) and early literacy~~

~~services. Beginning with 2017-2018, the early childhood services to~~

~~be provided under this subsection are state early intervention~~

~~services that are similar to the services described in the early on~~

~~Michigan state plan, including ensuring that all children described~~

~~in subsection (1) who are less than 4 years of age as of September~~

~~1, 2016 are assessed and evaluated at least twice annually. In~~

~~addition, funds allocated under this subsection may also be~~

~~expended to provide informational resources to parents, educators,~~

~~and the community, and to coordinate services with other local~~

~~agencies. The intermediate district shall provide a report to the~~

~~department in a form, manner, and frequency approved by the~~

~~department. The department shall provide a copy of that report to~~

~~the governor, the house and senate school aid subcommittees, the~~

~~house and senate fiscal agencies, and the state budget director~~

~~within 5 days after receipt. The report shall provide at least the~~

~~following information:~~

~~(a) How many personnel were hired using the funds appropriated~~

~~in this subsection.~~

~~(b) A description of the services provided to children by~~

~~those personnel.~~

~~(c) What types of additional nutritional services were~~

~~provided.~~

~~(d) How many children received each type of service identified~~

~~in subdivisions (b) and (c).~~

~~(e) What types of informational resources and coordination~~

~~efforts were provided.~~

~~(f) Any other information the department considers necessary~~

~~to ensure that the children described in subsection (1) received~~

~~appropriate levels and types of services.~~

~~(4) For 2016-2017 only, from the allocation in subsection (1),~~

~~there is allocated an amount not to exceed $6,155,000.00 to~~

~~intermediate districts described in subsection (3) to provide state~~

~~early intervention services for children described in subsection~~

~~(1) who are less than 4 years of age as of September 1, 2016. The~~

~~intermediate district shall use these funds to provide state early~~

~~intervention services that are similar to the services described in~~

~~the early on Michigan state plan, including ensuring that all~~

~~children described in subsection (1) who are less than 4 years of~~

~~age as of September 1, 2016 are assessed and evaluated at least~~

~~twice annually.~~

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

~~an amount not to exceed $1,500,000.00 for 2016-2017 and an amount~~

~~not to exceed $3,000,000.00 for 2017-2018 to intermediate districts~~

~~described in subsection (3) to enroll children described in~~

~~subsection (1) in school-day great start readiness programs,~~

~~regardless of household income eligibility requirements contained~~

~~in section 39. The department shall administer this funding~~

~~consistent with all other provisions of the great start readiness~~

~~programs contained in section 32d and section 39.~~

(3) ~~(6)~~ For ~~2017-2018,~~ 2018-2019, from the allocation in

subsection (1), there is allocated an amount not to exceed

$605,000.00 for nutritional services to children described in

subsection (1).

(4) ~~(7)~~ In addition to other funding allocated and

appropriated in this section, there is appropriated an amount not

to exceed $15,000,000.00 ~~each fiscal year for 2016-2017 and 2017-~~

~~2018~~ for 2018-2019 for state restricted contingency funds. These

contingency funds are not available for expenditure until they have

been transferred to a section within this article under section

393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(5) ~~(8)~~ Notwithstanding section 17b, payments under this

section shall be paid on a schedule determined by the department.

Sec. 15. (1) If a district or intermediate district fails to

receive its proper apportionment, the department, upon satisfactory

proof that the district or intermediate district was entitled

justly, shall apportion the deficiency in the next apportionment.

Subject to subsections (2) and (3), if a district or intermediate

district has received more than its proper apportionment, the

department, upon satisfactory proof, shall deduct the excess in the

next apportionment. Notwithstanding any other provision in this

article, state aid overpayments to a district, other than

overpayments in payments for special education or special education

transportation, may be recovered from any payment made under this

article other than a special education or special education

transportation payment, from the proceeds of a loan to the district

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

141.942, or from the proceeds of millage levied or pledged under

section 1211 of the revised school code, MCL 380.1211. State aid

overpayments made in special education or special education

transportation payments may be recovered from subsequent special

education or special education transportation payments, from the

proceeds of a loan to the district under the emergency municipal

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

of millage levied or pledged under section 1211 of the revised

school code, MCL 380.1211.

(2) If the result of an audit conducted by or for the

department affects the current fiscal year membership, affected

payments shall be adjusted in the current fiscal year. A deduction

due to an adjustment made as a result of an audit conducted by or

for the department, or as a result of information obtained by the

department from the district, an intermediate district, the

department of treasury, or the office of auditor general, shall be

deducted from the district's apportionments when the adjustment is

finalized. At the request of the district and upon the district

presenting evidence satisfactory to the department of the hardship,

the department may grant up to an additional 9 years for the

adjustment and may advance payments to the district otherwise

authorized under this article if the district would otherwise

experience a significant hardship in satisfying its financial

obligations. At the request of a district and upon the district

presenting evidence satisfactory to the department of the hardship,

the department may waive all or a portion of the adjustments under

this subsection if the department determines that all of the

following apply:

(a) The district would otherwise experience a significant

hardship in satisfying its financial obligations.

(b) The district would otherwise experience a significant

hardship in satisfying its responsibility to provide instruction to

its pupils.

ensure that the circumstance or circumstances that necessitated the

adjustment under this subsection do not recur.

(3) If, based on an audit by the department or the

department's designee or because of new or updated information

received by the department, the department determines that the

amount paid to a district or intermediate district under this

article for the current fiscal year ~~or a prior fiscal year~~ was

incorrect, the department shall make the appropriate deduction or

payment in the district's or intermediate district's allocation in

the next apportionment after the adjustment is finalized. The

deduction or payment shall be calculated according to the law in

effect in the fiscal year in which the incorrect amount was paid.

If the district does not receive an allocation for the fiscal year

or if the allocation is not sufficient to pay the amount of any

deduction, the amount of any deduction otherwise applicable shall

be satisfied from the proceeds of a loan to the district under the

emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942,

or from the proceeds of millage levied or pledged under section

1211 of the revised school code, MCL 380.1211, as determined by the

department.

(4) The department may conduct audits, or may direct audits by

designee of the department, for the current fiscal year and the

immediately preceding 3 fiscal years of all records related to a

program for which a district or intermediate district has received

funds under this article.

(5) Expenditures made by the department under this article

that are caused by the write-off of prior year accruals may be

funded by revenue from the write-off of prior year accruals.

~~(6) The department shall not deduct any funds from a district~~

~~due to a pupil being counted in membership before the effective~~

~~date of the amendatory act that added section 6(4)(jj), or~~

~~otherwise reduce an allocation under this article to a district~~

~~relative to the counting of a pupil in membership as provided under~~

~~section 6(4)(jj), if the district substantially complied with the~~

~~requirements under section 6(4)(jj) in a previous fiscal year as if~~

~~section 6(4)(jj) had been in effect in the previous fiscal year.~~

(6) ~~(7)~~ In addition to funds appropriated in section 11 for

all programs and services, there is appropriated for ~~2017-2018~~

2018-2019 for obligations in excess of applicable appropriations an

amount equal to the collection of overpayments, but not to exceed

amounts available from overpayments.

Sec. 17c. (1) Except as otherwise provided under this article,

the department shall do all of the following for funds appropriated

under this article for grants to districts and intermediate

districts or for contracts with eligible entities:

(a) Not later than August 1 of each fiscal year, open the

grant application or bid process for funds appropriated for the

subsequent fiscal year. The department shall also provide to

districts and intermediate districts, and post on its publicly

accessible website, the grant application, contract bid, and award

process schedule and the list of state grants and contracts

available in the subsequent fiscal year.

(b) On October 1 of each fiscal year, close the grant

application or bid process under subdivision (a) and begin the

award process for funds appropriated in that fiscal year.

grant or contract awards for funds appropriated in that fiscal

year.

(2) Grants and contracts awarded from funds appropriated under

this article are not subject to approval by the state board.

Sec. 18. (1) Except as provided in another section of this

article, each district or other entity shall apply the money

received by the district or entity under this article to salaries

and other compensation of teachers and other employees, tuition,

transportation, lighting, heating, ventilation, water service, the

purchase of textbooks, other supplies, and any other school

operating expenditures defined in section 7. However, not more than

20% of the total amount received by a district under sections 22a

and 22b or received by an intermediate district under section 81

may be transferred by the board to either the capital projects fund

or to the debt retirement fund for debt service. The money shall

not be applied or taken for a purpose other than as provided in

this section. The department shall determine the reasonableness of

expenditures and may withhold from a recipient of funds under this

article the apportionment otherwise due upon a violation by the

recipient.

(2) A district or intermediate district shall adopt an annual

budget in a manner that complies with the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days

after a district board adopts its annual operating budget for the

following school fiscal year, or after a district board adopts a

subsequent revision to that budget, the district shall make all of

the following available through a link on its website homepage, or

may make the information available through a link on its

intermediate district's website homepage, in a form and manner

prescribed by the department:

(a) The annual operating budget and subsequent budget

revisions.

(b) Using data that have already been collected and submitted

to the department, a summary of district expenditures for the most

recent fiscal year for which they are available, expressed in the

following 2 ~~pie charts:~~visual displays:

(i) A chart of personnel expenditures, broken into the

following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

(ii) A chart of all district expenditures, broken into the

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not

limited to, medical, dental, vision, disability, long-term care, or

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee in the

district.

(iii) The audit report of the audit conducted under subsection

(4) for the most recent fiscal year for which it is available.

(iv) The bids required under section 5 of the public employees

health ~~benefits~~ benefit act, 2007 PA 106, MCL 124.75.

(v) The district's written policy governing procurement of

supplies, materials, and equipment.

(vi) The district's written policy establishing specific

categories of reimbursable expenses, as described in section

1254(2) of the revised school code, MCL 380.1254.

(vii) Either the district's accounts payable check register

for the most recent school fiscal year or a statement of the total

amount of expenses incurred by board members or employees of the

district that were reimbursed by the district for the most recent

school fiscal year.

(d) The total salary and a description and cost of each fringe

benefit included in the compensation package for the superintendent

of the district and for each employee of the district whose salary

exceeds $100,000.00.

(e) The annual amount spent on dues paid to associations.

(f) The annual amount spent on lobbying or lobbying services.

As used in this subdivision, "lobbying" means that term as defined

in section 5 of 1978 PA 472, MCL 4.415.

(g) Any deficit elimination plan or enhanced deficit

elimination plan the district was required to submit under the

revised school code.

(h) Identification of all credit cards maintained by the

district as district credit cards, the identity of all individuals

authorized to use each of those credit cards, the credit limit on

each credit card, and the dollar limit, if any, for each

individual's authorized use of the credit card.

(i) Costs incurred for each instance of out-of-state travel by

the school administrator of the district that is fully or partially

paid for by the district and the details of each of those instances

of out-of-state travel, including at least identification of each

individual on the trip, destination, and purpose.

(3) For the information required under subsection (2)(a),

(2)(b)(i), and (2)(c), an intermediate district shall provide the

same information in the same manner as required for a district

under subsection (2).

(4) For the purposes of determining the reasonableness of

expenditures, whether a district or intermediate district has

received the proper amount of funds under this article, and whether

a violation of this article has occurred, all of the following

apply:

(a) The department shall require that each district and

intermediate district have an audit of the district's or

intermediate district's financial and pupil accounting records

conducted at least annually, and at such other times as determined

by the department, at the expense of the district or intermediate

district, as applicable. The audits must be performed by a

certified public accountant or by the intermediate district

superintendent, as may be required by the department, or in the

case of a district of the first class by a certified public

accountant, the intermediate superintendent, or the auditor general

of the city. A district or intermediate district shall retain these

records for the current fiscal year and from at least the 3

immediately preceding fiscal years.

(b) If a district operates in a single building with fewer

than 700 full-time equated pupils, if the district has stable

membership, and if the error rate of the immediately preceding 2

pupil accounting field audits of the district is less than 2%, the

district may have a pupil accounting field audit conducted

biennially but must continue to have desk audits for each pupil

count. The auditor must document compliance with the audit cycle in

the pupil auditing manual. As used in this subdivision, "stable

membership" means that the district's membership for the current

fiscal year varies from the district's membership for the

immediately preceding fiscal year by less than 5%.

audit shall include an analysis of the financial and pupil

accounting data used as the basis for distribution of state school

aid.

(d) The pupil and financial accounting records and reports,

audits, and management letters are subject to requirements

established in the auditing and accounting manuals approved and

published by the department.

(e) All of the following shall be done not later than November

1 each year for reporting the prior fiscal year data:

(i) A district shall file the annual financial audit reports

with the intermediate district and the department.

(ii) The intermediate district shall file the annual financial

audit reports for the intermediate district with the department.

(iii) The intermediate district shall enter the pupil

membership audit reports for its constituent districts and for the

intermediate district, for the pupil membership count day and

supplemental count day, in the Michigan student data system.

(f) The annual financial audit reports and pupil accounting

procedures reports shall be available to the public in compliance

with the freedom of information act, 1976 PA 442, MCL 15.231 to

15.246.

(g) Not later than January 31 of each year, the department

shall notify the state budget director and the legislative

appropriations subcommittees responsible for review of the school

aid budget of districts and intermediate districts that have not

filed an annual financial audit and pupil accounting procedures

report required under this section for the school year ending in

the immediately preceding fiscal year.

(5) By November 1 each fiscal year, each district and

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

consistent with the district's or intermediate district's audited

financial statements and consistent with accounting manuals and

charts of accounts approved and published by the department. For an

intermediate district, the report shall also contain the website

address where the department can access the report required under

section 620 of the revised school code, MCL 380.620. The department

shall ensure that the prescribed Michigan public school accounting

manual chart of accounts includes standard conventions to

distinguish expenditures by allowable fund function and object. The

functions shall include at minimum categories for instruction,

pupil support, instructional staff support, general administration,

school administration, business administration, transportation,

facilities operation and maintenance, facilities acquisition, and

debt service; and shall include object classifications of salary,

benefits, including categories for active employee health

expenditures, purchased services, supplies, capital outlay, and

other. Districts shall report the required level of detail

consistent with the manual as part of the comprehensive annual

financial report.

(6) By September 30 of each year, each district and

intermediate district shall file with the ~~department~~ center the

special education actual cost report, known as "SE-4096", on a form

and in the manner prescribed by the ~~department.~~center.

(7) By October 7 of each year, each district and intermediate

district shall file with the center the transportation expenditure

report, known as "SE-4094", on a form and in the manner prescribed

by the center.

(8) The department shall review its pupil accounting and pupil

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this article.

(9) If a district that is a public school academy purchases

property using money received under this article, the public school

academy shall retain ownership of the property unless the public

school academy sells the property at fair market value.

(10) If a district or intermediate district does not comply

with subsections (4), (5), (6), ~~and~~ (7), and (12), or if the

department determines that the financial data required under

subsection (5) are not consistent with audited financial

statements, the department shall withhold all state school aid due

to the district or intermediate district under this article,

beginning with the next payment due to the district or intermediate

district, until the district or intermediate district complies with

subsections (4), (5), (6), ~~and~~ (7), and (12). If the district or

intermediate district does not comply with subsections (4), (5),

(6), ~~and~~ (7), and (12) by the end of the fiscal year, the district

or intermediate district forfeits the amount withheld.

(11) If a district or intermediate district does not comply

with subsection (2), the department may withhold up to 10% of the

total state school aid due to the district or intermediate district

under this article, beginning with the next payment due to the

district or intermediate district, until the district or

intermediate district complies with subsection (2). If the district

or intermediate district does not comply with subsection (2) by the

end of the fiscal year, the district or intermediate district

forfeits the amount withheld.

(12) By November 1 of each year, if a district or intermediate

district offers virtual learning under section 21f, or for a school

of excellence that is a cyber school, as defined in section 551 of

the revised school code, MCL 380.551, the district or intermediate

district shall submit to the department a report that details the

per-pupil costs of operating the virtual learning by vendor type

and virtual learning model. The report shall include ~~at least all~~

~~of the following~~ information concerning the operation of virtual

learning for the immediately preceding school fiscal ~~year:~~

~~(a) The name of the district operating the virtual learning~~

~~and of each district that enrolled students in the virtual~~

~~learning.~~

~~(b) The total number of students enrolled in the virtual~~

~~learning and the total number of membership pupils enrolled in the~~

~~virtual learning.~~

~~(c) For each pupil who is enrolled in a district other than~~

~~the district offering virtual learning, the name of that district.~~

~~(d) The district in which the pupil was enrolled before~~

~~enrolling in the district offering virtual learning.~~

~~(e) The number of participating students who had previously~~

~~dropped out of school.~~

~~(f) The number of participating students who had previously~~

~~been expelled from school.~~

~~(g) The total cost to enroll a student in the program. This~~

~~cost shall be reported on a per-pupil, per-course, per-semester or~~

~~trimester basis by vendor type. The total shall include costs~~

~~broken down by cost for content development, content licensing,~~

~~training, virtual instruction and instructional support, personnel,~~

~~hardware and software, payment to each virtual learning provider,~~

~~and other costs associated with operating virtual learning.~~

~~(h) The name of each virtual education provider contracted by~~

~~the district and the state in which each virtual education provider~~

~~is headquartered.~~year, including information concerning summer

programming. Information must be collected in a form and manner

determined by the department and must be collected in the most

efficient manner possible to reduce the administrative burden on

reporting entities.

(13) By March 31 of each year, the department shall submit to

the house and senate appropriations subcommittees on state school

aid, the state budget director, and the house and senate fiscal

agencies a report summarizing the per-pupil costs by vendor type of

virtual courses available under section 21f and virtual courses

provided by a school of excellence that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551.

(14) As used in subsections (12) and (13), "vendor type" means

the following:

(a) Virtual courses provided by the Michigan Virtual

University.

(b) Virtual courses provided by a school of excellence that is

a cyber school, as defined in section 551 of the revised school

code, MCL 380.551.

affiliated with a Michigan public school.

(d) Virtual courses created and offered by a district or

intermediate district.

(15) An allocation to a district or another entity under this

article is contingent upon the district's or entity's compliance

with this section.

(16) Beginning October 1, ~~2017, and not less than once every 3~~

~~months after that date, the~~ 2018, and annually thereafter, the

department shall submit to the senate and house subcommittees on

school aid and to the senate and house standing committees on

education an itemized list of allocations under this article to any

association or consortium consisting of associations in the

immediately preceding fiscal year. The report shall detail the

recipient or recipients, the amount allocated, and the purpose for

which the funds were distributed.

Sec. 19. (1) A district or intermediate district shall comply

with all applicable reporting requirements specified in state and

federal law. Data provided to the center, in a form and manner

prescribed by the center, shall be aggregated and disaggregated as

required by state and federal law. In addition, a district or

intermediate district shall cooperate with all measures taken by

the center to establish and maintain a statewide P-20 longitudinal

data system.

(2) Each district shall furnish to the center not later than 5

weeks after the pupil membership count day and by ~~June 30~~ the last

business day in June of the school fiscal year ending in the fiscal

year, in a manner prescribed by the center, the information

necessary for the preparation of the district and high school

graduation report and for the preparation of the state and federal

accountability reports. This information shall meet requirements

established in the pupil auditing manual approved and published by

the department. The center shall calculate an annual graduation and

pupil dropout rate for each high school, each district, and this

state, in compliance with nationally recognized standards for these

calculations. The center shall report all graduation and dropout

rates to the senate and house education committees and

appropriations committees, the state budget director, and the

department not later than 30 days after the publication of the list

described in subsection (5). Before reporting these graduation and

dropout rates, the department shall allow a school or district to

appeal the calculations. The department shall consider and act upon

the appeal within 30 days after it is submitted and shall not

report these graduation and dropout rates until after all appeals

have been considered and decided.

(3) By the first business day in December and by ~~June 30~~ the

last business day in June of each year, a district shall furnish to

the center, in a manner prescribed by the center, information

related to educational personnel as necessary for reporting

required by state and federal law. For the purposes of this

subsection, the center shall only require districts and

intermediate districts to report information that is not already

available from the office of retirement services in the department

of technology, management, and budget.

(4) If a district or intermediate district fails to meet the

requirements of this section, the department shall withhold 5% of

the total funds for which the district or intermediate district

qualifies under this article until the district or intermediate

district complies with all of those subsections. If the district or

intermediate district does not comply with all of those subsections

by the end of the fiscal year, the department shall place the

amount withheld in an escrow account until the district or

intermediate district complies with all of those subsections.

(5) Before publishing a list of school or district

accountability designations as required by the no child left behind

act of 2001, Public Law 107-110, or the every student succeeds act,

Public Law 114-95, using data certified as accurate and complete

after districts and intermediate districts adhered to deadlines,

data quality reviews, and correction processes leading to local

certification of final student data in subsection (2), the

department shall allow a school or district to appeal ~~that~~

~~determination.~~ any calculation errors used in the preparation of

accountability metrics. The department shall consider and act upon

the appeal within 30 days after it is submitted and shall not

publish the list until after all appeals have been considered and

decided.

(6) Beginning in 2016-2017, the department shall implement

statewide standard reporting requirements for education data

approved by the department in conjunction with the center. The

department shall work with the center, intermediate districts,

districts, and other interested stakeholders to implement this

policy change. A district or intermediate district shall implement

the statewide standard reporting requirements not later than 2017-

2018 or when a district or intermediate district updates its

education data reporting system, whichever is later.

Sec. 20. (1) For ~~2017-2018,~~ 2018-2019, both of the following

apply:

(a) The basic foundation allowance is ~~$8,289.00.~~$8,409.00.

(b) The minimum foundation allowance is ~~$7,631.00.~~$7,871.00.

(2) The amount of each district's foundation allowance shall

be calculated as provided in this section, using a basic foundation

allowance in the amount specified in subsection (1).

(3) Except as otherwise provided in this section, the amount

of a district's foundation allowance shall be calculated as

follows, using in all calculations the total amount of the

district's foundation allowance as calculated before any proration:

(a) Except as otherwise provided in this subdivision, for a

district that had a foundation allowance for the immediately

preceding state fiscal year that was at least equal to the minimum

foundation allowance for the immediately preceding state fiscal

year, but less than the basic foundation allowance for the

immediately preceding state fiscal year, the district shall receive

a foundation allowance in an amount equal to the sum of the

district's foundation allowance for the immediately preceding state

fiscal year plus the difference between twice the dollar amount of

the adjustment from the immediately preceding state fiscal year to

the current state fiscal year made in the basic foundation

allowance and [(the difference between the basic foundation

allowance for the current state fiscal year and basic foundation

allowance for the immediately preceding state fiscal year minus

~~$20.00)~~ $40.00) times (the difference between the district's

foundation allowance for the immediately preceding state fiscal

year and the minimum foundation allowance for the immediately

preceding state fiscal year) divided by the difference between the

basic foundation allowance for the current state fiscal year and

the minimum foundation allowance for the immediately preceding

state fiscal year.] However, the foundation allowance for a

district that had less than the basic foundation allowance for the

immediately preceding state fiscal year shall not exceed the basic

foundation allowance for the current state fiscal year.

(b) Except as otherwise provided in this subsection, for a

district that in the immediately preceding state fiscal year had a

foundation allowance in an amount equal to the amount of the basic

foundation allowance for the immediately preceding state fiscal

year, the district shall receive a foundation allowance for ~~2017-~~

~~2018~~ 2018-2019 in an amount equal to the basic foundation allowance

for ~~2017-2018.~~2018-2019.

immediately preceding state fiscal year that was greater than the

basic foundation allowance for the immediately preceding state

fiscal year, the district's foundation allowance is an amount equal

to the sum of the district's foundation allowance for the

immediately preceding state fiscal year plus the lesser of the

increase in the basic foundation allowance for the current state

fiscal year, as compared to the immediately preceding state fiscal

year, or the product of the district's foundation allowance for the

immediately preceding state fiscal year times the percentage

increase in the United States ~~consumer price index~~ Consumer Price

Index in the calendar year ending in the immediately preceding

fiscal year as reported by the May revenue estimating conference

conducted under section 367b of the management and budget act, 1984

PA 431, MCL 18.1367b.

(d) For a district that has a foundation allowance that is not

a whole dollar amount, the district's foundation allowance shall be

rounded up to the nearest whole dollar.

(e) For a district that received a foundation allowance

supplemental payment calculated under section 20m and paid under

section 22b for ~~2016-2017,~~ 2017-2018, the district's ~~2016-2017~~

2017-2018 foundation allowance is considered to have been an amount

equal to the sum of the district's actual ~~2016-2017~~ 2017-2018

foundation allowance as otherwise calculated under this section

plus the lesser of the per pupil amount of the district's

supplemental payment for ~~2016-2017~~ 2017-2018 as calculated under

section 20m or the product of the district's foundation allowance

for the immediately preceding state fiscal year times the

percentage increase in the United States ~~consumer price index~~

Consumer Price Index in the calendar year ending in the immediately

preceding fiscal year as reported by the May revenue estimating

conference conducted under section 367b of the management and

budget act, 1984 PA 431, MCL 18.1367b.

(4) Except as otherwise provided in this subsection, beginning

in 2014-2015, the state portion of a district's foundation

allowance is an amount equal to the district's foundation allowance

or the basic foundation allowance for the current state fiscal

year, whichever is less, minus the local portion of the district's

foundation allowance. For a district described in subsection

(3)(c), beginning in 2014-2015, the state portion of the district's

foundation allowance is an amount equal to $6,962.00 plus the

difference between the district's foundation allowance for the

current state fiscal year and the district's foundation allowance

for 1998-99, minus the local portion of the district's foundation

allowance. For a district that has a millage reduction required

under section 31 of article IX of the state constitution of 1963,

the state portion of the district's foundation allowance shall be

calculated as if that reduction did not occur. For a receiving

district, if school operating taxes continue to be levied on behalf

of a dissolved district that has been attached in whole or in part

to the receiving district to satisfy debt obligations of the

dissolved district under section 12 of the revised school code, MCL

380.12, the taxable value per membership pupil of property in the

receiving district used for the purposes of this subsection does

not include the taxable value of property within the geographic

area of the dissolved district. For a community district, if school

operating taxes continue to be levied by a qualifying school

district under section 12b of the revised school code, MCL 380.12b,

with the same geographic area as the community district, the

taxable value per membership pupil of property in the community

district to be used for the purposes of this subsection does not

include the taxable value of property within the geographic area of

the community district.

(5) The allocation calculated under this section for a pupil

shall be based on the foundation allowance of the pupil's district

of residence. For a pupil enrolled pursuant to section 105 or 105c

in a district other than the pupil's district of residence, the

allocation calculated under this section shall be based on the

lesser of the foundation allowance of the pupil's district of

residence or the foundation allowance of the educating district.

For a pupil in membership in a K-5, K-6, or K-8 district who is

enrolled in another district in a grade not offered by the pupil's

district of residence, the allocation calculated under this section

shall be based on the foundation allowance of the educating

district if the educating district's foundation allowance is

greater than the foundation allowance of the pupil's district of

residence. The calculation under this subsection shall take into

account a district's per-pupil allocation under section 20m.

(6) Except as otherwise provided in this subsection, for

pupils in membership, other than special education pupils, in a

public school academy, the allocation calculated under this section

is an amount per membership pupil other than special education

pupils in the public school academy equal to the foundation

allowance of the district in which the public school academy is

located or the state maximum public school academy allocation,

whichever is less. Except as otherwise provided in this subsection,

for pupils in membership, other than special education pupils, in a

public school academy that is a cyber school and is authorized by a

school district, the allocation calculated under this section is an

amount per membership pupil other than special education pupils in

the public school academy equal to the foundation allowance of the

district that authorized the public school academy or the state

maximum public school academy allocation, whichever is less.

However, a public school academy that had an allocation under this

subsection before 2009-2010 that was equal to the sum of the local

school operating revenue per membership pupil other than special

education pupils for the district in which the public school

academy is located and the state portion of that district's

foundation allowance shall not have that allocation reduced as a

result of the 2010 amendment to this subsection. Notwithstanding

section 101, for a public school academy that begins operations

after the pupil membership count day, the amount per membership

pupil calculated under this subsection shall be adjusted by

multiplying that amount per membership pupil by the number of hours

of pupil instruction provided by the public school academy after it

begins operations, as determined by the department, divided by the

minimum number of hours of pupil instruction required under section

101(3). The result of this calculation shall not exceed the amount

per membership pupil otherwise calculated under this subsection.

(7) Except as otherwise provided in this subsection, for

pupils in membership, other than special education pupils, in a

community district, the allocation calculated under this section is

an amount per membership pupil other than special education pupils

in the community district equal to the foundation allowance of the

qualifying school district, as described in section 12b of the

revised school code, MCL 380.12b, that is located within the same

geographic area as the community district.

(8) Subject to subsection (4), for a district that is formed

or reconfigured after June 1, 2002 by consolidation of 2 or more

districts or by annexation, the resulting district's foundation

allowance under this section beginning after the effective date of

the consolidation or annexation shall be the lesser of the sum of

the average of the foundation allowances of each of the original or

affected districts, calculated as provided in this section,

weighted as to the percentage of pupils in total membership in the

resulting district who reside in the geographic area of each of the

original or affected districts plus $100.00 or the highest

foundation allowance among the original or affected districts. This

subsection does not apply to a receiving district unless there is a

subsequent consolidation or annexation that affects the district.

The calculation under this subsection shall take into account a

district's per-pupil allocation under section 20m.

(9) Each fraction used in making calculations under this

section shall be rounded to the fourth decimal place and the dollar

amount of an increase in the basic foundation allowance shall be

rounded to the nearest whole dollar.

(10) State payments related to payment of the foundation

allowance for a special education pupil are not calculated under

this section but are instead calculated under section 51a.

(11) To assist the legislature in determining the basic

foundation allowance for the subsequent state fiscal year, each

revenue estimating conference conducted under section 367b of the

management and budget act, 1984 PA 431, MCL 18.1367b, shall

calculate a pupil membership factor, a revenue adjustment factor,

and an index as follows:

(a) The pupil membership factor shall be computed by dividing

the estimated membership in the school year ending in the current

state fiscal year, excluding intermediate district membership, by

the estimated membership for the school year ending in the

subsequent state fiscal year, excluding intermediate district

membership. If a consensus membership factor is not determined at

the revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

(b) The revenue adjustment factor shall be computed by

dividing the sum of the estimated total state school aid fund

revenue for the subsequent state fiscal year plus the estimated

total state school aid fund revenue for the current state fiscal

year, adjusted for any change in the rate or base of a tax the

proceeds of which are deposited in that fund and excluding money

transferred into that fund from the countercyclical budget and

economic stabilization fund under the management and budget act,

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

total school aid fund revenue for the current state fiscal year

plus the estimated total state school aid fund revenue for the

immediately preceding state fiscal year, adjusted for any change in

the rate or base of a tax the proceeds of which are deposited in

that fund. If a consensus revenue factor is not determined at the

revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

membership factor by the revenue adjustment factor. If a consensus

index is not determined at the revenue estimating conference, the

principals of the revenue estimating conference shall report their

estimates to the house and senate subcommittees responsible for

school aid appropriations not later than 7 days after the

conclusion of the revenue conference.

(12) Payments to districts and public school academies shall

not be made under this section. Rather, the calculations under this

section shall be used to determine the amount of state payments

under section 22b.

(13) If an amendment to section 2 of article VIII of the state

constitution of 1963 allowing state aid to some or all nonpublic

schools is approved by the voters of this state, each foundation

allowance or per-pupil payment calculation under this section may

be reduced.

(14) As used in this section:

(a) "Certified mills" means the lesser of 18 mills or the

number of mills of school operating taxes levied by the district in

1993-94.

(b) "Combined state and local revenue" means the aggregate of

the district's state school aid received by or paid on behalf of

the district under this section and the district's local school

operating revenue.

means the district's combined state and local revenue divided by

the district's membership excluding special education pupils.

(d) "Current state fiscal year" means the state fiscal year

for which a particular calculation is made.

(e) "Dissolved district" means a district that loses its

organization, has its territory attached to 1 or more other

districts, and is dissolved as provided under section 12 of the

revised school code, MCL 380.12.

(f) "Immediately preceding state fiscal year" means the state

fiscal year immediately preceding the current state fiscal year.

(g) "Local portion of the district's foundation allowance"

means an amount that is equal to the difference between (the sum of

the product of the taxable value per membership pupil of all

property in the district that is nonexempt property times the

district's certified mills and, for a district with certified mills

exceeding 12, the product of the taxable value per membership pupil

of property in the district that is commercial personal property

times the certified mills minus 12 mills) and (the quotient of the

product of the captured assessed valuation under tax increment

financing acts times the district's certified mills divided by the

district's membership excluding special education pupils).

(h) "Local school operating revenue" means school operating

taxes levied under section 1211 of the revised school code, MCL

380.1211. For a receiving district, if school operating taxes are

to be levied on behalf of a dissolved district that has been

attached in whole or in part to the receiving district to satisfy

debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, local school operating revenue

does not include school operating taxes levied within the

geographic area of the dissolved district.

(i) "Local school operating revenue per membership pupil"

means a district's local school operating revenue divided by the

district's membership excluding special education pupils.

(j) "Maximum public school academy allocation", except as

otherwise provided in this subdivision, means the maximum per-pupil

allocation as calculated by adding the highest per-pupil allocation

among all public school academies for the immediately preceding

state fiscal year plus the difference between twice the amount of

the difference between the basic foundation allowance for the

current state fiscal year and the basic foundation allowance for

the immediately preceding state fiscal year and [(the amount of the

difference between the basic foundation allowance for the current

state fiscal year and the basic foundation allowance for the

immediately preceding state fiscal year minus ~~$20.00)~~ $40.00) times

(the difference between the highest per-pupil allocation among all

public school academies for the immediately preceding state fiscal

year and the minimum foundation allowance for the immediately

preceding state fiscal year) divided by the difference between the

basic foundation allowance for the current state fiscal year and

the minimum foundation allowance for the immediately preceding

state fiscal year.] For the purposes of this subdivision, for ~~2017-~~

~~2018,~~ 2018-2019, the maximum public school academy allocation is

~~$7,631.00.~~$7,871.00.

(k) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(l) "Nonexempt property" means property that is not a

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, commercial personal property, or property occupied by a

public school academy.

(m) "Principal residence", "qualified agricultural property",

"qualified forest property", "supportive housing property",

"industrial personal property", and "commercial personal property"

mean those terms as defined in section 1211 of the revised school

code, MCL 380.1211.

(n) "Receiving district" means a district to which all or part

of the territory of a dissolved district is attached under section

12 of the revised school code, MCL 380.12.

(o) "School operating purposes" means the purposes included in

the operation costs of the district as prescribed in sections 7 and

18 and purposes authorized under section 1211 of the revised school

code, MCL 380.1211.

(p) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes.

(q) "Tax increment financing acts" means 1975 PA 197, MCL

125.1651 to 125.1681, the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830, the local development financing

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to ~~125.2672,~~

125.1670, or the corridor improvement authority act, 2005 PA 280,

MCL 125.2871 to 125.2899.

(r) "Taxable value per membership pupil" means taxable value,

as certified by the county treasurer and reported to the

department, for the calendar year ending in the current state

fiscal year divided by the district's membership excluding special

education pupils for the school year ending in the current state

fiscal year.

Sec. 20d. In making the final determination required under

former section 20a of a district's combined state and local revenue

per membership pupil in 1993-94 and in making calculations under

section 20 for ~~2017-2018,~~ 2018-2019, the department and the

department of treasury shall comply with all of the following:

(a) For a district that had combined state and local revenue

per membership pupil in the 1994-95 state fiscal year of $6,500.00

or more and served as a fiscal agent for a state board designated

area vocational education center in the 1993-94 school year, total

state school aid received by or paid on behalf of the district

pursuant to this act in 1993-94 shall exclude payments made under

former section 146 and under section 147 on behalf of the

district's employees who provided direct services to the area

vocational education center. Not later than June 30, 1996, the

department shall make an adjustment under this subdivision to the

district's combined state and local revenue per membership pupil in

the 1994-95 state fiscal year and the department of treasury shall

make a final certification of the number of mills that may be

levied by the district under section 1211 of the revised school

code, MCL 380.1211, as a result of the adjustment under this

subdivision.

(b) If a district had an adjustment made to its 1993-94 total

state school aid that excluded payments made under former section

146 and under section 147 on behalf of the district's employees who

provided direct services for intermediate district center programs

operated by the district under sections 51 to 56, if nonresident

pupils attending the center programs were included in the

district's membership for purposes of calculating the combined

state and local revenue per membership pupil for 1993-94, and if

there is a signed agreement by all constituent districts of the

intermediate district that an adjustment under this subdivision

shall be made, the foundation allowances for 1995-96 and 1996-97 of

all districts that had pupils attending the intermediate district

center program operated by the district that had the adjustment

shall be calculated as if their combined state and local revenue

per membership pupil for 1993-94 included resident pupils attending

the center program and excluded nonresident pupils attending the

center program.

Sec. 20f. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $18,000,000.00 for ~~2017-2018~~

2018-2019 for payments to eligible districts under this section.

(2) The funding under this subsection is from the allocation

under subsection (1). A district is eligible for funding under this

subsection if the district received a payment under this section as

it was in effect for 2013-2014. A district was eligible for funding

in 2013-2014 if the sum of the following was less than $5.00:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2012-2013 to

2013-2014.

(b) The district's equity payment per membership pupil under

former section 22c for 2013-2014.

147a for 2012-2013 divided by the district's membership pupils for

2012-2013 minus the quotient of the district's allocation under

section 147a for 2013-2014 divided by the district's membership

pupils for 2013-2014.

(3) The amount allocated to each eligible district under

subsection (2) is an amount per membership pupil equal to the

amount per membership pupil the district received under this

section in 2013-2014.

(4) The funding under this subsection is from the allocation

under subsection (1). A district is eligible for funding under this

subsection if the sum of the following is less than $25.00:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The decrease in the district's best practices per-pupil

funding under former section 22f from 2014-2015 to 2015-2016.

funding under former section 22j from 2014-2015 to 2015-2016.

(d) The quotient of the district's allocation under section

31a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 31a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(5) The amount allocated to each eligible district under

subsection (4) is an amount per membership pupil equal to $25.00

minus the sum of the following:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The decrease in the district's best practices per-pupil

funding under former section 22f from 2014-2015 to 2015-2016.

funding under former section 22j from 2014-2015 to 2015-2016.

(d) The quotient of the district's allocation under section

31a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 31a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(6) If the allocation under subsection (1) is insufficient to

fully fund payments under subsections (3) and (5) as otherwise

calculated under this section, the department shall prorate

payments under this section on an equal per-pupil basis.

Sec. 21f. (1) A primary district shall enroll an eligible

pupil in virtual courses in accordance with the provisions of this

section. A primary district shall not offer a virtual course to an

eligible pupil unless the virtual course is published in the

primary district's catalog of board-approved courses or in the

statewide catalog of virtual courses maintained by the Michigan

Virtual University pursuant to section 98. The primary district

shall also provide on its publicly accessible website a link to the

statewide catalog of virtual courses maintained by the Michigan

Virtual University. Unless the pupil is at least age 18 or is an

emancipated minor, a pupil shall not be enrolled in a virtual

course without the consent of the pupil's parent or legal guardian.

(2) Subject to subsection (3), a primary district shall enroll

an eligible pupil in up to 2 virtual courses as requested by the

pupil during an academic term, semester, or trimester.

(3) A pupil may be enrolled in more than 2 virtual courses in

a specific academic term, semester, or trimester if all of the

following conditions are met:

(a) The primary district has determined that it is in the best

interest of the pupil.

(b) The pupil agrees with the recommendation of the primary

district.

developed an education development plan, in a form and manner

specified by the department, that is kept on file by the district.

Beginning October 1, 2016, this subdivision does not apply to a

pupil enrolled as a part-time pupil under section 166b.

(4) If the number of applicants eligible for acceptance in a

virtual course does not exceed the capacity of the provider to

provide the virtual course, the provider shall accept for

enrollment all of the applicants eligible for acceptance. If the

number of applicants exceeds the provider's capacity to provide the

virtual course, the provider shall use a random draw system,

subject to the need to abide by state and federal

antidiscrimination laws and court orders. A primary district that

is also a provider shall determine whether or not it has the

capacity to accept applications for enrollment from nonresident

applicants in virtual courses and may use that limit as the reason

for refusal to enroll a nonresident applicant.

(5) A primary district may not establish additional

requirements beyond those specified in this subsection that would

prohibit a pupil from taking a virtual course. A pupil's primary

district may deny the pupil enrollment in an online course if any

of the following apply, as determined by the district:

(a) The pupil is enrolled in any of grades K to 5.

(b) The pupil has previously gained the credits that would be

provided from the completion of the virtual course.

credit.

(d) The virtual course is inconsistent with the remaining

graduation requirements or career interests of the pupil.

(e) The pupil has not completed the prerequisite coursework

for the requested virtual course or has not demonstrated

proficiency in the prerequisite course content.

(f) The pupil has failed a previous virtual course in the same

subject during the 2 most recent academic years.

(g) The virtual course is of insufficient quality or rigor. A

primary district that denies a pupil enrollment request for this

reason shall enroll the pupil in a virtual course in the same or a

similar subject that the primary district determines is of

acceptable rigor and quality.

(h) The cost of the virtual course exceeds the amount

identified in subsection ~~(9),~~ (10), unless the pupil or the pupil's

parent or legal guardian agrees to pay the cost that exceeds this

amount.

(i) The request for a virtual course enrollment did not occur

within the same timelines established by the primary district for

enrollment and schedule changes for regular courses.

(j) The request for a virtual course enrollment was not made

in the academic term, semester, trimester, or summer preceding the

enrollment. This subdivision does not apply to a request made by a

pupil who is newly enrolled in the primary district.

(6) If a pupil is denied enrollment in a virtual course by the

pupil's primary district, the primary district shall provide

written notification to the pupil of the denial, the reason or

reasons for the denial pursuant to subsection (5), and a

description of the appeal process. The pupil may appeal the denial

by submitting a letter to the superintendent of the intermediate

district in which the pupil's primary district is located. The

letter of appeal shall include the reason provided by the primary

district for not enrolling the pupil and the reason why the pupil

is claiming that the enrollment should be approved. The

intermediate district superintendent or designee shall respond to

the appeal within 5 days after it is received. If the intermediate

district superintendent or designee determines that the denial of

enrollment does not meet 1 or more of the reasons specified in

subsection (5), the primary district shall enroll the pupil in the

virtual course.

(7) To provide a virtual course to an eligible pupil under

this section, a provider shall do all of the following:

(a) Ensure that the virtual course has been published in the

pupil's primary district's catalog of board-approved courses or

published in the statewide catalog of virtual courses maintained by

the Michigan Virtual University.

(b) Assign to each pupil a teacher of record and provide the

primary district with the personnel identification code assigned by

the center for the teacher of record. If the provider is a

community college, the virtual course must be taught by an

instructor employed by or contracted through the providing

community college.

or aligned to a semester, trimester, or accelerated academic term

format.

(d) If the virtual course is offered to eligible pupils in

more than 1 district, the following additional requirements must

also be met:

(i) Provide the Michigan Virtual University with a course

syllabus that meets the definition under subsection (14)(g) in a

form and manner prescribed by the Michigan Virtual University for

inclusion in a statewide catalog of virtual courses.

(ii) Not later than October 1 of each fiscal year, provide the

Michigan Virtual University with an aggregated count of enrollments

for each virtual course the provider delivered to pupils pursuant

to this section during the immediately preceding school year, and

the number of enrollments in which the pupil earned 60% or more of

the total course points for each virtual course.

(8) To provide an online course under this section, a

community college shall ensure that each online course it provides

under this section generates postsecondary credit.

(9) For any virtual course a pupil enrolls in under this

section, the pupil's primary district must assign to the pupil a

mentor and shall supply the provider with the mentor's contact

information.

(10) For a pupil enrolled in 1 or more virtual courses, the

primary district shall use foundation allowance or per-pupil funds

calculated under section 20 to pay for the expenses associated with

the virtual course or courses. A primary district is not required

to pay toward the cost of a virtual course an amount that exceeds

6.67% of the minimum foundation allowance for the current fiscal

year as calculated under section 20.

(11) A virtual learning pupil shall have the same rights and

access to technology in his or her primary district's school

facilities as all other pupils enrolled in the pupil's primary

district. The department shall establish standards for hardware,

software, and ~~Internet~~ internet access for pupils who are enrolled

in more than 2 virtual courses in an academic term, semester, or

trimester taken at a location other than a school facility.

(12) If a pupil successfully completes a virtual course, as

determined by the pupil's primary district, the pupil's primary

district shall grant appropriate academic credit for completion of

the course and shall count that credit toward completion of

graduation and subject area requirements. A pupil's school record

and transcript shall identify the virtual course title as it

appears in the virtual course syllabus.

(13) The enrollment of a pupil in 1 or more virtual courses

shall not result in a pupil being counted as more than 1.0 full-

time equivalent pupils under this article. The minimum requirements

to count the pupil in membership are those established by the pupil

accounting manual as it was in effect for the 2015-2016 school year

or as subsequently amended by the department if the department

notifies the legislature about the proposed amendment at least 60

days before the amendment becomes effective.

(14) As used in this section:

(a) "Instructor" means an individual who is employed by or

contracted through a community college.

(b) "Mentor" means a professional employee of the primary

district who monitors the pupil's progress, ensures the pupil has

access to needed technology, is available for assistance, and

ensures access to the teacher of record. A mentor may also serve as

the teacher of record if the primary district is the provider for

the virtual course and the mentor meets the requirements under

subdivision (e).

pupil and reports the pupil for pupil membership purposes.

(d) "Provider" means the district, intermediate district, or

community college that the primary district pays to provide the

virtual course or the Michigan Virtual University if it is

providing the virtual course.

(e) "Teacher of record" means a teacher who meets all of the

following:

(i) Holds a valid Michigan teaching certificate or a teaching

permit recognized by the department.

(ii) If applicable, is endorsed in the subject area and grade

of the virtual course.

(iii) Is responsible for providing instruction, determining

instructional methods for each pupil, diagnosing learning needs,

assessing pupil learning, prescribing intervention strategies and

modifying lessons, reporting outcomes, and evaluating the effects

of instruction and support strategies.

(iv) Has a personnel identification code provided by the

center.

(v) If the provider is a community college, is an instructor

employed by or contracted through the providing community college.

(f) "Virtual course" means a course of study that is capable

of generating a credit or a grade and that is provided in an

interactive learning environment where the majority of the

curriculum is delivered using the ~~Internet~~ internet and in which

pupils may be separated from their instructor or teacher of record

by time or location, or both.

(g) "Virtual course syllabus" means a document that includes

all of the following:

(i) An alignment document detailing how the course meets

applicable state standards or, if the state does not have state

standards, nationally recognized standards.

(ii) The virtual course content outline.

(iii) The virtual course required assessments.

(iv) The virtual course prerequisites.

(v) Expectations for actual instructor or teacher of record

contact time with the virtual learning pupil and other

communications between a pupil and the instructor or teacher of

record.

(vi) Academic support available to the virtual learning pupil.

(vii) The virtual course learning outcomes and objectives.

(viii) The name of the institution or organization providing

the virtual content.

(ix) The name of the institution or organization providing the

instructor or teacher of record.

(x) The course titles assigned by the provider and the course

titles and course codes from the National Center for Education

Statistics (NCES) school codes for the exchange of data (SCED).

(xi) The number of eligible pupils that will be accepted by

the provider in the virtual course. A primary district that is also

the provider may limit the enrollment to those pupils enrolled in

the primary district.

(xii) The results of the virtual course quality review using

the guidelines and model review process published by the Michigan

Virtual University.

(h) "Virtual learning pupil" means a pupil enrolled in 1 or

more virtual courses.

Sec. 21h. (1) From the appropriation in section 11, there is

allocated $6,000,000.00 for ~~2017-2018~~ 2018-2019 for assisting

districts assigned by the superintendent to participate in a

partnership to improve student achievement. The purpose of the

partnership is to identify district needs, develop intervention

plans, and partner with public, private, and nonprofit

organizations to coordinate resources and improve student

achievement. Assignment of a district to a partnership is at the

sole discretion of the superintendent.

(2) A district assigned to a partnership by the superintendent

is eligible for funding under this section if the district includes

at least 1 school that has been rated with a grade of "F", or

comparable performance rating, in the most recent state

accountability system rating, that is not under the supervision of

the state school reform/redesign office, and that does all of the

following:

(a) Completes a comprehensive needs evaluation in

collaboration with an intermediate school district, community

members, education organizations, and postsecondary institutions,

as applicable and approved by the superintendent, within 90 days of

assignment to the partnership described in this section. The

comprehensive needs evaluation shall include at least all of the

following:

(i) A review of the district's implementation and utilization

of a multi-tiered system of supports to ensure that it is used to

appropriately inform instruction.

(ii) A review of the district and school building leadership

and educator capacity to substantially improve student outcomes.

(iii) A review of classroom, instructional, and operational

practices and curriculum to ensure alignment with research-based

instructional practices and state curriculum standards.

(b) Develops an intervention plan that has been approved by

the superintendent and that addresses the needs identified in the

comprehensive needs evaluation completed under subdivision (a). The

intervention plan shall include at least all of the following:

(i) Specific actions that will be taken by the district and

each of its partners to improve student achievement.

(ii) Specific measurable benchmarks that will be met within 18

months to improve student achievement and identification of

expected student achievement outcomes to be attained within 3 years

after assignment to the partnership.

(3) Upon approval of the intervention plan developed under

subsection (2), the department shall assign a team of individuals

with expertise in comprehensive school and district reform to

partner with the district, the intermediate district, community

organizations, education organizations, and postsecondary

institutions identified in the intervention plan to review the

district's use of existing financial resources to ensure that those

resources are being used as efficiently and effectively as possible

to improve student academic achievement.

(4) Funds allocated under this section may be used to pay for

district expenditures approved by the superintendent to improve

student achievement. Funds may be used for professional development

for teachers or district or school leadership, increased

instructional time, teacher mentors, or other expenditures that

directly impact student achievement and cannot be paid from

existing district financial resources. An eligible district shall

not receive funds under this section for more than 3 years.

Notwithstanding section 17b, payments to eligible districts under

this section shall be paid on a schedule determined by the

department.

(5) The department shall annually report to the legislature on

the activities funded under this section and how those activities

impacted student achievement in eligible districts that received

funds under this section.

Sec. 21j. (1) From the ~~general fund~~ talent investment fund

appropriation in section 11, there is allocated an amount not to

exceed ~~$500,000.00 for 2017-2018~~ $2,500,000.00 for 2018-2019 for

competitive grants to districts or consortia of 2 or more districts

for the design and implementation of competency-based education

programs. ~~to provide enhanced choice to pupils and parents for the~~

~~completion of the requirements for kindergarten through a high~~

~~school diploma, including the Michigan merit standard under~~

~~sections 1278a and 1278b of the revised school code, MCL 380.1278a~~

~~and 380.1278b.~~

(2) A grant under this section shall not exceed $100,000.00.

(3) ~~(2)~~ A district seeking a grant under this section shall

apply in a form and manner prescribed by the department.

Applications under this section shall contain 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 in a

subject area or combined subject areas, including, at least, public

presentations, submission of research papers, attaining marketable

workforce credentials, and mentoring other students. Competency

assessments used to determine mastery must be aligned to Michigan's

academic standards.

(b) Curriculum that allows for a majority of instructional

time to be spent on student-driven projects, including a capstone

project as part of high school graduation requirements, if

applicable. These projects shall include multiple subject areas and

21st century skills such as leadership, teamwork, problem solving,

and communication. Instruction time may be during a nontraditional

school calendar.

student academic achievement pace and ensure that students receive

timely, differentiated academic support based on their individual

learning needs in different subject areas.

(d) An innovative partnership with employers or institutes of

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.

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

of student promotion to a competency-based system of student

promotion. This plan shall include messaging to parents describing

the benefits of, and steps taken to implement, a competency-based

instructional model.

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

development for school instructional and administrative staff.

(g) A commitment to maintain participation in statewide

assessment and accountability systems for students being served by

programs funded under this section.

(h) 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.

(i) ~~(h)~~ Any other information determined by the department to

be necessary to evaluate the grant proposals.

(4) ~~(3)~~ Not later than ~~March 31, 2018,~~ January 31, 2019, the

department, in collaboration with the department of talent and

economic development, shall announce grant recipients. The

department shall provide any necessary and applicable waivers to

grant recipients for the purpose of implementing the proposals,

with the exception of any waiver related to state assessments.

(5) ~~(4) Grants funded under this section for 2017-2018 are~~

~~intended to be the first of 3 years of funding.~~ Upon completion of

the planning phase described in this section, the department shall

collect information necessary from grant recipients to compile a

report. The report shall include, at least, the following

information:

~~(a) A description of program implementation, including when~~

~~implementation will begin, identification of competencies to be~~

~~included, identified best practices for adoption and~~

~~implementation, and types of assessments used to evaluate a~~

~~student's mastery of those competencies.~~

~~(b) The number of students participating.~~

~~(c) Identification of specific barriers for students and~~

~~districts in implementing a competency-based learning instructional~~

~~model and ways to address those barriers.~~

~~(d) The feasibility of expanding competency-based education~~

~~models statewide, including needed policy changes.~~

~~(e) Increases in student achievement, postsecondary~~

~~attainment, employment, and 21st century skills acquisition as a~~

~~result of the transition to competency-based learning and how these~~

~~outcomes can be improved by other districts adopting the model.~~

(a) A description of successes and challenges implementing

competency-based instructional models, including the identification

of specific barriers for pupils and districts in implementing a

competency-based learning instructional model and ways to address

those barriers.

(b) An identification of best practices for adoption and

implementation of a competency-based learning instructional model.

quality competency-based learning instructional model.

(d) The types of assessments used to evaluate a pupil's

mastery of those competencies.

(e) Increases in pupil achievement, postsecondary attainment,

employment, and the acquisition of skills such as leadership,

critical thinking, and perseverance as a result of the transition

to competency-based learning and how these outcomes can be realized

by other districts adopting the model.

(f) The feasibility of expanding competency-based education

models statewide, including needed policy changes.

(6) ~~(5)~~ The report required under this section shall be

provided by the department to the department of talent and economic

development, the house and senate appropriations subcommittees on

school aid, the house and senate fiscal agencies, and the state

budget director no later than December 1, ~~2018.~~2020.

(7) From the talent investment fund appropriation in section

11, there is allocated an amount not to exceed $450,000.00 for

statewide supports and $50,000.00 for administration of grants

under this section. The department shall develop 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 (1) with the goal of offering these tools

statewide. The department shall collaborate with grant recipients

to support the statewide implementation of competency-based

education, utilizing the information collected from the reporting

requirements in subsection (5).

Sec. 22a. (1) From the appropriation in section 11, ~~there is~~

~~allocated an amount not to exceed $5,207,000,000.00 for 2016-2017~~

~~and~~ there is allocated an amount not to exceed ~~$5,181,800,000.00~~

$5,176,000,000.00 for 2017-2018 and there is allocated an amount

not to exceed $5,122,000,000.00 for 2018-2019 for payments to

districts and qualifying public school academies to guarantee each

district and qualifying public school academy an amount equal to

its 1994-95 total state and local per pupil revenue for school

operating purposes under section 11 of article IX of the state

constitution of 1963. Pursuant to section 11 of article IX of the

state constitution of 1963, this guarantee does not apply to a

district in a year in which the district levies a millage rate for

school district operating purposes less than it levied in 1994.

However, subsection (2) applies to calculating the payments under

this section. Funds allocated under this section that are not

expended in the state fiscal year for which they were allocated, as

determined by the department, may be used to supplement the

allocations under sections 22b and 51c in order to fully fund those

calculated allocations for the same fiscal year.

(2) To ensure that a district receives an amount equal to the

district's 1994-95 total state and local per pupil revenue for

school operating purposes, there is allocated to each district a

state portion of the district's 1994-95 foundation allowance in an

amount calculated as follows:

(a) Except as otherwise provided in this subsection, the state

portion of a district's 1994-95 foundation allowance is an amount

equal to the district's 1994-95 foundation allowance or $6,500.00,

whichever is less, minus the difference between the sum of the

product of the taxable value per membership pupil of all property

in the district that is nonexempt property times the district's

certified mills and, for a district with certified mills exceeding

12, the product of the taxable value per membership pupil of

property in the district that is commercial personal property times

the certified mills minus 12 mills and the quotient of the ad

valorem property tax revenue of the district captured under tax

increment financing acts divided by the district's membership. For

a district that has a millage reduction required under section 31

of article IX of the state constitution of 1963, the state portion

of the district's foundation allowance shall be calculated as if

that reduction did not occur. For a receiving district, if school

operating taxes are to be levied on behalf of a dissolved district

that has been attached in whole or in part to the receiving

district to satisfy debt obligations of the dissolved district

under section 12 of the revised school code, MCL 380.12, taxable

value per membership pupil of all property in the receiving

district that is nonexempt property and taxable value per

membership pupil of property in the receiving district that is

commercial personal property do not include property within the

geographic area of the dissolved district; ad valorem property tax

revenue of the receiving district captured under tax increment

financing acts does not include ad valorem property tax revenue

captured within the geographic boundaries of the dissolved district

under tax increment financing acts; and certified mills do not

include the certified mills of the dissolved district. For a

community district, the allocation as otherwise calculated under

this section shall be reduced by an amount equal to the amount of

local school operating tax revenue that would otherwise be due to

the community district if not for the operation of section 386 of

the revised school code, MCL 380.386, and the amount of this

reduction shall be offset by the increase in funding under section

22b(2).

(b) For a district that had a 1994-95 foundation allowance

greater than $6,500.00, the state payment under this subsection

shall be the sum of the amount calculated under subdivision (a)

plus the amount calculated under this subdivision. The amount

calculated under this subdivision shall be equal to the difference

between the district's 1994-95 foundation allowance minus $6,500.00

and the current year hold harmless school operating taxes per

pupil. If the result of the calculation under subdivision (a) is

negative, the negative amount shall be an offset against any state

payment calculated under this subdivision. If the result of a

calculation under this subdivision is negative, there shall not be

a state payment or a deduction under this subdivision. The taxable

values per membership pupil used in the calculations under this

subdivision are as adjusted by ad valorem property tax revenue

captured under tax increment financing acts divided by the

district's membership. For a receiving district, if school

operating taxes are to be levied on behalf of a dissolved district

that has been attached in whole or in part to the receiving

district to satisfy debt obligations of the dissolved district

under section 12 of the revised school code, MCL 380.12, ad valorem

property tax revenue captured under tax increment financing acts do

not include ad valorem property tax revenue captured within the

geographic boundaries of the dissolved district under tax increment

financing acts.

(3) Beginning in 2003-2004, for pupils in membership in a

qualifying public school academy, there is allocated under this

section to the authorizing body that is the fiscal agent for the

qualifying public school academy for forwarding to the qualifying

public school academy an amount equal to the 1994-95 per pupil

payment to the qualifying public school academy under section 20.

(4) A district or qualifying public school academy may use

funds allocated under this section in conjunction with any federal

funds for which the district or qualifying public school academy

otherwise would be eligible.

(5) Except as otherwise provided in this subsection, for a

district that is formed or reconfigured after June 1, 2000 by

consolidation of 2 or more districts or by annexation, the

resulting district's 1994-95 foundation allowance under this

section beginning after the effective date of the consolidation or

annexation shall be the average of the 1994-95 foundation

allowances of each of the original or affected districts,

calculated as provided in this section, weighted as to the

percentage of pupils in total membership in the resulting district

in the state fiscal year in which the consolidation takes place who

reside in the geographic area of each of the original districts. If

an affected district's 1994-95 foundation allowance is less than

the 1994-95 basic foundation allowance, the amount of that

district's 1994-95 foundation allowance shall be considered for the

purpose of calculations under this subsection to be equal to the

amount of the 1994-95 basic foundation allowance. This subsection

does not apply to a receiving district unless there is a subsequent

consolidation or annexation that affects the district.

(6) Payments under this section are subject to section 25g.

(7) As used in this section:

(a) "1994-95 foundation allowance" means a district's 1994-95

foundation allowance calculated and certified by the department of

treasury or the superintendent under former section 20a as enacted

in 1993 PA 336 and as amended by 1994 PA 283.

(b) "Certified mills" means the lesser of 18 mills or the

number of mills of school operating taxes levied by the district in

1993-94.

for which a particular calculation is made.

(d) "Current year hold harmless school operating taxes per

pupil" means the per pupil revenue generated by multiplying a

district's 1994-95 hold harmless millage by the district's current

year taxable value per membership pupil. For a receiving district,

if school operating taxes are to be levied on behalf of a dissolved

district that has been attached in whole or in part to the

receiving district to satisfy debt obligations of the dissolved

district under section 12 of the revised school code, MCL 380.12,

taxable value per membership pupil does not include the taxable

value of property within the geographic area of the dissolved

district.

(e) "Dissolved district" means a district that loses its

organization, has its territory attached to 1 or more other

districts, and is dissolved as provided under section 12 of the

revised school code, MCL 380.12.

(f) "Hold harmless millage" means, for a district with a 1994-

95 foundation allowance greater than $6,500.00, the number of mills

by which the exemption from the levy of school operating taxes on a

homestead, qualified agricultural property, qualified forest

property, supportive housing property, industrial personal

property, commercial personal property, and property occupied by a

public school academy could be reduced as provided in section 1211

of the revised school code, MCL 380.1211, and the number of mills

of school operating taxes that could be levied on all property as

provided in section 1211(2) of the revised school code, MCL

380.1211, as certified by the department of treasury for the 1994

tax year. For a receiving district, if school operating taxes are

to be levied on behalf of a dissolved district that has been

attached in whole or in part to the receiving district to satisfy

debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, school operating taxes do not

include school operating taxes levied within the geographic area of

the dissolved district.

(g) "Homestead", "qualified agricultural property", "qualified

forest property", "supportive housing property", "industrial

personal property", and "commercial personal property" mean those

terms as defined in section 1211 of the revised school code, MCL

380.1211.

(h) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(i) "Nonexempt property" means property that is not a

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, commercial personal property, or property occupied by a

public school academy.

(j) "Qualifying public school academy" means a public school

academy that was in operation in the 1994-95 school year and is in

operation in the current state fiscal year.

(k) "Receiving district" means a district to which all or part

of the territory of a dissolved district is attached under section

12 of the revised school code, MCL 380.12.

(l) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes as defined in

section 20.

(m) "Tax increment financing acts" means 1975 PA 197, MCL

125.1651 to 125.1681, the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830, the local development financing

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

or the corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899.

(n) "Taxable value per membership pupil" means each of the

following divided by the district's membership:

(i) For the number of mills by which the exemption from the

levy of school operating taxes on a homestead, qualified

agricultural property, qualified forest property, supportive

housing property, industrial personal property, commercial personal

property, and property occupied by a public school academy may be

reduced as provided in section 1211 of the revised school code, MCL

380.1211, the taxable value of homestead, qualified agricultural

property, qualified forest property, supportive housing property,

industrial personal property, commercial personal property, and

property occupied by a public school academy for the calendar year

ending in the current state fiscal year. For a receiving district,

if school operating taxes are to be levied on behalf of a dissolved

district that has been attached in whole or in part to the

receiving district to satisfy debt obligations of the dissolved

district under section 12 of the revised school code, MCL 380.12,

mills do not include mills within the geographic area of the

dissolved district.

(ii) For the number of mills of school operating taxes that

may be levied on all property as provided in section 1211(2) of the

revised school code, MCL 380.1211, the taxable value of all

property for the calendar year ending in the current state fiscal

year. For a receiving district, if school operating taxes are to be

levied on behalf of a dissolved district that has been attached in

whole or in part to the receiving district to satisfy debt

obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, school operating taxes do not

include school operating taxes levied within the geographic area of

the dissolved district.

Sec. 22b. (1) For discretionary nonmandated payments to

districts under this section, there is allocated for ~~2016-2017 an~~

~~amount not to exceed $3,841,000,000.00 from the state school aid~~

~~fund and general fund appropriations in section 11 and an amount~~

~~not to exceed $72,000,000.00 from the community district education~~

~~trust fund appropriation in section 11, and there is allocated for~~

2017-2018 an amount not to exceed ~~$3,965,500,000.00~~

$3,947,000,000.00 from the state school aid fund and general fund

appropriations in section 11 and an amount not to exceed

$72,000,000.00 from the community district education trust fund

appropriation in section 11, and there is allocated for 2018-2019

an amount not to exceed $4,239,600,000.00 from the state school aid

fund and general fund appropriations in section 11 and an amount

not to exceed $72,000,000.00 from the community district education

trust fund appropriation in section 11. Except for money allocated

from the community district trust fund, money allocated under this

section that is not expended in the state fiscal year for which it

was allocated, as determined by the department, may be used to

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

fully fund those calculated allocations for the same fiscal year.

(2) Subject to subsection (3) and section 296, the allocation

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

sum of the amounts calculated under sections 20, 20m, 51a(2),

51a(3), and 51a(11), minus the sum of the allocations to the

district under sections 22a and 51c. For a community district, the

allocation as otherwise calculated under this section shall be

increased by an amount equal to the amount of local school

operating tax revenue that would otherwise be due to the community

district if not for the operation of section 386 of the revised

school code, MCL 380.386, and this increase shall be paid from the

community district education trust fund allocation in subsection

(1) in order to offset the absence of local school operating

revenue in a community district in the funding of the state portion

of the foundation allowance under section 20(4).

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

each district shall do all of the following:

(a) Comply with section 1280b of the revised school code, MCL

380.1280b.

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

code, MCL 380.1278a and 380.1278b.

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

specified by the center or the department, as applicable.

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

380.1230g.

(e) Comply with section 21f.

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

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

and other business function software that is compatible with that

of the intermediate district in which the district is located and

with other districts located within that intermediate district.

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

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

state related to commercial or industrial property tax appeals,

including, but not limited to, appeals of classification, that

impact revenues dedicated to the state school aid fund.

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

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

state associated with lawsuits filed by 1 or more districts or

intermediate districts against this state. If the allocation under

this section is insufficient to fully fund all payments required

under this section, the payments under this subsection shall be

made in full before any proration of remaining payments under this

section.

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

constitutional obligations of this state have been fully funded

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

an entity receiving funds under this article that challenges the

legislative determination of the adequacy of this funding or

alleges that there exists an unfunded constitutional requirement,

the state budget director may escrow or allocate from the

discretionary funds for nonmandated payments under this section the

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

payments to districts under subsection (2). If funds are escrowed,

the escrowed funds are a work project appropriation and the funds

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

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

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

completed upon resolution of the litigation.

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

jurisdiction makes a final determination that this state is in

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

1963 regarding state payments to districts, the state budget

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

allocate from the discretionary funds for nonmandated payments

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

amount owed to districts before making any payments to districts

under subsection (2).

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

legislative determination of the adequacy of funding for this

state's constitutional obligations or alleges that there exists an

unfunded constitutional requirement, any interested party may seek

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

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

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

and shall exercise jurisdiction over the claim.

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

local claims review board or a court of competent jurisdiction that

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

constitution of 1963 exceed the amount allocated for discretionary

nonmandated payments under this section, the legislature shall

provide for adequate funding for this state's constitutional

obligations at its next legislative session.

(11) If a lawsuit challenging payments made to districts

related to costs reimbursed by federal title XIX Medicaid funds is

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

potential liability under such a lawsuit, the state budget director

may place funds allocated under this section in escrow or allocate

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

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

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

work project appropriation and the funds are carried forward into

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

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

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

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

right to terminate future federal title XIX Medicaid reimbursement

payments to districts if the amount or allocation of reimbursed

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

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

to ~~1396v.~~1396w-5.

Sec. 22d. (1) From the appropriation in section 11, an amount

not to exceed $5,000,000.00 is allocated for ~~2017-2018~~ 2018-2019

for supplemental payments to rural districts under this section.

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

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

$957,300.00 for payments under this subsection to districts that

meet all of the following:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

least 1 of the following:

(i) Is located in the Upper Peninsula at least 30 miles from

any other public school building.

(ii) Is located on an island that is not accessible by bridge.

(3) The amount of the additional funding to each eligible

district under subsection (2) shall be determined under a spending

plan developed as provided in this subsection and approved by the

superintendent of public instruction. The spending plan shall be

developed cooperatively by the intermediate superintendents of each

intermediate district in which an eligible district is located. The

intermediate superintendents shall review the financial situation

of each eligible district, determine the minimum essential

financial needs of each eligible district, and develop and agree on

a spending plan that distributes the available funding under

subsection (2) to the eligible districts based on those financial

needs. The intermediate superintendents shall submit the spending

plan to the superintendent of public instruction for approval. Upon

approval by the superintendent of public instruction, the amounts

specified for each eligible district under the spending plan are

allocated under subsection (2) and shall be paid to the eligible

districts in the same manner as payments under section 22b.

(4) Subject to subsection (6), from the allocation in

subsection (1), there is allocated for ~~2017-2018~~ 2018-2019 an

amount not to exceed $4,042,700.00 for payments under this

subsection to districts that have 7.3 or fewer pupils per square

mile as determined by the department.

(5) The funds allocated under subsection (4) shall be

allocated on an equal per-pupil basis.

(6) A district receiving funds allocated under subsection (2)

is not eligible for funding allocated under subsection (4).

Sec. 22m. (1) From the appropriations in section 11, there is

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

$2,200,000.00 for supporting the integration of local data systems

into the Michigan data hub network based on common standards and

applications that are in compliance with section 19(6).

(2) An entity that is the fiscal agent for no more than 5

consortia of intermediate districts that previously received

funding from the technology readiness infrastructure grant under

former section 22i for the purpose of establishing regional data

hubs that are part of the Michigan data hub network is eligible for

funding under this section.

(3) The center shall work with an advisory committee composed

of representatives from intermediate districts within each of the

data hub regions to coordinate the activities of the Michigan data

hub network.

(4) The center, in collaboration with the Michigan data hub

network, shall determine the amount of funds distributed under this

section to each participating regional data hub within the network,

based upon a competitive grant process. Entities receiving funding

under this section shall represent geographically diverse areas in

this state.

(5) Notwithstanding section 17b, payments under this section

shall be made on a schedule determined by the center.

(6) To receive funding under this section, a regional data hub

must have a governance model that ensures local control of data,

data security, and student privacy issues. The integration of data

within each of the regional data hubs shall provide for the

actionable use of data by districts and intermediate districts

through common reports and dashboards and for efficiently providing

information to meet state and federal reporting purposes.

(7) ~~Participation~~ All districts must participate in a data hub

region in the Michigan data hub network under this section is

~~voluntary and is not required.~~by 2020-2021.

(8) Entities receiving funding under this section shall use

the funds for all of the following:

(a) Creating an infrastructure that effectively manages the

movement of data between data systems used by intermediate

districts, districts, and other educational organizations in

Michigan based on common data standards to improve student

achievement.

(b) Utilizing the infrastructure to put in place commonly

needed integrations, reducing cost and effort to do that work while

increasing data accuracy and usability.

promoting systems that integrate with the Michigan data hub

network.

(d) Promoting 100% district adoption of the Michigan data hub

network. ~~by September 30, 2018.~~

(e) Ensuring local control of data, data security, and student

data privacy.

(f) Utilizing the infrastructure to promote the actionable use

of data through common reports and dashboards that are consistent

statewide.

(g) Creating a governance model to facilitate sustainable

operations of the infrastructure in the future, including

administration, legal agreements, documentation, staffing, hosting,

and funding.

(h) Evaluating future data initiatives at all levels to

determine whether the initiatives can be enhanced by using the

standardized environment in the Michigan data hub network.

(9) Not later than January 1 ~~, 2018,~~ of each fiscal year, the

center shall prepare a summary report of information provided by

each entity that received funds under this section that includes

measurable outcomes based on the objectives described under this

section. The report shall include a summary of compiled data from

each entity to provide a means to evaluate the effectiveness of the

project. The center shall submit the report to the house and senate

appropriations subcommittees on state school aid and to the house

and senate fiscal agencies.

Sec. 22n. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $11,000,000.00 for ~~2017 2018~~

2018-2019 for additional payments to districts for the higher

instructional costs of educating high school pupils.

(2) A district is eligible for a payment under this section if

it educates pupils in 1 or more of grades 9 to 12.

(3) The payment to each eligible district under this section

shall be an amount equal to $25.00 multiplied by the district's

total pupil membership in grades 9 to 12 as calculated under

section 6 for the current fiscal year. If the allocation under

subsection (1) is insufficient to fully fund payments under this

subsection, the department shall prorate payments under this

section on an equal per-pupil basis.

Sec. 22o. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $100.00 for 2018-2019 to

eligible districts for pupil transportation.

(2) A district is eligible for a payment under this section if

the district provides transportation to general education pupils.

(3) Payments to eligible districts under this section must be

an amount equal to $25.00 multiplied by the district's total

general education riders for the current fiscal year. If the

allocation under subsection (1) is insufficient to fully fund

payments under this subsection, the department shall prorate

payments under this subsection on an equal per-rider basis.

Sec. 24. (1) From the appropriation in section 11, there is

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

$8,000,000.00 for payments to the educating district or

intermediate district for educating pupils assigned by a court or

the department of health and human services to reside in or to

attend a juvenile detention facility or child caring institution

licensed by the department of health and human services and

approved by the department to provide an on-grounds education

program. The amount of the payment under this section to a district

or intermediate district shall be calculated as prescribed under

subsection (2).

(2) The total amount allocated under this section shall be

allocated by paying to the educating district or intermediate

district an amount equal to the lesser of the district's or

intermediate district's added cost or the department's approved

per-pupil allocation for the district or intermediate district. For

the purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils assigned by a court or the department of

health and human services to reside in or to attend a juvenile

detention facility or child caring institution licensed by the

department of health and human services or the department of

licensing and regulatory affairs and approved by the department to

provide an on-grounds education program. Added cost shall be

computed by deducting all other revenue received under this article

for pupils described in this section from total costs, as approved

by the department, in whole or in part, for educating those pupils

in the on-grounds education program or in a program approved by the

department that is located on property adjacent to a juvenile

detention facility or child caring institution. Costs reimbursed by

federal funds are not included.

(b) "Department's approved per-pupil allocation" for a

district or intermediate district shall be determined by dividing

the total amount allocated under this section for a fiscal year by

the full-time equated membership total for all pupils approved by

the department to be funded under this section for that fiscal year

for the district or intermediate district.

(3) A district or intermediate district educating pupils

described in this section at a residential child caring institution

may operate, and receive funding under this section for, a

department-approved on-grounds educational program for those pupils

that is longer than 181 days, but not longer than 233 days, if the

child caring institution was licensed as a child caring institution

and offered in 1991-92 an on-grounds educational program that was

longer than 181 days but not longer than 233 days and that was

operated by a district or intermediate district.

(4) Special education pupils funded under section 53a shall

not be funded under this section.

Sec. 24a. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$1,339,000.00 for 2017-2018~~

$1,355,700.00 for 2018-2019 for payments to intermediate districts

for pupils who are placed in juvenile justice service facilities

operated by the department of health and human services. Each

intermediate district shall receive an amount equal to the state

share of those costs that are clearly and directly attributable to

the educational programs for pupils placed in facilities described

in this section that are located within the intermediate district's

boundaries. The intermediate districts receiving payments under

this section shall cooperate with the department of health and

human services to ensure that all funding allocated under this

section is utilized by the intermediate district and department of

health and human services for educational programs for pupils

described in this section. Pupils described in this section are not

eligible to be funded under section 24. However, a program

responsibility or other fiscal responsibility associated with these

pupils shall not be transferred from the department of health and

human services to a district or intermediate district unless the

district or intermediate district consents to the transfer.

Sec. 24c. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$1,528,400.00 for 2017-2018~~

$1,545,400.00 for 2018-2019 for payments to districts for pupils

who are enrolled in a nationally administered community-based

education and youth mentoring program, known as the youth challenge

program, that is administered by the department of military and

veterans affairs. Both of the following apply to a district

receiving payments under this section:

(a) The district shall contract with the department of

military and veterans affairs to ensure that all funding allocated

under this section is utilized by the district and the department

of military and veterans affairs for the youth challenge program.

(b) The district may retain for its administrative expenses an

amount not to exceed 3% of the amount of the payment the district

receives under this section.

Sec. 25e. (1) The pupil membership transfer application and

pupil transfer process administered by the center under this

section shall be used for processing pupil transfers.

(2) If a pupil counted in membership for the pupil membership

count day transfers from a district or intermediate district to

enroll in another district or intermediate district after the pupil

membership count day and before the supplemental count day and, due

to the pupil's enrollment and attendance status as of the pupil

membership count day, the pupil was not counted in membership in

the educating district or intermediate district, the educating

district or intermediate district may report the enrollment and

attendance information to the center through the pupil transfer

process within 30 days after the transfer or within 30 days after

the pupil membership count certification date, whichever is later.

Pupil transfers may be submitted no earlier than the first day

after the certification deadline for the pupil membership count day

and before the supplemental count day. Upon receipt of the transfer

information under this subsection indicating that a pupil has

enrolled and is in attendance in an educating district or

intermediate district as described in this subsection, the pupil

transfer process shall do the following:

(a) Notify the district in which the pupil was previously

enrolled.

(b) Notify both the pupil auditing staff of the intermediate

district in which the educating district is located and the pupil

auditing staff of the intermediate district in which the district

that previously enrolled the pupil is located. The pupil auditing

staff shall investigate a representative sample based on required

audit sample sizes in the pupil auditing manual and may deny the

pupil membership transfer.

department for use in adjusting the state aid payment system.

(3) The department shall do all of the following:

(a) Adjust the membership calculation for each district or

intermediate district in which the pupil was previously counted in

membership or that previously received an adjustment in its

membership calculation under this section due to a change in the

pupil's enrollment and attendance so that the district's or

intermediate district's membership is prorated to allow the

district or intermediate district to receive for each school day,

as determined by the financial calendar furnished by the center, in

which the pupil was enrolled and in attendance in the district or

intermediate district an amount equal to 1/105 of a full-time

equated membership claimed in the fall pupil membership count. The

district or intermediate district shall receive a prorated

foundation allowance in an amount equal to the product of the

adjustment under this subdivision for the district or intermediate

district multiplied by the foundation allowance or per-pupil

payment as calculated under section 20 for the district or

intermediate district. The foundation allowance or per-pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

(b) Adjust the membership calculation for the educating

district or intermediate district in which the pupil is enrolled

and is in attendance so that the district's or intermediate

district's membership is increased to allow the district or

intermediate district to receive an amount equal to the difference

between the full-time equated membership claimed in the fall pupil

membership count and the sum of the adjustments calculated under

subdivision (a) for each district or intermediate district in which

the pupil was previously enrolled and in attendance. The educating

district or intermediate district shall receive a prorated

foundation allowance in an amount equal to the product of the

adjustment under this subdivision for the educating district or

intermediate district multiplied by the per-pupil payment as

calculated under section 20 for the educating district or

intermediate district. The foundation allowance or per-pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

(4) The changes in calculation of state school aid required

under subsection (3) shall take effect as of the date that the

pupil becomes enrolled and in attendance in the educating district

or intermediate district, and the department shall base all

subsequent payments under this article for the fiscal year to the

affected districts or intermediate districts on this recalculation

of state school aid.

(5) If a pupil enrolls in an educating district or

intermediate district as described in subsection (2), the district

or intermediate district in which the pupil is counted in

membership or another educating district or intermediate district

that received an adjustment in its membership calculation under

subsection (3), if any, and the educating district or intermediate

district shall provide to the center and the department all

information they require to comply with this section.

(6) The portion of the full-time equated pupil membership for

which a pupil is enrolled in 1 or more online courses under section

21f that is representative of the amount that the primary district

paid in course costs to the course provider shall not be counted or

transferred under the pupil transfer process under this section.

~~(7) It is the intent of the legislature that the center~~

~~determine the number of pupils who did not reside in this state as~~

~~of the 2018-2019 pupil membership count day but who newly enrolled~~

~~in a district or intermediate district after that pupil membership~~

~~count day and before the 2018-2019 supplemental count day. It is~~

~~the intent of the legislature that the center further determine the~~

~~number of pupils who were counted in membership for the 2018-2019~~

~~pupil membership count day but who left this state before the 2018-~~

~~2019 supplemental count day. In 2019-2020, the center shall provide~~

~~a report to the senate and house appropriations subcommittees on~~

~~state school aid, and to the senate and house fiscal agencies,~~

~~detailing the number of pupils transferring in from another state~~

~~or transferring out from this state between the pupil membership~~

~~count day and supplemental count day as described in this~~

~~subsection. The center shall include in the report a discussion of~~

~~benefits and obstacles to developing a pupil enrollment process for~~

~~pupils who newly enroll in a district or intermediate district~~

~~after the pupil membership count day and before the supplemental~~

~~count day, and developing a process for deducting pupils who were~~

~~counted on the pupil membership count day and transfer out of this~~

~~state before the supplemental count day.~~

(7) ~~(8)~~ As used in this section:

(a) "Educating district or intermediate district" means the

district or intermediate district in which a pupil enrolls after

the pupil membership count day or after an adjustment was made in

another district's or intermediate district's membership

calculation under this section due to the pupil's enrollment and

attendance.

(b) "Pupil" means that term as defined under section 6 and

also children receiving early childhood special education programs

and services.

Sec. 25f. (1) From the state school aid fund money

appropriated in section 11, there is allocated an amount not to

exceed ~~$750,000.00~~ $1,000,000.00 for ~~2017-2018~~ 2018-2019 for

payments to strict discipline academies established under sections

1311b to 1311m of the revised school code, MCL 380.1311b to

380.1311m, as provided under this section.

(2) In order to receive funding under this section, a strict

discipline academy shall first comply with section 25e and use the

pupil transfer process under that section for changes in enrollment

as prescribed under that section.

(3) The total amount allocated to a strict discipline academy

under this section ~~is an amount equal to~~ must first be distributed

as the lesser of the strict discipline academy's added cost or the

department's approved per-pupil allocation for the strict

discipline academy. Any funds remaining after the first

distribution must be distributed by prorating on an equal per-pupil

membership basis, not to exceed a strict discipline academy's added

cost. However, the sum of the amounts received by a strict

discipline academy under this section and under section 24 shall

not exceed the product of the strict discipline academy's per-pupil

allocation calculated under section 20 multiplied by the strict

discipline academy's full-time equated membership. The department

shall allocate funds to strict discipline academies under this

section on a monthly basis. For the purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils enrolled and in regular daily attendance

at a strict discipline academy. Added cost shall be computed by

deducting all other revenue received under this article for pupils

described in this subsection from total costs, as approved by the

department, in whole or in part, for educating those pupils in a

strict discipline academy. The department shall include all costs

including, but not limited to, educational costs, insurance,

management fees, technology costs, legal fees, auditing fees,

interest, pupil accounting costs, and any other administrative

costs necessary to operate the program or to comply with statutory

requirements. Costs reimbursed by federal funds are not included.

(b) "Department's approved per-pupil allocation" for a strict

discipline academy shall be determined by dividing the total amount

allocated under this subsection for a fiscal year by the full-time

equated membership total for all pupils approved by the department

to be funded under this subsection for that fiscal year for the

strict discipline academy.

(4) Special education pupils funded under section 53a shall

not be funded under this section.

(5) If the funds allocated under this section are insufficient

to fully fund the adjustments under subsection (3), payments under

this section shall be prorated on an equal per-pupil basis.

(6) Payments to districts under this section shall be made

according to the payment schedule under section 17b.

Sec. 25g. (1) From the state school aid fund money

appropriated in section 11, there is allocated an amount not to

exceed ~~$750,000.00~~ $1,000,000.00 for ~~2017-2018~~ 2018-2019 for the

purposes of this section. If the operation of the special

membership counting provisions under section 6(4)(dd) and the other

membership counting provisions under section 6(4) result in a pupil

being counted as more than 1.0 FTE in a fiscal year, then the

payment made for the pupil under sections 22a and 22b shall not be

based on more than 1.0 FTE for that pupil, and that portion of the

FTE that exceeds 1.0 shall be paid under this section in an amount

equal to that portion multiplied by the educating district's

foundation allowance or per-pupil payment calculated under section

20.

(2) Special education pupils funded under section 53a shall

not be funded under this section.

(3) If the funds allocated under this section are insufficient

to fully fund the adjustments under subsection (1), payments under

this section shall be prorated on an equal per-pupil basis.

(4) Payments to districts under this section shall be made

according to the payment schedule under section 17b.

Sec. 25h. (1) From the funds appropriated in section 11, there

is allocated for 2018-2019 an amount not to exceed $100.00 to an

eligible district for a program to reduce the number of high school

dropouts.

(2) A district is eligible for funds under this section if the

district meets all of the following:

(a) Has a pupil membership greater than 15,000.

(b) Is located in an intermediate district for which the

combined pupil memberships of all of its constituent districts is

greater than 100,000 and less than 120,000.

strategies of the department's top ten in ten and the

recommendations of the career pathway alliance to increase district

graduation rates, attendance rates, and career readiness for at-

risk youth.

Sec. 26a. From the funds appropriated in section 11, there is

allocated an amount not to exceed ~~$17,000,000.00 each fiscal year~~

~~for 2016-2017 and~~ $15,000,000.00 for 2017-2018 and there is

allocated an amount not to exceed $15,000,000.00 for 2018-2019 to

reimburse districts and intermediate districts pursuant to section

12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692,

for taxes levied in ~~2016 and 2017~~ 2017 and 2018, as applicable. The

allocations shall be made not later than 60 days after the

department of treasury certifies to the department and to the state

budget director that the department of treasury has received all

necessary information to properly determine the amounts due to each

eligible recipient.

Sec. 26b. (1) From the appropriation in section 11, there is

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

$4,405,100.00 for payments to districts, intermediate districts,

and community college districts for the portion of the payment in

lieu of taxes obligation that is attributable to districts,

intermediate districts, and community college districts ~~pursuant to~~

under section 2154 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.2154.

(2) If the amount appropriated under this section is not

sufficient to fully pay obligations under this section, payments

shall be prorated on an equal basis among all eligible districts,

intermediate districts, and community college districts.

Sec. 26c. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$1,500,000.00~~ $1,600,000.00 for

2017-2018 and there is allocated an amount not to exceed

$3,000,000.00 for 2018-2019 to the promise zone fund created in

subsection (3). The funds allocated under this section reflect the

amount of revenue from the collection of the state education tax

captured under section 17(2) of the Michigan promise zone authority

act, 2008 PA 549, MCL 390.1677.

(2) Funds allocated to the promise zone fund under this

section shall be used solely for payments to eligible districts and

intermediate districts, in accordance with section 17(3) of the

Michigan promise zone authority act, 2008 PA 549, MCL 390.1677,

that have a promise zone development plan approved by the

department of treasury under section 7 of the Michigan promise zone

authority act, 2008 PA 549, MCL 390.1667. Eligible districts and

intermediate districts shall use payments made under this section

for reimbursement for qualified educational expenses as defined in

section 3 of the Michigan promise zone authority act, 2008 PA 549,

MCL 390.1663.

(3) The promise zone fund is created as a separate account

within the state school aid fund to be used solely for the purposes

of the Michigan promise zone authority act, 2008 PA 549, MCL

390.1661 to 390.1679. All of the following apply to the promise

zone fund:

(a) The state treasurer shall direct the investment of the

promise zone fund. The state treasurer shall credit to the promise

zone fund interest and earnings from fund investments.

(b) Money in the promise zone fund at the close of a fiscal

year shall remain in the promise zone fund and shall not lapse to

the general fund.

(4) Subject to subsection (2), the state treasurer may make

payments from the promise zone fund to eligible districts and

intermediate districts pursuant to the Michigan promise zone

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

for the purposes of a promise zone authority created under that

act.

(5) Notwithstanding section 17b, payments under this section

shall be paid on a schedule determined by the department.

Sec. 31a. (1) From the state school aid fund money

appropriated in section 11, there is allocated for ~~2017-2018~~ 2018-

2019 an amount not to exceed $510,207,300.00 for payments to

eligible districts and eligible public school academies for the

purposes of ensuring that pupils are proficient in English language

arts by the end of grade 3, that pupils are proficient in

mathematics by the end of grade 8, that pupils are attending school

regularly, that high school graduates are career and college ready,

and for the purposes under subsections (7) and (8).

(2) For a district that has combined state and local revenue

per membership pupil under sections 20 and 20m that is greater than

the basic foundation allowance under section 20 for the current

fiscal year, the allocation under this section shall be an amount

equal to 30% of the allocation for which it would otherwise be

eligible under this section before any proration under subsection

(14).

(3) For a district or public school academy to be eligible to

receive funding under this section, other than funding under

subsection (7) or (8), the district or public school academy, for

grades K to 3, shall comply with the requirements under section

1280f of the revised school code, MCL 380.1280f, and shall use

resources to address early literacy and numeracy, and for at least

grades 4 K to 8 12 or, if the district or public school academy

does not operate all of grades 4 K to 8, 12, for all of the grades

it operates, must implement a multi-tiered system of supports that

is an evidence-based ~~model~~ framework that uses data-driven problem

solving to integrate academic and behavioral instruction and that

uses intervention delivered to all pupils in varying intensities

based on pupil needs. ~~This~~ The multi-tiered system of supports

described in this subsection must provide at least all of the

following essential ~~elements:~~components:

(a) ~~Implements effective instruction for all learners.~~Team-

based leadership.

(b) ~~Intervenes early.~~A tiered delivery system.

~~(c) Provides a multi-tiered model of instruction and~~

~~intervention that provides the following:~~

(i~~) A core curriculum and classroom interventions available to~~

~~all pupils that meet the needs of most pupils.~~

(ii~~) Targeted group interventions.~~

(~~iii~~~~) Intense individual interventions.~~

interventions, and supports.

(d) ~~Monitors pupil progress to inform instruction.~~A

comprehensive screening and assessment system.

(e) ~~Uses data to make instructional decisions.~~Continuous data-

based decision making.

~~(f) Uses assessments including universal screening,~~

~~diagnostics, and progress monitoring.~~

~~(g) Engages families and the community.~~

~~(h) Implements evidence-based, scientifically validated,~~

~~instruction and intervention.~~

~~(i) Implements instruction and intervention practices with~~

~~fidelity.~~

~~(j) Uses a collaborative problem-solving model.~~

(4) Except as otherwise provided in this subsection, an

eligible district or eligible public school academy shall receive

under this section for each membership pupil in the district or

public school academy who is determined to be economically

disadvantaged, as reported to the center in the form and manner

prescribed by the center not later than the fifth Wednesday after

the pupil membership count day of the immediately preceding fiscal

year, an amount per pupil equal to 11.5% of the statewide weighted

average foundation allowance. However, a public school academy that

began operations as a public school academy after the pupil

membership count day of the immediately preceding school year shall

receive under this section for each membership pupil in the public

school academy, who is determined to be economically disadvantaged,

as reported to the center in the form and manner prescribed by the

center not later than the fifth Wednesday after the pupil

membership count day of the current fiscal year, an amount per

pupil equal to 11.5% of the statewide weighted average foundation

allowance.

(5) Except as otherwise provided in this section, a district

or public school academy receiving funding under this section shall

use that money only to provide instructional programs and direct

noninstructional services, including, but not limited to, medical,

mental health, or counseling services, for at-risk pupils; for

school health clinics; and for the purposes of subsection (6), (7),

or (8). In addition, a district that is a school district of the

first class or a district or public school academy in which at

least 50% of the pupils in membership were determined to be

economically disadvantaged in the immediately preceding state

fiscal year, as determined and reported as described in subsection

(4), may use not more than 20% of the funds it receives under this

section for school security. A district or public school academy

shall not use any of that money for administrative costs. The

instruction or direct noninstructional services provided under this

section may be conducted before or after regular school hours or by

adding extra school days to the school year.

(6) A district or public school academy that receives funds

under this section and that operates a school breakfast program

under section 1272a of the revised school code, MCL 380.1272a,

shall use from the funds received under this section an amount, not

to exceed $10.00 per pupil for whom the district or public school

academy receives funds under this section, necessary to pay for

costs associated with the operation of the school breakfast

program.

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

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

$6,057,300.00 to support primary health care services provided to

children and adolescents up to age 21. These funds shall be

expended in a form and manner determined jointly by the department

and the department of health and human services. If any funds

allocated under this subsection are not used for the purposes of

this subsection for the fiscal year in which they are allocated,

those unused funds shall be used that fiscal year to avoid or

minimize any proration that would otherwise be required under

subsection (14) for that fiscal year.

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

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

$5,150,000.00 for the state portion of the hearing and vision

screenings as described in section 9301 of the public health code,

1978 PA 368, MCL 333.9301. A local public health department shall

pay at least 50% of the total cost of the screenings. The frequency

of the screenings shall be as required under R 325.13091 to R

325.13096 and R 325.3271 to R 325.3276 of the Michigan

Administrative Code. Funds shall be awarded in a form and manner

approved jointly by the department and the department of health and

human services. Notwithstanding section 17b, payments to eligible

entities under this subsection shall be paid on a schedule

determined by the department.

(9) Each district or public school academy receiving funds

under this section shall submit to the department by July 15 of

each fiscal year a report, in the form and manner prescribed by the

department, that includes a brief description of each program

conducted or services performed by the district or public school

academy using funds under this section, the amount of funds under

this section allocated to each of those programs or services, the

total number of at-risk pupils served by each of those programs or

services, and the data necessary for the department and the

department of health and human services to verify matching funds

for the temporary assistance for needy families program. In

prescribing the form and manner of the report, the department shall

ensure that districts are allowed to expend funds received under

this section on any activities that are permissible under this

section. If a district or public school academy does not comply

with this subsection, the department shall withhold an amount equal

to the August payment due under this section until the district or

public school academy complies with this subsection. If the

district or public school academy does not comply with this

subsection by the end of the state fiscal year, the withheld funds

shall be forfeited to the school aid fund.

(10) In order to receive funds under this section, a district

or public school academy shall allow access for the department or

the department's designee to audit all records related to the

program for which it receives those funds. The district or public

school academy shall reimburse the state for all disallowances

found in the audit.

(11) Subject to subsections (6), (7), and (8), for schools in

which more than 50% of pupils are identified as at-risk, a district

or public school academy may use ~~up to 100% of~~ the funds it

receives under this section to implement schoolwide ~~reform in~~

~~schools with 40% or more of their pupils identified as at-risk~~

~~pupils by providing instructional or noninstructional services~~

~~consistent with the school improvement plan.~~reforms by providing

instructional or noninstructional services consistent with the

school improvement plan that are tier 1 evidence-based, high-

quality academic, behavioral, and social-emotional instruction, and

part of the district's multi-tiered system of supports. Decisions

on implementing schoolwide reforms must be guided by the district's

comprehensive needs assessment and must be included in the district

improvement plan. Schoolwide reforms must include parent and

community supports, activities, and services, that may include the

pathways to potential program created by the department of health

and human services or the communities in schools program.

(12) A district or public school academy that receives funds

under this section may use up to 3% 5% of those funds to provide

research-based professional development and to implement a coaching

model that supports the multi-tiered system of supports framework.

Professional development may be provided to district and school

leadership and teachers ~~that is~~ and must be aligned to professional

learning standards; is integrated into district, school building,

and classroom practices; and is solely related to the following:

(a) Implementing the multi-tiered system of supports required

in subsection (3) with fidelity and utilizing the data from that

system to inform curriculum and instruction.

(b) Implementing section 1280f of the revised school code, MCL

380.1280f, as required under subsection (3), with fidelity.

(13) A district or public school academy that receives funds

under this section may use funds received under this section to

support instructional or behavioral coaches. Funds used for this

purpose are not subject to the cap under subsection (12).

(14) If necessary, and before any proration required under

section 296, the department shall prorate payments under this

section by reducing the amount of the allocation as otherwise

calculated under this section by an equal percentage per district.

(15) If a district is dissolved pursuant to section 12 of the

revised school code, MCL 380.12, the intermediate district to which

the dissolved school district was constituent shall determine the

estimated number of pupils that are economically disadvantaged and

that are enrolled in each of the other districts within the

intermediate district and provide that estimate to the department

for the purposes of distributing funds under this section within 60

days after the school district is declared dissolved.

(16) Beginning in 2018-2019, if a district or public school

academy does not demonstrate to the satisfaction of the department

that at least 50% of at-risk pupils are proficient in English

language arts by the end of grade 3 as measured by the state

assessment for the immediately preceding school year, demonstrate

to the satisfaction of the department that at least 50% of at-risk

pupils are proficient in mathematics by the end of grade 8, as

measured by the state assessment for the immediately preceding

school year, and demonstrate to the satisfaction of the department

improvement over each of the 3 immediately preceding school years

in the percentage of at-risk pupils that are career- and college-

ready as determined by proficiency on the English language arts,

mathematics, and science content area assessments on the grade 11

summative assessment under section 1279g(2)(a) of the revised

school code, MCL 380.1279g, the district or public school academy

shall ensure all of the following:

(a) The district or public school academy shall determine the

proportion of total at-risk pupils that represents the number of

pupils in grade 3 that are not proficient in English language arts

by the end of grade 3, and the district or public school academy

shall expend that same proportion multiplied by ~~1/2~~ 1/3 of its

total at-risk funds under this section on tutoring and other

methods of improving grade 3 English language arts proficiency.

(b) The district or public school academy shall determine the

proportion of total at-risk pupils that represents the number of

pupils in grade 8 that are not proficient in mathematics by the end

of grade 8, and the district or public school academy shall expend

that same proportion multiplied by 1/3 of its total at-risk funds

under this section on tutoring and other methods of improving grade

8 mathematics proficiency.

the proportion of total at-risk pupils that represent the number of

pupils in grade 11 that are not career- and college-ready as

measured by the student's score on the English language arts,

mathematics, and science content area assessments on the grade 11

summative assessment under section 1279g(2)(a) of the revised

school code, MCL 380.1279g, and the district or public school

academy shall expend that same proportion multiplied by ~~1/2~~ 1/3 of

its total at-risk funds under this section on tutoring and other

activities to improve scores on the college entrance examination

portion of the Michigan merit examination.

(17) As used in subsection (16), "total at-risk pupils" means

the sum of the number of pupils in grade 3 that are not proficient

in English language arts by the end of ~~third~~ grade 3 as measured on

the state assessment, the number of pupils in grade 8 that are not

proficient in mathematics by the end of grade 8 as measured on the

state assessment, and the number of pupils in grade 11 that are not

career- and college-ready as measured by the student's score on the

English language arts, mathematics, and science content area

assessments on the grade 11 summative assessment under section

1279g(2)(a) of the revised school code, MCL 380.1279g.

(18) A district or public school academy that receives funds

under this section may use funds received under this section to

provide an anti-bullying or crisis intervention program.

(19) The department shall collaborate with the department of

health and human services to prioritize assigning Pathways to

Potential Success coaches to elementary schools that have a high

percentage of pupils in grades K to 3 who are not proficient in

English language arts, based upon state assessments for pupils in

those grades.

~~(20) For the purpose of determining the number of economically~~

~~disadvantaged pupils enrolled in a community district for 2017-~~

~~2018, disadvantaged pupils who were enrolled in the education~~

~~achievement system for 2016-2017 shall be considered to have been~~

~~enrolled in the community district for 2016-2017.~~

(20) ~~(21)~~ As used in this section:

(a) "At-risk pupil" means a pupil for whom the district has

documentation that the pupil meets any of the following criteria:

(i) The pupil is economically disadvantaged.

(ii) The pupil is an English language learner.

(iii) The pupil is chronically absent as defined by and

reported to the center.

(iv) The pupil is a victim of child abuse or neglect.

(v) The pupil is a pregnant teenager or teenage parent.

(vi) The pupil has a family history of school failure,

incarceration, or substance abuse.

(vii) The pupil is an immigrant who has immigrated within the

immediately preceding 3 years.

(viii) The pupil did not complete high school in 4 years and

is still continuing in school as identified in the Michigan cohort

graduation and dropout report.

(ix) For pupils for whom the results of the state summative

assessment have been received, is a pupil who did not achieve

proficiency on the English language arts, mathematics, science, or

social studies content area assessment.

(x) Is a pupil who is at risk of not meeting the district's or

public school academy's core academic curricular objectives in

English language arts or mathematics, as demonstrated on local

assessments.

(b) "Economically disadvantaged" means a pupil who has been

determined eligible for free or reduced-price meals as determined

under the Richard B. Russell national school lunch act, 42 USC 1751

to 1769j; who is in a household receiving supplemental nutrition

assistance program or temporary assistance for needy families

assistance; or who is homeless, migrant, or in foster care, as

reported to the center.

proficient pupils who speak a language other than English as their

primary language and have difficulty speaking, reading, writing, or

understanding English as reported to the center.

(d) "Statewide weighted average foundation allowance" means

the number that is calculated by adding together the result of each

district's or public school academy's foundation allowance or per

pupil payment calculated under section 20 multiplied by the number

of pupils in membership in that district or public school academy,

and then dividing that total by the statewide number of pupils in

membership. For the purposes of this calculation, a district's

foundation allowance shall not exceed the basic foundation

allowance under section 20 for the current state fiscal year.

Sec. 31b. (1) From the appropriations in section 11, there is

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

2019 for grants to at-risk districts for implementing a balanced

calendar instructional program for at least 1 of its schools.

(2) The department shall select districts for grants under

this section from among applicant districts that meet both of the

following:

(a) The district meets 1 or both of the following:

(i) Is eligible in ~~2017-2018~~ 2018-2019 for the community

eligibility option for free and reduced price lunch under 42 USC

1759a.

(ii) At least 50% of the pupils in membership in the district

met the income eligibility criteria for free breakfast, lunch, or

milk in the immediately preceding state fiscal year, as determined

under the Richard B. Russell national school lunch act, 42 USC 1751

to 1769j.

(b) The board of the district has adopted a resolution stating

that the district will implement for the first time a balanced

calendar instructional program that will begin in ~~2018-2019~~ 2019-

2020 for at least 1 school operated by the district and committing

to providing the balanced calendar instructional program in each of

those schools for at least 3 school years.

(3) A district seeking a grant under this section shall apply

to the department in the form and manner prescribed by the

department not later than December 1, ~~2017.~~ 2018. The department

shall select districts for grants and make notification not later

than February 1, ~~2018.~~2019.

(4) The department shall award grants under this section on a

competitive basis, but shall give priority based solely on

consideration of the following criteria:

(a) Giving priority to districts that, in the immediately

preceding fiscal year, had lower general fund balances as a

percentage of revenues.

(b) Giving priority to districts that operate at least 1

school that has been identified by the department as either a

priority school or a focus school.

districts.

(5) The amount of a grant under this section to any 1 district

shall not exceed $750,000.00.

(6) A grant payment under this section to a district shall be

used for necessary modifications to instructional facilities and

other nonrecurring costs of preparing for the operation of a

balanced calendar instructional program as approved by the

department.

(7) A district receiving a grant under this section is not

required to provide more than the minimum number of days and hours

of pupil instruction prescribed under section 101, but shall spread

at least those minimum amounts of pupil instruction over the entire

year in each of its schools in which a balanced calendar

instructional calendar is implemented. The district shall commit to

providing the balanced calendar instructional calendar in each of

those schools for at least 3 school years.

(8) For a district receiving a grant under this section,

excessive heat is considered to be a condition not within the

control of school authorities for the purpose of days or hours

being counted as days or hours of pupil instruction under section

101(4).

(9) Notwithstanding section 17b, grant payments to districts

under this section shall be paid on a schedule determined by the

department.

Sec. 31d. (1) From the appropriations in section 11, there is

allocated an amount not to exceed ~~$22,495,100.00~~ $22,802,000.00 for

2017-2018 and there is allocated an amount not to exceed

$23,144,000.00 for 2018-2019 for the purpose of making payments to

districts and other eligible entities under this section.

(2) The amounts allocated from state sources under this

section shall be used to pay the amount necessary to reimburse

districts for 6.0127% of the necessary costs of the state mandated

portion of the school lunch programs provided by those districts.

The amount due to each district under this section shall be

computed by the department using the methods of calculation adopted

by the Michigan supreme court in the consolidated cases known as

~~Durant~~ ~~v State of Michigan,~~ Durant v State of Michigan, 456 Mich

175 (1997).

(3) The payments made under this section include all state

payments made to districts so that each district receives at least

6.0127% of the necessary costs of operating the state mandated

portion of the school lunch program in a fiscal year.

(4) The payments made under this section to districts and

other eligible entities that are not required under section 1272a

of the revised school code, MCL 380.1272a, to provide a school

lunch program shall be in an amount not to exceed $10.00 per

eligible pupil plus 5 cents for each free lunch and 2 cents for

each reduced price lunch provided, as determined by the department.

(5) From the federal funds appropriated in section 11, there

is allocated for ~~2017-2018~~ 2018-2019 all available federal funding,

estimated at $520,000,000.00 for the national school lunch program

and all available federal funding, estimated at $3,200,000.00 for

the emergency food assistance program.

(6) Notwithstanding section 17b, payments to eligible entities

other than districts under this section shall be paid on a schedule

determined by the department.

(7) In purchasing food for a school lunch program funded under

this section, preference shall be given to food that is grown or

produced by Michigan businesses if it is competitively priced and

of comparable quality.

Sec. 31f. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $4,500,000.00 ~~each fiscal year~~

~~for 2016-2017 and for 2017-2018~~ for 2018-2019 for the purpose of

making payments to districts to reimburse for the cost of providing

breakfast.

(2) The funds allocated under this section for school

breakfast programs shall be made available to all eligible

applicant districts that meet all of the following criteria:

(a) The district participates in the federal school breakfast

program and meets all standards as prescribed by 7 CFR parts 220

and 245.

(b) Each breakfast eligible for payment meets the federal

standards described in subdivision (a).

(3) The payment for a district under this section is at a per

meal rate equal to the lesser of the district's actual cost or 100%

of the statewide average cost of a breakfast served, as determined

and approved by the department, less federal reimbursement,

participant payments, and other state reimbursement. The statewide

average cost shall be determined by the department using costs as

reported in a manner approved by the department for the preceding

school year.

(4) Notwithstanding section 17b, payments under this section

may be made pursuant to an agreement with the department.

(5) In purchasing food for a school breakfast program funded

under this section, preference shall be given to food that is grown

or produced by Michigan businesses if it is competitively priced

and of comparable quality.

Sec. 31j. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed ~~$375,000.00~~

$425,000.00 for ~~2017-2018~~ 2018-2019 for a pilot project to support

districts in the purchase of locally grown fruits and vegetables as

described in this section.

(2) The department shall provide funding in an amount equal to

$125,000.00 per region to districts in prosperity regions 2, 4, and

9 for the pilot project described under this section. In addition,

the department shall provide funding in an amount equal to

$50,000.00 to districts in prosperity region 8 for the pilot

project described under this section. From the funding to districts

in subsection (1), funding retained by prosperity regions that

administer the project shall not exceed 10%, and funding retained

by the department for administration shall not exceed 6%. A

prosperity region may enter into a memorandum of understanding with

the department or another prosperity region, or both, to administer

the project. If the department administers the project for a

prosperity region, the department may retain up to 10% of that

prosperity region's funding for administration.

(3) The department shall develop and implement a competitive

grant program for districts within the identified prosperity

regions to assist in paying for the costs incurred by the district

to purchase or increase purchases of whole or minimally processed

fruits, vegetables, and legumes grown in this state. The maximum

amount that may be drawn down on a grant to a district shall be

based on the number of meals served by the school district during

the previous school year under the Richard B. Russell national

school lunch act, 42 USC 1751 to 1769j. The department shall

collaborate with the Michigan department of agriculture and rural

development to provide training to newly participating schools and

electronic information on Michigan agriculture.

(4) The goals of the pilot project include improving daily

nutrition and eating habits for children through the school

settings while investing in Michigan's agricultural and related

food business economy.

(5) A district that receives a grant under this section shall

use those funds for the costs incurred by the school district to

purchase whole or minimally processed fruits, vegetables, and

legumes that meet all of the following:

(a) Are purchased on or after the date the district received

notification from the department of the amount to be distributed to

the district under this subsection, including purchases made to

launch meals in September ~~2017~~ 2018 for the ~~2017-2018~~ 2018-2019

school year.

(b) Are grown in this state and, if minimally processed, are

also processed in this state.

States Department of Agriculture's child nutrition programs.

(6) For Michigan-grown fruits, vegetables, and legumes that

satisfy the requirements of subsection (5), matching reimbursements

shall be made in an amount not to exceed 10 cents for every school

meal that is served as part of the United States Department of

Agriculture's child nutrition programs and that uses Michigan-grown

fruits, vegetables, and legumes.

(7) A district that receives a grant for reimbursement under

this section shall use the grant to purchase whole or minimally

processed fruits, vegetables, and legumes that are grown in this

state and, if minimally processed, are also processed in this

state.

(8) In awarding grants under this section, the department

shall work in conjunction with prosperity region offices, in

consultation with Michigan-based farm to school resource

organizations, to develop scoring criteria that assess an

applicant's ability to procure Michigan-grown products, prepare and

menu Michigan-grown products, promote and market Michigan-grown

products, and submit letters of intent from districts on plans for

educational activities that promote the goals of the program.

(9) The department shall give preference to districts that

propose educational activities that meet 1 or more of the

following: promote healthy food activities; have clear educational

objectives; involve parents or the community; and connect to a

school's farm-to-school procurement activities.

(10) In awarding grants, the department shall also consider

all of the following: the percentage of children who qualify for

free or reduced price school meals under the Richard B. Russell

national school lunch act, 42 USC 1751 to 1769j; the variety of

school sizes and geographic locations within the identified

prosperity regions; and existing or future collaboration

opportunities between more than 1 district in a prosperity region.

(11) As a condition of receiving a grant under this section, a

district shall provide or direct its vendors to provide to

prosperity region offices copies of monthly receipts that show the

quantity of different Michigan-grown fruits, vegetables, and

legumes purchased, the amount of money spent on each of these

products, and the name and Michigan location of the farm that grew

the products. The district shall also provide to the prosperity

region monthly lunch numbers and lunch participation rates, and

calendars or monthly menus noting when and how Michigan-grown

products were used in meals. The district and school food service

director or directors also shall agree to respond to brief online

surveys and to provide a report that shows the percentage

relationship of Michigan spending compared to total food spending.

Not later than March 1, 2018, each prosperity region office, either

on its own or in conjunction with another prosperity region, shall

submit a report to the department on expected outcomes and related

measurements for economic development and children's nutrition and

readiness to learn based on progress so far. The report shall

include at least all of the following:

(a) The extent to which farmers and related businesses,

including distributors and processors, see an increase in market

opportunities and income generation through sales of Michigan or

local products to districts. All of the following apply for

purposes of this subdivision:

(i) The data used to determine the amount of this increase

shall be the total dollar amount of Michigan or local fruits,

vegetables, and legumes purchased by schools, along with the number

of different types of products purchased; school food purchasing

trends identified along with products that are of new and growing

interest among food service directors; the number of businesses

impacted; and the percentage of total food budget spent on

Michigan-grown fruits, vegetables, and legumes.

(ii) The prosperity region office shall use purchasing data

collected for the project and surveys of school food service

directors on the impact and success of the project as the source

for the data described in subparagraph (i).

(b) The ability to which pupils can access a variety of

healthy Michigan-grown foods through schools and increase their

consumption of those foods. All of the following apply for purposes

of this subdivision:

(i) The data used to determine whether this subparagraph is

met shall be the number of pupils exposed to Michigan-grown fruits,

vegetables, and legumes at schools; the variety of products served;

new items taste-tested or placed on menus; and the increase in

pupil willingness to try new local, healthy foods.

(ii) The prosperity region office shall use purchasing data

collected for the project, meal count and enrollment numbers,

school menu calendars, and surveys of school food service directors

as the source for the data described in subparagraph (i).

(12) The department shall compile the reports provided by

prosperity region offices under subsection (11) into 1 legislative

report. The department shall provide this report not later than

April 1, 2018 to the house and senate subcommittees responsible for

school aid, the house and senate fiscal agencies, and the state

budget director.

Sec. 32d. (1) From the funds appropriated in section 11, there

is allocated to eligible intermediate districts and consortia of

intermediate districts for great start readiness programs an amount

not to exceed $243,600,000.00 for ~~2017-2018.~~ 2018-2019. Funds

allocated under this section for great start readiness programs

shall be used to provide part-day, school-day, or GSRP/Head Start

blended comprehensive free compensatory classroom programs designed

to improve the readiness and subsequent achievement of

educationally disadvantaged children who meet the participant

eligibility and prioritization guidelines as defined by the

department. For a child to be eligible to participate in a program

under this section, the child shall be at least 4, but less than 5,

years of age as of September 1 of the school year in which the

program is offered and shall meet those eligibility and

prioritization guidelines. A child who is not 4 years of age as of

September 1, but who will be 4 years of age not later than December

1, is eligible to participate if the child's parent or legal

guardian seeks a waiver from the September 1 eligibility date by

submitting a request for enrollment in a program to the responsible

intermediate district, if the program has capacity on or after

September 1 of the school year, and if the child meets eligibility

and prioritization guidelines.

(2) Funds allocated under subsection (1) shall be allocated to

intermediate districts or consortia of intermediate districts based

on the formula in section 39. An intermediate district or

consortium of intermediate districts receiving funding under this

section shall act as the fiduciary for the great start readiness

programs. In order to be eligible to receive funds allocated under

this subsection from an intermediate district or consortium of

intermediate districts, a district, a consortium of districts, or a

public or private for-profit or nonprofit legal entity or agency

shall comply with this section and section 39.

(3) In addition to the allocation under subsection (1), from

the general fund money appropriated under section 11, there is

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

2019 for a competitive grant to continue a longitudinal evaluation

of children who have participated in great start readiness

programs.

(4) To be eligible for funding under this section, a program

shall prepare children for success in school through comprehensive

part-day, school-day, or GSRP/Head Start blended programs that

contain all of the following program components, as determined by

the department:

(a) Participation in a collaborative recruitment and

enrollment process to assure that each child is enrolled in the

program most appropriate to his or her needs and to maximize the

use of federal, state, and local funds.

(b) An age-appropriate educational curriculum that is in

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board, including, at

least, the Connect4Learning curriculum. A program shall not use the

creative curriculum for preschool.

supported by federal, state, and local resources as applicable.

(d) Physical and dental health and developmental screening

services for all program participants.

(e) Referral services for families of program participants to

community social service agencies, including mental health

services, as appropriate.

(f) Active and continuous involvement of the parents or

guardians of the program participants.

(g) A plan to conduct and report annual great start readiness

program evaluations and continuous improvement plans using criteria

approved by the department.

(h) Participation in a school readiness advisory committee

convened as a workgroup of the great start collaborative that

provides for the involvement of classroom teachers, parents or

guardians of program participants, and community, volunteer, and

social service agencies and organizations, as appropriate. The

advisory committee annually shall review and make recommendations

regarding the program components listed in this subsection. The

advisory committee also shall make recommendations to the great

start collaborative regarding other community services designed to

improve all children's school readiness.

(i) The ongoing articulation of the kindergarten and first

grade programs offered by the program provider.

(j) Participation in this state's great start to quality

process with a rating of at least 3 stars.

(5) An application for funding under this section shall

provide for the following, in a form and manner determined by the

department:

(a) Ensure compliance with all program components described in

subsection (4).

(b) Except as otherwise provided in this subdivision, ensure

that at least 90% of the children participating in an eligible

great start readiness program for whom the intermediate district is

receiving funds under this section are children who live with

families with a household income that is equal to or less than 250%

of the federal poverty level. If the intermediate district

determines that all eligible children are being served and that

there are no children on the waiting list who live with families

with a household income that is equal to or less than 250% of the

federal poverty level, the intermediate district may then enroll

children who live with families with a household income that is

equal to or less than 300% of the federal poverty level. The

enrollment process shall consider income and risk factors, such

that children determined with higher need are enrolled before

children with lesser need. For purposes of this subdivision, all

age-eligible children served in foster care or who are experiencing

homelessness or who have individualized education plans

recommending placement in an inclusive preschool setting shall be

considered to live with families with household income equal to or

less than 250% of the federal poverty level regardless of actual

family income and shall be prioritized for enrollment within the

lowest quintile.

for this program, as follows:

(i) Teachers possessing proper training. A lead teacher must

have a valid teaching certificate with an early childhood (ZA or

ZS) endorsement or a bachelor's or higher degree in child

development or early childhood education with specialization in

preschool teaching. However, if an applicant demonstrates to the

department that it is unable to fully comply with this subparagraph

after making reasonable efforts to comply, teachers who have

significant but incomplete training in early childhood education or

child development may be used if the applicant provides to the

department, and the department approves, a plan for each teacher to

come into compliance with the standards in this subparagraph. A

teacher's compliance plan must be completed within 2 years of the

date of employment. Progress toward completion of the compliance

plan shall consist of at least 2 courses per calendar year.

(ii) Paraprofessionals possessing proper training in early

childhood education, including an associate's degree in early

childhood education or child development or the equivalent, or a

child development associate (CDA) credential. However, if an

applicant demonstrates to the department that it is unable to fully

comply with this subparagraph after making reasonable efforts to

comply, the applicant may use paraprofessionals who have completed

at least 1 course that earns college credit in early childhood

education or child development if the applicant provides to the

department, and the department approves, a plan for each

paraprofessional to come into compliance with the standards in this

subparagraph. A paraprofessional's compliance plan must be

completed within 2 years of the date of employment. Progress toward

completion of the compliance plan shall consist of at least 2

courses or 60 clock hours of training per calendar year.

(d) Include a program budget that contains only those costs

that are not reimbursed or reimbursable by federal funding, that

are clearly and directly attributable to the great start readiness

program, and that would not be incurred if the program were not

being offered. Eligible costs include transportation costs. The

program budget shall indicate the extent to which these funds will

supplement other federal, state, local, or private funds. Funds

received under this section shall not be used to supplant any

federal funds received by the applicant to serve children eligible

for a federally funded preschool program that has the capacity to

serve those children.

(6) For a grant recipient that enrolls pupils in a school-day

program funded under this section, each child enrolled in the

school-day program shall be counted as described in section 39 for

purposes of determining the amount of the grant award.

(7) For a grant recipient that enrolls pupils in a GSRP/Head

Start blended program, the grant recipient shall ensure that all

Head Start and GSRP policies and regulations are applied to the

blended slots, with adherence to the highest standard from either

program, to the extent allowable under federal law.

(8) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall designate an

early childhood coordinator, and may provide services directly or

may contract with 1 or more districts or public or private for-

profit or nonprofit providers that meet all requirements of

subsections (4) and (5).

(9) An intermediate district or consortium of intermediate

districts may retain for administrative services provided by the

intermediate district or consortium of intermediate districts an

amount not to exceed 4% of the grant amount. Expenses incurred by

subrecipients engaged by the intermediate district or consortium of

intermediate districts for directly running portions of the program

shall be considered program costs or a contracted program fee for

service.

(10) An intermediate district or consortium of intermediate

districts may expend not more than 2% of the total grant amount for

outreach, recruiting, and public awareness of the program.

(11) Each grant recipient shall enroll children identified

under subsection (5)(b) according to how far the child's household

income is below 250% of the federal poverty level by ranking each

applicant child's household income from lowest to highest and

dividing the applicant children into quintiles based on how far the

child's household income is below 250% of the federal poverty

level, and then enrolling children in the quintile with the lowest

household income before enrolling children in the quintile with the

next lowest household income until slots are completely filled. If

the grant recipient determines that all eligible children are being

served and that there are no children on the waiting list who live

with families with a household income that is equal to or less than

250% of the federal poverty level, the grant recipient may then

enroll children who live with families with a household income that

is equal to or less than 300% of the federal poverty level. The

enrollment process shall consider income and risk factors, such

that children determined with higher need are enrolled before

children with lesser need. For purposes of this subdivision, all

age-eligible children served in foster care or who are experiencing

homelessness or who have individualized education plans

recommending placement in an inclusive preschool setting shall be

considered to live with families with household income equal to or

less than 250% of the federal poverty level regardless of actual

family income and shall be prioritized for enrollment within the

lowest quintile.

(12) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall allow parents

of eligible children who are residents of the intermediate district

or within the consortium to choose a program operated by or

contracted with another intermediate district or consortium of

intermediate districts and shall enter into a written agreement

regarding payment, in a manner prescribed by the department.

(13) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall conduct a

local process to contract with interested and eligible public and

private for-profit and nonprofit community-based providers that

meet all requirements of subsection (4) for at least 30% of its

total allocation. For the purposes of this 30% allocation, an

intermediate district or consortium of intermediate districts may

count children served by a Head Start grantee or delegate in a

blended Head Start and great start readiness school-day program.

Children served in a program funded only through Head Start shall

not be counted toward this 30% allocation. The intermediate

district or consortium shall report to the department, in a manner

prescribed by the department, a detailed list of community-based

providers by provider type, including private for-profit, private

nonprofit, community college or university, Head Start grantee or

delegate, and district or intermediate district, and the number and

proportion of its total allocation allocated to each provider as

subrecipient. If the intermediate district or consortium is not

able to contract for at least 30% of its total allocation, the

grant recipient shall notify the department and, if the department

verifies that the intermediate district or consortium attempted to

contract for at least 30% of its total allocation and was not able

to do so, then the intermediate district or consortium may retain

and use all of its allocation as provided under this section. To be

able to use this exemption, the intermediate district or consortium

shall demonstrate to the department that the intermediate district

or consortium increased the percentage of its total allocation for

which it contracts with a community-based provider and the

intermediate district or consortium shall submit evidence

satisfactory to the department, and the department must be able to

verify this evidence, demonstrating that the intermediate district

or consortium took measures to contract for at least 30% of its

total allocation as required under this subsection, including, but

not limited to, at least all of the following measures:

(a) The intermediate district or consortium notified each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium regarding the

center's eligibility to participate, in a manner prescribed by the

department.

(b) The intermediate district or consortium provided to each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium information

regarding great start readiness program requirements and a

description of the application and selection process for community-

based providers.

public and to participating families a list of community-based

great start readiness program subrecipients with a great start to

quality rating of at least 3 stars.

(14) If an intermediate district or consortium of intermediate

districts receiving a grant under this section fails to submit

satisfactory evidence to demonstrate its effort to contract for at

least 30% of its total allocation, as required under subsection

(13), the department shall reduce the allocation to the

intermediate district or consortium by a percentage equal to the

difference between the percentage of an intermediate district's or

consortium's total allocation awarded to community-based providers

and 30% of its total allocation.

(15) In order to assist intermediate districts and consortia

in complying with the requirement to contract with community-based

providers for at least 30% of their total allocation, the

department shall do all of the following:

(a) Ensure that a great start resource center or the

department provides each intermediate district or consortium

receiving a grant under this section with the contact information

for each licensed child care center located in the service area of

the intermediate district or consortium by March 1 of each year.

(b) Provide, or ensure that an organization with which the

department contracts provides, a community-based provider with a

validated great start to quality rating within 90 days of the

provider's having submitted a request and self-assessment.

college or university, Head Start grantee or delegate, private for-

profit, and private nonprofit providers are subject to a single

great start to quality rating system. The rating system shall

ensure that regulators process all prospective providers at the

same pace on a first-come, first-served basis and shall not allow 1

type of provider to receive a great start to quality rating ahead

of any other type of provider.

(d) Not later than December 1 of each year, compile the

results of the information reported by each intermediate district

or consortium under subsection (13) and report to the legislature a

list by intermediate district or consortium with the number and

percentage of each intermediate district's or consortium's total

allocation allocated to community-based providers by provider type,

including private for-profit, private nonprofit, community college

or university, Head Start grantee or delegate, and district or

intermediate district.

(16) A recipient of funds under this section shall report to

the ~~department~~ center in a form and manner prescribed by the

~~department~~ center the number of children participating in the

program who meet the income eligibility criteria under subsection

(5)(b) and the total number of children participating in the

program. For children participating in the program who meet the

income eligibility criteria specified under subsection (5)(b), a

recipient shall also report whether or not a parent is available to

provide care based on employment status. For the purposes of this

subsection, "employment status" shall be defined by the department

of health and human services in a manner consistent with maximizing

the amount of spending that may be claimed for temporary assistance

for needy families maintenance of effort purposes.

(17) As used in this section:

(a) "GSRP/Head Start blended program" means a part-day program

funded under this section and a Head Start program, which are

combined for a school-day program.

(b) "Part-day program" means a program that operates at least

4 days per week, 30 weeks per year, for at least 3 hours of

teacher-child contact time per day but for fewer hours of teacher-

child contact time per day than a school-day program.

least the same length of day as a district's first grade program

for a minimum of 4 days per week, 30 weeks per year. A classroom

that offers a school-day program must enroll all children for the

school day to be considered a school-day program.

(18) An intermediate district or consortium of intermediate

districts receiving funds under this section shall establish and

charge tuition according to a sliding scale of tuition rates based

upon household income for children participating in an eligible

great start readiness program who live with families with a

household income that is more than 250% of the federal poverty

level to be used by all of its providers, as approved by the

department.

(19) From the amount appropriated in subsection (1), there is

allocated an amount not to exceed $10,000,000.00 for reimbursement

of transportation costs for children attending great start

readiness programs funded under this section. To receive

reimbursement under this subsection, not later than November 1,

~~2017,~~ 2018, a program funded under this section that provides

transportation shall submit to the intermediate district that is

the fiscal agent for the program a projected transportation budget.

The amount of the reimbursement for transportation under this

subsection shall be no more than the projected transportation

budget or $300.00 multiplied by the number of children funded for

the program under this section. If the amount allocated under this

subsection is insufficient to fully reimburse the transportation

costs for all programs that provide transportation and submit the

required information, the reimbursement shall be prorated in an

equal amount per child funded. Payments shall be made to the

intermediate district that is the fiscal agent for each program,

and the intermediate district shall then reimburse the program

provider for transportation costs as prescribed under this

subsection.

(20) The department shall implement a process to review and

approve age-appropriate comprehensive classroom level quality

assessments for GSRP grantees that support the early childhood

standards of quality for prekindergarten children adopted by the

state board. The department shall ~~complete the approval process and~~

make available to intermediate districts at least 2 ~~approved~~

classroom level quality assessments ~~no later than April 1,~~

~~2018.~~that were approved in 2018.

(21) An intermediate district that is a GSRP grantee may

approve the use of a supplemental curriculum that aligns with and

enhances the age-appropriate educational curriculum in the

classroom. If the department objects to the use of a supplemental

curriculum approved by an intermediate district, the superintendent

of public instruction shall establish a review committee

independent of the department. The review committee shall meet

within 60 days of the department registering its objection in

writing and provide a final determination on the validity of the

objection within 60 days of the review committee's first meeting.

(22) A great start readiness program or a GSRP/Head Start

blended program funded under this section shall be permitted to

utilize AmeriCorps Pre-K Reading Corps members in classrooms

implementing research-based early literacy intervention strategies.

Sec. 32p. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $13,400,000.00 to intermediate

districts for ~~2017-2018~~ 2018-2019 for the purpose of providing

early childhood funding to intermediate school districts to support

the activities under subsection (2) and subsection (4), and to

provide early childhood programs for children from birth through

age 8. The funding provided to each intermediate district under

this section shall be determined by the distribution formula

established by the department's office of great start to provide

equitable funding statewide. In order to receive funding under this

section, each intermediate district shall provide an application to

the office of great start not later than September 15 of the

immediately preceding fiscal year indicating the activities planned

to be provided.

(2) Each intermediate district or consortium of intermediate

districts that receives funding under this section shall convene a

local great start collaborative and a parent coalition. The goal of

each great start collaborative and parent coalition shall be to

ensure the coordination and expansion of local early childhood

infrastructure and programs that allow every child in the community

to achieve the following outcomes:

(a) Children born healthy.

(b) Children healthy, thriving, and developmentally on track

from birth to third grade.

time of school entry.

(d) Children prepared to succeed in fourth grade and beyond by

reading proficiently by the end of third grade.

(3) Each local great start collaborative and parent coalition

shall convene workgroups to make recommendations about community

services designed to achieve the outcomes described in subsection

(2) and to ensure that its local great start system includes the

following supports for children from birth through age 8:

(a) Physical health.

(b) Social-emotional health.

(d) Parent education.

(e) Early education, including the child's development of

skills linked to success in foundational literacy, and care.

(4) From the funds allocated in subsection (1), at least

$2,500,000.00 shall be used for the purpose of providing home

visits to at-risk children and their families. The home visits

shall be conducted as part of a locally coordinated, family-

centered, evidence-based, data-driven home visit strategic plan

that is approved by the department. The goals of the home visits

funded under this subsection shall be to improve school readiness

using evidence-based methods, including a focus on developmentally

appropriate outcomes for early literacy, to reduce the number of

pupils retained in grade level, and to reduce the number of pupils

requiring special education services. The department shall

coordinate the goals of the home visit strategic plans approved

under this subsection with other state agency home visit programs

in a way that strengthens Michigan's home visiting infrastructure

and maximizes federal funds available for the purposes of at-risk

family home visits. The coordination among departments and agencies

is intended to avoid duplication of state services and spending,

and should emphasize efficient service delivery of home visiting

programs.

(5) Not later than December 1 of each year, each intermediate

district shall provide a report to the department detailing the

activities actually provided during the immediately preceding

school year and the families and children actually served. At a

minimum, the report shall include an evaluation of the services

provided with additional funding under subsection (4) for home

visits, using the goals identified in subsection (4) as the basis

for the evaluation, including the degree to which school readiness

was improved, any change in the number of pupils retained at grade

level, and any change in the number of pupils receiving special

education services. The department shall compile and summarize

these reports and submit its summary to the house and senate

appropriations subcommittees on school aid and to the house and

senate fiscal agencies not later than February 15 of each year.

(6) An intermediate district or consortium of intermediate

districts that receives funding under this section may carry over

any unexpended funds received under this section into the next

fiscal year and may expend those unused funds through June 30 of

the next fiscal year. A recipient of a grant shall return any

unexpended grant funds to the department in the manner prescribed

by the department not later than September 30 of the next fiscal

year after the fiscal year in which the funds are received.

Sec. 32q. From the state school aid fund allocation under

section 11, there is allocated to an eligible intermediate district

an amount equal to $175,000.00 ~~in 2017-2018~~ for 2018-2019 for the

purpose of this section. An intermediate district receiving a grant

under this section shall partner with an early childhood

collaborative to conduct a pilot program as provided under this

section. It is the intent of the legislature that this is the

~~second~~ third of 3 years of funding. ~~, and that funding shall~~

~~continue in 2018-2019.~~ Funding allocated to an intermediate

district shall be used in partnership with a collaborative to

conduct a pilot program to evaluate the relative impact on

vulnerable children of 1 versus 2 years of preschool education. All

of the following apply to the pilot program funded under this

section:

(a) An eligible intermediate district is an intermediate

district that is located in a county with a population as of the

most recent federal decennial census that was greater than 500,000

but fewer than 800,000 and that has an early learning collaborative

located within its boundaries.

(b) The funds shall be used for research, family coaching

support, administration, information systems, and evaluation.

the early learning collaborative, in partnership with the

intermediate district, shall provide the funding for all eligible

children included in the pilot program.

(d) The early learning collaborative, in partnership with the

intermediate district, shall develop a 3-year pilot program under

the supervision of the office of great start in the department.

(e) For a child to be eligible for participation in the pilot

program under this section, the child shall be 3 years of age as of

the date specified for determining a child's eligibility to attend

school under section 1147 of the revised school code, MCL 380.1147.

(f) A child participating in the pilot program shall meet the

participant eligibility and prioritization guidelines as defined by

the department.

(g) Notwithstanding section 17b, the department shall

distribute funds under this section not later than November 15 of

the fiscal year.

(h) The early learning collaborative, in partnership with the

intermediate district, shall provide annual progress evaluations to

the office of great start.

(i) By December 1, 2019, the early learning collaborative, in

partnership with the intermediate district, shall provide a pilot

program report and evaluation to the office of great start. The

office of great start shall review the pilot program report and

evaluation and, by February 15, 2020, provide a report to the

senate and house appropriations subcommittees on state school aid

and to the senate and house fiscal agencies of its evaluation of

the pilot program.

Sec. 35a. (1) From the appropriations in section 11, there is

allocated for ~~2017-2018~~ 2018-2019 for the purposes of this section

an amount not to exceed $26,900,000.00 from the state school aid

fund. ~~and an amount not to exceed $2,500,000.00 from the general~~

~~fund.~~The superintendent shall designate staff or contracted

employees funded under this section as critical shortage. Programs

funded under this section are intended to ensure that this state

will be in the top 10 most improved states in grade 4 reading

proficiency by the 2019 National Assessment of Educational Progress

(NAEP) and will be in the top 10 states overall in grade 4 reading

proficiency by 2025.

(2) A district that receives funds under subsection (5) may

spend up to 5% of those funds for professional development for

educators in a department-approved research-based training program

related to current state literacy standards for pupils in grades K

to 3. The professional development shall also include training in

the use of screening and diagnostic tools, progress monitoring, and

intervention methods used to address barriers to learning and

delays in learning that are diagnosed through the use of these

tools.

(3) A district that receives funds under subsection (5) may

use up to 5% of those funds to administer department-approved

screening and diagnostic tools to monitor the development of early

literacy and early reading skills of pupils in grades K to 3 and to

support research-based professional development for educators in

administering screening and diagnostic tools and in data

interpretation of the results obtained through the use of those

tools for the purpose of implementing a multi-tiered system of

support to improve reading proficiency among pupils in grades K to

3. A department-approved screening and diagnostic tool administered

by a district using funding under this section must include all of

the following components: phonemic awareness, phonics, fluency, and

comprehension. Further, all of the following sub-skills must be

assessed within each of these components:

(a) Phonemic awareness - segmentation, blending, and sound

manipulation (deletion and substitution).

(b) Phonics - decoding (reading) and encoding (spelling).

(d) Comprehension - making meaning of text.

(4) From the allocations under subsection (1), there is

allocated an amount not to exceed $6,000,000.00 for ~~2017-2018~~ 2018-

2019 for the purpose of providing early literacy coaches at

intermediate districts to assist teachers in developing and

implementing instructional strategies for pupils in grades K to 3

so that pupils are reading at grade level by the end of grade 3.

All of the following apply to funding under this subsection:

(a) The department shall develop an application process

consistent with the provisions of this subsection. An application

shall provide assurances that literacy coaches funded under this

subsection are knowledgeable about at least the following:

(i) Current state literacy standards for pupils in grades K to

(ii) Implementing an instructional delivery model based on

frequent use of formative, screening, and diagnostic tools, known

as a multi-tiered system of support, to determine individual

progress for pupils in grades K to 3 so that pupils are reading at

grade level by the end of grade 3.

(iii) The use of data from diagnostic tools to determine the

necessary additional supports and interventions needed by

individual pupils in grades K to 3 in order to be reading at grade

level.

(b) From the allocation under this subsection, the department

shall award grants to intermediate districts for the support of

early literacy coaches. An intermediate district must provide

matching funds for at least 50% of the grant amount awarded to

support the cost of the literacy coach. The department shall

provide this funding in the following manner:

(i) Each intermediate district shall be awarded grant funding

to support the cost of 1 early literacy coach in an equal amount

per early literacy coach, not to exceed $75,000.00.

(ii) After distribution of the grant funding under

subparagraph (i), the department shall distribute the remainder of

grant funding for additional early literacy coaches in an amount

not to exceed $75,000.00 per early literacy coach. The number of

funded early literacy coaches for each intermediate district shall

be based on the percentage of the total statewide number of pupils

in grades K to 3 who meet the income eligibility standards for the

federal free and reduced-price lunch programs who are enrolled in

districts in the intermediate district. For each additional early

literacy coach funded under this subparagraph, the department shall

not make an award to an intermediate district under this

subparagraph in an amount that is less than the amount necessary to

pay 1/2 of the total cost of that additional early literacy coach.

(5) From the allocations under subsection (1), there is

allocated an amount not to exceed $20,900,000.00 for ~~2017-2018~~

2018-2019 to districts that provide additional instructional time

to those pupils in grades K to 3 who have been identified by using

department-approved screening and diagnostic tools as needing

additional supports and interventions in order to be reading at

grade level by the end of grade 3. Additional instructional time

may be provided before, during, and after regular school hours or

as part of a year-round balanced school calendar. All of the

following apply to funding under this subsection:

(a) In order to be eligible to receive funding, a district

shall demonstrate to the satisfaction of the department that the

district has done all of the following:

(i) Implemented a multi-tiered system of support instructional

delivery model that is an evidence-based model that uses data-

driven problem solving to integrate academic and behavioral

instruction and that uses intervention delivered to all pupils in

varying intensities based on pupil needs. The multi-tiered system

of supports must provide at least all of the following essential

~~elements:~~

~~(A) Implements effective instruction for all learners.~~

~~(B) Intervenes early.~~

~~(C) Provides a multi-tiered model of instruction and~~

~~intervention that provides the following: a core curriculum and~~

~~classroom interventions available to all pupils that meet the needs~~

~~of most pupils; targeted group interventions; and intense~~

~~individual interventions.~~

~~(D) Monitors pupil progress to inform instruction.~~

~~(E) Uses data to make instructional decisions.~~

~~(F) Uses assessments including universal screening,~~

~~diagnostics, and progress monitoring.~~

~~(G) Engages families and the community.~~

~~(H) Implements evidence-based, scientifically validated,~~

~~instruction and intervention.~~

~~(I) Implements instruction and intervention practices with~~

~~fidelity.~~

~~(J) Uses a collaborative problem-solving model.~~components:

(A) Team-based leadership.

(B) A tiered delivery system.

interventions, and supports.

(D) A comprehensive screening and assessment system.

(E) Continuous data-based decision making.

(ii) Used department-approved research-based diagnostic tools

to identify individual pupils in need of additional instructional

time.

(iii) Used a reading instruction method that focuses on the 5

fundamental building blocks of reading: phonics, phonemic

awareness, fluency, vocabulary, and comprehension and content

knowledge.

(iv) Provided teachers of pupils in grades K to 3 with

research-based professional development in diagnostic data

interpretation.

(v) Complied with the requirements under section 1280f of the

revised school code, MCL 380.1280f.

(b) Funding allocated under this subsection shall be

distributed to eligible districts by multiplying the number of

full-time-equivalent pupils in grade 1 in the district by $210.00.

insufficient to fully fund the payments under this subsection,

payments under this subsection shall be prorated on an equal per-

pupil basis based on grade 1 pupils.

~~(6) From the general fund money allocated in subsection (1),~~

~~the department shall allocate the amount of $2,500,000.00 for 2017-~~

~~2018 to the Michigan Education Corps. All of the following apply to~~

~~funding under this subsection:~~

~~(a) By August 1 of the current fiscal year, the Michigan~~

~~Education Corps shall provide a report concerning its use of the~~

~~funding to the senate and house appropriations subcommittees on~~

~~state school aid, the senate and house fiscal agencies, and the~~

~~senate and house caucus policy offices on outcomes and performance~~

~~measures of the Michigan Education Corps, including, but not~~

~~limited to, the degree to which the Michigan Education Corps's~~

~~replication of the Michigan Reading Corps program is demonstrating~~

~~sufficient efficacy and impact. The report must include data~~

~~pertaining to at least all of the following:~~

(i~~) The current impact of the Michigan Reading Corps on this~~

~~state in terms of numbers of children and programs receiving~~

~~support. This portion of the report shall specify the number of~~

~~children tutored, including dosage and completion, and the~~

~~demographics of those children.~~

(ii~~) Whether the assessments and interventions are implemented~~

~~with fidelity. This portion of the report shall include details on~~

~~the total number of assessments and interventions completed and the~~

~~range, median, mean, and standard deviation for all assessments.~~

(~~iii~~~~) Whether the literacy improvement of children~~

~~participating in the Michigan Reading Corps is consistent with~~

~~expectations. This portion of the report shall detail at least all~~

~~of the following:~~

~~(A) Growth rate by grade level, in comparison to targeted~~

~~growth rate.~~

~~(B) Average linear growth rates.~~

~~(C) Exit rates.~~

~~(D) Percentage of children who exit who also meet or exceed~~

~~spring benchmarks.~~

(iv~~) The impact of the Michigan Reading Corps on organizations~~

~~and stakeholders, including, but not limited to, school~~

~~administrators, internal coaches, and AmeriCorps members.~~

~~(b) If the department determines that the Michigan Education~~

~~Corps has misused the funds allocated under this subsection, the~~

~~Michigan Education Corps shall reimburse this state for the amount~~

~~of state funding misused.~~

~~(c) The department may not reserve any portion of the~~

~~allocation provided under this subsection for an evaluation of the~~

~~Michigan Education Corps, the Michigan Education Corps' funding, or~~

~~the Michigan Education Corps' programming. The department shall~~

~~award the entire $2,500,000.00 allocated under this subsection to~~

~~the Michigan Education Corps and shall not condition the awarding~~

~~of this funding on the implementation of an independent evaluation.~~

(6) Not later than November 1, 2018, a district that receives

funding under this section shall report to the department both of

the following:

(a) The schools and grades that were served, along with

services provided and the entity that provided each service.

(b) Pupil proficiency and growth data, both in the aggregate

and by subgroup, for each of the following:

(i) Each school, as applicable.

(ii) Each grade, as applicable.

(iii) Pupils identified as having reading deficiencies.

(iv) Pupils receiving additional instruction time funded under

this section.

Sec. 35b. (1) From the general fund appropriation in section

11, there is allocated for 2018-2019 an amount not to exceed

$250,000.00 for a grant to an eligible district to create a pilot

program to use a multisensory structured language education method

to improve reading proficiency rates and to comply with section

1280f of the revised school code, MCL 380.1280f.

(2) A district is eligible for a grant under this section if

all of the following are met:

(a) A dyslexia center accredited by the International

Multisensory Structured Language Education Council is located in

the district.

(b) The district partners with the dyslexia center described

in subdivision (a) to provide multisensory structured language

education for pupils in grades K to 3 identified as having an early

literacy delay or reading deficiency.

less than 8,000.

(3) A district may expend grant funds awarded under this

section, in collaboration with the dyslexia center described in

subsection (2)(a), for the following purposes:

(a) Professional development including training staff and

tutors in the multisensory, sequential, systematic education

approach used by the dyslexia center.

(b) Additional instructional time before, during, or after

school for pupils in grades K to 3 identified as having an early

literacy delay or reading deficiency using the multisensory,

sequential, systematic education approach used by the dyslexia

center.

(4) Not later than December 1, 2020, a district that receives

grant funds under this section shall report to the house and senate

appropriations subcommittees on school aid, the house and senate

fiscal agencies, and the state budget director on all of the

following for the grant funds awarded under this section:

(a) The number of staff and tutors trained.

(b) The number of pupils in grades K to 3 identified as having

an early literacy delay or reading deficiency served.

to pupils served.

(d) Pupil reading proficiency and growth data of pupils served

necessary to evaluate the effectiveness of the program.

Sec. 39. (1) An eligible applicant receiving funds under

section 32d shall submit an application, in a form and manner

prescribed by the department, by a date specified by the department

in the immediately preceding state fiscal year. The application

must not require an eligible applicant to amend the eligible

applicant's current accounting cycle or adopt this state's fiscal

year accounting cycle in accounting for financial transactions

under this section or section 32d. The application shall include

all of the following:

(a) For ~~2017-2018~~ 2018-2019 calculations, the estimated total

number of children in the community who meet the criteria of

section 32d, as provided to the applicant by the department

utilizing the most recent population data available from the

American ~~community survey~~ Community Survey conducted by the United

States Census Bureau. Beginning in 2018-2019, the department shall

ensure that it provides updated American ~~community survey~~ Community

Survey population data at least once every 3 years.

(b) The estimated number of children in the community who meet

the criteria of section 32d and are being served exclusively by

Head Start programs operating in the community.

to serve who meet the criteria of section 32d including a

verification of physical facility and staff resources capacity.

(2) After notification of funding allocations, an applicant

receiving funds under section 32d shall also submit an

implementation plan for approval, in a form and manner prescribed

by the department, by a date specified by the department, that

details how the applicant complies with the program components

established by the department pursuant to section 32d.

(3) The initial allocation to each eligible applicant under

section 32d shall be the lesser of the following:

(a) The sum of the number of children served in a school-day

program in the preceding school year multiplied by $7,250.00 and

the number of children served in a GSRP/Head Start blended program

or a part-day program in the preceding school year multiplied by

$3,625.00.

(b) The sum of the number of children the applicant has the

capacity to serve in ~~2017-2018~~ 2018-2019 in a school-day program

multiplied by $7,250.00 and the number of children served in a

GSRP/Head Start blended program or a part-day program the applicant

has the capacity to serve in ~~2017-2018~~ 2018-2019 multiplied by

$3,625.00.

(4) If funds remain after the allocations under subsection

(3), the department shall distribute the remaining funds to each

intermediate district or consortium of intermediate districts that

serves less than the state percentage benchmark determined under

subsection (5). These remaining funds shall be distributed to each

eligible applicant based upon each applicant's proportionate share

of the remaining unserved children necessary to meet the statewide

percentage benchmark in intermediate districts or consortia of

intermediate districts serving less than the statewide percentage

benchmark. When all applicants have been given the opportunity to

reach the statewide percentage benchmark, the statewide percentage

benchmark may be reset, as determined by the department, until

greater equity of opportunity to serve eligible children across all

intermediate school districts has been achieved.

(5) For the purposes of subsection (4), for the ~~2017-2018~~

2018-2019 program year, the department shall calculate a percentage

of children served by each intermediate district or consortium of

intermediate districts by dividing the number of children served in

the immediately preceding year by that intermediate district or

consortium by the total number of children within the intermediate

district or consortium of intermediate districts who meet the

criteria of section 32d as determined by the department utilizing

the most recent population data available from the American

~~community survey~~ Community Survey conducted by the United States

Census Bureau. The department shall compare the resulting

percentage of eligible children served to a statewide percentage

benchmark to determine if the intermediate district or consortium

is eligible for additional funds under subsection (4). For ~~2017-~~

~~2018,~~ 2018-2019, the statewide percentage benchmark is 60%.

(6) If, taking into account the total amount to be allocated

to the applicant as calculated under this section, an applicant

determines that it is able to include additional eligible children

in the great start readiness program without additional funds under

section 32d, the applicant may include additional eligible children

but shall not receive additional funding under section 32d for

those children.

(7) The department shall review the program components under

section 32d and under this section at least biennially. The

department also shall convene a committee of internal and external

stakeholders at least once every 5 years to ensure that the funding

structure under this section reflects current system needs under

section 32d.

(8) As used in this section, "school-day program", "GSRP/Head

Start blended program", and "part-day program" mean those terms as

defined in section 32d.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated ~~each fiscal year for 2016-2017 and for 2017-~~

~~2018~~ for 2018-2019 to districts, intermediate districts, and other

eligible entities all available federal funding, estimated at

~~$744,039,900.00 for 2016-2017 and $731,600,000.00 for 2017-2018~~

$730,600,000.00 for the federal programs under the no child left

behind act of 2001, Public Law 107-110, or the every student

succeeds act, Public Law 114-95. These funds are allocated as

follows:

(a) An amount estimated at $1,200,000.00 ~~each fiscal year~~ for

2018-2019 to provide students with drug- and violence-prevention

programs and to implement strategies to improve school safety,

funded from DED-OESE, drug-free schools and communities funds.

(b) An amount estimated at ~~$111,111,900.00 for 2016-2017 and~~

$100,000,000.00 for ~~2017-2018~~ 2018-2019 for the purpose of

preparing, training, and recruiting high-quality teachers and class

size reduction, funded from DED-OESE, improving teacher quality

funds.

$11,000,000.00 for ~~2017-2018~~ 2018-2019 for programs to teach

English to limited English proficient (LEP) children, funded from

DED-OESE, language acquisition state grant funds.

~~(d) An amount estimated at $250,000.00 for 2016-2017 only for~~

~~the Michigan charter school subgrant program, funded from DED-OESE,~~

~~charter school funds.~~

(d) ~~(e)~~ An amount estimated at ~~$3,000,000.00 for 2016-2017 and~~

$2,800,000.00 for ~~2017-2018~~ 2018-2019 for rural and low income

schools, funded from DED-OESE, rural and low income school funds.

(e) ~~(f)~~ An amount estimated at $535,000,000.00 ~~each fiscal~~

~~year~~ for 2018-2019 to provide supplemental programs to enable

educationally disadvantaged children to meet challenging academic

standards, funded from DED-OESE, title I, disadvantaged children

funds.

(f) ~~(g)~~ An amount estimated at ~~$8,878,000.00 for 2016-2017 and~~

$9,200,000.00 for ~~2017-2018~~ 2018-2019 for the purpose of

identifying and serving migrant children, funded from DED-OESE,

title I, migrant education funds.

(g) ~~(h)~~ An amount estimated at $39,000,000.00 ~~each fiscal year~~

for 2018-2019 for the purpose of providing high-quality extended

learning opportunities, after school and during the summer, for

children in low-performing schools, funded from DED-OESE, twenty-

first century community learning center funds.

(h) ~~(i)~~ An amount estimated at ~~$18,000,000.00 each fiscal year~~

$12,000,000.00 for 2018-2019 to help support local school

improvement efforts, funded from DED-OESE, title I, local school

improvement grants.

(i) ~~(j)~~ An amount estimated at $15,400,000.00 ~~each fiscal year~~

for 2018-2019 to improve the academic achievement of students,

funded from DED-OESE, title IV, student support and academic

enrichment grants.

(j) An amount estimated at $5,000,000.00 for 2018-2019 for the

remaining balance of the amount appropriated under the former

section 32r, for federal funding awarded to this state under

sections 14005, 14006, and 14013 of title XIV of the American

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

race to the top early learning challenge grant.

(2) From the federal funds appropriated in section 11, there

is allocated for ~~2016-2017 and for 2017-2018~~ 2018-2019 to

districts, intermediate districts, and other eligible entities all

available federal funding, estimated at ~~$30,800,000.00 for 2016-~~

~~2017 and~~ $30,000,000.00 for ~~2017-2018~~ 2018-2019 for the following

programs that are funded by federal grants:

(a) An amount estimated at ~~$200,000.00 for 2016-2017 and~~

$100,000.00 for ~~2017-2018~~ 2018-2019 for acquired immunodeficiency

syndrome education grants, funded from HHS – Centers for Disease

Control and Prevention, AIDS funding.

(b) An amount estimated at ~~$2,600,000.00 for 2016-2017 and~~

$1,900,000.00 for ~~2017-2018~~ 2018-2019 to provide services to

homeless children and youth, funded from DED-OVAE, homeless

children and youth funds.

2018-2019 to provide mental health, substance abuse, or violence

prevention services to students, funded from HHS-SAMHSA.

(d) An amount estimated at $24,000,000.00 ~~each fiscal year~~ for

2018-2019 for providing career and technical education services to

pupils, funded from DED-OVAE, basic grants to states.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(4) For the purposes of applying for federal grants

appropriated under this article, the department shall allow an

intermediate district to submit a consortium application on behalf

of 2 or more districts with the agreement of those districts as

appropriate according to federal rules and guidelines.

(5) For the purposes of funding federal title I grants under

this article, in addition to any other federal grants for which a

strict discipline academy is eligible, the department shall

allocate to strict discipline academies out of title I, part A

funds equal to what a strict discipline academy would have received

if included and calculated under title I, part D, or what it would

receive under the formula allocation under title I, part A,

whichever is greater.

(6) As used in this section:

(a) "DED" means the United States Department of Education.

(b) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

Education.

(d) "HHS" means the United States Department of Health and

Human Services.

(e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

Health Services Administration.

Sec. 41. (1) For a district or public school academy to be

eligible to receive funding under this section, the district or

public school academy must administer to English language learners

the English language proficiency assessment known as the "WIDA

ACCESS for English language learners" or the "WIDA Alternate

ACCESS". From the appropriation in section 11, there is allocated

an amount not to exceed $6,000,000.00 for ~~2017-2018~~ 2018-2019 for

payments to eligible districts and eligible public school academies

for services for English language learners who have been

administered the WIDA ACCESS for English language learners.

(2) Funding allocated under this section shall be distributed

to eligible districts and eligible public school academies based on

the number of full-time equivalent English language learners as

follows:

(a) $620.00 per full-time equivalent English language learner

who has been assessed under the WIDA ACCESS for English language

learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA

Alternate ACCESS composite score between 1.0 and 1.9, or less, as

applicable to each assessment.

(b) $410.00 per full-time equivalent English language learner

who has been assessed under the WIDA ACCESS for English language

learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA

Alternate ACCESS composite score between 2.0 and 2.9, or less, as

applicable to each assessment.

(3) If funds allocated under this section are insufficient to

fully fund the payments as prescribed under subsection (2),

payments shall be prorated on an equal percentage basis, with the

same percentage proration applied to both funding categories.

(4) Each district or public school academy receiving funds

under this section shall submit to the department by July 15 of

each fiscal year a report, not to exceed 10 pages, on the usage by

the district or public school academy of funds under this section,

in a form and manner determined by the department, which shall

include a brief description of each program conducted or services

performed by the district or public school academy using funds

under this section and the amount of funds under this section

allocated to each of those programs or services. If a district or

public school academy does not comply with this section, the

department shall withhold an amount equal to the August payment due

under this section until the district or public school academy

complies with this subsection. If the district or public school

academy does not comply with this section by the end of the state

fiscal year, the withheld funds shall be forfeited to the school

aid fund.

(5) In order to receive funds under this section, a district

or public school academy shall allow access for the department or

the department's designee to audit all records related to the

program for which it receives those funds. The district or public

school academy shall reimburse this state for all disallowances

found in the audit.

(6) Beginning July 1, 2020, and every 3 years thereafter, the

department shall review the per-pupil distribution under subsection

(2), to ensure that funding levels are appropriate and make

recommendations for adjustments to the members of the senate and

house subcommittees on K-12 school aid appropriations.

Sec. 51a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$941,946,100.00 for 2016-2017 and~~

~~there is allocated an amount not to exceed $956,246,100.00~~

$959,446,100.00 for 2017-2018 and there is allocated an amount not

to exceed $979,346,100.00 for 2018-2019 from state sources and all

available federal funding under sections 611 to 619 of part B of

the individuals with disabilities education act, 20 USC 1411 to

1419, estimated at $370,000,000.00 each fiscal year ~~for 2016-2017~~

~~and~~ for 2017-2018 and for 2018-2019, plus any carryover federal

funds from previous year appropriations. In addition, from the

general fund appropriation in section 11, there is allocated to the

department an amount not to exceed $500,000.00 for each fiscal year

for 2017-2018 and for 2018-2019 for the purpose of subsection (16).

The allocations under this subsection are for the purpose of

reimbursing districts and intermediate districts for special

education programs, services, and special education personnel as

prescribed in article 3 of the revised school code, MCL 380.1701 to

~~380.1766;~~ 380.1761; net tuition payments made by intermediate

districts to the Michigan Schools for the Deaf and Blind; and

special education programs and services for pupils who are eligible

for special education programs and services according to statute or

rule. For meeting the costs of special education programs and

services not reimbursed under this article, a district or

intermediate district may use money in general funds or special

education funds, not otherwise restricted, or contributions from

districts to intermediate districts, tuition payments, gifts and

contributions from individuals or other entities, or federal funds

that may be available for this purpose, as determined by the

intermediate district plan prepared pursuant to article 3 of the

revised school code, MCL 380.1701 to ~~380.1766.~~ 380.1761.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

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

allocated the amount necessary, and estimated at ~~$260,700,000.00~~

~~for 2016-2017 and estimated at $264,200,000.00~~ $266,400,000.00 for

2017-2018 and estimated at $272,100,000.00 for 2018-2019, for

payments toward reimbursing districts and intermediate districts

for 28.6138% of total approved costs of special education,

excluding costs reimbursed under section 53a, and 70.4165% of total

approved costs of special education transportation. Allocations

under this subsection shall be made as follows:

(a) The initial amount allocated to a district under this

subsection toward fulfilling the specified percentages shall be

calculated by multiplying the district's special education pupil

membership, excluding pupils described in subsection (11), times

the foundation allowance under section 20 of the pupil's district

of residence plus the amount of the district's per-pupil allocation

under section 20m, not to exceed the basic foundation allowance

under section 20 for the current fiscal year, or, for a special

education pupil in membership in a district that is a public school

academy, times an amount equal to the amount per membership pupil

calculated under section 20(6). For an intermediate district, the

amount allocated under this subdivision toward fulfilling the

specified percentages shall be an amount per special education

membership pupil, excluding pupils described in subsection (11),

and shall be calculated in the same manner as for a district, using

the foundation allowance under section 20 of the pupil's district

of residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year, and that district's per-

pupil allocation under section 20m.

(b) After the allocations under subdivision (a), districts and

intermediate districts for which the payments calculated under

subdivision (a) do not fulfill the specified percentages shall be

paid the amount necessary to achieve the specified percentages for

the district or intermediate district.

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

allocated ~~each fiscal year for 2016-2017 and~~ for 2017-2018 an

amount not to exceed $1,000,000.00 and there is allocated an amount

not to exceed $1,100,000.00 for 2018-2019 to make payments to

districts and intermediate districts under this subsection. If the

amount allocated to a district or intermediate district for a

fiscal year under subsection (2)(b) is less than the sum of the

amounts allocated to the district or intermediate district for

1996-97 under sections 52 and 58, there is allocated to the

district or intermediate district for the fiscal year an amount

equal to that difference, adjusted by applying the same proration

factor that was used in the distribution of funds under section 52

in 1996-97 as adjusted to the district's or intermediate district's

necessary costs of special education used in calculations for the

fiscal year. This adjustment is to reflect reductions in special

education program operations or services between 1996-97 and

subsequent fiscal years. Adjustments for reductions in special

education program operations or services shall be made in a manner

determined by the department and shall include adjustments for

program or service shifts.

(4) If the department determines that the sum of the amounts

allocated for a fiscal year to a district or intermediate district

under subsection (2)(a) and (b) is not sufficient to fulfill the

specified percentages in subsection (2), then the shortfall shall

be paid to the district or intermediate district during the fiscal

year beginning on the October 1 following the determination and

payments under subsection (3) shall be adjusted as necessary. If

the department determines that the sum of the amounts allocated for

a fiscal year to a district or intermediate district under

subsection (2)(a) and (b) exceeds the sum of the amount necessary

to fulfill the specified percentages in subsection (2), then the

department shall deduct the amount of the excess from the

district's or intermediate district's payments under this article

for the fiscal year beginning on the October 1 following the

determination and payments under subsection (3) shall be adjusted

as necessary. However, if the amount allocated under subsection

(2)(a) in itself exceeds the amount necessary to fulfill the

specified percentages in subsection (2), there shall be no

deduction under this subsection.

(5) State funds shall be allocated on a total approved cost

basis. Federal funds shall be allocated under applicable federal

requirements, except that an amount not to exceed $3,500,000.00 may

be allocated by the department each fiscal year for ~~2016-2017 and~~

~~for~~ 2017-2018 and for 2018-2019 to districts, intermediate

districts, or other eligible entities on a competitive grant basis

for programs, equipment, and services that the department

determines to be designed to benefit or improve special education

on a statewide scale.

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

allocated an amount not to exceed $2,200,000.00 each fiscal year

for ~~2016-2017 and for~~ 2017-2018 and for 2018-2019 to reimburse 100%

of the net increase in necessary costs incurred by a district or

intermediate district in implementing the revisions in the

administrative rules for special education that became effective on

July 1, 1987. As used in this subsection, "net increase in

necessary costs" means the necessary additional costs incurred

solely because of new or revised requirements in the administrative

rules minus cost savings permitted in implementing the revised

rules. Net increase in necessary costs shall be determined in a

manner specified by the department.

(7) For purposes of sections 51a to 58, all of the following

apply:

(a) "Total approved costs of special education" shall be

determined in a manner specified by the department and may include

indirect costs, but shall not exceed 115% of approved direct costs

for section 52 and section 53a programs. The total approved costs

include salary and other compensation for all approved special

education personnel for the program, including payments for social

security and Medicare and public school employee retirement system

contributions. The total approved costs do not include salaries or

other compensation paid to administrative personnel who are not

special education personnel as defined in section 6 of the revised

school code, MCL 380.6. Costs reimbursed by federal funds, other

than those federal funds included in the allocation made under this

article, are not included. Special education approved personnel not

utilized full time in the evaluation of students or in the delivery

of special education programs, ancillary, and other related

services shall be reimbursed under this section only for that

portion of time actually spent providing these programs and

services, with the exception of special education programs and

services provided to youth placed in child caring institutions or

juvenile detention programs approved by the department to provide

an on-grounds education program.

(b) Beginning with the 2004-2005 fiscal year, a district or

intermediate district that employed special education support

services staff to provide special education support services in

2003-2004 or in a subsequent fiscal year and that in a fiscal year

after 2003-2004 receives the same type of support services from

another district or intermediate district shall report the cost of

those support services for special education reimbursement purposes

under this article. This subdivision does not prohibit the transfer

of special education classroom teachers and special education

classroom aides if the pupils counted in membership associated with

those special education classroom teachers and special education

classroom aides are transferred and counted in membership in the

other district or intermediate district in conjunction with the

transfer of those teachers and aides.

fiscal year that the amounts allocated for that fiscal year under

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

will exceed expenditures for that fiscal year under subsections

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

district or intermediate district whose reimbursement for that

fiscal year would otherwise be affected by subdivision (b),

subdivision (b) does not apply to the calculation of the

reimbursement for that district or intermediate district and

reimbursement for that district or intermediate district shall be

calculated in the same manner as it was for 2003-2004. If the

amount of the excess allocations under subsections (2), (3), (6),

and (11) and sections 53a, 54, and 56 is not sufficient to fully

fund the calculation of reimbursement to those districts and

intermediate districts under this subdivision, then the

calculations and resulting reimbursement under this subdivision

shall be prorated on an equal percentage basis. Beginning in 2015-

2016, the amount of reimbursement under this subdivision for a

fiscal year shall not exceed $2,000,000.00 for any district or

intermediate district.

(d) Reimbursement for ancillary and other related services, as

defined by R 340.1701c of the Michigan Administrative Code, shall

not be provided when those services are covered by and available

through private group health insurance carriers or federal

reimbursed program sources unless the department and district or

intermediate district agree otherwise and that agreement is

approved by the state budget director. Expenses, other than the

incidental expense of filing, shall not be borne by the parent. In

addition, the filing of claims shall not delay the education of a

pupil. A district or intermediate district shall be responsible for

payment of a deductible amount and for an advance payment required

until the time a claim is paid.

(e) Beginning with calculations for 2004-2005, if an

intermediate district purchases a special education pupil

transportation service from a constituent district that was

previously purchased from a private entity; if the purchase from

the constituent district is at a lower cost, adjusted for changes

in fuel costs; and if the cost shift from the intermediate district

to the constituent does not result in any net change in the revenue

the constituent district receives from payments under sections 22b

and 51c, then upon application by the intermediate district, the

department shall direct the intermediate district to continue to

report the cost associated with the specific identified special

education pupil transportation service and shall adjust the costs

reported by the constituent district to remove the cost associated

with that specific service.

(8) A pupil who is enrolled in a full-time special education

program conducted or administered by an intermediate district or a

pupil who is enrolled in the Michigan schools for the deaf and

blind shall not be included in the membership count of a district,

but shall be counted in membership in the intermediate district of

residence.

(9) Special education personnel transferred from 1 district to

another to implement the revised school code shall be entitled to

the rights, benefits, and tenure to which the person would

otherwise be entitled had that person been employed by the

receiving district originally.

(10) If a district or intermediate district uses money

received under this section for a purpose other than the purpose or

purposes for which the money is allocated, the department may

require the district or intermediate district to refund the amount

of money received. Money that is refunded shall be deposited in the

state treasury to the credit of the state school aid fund.

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

allocated the amount necessary, ~~estimated at $3,500,000.00 for~~

~~2016-2017, and~~ estimated at ~~$3,600,000.00~~ $3,300,000.00 for 2017-

2018, and estimated at $3,400,000.00 for 2018-2019, to pay the

foundation allowances for pupils described in this subsection. The

allocation to a district under this subsection shall be calculated

by multiplying the number of pupils described in this subsection

who are counted in membership in the district times the sum of the

foundation allowance under section 20 of the pupil's district of

residence plus the amount of the district's per-pupil allocation

under section 20m, not to exceed the basic foundation allowance

under section 20 for the current fiscal year, or, for a pupil

described in this subsection who is counted in membership in a

district that is a public school academy, times an amount equal to

the amount per membership pupil under section 20(6) or, for a pupil

described in this subsection who is counted in membership in the

education achievement system, times an amount equal to the amount

per membership pupil under section 20(7). The allocation to an

intermediate district under this subsection shall be calculated in

the same manner as for a district, using the foundation allowance

under section 20 of the pupil's district of residence, not to

exceed the basic foundation allowance under section 20 for the

current fiscal year, and that district's per-pupil allocation under

section 20m. This subsection applies to all of the following

pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district

who are not special education pupils and are served by the

intermediate district in a juvenile detention or child caring

facility.

by an intermediate district and provided educational services by

the department of health and human services.

(12) If it is determined that funds allocated under subsection

(2) or (11) or under section 51c will not be expended, funds up to

the amount necessary and available may be used to supplement the

allocations under subsection (2) or (11) or under section 51c in

order to fully fund those allocations. After payments under

subsections (2) and (11) and section 51c, the remaining

expenditures from the allocation in subsection (1) shall be made in

the following order:

(a) 100% of the reimbursement required under section 53a.

(b) 100% of the reimbursement required under subsection (6).

(d) 100% of the payment required under subsection (3).

(e) 100% of the payments under section 56.

(13) The allocations under subsections (2), (3), and (11)

shall be allocations to intermediate districts only and shall not

be allocations to districts, but instead shall be calculations used

only to determine the state payments under section 22b.

(14) If a public school academy that is not a cyber school, as

defined in section 551 of the revised school code, MCL 380.551,

enrolls under this section a pupil who resides outside of the

intermediate district in which the public school academy is located

and who is eligible for special education programs and services

according to statute or rule, or who is a child with disabilities,

as defined under the individuals with disabilities education act,

Public Law 108-446, the intermediate district in which the public

school academy is located and the public school academy shall enter

into a written agreement with the intermediate district in which

the pupil resides for the purpose of providing the pupil with a

free appropriate public education, and the written agreement shall

include at least an agreement on the responsibility for the payment

of the added costs of special education programs and services for

the pupil. If the public school academy that enrolls the pupil does

not enter into an agreement under this subsection, the public

school academy shall not charge the pupil's resident intermediate

district or the intermediate district in which the public school

academy is located the added costs of special education programs

and services for the pupil, and the public school academy is not

eligible for any payouts based on the funding formula outlined in

the resident or nonresident intermediate district's plan. If a

pupil is not enrolled in a public school academy under this

subsection, the provision of special education programs and

services and the payment of the added costs of special education

programs and services for a pupil described in this subsection are

the responsibility of the district and intermediate district in

which the pupil resides.

(15) For the purpose of receiving its federal allocation under

part B of the individuals with disabilities education act, Public

Law 108-446, a public school academy that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551, and

is in compliance with section 553a of the revised school code, MCL

380.553a, shall directly receive the federal allocation under part

B of the individuals with disabilities education act, Public Law

108-446, from the intermediate district in which the cyber school

is located, as the subrecipient. If the intermediate district does

not distribute the funds described in this subsection to the cyber

school by the part B application due date of July 1, the department

may distribute the funds described in this subsection directly to

the cyber school according to the formula prescribed in 34 CFR

300.705 and 34 CFR 300.816.

(16) For a public school academy that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551, and

is in compliance with section 553a of the revised school code, MCL

380.553a, that enrolls a pupil under this section, the intermediate

district in which the cyber school is located shall ensure that the

cyber school complies with sections 1701a, 1703, 1704, 1751, 1752,

1756, and 1757 of the revised school code, MCL 380.1701a, 380.1703,

380.1704, 380.1751, 380.1752, 380.1756, and 380.1757; applicable

rules; and the individuals with disabilities education act, Public

Law 108-446. From the general fund appropriation under subsection

(1), the department shall provide appropriate administrative

funding to the intermediate district in which that cyber school is

located for the purpose of ensuring that compliance.

(17) For the purposes of this section, the department or the

center shall only require a district or intermediate district to

report information that is not already available from the financial

information database maintained by the center.

Sec. 51c. As required by the court in the consolidated cases

known as ~~Durant v State of Michigan,~~ Durant v State of Michigan,

456 Mich 175 (1997), from the allocation under section 51a(1),

there is allocated each fiscal year ~~for 2016-2017 and~~ for 2017-2018

and for 2018-2019 the amount necessary, estimated at

~~$624,600,000.00 for 2016-2017 and $635,300,000.00~~ $636,600,000.00

for 2017-2018 and $650,600,000.00 for 2018-2019, for payments to

reimburse districts for 28.6138% of total approved costs of special

education excluding costs reimbursed under section 53a, and

70.4165% of total approved costs of special education

transportation. Funds allocated under this section that are not

expended in the state fiscal year for which they were allocated, as

determined by the department, may be used to supplement the

allocations under sections 22a and 22b in order to fully fund those

calculated allocations for the same fiscal year.

Sec. 51d. (1) From the federal funds appropriated in section

11, there is allocated ~~each fiscal year for 2016-2017 and for 2017-~~

~~2018,~~ for 2018-2019 all available federal funding, estimated at

$61,000,000.00, ~~each fiscal year,~~ for special education programs

and services that are funded by federal grants. All federal funds

allocated under this section shall be distributed in accordance

with federal law. Notwithstanding section 17b, payments of federal

funds to districts, intermediate districts, and other eligible

entities under this section shall be paid on a schedule determined

by the department.

(2) From the federal funds allocated under subsection (1), the

following amounts are allocated ~~each fiscal year for 2016-2017 and~~

~~for 2017-2018:~~for 2018-2019:

(a) An amount estimated at $14,000,000.00 ~~each fiscal year~~ for

handicapped infants and toddlers, funded from DED-OSERS,

handicapped infants and toddlers funds.

(b) An amount estimated at $12,000,000.00 ~~each fiscal year~~ for

preschool grants (Public Law 94-142), funded from DED-OSERS,

handicapped preschool incentive funds.

special education programs funded by DED-OSERS, handicapped

program, individuals with disabilities act funds.

(3) As used in this section, "DED-OSERS" means the United

States Department of Education Office of Special Education and

Rehabilitative Services.

Sec. 53a. (1) For districts, reimbursement for pupils

described in subsection (2) shall be 100% of the total approved

costs of operating special education programs and services approved

by the department and included in the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to ~~380.1766,~~ 380.1761, minus the district's foundation

allowance calculated under section 20 and minus the district's per-

pupil allocation under section 20m. For intermediate districts,

reimbursement for pupils described in subsection (2) shall be

calculated in the same manner as for a district, using the

foundation allowance under section 20 of the pupil's district of

residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year, and that district's per-

pupil allocation under section 20m.

(2) Reimbursement under subsection (1) is for the following

special education pupils:

(a) Pupils assigned to a district or intermediate district

through the community placement program of the courts or a state

agency, if the pupil was a resident of another intermediate

district at the time the pupil came under the jurisdiction of the

court or a state agency.

(b) Pupils who are residents of institutions operated by the

department of health and human services.

health institutions for the developmentally disabled who are placed

in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds

educational program longer than 180 days, but not longer than 233

days, at a residential child care institution, if the child care

institution offered in 1991-92 an on-grounds educational program

longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of

seeking a suitable home, if the parent does not reside in the same

intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly

attributable to educational programs for pupils described in

subsection (2), and that would not have been incurred if the pupils

were not being educated in a district or intermediate district, are

reimbursable under this section.

(4) The costs of transportation shall be funded under this

section and shall not be reimbursed under section 58.

(5) Not more than $10,500,000.00 of the allocation for ~~2017-~~

~~2018~~ 2018-2019 in section 51a(1) shall be allocated under this

section.

Sec. 54. Each intermediate district shall receive an amount

per-pupil for each pupil in attendance at the Michigan schools for

the deaf and blind. The amount shall be proportionate to the total

instructional cost at each school. Not more than $1,688,000.00 of

the allocation for ~~2017-2018~~ 2018-2019 in section 51a(1) shall be

allocated under this section.

Sec. 54b. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed $1,600,000.00 for

~~2017-2018~~ 2018-2019 to continue the implementation of the

recommendations of the special education reform task force

published in January 2016.

(2) ~~Except as provided in subsection (3), the~~ The department

shall use funds allocated under this section for the purpose of

piloting statewide implementation of the Michigan Integrated

Behavior and Learning Support Initiative (MiBLSI), a nationally

recognized program that includes positive behavioral intervention

and supports and provides a statewide structure to support local

initiatives for an integrated behavior and reading program. With

the assistance of the intermediate districts involved in MiBLSI,

the department shall identify a number of intermediate districts to

participate in the pilot that is sufficient to ensure that MiBLSI

can be implemented statewide with fidelity and sustainability. In

addition, the department shall identify an intermediate district to

act as a fiscal agent for these funds.

~~(3) In addition to the purpose under subsection (2), the~~

~~department shall use funds allocated under this section for the~~

~~purpose of providing training to intermediate districts and~~

~~districts related to the safe implementation of emergency~~

~~restraints and seclusion. The department shall develop and~~

~~implement a training program that is based on the state board's~~

~~adopted standards and on any other legislation enacted by the~~

~~legislature regarding the emergency use of seclusion and restraint.~~

Sec. 54d. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $5,000,000.00 for 2018-2019 to

intermediate districts for the purpose of providing state early on

services for children from birth to 3 years of age with a

developmental delay or a disability, or both, and their families,

as described in the early on Michigan state plan, as approved by

the department.

(2) To be eligible to receive grant funding under this

section, each intermediate district shall apply in a form and

manner determined by the department.

(3) The grant funding allocated under this section shall be

used to increase early on services and resources available to

children that demonstrate developmental delays to help prepare them

for success as they enter school. State early on services include

evaluating and providing early intervention services for eligible

infants and toddlers and their families to address developmental

delays, including those affecting physical, cognitive,

communication, adaptive, social, or emotional development. Grant

funds must not be used to supplant existing services that are

currently being provided.

(4) The funds allocated under subsection (1) must be

distributed to intermediate districts according to the department's

early on funding formula, used to distribute this state's award

under part c of the individuals with disabilities education act, 20

USC 1431 to 1444. Funds received under this section must not

supplant existing funds or resources allocated for early on early

intervention services. An intermediate district receiving funds

under this section shall maximize the capture of Medicaid funds to

support early on early intervention services to the extent

possible.

(5) An intermediate district that receives funds under this

section shall report data and other information to the department

in a form, manner, and frequency prescribed by the department to

allow for monitoring and evaluation to ensure that the children

described in subsection (1) received appropriate levels and types

of services delivered by qualified personnel, based on the

individual needs of the children and their families.

Sec. 56. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district.

(b) "Millage levied" means the millage levied for special

education pursuant to part 30 of the revised school code, MCL

380.1711 to ~~380.1743,~~ 380.1741, including a levy for debt service

obligations.

districts constituent to an intermediate district, except that if a

district has elected not to come under part 30 of the revised

school code, MCL 380.1711 to ~~380.1743,~~ 380.1741, membership and

taxable value of the district shall not be included in the

membership and taxable value of the intermediate district.

(2) From the allocation under section 51a(1), there is

allocated an amount not to exceed $37,758,100.00 each fiscal year

for ~~2016-2017 and for~~ 2017-2018 and for 2018-2019 to reimburse

intermediate districts levying millages for special education

pursuant to part 30 of the revised school code, MCL 380.1711 to

~~380.1743.~~ 380.1741. The purpose, use, and expenditure of the

reimbursement shall be limited as if the funds were generated by

these millages and governed by the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to ~~380.1766.~~ 380.1761. As a condition of receiving funds

under this section, an intermediate district distributing any

portion of special education millage funds to its constituent

districts shall submit for departmental approval and implement a

distribution plan.

~~(3) Reimbursement for those millages levied in 2015-2016 shall~~

~~be made in 2016-2017 at an amount per 2015-2016 membership pupil~~

~~computed by subtracting from $180,900.00 the 2015-2016 taxable~~

~~value behind each membership pupil and multiplying the resulting~~

~~difference by the 2015-2016 millage levied.~~

(3) ~~(4)~~ Reimbursement for those millages levied in 2016-2017

shall be made in 2017-2018 at an amount per 2016-2017 membership

pupil computed by subtracting from ~~$183,200.00~~ $183,900.00 the

2016-2017 taxable value behind each membership pupil and

multiplying the resulting difference by the 2016-2017 millage

levied, and then subtracting from that amount the 2016-2017 local

community stabilization share revenue for special education

purposes behind each membership pupil for reimbursement of personal

property exemption loss under the local community stabilization

authority act, 2014 PA 86, MCL 123.1341 to 123.1362.

(4) Reimbursement for those millages levied in 2017-2018 shall

be made in 2018-2019 at an amount per 2017-2018 membership pupil

computed by subtracting from $189,900.00 the 2017-2018 taxable

value behind each membership pupil and multiplying the resulting

difference by the 2017-2018 millage levied, and then subtracting

from that amount the 2017-2018 local community stabilization share

revenue for special education purposes behind each membership pupil

for reimbursement of personal property exemption loss under the

local community stabilization authority act, 2014 PA 86, MCL

123.1341 to 123.1362.

(5) The amount paid to a single intermediate district under

this section shall not exceed 62.9% of the total amount allocated

under subsection (2).

(6) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 61a. (1) From the ~~appropriation~~ funds appropriated in

section 11, there is allocated an amount not to exceed

~~$36,611,300.00~~ $18,911,300.00 from the state school aid fund

appropriation and an amount not to exceed $22,700,000.00 from the

talent investment fund appropriation for ~~2017-2018~~ 2018-2019 to

reimburse on an added cost basis districts, except for a district

that served as the fiscal agent for a vocational education

consortium in the 1993-94 school year and that has a foundation

allowance as calculated under section 20 greater than the minimum

foundation allowance under that section, and secondary area

vocational-technical education centers for secondary-level career

and technical education programs according to rules approved by the

superintendent. Applications for participation in the programs

shall be submitted in the form prescribed by the department. The

department shall determine the added cost for each career and

technical education program area. The allocation of added cost

funds shall be prioritized based on the capital and program

expenditures needed to operate the career and technical education

programs provided; the number of pupils enrolled; the advancement

of pupils through the instructional program; the existence of an

articulation agreement with at least 1 postsecondary institution

that provides pupils with opportunities to earn postsecondary

credit during the pupil's participation in the career and technical

education program and transfers those credits to the postsecondary

institution upon completion of the career and technical education

program; and the program rank in student placement, job openings,

and wages, and shall not exceed 75% of the added cost of any

program. Notwithstanding any rule or department determination to

the contrary, when determining a district's allocation or the

formula for making allocations under this section, the department

shall include the participation of pupils in grade 9 in all of

those determinations and in all portions of the formula. With the

approval of the department, the board of a district maintaining a

secondary career and technical education program may offer the

program for the period from the close of the school year until

September 1. The program shall use existing facilities and shall be

operated as prescribed by rules promulgated by the superintendent.

(2) Except for a district that served as the fiscal agent for

a vocational education consortium in the 1993-94 school year,

districts and intermediate districts shall be reimbursed for local

career and technical education administration, shared time career

and technical education administration, and career education

planning district career and technical education administration.

The definition of what constitutes administration and reimbursement

shall be pursuant to guidelines adopted by the superintendent. Not

more than $800,000.00 of the allocation in subsection (1) shall be

distributed under this subsection.

(3) A career and technical education program funded under this

section may provide an opportunity for participants who are

eligible to be funded under section 107 to enroll in the career and

technical education program funded under this section if the

participation does not occur during regular school hours.

(4) In addition to the money allocated under subsections (1) ,

and (5), ~~and (6),~~ from the general fund money appropriated in

section 11, there is allocated for ~~2017-2018~~ 2018-2019 an amount

not to exceed ~~$79,000.00~~ $80,000.00 to an eligible Michigan-

approved 501(c)(3) organization for the purposes of teaching or

training restaurant management and culinary arts for career and

professional development. The department shall oversee funds

distributed to an eligible grantee under this section. As used in

this subsection, "eligible Michigan-approved 501(c)(3)

organization" means an organization that is exempt from taxation

under section 501(c)(3) of the internal revenue code of 1986, 26

USC 501, that provides the ProStart curriculum and training to

state-approved career and technical education programs with

classification of instructional programs (CIP) codes in the 12.05xx

category, and that administers national certification for the

purpose of restaurant management and culinary arts for career and

professional development.

(5) In addition to the funds allocated under subsections (1) ,

and (4), ~~and (6),~~ from the funds appropriated in section 11, there

is allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

$1,000,000.00 for competitive grants to intermediate districts to

hire career and technical education counselors. All of the

following apply to this funding:

(a) An intermediate district seeking a grant under this

subsection shall apply to the department in a form and manner

specified by the department.

(b) The department shall award grants under this subsection on

a competitive basis to no more than 3 intermediate districts ~~but~~

~~shall give priority to the intermediate district that has the~~

~~greatest number of pupils enrolled in its constituent districts and~~

~~shall ensure that grants are equitably distributed to the various~~

~~geographic areas of this state and to urban and rural areas.~~that

received funding under this section for 2017-2018.

intermediate district shall do all of the following:

(i) Catalog all available K-12 and other workforce development

programs and services, including job search, job training, pre-

employment certifications, career awareness programs, career and

technical education programs, and other related programs and

services offered by districts or intermediate districts,

postsecondary institutions, and other private or public service

organizations.

(ii) Develop an outreach program that educates students about

career and technical education options and connects students to the

services cataloged under subparagraph (i).

(iii) Track student placement and report on student placement

to the house and senate appropriations subcommittees on school aid

no later than June 30, ~~2018~~ 2019 in the form and manner prescribed

by the department.

~~(6) In addition to the funds allocated under subsections (1),~~

~~(4), and (5), there is allocated an amount not to exceed~~

~~$160,000.00 for 2017-2018 to eligible districts under this~~

~~subsection for the purpose of career and technical education~~

~~counselors. To be eligible to receive funding under this~~

~~subsection, an eligible district must be a constituent district of~~

~~an intermediate district that is located in prosperity region 6 and~~

~~borders prosperity regions 5, 7, and 9, and must have at least~~

~~1,600 pupils in membership in 2017-2018. A grant to an eligible~~

~~district under this subsection shall be $80,000.00.~~

(6) Not later than December 1, 2018, a district or

intermediate district receiving funds under this section shall

report to the department on the number of male and female program

participants and steps the district or intermediate district is

taking to reduce the disparity between the number of male and

female program participants. Not later than February 1, 2019, the

department shall compile and summarize the results and provide

recommendations to reduce the disparity in a report to the house

and senate appropriations subcommittees on school aid and the house

and senate fiscal agencies.

Sec. 61b. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $8,000,000.00 ~~each fiscal year~~

~~for 2016-2017 and 2017-2018~~ for 2018-2019 for CTE early/middle

college and CTE dual enrollment programs authorized under this

section and for planning grants for the development or expansion of

CTE early/middle college programs. The purpose of these programs is

to increase the number of Michigan residents with high-quality

degrees or credentials, and to increase the number of students who

are college and career ready upon high school graduation.

(2) From the funds allocated under subsection (1), an amount

as determined under this subsection shall be allocated to each

intermediate district serving as a fiscal agent for state-approved

CTE early/middle college and CTE dual enrollment programs in each

of the prosperity regions and subregions identified by the

department. An intermediate district shall not use more than 5% of

the funds allocated under this subsection for administrative costs

for serving as the fiscal agent.

(3) To be an eligible fiscal agent, an intermediate district

must agree to do all of the following in a form and manner

determined by the department:

(a) Distribute funds to eligible CTE early/middle college and

CTE dual enrollment programs in a prosperity region or subregion as

described in this section.

(b) Collaborate with the ~~talent district career council~~ career

and educational advisory council that is located in the prosperity

region or subregion to develop a regional strategic plan under

subsection (4) that aligns CTE programs and services into an

efficient and effective delivery system for high school students.

the prosperity region or subregion as described under subsection

(4). Regional processes shall be approved by the department before

the ranking of career clusters.

(d) Report CTE early/middle college and CTE dual enrollment

program and student data and information as prescribed by the

department and the center.

(4) A regional strategic plan must be approved by the ~~talent~~

~~district~~ career and educational advisory council before submission

to the department. A regional strategic plan shall include, but not

be limited to, the following:

(a) An identification of regional employer need based on a

ranking of all career clusters in the prosperity region or

subregion ranked by 10-year job openings projections and median

wage for each standard occupational code in each career cluster as

obtained from the United States Bureau of Labor Statistics.

Standard occupational codes within high-ranking clusters also may

be further ranked by median wage. The rankings shall be reviewed by

the ~~talent district~~ career and educational advisory council located

in the prosperity region or subregion and modified if necessary to

accurately reflect employer demand for talent in the prosperity

region or subregion. A ~~talent district~~ career and educational

advisory council shall document that it has conducted this review

and certify that it is accurate. These career cluster rankings

shall be determined and updated once every 4 years.

(b) An identification of educational entities in the

prosperity region or subregion that will provide eligible CTE

early/middle college and CTE dual enrollment programs including

districts, intermediate districts, postsecondary institutions, and

noncredit occupational training programs leading to an industry-

recognized credential.

early/middle college and CTE dual enrollment programs in the

prosperity region or subregion.

(d) Any other requirements as defined by the department.

(5) An eligible CTE program is a program that meets all of the

following:

(a) Has been identified in the highest 5 career cluster

rankings in any of the 10 regional strategic plans jointly approved

by the Michigan talent investment agency in the department of

talent and economic development and the department.

(b) Has a coherent sequence of courses that will allow a

student to earn a high school diploma and achieve at least 1 of the

following in a specific career cluster:

(i) An associate degree.

(ii) An industry-recognized technical certification approved

by the Michigan talent investment agency in the department of

talent and economic development.

(iii) Up to 60 transferable college credits.

(iv) Participation in a registered apprenticeship.

(d) Has an articulation agreement with at least 1

postsecondary institution that provides students with opportunities

to receive postsecondary credits during the student's participation

in the CTE early/middle college or CTE dual enrollment program and

transfers those credits to the postsecondary institution upon

completion of the CTE early/middle college or CTE dual enrollment

program.

(e) Provides instruction that is supervised, directed, or

coordinated by an appropriately certificated CTE teacher or, for

concurrent enrollment courses, a postsecondary faculty member.

(f) Provides for highly integrated student support services

that include at least the following:

(i) Teachers as academic advisors.

(ii) Supervised course selection.

(iii) Monitoring of student progress and completion.

(iv) Career planning services provided by a local one-stop

service center as described in the Michigan works one-stop service

center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a

high school counselor or advisor.

(g) Has courses that are taught on a college campus, are

college courses offered at the high school and taught by college

faculty, or are courses taught in combination with online

instruction.

(6) Funds to eligible CTE early/middle college and CTE dual

enrollment programs shall be distributed as follows:

(a) The department shall determine statewide average CTE costs

per pupil for each CIP code program by calculating statewide

average costs for each CIP code program for the 3 most recent

fiscal years.

(b) Distribution to each eligible CTE early/middle college or

CTE dual enrollment program shall be the product of 50% of CTE

costs per pupil times the current year pupil enrollment of each

eligible CTE early/middle college or CTE dual enrollment program.

(7) In order to receive funds under this section, a CTE

early/middle college or CTE dual enrollment program shall furnish

to the intermediate district that is the fiscal agent identified in

subsection ~~(1),~~ (2), in a form and manner determined by the

department, all information needed to administer this program and

meet federal reporting requirements; shall allow the department or

the department's designee to review all records related to the

program for which it receives funds; and shall reimburse the state

for all disallowances found in the review, as determined by the

department.

(8) There is allocated from the funds under subsection (1) an

amount not to exceed $500,000.00 for ~~2017-2018~~ 2018-2019 for grants

to intermediate districts or consortia of intermediate districts

for the purpose of planning for new or expanded early middle

college programs. Applications for grants shall be submitted in a

form and manner determined by the department. The amount of a grant

under this subsection shall not exceed $50,000.00. To be eligible

for a grant under this subsection, an intermediate district or

consortia of intermediate districts must provide matching funds

equal to the grant received under this subsection. Notwithstanding

section 17b, payments under this subsection may be made as

determined by the department.

(9) Funds distributed under this section may be used to fund

program expenditures that would otherwise be paid from foundation

allowances. A program receiving funding under section 61a may

receive funding under this section for allowable costs that exceed

the reimbursement the program received under section 61a. The

combined payments received by a program under section 61a and this

section shall not exceed the total allowable costs of the program.

A program provider shall not use more than 5% of the funds

allocated under this section to the program for administrative

costs.

(10) If the allocation under subsection (1) is insufficient to

fully fund payments as otherwise calculated under this section, the

department shall prorate payments under this section on an equal

percentage basis.

(11) If pupils enrolled in a career cluster in an eligible CTE

early/middle college or CTE dual enrollment program qualify to be

reimbursed under this section, those pupils continue to qualify for

reimbursement until graduation, even if the career cluster is no

longer identified as being in the highest 5 career cluster

rankings.

(12) As used in this section:

(a) "Allowable costs" means those costs directly attributable

to the program as jointly determined by the Michigan talent

investment agency and the department.

(b) "Career and educational advisory council" means an

advisory council to the local workforce development boards located

in a prosperity region consisting of educational, employer, labor,

and parent representatives.

(d) ~~(c)~~ "CTE" means career and technical education programs.

(e) ~~(d)~~ "CTE dual enrollment program" means a 4-year high

school program of postsecondary courses offered by eligible

postsecondary educational institutions that leads to an industry-

recognized certification or degree.

(f) ~~(e)~~ "Early/middle college program" means a 5-year high

school program.

(g) ~~(f)~~ "Eligible postsecondary educational institution" means

that term as defined in section 3 of the career and technical

preparation act, 2000 PA 258, MCL 388.1903.

~~(g) "Talent district career council" means an advisory council~~

~~to the local workforce development boards located in a prosperity~~

~~region consisting of educational, employer, labor, and parent~~

~~representatives.~~

Sec. 61c. (1) From the ~~general~~ talent investment fund

appropriation in section 11, there is allocated for ~~2017-2018~~ 2018-

2019 an amount not to exceed ~~$7,000,000.00~~ $14,000,000.00 to career

education planning districts for the CTE skilled trades initiative

described in subsections (2) to (5).

(2) To be eligible to receive funding under subsection (1),

each CEPD shall apply in a form and manner determined by the

department. Funding to each CEPD shall be equal to the quotient of

the allocation under subsection (1) and the sum of the number of

career education planning districts applying for funding under

subsection (1).

(3) The funding allocated to each CEPD shall be used to update

equipment in current CTE programs that have been identified in the

highest 5 career cluster rankings in any of the 10 regional

strategic plans jointly approved by the Michigan talent investment

agency in the department of talent and economic development and the

department, for training on new equipment, for professional

development relating to computer science or coding, or for new and

emerging certified CTE programs to allow CEPD administrators to

provide programming in communities that will enhance economic

development. The funding for equipment should be used to support

and enhance community areas that have sustained job growth, and act

as a commitment to build a more qualified and skilled workforce. In

addition, each CEPD is encouraged to explore the option of leasing

equipment from local private industry to encourage the use of the

most advanced equipment.

(4) The allocation of funds at the local level shall be

determined by CEPD administrators using data from the state,

region, and local sources to make well-informed decisions on

program equipment improvements. Grants awarded by CEPD

administrators for capital infrastructure shall be used to ensure

that CTE programs can deliver educational programs in high-wage,

high-skill, and high-demand occupations. Each CEPD shall continue

to ensure that program advisory boards make recommendations on

needed improvements for equipment that support job growth and job

skill development and retention for both the present and the

future.

(5) Not later than September 15 of each fiscal year, each CEPD

receiving funding under subsection (1) shall annually report to the

department, the senate and house appropriations subcommittees on

state school aid, and the senate and house fiscal agencies and

legislature on equipment purchased under subsection (1). In

addition, the report shall identify growth data on program

involvement, retention, and development of student skills.

(6) In addition to the funds allocated under subsection (1),

from the ~~general~~ talent investment fund appropriation in section

11, there is allocated for ~~2017-2018~~ 2018-2019 an amount not to

exceed ~~$500,000.00~~ $1,000,000.00 to districts for a competitive

grant to mechatronics programs that operated in ~~2016-2017~~ 2017-2018

for updating mechatronics program equipment.

(7) In addition to the funds allocated under subsections (1)

and (6), from the ~~general~~ talent investment fund appropriation in

section 11, there is allocated for ~~2017-2018~~ 2018-2019 an amount

not to exceed ~~$5,000,000.00~~ $10,000,000.00 for grants to districts

and intermediate districts or consortia of districts and

intermediate districts for the CTE equipment and innovation

competitive grant program described in subsections (8) to (10).

(8) To be eligible to receive a competitive grant under

subsection (7), an applicant shall apply in a form and manner

determined by the department. The amount of a grant awarded from

the allocation under subsection (7) shall be at least $100,000.00

but shall not exceed $1,000,000.00 and shall be used for the

purchase or lease of equipment from private industry partners and

for related capacity building activities. A grant application for a

grant awarded from the allocation under subsection (7) shall

include at least all of the following information:

(a) A description of how the proposed capital infrastructure

initiative will provide increased career opportunities for students

and adult learners in high-wage, high-skill, and high-demand

occupations.

(b) Demonstrated evidence of employer demand for the

initiative and related CTE training, including documentation of

industry involvement in the initiative that will allow for work-

based learning opportunities, apprenticeships, teacher externships,

or a combination of these.

commitment of local or regional partners to sustain the initiative

beyond the initial grant funding.

(d) A description of how the initiative aligns with other CTE

and community college programs and how the equipment will be

utilized by initiative partners.

(e) Other information as requested by the department and the

department of talent and economic development.

(9) The department shall evaluate grant applications under

subsection (8) in collaboration with the department of talent and

economic development. A member of the governor's talent investment

board may serve in an advisory capacity in the evaluation process

as determined by the department of talent and economic development.

(10) Not later than December 15 of each fiscal year, each

grant recipient receiving funding under subsection (7) shall

annually report to the department, the department of talent and

economic development, the house and senate appropriations

subcommittees on state school aid, the house and senate fiscal

agencies, and the state budget director on equipment purchased

under subsection (7) in the immediately preceding school year. The

report shall identify growth data on program involvement,

retention, and development of student and adult learner skills.

(11) As used in this section:

(a) "CEPD" means a career education planning district

described in this section.

(b) "CTE" means career and technical education.

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district or the total membership for the immediately

preceding fiscal year of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area

vocational-technical education pursuant to sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690, including a levy

for debt service obligations incurred as the result of borrowing

for capital outlay projects and in meeting capital projects fund

requirements of area vocational-technical education.

districts constituent to an intermediate district or area

vocational-technical education program, except that if a district

has elected not to come under sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690, the membership and taxable

value of that district shall not be included in the membership and

taxable value of the intermediate district. However, the membership

and taxable value of a district that has elected not to come under

sections 681 to 690 of the revised school code, MCL 380.681 to

380.690, shall be included in the membership and taxable value of

the intermediate district if the district meets both of the

following:

(i) The district operates the area vocational-technical

education program pursuant to a contract with the intermediate

district.

(ii) The district contributes an annual amount to the

operation of the program that is commensurate with the revenue that

would have been raised for operation of the program if millage were

levied in the district for the program under sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated

an amount not to exceed $9,190,000.00 each fiscal year ~~for 2016-~~

~~2017 and~~ for 2017-2018 and for 2018-2019 to reimburse intermediate

districts and area vocational-technical education programs

established under section 690(3) of the revised school code, MCL

380.690, levying millages for area vocational-technical education

pursuant to sections 681 to 690 of the revised school code, MCL

380.681 to 380.690. The purpose, use, and expenditure of the

reimbursement shall be limited as if the funds were generated by

those millages.

~~(3) Reimbursement for the millages levied in 2015-2016 shall~~

~~be made in 2016-2017 at an amount per 2015-2016 membership pupil~~

~~computed by subtracting from $198,100.00 the 2015-2016 taxable~~

~~value behind each membership pupil and multiplying the resulting~~

~~difference by the 2015-2016 millage levied.~~

(3) ~~(4)~~ Reimbursement for those millages levied in 2016-2017

shall be made in 2017-2018 at an amount per 2016-2017 membership

pupil computed by subtracting from ~~$199,000.00~~ $200,400.00 the

2016-2017 taxable value behind each membership pupil and

multiplying the resulting difference by the 2016-2017 millage

levied, and then subtracting from that amount the 2016-2017 local

community stabilization share revenue for area vocational technical

education behind each membership pupil for reimbursement of

personal property exemption loss under the local community

stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362.

(4) Reimbursement for those millages levied in 2017-2018 shall

be made in 2018-2019 at an amount per 2017-2018 membership pupil

computed by subtracting from $205,600.00 the 2017-2018 taxable

value behind each membership pupil and multiplying the resulting

difference by the 2017-2018 millage levied, and then subtracting

from that amount the 2017-2018 local community stabilization share

revenue for area vocational technical education behind each

membership pupil for reimbursement of personal property exemption

loss under the local community stabilization authority act, 2014 PA

86, MCL 123.1341 to 123.1362.

(5) The amount paid to a single intermediate district under

this section shall not exceed 38.4% of the total amount allocated

under subsection (2).

(6) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 64b. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $1,750,000.00 for ~~2017-2018~~ 2018-

2019 for supplemental payments to districts that support the

attendance of district pupils in grades 9 to 12 under the

postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to

388.524, or under the career and technical preparation act, 2000 PA

258, MCL 388.1901 to 388.1913, consistent with section 21b, or that

support the attendance of district pupils in a concurrent

enrollment program if the district meets the requirements under

subsection (3). Programs funded under this section are intended to

increase the number of pupils who are college- and career-ready

upon high school graduation.

(2) To be eligible for payments under this section for

supporting the attendance of district pupils under the

postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to

388.524, or under the career and technical preparation act, 2000 PA

258, MCL 388.1901 to 388.1913, a district shall do all of the

following:

(a) Provide information to all high school pupils on

postsecondary enrollment options, including enrollment eligibility,

the institutions and types of courses that are eligible for

participation, the decision-making process for granting academic

credit, and an explanation of eligible charges that will be paid by

the district.

(b) Enter into a written agreement with a postsecondary

institution before the enrollment of district pupils.

(d) Award high school credit for the postsecondary course if

the pupil successfully completes the course.

(3) To be eligible for payments under this section for pupils

enrolled in a concurrent enrollment program, a district shall do

all of the following:

(a) Provide information to all high school pupils on

postsecondary enrollment options, including enrollment eligibility,

the institutions and types of courses that are eligible for

participation, the decision-making process for granting academic

credit, and an explanation of eligible charges that will be paid by

the district.

(b) Enter into a written agreement with a postsecondary

institution establishing the concurrent enrollment program before

the enrollment of district pupils in a postsecondary course through

the postsecondary institution.

teacher or postsecondary faculty pursuant to standards established

by the postsecondary institution with which the district has

entered into a written agreement to operate the concurrent

enrollment program.

(d) Ensure that the written agreement provides that the

postsecondary institution agrees not to charge the pupil for any

cost of the program.

(e) Ensure that the course is taught in the local district or

intermediate district.

(f) Ensure that the pupil is awarded both high school and

college credit at a community college or state public university in

this state upon successful completion of the course as outlined in

the agreement with the postsecondary institution.

(4) Funds shall be awarded to eligible districts under this

section in the following manner:

(a) A payment of $10.00 per credit, for up to 3 credits, for a

credit-bearing course in which a pupil enrolls during the current

school year, as described under either subsection (2) or (3).

(b) An additional payment of $30.00 per-pupil per course

identified in subdivision (a), if the pupil successfully completes,

and is awarded both high school and postsecondary credit for, the

course during the current school year.

(5) A district requesting payment under this section shall

submit an application to the department in the form and manner

prescribed by the department. Notwithstanding section 17b, payments

under this section shall be made on a schedule determined by the

department.

Sec. 64d. (1) From the ~~general~~ talent investment fund

appropriation under section 11, there is allocated an amount not to

exceed $2,300,000.00 ~~for 2017-2018~~ for 2018-2019 for a ~~competitive~~

grant to provide information technology education opportunities to

students attending schools operating grades K-12, career and

technical centers and career academies, and community colleges and

universities. It is the intent of the legislature that 2017-2018 is

the ~~first~~ second of 3 years of funding for the ~~competitive~~ grant

program. Funds allocated under this section shall be used for

instruction in information technology skills and competencies that

are essential for the workplace and requested by employers and

shall allow participating students and faculties to secure broad-

based information technology certifications and, if applicable,

college credit.

(2) The department shall select a the provider ~~using a~~

~~competitive request for proposals process. Proposals submitted~~

~~under this subsection shall~~ that received funding under this

section in 2017-2018. A program funded under this section must

include at least the following components:

(a) Research- and skill-development-based and information

technology curriculum.

(b) Online access to the curriculum.

(d) A program that includes coding curriculum and material

that are aligned to the CS AP exam and grants a certificate upon

completion of the program.

(e) Components for all grade levels on computational thinking

skills development using the latest gaming software.

(f) A process for students to obtain certifications of skills

and competencies in a broad base of information technology-related

skill areas.

(g) Professional development for faculty.

(h) Implementation and program support, including, but not

limited to, integration with current curriculum standards.

(i) Methods for students to earn college credit.

~~(3) The department shall give priority to proposals by~~

~~providers that have previously demonstrated success in this state~~

~~in providing high-quality information technology education~~

~~opportunities to students.~~

(3) ~~(4)~~ The funds allocated under this section for ~~2017-2018~~

2018-2019 are a work project appropriation, and any unexpended

funds for ~~2017-2018~~ 2018-2019 are to be carried forward into ~~2018-~~

~~2019.~~ 2019-2020. The purpose of the work project is to continue to

provide information technology education opportunities described in

this section. The estimated completion date of the work project is

September 30, 2020.

Sec. 65. (1) From the general fund money appropriated under

section 11, there is allocated an amount not to exceed $340,000.00

~~for 2017-2018~~ for 2018-2019 for a pre-college engineering K-12

educational program that is focused on the development of a diverse

future Michigan workforce, that serves multiple communities within

southeast Michigan, that enrolls pupils from multiple districts,

and that received funds appropriated for this purpose in the

appropriations act that provided the Michigan strategic fund budget

for 2014-2015.

(2) To be eligible for funding under this section, a program

must have the ability to expose pupils to, and motivate and prepare

pupils for, science, technology, engineering, and mathematics

careers and postsecondary education with special attention given to

groups of pupils who are at-risk and underrepresented in technical

professions and careers.

Sec. 67. (1) From the general fund amount appropriated in

section 11, there is allocated an amount not to exceed

$3,000,000.00 for ~~2017-2018~~ 2018-2019 for college access programs.

The programs funded under this section are intended to inform

students of college and career options and to provide resources

intended to increase the number of pupils who are adequately

prepared with the information needed to make informed decisions on

college and career. The funds appropriated under this section are

intended to be used to increase the number of Michigan residents

with high-quality degrees or credentials. Funds appropriated under

this section shall not be used to supplant funding for counselors

already funded by districts.

(2) The talent investment agency of the department of talent

and economic development shall administer funds allocated under

this section in collaboration with the Michigan college access

network. These funds may be used for any of the following purposes:

(a) Michigan college access network operations, programming,

and services to local college access networks.

(b) Local college access networks, which are community-based

college access/success partnerships committed to increasing the

college participation and completion rates within geographically

defined communities through a coordinated strategy.

to place trained, recently graduated college advisors in high

schools that serve significant numbers of low-income and first-

generation college-going pupils. State funds used for this purpose

may not exceed 33% of the total funds available under this

subsection.

(d) Subgrants of up to $5,000.00 to districts with

comprehensive high schools that establish a college access team and

implement specific strategies to create a college-going culture in

a high school in a form and manner approved by the Michigan college

access network and the Michigan talent investment agency.

(e) The Michigan college access portal, an online one-stop

portal to help pupils and families plan and apply for college.

(f) Public awareness and outreach campaigns to encourage low-

income and first-generation college-going pupils to take necessary

steps toward college and to assist pupils and families in

completing a timely and accurate free application for federal

student aid.

(g) Subgrants to postsecondary institutions to recruit, hire,

and train college student mentors and college advisors to assist

high school pupils in navigating the postsecondary planning and

enrollment process.

(3) For the purposes of this section, "college" means any

postsecondary educational opportunity that leads to a career,

including, but not limited to, a postsecondary degree, industry-

recognized technical certification, or registered apprenticeship.

Sec. 67a. (1) From the ~~general fund money appropriated~~ talent

investment fund appropriation in section 11, there is allocated for

~~2017-2018~~ 2018-2019 an amount not to exceed ~~$1,000,000.00~~

$1,500,000.00 to expand an eligible web-based career preparation

and readiness platform to prosperity regions beyond where the

platform is currently being utilized.

(2) In order to be eligible for funding under this section, a

career preparation and readiness platform shall meet all of the

following:

(a) Has a partnership with intermediate districts, community

colleges, workforce development agencies, and community employers.

(b) Assesses student skills, abilities, and preferences to

match them with careers of interest.

than 600 career profiles, including, but not limited to, career

descriptions, education and training requirements, and earning

information.

(d) Connects with local companies through company profiles

that include, but are not limited to, description, location, career

opportunities, and work-based learning activities.

(e) Allows students to experience careers firsthand by

searching for job shadowing, mock interviews, company tours,

company events, and internship opportunities offered by employers

in a student's area.

(f) Provides students with step-by-step help to develop a job

search plan, write a resume and cover letter, and prepare for job

interviews.

(g) Provides students with an understanding of the education

and training required for a particular career, a comparison of

school data and profiles, and access to college preparation,

scholarship, and financial aid information.

(h) Received funding under this section in 2017-2018.

(i) Commits to provide matching funds of 25%.

(3) A grantee receiving funding under this section shall

comply with the requirements of section 19b.

(4) Notwithstanding section 17b, payments under this section

shall be paid on a schedule determined by the department.

Sec. 68. (1) From the talent investment fund appropriation in

section 11, there is allocated an amount not to exceed

$21,900,000.00 for 2018-2019 for the expansion of K-12 education

programs that focus on creating competencies in high-demand fields.

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

an amount not to exceed $20,960,000.00 for competitive grants to

districts, intermediate districts, community colleges, colleges,

and universities that are members of and apply on behalf of a

talent consortium, in a form and manner prescribed by the

department and the department of talent and economic development.

(3) For purposes of competitive grants allocated under

subsection (2), all of the following shall apply:

(a) Districts, intermediate districts, and other eligible

applicants as described in this section working in conjunction with

a talent consortium shall apply in a form and manner determined by

the department of talent and economic development and the

department.

(b) Grants awarded under this section must be paid over 3

years beginning in 2018-2019.

of the talent consortium for any of the following:

(i) Stipends for industry mentors to assist in teaching

classes in high-demand fields. Grants awarded for this purpose

shall not exceed $5,000.00 per mentor per year.

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

purpose of earning credentials in high-demand fields. Grants

awarded for this purpose shall not exceed $200.00 per pupil. An

advanced placement test does not qualify for funding under this

subsection unless it is a test for physics c: electricity and

magnetism, physics c: mechanics, computer science a, computer

science principals, or additional tests as determined appropriate

by the department, in collaboration with the department of talent

and economic development.

(iii) Relevant equipment that is used in courses that result

in credentials in high-demand fields. In order to use funds for

this purpose, the talent consortium of which the applicant is a

member must commit to provide an equal amount of matching funds

toward equipment purchases. Grants awarded for this purpose shall

not exceed $20,000.00.

(iv) Professional development for teachers that improve their

capacity to teach high-demand skills. The department shall publish

a list of preferred partners and providers and shall give

preference to applications utilizing those partners or providers.

The department shall determine the grants awarded under this

subdivision. Grants awarded for this purpose shall not exceed

$5,000.00 per teacher.

(v) 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. It is the intent of the legislature that

programs created or expanded using funds for this purpose become

sustainable through increased enrollment, community partnerships,

or other means. Grants awarded for this purpose shall not exceed

$100,000.00.

(d) Programs that receive grant funds under this section must,

to the extent possible, use a competency-based instructional model.

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

an amount not to exceed $940,000.00 to the department for costs

related to the administration of this section.

Sec. 68a. (1) From the talent investment fund appropriation in

section 11, there is allocated for 2018-2019 an amount not to

exceed $6,100,000.00 for the purposes of strengthening curriculum,

materials, professional development, instructional practices, pupil

projects, and other items needed for competency development and

credentials in high-demand fields.

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

an amount not to exceed $4,000,000.00 for competitive grants to

members of talent consortiums for the development of new curricula,

materials, professional development, instructional practices, and

student projects in high-demand fields. Curricula developed with

grant funds awarded under this subsection must include at least

professional development, materials, lesson plans, pupil projects,

and other needed items in a field or topic that lacks sufficient

curricula, as determined by the department and the department of

talent and economic development. Grants must be awarded in the

following manner:

(a) No more than 10 grants shall be awarded in amounts between

$50,000.00 and $100,000.00.

(b) No more than 100 grants shall be awarded in an amount

between $15,000.00 and $25,000.00.

than $15,000.00.

(d) If the state superintendent does not expect to reach the

maximum number of each grant type listed in this subsection prior

to fiscal year 2021-2022, the state superintendent may direct the

department to reprioritize the remaining grant dollars to maximize

the creation of items in high-demand fields under this section.

(3) The department, in collaboration with the department of

talent and economic development, shall ensure that applications for

grants awarded under subsection (2) include all of the following:

(a) A demonstration of a focus on competency-based

instruction.

(b) A commitment that any items created using awarded funds

are, to the degree practicable, made open source, which means that

they are made available for use electronically and at no charge to

other educational institutions in this state in order to replicate

the program.

employers that is also a member of the recipient's talent

consortium will be directly and meaningfully involved in the

creation of the curriculum. The application must include a letter

from the applicant detailing how the employer or entity

representing employers will be involved in the creation of the

curriculum.

(4) Districts, intermediate districts, community colleges,

colleges, and universities that are members of and apply on behalf

of a talent consortium are eligible to apply for grants under

subsection (2), in a form and manner prescribed by the department

and the department of talent and economic development.

(5) The department, in collaboration with the department of

talent and economic development, shall, to the extent possible,

award grants under this section in a manner that minimizes the

creation of items that are similar to items already in existence

and maximizes the creation of new curricula, instructional

materials, lesson plans, pupil projects, and other items in areas

where those items do not already exist.

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

allocated an amount not to exceed $2,000,000.00 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.

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

allocated an amount not to exceed $100,000.00 to the department for

costs related to the administration of this section.

Sec. 68b. (1) From the talent investment fund appropriation in

section 11, there is allocated an amount not to exceed

$10,700,000.00 for 2018-2019 for the Michigan talent pledge

scholarship program administered by the department of treasury.

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

an amount not to exceed $10,000,000.00 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 2 cohorts of eligible

individuals over 4 years. Awards shall be in the amounts of the

following:

(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) Possess a high school diploma, recognized equivalency, or

recognized equivalency certificate.

(b) Be a resident of this state and 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,

MCL 400.107, at the time of application.

(e) Be admitted to an eligible postsecondary institution and

enrolled full-time in a qualifying program.

(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 uses a standard grading model, or, if the

institution uses a competency-based grading model during their 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) An eligible postsecondary institution is any 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, a 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).

(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 a 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 does 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 in subsection (1), there is an

amount allocated not to exceed $700,000.00 to the department of

treasury for costs related to the administration of this section.

Sec. 68c. (1) From the talent investment fund appropriation in

section 11, there is allocated for 2018-2019 an amount not to

exceed $4,600,000.00 for the innovative educator corps program

developed and implemented under subsection (2).

(2) The department shall develop and implement an innovative

educator corps program that meets all of the following:

(a) Allows an innovative educator to provide professional

development to other educators.

(b) Requires the department to collaborate with innovative

educators regarding new pilot programs.

education issues that includes innovative educators, policy makers,

legislators, and business leaders.

(d) Provides business cards or other identification for

innovative educators that identify the innovative educator as a

member of an elite corps of educators in this state.

(e) Provides innovative educators a yearly stipend in an

amount between $5,000.00 and $10,000.00.

(f) Selects innovative educators using the selection process

under subsection (3).

(g) Examines the use of innovative educators to support low-

performing schools, including, but not limited to, schools that are

subject to a partnership agreement.

(3) The department shall conduct an annual process for

selecting innovative educators for the innovative educator corps

developed and implemented under subsection (2). The selection

process must meet all of the following:

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

educator for every 2,000 pupils enrolled in the district to the

intermediate district in which the district is located for

appointment to the innovative educator corps. A district shall only

nominate an educator who meets all of the following:

(i) Was rated as effective or highly effective under section

1249 for each of the immediately preceding 3 school years.

(ii) Demonstrates efficacy, as measured by pupil achievement

or interest.

(iii) Is recommended by, at least, his or her students, peers,

administrators, and community members, as determined by the

district.

(iv) Is a model for educators across this state and

demonstrates spirit, determination, and passion for the teaching

profession.

(v) Successfully implemented an innovative instructional

model, including, but not limited to, a flipped classroom, project-

based learning, intensive intervention for low-performing students,

or competency-based learning.

(b) Each intermediate district shall nominate an educator or

educators from among the nominations received from districts under

subdivision (a), if any, to the department for appointment to the

innovative educator corps. The nominations submitted to the

department under this subdivision must meet both of the following:

(i) The intermediate district shall nominate 1 educator for

every 5,000 pupils enrolled in the public schools located in the

intermediate district. An intermediate district with fewer than

10,000 pupils enrolled shall nominate 2 educators.

(ii) The nominations must be based on at least all of the

following:

(A) The educator's ability to positively influence other

educators in the intermediate district in which he or she teaches.

(B) The educator's positive impact on the community.

instructional model that is in demand in the intermediate district

in which he or she teaches.

educators employed by the intermediate district to the department

for appointment to the innovative educator corps.

(d) Subject to subsection (4), the department shall review the

nominations submitted under subdivisions (b) and (c) and select up

to 100 educators from the submitted nominations for appointment to

the innovative educator corps for an initial term of 3 years. The

department shall select innovative educator based on at least all

of the following factors:

(i) The level of achievement for pupils of the nominated

educator, particularly among pupils representing disadvantaged

populations.

(ii) Geographic diversity of innovative educators.

(iii) Diversity of subject areas in which innovative educators

teach.

(iv) Diversity of grade levels in which innovative educators

teach.

(v) The ability of an educator to bring prestige, esteem, and

professionalism to the innovative educator corps.

(vi) An educator's diversity of experience and success in

unique skills and innovative instructional models, as determined by

the department.

(4) The department shall ensure, as practicable, that at least

1 educator from each of the following groups is selected for

appointment to the innovative educator corps under subsection

(3)(d):

(a) Educators with experience and success in competency-based

education.

(b) Educators with experience and success in project-based

learning.

systems.

(d) Educators with experience and success in the turnaround of

a low-performing school.

(5) After the initial 3-year term under subsection (3), an

educator may serve additional 3-year terms in the innovative

educator corps if he or she is renominated at the end of each 3-

year term by the district that employs the educator.

(6) The department shall consult with a workgroup, including,

but not limited to, the governor or his or her designee, current

members of the innovative educator corps, and other interested

parties as determined by the superintendent of public instruction

to assist with the selection of innovative educators under

subsection (3)(d).

(7) An educator selected as an innovative educator under this

section shall assist in the identification of other educators who

are capable of mentoring student teachers.

(8) Not later than June 30 of each year, the department shall

provide a report to the governor, the house and senate school aid

subcommittees, the house and senate fiscal agencies, and the state

budget director. The report shall provide at least the following

information:

(a) The number of educators receiving annual stipends under

this section.

(b) The geographic areas represented by educators selected by

the department.

section.

(d) Any other information the department determines necessary

to describe the program outcomes related to funds allocated under

this section.

(9) Not later than 90 days after the effective date of this

section, the department shall promulgate rules and develop

policies, procedures, and regulations to ensure all of the

following:

(a) To the extent possible, student teachers are placed with

members or emeriti of the innovative educator corps.

(b) To the extent possible, teachers in their first 3 years of

teaching are paired with members or emeriti of the innovative

educator corps under section 1526 of the revised school code, MCL

380.1526.

House Bill No. 5579 as amended April 24, 2018

opportunity to meet at least twice a year with state policymakers,

including members of the legislature and the governor's office.

(10) In addition to the funds allocated under subsection (1),

from the talent investment fund appropriation in section 11, there

is allocated to the department an amount not to exceed $200,000.00

for costs related to the administration of this section.

[Sec. 68d. From the Talent Investment Fund appropriation in section 11, there is allocated an amount not to exceed $100.00 for 2018-2019 for competitive grants to districts and intermediate districts for the purpose of providing career development navigators to pupils.]

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

is allocated an amount not to exceed ~~$3,730,300.00 for 2017-2018~~

$3,754,900.00 for 2018-2019 for the purposes of this section.

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

for each fiscal year the amount necessary for payments to state

supported colleges or universities and intermediate districts

providing school bus driver safety instruction pursuant to section

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

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

exceed the actual cost of instruction and driver compensation for

each public or nonpublic school bus driver attending a course of

instruction. For the purpose of computing compensation, the hourly

rate allowed each school bus driver shall not exceed the hourly

rate received for driving a school bus. Reimbursement compensating

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

department to the college or university or intermediate district

providing the course of instruction.

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

for ~~2017-2018~~ 2018-2019 the amount necessary to pay the reasonable

costs of nonspecial education auxiliary services transportation

provided pursuant to section 1323 of the revised school code, MCL

380.1323. Districts funded under this subsection shall not receive

funding under any other section of this article for nonspecial

education auxiliary services transportation.

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

allocated an amount not to exceed ~~$1,705,300.00 for 2017-2018~~

$1,729,900.00 for 2018-2019 for reimbursement to districts and

intermediate districts for costs associated with the inspection of

school buses and pupil transportation vehicles by the department of

state police as required under section 715a of the Michigan vehicle

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

transportation act, 1990 PA 187, MCL 257.1839. The department of

state police shall prepare a statement of costs attributable to

each district for which bus inspections are provided and submit it

to the department and to an intermediate district serving as

fiduciary in a time and manner determined jointly by the department

and the department of state police. Upon review and approval of the

statement of cost, the department shall forward to the designated

intermediate district serving as fiduciary the amount of the

reimbursement on behalf of each district and intermediate district

for costs detailed on the statement within 45 days after receipt of

the statement. The designated intermediate district shall make

payment in the amount specified on the statement to the department

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

total reimbursement of costs under this subsection shall not exceed

the amount allocated under this subsection. Notwithstanding section

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

paid on a schedule prescribed by the department.

Sec. 81. (1) From the appropriation in section 11, there is

allocated for ~~2017-2018~~ 2018-2019 to the intermediate districts the

sum necessary, but not to exceed $67,108,000.00 to provide state

aid to intermediate districts under this section.

(2) The amount allocated under this section to each

intermediate district is an amount equal to 100% of the amount

allocated to the intermediate district under this section for ~~2016-~~

~~2017.~~ 2017-2018. Funding provided under this section shall be used

to comply with requirements of this article and the revised school

code that are applicable to intermediate districts, and for which

funding is not provided elsewhere in this article, and to provide

technical assistance to districts as authorized by the intermediate

school board.

(3) Intermediate districts receiving funds under this section,

shall collaborate with the department to develop expanded

professional development opportunities for teachers to update and

expand their knowledge and skills needed to support the Michigan

merit curriculum.

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

to an intermediate district, formed by the consolidation or

annexation of 2 or more intermediate districts or the attachment of

a total intermediate district to another intermediate school

district or the annexation of all of the constituent K-12 districts

of a previously existing intermediate school district which has

disorganized, an additional allotment of $3,500.00 each fiscal year

for each intermediate district included in the new intermediate

district for 3 years following consolidation, annexation, or

attachment.

(5) In order to receive funding under this section, an

intermediate district shall do all of the following:

(a) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

pupil accounting and auditing procedures, rules, and regulations.

(b) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

rules, regulations, and district reporting procedures for the

individual-level student data that serves as the basis for the

calculation of the district and high school graduation and dropout

rates.

code, MCL 380.1278a and 380.1278b.

(d) Furnish data and other information required by state and

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

specified by the center or the department, as applicable.

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

380.1230g.

~~(f) Comply with section 761 of the revised school code, MCL~~

~~380.761.~~

Sec. 94. (1) From the general fund appropriation in section

11, there is allocated to the department ~~for 2017-2018~~ each fiscal

year for 2017-2018 and for 2018-2019 an amount not to exceed

$750,000.00 for efforts to increase the number of pupils who

participate and succeed in advanced placement and international

baccalaureate programs.

(2) From the funds allocated under this section, the

department shall award funds to cover all or part of the costs of

advanced placement test fees or international baccalaureate test

fees and international baccalaureate registration fees for low-

income pupils who take an advanced placement or an international

baccalaureate test. ~~Payments shall not exceed $20.00 per test~~

~~completed or $150.00 per international baccalaureate registration~~

~~fees per pupil registered.~~

(3) The department shall only award funds under this section

if the department determines that all of the following criteria are

met:

(a) Each pupil for whom payment is made meets eligibility

requirements of the federal advanced placement test fee program

under section 1701 of the no child left behind act of 2001, Public

Law 107-110, or under a corresponding provision of the every

student succeeds act, Public Law 114-95.

(b) The tests are administered by the college board, the

international baccalaureate organization, or another test provider

approved by the department.

toward the cost of each test for which payment is made.

(4) The department shall establish procedures for awarding

funds under this section.

(5) Notwithstanding section 17b, payments under this section

shall be made on a schedule determined by the department.

Sec. 94a. (1) There is created within the state budget office

in the department of technology, management, and budget the center

for educational performance and information. The center shall do

all of the following:

(a) Coordinate the collection of all data required by state

and federal law from districts, intermediate districts, and

postsecondary institutions.

(b) Create, maintain, and enhance this state's P-20

longitudinal data system and ensure that it meets the requirements

of subsection (4).

order to reduce the administrative burden on reporting entities,

including, but not limited to, electronic transcript services.

(d) Create, maintain, and enhance this state's web-based

educational portal to provide information to school leaders,

teachers, researchers, and the public in compliance with all

federal and state privacy laws. Data shall include, but are not

limited to, all of the following:

(i) Data sets that link teachers to student information,

allowing districts to assess individual teacher impact on student

performance and consider student growth factors in teacher and

principal evaluation systems.

(ii) Data access or, if practical, data sets, provided for

regional data hubs that, in combination with local data, can

improve teaching and learning in the classroom.

(iii) Research-ready data sets for researchers to perform

research that advances this state's educational performance.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide public reports to the citizens of this state to

allow them to assess allocation of resources and the return on

their investment in the education system of this state.

(g) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects

information from districts, intermediate districts, or

postsecondary institutions as required under state or federal law

shall make arrangements with the center to ensure that the state

department, officer, or agency is in compliance with subsection

(1). This subsection does not apply to information collected by the

department of treasury under the uniform budgeting and accounting

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

388.1939; or section 1351a of the revised school code, MCL

380.1351a.

(3) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(4) The center shall ensure that the P-20 longitudinal data

system required under subsection (1)(b) meets all of the following:

(a) Includes data at the individual student level from

preschool through postsecondary education and into the workforce.

(b) Supports interoperability by using standard data

structures, data formats, and data definitions to ensure linkage

and connectivity in a manner that facilitates the exchange of data

among agencies and institutions within the state and between

states.

records so that an individual student may be matched with those

teachers providing instruction to that student.

(d) Enables the matching of individual teachers with

information about their certification and the institutions that

prepared and recommended those teachers for state certification.

(e) Enables data to be easily generated for continuous

improvement and decision-making, including timely reporting to

parents, teachers, and school leaders on student achievement.

(f) Ensures the reasonable quality, validity, and reliability

of data contained in the system.

(g) Provides this state with the ability to meet federal and

state reporting requirements.

(h) For data elements related to preschool through grade 12

and postsecondary, meets all of the following:

(i) Contains a unique statewide student identifier that does

not permit a student to be individually identified by users of the

system, except as allowed by federal and state law.

(ii) Contains student-level enrollment, demographic, and

program participation information.

(iii) Contains student-level information about the points at

which students exit, transfer in, transfer out, drop out, or

complete education programs.

(iv) Has the capacity to communicate with higher education

data systems.

(i) For data elements related to preschool through grade 12

only, meets all of the following:

(i) Contains yearly test records of individual students for

assessments approved by DED-OESE for accountability purposes under

section 1111(b) of the elementary and secondary education act of

1965, 20 USC 6311, including information on individual students not

tested, by grade and subject.

(ii) Contains student-level transcript information, including

information on courses completed and grades earned.

(iii) Contains student-level college readiness test scores.

(j) For data elements related to postsecondary education only:

(i) Contains data that provide information regarding the

extent to which individual students transition successfully from

secondary school to postsecondary education, including, but not

limited to, all of the following:

(A) Enrollment in remedial coursework.

(B) Completion of 1 year's worth of college credit applicable

to a degree within 2 years of enrollment.

(ii) Contains data that provide other information determined

necessary to address alignment and adequate preparation for success

in postsecondary education.

(5) From the general fund appropriation in section 11, there

is allocated an amount not to exceed ~~$10,173,200.00 for 2016-2017~~

~~and an amount not to exceed $16,216,000.00 for 2017-2018~~

$16,356,700.00 for 2018-2019 to the department of technology,

management, and budget to support the operations of the center. In

addition, from the federal funds appropriated in section 11 there

is allocated for ~~each fiscal year for 2016-2017 and for 2017-2018~~

2018-2019 the amount necessary, estimated at $193,500.00, to

support the operations of the center and to establish a P-20

longitudinal data system necessary for state and federal reporting

purposes. The center shall cooperate with the department to ensure

that this state is in compliance with federal law and is maximizing

opportunities for increased federal funding to improve education in

this state.

(6) From the funds allocated in subsection (5), the center may

use an amount determined by the center for competitive grants for

~~2017-2018~~ 2018-2019 to support collaborative efforts on the P-20

longitudinal data system. All of the following apply to grants

awarded under this subsection:

(a) The center shall award competitive grants to eligible

intermediate districts or a consortium of intermediate districts

based on criteria established by the center.

(b) Activities funded under the grant shall support the P-20

longitudinal data system portal and may include portal hosting,

hardware and software acquisition, maintenance, enhancements, user

support and related materials, and professional learning tools and

activities aimed at improving the utility of the P-20 longitudinal

data system.

for the immediately preceding fiscal year shall receive priority

for funding under this section. However, after 3 fiscal years of

continuous funding, an applicant is required to compete openly with

new applicants.

(7) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year and are appropriated for the

purposes for which the funds were originally allocated.

(8) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (5) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(9) As used in this section:

(a) "DED-OESE" means the United States Department of Education

Office of Elementary and Secondary Education.

(b) "State education agency" means the department.

Sec. 95b. (1) From the general fund appropriation under

section 11, there is allocated to the department an amount not to

exceed $2,500,000.00 for ~~2017-2018~~ 2018-2019 for the department to

adopt a model value-added growth and projection analytics system

and to incorporate that model into its reporting requirements under

the every student succeeds act, Public Law 114-95. The adopted

model shall do at least all of the following:

(a) Utilize existing assessments and any future assessments

that are suitable for measuring student growth.

(b) Report student growth measures at the district, school,

teacher, and subgroup levels.

who may have missing assessment data.

(d) Include all available prior standardized assessment data

that meet inclusion criteria across grades, subjects, and state and

local assessments.

(e) Allow student growth results to be disaggregated.

(f) Provide individual student projections showing the

probability of a student reaching specific performance levels on

future assessments.

(g) Demonstrate any prior success with this state's

assessments through the Michigan council of educator effectiveness

teacher evaluation pilot.

(h) Demonstrate prior statewide implementation in at least 2

other states for at least 10 years.

(i) Have a native roster verification system built into the

value-added reporting platform that has been implemented statewide

in at least 2 other states.

(j) Have a "Help/Contact Us" ticketing system built into the

value-added reporting platform.

(2) The department shall provide internet-based electronic

student growth and projection reporting based on the model adopted

under subsection (1) to educators at the school, district, and

state levels. The model shall include role-based permissions that

allow educators to access information about the performance of the

students within their immediate responsibility in accordance with

applicable privacy laws.

(3) The model adopted under subsection (1) must not be a

mandatory part of teacher evaluation or educator pay-for-

performance systems.

(4) The model adopted under subsection (1) must have received

funding under this section in 2017-2018.

Sec. 98. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed

$7,387,500.00 for ~~2017-2018~~ 2018-2019 for the purposes described in

this section. The Michigan Virtual University shall provide a

report to the legislature not later than November 1 ~~, 2017~~ of each

year that includes its mission, its plans, and proposed benchmarks

it must meet, which shall include a plan to achieve ~~a 50% increase~~

~~in documented improvement in each requirement of the Michigan~~

~~Virtual Learning Research Institute and Michigan Virtual School,~~

~~and all other~~ the organizational priorities identified in this

section, in order to receive full funding for ~~2018-2019.~~ 2019-2020.

Not later than March 1 ~~, 2018,~~ of each year, the Michigan Virtual

University shall provide an update to the house and senate

appropriations subcommittees on school aid to show the progress

being made to meet the benchmarks identified.

(2) The Michigan Virtual University shall operate the Michigan

Virtual Learning Research Institute. The Michigan Virtual Learning

Research Institute shall do all of the following:

(a) Support and accelerate innovation in education through the

following activities:

(i) Test, evaluate, and recommend as appropriate new

technology-based instructional tools and resources.

(ii) Research, design, and recommend virtual education

delivery models for use by pupils and teachers that include age-

appropriate multimedia instructional content.

(iii) Research, develop, and recommend annually to the

department criteria by which cyber schools and virtual course

providers should be monitored and evaluated to ensure a quality

education for their pupils.

(iv) Based on pupil completion and performance data reported

to the department or the center for educational performance and

information from cyber schools and other virtual course providers

operating in this state, analyze the effectiveness of virtual

learning delivery models in preparing pupils to be college- and

career-ready and publish a report that highlights enrollment

totals, completion rates, and the overall impact on pupils. The

report shall be submitted to the house and senate appropriations

subcommittees on state school aid, the state budget director, the

house and senate fiscal agencies, the department, districts, and

intermediate districts not later than March 31 ~~, 2018.~~of each year.

(v) Provide an extensive professional development program to

at least 30,000 educational personnel, including teachers, school

administrators, and school board members, that focuses on the

effective integration of virtual learning into curricula and

instruction. The Michigan Virtual Learning Research Institute is

encouraged to work with the MiSTEM advisory council created under

section 99s to coordinate professional development of teachers in

applicable fields. In addition, the Michigan Virtual Learning

Research Institute and external stakeholders are encouraged to

coordinate with the department for professional development in this

state. Not later than December 1 ~~, 2018,~~ of each year, the Michigan

Virtual Learning Research Institute shall submit a report to the

house and senate appropriations subcommittees on state school aid,

the state budget director, the house and senate fiscal agencies,

and the department on the number ~~and percentage~~ of teachers, school

administrators, and school board members who have received

professional development services from the Michigan Virtual

University. The report shall also identify barriers and other

opportunities to encourage the adoption of virtual learning in the

public education system.

(vi) Identify and share best practices for planning,

implementing, and evaluating virtual and blended education delivery

models with intermediate districts, districts, and public school

academies to accelerate the adoption of innovative education

delivery models statewide.

(b) Provide leadership for this state's system of virtual

learning education by doing the following activities:

(i) Develop and report policy recommendations to the governor

and the legislature that accelerate the expansion of effective

virtual learning in this state's schools.

(ii) Provide a clearinghouse for research reports, academic

studies, evaluations, and other information related to virtual

learning.

(iii) Promote and distribute the most current instructional

design standards and guidelines for virtual teaching.

(iv) In collaboration with the department and interested

colleges and universities in this state, support implementation and

improvements related to effective virtual learning instruction.

(v) Pursue public/private partnerships that include districts

to study and implement competency-based technology-rich virtual

learning models.

(vi) Create a statewide network of school-based mentors

serving as liaisons between pupils, virtual instructors, parents,

and school staff, as provided by the department or the center, and

provide mentors with research-based training and technical

assistance designed to help more pupils be successful virtual

learners.

(vii) Convene focus groups and conduct annual surveys of

teachers, administrators, pupils, parents, and others to identify

barriers and opportunities related to virtual learning.

(viii) Produce an annual consumer awareness report for schools

and parents about effective virtual education providers and

education delivery models, performance data, cost structures, and

research trends.

(ix) ~~Research and establish~~ Provide an internet-based platform

that educators can use to create student-centric learning tools and

resources for sharing in the state's open educational resource

repository and facilitate a user network that assists educators in

using the content creation platform and state repository for open

educational resources. As part of this initiative, the Michigan

Virtual University shall work collaboratively with districts and

intermediate districts to establish a plan to make available

virtual resources that align to Michigan's K-12 curriculum

standards for use by students, educators, and parents.

(x) Create and maintain a public statewide catalog of virtual

learning courses being offered by all public schools and community

colleges in this state. The Michigan Virtual Learning Research

Institute shall identify and develop a list of nationally

recognized best practices for virtual learning and use this list to

support reviews of virtual course vendors, courses, and

instructional practices. The Michigan Virtual Learning Research

Institute shall also provide a mechanism for intermediate districts

to use the identified best practices to review content offered by

constituent districts. The Michigan Virtual Learning Research

Institute shall review the virtual course offerings of the Michigan

Virtual University, and make the results from these reviews

available to the public as part of the statewide catalog. The

Michigan Virtual Learning Research Institute shall ensure that the

statewide catalog is made available to the public on the Michigan

Virtual University website and shall allow the ability to link it

to each district's website as provided for in section 21f. The

statewide catalog shall also contain all of the following:

(A) The number of enrollments in each virtual course in the

immediately preceding school year.

(B) The number of enrollments that earned 60% or more of the

total course points for each virtual course in the immediately

preceding school year.

(xi) ~~Develop prototype and pilot~~ Support registration, payment

services, and transcript functionality to for the statewide catalog

and train key stakeholders on how to use new features.

(xii) Collaborate with key stakeholders to examine district

level accountability and teacher effectiveness issues related to

virtual learning under section 21f and make findings and

recommendations publicly available.

(xiii) Provide a report on the activities of the Michigan

Virtual Learning Research Institute.

(3) To further enhance its expertise and leadership in virtual

learning, the Michigan Virtual University shall continue to operate

the Michigan Virtual School as a statewide laboratory and quality

model of instruction by implementing virtual and blended learning

solutions for Michigan schools in accordance with the following

parameters:

(a) The Michigan Virtual School must maintain its

accreditation status from recognized national and international

accrediting entities.

(b) The Michigan Virtual University shall use no more than

$1,000,000.00 of the amount allocated under this section to

subsidize the cost paid by districts for virtual courses.

virtual courses as provided for in this section, the Michigan

Virtual School shall follow the requirements to request and assess,

and the department of state police shall provide, a criminal

history check and criminal records check under sections 1230 and

1230a of the revised school code, MCL 380.1230 and 380.1230a, in

the same manner as if the Michigan Virtual School were a school

district under those sections.

(4) From the funds allocated under subsection (1), the

Michigan Virtual University shall allocate up to $500,000.00 to

support the expansion of new online and blended educator

professional development programs.

(5) If the course offerings are included in the statewide

catalog of virtual courses under subsection (2)(b)(x), the Michigan

Virtual School operated by the Michigan Virtual University may

offer virtual course offerings, including, but not limited to, all

of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section

1471 of the revised school code, MCL 380.1471.

(d) Programs and services for at-risk pupils.

(e) High school equivalency test preparation courses for

adjudicated youth.

(f) Special interest courses.

(g) Professional development programs for teachers, school

administrators, other school employees, and school board members.

(6) If a home-schooled or nonpublic school student is a

resident of a district that subscribes to services provided by the

Michigan Virtual School, the student may use the services provided

by the Michigan Virtual School to the district without charge to

the student beyond what is charged to a district pupil using the

same services.

(7) Not later than December 1 of each fiscal year, the

Michigan Virtual University shall provide a report to the house and

senate appropriations subcommittees on state school aid, the state

budget director, the house and senate fiscal agencies, and the

department that includes at least all of the following information

related to the Michigan Virtual School for the preceding state

fiscal year:

(a) A list of the districts served by the Michigan Virtual

School.

(b) A list of virtual course titles available to districts.

information on registrations and completions by course.

(d) The overall course completion rate percentage.

(8) In addition to the information listed in subsection (7),

the report under subsection (7) shall also include a plan to serve

at least 600 schools with courses from the Michigan Virtual School

or with content available through the internet-based platform

identified in subsection (2)(b)(ix).

(9) The governor may appoint an advisory group for the

Michigan Virtual Learning Research Institute established under

subsection (2). The members of the advisory group shall serve at

the pleasure of the governor and shall serve without compensation.

The purpose of the advisory group is to make recommendations to the

governor, the legislature, and the president and board of the

Michigan Virtual University that will accelerate innovation in this

state's education system in a manner that will prepare elementary

and secondary students to be career and college ready and that will

promote the goal of increasing the percentage of citizens of this

state with high-quality degrees and credentials to at least 60% by

2025.

(10) Not later than November 1 ~~, 2017,~~ of each year, the

Michigan Virtual University shall submit to the house and senate

appropriations subcommittees on state school aid, the state budget

director, and the house and senate fiscal agencies a detailed

budget for ~~the 2017-2018~~ that fiscal year that includes a breakdown

on its projected costs to deliver virtual educational services to

districts and a summary of the anticipated fees to be paid by

districts for those services. Not later than March 1 each year, the

Michigan Virtual University shall submit to the house and senate

appropriations subcommittees on state school aid, the state budget

director, and the house and senate fiscal agencies a breakdown on

its actual costs to deliver virtual educational services to

districts and a summary of the actual fees paid by districts for

those services based on audited financial statements for the

immediately preceding fiscal year.

(11) As used in this section:

(a) "Blended learning" means a hybrid instructional delivery

model where pupils are provided content, instruction, and

assessment, in part at a supervised educational facility away from

home where the pupil and a teacher with a valid Michigan teaching

certificate are in the same physical location and in part through

internet-connected learning environments with some degree of pupil

control over time, location, and pace of instruction.

(b) "Cyber school" means a full-time instructional program of

virtual courses for pupils that may or may not require attendance

at a physical school location.

of generating a credit or a grade and that is provided in an

interactive learning environment in which the majority of the

curriculum is delivered using the internet and in which pupils are

separated from their instructor or teacher of record by time or

location, or both.

Sec. 99h. (1) From the state school aid fund appropriation in

section 11, there is allocated an amount not to exceed

$2,500,000.00 for ~~2017-2018~~ 2018-2019 for competitive grants to

districts, and from the general fund appropriation in section 11,

there is allocated an amount not to exceed $300,000.00 for ~~2017-~~

~~2018~~ 2018-2019 for competitive grants to nonpublic schools, that

provide pupils in grades K to 12 with expanded opportunities to

improve mathematics, science, and technology skills by

participating in events hosted by a science and technology

development program known as FIRST (for inspiration and recognition

of science and technology) Robotics, including JR FIRST Lego

League, FIRST Lego League, FIRST tech challenge, and FIRST Robotics

competition, or other competitive robotics programs, including

those hosted by the Robotics Education and Competition (REC)

Foundation. Programs funded under this section are intended to

increase the number of pupils demonstrating proficiency in science

and mathematics on the state assessments and to increase the number

of pupils who are college- and career-ready upon high school

graduation. Notwithstanding section 17b, grant payments to

districts and nonpublic schools under this section shall be paid on

a schedule determined by the department. The department shall set

maximum grant awards for each different level of competition in a

manner that both maximizes the number of teams that will be able to

receive funds and expands the geographical distribution of teams.

(2) A district or nonpublic school applying for a grant under

this section shall submit an application in a form and manner

determined by the department. To be eligible for a grant, a

district or nonpublic school shall demonstrate in its application

that the district or nonpublic school has established a partnership

for the purposes of the FIRST Robotics program with at least 1

sponsor, business entity, higher education institution, or

technical school, shall submit a spending plan, and shall pay at

least 25% of the cost of the FIRST Robotics program.

(3) The department shall distribute the grant funding under

this section for the following purposes:

(a) Grants to districts or nonpublic schools to pay for

stipends not to exceed $1,500.00 for 1 coach per team.

(b) Grants to districts or nonpublic schools for event

registrations, materials, travel costs, and other expenses

associated with the preparation for and attendance at FIRST

Robotics events and competitions. Each grant recipient shall

provide a local match from other private or local funds for the

funds received under this subdivision equal to at least 50% of the

costs of participating in an event.

teams that advance to the state and world championship

competitions. The department shall determine an equal amount per

team for those teams that advance to the state championship and a

second equal award amount to those teams that advance to the world

championship.

(4) A nonpublic school that receives a grant under this

section may use the funds for either FIRST Robotics or Science

Olympiad programs.

(5) To be eligible to receive funds under this section, a

nonpublic school must be a nonpublic school registered with the

department and must meet all applicable state reporting

requirements for nonpublic schools.

Sec. 99k. ~~(1) From the appropriation in section 11, there is~~

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

~~competitive grants to districts that provide pupils in grades 6 to~~

~~12 with expanded opportunities to improve computer science skills~~

~~by participating in cybersecurity competitive events hosted by~~

~~Merit Network, Incorporated, known as Michigan High School Cyber~~

~~Challenge, or hosted by the Air Force Association, known as~~

~~Cyberpatriot. Programs funded under this section are intended to~~

~~increase the number of pupils demonstrating proficiency in science~~

~~and mathematics on state assessments and to increase the number of~~

~~pupils who are college- and career-ready upon high school~~

~~graduation. Notwithstanding section 17b, grant payments to~~

~~districts under this section shall be paid on a schedule determined~~

~~by the department. The department shall set maximum grant awards~~

~~for each competition in a manner that both maximizes the number of~~

~~teams that will be able to receive funds and the geographical~~

~~distribution of teams.~~

~~(2) A district applying for a grant under this section shall~~

~~submit an application in a form and manner determined by the~~

~~department. To be eligible for a grant, a district shall~~

~~demonstrate in its application that the district has established a~~

~~partnership with at least 1 sponsor, business entity, higher~~

~~education institution, or technical school, shall submit a spending~~

~~plan, and shall pay at least 25% of the cost of the selected~~

~~cybersecurity program.~~

~~(3) The department shall distribute the grant funding under~~

~~this section for the following purposes:~~

~~(a) Grants to districts to pay for stipends not to exceed~~

~~$1,500.00 for 1 coach or mentor per team.~~

~~(b) Grants to districts for event registrations, materials,~~

~~travel costs, and other expenses associated with the preparation~~

~~for and attendance at events and competitions. Each grant recipient~~

~~shall provide a local match from other private or local funds for~~

~~the funds received under this subdivision equal to at least 50% of~~

~~the costs of participating in an event.~~

~~(c) Grants to districts for awards to teams that advance to~~

~~state and world championship competitions. The department shall~~

~~determine an equal amount per team for those teams that advance to~~

~~the state championship and a second equal award amount to those~~

~~teams that advance to the world championship for the selected~~

~~cybersecurity program.~~

~~(4) The funds allocated under this section 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~~

~~continue to implement the projects described under subsection (1).~~

~~The estimated completion date of the work project is September 30,~~

~~2020.~~

(1) From the talent investment fund appropriation in section

11, there is allocated an amount not to exceed $2,000,000.00 for

2018-2019 to the department of technology, management, and budget

to support critical cybersecurity training and infrastructure

programs, and in collaboration with the department, to increase the

number of pupils with skills and credentials to pursue careers in

the emerging field of cybersecurity.

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

an amount not to exceed $620,000.00 to support a competitive grant

program. Funds allocated under this subsection must be used to

support a pipeline for pupils that is integrated into a robust,

high-quality educational systemic infrastructure. The department of

technology, management, and budget shall award grants to districts

that provide pupils in grades 6 to 12 with expanded opportunities

to improve computer science skills by participating in competitive

cybersecurity events including, but not limited to, the following:

(a) Governor's high school challenge.

(b) National youth cyber defense competition.

challenge).

(3) The department of technology, management, and budget shall

coordinate with the department to administer grants funded under

subsection (2). Programs funded under subsection (2) are intended

to increase the number of pupils demonstrating proficiency in

science and mathematics on state assessments and to increase the

number of pupils who are college- and career-ready upon high school

graduation. The department shall set maximum grant awards for each

competition in a manner that maximizes both the number of teams

that receive funds and the geographical distribution of teams.

(4) A district applying for a grant under subsection (2) shall

submit an application in a form and manner determined by the

department. To be eligible for a grant, a district shall do all of

the following:

(a) Demonstrate in its application that the district has

established a partnership with at least 1 sponsor, business entity,

higher education institution, or technical school.

(b) Submit a spending plan.

program.

(5) Districts may use funds received under subsection (2) for

event registration fees, materials, travel costs, stipends to

coaches, and other expenses associated with the preparation for and

attendance at events and competitions.

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

an amount not to exceed $1,100,000.00 to support critical

cybersecurity training and infrastructure programs, as approved by

this state's information technology governance council. Funding

allocated under this subsection may 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.

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

an amount not to exceed $280,000.00 to support the expansion of the

Michigan cyberpatriot program, as approved by the department of

technology, management, and budget. The expansion must include, but

is not limited to, all of the following:

(a) Education provided in multiple modalities and connected to

current state professional development platforms.

(b) Collaboration with other cybersecurity programs to ensure

alignment of pupil skills and readiness to participate in the

credentialing process.

entities to ensure the alignment of the Michigan integrated

technology competencies for students (MITECS) and the emerging

computer science standards.

Sec. 99r. (1) From the general fund appropriation under

section 11, there is allocated for ~~2016-2017 an amount not to~~

~~exceed $75,000.00, and there is allocated for 2017-2018~~ 2018-2019

an amount not to exceed ~~$250,000.00,~~ $300,000.00 to the department

of technology, management, and budget to support the ~~creation~~

functions of the executive director and executive assistant for the

MiSTEM network.

~~(2) From the general fund allocation under this section, there~~

~~is allocated for 2016-2017 an amount not to exceed $75,000.00 to~~

~~the department of technology, management, and budget to support the~~

~~functions of a transitional executive director and executive~~

~~assistant for the MiSTEM network. The department of technology,~~

~~management, and budget shall work with the Michigan Mathematics and~~

~~Science Centers Network and the MiSTEM council to hire the~~

~~transitional executive director and executive assistant. The~~

~~transitional executive director and executive assistant shall work~~

~~with the president and executive director of the Michigan~~

~~Mathematics and Science Centers Network and the chairperson and~~

~~vice-chairperson of the MiSTEM council. The transitional executive~~

~~director and executive assistant shall do all of the following:~~

~~(a) Develop a plan for the creation of MiSTEM network regions~~

~~that does all of the following:~~

(i~~) Creates a structured relationship between the MiSTEM~~

~~council, MiSTEM network executive director and executive assistant,~~

~~and MiSTEM network region staff that ensures services to all~~

~~regions and local communities in each region.~~

(ii~~) Empowers the MiSTEM network regions in a manner that~~

~~creates a robust statewide STEM culture, empowers STEM teachers,~~

~~integrates business and education into the MiSTEM network, and~~

~~ensures high-quality and equitable distribution of STEM experiences~~

~~for pupils.~~

(~~iii~~~~) Identifies region boundaries throughout the state and~~

~~identifies fiscal agents within those regions.~~

(iv~~) Identifies MiSTEM state and regional goals and objectives~~

~~and processes by which goals and objectives shall be measured.~~

(v~~) Includes processes by which the MiSTEM network regions~~

~~apply for MiSTEM grants, provide feedback on grant-funded~~

~~programming, share best practices, and create regional master~~

~~plans.~~

(vi~~) Creates a marketing campaign, including, at least, an~~

~~online presence which includes dashboards of outcomes for the~~

~~MiSTEM network.~~

~~(b) Form a committee for the purpose of identifying each~~

~~MiSTEM network region and selecting a fiscal agent and determining~~

~~staffing for that region. Fiscal agents shall be an intermediate~~

~~district within the region, a university within the region, or~~

~~another organization that served as fiscal agent within the~~

~~Michigan Mathematics and Science Centers Network. Agencies~~

~~interested in serving as the region's fiscal agent shall be~~

~~included on this committee. The committee shall also include~~

~~representatives of the general education leadership network and the~~

~~governor's talent investment board, in addition to the math and~~

~~science centers and MiSTEM council. The committee shall identify~~

~~necessary staffing levels and locations of staff and determine~~

~~processes by which the entire region will receive and share~~

~~services. All fiscal agents for the Michigan Mathematics and~~

~~Science Centers Network are required to maintain current levels of~~

~~effort for the MiSTEM network as for the Michigan Mathematics and~~

~~Science Centers Network.~~

~~(c) Establish a system to distribute and monitor MiSTEM grants~~

~~during the creation of the MiSTEM network. The monitoring of the~~

~~grants shall include conducting reviews of recipients and the~~

~~experiences and feedback of pupils.~~

~~(d) Report to the governor and the legislature on the~~

~~development of the MiSTEM network.~~

~~(e) Submit the plan developed under subdivision (a) to the~~

~~governor and the legislature on or before December 1, 2017.~~

(2) ~~(3) From the general fund allocation under this section,~~

~~there is allocated for 2017-2018 an amount not to exceed~~

~~$250,000.00 to support a permanent executive director and an~~

~~executive assistant for the MiSTEM network. After the creation of~~

~~the MiSTEM network region, the transitional executive director~~

~~funded under subsection (2) may be appointed as the permanent~~

~~executive director, or a new permanent executive director may be~~

~~hired.~~ The ~~permanent~~ executive director and executive assistant for

the MiSTEM network shall do all of the following:

(a) Serve as a liaison among and between the department, the

department of technology, management, and budget, the MiSTEM

advisory council, the Michigan mathematics and science centers

network, the governor's talent investment board, the general

education leadership network, and the ~~regional~~ MiSTEM ~~centers~~

regions in a manner that creates a robust statewide STEM culture,

that empowers STEM teachers, that integrates business and education

into the STEM network, and that ensures high-quality STEM

experiences for pupils.

(b) Coordinate the implementation of a marketing campaign,

including, but not limited to, a website that includes dashboards

of outcomes, to build STEM awareness and communicate STEM needs and

opportunities to pupils, parents, educators, and the business

community.

council to coordinate, award, and monitor MiSTEM state and federal

grants to the MiSTEM network regions and conduct reviews of grant

recipients, including, but not limited to, pupil experience and

feedback.

(d) Report to the governor, the legislature, the department,

and the MiSTEM advisory council annually on the activities and

performance of the MiSTEM network regions.

(e) Coordinate recurring discussions and work with regional

staff to ensure that a network or loop of feedback and best

practices are shared, including funding, programming, professional

learning opportunities, discussion of MiSTEM strategic vision, and

regional objectives.

~~(f) Coordinate major grant application efforts with the MiSTEM~~

~~advisory council to assist regional staff with grant applications~~

~~on a local level. The MiSTEM advisory council shall leverage~~

~~private and nonprofit relationships to coordinate and align private~~

~~funds in addition to funds appropriated under this section.~~

(f) ~~(g)~~ Train state and regional staff in the STEMworks rating

system, in collaboration with the MiSTEM advisory council and the

department.

~~(h) Hire all MiSTEM network staff no later than July 1, 2018.~~

(g) Collaborate with the MiSTEM network to hire MiSTEM network

region staff.

Sec. 99s. (1) From the funds appropriated under section 11,

there is allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

~~$6,234,300.00~~ $7,834,300.00 from the state school aid fund

appropriation ~~and an amount not to exceed $1,600,000.00 from the~~

~~general fund appropriation~~ for Michigan science, technology,

engineering, and mathematics (MiSTEM) programs. In addition, from

the federal funds appropriated in section 11, there is allocated

for ~~2017-2018~~ 2018-2019 an amount estimated at ~~$4,700,000.00~~

$3,500,000.00 from DED-OESE, title II, mathematics and science

partnership grants. Programs funded under this section are intended

to increase the number of pupils demonstrating proficiency in

science and mathematics on the state assessments and to increase

the number of pupils who are college- and career-ready upon high

school graduation. Notwithstanding section 17b, payments under this

section shall be paid on a schedule determined by the department.

(2) ~~From the general fund allocation in subsection (1), there~~

~~is allocated an amount not to exceed $50,000.00 to the department~~

~~for administrative, training, and travel costs related to the~~

~~MiSTEM advisory council.~~ The MiSTEM advisory council is created.

All of the following apply to the MiSTEM advisory council. ~~funded~~

~~under this subsection:~~

(a) ~~The MiSTEM advisory council is created.~~ The MiSTEM

advisory council shall provide to the governor, legislature,

department of talent and economic development, and department

recommendations designed to improve and promote innovation in STEM

education and to prepare students for careers in science,

technology, engineering, and mathematics.

(b) The MiSTEM advisory council created under subdivision (a)

shall consist of the following members:

(i) The governor shall appoint 11 voting members who are

representative of business sectors that are important to Michigan's

economy and rely on a STEM-educated workforce, nonprofit

organizations and associations that promote STEM education, K-12

and postsecondary education entities involved in STEM-related

career education, or other sectors as considered appropriate by the

governor. Each of these members shall serve at the pleasure of the

governor and for a term determined by the governor.

(ii) The senate majority leader shall appoint 2 members of the

senate to serve as nonvoting, ex-officio members of the MiSTEM

advisory council, including 1 majority party member and 1 minority

party member.

(iii) The speaker of the house of representatives shall

appoint 2 members of the house of representatives to serve as

nonvoting, ex-officio members of the MiSTEM advisory council,

including 1 majority party member and 1 minority party member.

without compensation.

(d) The MiSTEM advisory council annually shall review and make

recommendations to the governor, the legislature, and the

department concerning changes to the statewide strategy adopted by

the council for delivering STEM education-related opportunities to

pupils. The MiSTEM advisory council shall use funds received under

this subsection to ensure that its members or their designees are

trained in the Change the Equation STEMworks rating system program

for the purpose of rating STEM programs.

(e) The MiSTEM advisory council shall make specific funding

recommendations for the funds allocated under subsection (3) by

December 15 of each fiscal year. ~~The amount of each grant~~

~~recommended shall not exceed $100,000.00.~~ Each specific funding

recommendation shall be for a program approved by the MiSTEM

advisory council. To be eligible for MiSTEM advisory council

approval, a program must satisfy all of the following:

(i) Align with this state's academic standards.

(ii) Have STEMworks certification.

(iii) Provide project-based experiential learning, student

programming, or educator professional learning experiences.

(iv) Focus predominantly on classroom-based STEM experiences

or professional learning experiences.

(f) The MiSTEM advisory council shall approve programs that

represent all network regions and include a diverse array of

options for students and educators and at least 1 program in each

of the following areas:

(i) Robotics.

(ii) Computer science or coding.

(iii) Engineering or bioscience.

(g) The MiSTEM advisory council is encouraged to work with the

MiSTEM ~~Network regions~~ network to develop locally and regionally

developed programs and professional development experiences for the

programs on the list of approved programs.

(h) If the MiSTEM advisory council is unable to make specific

funding recommendations by December 15 of a fiscal year, the

department ~~of technology, management, and budget~~ shall award and

~~the department shall~~ distribute the funds allocated under

subsection (3) on a competitive grant basis that at least follows

the statewide STEM strategy plan and rating system recommended by

the MiSTEM advisory council. Each grant ~~shall not exceed~~

~~$100,000.00 and~~ must provide STEM education-related opportunities

for pupils.

(i) The MiSTEM advisory council shall work with the executive

director of the MiSTEM network funded under section 99r to

implement the statewide STEM strategy adopted by the MiSTEM

advisory council.

(3) From the state school aid fund money allocated under

subsection (1), there is allocated for ~~2017-2018~~ 2018-2019 an

amount not to exceed ~~$2,850,000.00~~ $4,000,000.00 for the purpose of

funding programs under this section for ~~2017-2018,~~ 2018-2019, as

recommended by the MiSTEM advisory council.

~~(4) From the state school aid fund allocation under subsection~~

~~(1), there is allocated for 2017-2018 an amount not to exceed~~

~~$3,299,300.00 to support the activities and programs of mathematics~~

~~and science centers. In addition, from the federal funds allocated~~

~~under subsection (1), there is allocated for 2017-2018 an amount~~

~~estimated at $4,700,000.00 from DED-OESE, title II, mathematics and~~

~~science partnership grants, for the purposes of this subsection.~~

~~All of the following apply to the programs and funding under this~~

~~subsection:~~

~~(a) Within a service area designated locally, approved by the~~

~~department, and consistent with the comprehensive master plan for~~

~~mathematics and science centers developed by the department and~~

~~approved by the state board, an established mathematics and science~~

~~center shall provide 2 or more of the following 6 basic services,~~

~~as described in the master plan, to constituent districts and~~

~~communities: leadership, pupil services, curriculum support,~~

~~community involvement, professional development, and resource~~

~~clearinghouse services.~~

~~(b) The department shall not award a state grant under this~~

~~subsection to more than 1 mathematics and science center located in~~

~~a designated region as prescribed in the 2007 master plan unless~~

~~each of the grants serves a distinct target population or provides~~

~~a service that does not duplicate another program in the designated~~

~~region.~~

~~(c) As part of the technical assistance process, the~~

~~department shall provide minimum standard guidelines that may be~~

~~used by the mathematics and science center for providing fair~~

~~access for qualified pupils and professional staff as prescribed in~~

~~this subsection.~~

~~(d) Allocations under this subsection to support the~~

~~activities and programs of mathematics and science centers shall be~~

~~continuing support grants to all 33 established mathematics and~~

~~science centers. For 2017-2018, each established mathematics and~~

~~science center shall receive state funding in an amount equal to~~

~~100% of the amount it was allocated under former section 99 for~~

~~2014-2015. If a center declines state funding or a center closes,~~

~~the remaining money available under this subsection shall be~~

~~distributed to the remaining centers, as determined by the~~

~~department.~~

~~(e) From the funds allocated under this subsection, the~~

~~department shall distribute for 2017-2018 an amount not to exceed~~

~~$750,000.00 in a form and manner determined by the department to~~

~~those centers able to provide curriculum and professional~~

~~development support to assist districts in implementing the~~

~~Michigan merit curriculum components for mathematics and science.~~

~~Funding under this subdivision is in addition to funding allocated~~

~~under subdivision (d).~~

~~(f) It is the intent of the legislature that the funding~~

~~allocated under this subsection represents the final year of~~

~~funding for mathematics and science centers and that mathematics~~

~~and science centers shall not be funded in 2018-2019.~~

~~(5) From the funds allocated under subsection (1), there is~~

~~allocated an amount not to exceed $85,000.00 to the Michigan~~

~~Mathematics and Science Centers Network to reimburse intermediate~~

~~school districts for transition costs incurred as the centers~~

~~transition to MiSTEM network regions.~~

(4) ~~(6)~~ From the ~~general~~ school aid fund allocation under

subsection (1), there is allocated an amount not to exceed

~~$1,400,000.00 to~~ $3,834,300.00 to support the activities and

programs of the MiSTEM network regions. ~~For 2017-2018, each~~

~~established MiSTEM network region shall receive funding under this~~

~~subsection in an amount equal to 50% of the state funding amount~~

~~allocated for 2017-2018 to the mathematics and science centers~~

~~located within that region to allow the MiSTEM network region to~~

~~begin operating by April 1, 2018. For former mathematics and~~

~~science centers with territory in more than 1 MiSTEM network~~

~~region, the amount allocated shall be divided proportionally.~~In

addition, from the federal funds allocated under subsection (1),

there is allocated an amount estimated at $3,500,000.00 from DED-

OESE, title II, mathematics and science partnership grants, for the

purposes of this subsection. Beginning in 2018-2019, the fiscal

agent for each MiSTEM network region shall receive $200,000.00 for

the base operations of each region. The remaining funds will be

distributed to each fiscal agent in an equal amount per pupil,

based on the number of K to 12 pupils enrolled in districts within

each region in the prior fiscal year.

(5) ~~(7)~~ A MiSTEM network region shall do all of the following:

(a) Collaborate with the ~~talent district~~ career and

educational advisory council that is located in the ~~prosperity~~

MiSTEM region to develop a regional strategic plan for STEM

education that creates a robust regional STEM culture, that

empowers STEM teachers, that integrates business and education into

the STEM network, and that ensures high-quality STEM experiences

for pupils. At a minimum, a regional STEM strategic plan should do

all of the following:

(i) Identify regional employer need for STEM.

(ii) Identify processes for regional employers and educators

to create guided pathways for STEM careers that include internships

or externships, apprenticeships, and other experiential engagements

for pupils.

(iii) Identify educator professional development

opportunities, including internships or externships and

apprenticeships, that integrate this state's science ~~content~~

standards into high-quality STEM experiences that engage pupils.

(b) Facilitate regional STEM events such as educator and

employer networking and STEM career fairs to raise STEM awareness.

MiSTEM network functions to further the mission of STEM in this

state in coordination with the MiSTEM advisory council and its

executive director.

(d) Facilitate application and implementation of state and

federal funds under this subsection and any other grants or funds

for the MiSTEM network region.

(e) Work with districts to provide STEM programming and

professional development.

(f) Coordinate recurring discussions and work with the ~~talent~~

~~district~~ career and educational advisory council to ensure that

feedback and best practices are being shared, including funding,

program, professional learning opportunities, and regional

strategic plans.

(6) ~~(8)~~ In order to receive state or federal funds under

subsection (4), ~~or (6),~~ a grant recipient shall allow access for

the department or the department's designee to audit all records

related to the program for which it receives those funds. The grant

recipient shall reimburse the state for all disallowances found in

the audit.

(7) ~~(9)~~ In order to receive state funds under subsection (4),

~~or (6),~~ a grant recipient shall provide at least a 10% local match

from local public or private resources for the funds received under

this subsection.

(8) ~~(10)~~ Not later than July 1, 2019 and July 1 of each year

thereafter, a MiSTEM network region that receives funds under

subsection ~~(6)~~ (4) shall report to the executive director of the

MiSTEM network in a form and manner prescribed by the executive

director on performance measures developed by the MiSTEM network

regions and approved by the executive director. The performance

measures shall be designed to ensure that the activities of the

MiSTEM network are improving student academic outcomes.

(9) ~~(11)~~ Not more than 5% of a MiSTEM network region grant

under subsection (4) or (6) may be retained by a fiscal agent for

serving as the fiscal agent of a MiSTEM network region.

(10) ~~(12)~~ As used in this section:

(a) "Career and educational advisory council" means an

advisory council to the local workforce development boards located

in a prosperity region consisting of educational, employer, labor,

and parent representatives.

(b) ~~(a)~~ "DED" means the United States Department of Education.

Secondary Education.

(d) ~~(c)~~ "STEM" means science, technology, engineering, and

mathematics delivered in an integrated fashion using cross-

disciplinary learning experiences that can include language arts,

performing and fine arts, and career and technical education.

~~(d) "Talent district career council" means an advisory council~~

~~to the local workforce development boards located in a prosperity~~

~~region consisting of educational, employer, labor, and parent~~

~~representatives.~~

~~(13) From the general fund allocation under subsection (1),~~

~~there is allocated an amount not to exceed $150,000.00 for 2017-~~

~~2018 for a grant to the Van Andel Education Institute for the~~

~~purposes of advancing and promoting science education and~~

~~increasing the number of students who choose to pursue careers in~~

~~science or science-related fields. Funds allocated under this~~

~~subsection shall be used to provide professional development for~~

~~science teachers in using student-driven, inquiry-based~~

~~instruction.~~

~~(14) Not later than January 1, 2019, the executive director of~~

~~the MiSTEM centers network shall report to the house and senate~~

~~appropriations subcommittees on school aid and the house and senate~~

~~fiscal agencies on the number of male and female MiSTEM center~~

~~program participants and the steps, if any, that the MiSTEM centers~~

~~are taking to reduce any disparity between the number of male and~~

~~female participants.~~

Sec. 99t. (1) From the general fund appropriation under

section 11, there is allocated an amount not to exceed

~~$1,100,000.00 for 2017-2018~~ $1,500,000.00 for 2018-2019 to purchase

statewide access to an online algebra tool that meets all of the

following:

(a) Provides students statewide with complete access to videos

aligned with state standards including study guides and workbooks

that are aligned with the videos.

(b) Provides students statewide with access to a personalized

online algebra learning tool including adaptive diagnostics.

assessments that emulate the state assessment with immediate

feedback and help solving problems.

(d) Provides students statewide with online access to algebra

help 24 hours a day and 7 days a week from study experts, teachers,

and peers on a moderated social networking platform.

(e) Provides an online algebra professional development

network for teachers.

(f) Is already provided under a statewide contract in at least

1 other state that has a population of at least 18,000,000 but not

more than 19,000,000 according to the most recent decennial census

and is offered in that state in partnership with a public

university.

(2) The department shall purchase the online algebra tool that

was chosen under this section in ~~2016-2017.~~2017-2018.

(3) A grantee receiving funding under this section shall

comply with the requirements of section 19b.

Sec. 99u. (1) From the general fund appropriation under

section 11, there is allocated for ~~2017-2018~~ 2018-2019 an amount

not to exceed ~~$1,000,000.00~~ $1,500,000.00 to purchase statewide

access to an online mathematics tool that meets all of the

following:

(a) Provides students statewide with complete access to

mathematics support aligned with state standards through a program

that has all of the following elements:

(i) Student motivation.

(ii) Valid and reliable assessments.

(iii) Personalized learning pathways.

(iv) Highly qualified, live teachers available all day and all

year.

(v) Twenty-four-hour reporting.

(vi) Content built for rigorous mathematics.

(b) Has a record of improving student mathematics scores in at

least 5 other states.

(2) A grantee that receives funding under this section shall

comply with the requirements of section 19b.

Sec. 102d. (1) From the funds appropriated in section 11,

there is allocated an amount not to exceed $1,500,000.00 for ~~2017-~~

~~2018~~ 2018-2019 for reimbursements to districts, intermediate

districts, and authorizing bodies of public school academies for

the licensing of school data analytical tools as described under

this section. The reimbursement is for districts, intermediate

districts, and authorizing bodies of public school academies that

choose to use a school data analytical tool to assist the district,

intermediate district, or authorizing body of a public school

academy and that enter into a licensing agreement for a school data

analytical tool with 1 of the vendors approved by the department of

technology, management, and budget under subsection (2). Funds

allocated under this section are intended to provide districts,

intermediate districts, and authorizing bodies of public school

academies with financial forecasting and transparency reporting

tools to help improve the financial health of districts and to

improve communication with the public, resulting in increased fund

balances for districts and intermediate districts.

(2) Not later than October 15, ~~2017,~~ 2018, the department of

technology, management, and budget shall review vendors for school

data analytical tools and provide districts, intermediate

districts, and authorizing bodies of public school academies with a

list of up to 2 approved vendors that districts, intermediate

districts, and authorizing bodies of public school academies may

use to be eligible for a reimbursement paid under this section. In

addition, a vendor approved under this section for ~~2016-2017~~ 2017-

2018 is considered to be approved for use by a district,

intermediate district, or authorizing body of a public school

academy and for reimbursement for ~~2017-2018.~~ 2018-2019. An approved

school data analytical tool supplied by the vendor must meet at

least all of the following:

(a) Analyzes financial data.

(b) Analyzes academic data.

(d) Has the capability to provide peer district comparisons of

both financial and academic data.

(e) Has the capability to provide financial projections for at

least 3 subsequent fiscal years.

(3) Funds allocated under this section shall be paid to

districts, intermediate districts, and authorizing bodies of public

school academies as a reimbursement for already having a licensing

agreement or for entering into a licensing agreement not later than

December 1, ~~2017~~ 2018 with a vendor approved under subsection (2)

to implement a school data analytical tool. Reimbursement will be

prorated for the portion of the state fiscal year not covered by

the licensing agreement. However, a licensing agreement that takes

effect after October 1, ~~2017~~ 2018 and before December 1, ~~2017~~ 2018

will not be prorated if the term of the agreement is at least 1

year. Reimbursement under this section shall be made as follows:

(a) All districts, intermediate districts, and authorizing

bodies of public school academies seeking reimbursement shall

submit requests not later than December 1, ~~2017~~ 2018 indicating the

cost paid for the financial data analytical tool.

(b) The department shall determine the sum of the funding

requests under subdivision (a) and, if there are sufficient funds,

shall pay 1/2 of the costs submitted under subdivision (a). If

there are insufficient funds to pay 1/2 of the costs submitted

under (a), then reimbursement shall be made on an equal percentage

basis.

subdivision (b) shall be distributed on an equal per-pupil basis,

with an intermediate district's pupils considered to be the sum of

the pupil memberships of the constituent districts for which the

intermediate district is purchasing the financial data analytical

tool, and with an authorizing body's pupils considered to be the

sum of the pupil memberships of the public school academies

authorized by the authorizing body for which the authorizing body

is purchasing the financial data analytical tool.

(d) The reimbursement to a district, intermediate district, or

authorizing body of a public school academy shall not be greater

than the amount paid for a data analytics application.

(e) A district, intermediate district, or authorizing body of

a public school academy shall not be reimbursed for the purchase of

more than 1 software application.

(4) If an intermediate district purchases both a school data

analytical tool specifically for intermediate district finances and

a school data analytical tool for those constituent districts that

opt in, the intermediate district shall be reimbursed for both

purchases under this section.

(5) If an intermediate district makes available to 1 or more

of its constituent districts a school data analytical tool funded

under this section, that constituent district shall not be

reimbursed under this section for the purchase of that school data

analytical tool if the constituent district has opted in for that

tool.

(6) If an authorizing body of a public school academy makes

available to 1 or more public school academies a school data

analytical tool funded under this section, the public school

academy shall not be reimbursed under this section for the purchase

of a school data analytical tool if the public school academy opted

in for that tool.

(7) Notwithstanding section 17b, payments under this section

shall be made on a schedule determined by the department.

Sec. 104. (1) In order to receive state aid under this

article, a district shall comply with sections 1249, 1278a, 1278b,

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

the state school aid fund money appropriated in section 11, there

is allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

~~$34,709,400.00~~ $31,009,400.00 for payments on behalf of districts

for costs associated with complying with those provisions of law.

In addition, from the federal funds appropriated in section 11,

there is allocated for ~~2017-2018~~ 2018-2019 an amount estimated at

$6,250,000.00, funded from DED-OESE, title VI, state assessment

funds, and from DED-OSERS, section 504 of part B of the individuals

with disabilities education act, Public Law 94-142, plus any

carryover federal funds from previous year appropriations, for the

purposes of complying with the federal no child left behind act of

2001, Public Law 107-110, or the every student succeeds act, Public

Law 114-95.

(2) The results of each test administered as part of the

Michigan student test of educational progress (M-STEP), including

tests administered to high school students, shall include an item

analysis that lists all items that are counted for individual pupil

scores and the percentage of pupils choosing each possible

response. The department shall work with the center to identify the

number of students enrolled at the time assessments are given by

each district. In calculating the percentage of pupils assessed for

a district's scorecard, the department shall use only the number of

pupils enrolled in the district at the time the district

administers the assessments and shall exclude pupils who enroll in

the district after the district administers the assessments.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

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

allocated an amount not to exceed $1,000,000.00 for ~~2017-2018~~ 2018-

2019 to an intermediate district described in this subsection to

implement a Michigan kindergarten entry observation tool in

~~2017–2018.~~ 2018-2019. The funding under this subsection is

allocated to an intermediate district in prosperity region 9 with

at least 3,000 kindergarten pupils enrolled in its constituent

districts to continue participation in the Maryland-Ohio pilot and

cover the costs of implementing the ~~pilot~~ observation tool,

including a contract with a university for implementation of the

~~pilot~~ observation tool, also referred to as the kindergarten

readiness assessment. The intermediate district shall continue

implementation of the ~~2016-2017 pilot study with existing~~

~~participating intermediate districts during the 2017-2018 school~~

~~year. The~~ Michigan kindergarten entry observation. ~~shall~~ The

kindergarten readiness assessment must be conducted in all

kindergarten classrooms in districts located in prosperity regions

4, 5, and 9 beginning in August ~~2018.~~ 2019. A constituent district

of an intermediate district located within these prosperity ~~region~~

~~4, 5, or 9~~ regions shall administer the Maryland-Ohio tool within

each kindergarten classroom to either the full census of

kindergarten pupils or a representative sample of not less than 35%

of the enrolled kindergarten pupils in each classroom. The

intermediate district receiving the funding allocated under this

subsection shall work with other intermediate districts to

implement the Michigan kindergarten entry observation, engage with

the office of great start and the department, and provide a report

to the legislature on the demonstrated readiness of kindergarten

pupils within the participating intermediate districts. That

intermediate district may share this funding with the other

affected intermediate districts and districts. ~~Allowable costs~~

~~under this subsection include those incurred in July, August, and~~

~~September 2017 as well as those incurred in 2017-2018.~~ As used in

this subsection, "kindergarten" may include a classroom for young

5-year-olds, commonly referred to as "young 5s" or "developmental

kindergarten". The department shall approve the language and

literacy domain within the Maryland-Ohio tool, also referred to as

the "Kindergarten Readiness Assessment", for use by districts as an

initial assessment that may be delivered to all kindergarten

students to assist with identifying any possible area of concern

for a student in English language arts.

~~(5) The department shall continue to make the kindergarten~~

~~entry assessment developed by the department and field tested in~~

~~2015-2016 available to districts in 2017-2018.~~

(5) ~~(6)~~ The department may recommend, but may not require,

districts to allow pupils to use an external keyboard with tablet

devices for online M-STEP testing, including, but not limited to,

open-ended test items such as constructed response or equation

builder items.

(6) ~~(7)~~ Notwithstanding section 17b, payments on behalf of

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(7) ~~(8)~~ From the allocation in subsection (1), there is

allocated an amount not to exceed ~~$3,200,000.00~~ $500,000.00 for the

development or selection of an online reporting tool to provide

student-level assessment data in a secure environment to educators,

parents, and pupils immediately after assessments are scored. The

department and the center shall ensure that any data collected by

the online reporting tool do not provide individually identifiable

student data to the federal government.

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

allocated an amount not to exceed $100.00 for benchmark assessments

that are approved by the department under Michigan solicitation

"180000000144: Administration, scoring, and reporting of benchmark

assessments".

(9) As used in this section:

(a) "DED" means the United States Department of Education.

(b) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

Rehabilitative Services.

Sec. 104c. (1) In order to receive state aid under this

article, a district shall administer the state assessments

described in this section.

(2) For the purposes of this section, the department shall

develop ~~for use in the spring of 2015-2016~~ and administer the

Michigan student test of educational progress (M-STEP) assessments

in English language arts and mathematics. These assessments shall

be aligned to state standards.

(3) For the purposes of this section, the department shall

implement a summative assessment system that is proven to be valid

and reliable for administration to pupils as provided under this

subsection. The summative assessment system shall meet all of the

following requirements:

(a) The summative assessment system shall measure student

proficiency on the current state standards, shall measure student

growth for consecutive grade levels in which students are assessed

in the same subject area in both grade levels, and shall be capable

of measuring individual student performance.

(b) The summative assessments for English language arts and

mathematics shall be administered to all public school pupils in

grades 3 to 11, including those pupils as required by the federal

individuals with disabilities education act, Public Law 108-446,

and by title I of the federal every student succeeds act (ESSA),

Public Law 114-95.

administered to all public school pupils in at least grades ~~4 and~~

7, 5 and 8, including those pupils as required by the federal

individuals with disabilities education act, Public Law 108-446,

and by title I of the federal every student succeeds act (ESSA),

Public Law 114-95.

(d) The summative assessments for social studies shall be

administered to all public school pupils in at least grades 5 and

8, including those pupils as required by the federal individuals

with disabilities education act, Public Law 108-446, and by title I

of the federal every student succeeds act (ESSA), Public Law 114-

95.

(e) The content of the summative assessments shall be aligned

to state standards.

(f) The pool of questions for the summative assessments shall

be subject to a transparent review process for quality, bias, and

sensitive issues involving educator review and comment. The

department shall post samples from tests or retired tests featuring

questions from this pool for review by the public.

(g) The summative assessment system shall ensure that

students, parents, and teachers are provided with reports that

convey individual student proficiency and growth on the assessment

and that convey individual student domain-level performance in each

subject area, including representative questions, and individual

student performance in meeting state standards.

(h) The summative assessment system shall be capable of

providing, and the department shall ensure that students, parents,

teachers, administrators, and community members are provided with,

reports that convey aggregate student proficiency and growth data

by teacher, grade, school, and district.

(i) The summative assessment system shall ensure the

capability of reporting the available data to support educator

evaluations.

(j) The summative assessment system shall ensure that the

reports provided to districts containing individual student data

are available within 60 days after completion of the assessments.

(k) The summative assessment system shall ensure that access

to individually identifiable student data meets all of the

following:

(i) Is in compliance with 20 USC 1232g, commonly referred to

as the family educational rights and privacy act of 1974.

(ii) Except as may be provided for in an agreement with a

vendor to provide assessment services, as necessary to support

educator evaluations pursuant to subdivision (i), or for research

or program evaluation purposes, is available only to the student;

to the student's parent or legal guardian; and to a school

administrator or teacher, to the extent that he or she has a

legitimate educational interest.

(l) The summative assessment system shall ensure that the

assessments are pilot tested before statewide implementation.

(m) The summative assessment system shall ensure that

assessments are designed so that the maximum total combined length

of time that schools are required to set aside for a pupil to

answer all test questions on all assessments that are part of the

system for the pupil's grade level does not exceed that maximum

total combined length of time for the previous statewide assessment

system or 9 hours, whichever is less. This subdivision does not

limit the amount of time a district may allow a pupil to complete a

test.

(n) The total cost of executing the summative assessment

system statewide each year, including, but not limited to, the cost

of contracts for administration, scoring, and reporting, shall not

exceed an amount equal to 2 times the cost of executing the

previous statewide assessment after adjustment for inflation.

(o) Beginning with the 2017-2018 school year, the summative

assessment system shall not require more than 3 hours in duration,

on average, for an individual pupil to complete the combined

administration of the math and English language arts portions of

the assessment for any 1 grade level.

~~(4) In an effort to develop a cohesive state assessment~~

~~system, the department shall implement a request for information~~

~~process for a common formative assessment system that is fully~~

~~aligned to this state's content standards for English language arts~~

~~and mathematics. The department may use information compiled from a~~

~~request for proposal in 2016-2017 to satisfy this request.~~

(4) ~~(5) Beginning in the 2015-2016 school year, the~~ The

department shall ~~field test~~ administer benchmark assessments in the

fall and spring of each school year to measure English language

arts and mathematics in each of grades K to 2. ~~for full~~

~~implementation when the assessments have been successfully field~~

~~tested. This full~~ Full implementation shall occur not later than

the 2018-2019 school year. These assessments are necessary to

determine a pupil's proficiency level before grade 3.

~~(6) Not later than November 1, 2017, the department shall~~

~~issue a request for information for not less than 3 benchmark~~

~~assessments that each meet all of the following:~~

~~(a) Assesses all of grades 3 through 7 in math and English~~

~~language arts.~~

~~(b) Is aligned with this state's content standards such that~~

~~items were written for this state's content standards.~~

~~(c) Is computer adaptive above and below grade level.~~

~~(d) Produces a pupil's results in not more than 48 hours from~~

~~the time the benchmark assessment is administered.~~

~~(e) Is self-scoring.~~

~~(f) Aligns to this state's content standards.~~

~~(g) Measures the academic growth of pupils and provides an~~

~~estimate for adequate yearly growth.~~

~~(h) Demonstrates validity and reliability as appropriate for a~~

~~computer adaptive assessment.~~

~~(i) Is provided by a vendor that is willing to negotiate a~~

~~discounted state rate for pricing.~~

~~(7) Not later than March 1, 2018 and in consultation with~~

~~experts in the field of education and educational assessment~~

~~measurement, the department shall approve at least 3 benchmark~~

~~assessments that were included in a response to the request for~~

~~information under subsection (6) and meet the requirements~~

~~described in subsection (6).~~

~~(8) The department shall use the responses to the request for~~

~~information to create a benchmark assessment budget request for the~~

~~2018-2019 fiscal year.~~

(5) The department shall provide guidance to districts on

options for adopting and implementing department-approved benchmark

assessments for grades 3 to 7 in English language arts and

mathematics and shall recommend that districts commit to using the

same benchmark assessment for no less than 3 years without

switching to another benchmark assessment.

(6) ~~(9)~~ This section does not prohibit districts from adopting

interim assessments.

(7) ~~(10)~~ As used in this section, "English language arts"

means that term as defined in section 104b.

Sec. 104d. (1) From the state school aid fund money

appropriated in section 11, there is allocated for ~~2017-2018~~ 2018-

2019 an amount not to exceed $4,000,000.00 for providing

reimbursement to districts that purchase a computer-adaptive test,

or that purchase 1 or more diagnostic tools, screening tools, or

benchmark assessments for pupils in grades K to 3 that are intended

to increase reading proficiency by grade 4.

(2) In order to receive reimbursement under this section for

the purchase of a computer-adaptive test, the computer-adaptive

test must provide for at least all of the following:

(a) Internet-delivered, standards-based assessment using a

computer-adaptive model to target the instructional level of each

pupil.

(b) Unlimited testing opportunities throughout the ~~2017-2018~~

2018-2019 school year.

(d) Adjustment of testing difficulty based on previous answers

to test questions.

(e) Immediate feedback to pupils and teachers.

(3) In order to receive reimbursement under this section for

the purchase of 1 or more diagnostic tools or screening tools for

pupils in grades K to 3, each of the tools must meet all of the

following:

(a) Be reliable.

(b) Be valid.

that a tool is easy to administer and requires a short time to

complete and that results are linked to intervention.

(4) In order to receive funding under this section for the

purchase of 1 or more benchmark assessments for pupils in grades K

to 3, each of the benchmark assessments must meet all of the

following:

(a) Be aligned to the state standards of this state.

(b) Complement this state's summative assessment system.

administration of any summative assessment to monitor pupil

progress.

(d) Provide information on pupil achievement with regard to

learning the content required in a given year or grade span.

(5) Reimbursement under this section shall be made to eligible

districts that purchase a computer-adaptive test or 1 or more

diagnostic tools, screening tools, or benchmark assessments

described in this section by October 15, ~~2017~~ 2018 and shall be

made on an equal per-pupil basis according to the available

funding, based on the number of pupils for whom assessments were

purchased.

(6) In order to receive reimbursement under this section, a

district shall demonstrate to the satisfaction of the department

that each qualifying computer-adaptive test, diagnostic tool,

screening tool, or benchmark assessment was purchased by the

district by December 1, ~~2017.~~2018 and shall report to the

department which tests, tools, and assessments the district

purchased.

(7) Not later than February 1, 2019, the department shall

compile the data provided by districts under subsection (6) and

report to the house and senate appropriations subcommittees on

school aid and the house and senate fiscal agencies the number of

districts that purchased each test, tool, and assessment.

Sec. 104e. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed $250,000.00 for the

implementation of an assessment digital literacy preparation pilot

project for pupils enrolled in grades K to 8 for 2017-2018 and

2018-2019. The department shall ensure that a pilot project funded

under this subsection satisfies all of the following:

(a) Is available to districts in the 2017-2018 and 2018-2019

school ~~year.~~ years.

(b) Focuses on ensuring pupils have the necessary skills

required for state online assessments by assessing pupil digital

literacy skill levels and providing teachers with a digital

curriculum targeted at areas of determined weakness.

independent or teacher-facilitated modality.

(d) Includes training and professional development for

teachers.

(e) Is implemented in at least ~~220~~ 50 districts that operate

grades K to 8 and that represent a diverse geography and socio-

economic demographic.

(2) Funding under subsection (1) shall be allocated to a

district that operates at least grades K to 8 and has a partnership

with a third party that is experienced in the assessment of digital

literacy and the preparation of digital literacy skills and has

demonstrable experience serving districts in this state and local

education agencies in other states. The district, along with its

third-party partner, shall provide a report to the house and senate

appropriations subcommittees on school aid and the house and senate

fiscal agencies on the efficacy and usefulness of the assessment

digital literacy preparation pilot project no later than ~~September~~

~~30, 2018.~~April 1, 2019.

(3) Notwithstanding section 17b, payments under subsection (1)

shall be made in a manner determined by the department.

Sec. 107. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $27,000,000.00 for ~~2017-2018~~

2018-2019 for adult education programs authorized under this

section. Except as otherwise provided under subsections (14) ,

~~(15), and (19),~~ and (15), funds allocated under this section are

restricted for adult education programs as authorized under this

section only. A recipient of funds under this section shall not use

those funds for any other purpose.

(2) To be eligible for funding under this section, an eligible

adult education provider shall employ certificated teachers and

qualified administrative staff and shall offer continuing education

opportunities for teachers to allow them to maintain certification.

(3) To be eligible to be a participant funded under this

section, an individual shall be enrolled in an adult basic

education program, an adult secondary education program, an adult

English as a second language program, a high school equivalency

test preparation program, or a high school completion program, that

meets the requirements of this section, and for which instruction

is provided, and the individual shall ~~meet either of the following:~~

~~(a) Has attained 20 years of age.~~

~~(b) Has attained 18 years of age and the individual's~~

~~graduating class has graduated.~~be at least 18 years of age and the

individual's graduating class shall have graduated.

(4) By April 1 of each fiscal year, the intermediate districts

within a prosperity region or subregion shall determine which

intermediate district will serve as the prosperity region's or

subregion's fiscal agent for the next fiscal year and shall notify

the department in a form and manner determined by the department.

The department shall approve or disapprove of the prosperity

region's or subregion's selected fiscal agent. From the funds

allocated under subsection (1), an amount as determined under this

subsection shall be allocated to each intermediate district serving

as a fiscal agent for adult education programs in each of the

prosperity regions or subregions identified by the department. An

intermediate district shall not use more than 5% of the funds

allocated under this subsection for administration costs for

serving as the fiscal agent. Beginning in 2014-2015, 67% of the

allocation provided to each intermediate district serving as a

fiscal agent shall be based on the proportion of total funding

formerly received by the adult education providers in that

prosperity region or subregion in 2013-2014, and 33% shall be

allocated based on the factors in subdivisions (a), (b), and (c).

For 2018-2019, 33% of the allocation provided to each intermediate

district serving as a fiscal agent shall be based upon the

proportion of total funding formerly received by the adult

education providers in that prosperity region in 2013-2014 and 67%

of the allocation shall be based upon the factors in subdivisions

(a), (b), and (c). Beginning in 2019-2020, 100% of the allocation

provided to each intermediate district serving as a fiscal agent

shall be based on the factors in subdivisions (a), (b), and (c).

The funding factors for this section are as follows:

(a) Sixty percent of this portion of the funding shall be

distributed based upon the proportion of the state population of

individuals between the ages of 18 and 24 that are not high school

graduates that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American ~~community survey~~ Community Survey (ACS) from the

United States Census Bureau.

(b) Thirty-five percent of this portion of the funding shall

be distributed based upon the proportion of the state population of

individuals age 25 or older who are not high school graduates that

resides in each of the prosperity regions or subregions, as

reported by the most recent 5-year estimates from the American

~~community survey~~ Community Survey (ACS) from the United States

Census Bureau.

distributed based upon the proportion of the state population of

individuals age 18 or older who lack basic English language

proficiency that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American ~~community survey~~ Community Survey (ACS) from the

United States Census Bureau.

(5) To be an eligible fiscal agent, an intermediate district

must agree to do the following in a form and manner determined by

the department:

(a) Distribute funds to adult education programs in a

prosperity region or subregion as described in this section.

(b) Collaborate with the ~~talent district~~ career and

educational advisory council, which is an advisory council of the

workforce development boards located in the prosperity region or

subregion, or its successor, to develop a regional strategy that

aligns adult education programs and services into an efficient and

effective delivery system for adult education learners, with

special consideration for providing contextualized learning and

career pathways and addressing barriers to education and

employment.

educational advisory council, which is an advisory council of the

workforce development boards located in the prosperity region or

subregion, or its successor, to create a local process and criteria

that will identify eligible adult education providers to receive

funds allocated under this section based on location, demand for

services, past performance, quality indicators as identified by the

department, and cost to provide instructional services. The fiscal

agent shall determine all local processes, criteria, and provider

determinations. However, the local processes, criteria, and

provider services must be approved by the department before funds

may be distributed to the fiscal agent.

(d) Provide oversight to its adult education providers

throughout the program year to ensure compliance with the

requirements of this section.

(e) Report adult education program and participant data and

information as prescribed by the department.

(6) An adult basic education program, an adult secondary

education program, or an adult English as a second language program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

(a) The program enrolls adults who are determined by a

department-approved assessment, in a form and manner prescribed by

the department, to be below twelfth grade level in reading or

mathematics, or both, or to lack basic English proficiency.

(b) The program tests individuals for eligibility under

subdivision (a) before enrollment and upon completion of the

program in compliance with the state-approved assessment policy.

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed at or above the ninth grade level.

(ii) The participant fails to show progress on 2 successive

assessments after having completed at least 450 hours of

instruction.

(d) A participant in an adult secondary education program is

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed above the twelfth grade level.

(ii) The participant fails to show progress on 2 successive

assessments after having at least 450 hours of instruction.

(e) A funding recipient enrolling a participant in an English

as a second language program is eligible for funding according to

subsection (9) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic

English proficiency as determined by a department-approved

assessment.

(ii) The participant fails to show progress on 2 successive

department-approved assessments after having completed at least 450

hours of instruction. The department shall provide information to a

funding recipient regarding appropriate assessment instruments for

this program.

(7) A high school equivalency test preparation program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school

diploma or a high school equivalency certificate.

(b) The program shall administer a pre-test approved by the

department before enrolling an individual to determine the

individual's literacy levels, shall administer a high school

equivalency practice test to determine the individual's potential

for success on the high school equivalency test, and shall

administer a post-test upon completion of the program in compliance

with the state-approved assessment policy.

subsection (9) for a participant, and a participant may be enrolled

in the program until 1 of the following occurs:

(i) The participant achieves a high school equivalency

certificate.

(ii) The participant fails to show progress on 2 successive

department-approved assessments used to determine readiness to take

a high school equivalency test after having completed at least 450

hours of instruction.

(8) A high school completion program operated on a year-round

or school year basis may be funded under this section, subject to

all of the following:

(a) The program enrolls adults who do not have a high school

diploma.

(b) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the state-approved assessment policy.

subsection (9) for a participant in a course offered under this

subsection until 1 of the following occurs:

(i) The participant passes the course and earns a high school

diploma.

(ii) The participant fails to earn credit in 2 successive

semesters or terms in which the participant is enrolled after

having completed at least 900 hours of instruction.

(9) A funding recipient shall receive payments under this

section in accordance with all of the following:

(a) Statewide allocation criteria, including 3-year average

enrollments, census data, and local needs.

(b) Participant completion of the adult basic education

objectives by achieving an educational gain as determined by the

national reporting system levels; for achieving basic English

proficiency, as determined by the department; for achieving a high

school equivalency certificate or passage of 1 or more individual

high school equivalency tests; for attainment of a high school

diploma or passage of a course required for a participant to attain

a high school diploma; for enrollment in a postsecondary

institution, or for entry into or retention of employment, as

applicable.

the innovation and opportunity act.

(d) Allowable expenditures.

(10) A person who is not eligible to be a participant funded

under this section may receive adult education services upon the

payment of tuition. In addition, a person who is not eligible to be

served in a program under this section due to the program

limitations specified in subsection (6), (7), or (8) may continue

to receive adult education services in that program upon the

payment of tuition. The tuition level shall be determined by the

local or intermediate district conducting the program.

(11) An individual who is an inmate in a state correctional

facility shall not be counted as a participant under this section.

(12) A funding recipient shall not commingle money received

under this section or from another source for adult education

purposes with any other funds and shall establish a separate ledger

account for funds received under this section. This subsection does

not prohibit a district from using general funds of the district to

support an adult education or community education program.

(13) A funding recipient receiving funds under this section

may establish a sliding scale of tuition rates based upon a

participant's family income. A funding recipient may charge a

participant tuition to receive adult education services under this

section from that sliding scale of tuition rates on a uniform

basis. The amount of tuition charged per participant shall not

exceed the actual operating cost per participant minus any funds

received under this section per participant. A funding recipient

may not charge a participant tuition under this section if the

participant's income is at or below 200% of the federal poverty

guidelines published by the United States Department of Health and

Human Services.

(14) In order to receive funds under this section, a funding

recipient shall furnish to the department, in a form and manner

determined by the department, all information needed to administer

this program and meet federal reporting requirements; shall allow

the department or the department's designee to review all records

related to the program for which it receives funds; and shall

reimburse the state for all disallowances found in the review, as

determined by the department. In addition, a funding recipient

shall agree to pay to a career and technical education program

under section 61a the amount of funding received under this section

in the proportion of career and technical education coursework used

to satisfy adult basic education programming, as billed to the

funding recipient by programs operating under section 61a.

~~(15) From the amount appropriated in subsection (1), an amount~~

~~not to exceed $500,000.00 shall be allocated for 2017-2018 to not~~

~~more than 1 pilot program that is located in a prosperity region~~

~~with 2 or more subregions and that connects adult education~~

~~participants directly with employers by linking adult education,~~

~~career and technical skills, and workforce development. To be~~

~~eligible for funding under this subsection, a pilot program shall~~

~~provide a collaboration linking adult education programs within the~~

~~county, the area career/technical center, and local employers, and~~

~~shall meet the additional criteria in subsections (16) and (17).~~

~~Funding under this subsection for 2017-2018 is for the third of 3~~

~~years of funding.~~

~~(16) A pilot program funded under subsection (15) shall~~

~~require adult education staff to work with Michigan works! agency~~

~~to identify a cohort of participants who are most prepared to~~

~~successfully enter the workforce. Participants identified under~~

~~this subsection shall be dually enrolled in adult education~~

~~programming and at least 1 technical course at the area~~

~~career/technical center.~~

~~(17) A pilot program funded under subsection (15) shall have~~

~~on staff an adult education navigator who will serve as a~~

~~caseworker for each participant identified under subsection (16).~~

~~The navigator shall work with adult education staff and potential~~

~~employers to design an educational program best suited to the~~

~~personal and employment needs of the participant, and shall work~~

~~with human service agencies or other entities to address any~~

~~barrier in the way of participant access.~~

~~(18) Not later than December 1, 2018, the pilot program funded~~

~~under subsection (15) shall provide to the senate and house~~

~~appropriations subcommittees on school aid, to the senate and house~~

~~fiscal agencies, and to the state budget director a report~~

~~detailing number of participants, graduation rates, and a measure~~

~~of transitioning to employment.~~

(15) ~~(19)~~ From the amount appropriated in subsection (1), an

amount not to exceed $2,000,000.00 shall be allocated for ~~2017-2018~~

2018-2019 for grants to not more than 5 pilot programs ~~that are~~

~~additional to the pilot program funded under subsection (15)~~ to

connect adult education participants with employers as provided

under this subsection. To be eligible for funding under this

subsection, a pilot program must provide a collaboration linking

adult education programs within the county, the area career and

technical center, and local employers. The grant to each eligible

pilot program shall be up to $400,000.00. To receive funding under

this subsection, an eligible pilot program shall satisfy all of the

following:

(a) Meets 1 of the following:

(i) Is located in prosperity region 1c.

(ii) Is located in prosperity region 2 and borders prosperity

region 4.

(iii) Is located in prosperity region 4a and borders

prosperity region 5.

(iv) Is located in prosperity region 5 and borders Lake Huron.

(v) Is located in prosperity region 9 and borders a

neighboring state.

~~(b) Begins operations at the start of the 2017-2018 school~~

~~year.~~

~~(c) Replicates the pilot program funded under subsection (15).~~

~~(d) Meets the requirements under subsections (15), (16), and~~

~~(17) for a pilot program funded under subsection (15).~~

(b) Shall require adult education staff to work with Michigan

Works! agency to identify a cohort of participants who are most

prepared to successfully enter the workforce. Participants

identified under this subsection shall be dually enrolled in adult

education programming and at least 1 technical course at the area

career and technical center.

navigator who will serve as a caseworker for each participant

identified under subdivision (b). The navigator shall work with

adult education staff and potential employers to design an

educational program best suited to the personal and employment

needs of the participant and shall work with human service agencies

or other entities to address any barrier in the way of participant

access.

(16) ~~(20)~~ Not later than December 1, ~~2018,~~ 2019, a pilot

program funded under subsection ~~(19)~~ (15) shall provide a report to

the senate and house appropriations subcommittees on school aid, to

the senate and house fiscal agencies, and to the state budget

director identifying the number of participants, graduation rates,

and a measure of transition to employment.

(17) ~~(21)~~ The department shall approve at least 3 high school

equivalency tests and determine whether a high school equivalency

certificate meets the requisite standards for high school

equivalency in this state.

(18) ~~(22)~~ As used in this section:

(a) "Career and educational advisory council" means an

advisory council to the local workforce development boards located

in a prosperity region consisting of educational, employer, labor,

and parent representatives.

(b) ~~(a)~~ "Career pathway" means a combination of rigorous and

high-quality education, training, and other services that comply

with all of the following:

(i) Aligns with the skill needs of industries in the economy

of this state or in the regional economy involved.

(ii) Prepares an individual to be successful in any of a full

range of secondary or postsecondary education options, including

apprenticeships registered under the act of August 16, 1937

(commonly known as the "national apprenticeship act"), 29 USC 50 et

seq.

(iii) Includes counseling to support an individual in

achieving the individual's education and career goals.

(iv) Includes, as appropriate, education offered concurrently

with and in the same context as workforce preparation activities

and training for a specific occupation or occupational cluster.

(v) Organizes education, training, and other services to meet

the particular needs of an individual in a manner that accelerates

the educational and career advancement of the individual to the

extent practicable.

(vi) Enables an individual to attain a secondary school

diploma or its recognized equivalent, and at least 1 recognized

postsecondary credential.

(vii) Helps an individual enter or advance within a specific

occupation or occupational cluster.

House Bill No. 5579 as amended April 24, 2018

economic development.

(d) ~~(c)~~ "Eligible adult education provider" means a district,

intermediate district, a consortium of districts, a consortium of

intermediate districts, or a consortium of districts and

intermediate districts that is identified as part of the local

process described in subsection (5)(c) and approved by the

department.

Sec. 110. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed [$3,000,000.00]

for 2018-2019 to expand an existing advanced 911 state

contract for the sole purpose of implementing a statewide pilot Secure

Schools Program and Panic Button App phone application system in public

and nonpublic [Schools that Operate Any of Grades K to 12.]

(2) The Panic Button App phone application system funded under

this section must be able to do all of the following

simultaneously:

(a) Allow authorized users to place a voice call to 911.

(b) Provide intelligent notifications via text and electronic

mail.

regarding the identity and location of the reporting party,

response type required based on incident type, and additional

location details to relevant communities to which users belong

including, but not limited to, both of the following, as applicable

based on the location and category of the emergency event:

(i) Key stakeholders.

(ii) Authorized users, including, but not limited to, all of

the following:

(A) School staff.

(B) School resource officers.

(D) First responder agencies.

(d) Allow 911, school officials, and first responder agencies

to send messages to Panic Button App users both during and after

emergency events in order to facilitate ongoing communications and

coordination.

(3) The Secure Schools Program funded under this section must

integrate with this state's current supplemental 911 database to

maintain information voluntarily provided by individuals and

facility managers via a secure web application. Any information

submitted by districts under the Secure Schools Program, including,

but not limited to, floorplans, automated external defibrillator

information, school safety plans, reunification plans, and entry or

exit points must automatically appear to 911 whenever the Panic

Button App is activated.

(4) Funds appropriated under this section may be used to

defray the initial costs associated with the implementation of the

Secure Schools Program, including installation, training, and

maintenance costs. Funds must be distributed in 2 payments. The

first payment must be made by October 1, 2018 and the second

payment must be made by December 30, 2018.

Sec. 147. (1) The allocation for ~~2017-2018~~ 2018-2019 for the

public school employees' retirement system pursuant to the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

to 38.1437, shall be made using the individual projected benefit

entry age normal cost method of valuation and risk assumptions

adopted by the public school employees retirement board and the

department of technology, management, and budget.

(2) The annual level percentage of payroll contribution rates

for the ~~2017-2018~~ 2018-2019 fiscal year, as determined by the

retirement system, are estimated as follows:

(a) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who are enrolled in

the health premium subsidy, the annual level percentage of payroll

contribution rate is estimated at ~~36.88%,~~ 38.39%, with ~~25.56%~~

26.18% paid directly by the employer.

(b) For public school employees who first worked for a public

school reporting unit on or after July 1, 2010 and who are enrolled

in the health premium subsidy, the annual level percentage of

payroll contribution rate is estimated at ~~35.60%,~~ 36.60%, with

~~24.28%~~ 24.39% paid directly by the employer.

school reporting unit on or after July 1, 2010 and who participate

in the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~35.35%,~~ 36.24%, with

24.03% paid directly by the employer.

(d) For public school employees who first worked for a public

school reporting unit on or after September 4, 2012, who elect

defined contribution, and who participate in the personal

healthcare fund, the annual level percentage of payroll

contribution rate is estimated at ~~32.28%,~~ 33.17%, with 20.96% paid

directly by the employer.

(e) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who are enrolled in the health premium subsidy,

the annual level percentage of payroll contribution rate is

estimated at ~~32.53%,~~ 33.53%, with ~~21.21%~~ 21.32% paid directly by

the employer.

(f) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who participate in the personal healthcare fund,

the annual level percentage of payroll contribution rate is

estimated at ~~32.28%,~~ 33.17%, with 20.96% paid directly by the

employer.

(g) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who participate in

the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~36.63%,~~ 38.03%, with

~~25.31%~~ 25.82% paid directly by the employer.

(h) For public school employees who first worked for a public

school reporting unit after January 31, 2018 and who elect to

become members of the MPSERS plan, the annual level percentage of

payroll contribution rate is estimated at 39.37%, with 27.16% paid

directly by the employer.

(3) In addition to the employer payments described in

subsection (2), the employer shall pay the applicable contributions

to the Tier 2 plan, as determined by the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

(4) The contribution rates in subsection (2) reflect an

amortization period of 21 20 years for ~~2017-2018.~~ 2018-2019. The

public school employees' retirement system board shall notify each

district and intermediate district by February 28 of each fiscal

year of the estimated contribution rate for the next fiscal year.

Sec. 147a. (1) From the appropriation in section 11, there is

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

$100,000,000.00 for payments to participating districts. A

participating district that receives money under this subsection

shall use that money solely for the purpose of offsetting a portion

of the retirement contributions owed by the district for the fiscal

year in which it is received. The amount allocated to each

participating district under this subsection shall be based on each

participating district's percentage of the total statewide payroll

for all participating districts for the immediately preceding

fiscal year. As used in this subsection, "participating district"

means a district that is a reporting unit of the Michigan public

school employees' retirement system under the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

38.1437, and that reports employees to the Michigan public school

employees' retirement system for the applicable fiscal year.

(2) In addition to the allocation under subsection (1), from

the state school aid fund money appropriated under section 11,

there is allocated an amount not to exceed ~~$48,940,000.00 for 2017-~~

~~2018~~ $88,091,000.00 for 2018-2019 for payments to participating

districts and intermediate districts and from the general fund

money appropriated under section 11, there is allocated an amount

not to exceed ~~$29,000.00 for 2017-2018~~ $48,000.00 for 2018-2019 for

payments to participating district libraries. The amount allocated

to each participating entity under this subsection shall be based

on each participating entity's percentage of the total statewide

payroll for that type of participating entity for the immediately

preceding fiscal year. A participating entity that receives money

under this subsection shall use that money solely for the purpose

of offsetting a portion of the normal cost contribution rate. As

used in this subsection:

(a) "District library" means a district library established

under the district library establishment act, 1989 PA 24, MCL

397.171 to 397.196.

(b) "Participating entity" means a district, intermediate

district, or district library that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1437, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

Sec. 147b. (1) The MPSERS retirement obligation reform reserve

fund is created as a separate account within the state school aid

fund.

(2) The state treasurer may receive money or other assets from

any source for deposit into the MPSERS retirement obligation reform

reserve fund. The state treasurer shall direct the investment of

the MPSERS retirement obligation reform reserve fund. The state

treasurer shall credit to the MPSERS retirement obligation reform

reserve fund interest and earnings from the MPSERS retirement

obligation reform reserve fund.

(3) Money available in the MPSERS retirement obligation reform

reserve fund shall not be expended without a specific

appropriation.

(4) Money in the MPSERS retirement obligation reform reserve

fund at the close of the fiscal year shall remain in the MPSERS

retirement obligation reform reserve fund and shall not lapse to

the state school aid fund or to the general fund. The department of

treasury shall be the administrator of the MPSERS retirement

obligation reform reserve fund for auditing purposes.

~~(5) If the contributions described in section 43e of the~~

~~public school employees retirement act of 1979, 1980 PA 300, MCL~~

~~38.1343e, as that section was added by 2010 PA 75, are determined~~

~~by a final order of a court of competent jurisdiction for which all~~

~~rights of appeal have been exhausted to be constitutional and if~~

~~the order for preliminary injunction in case no. 10-45-MM issued on~~

~~July 13, 2010 is lifted, the money placed in a separate interest~~

~~bearing account as a result of implementing the preliminary~~

~~injunction shall be deposited into the MPSERS retirement obligation~~

~~reform reserve fund created in this section to be used solely for~~

~~health care unfunded accrued liabilities.~~

~~(6) For the fiscal year ending September 30, 2018,~~

~~$55,000,000.00 from the state school aid fund shall be deposited~~

~~into the MPSERS retirement obligation reform reserve fund to be~~

~~used for the purposes under section 147e.~~

Sec. 147c. ~~(1)~~ From the appropriation in section 11, there is

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

~~$960,130,000.00~~ $1,032,000,000.00 from the state school aid fund

for payments to districts and intermediate districts that are

participating entities of the Michigan public school employees'

retirement system. In addition, from the general fund money

appropriated in section 11, there is allocated for ~~2017-2018~~ 2018-

2019 an amount not to exceed ~~$654,000.00~~ $700,000.00 for payments

to district libraries that are participating entities of the

Michigan public school employees' retirement system. All of the

following apply to funding under this subsection:

(a) For ~~2017-2018,~~ 2018-2019, the amounts allocated under this

subsection are estimated to provide an average MPSERS rate cap per

pupil amount of ~~$640.00~~ $690.00 and are estimated to provide a rate

cap per pupil for districts ranging between $4.00 and

~~$3,020.00.~~$3,000.00.

(b) Payments made under this subsection shall be equal to the

difference between the unfunded actuarial accrued liability

contribution rate as calculated pursuant to section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341, as calculated without taking into account the maximum

employer rate of 20.96% included in section 41 of the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the

maximum employer rate of 20.96% included in section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341.

this subsection shall be based on each participating entity's

proportion of the total covered payroll for the immediately

preceding fiscal year for the same type of participating entities.

A participating entity that receives funds under this subsection

shall use the funds solely for the purpose of retirement

contributions as specified in subdivision (d).

(d) Each participating entity receiving funds under this

subsection shall forward an amount equal to the amount allocated

under subdivision (c) to the retirement system in a form, manner,

and time frame determined by the retirement system.

(e) Funds allocated under this subsection should be considered

when comparing a district's growth in total state aid funding from

1 fiscal year to the next.

(f) Not later than December 20, ~~2017,~~ 2018, the department

shall publish and post on its website an estimated MPSERS rate cap

per pupil for each district.

(g) It is the intent of the legislature that any funds

allocated under this subsection are first applied to pension

contributions, and if any funds remain after that payment, those

remaining funds shall be applied to other postemployment benefit

contributions.

(h) As used in this subsection:

(i) "District library" means a district library established

under the district library establishment act, 1989 PA 24, MCL

397.171 to 397.196.

(ii) "MPSERS rate cap per pupil" means an amount equal to the

quotient of the district's payment under this subsection divided by

the district's pupils in membership.

(iii) "Participating entity" means a district, intermediate

district, or district library that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1437, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

(iv) "Retirement board" means the board that administers the

retirement system under the public school employees retirement act

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

(v) "Retirement system" means the Michigan public school

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

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

~~from the appropriation in section 11, there is allocated for 2017-~~

~~2018 only an amount not to exceed $200,000,000.00 for payments to~~

~~participating entities. Notwithstanding section 17b, payments to~~

~~eligible participating entities under this subsection shall be paid~~

~~in 1 installment no later than October 20, 2017. Payments under~~

~~this subsection shall be made as follows:~~

~~(a) The amount allocated to each participating entity under~~

~~this subsection shall be based on each participating entity's~~

~~proportion of the total covered payroll for the fiscal year ending~~

~~September 30, 2016. A participating entity that receives funds~~

~~under this subsection shall use the funds solely for purposes of~~

~~this subsection.~~

~~(b) Each participating entity receiving funds under this~~

~~subsection shall forward an amount equal to the sum of the amount~~

~~allocated under this subsection and the amount allocated under~~

~~subsection (1) to the retirement system in a form, manner, and time~~

~~frame prescribed by the retirement system.~~

~~(c) Payments under this subsection shall be used by the~~

~~retirement system specifically for the payment or prepayment of the~~

~~final years or partial years of any additional costs to the~~

~~retirement system due to the operation of section 81b of the public~~

~~school employees retirement act of 1979, 1980 PA 300, MCL 38.1381b,~~

~~without regard to the amortization of those costs under section~~

~~81b(5) of the public school employees retirement act of 1979, 1980~~

~~PA 300, MCL 38.1381b, and in a manner and form as determined by the~~

~~office of retirement services.~~

~~(d) As used in this subsection:~~

(i~~) "Participating entity" means a district, intermediate~~

~~district, community college, or district library that is a~~

~~reporting unit of the Michigan public school employees' retirement~~

~~system under the public school employees retirement act of 1979,~~

~~1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to~~

~~the Michigan public school employees' retirement system for the~~

~~applicable fiscal year.~~

(ii~~) "Retirement system" means the Michigan public school~~

~~employees' retirement system under the public school employees~~

~~retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.~~

Sec. 147e. (1) From the appropriation in section 11, there is

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

~~$23,100,000.00~~ $31,900,000.00 from the MPSERS retirement obligation

reform reserve fund and $5,700,000.00 from the state school aid

fund for payments to participating entities.

(2) The payment to each participating entity under this

section shall be the sum of the amounts under this subsection as

follows:

(a) An amount equal to the contributions made by a

participating entity for the additional contribution made to a

qualified participant's Tier 2 account in an amount equal to the

contribution made by the qualified participant not to exceed 3% of

the qualified participant's compensation as provided for under

section 131(6) of the public school employees retirement act of

1979, 1980 PA 300, MCL 38.1431. ~~, if that act is amended by either~~

~~Senate Bill No. 401 or House Bill No. 4647 of the 99th Legislature.~~

(b) Beginning October 1, 2017, an amount equal to the

contributions made by a participating entity for a qualified

participant who is only a Tier 2 qualified participant under

section 81d of the public school employees retirement act of 1979,

1980 PA 300, MCL 38.1381d, not to exceed 4%, and, beginning

February 1, 2018, not to exceed 1%, of the qualified participant's

compensation. ~~, if that act is amended by either Senate Bill No.~~

~~401 or House Bill No. 4647 of the 99th Legislature.~~

contributions under section 41b(2) of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341b, for a member

that was hired after February 1, 2018 and chose to participate in

Tier 1, compared to the employer normal cost contribution for a

member under section 41b(1) of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341b. ~~, if section 41b~~

~~of the public school employees retirement act of 1979, 1980 PA 300,~~

~~MCL 38.1341b, is amended by either Senate Bill No. 401 or House~~

~~Bill No. 4647 of the 99th Legislature.~~

(3) As used in this section:

(a) "Member" means that term as defined under the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

to 38.1437.

(b) "Participating entity" means a district, intermediate

district, or community college that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1437, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

section 124 of the public school employees retirement act of 1979,

1980 PA 300, MCL 38.1424.

Sec. 152a. (1) As required by the court in the consolidated

cases known as ~~Adair v State of Michigan,~~ Adair v State of

Michigan, 486 Mich 468 (2010), from the state school aid fund money

appropriated in section 11 there is allocated for ~~2017-2018~~ 2018-

2019 an amount not to exceed $38,000,500.00 to be used solely for

the purpose of paying necessary costs related to the state-mandated

collection, maintenance, and reporting of data to this state.

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

shall make payments to districts and intermediate districts in an

equal amount per-pupil based on the total number of pupils in

membership in each district and intermediate district. The

department shall not make any adjustment to these payments after

the final installment payment under section 17b is made.

Sec. 152b. (1) From the general fund money appropriated under

section 11, there is allocated an amount not to exceed

$2,500,000.00 ~~for each fiscal year for 2016-2017 and~~ for 2017-2018

and for 2018-2019 to reimburse actual costs incurred by nonpublic

schools in complying with a health, safety, or welfare requirement

mandated by a law or administrative rule of this state.

(2) By January 1 of each applicable fiscal year, the

department shall publish a form for reporting actual costs incurred

by a nonpublic school in complying with a health, safety, or

welfare requirement mandated under state law containing each

health, safety, or welfare requirement mandated by a law or

administrative rule of this state applicable to a nonpublic school

and with a reference to each relevant provision of law or

administrative rule for the requirement. The form shall be posted

on the department's website in electronic form.

(3) By June 30 of each applicable fiscal year, a nonpublic

school seeking reimbursement for actual costs incurred in complying

with a health, safety, or welfare requirement under a law or

administrative rule of this state during each applicable school

year shall submit a completed form described in subsection (2) to

the department. This section does not require a nonpublic school to

submit a form described in subsection (2). A nonpublic school is

not eligible for reimbursement under this section if the nonpublic

school does not submit the form described in subsection (2) in a

timely manner.

(4) By August 15 of each applicable fiscal year, the

department shall distribute funds to each nonpublic school that

submits a completed form described under subsection (2) in a timely

manner. The superintendent shall determine the amount of funds to

be paid to each nonpublic school in an amount that does not exceed

the nonpublic school's actual costs in complying with a health,

safety, or welfare requirement under a law or administrative rule

of this state. The superintendent shall calculate a nonpublic

school's actual cost in accordance with this section.

(5) If the funds allocated under this section are insufficient

to fully fund payments as otherwise calculated under this section,

the department shall distribute funds under this section on a

prorated or other equitable basis as determined by the

superintendent.

(6) The department may review the records of a nonpublic

school submitting a form described in subsection (2) only for the

limited purpose of verifying the nonpublic school's compliance with

this section. If a nonpublic school does not allow the department

to review records under this subsection, the nonpublic school is

not eligible for reimbursement under this section.

(7) The funds appropriated under this section are for purposes

related to education, are considered to be incidental to the

operation of a nonpublic school, are noninstructional in character,

and are intended for the public purpose of ensuring the health,

safety, and welfare of the children in nonpublic schools and to

reimburse nonpublic schools for costs described in this section.

(8) Funds allocated under this section are not intended to aid

or maintain any nonpublic school, support the attendance of any

student at a nonpublic school, employ any person at a nonpublic

school, support the attendance of any student at any location where

instruction is offered to a nonpublic school student, or support

the employment of any person at any location where instruction is

offered to a nonpublic school student.

(9) For purposes of this section, "actual cost" means the

hourly wage for the employee or employees performing a task or

tasks required to comply with a health, safety, or welfare

requirement under a law or administrative rule of this state

identified by the department under subsection (2) and is to be

calculated in accordance with the form published by the department

under subsection (2), which shall include a detailed itemization of

costs. The nonpublic school shall not charge more than the hourly

wage of its lowest-paid employee capable of performing a specific

task regardless of whether that individual is available and

regardless of who actually performs a specific task. Labor costs

under this subsection shall be estimated and charged in increments

of 15 minutes or more, with all partial time increments rounded

down. When calculating costs under subsection (4), fee components

shall be itemized in a manner that expresses both the hourly wage

and the number of hours charged. The nonpublic school may not

charge any applicable labor charge amount to cover or partially

cover the cost of health or fringe benefits. A nonpublic school

shall not charge any overtime wages in the calculation of labor

costs.

(10) For the purposes of this section, the actual cost

incurred by a nonpublic school for taking daily student attendance

shall be considered an actual cost in complying with a health,

safety, or welfare requirement under a law or administrative rule

of this state. Training fees, inspection fees, and criminal

background check fees are considered actual costs in complying with

a health, safety, or welfare requirement under a law or

administrative rule of this state.

(11) The funds allocated under this section for ~~2016-2017~~

2017-2018 are a work project appropriation, and any unexpended

funds for ~~2016-2017~~ 2017-2018 are carried forward into ~~2017-2018.~~

2018-2019. The purpose of the work project is to continue to

reimburse nonpublic schools for actual costs incurred in complying

with a health, safety, or welfare requirement mandated by a law or

administrative rule of this state. The estimated completion date of

the work project is September 30, ~~2019.~~2020.

(12) The funds allocated under this section for 2018-2019 are

a work project appropriation, and any unexpended funds for 2018-

2019 are carried forward into 2019-2020. The purpose of the work

project is to continue to reimburse nonpublic schools for actual

costs incurred in complying with a health, safety, or welfare

requirement mandated by a law or administrative rule of this state.

The estimated completion date of the work project is September 30,

2020.

Sec. 166b. (1) This act does not prohibit a parent or legal

guardian of a minor who is enrolled in any of grades kindergarten

to 12 in a nonpublic school or who is being home-schooled from also

enrolling the minor in a district, public school academy, or

intermediate district in any curricular offering that is provided

by the district, public school academy, or intermediate district at

a public school site and is available to pupils in the minor's

grade level or age group, subject to compliance with the same

requirements that apply to a full-time pupil's participation in the

offering. However, state school aid shall be provided under this

act for a minor enrolled as described in this subsection only for

curricular offerings that are available to full-time pupils in the

minor's grade level or age group.

(2) This act does not prohibit a parent or legal guardian of a

minor who is enrolled in any of grades kindergarten to 12 in a

nonpublic school or who resides within the district and is being

home-schooled from also enrolling the minor in the district in a

curricular offering being provided by the district at the nonpublic

school site. However, state school aid shall be provided under this

act for a minor enrolled as described in this subsection only if

all of the following apply:

(a) Either of the following:

(i) The nonpublic school site is located, or the nonpublic

students are educated, within the geographic boundaries of the

district.

(ii) If the nonpublic school has submitted a written request

to the district in which the nonpublic school is located for the

district to provide certain instruction under this subsection for a

school year and the district does not agree to provide some or all

of that instruction by May 1 immediately preceding that school year

or, if the request is submitted after March 1 immediately preceding

that school year, within 60 days after the nonpublic school submits

the request, the instruction is instead provided by an eligible

other district. This subparagraph does not require a nonpublic

school to submit more than 1 request to the district in which the

nonpublic school is located for that district to provide

instruction under this subsection, and does not require a nonpublic

school to submit an additional request to the district in which the

nonpublic school is located for that district to provide additional

instruction under this subsection beyond the instruction requested

in the original request, before having the instruction provided by

an eligible other district. A public school academy that is located

in the district in which the nonpublic school is located or in an

eligible other district also may provide instruction under this

subparagraph under the same conditions as an eligible other

district. As used in this subparagraph, "eligible other district"

means a district that is located in the same intermediate district

as the district in which the nonpublic school is located or is

located in an intermediate district that is contiguous to that

intermediate district.

(b) The nonpublic school is registered with the department as

a nonpublic school and meets all state reporting requirements for

nonpublic schools.

teacher at of the district, or public school academy, or ~~at an~~

intermediate district.

(d) The ~~curricular offering is also available to full-time~~

~~pupils in the minor's grade level or age group in the district or~~

~~public school academy at a public school site.~~district has

published the curricular offering in a course catalog provided to

full-time pupils in the minor's grade level or age group, or the

district has published the curricular offering or a link to the

curricular offering on its publicly available website.

(e) The curricular offering is restricted to nonessential

elective courses for pupils in grades kindergarten to 12.

(3) A nonessential course in grades 1 to 8 is a course other

than a mathematics, science, social studies, ~~and~~ or English

language arts course ~~required by the district for grade~~

~~progression.~~ that contains substantially all of the grade level

model core academic curriculum content standards developed by the

state board under section 1278 of the revised school code, MCL

380.1278, as applicable. Nonessential courses in grades 9 to 12 are

those other than algebra 1, algebra 2, English 9-12, geometry,

biology, chemistry, physics, economics, geography, American

history, world history, the Constitution, government, and civics,

or courses ~~that fulfill the same credit requirement as these~~

~~courses.~~ that are aligned with the same subject area content

expectations developed for those courses by the department and

approved by the state board under sections 1278a and 1278b of the

revised school code, MCL 380.1278a and 380.1278b, as applicable.

Nonessential elective courses include courses offered by the local

district for high school credit that are also capable of generating

postsecondary credit, including, at least, advanced placement and

international baccalaureate courses. College level courses taken by

high school students for college credit are nonessential courses.

Remedial courses for any grade in the above-listed essential

courses are considered essential. Kindergarten is considered

nonessential.

(4) Subject to section 6(4)(ii), a minor enrolled as described

in this section is a part-time pupil for purposes of state school

aid under this act.

(5) A district that receives a written request to provide

instruction under subsection (2) shall reply to the request in

writing by May 1 immediately preceding the applicable school year

or, if the request is made after March 1 immediately preceding that

school year, within 60 days after the nonpublic school submits the

request. The written reply shall specify whether the district

agrees to provide or does not agree to provide the instruction for

each portion of instruction included in the request.

Sec. 167b. (1) Not later than August 1, 2018, and not later

than August 1 of each subsequent year, a district or intermediate

district that operates a school violence tip line shall report to

the attorney general on the operation of the tip line. The

information reported must include at least all of the following,

for the purposes of studying best practices:

(a) Whether the tip line operates 24 hours a day.

(b) Whether the tip line is connected to local law

enforcement.

operate the tip line.

(2) A district or intermediate district shall annually

designate at least 1, but no more than 2, employees as the school

officials who will receive information under section 3(4) of the

student safety act, 2013 PA 183, MCL 752.913, and shall provide the

attorney general with the contact information for the designated

school officials that allows the designated school officials to

receive information 24 hours a day, 365 days a year.

Sec. 201. (1) Subject to the conditions set forth in this

article, the amounts listed in this section are appropriated for

community colleges for the fiscal year ending September 30, ~~2018,~~

2019, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

(a) The gross appropriation is ~~$399,326,500.00.~~

$408,215,500.00. After deducting total interdepartmental grants and

intradepartmental transfers in the amount of $0.00, the adjusted

gross appropriation is ~~$399,326,500.00.~~$408,215,500.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$398,301,500.00.~~$408,215,500.00.

(v) State general fund/general purpose money,

~~$1,025,000.00.~~$0.00.

(2) Subject to subsection (3), the amount appropriated for

community college operations is ~~$319,050,900.00,~~ $322,250,900.00,

allocated as follows:

(a) The appropriation for Alpena Community College is

~~$5,627,500.00, $5,596,200.00 for operations and $31,300.00 for~~

~~performance funding.~~$5,681,600.00, $5,627,500.00 for operations and

$54,100.00 for performance funding.

(b) The appropriation for Bay de Noc Community College is

~~$5,589,000.00, $5,560,900.00 for operations and $28,100.00 for~~

~~performance funding.~~$5,635,400.00, $5,589,000.00 for operations and

$46,400.00 for performance funding.

~~$14,907,700.00 for operations and $83,000.00 for performance~~

~~funding.~~$15,138,200.00, $14,990,700.00 for operations and

$147,500.00 for performance funding.

(d) The appropriation for Glen Oaks Community College is

~~$2,601,400.00, $2,586,900.00 for operations and $14,500.00 for~~

~~performance funding.~~$2,625,600.00, $2,601,400.00 for operations and

$24,200.00 for performance funding.

(e) The appropriation for Gogebic Community College is

~~$4,715,400.00, $4,692,200.00 for operations and $23,200.00 for~~

~~performance funding.~~$4,760,300.00, $4,715,400.00 for operations and

$44,900.00 for performance funding.

(f) The appropriation for Grand Rapids Community College is

~~$18,556,800.00, $18,450,500.00 for operations and $106,300.00 for~~

~~performance funding.~~$18,754,800.00, $18,556,800.00 for operations

and $198,000.00 for performance funding.

(g) The appropriation for Henry Ford College is

~~$22,299,200.00, $22,176,000.00 for operations and $123,200.00 for~~

~~performance funding.~~$22,512,700.00, $22,299,200.00 for operations

and $213,500.00 for performance funding.

(h) The appropriation for Jackson College is ~~$12,590,100.00,~~

~~$12,527,400.00 for operations and $62,700.00 for performance~~

~~funding.~~$12,695,200.00, $12,590,100.00 for operations and

$105,100.00 for performance funding.

(i) The appropriation for Kalamazoo Valley Community College

is ~~$12,948,700.00, $12,873,900.00 for operations and $74,800.00 for~~

~~performance funding.~~$13,075,800.00, $12,948,700.00 for operations

and $127,100.00 for performance funding.

(j) The appropriation for Kellogg Community College is

~~$10,143,600.00, $10,087,500.00 for operations and $56,100.00 for~~

~~performance funding.~~$10,235,500.00, $10,143,600.00 for operations

and $91,900.00 for performance funding.

(k) The appropriation for Kirtland Community College is

~~$3,289,400.00, $3,270,000.00 for operations and $19,400.00 for~~

~~performance funding.~~$3,331,300.00, $3,289,400.00 for operations and

$41,900.00 for performance funding.

(l) The appropriation for Lake Michigan College is

~~$5,523,600.00, $5,492,800.00 for operations and $30,800.00 for~~

~~performance funding.~~$5,577,000.00, $5,523,600.00 for operations and

$53,400.00 for performance funding.

(m) The appropriation for Lansing Community College is

~~$32,324,200.00, $32,165,600.00 for operations and $158,600.00 for~~

~~performance funding.~~$32,597,400.00, $32,324,200.00 for operations

and $273,200.00 for performance funding.

(n) The appropriation for Macomb Community College is

~~$33,863,600.00, $33,681,800.00 for operations and $181,800.00 for~~

~~performance funding.~~$34,201,700.00, $33,863,600.00 for operations

and $338,100.00 for performance funding.

(o) The appropriation for Mid Michigan Community College is

~~$4,968,900.00, $4,937,400.00 for operations and $31,500.00 for~~

~~performance funding.~~$5,026,100.00, $4,968,900.00 for operations and

$57,200.00 for performance funding.

(p) The appropriation for Monroe County Community College is

~~$4,665,500.00, $4,636,700.00 for operations and $28,800.00 for~~

~~performance funding.~~$4,721,400.00, $4,665,500.00 for operations and

$55,900.00 for performance funding.

(q) The appropriation for Montcalm Community College is

~~$3,446,300.00, $3,426,700.00 for operations and $19,600.00 for~~

~~performance funding.~~$3,482,200.00, $3,446,300.00 for operations and

$35,900.00 for performance funding.

(r) The appropriation for C.S. Mott Community College is

~~$16,258,100.00, $16,167,200.00 for operations and $90,900.00 for~~

~~performance funding.~~$16,418,500.00, $16,258,100.00 for operations

and $160,400.00 for performance funding.

(s) The appropriation for Muskegon Community College is

~~$9,203,000.00, $9,150,600.00 for operations and $52,400.00 for~~

~~performance funding.~~$9,283,100.00, $9,203,000.00 for operations and

$80,100.00 for performance funding.

(t) The appropriation for North Central Michigan College is

~~$3,353,200.00, $3,330,200.00 for operations and $23,000.00 for~~

~~performance funding.~~$3,397,600.00, $3,353,200.00 for operations and

$44,400.00 for performance funding.

(u) The appropriation for Northwestern Michigan College is

~~$9,508,900.00, $9,459,800.00 for operations and $49,100.00 for~~

~~performance funding.~~$9,594,200.00, $9,508,900.00 for operations and

$85,300.00 for performance funding.

(v) The appropriation for Oakland Community College is

~~$21,905,700.00, $21,770,900.00 for operations and $134,800.00 for~~

~~performance funding.~~$22,149,000.00, $21,905,700.00 for operations

and $243,300.00 for performance funding.

(w) The appropriation for Schoolcraft College is

~~$12,991,300.00, $12,909,300.00 for operations and $82,000.00 for~~

~~performance funding.~~$13,149,200.00, $12,991,300.00 for operations

and $157,900.00 for performance funding.

(x) The appropriation for Southwestern Michigan College is

~~$6,860,700.00, $6,827,000.00 for operations and $33,700.00 for~~

~~performance funding.~~$6,917,300.00, $6,860,700.00 for operations and

$56,600.00 for performance funding.

(y) The appropriation for St. Clair County Community College

is ~~$7,300,100.00, $7,259,300.00 for operations and $40,800.00 for~~

~~performance funding.~~$7,376,200.00, $7,300,100.00 for operations and

$76,100.00 for performance funding.

(z) The appropriation for Washtenaw Community College is

~~$13,631,400.00, $13,534,000.00 for operations and $97,400.00 for~~

~~performance funding.~~$13,803,500.00, $13,631,400.00 for operations

and $172,100.00 for performance funding.

(aa) The appropriation for Wayne County Community College is

~~$17,338,300.00, $17,234,200.00 for operations and $104,100.00 for~~

~~performance funding.~~$17,531,600.00, $17,338,300.00 for operations

and $193,300.00 for performance funding.

(bb) The appropriation for West Shore Community College is

~~$2,556,300.00, $2,540,000.00 for operations and $16,300.00 for~~

~~performance funding.~~$2,578,500.00, $2,556,300.00 for operations and

$22,200.00 for performance funding.

(3) The amount appropriated in subsection (2) for community

college operations is ~~$319,050,900.00~~ $322,250,900.00 and is

appropriated from the state school aid fund.

(4) From the appropriations described in subsection (1), both

of the following apply:

(a) Subject to section 207a, the amount appropriated for

fiscal year ~~2017-2018~~ 2018-2019 to offset certain fiscal year ~~2017-~~

~~2018~~ 2018-2019 retirement contributions is ~~$1,733,600.00,~~

$1,733,600.00, appropriated from the state school aid fund.

(b) For fiscal year ~~2017-2018~~ 2018-2019 only, there is

allocated an amount not to exceed ~~$3,612,000.00~~ $6,431,000.00 for

payments to participating community colleges, appropriated from the

state school aid fund. A community college that receives money

under this subdivision shall use that money solely for the purpose

of offsetting the normal cost contribution rate.

(5) From the appropriations described in subsection (1),

subject to section 207b, the amount appropriated for payments to

community colleges that are participating entities of the

retirement system is ~~$70,805,000.00,~~ $75,300,000.00, appropriated

from the state school aid fund.

(6) From the appropriations described in subsection (1),

subject to section 207c, the amount appropriated for renaissance

zone tax reimbursements is ~~$3,100,000.00,~~ $2,500,000.00,

appropriated from the state school aid fund.

~~(7) From the appropriations described in subsection (1), there~~

~~is appropriated $1,025,000.00 from general fund/general purpose~~

~~money, for fiscal year 2017-2018 only, to the Michigan Community~~

~~College Association, for the purpose of enhancing the Michigan~~

~~Transfer Network website to improve the transfer of college credit~~

~~among Michigan's postsecondary institutions. The Michigan Community~~

~~College Association shall provide information on request to the~~

~~house and senate subcommittees on community colleges, the house and~~

~~senate fiscal agencies, and the state budget director on the use of~~

~~these funds until the project is completed.~~

Sec. 201a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2019~~

2020 for the items listed in section 201. The fiscal year ~~2018-2019~~

2019-2020 appropriations are anticipated to be the same as those

for fiscal year ~~2017-2018,~~ 2018-2019, except that the amounts will

be adjusted for changes in retirement costs, caseload and related

costs, federal fund match rates, economic factors, and available

revenue. These adjustments will be determined after the January

~~2018~~ 2019 consensus revenue estimating conference.

Sec. 206. (1) The funds appropriated in section 201 are

appropriated for community colleges with fiscal years ending June

30, ~~2018~~ 2019 and shall be paid out of the state treasury and

distributed by the state treasurer to the respective community

colleges in 11 monthly installments on the sixteenth of each month,

or the next succeeding business day, beginning with October 16,

~~2017.~~ 2018. Each community college shall accrue its July and August

~~2018~~ 2019 payments to its institutional fiscal year ending June 30,

~~2018.~~2019.

(2) If the state budget director determines that a community

college failed to submit any of the information described in

subdivisions (a) to (f) in the form and manner specified by the

center, the state treasurer shall, subject to subdivision (g),

withhold the monthly installments from that community college until

those data are submitted:

(a) ~~All verified~~ The Michigan community colleges ~~activities~~

~~classification structure data~~ verified data inventory for the

preceding academic year to the center by November 1 of each year as

specified in section 217.

(b) The college credit opportunity data set as specified in

section 209.

to the center as specified in section 219.

(d) The annual independent audit as specified in section 222.

(e) Tuition and mandatory fees information for the current

academic year as specified in section 225.

(f) The number and type of associate degrees and other

certificates awarded during the previous academic year as specified

in section 226.

(g) The state budget director shall notify the chairs of the

house and senate appropriations subcommittees on community colleges

at least 10 days before withholding funds from any community

college.

Sec. 207a. All of the following apply to the allocation of the

fiscal year ~~2017-2018~~ 2018-2019 appropriations described in section

201(4):

(a) A community college that receives money under section

201(4) shall use that money solely for the purpose of offsetting a

portion of the retirement contributions owed by the college for

that fiscal year.

(b) The amount allocated to each participating community

college under section 201(4) shall be based on each college's

percentage of the total covered payroll for all community colleges

that are participating colleges in the immediately preceding fiscal

year.

Sec. 207b. All of the following apply to the allocation of the

fiscal year ~~2017-2018~~ 2018-2019 appropriations described in section

201(5) for payments to community colleges that are participating

entities of the retirement system:

(a) The amount of a payment under section 201(5) shall be the

difference between the unfunded actuarial accrued liability

contribution rate as calculated under section 41 of the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1341,

as calculated without taking into account the maximum employer rate

of 20.96% included in section 41 of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum

employer rate of 20.96% under section 41 of the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1341.

(b) The amount allocated to each community college under

section 201(5) shall be based on each community college's

percentage of the total covered payroll for all community colleges

that are participating colleges in the immediately preceding fiscal

year. A community college that receives funds under this

subdivision shall use the funds solely for the purpose of

retirement contributions under section 201(5).

section 201(5) shall forward an amount equal to the amount

allocated under subdivision (b) to the retirement system in a form

and manner determined by the retirement system.

Sec. 207c. All of the following apply to the allocation of the

appropriations described in section 201(6) to community colleges

described in section 12(3) of the Michigan renaissance zone act,

1996 PA 376, MCL 125.2692:

(a) The amount allocated to each community college under

section 201(6) for fiscal year ~~2017-2018~~ 2018-2019 shall be based

on that community college's proportion of total revenue lost by

community colleges as a result of the exemption of property taxes

levied in ~~2017~~ 2018 under the Michigan renaissance zone act, 1996

PA 376, MCL 125.2681 to 125.2696.

(b) The appropriations described in section 201(6) shall be

made to each eligible community college within 60 days after the

department of treasury certifies to the state budget director that

it has received all necessary information to properly determine the

amounts payable to each eligible community college under section 12

of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.

Sec. 209. (1) Within 30 days after the board of a community

college adopts its annual operating budget for the following fiscal

year, or after the board adopts a subsequent revision to that

budget, the community college shall make all of the following

available through a link on its website homepage:

(a) The annual operating budget and subsequent budget

revisions.

(b) A link to the most recent ~~"Activities Classification~~

~~Structure Data Book and Companion".~~"Michigan Community College Data

Inventory Report".

current fiscal year and the next fiscal year.

(d) A listing of all debt service obligations, detailed by

project, anticipated ~~fiscal year~~ payment of each project, and total

outstanding debt for the current fiscal year.

(e) Links to all of the following for the community college:

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not

limited to, medical, dental, vision, disability, long-term care, or

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee of the

community college.

(iii) Audits and financial reports for the most recent fiscal

year for which they are available.

(iv) A copy of the board of trustees resolution regarding

compliance with best practices for the local strategic value

component described in section 230(2).

(2) For statewide consistency and public visibility, community

colleges must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each community college's homepage.

The size of the icon may be reduced to 150 x 150 pixels.

(3) The state budget director shall determine whether a

community college has complied with this section. The state budget

director may withhold a community college's monthly installments

described in section 206 until the community college complies with

this section. The state budget director shall notify the chairs of

the house and senate appropriations subcommittee on community

colleges at least 10 days before withholding funds from any

community college.

(4) Each community college shall report the following

information to the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, and the

state budget office by November 15 of each fiscal year and post

that information on its website as required under subsection (1):

(a) Budgeted current fiscal year general fund revenue from

tuition and fees.

(b) Budgeted current fiscal year general fund revenue from

state appropriations.

property taxes.

(d) Budgeted current fiscal year total general fund revenue.

(e) Budgeted current fiscal year total general fund

expenditures.

(5) By November 15 of each year, a community college shall

report the following information to the center and post the

information on its website under the budget transparency icon

badge:

(a) Opportunities for earning college credit through the

following programs:

(i) State approved career and technical education or a tech

prep articulated program of study.

(ii) Direct college credit or concurrent enrollment.

(iii) Dual enrollment.

(iv) An early college/middle college program.

(b) For each program described in subdivision (a) that the

community college offers, all of the following information:

(i) The number of high school students participating in the

program.

(ii) The number of school districts that participate in the

program with the community college.

(iii) Whether a college professor, qualified local school

district employee, or other individual teaches the course or

courses in the program.

(iv) The total cost to the community college to operate the

program.

(v) The cost per credit hour for the course or courses in the

program.

(vi) The location where the course or courses in the program

are held.

(vii) Instructional resources offered to the program

instructors.

(viii) Resources offered to the student in the program.

(ix) Transportation services provided to students in the

program.

Sec. 210b. By March 1, ~~2018,~~ 2019, the Michigan Community

College Association and the Michigan Association of State

Universities shall submit a report to the senate and house

appropriations subcommittees on community colleges, the senate and

house fiscal agencies, and the state budget director on the

activities and programs of the transfer steering committee since

the March 1, ~~2017~~ 2018 report required under this section,

including all of the following:

(a) The alignment of learning outcomes in gateway mathematics

courses in the quantitative reasoning, college algebra, and

statistics pathways and the transferability of mathematics gateway

courses between and among community colleges and universities.

(b) The development of program-specific, statewide transfer

pathways that meet program requirements for both associate and

bachelor's degree programs.

to share information about postsecondary options in Michigan,

course equivalencies, and transfer pathways that are clearly

articulated.

(d) The establishment of clear timelines for developing and

implementing transfer pathways.

(e) A progress report on the implementation of the Michigan

transfer agreement.

Sec. 210f. By February 1, 2019, the Michigan community college

association, the Michigan association of state universities, and

the Michigan independent colleges and universities, on behalf of

their member colleges and universities, shall submit to the senate

and house appropriations subcommittees on higher education, the

senate and house appropriations subcommittees on community

colleges, the senate and house fiscal agencies, and the state

budget director a comprehensive report detailing the number of

academic program partnerships between public community colleges,

public universities, and private colleges and universities,

including, but not limited to, the following information:

(a) The names of the baccalaureate degree programs of study

offered by public and private universities on community college

campuses.

(b) The names of the articulation agreements for baccalaureate

degree programs of study between public community colleges, public

universities, and private colleges and universities.

awarded through articulation agreements, and the number of courses

offered, number of students enrolled, and number of degrees awarded

through on-campus programs named in subdivision (a) from July 1,

2017 through June 30, 2018.

Sec. 215. By October 31, each community college receiving

funds under section 201 shall report to the senate and house

appropriations subcommittees on community colleges, the senate and

house fiscal agencies, and the state budget director its annual

title IX report, also known as the student sexual misconduct

report, issued by the title IX coordinator, as required under the

federal campus SaVE act of 2013, Public Law 113-4, section 304, 127

Stat 54, 89-92 (2013).

Sec. 217. (1) The center shall do all of the following:

(a) Establish, maintain, and coordinate the state community

college database commonly known as the ~~"activities classification~~

~~structure" or "ACS" database.~~"Michigan Community College Data

Inventory".

(b) Collect data concerning community colleges and community

college programs in this state, including data required by law.

reliability of the data and the collection process.

(d) Develop model data collection policies, including, but not

limited to, policies that ensure the privacy of any individual

student data. Privacy policies shall ensure that student social

security numbers are not released to the public for any purpose.

(e) Provide data in a useful manner to allow state

policymakers and community college officials to make informed

policy decisions.

(f) Work with the Talent Investment Agency in the department

of talent and economic development to compile and publish

electronically the Demographic Enrollment Profile.

(2) There is created within the center the ~~activities~~

~~classification structure~~ Michigan Community College Data Inventory

advisory committee. The committee shall provide advice to the

director of the center regarding the management of the state

community college database, including, but not limited to:

(a) Determining what data are necessary to collect and

maintain to enable state and community college officials to make

informed policy decisions.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

accuracy of the data.

(f) Establishing and maintaining policies related to data

collection, including, but not limited to, privacy policies related

to individual student data.

(g) Ensuring that the data are made available to state

policymakers and citizens of this state in the most useful format

possible.

(h) Addressing other matters as determined by the director of

the center or as required by law.

(3) The ~~activities classification structure~~ Michigan Community

College Data Inventory advisory committee created in subsection (2)

shall consist of the following members:

(a) One representative from the house fiscal agency, appointed

by the director of the house fiscal agency.

(b) One representative from the senate fiscal agency,

appointed by the director of the senate fiscal agency.

appointed by the director of the workforce development agency.

(d) One representative from the center appointed by the

director of the center.

(e) One representative from the state budget office, appointed

by the state budget director.

(f) One representative from the governor's policy office,

appointed by that office.

(g) Four representatives of the Michigan Community College

Association, appointed by the president of the association. ~~From~~

~~the groupings of community colleges given in table 17 of the~~

~~activities classification structure database described in~~

~~subsection (1), the association shall appoint 1 representative each~~

~~from group 1, group 2, and group 3, and 1 representative from~~

~~either group 3 or 4.~~

Sec. 225. Each community college shall report to the center by

August 31 of each year the tuition and mandatory fees paid by a

full-time in-district student and a full-time out-of-district

student as established by the college governing board for the

current academic year. ~~This report should also include the annual~~

~~cost of attendance based on a full-time course load of 30 credits.~~

This report must also specify the amount that tuition and fees have

increased for each institution from the prior academic year. Each

community college shall also report any revisions to the reported

current academic year tuition and mandatory fees adopted by the

college governing board to the center within 15 days of being

adopted. The center shall provide this information and any

revisions to the house and senate fiscal agencies and the state

budget director.

Sec. 226. Each community college shall report to the center by

October 15 of each year the numbers and type of associate degrees

and other certificates awarded by the community college during the

previous ~~fiscal~~ academic year ~~. The report shall be made not later~~

~~than November 15 of each year. Community colleges shall work with~~

~~the center to develop a systematic approach for meeting this~~

~~requirement using the P-20 longitudinal data system.~~using the P-20

longitudinal data system.

Sec. 229. (1) Each community college that receives an

appropriation in section 201 is expected to include in its

admission application process a specific question as to whether an

applicant for admission has ever served or is currently serving in

the United States Armed Forces or is the spouse or dependent of an

individual who has served or is currently serving in the United

States Armed Forces, in order to more quickly identify potential

educational assistance available to that applicant.

(2) It is expected that each public community college that

receives an appropriation in section 201 shall work with the house

and senate community college subcommittees, the Michigan Community

College Association, and veterans groups to review the issue of in-

district tuition for veterans of this state when determining

tuition rates and fees.

(3) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, 38 USC 3301 to ~~3325.~~3327.

Sec. 229a. Included in the fiscal year ~~2017-2018~~ 2018-2019

appropriations for the department of technology, management, and

budget are appropriations totaling ~~$30,879,600.00~~ $36,378,100.00 to

provide funding for the state share of costs for previously

constructed capital projects for community colleges. Those

appropriations for state building authority rent represent

additional state general fund support for community colleges, and

the following is an estimate of the amount of that support to each

community college:

(a) Alpena Community College, ~~$630,000.00.~~$876,300.00.

(b) Bay de Noc Community College, ~~$682,400.00.~~$677,000.00.

(d) Glen Oaks Community College, ~~$124,000.00.~~$123,000.00.

(e) Gogebic Community College, ~~$56,400.00.~~$56,000.00.

(f) Grand Rapids Community College,

~~$2,075,300.00.~~$2,536,500.00.

(g) Henry Ford College, ~~$1,036,200.00.~~$1,028,000.00.

(h) Jackson College, ~~$2,264,800.00.~~$2,164,000.00.

(i) Kalamazoo Valley Community College,

~~$1,957,400.00.~~$1,942,000.00.

(j) Kellogg Community College, ~~$524,100.00.~~$681,300.00.

(k) Kirtland Community College, ~~$365,900.00.~~$591,800.00.

(l) Lake Michigan College, ~~$342,700.00.~~$975,800.00.

(m) Lansing Community College, ~~$1,150,000.00.~~$1,141,000.00.

(n) Macomb Community College, ~~$1,662,100.00.~~$1,649,000.00.

(o) Mid Michigan Community College,

~~$1,627,800.00.~~$1,615,000.00.

(p) Monroe County Community College,

~~$1,273,000.00.~~$1,544,300.00.

(q) Montcalm Community College, ~~$978,700.00.~~$971,000.00.

(r) C.S. Mott Community College, ~~$1,817,300.00.~~$2,107,200.00.

(s) Muskegon Community College, ~~$570,500.00.~~$989,000.00.

(t) North Central Michigan College, ~~$416,300.00.~~$668,000.00.

(u) Northwestern Michigan College,

~~$1,315,400.00.~~$1,844,900.00.

(v) Oakland Community College, ~~$468,700.00.~~$465,000.00.

(w) Schoolcraft College, ~~$1,558,300.00.~~$2,296,000.00.

(x) Southwestern Michigan College, ~~$531,700.00.~~$877,500.00.

(y) St. Clair County Community College,

~~$358,800.00.~~$723,500.00.

(z) Washtenaw Community College, ~~$1,689,300.00.~~$1,826,000.00.

(aa) Wayne County Community College,

~~$1,473,600.00.~~$1,462,000.00.

(bb) West Shore Community College, ~~$581,600.00.~~$738,300.00.

Sec. 230. (1) Money included in the appropriations for

community college operations under section 201(2) in fiscal year

~~2017-2018~~ 2018-2019 for performance funding is distributed based on

the following formula:

(a) Allocated proportionate to fiscal year ~~2016-2017~~ 2017-2018

base appropriations, 30%.

(b) Based on a weighted student contact hour formula as

provided for in the 2016 recommendations of the performance

indicators task force, 30%.

the 2016 recommendations of the performance indicators task force,

10%.

(d) Based on the performance completion number as provided for

in the 2016 recommendations of the performance indicators task

force, 10%.

(e) Based on the performance completion rate as provided for

in the 2016 recommendations of the performance indicators task

force, 10%.

(f) Based on administrative costs, 5%.

(g) Based on the local strategic value component, as developed

in cooperation with the Michigan Community College Association and

described in subsection (2), 5%.

(2) Money included in the appropriations for community college

operations under section 201(2) for local strategic value shall be

allocated to each community college that certifies to the state

budget director, through a board of trustees resolution on or

before October 15, ~~2017,~~ 2018, that the college has met 4 out of 5

best practices listed in each category described in subsection (3).

The resolution shall provide specifics as to how the community

college meets each best practice measure within each category. One-

third of funding available under the strategic value component

shall be allocated to each category described in subsection (3).

Amounts distributed under local strategic value shall be on a

proportionate basis to each college's fiscal year ~~2016-2017~~ 2017-

2018 operations funding. Payments to community colleges that

qualify for local strategic value funding shall be distributed with

the November installment payment described in section 206.

(3) For purposes of subsection (2), the following categories

of best practices reflect functional activities of community

colleges that have strategic value to the local communities and

regional economies:

(a) For Category A, economic development and business or

industry partnerships, the following:

(i) The community college has active partnerships with local

employers including hospitals and health care providers.

(ii) The community college provides customized on-site

training for area companies, employees, or both.

(iii) The community college supports entrepreneurship through

a small business assistance center or other training or consulting

activities targeted toward small businesses.

(iv) The community college supports technological advancement

through industry partnerships, incubation activities, or operation

of a Michigan technical education center or other advanced

technology center.

(v) The community college has active partnerships with local

or regional workforce and economic development agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active partnerships with

regional high schools, intermediate school districts, and career-

tech centers to provide instruction through dual enrollment,

concurrent enrollment, direct credit, middle college, or academy

programs.

(ii) The community college hosts, sponsors, or participates in

enrichment programs for area K-12 students, such as college days,

summer or after-school programming, or Science Olympiad.

(iii) The community college provides, supports, or

participates in programming to promote successful transitions to

college for traditional age students, including grant programs such

as talent search, upward bound, or other activities to promote

college readiness in area high schools and community centers.

(iv) The community college provides, supports, or participates

in programming to promote successful transitions to college for new

or reentering adult students, such as adult basic education, a high

school equivalency test preparation program and testing, or

recruiting, advising, or orientation activities specific to adults.

As used in this subparagraph, "high school equivalency test

preparation program" means that term as defined in section 4.

(v) The community college has active partnerships with

regional 4-year colleges and universities to promote successful

transfer, such as articulation, 2+2, or reverse transfer agreements

or operation of a university center.

(i) The community college provides continuing education

programming for leisure, wellness, personal enrichment, or

professional development.

(ii) The community college operates or sponsors opportunities

for community members to engage in activities that promote leisure,

wellness, cultural or personal enrichment such as community sports

teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public facilities to

promote cultural, educational, or personal enrichment for community

members, such as libraries, computer labs, performing arts centers,

museums, art galleries, or television or radio stations.

(iv) The community college operates public facilities to

promote leisure or wellness activities for community members,

including gymnasiums, athletic fields, tennis courts, fitness

centers, hiking or biking trails, or natural areas.

(v) The community college promotes, sponsors, or hosts

community service activities for students, staff, or community

members.

(4) Payments for performance funding under section 201(2)

shall be made to a community college only if that community college

actively participates in the Michigan Transfer Network sponsored by

the Michigan Association of Collegiate Registrars and Admissions

Officers and submits timely updates, including updated course

equivalencies at least every 6 months, to the Michigan transfer

network. The state budget director shall determine if a community

college has not satisfied this requirement. The state budget

director may withhold payments for performance funding until a

community college is in compliance with this section.

Sec. 236. (1) Subject to the conditions set forth in this

article, the amounts listed in this section are appropriated for

higher education for the fiscal year ending September 30, ~~2018,~~

2019, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

(a) The gross appropriation is ~~$1,629,224,400.00.~~

$1,650,317,500.00. After deducting total interdepartmental grants

and intradepartmental transfers in the amount of $0.00, the

adjusted gross appropriation is

~~$1,629,224,400.00.~~$1,650,317,500.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, ~~$111,526,400.00.~~$119,026,400.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$238,443,500.00.~~$385,688,300.00.

(v) State general fund/general purpose money,

~~$1,279,254,500.00.~~$1,145,602,800.00.

(2) Amounts appropriated for public universities are as

follows:

(a) The appropriation for Central Michigan University is

~~$85,654,400.00, $83,925,500.00 for operations and $1,728,900.00 for~~

~~performance funding.~~$86,534,700.00, $85,654,400.00 for operations

and $880,300.00 for performance funding.

(b) The appropriation for Eastern Michigan University is

~~$75,169,900.00, $73,593,800.00 for operations and $1,576,100.00 for~~

~~performance funding.~~$76,074,600.00, $75,169,900.00 for operations

and $904,700.00 for performance funding.

~~$53,595,500.00, $52,259,900.00 for operations and $1,335,600.00 for~~

~~performance funding.~~$54,273,100.00, $53,595,500.00 for operations

and $677,600.00 for performance funding.

(d) The appropriation for Grand Valley State University is

~~$70,100,100.00, $68,227,900.00 for operations and $1,872,200.00 for~~

~~performance funding.~~$71,078,400.00, $70,100,100.00 for operations

and $978,300.00 for performance funding.

(e) The appropriation for Lake Superior State University is

~~$13,775,000.00, $13,567,400.00 for operations and $207,600.00 for~~

~~performance funding.~~$13,881,000.00, $13,775,000.00 for operations

and $106,000.00 for performance funding.

(f) The appropriation for Michigan State University is

~~$344,404,800.00, $275,862,100.00 for operations, $5,377,000.00 for~~

~~performance funding, $33,913,100.00 for MSU AgBioResearch, and~~

~~$29,252,600.00 for MSU Extension.~~$347,554,000.00, $281,239,100.00

for operations, $2,517,600.00 for performance funding,

$34,252,200.00 for MSU AgBioResearch, and $29,545,100.00 for MSU

Extension.

(g) The appropriation for Michigan Technological University is

~~$49,052,200.00, $48,097,500.00 for operations and $954,700.00 for~~

~~performance funding.~~$49,500,900.00, $49,052,200.00 for operations

and $448,700.00 for performance funding.

(h) The appropriation for Northern Michigan University is

~~$47,137,400.00, $46,279,200.00 for operations and $858,200.00 for~~

~~performance funding.~~$47,567,900.00, $47,137,400.00 for operations

and $430,500.00 for performance funding.

(i) The appropriation for Oakland University is

~~$51,235,900.00, $49,920,700.00 for operations and $1,315,200.00 for~~

~~performance funding.~~$52,027,500.00, $51,235,900.00 for operations

and $791,600.00 for performance funding.

(j) The appropriation for Saginaw Valley State University is

~~$29,766,100.00, $29,114,000.00 for operations and $652,100.00 for~~

~~performance funding.~~$30,147,000.00, $29,766,100.00 for operations

and $380,900.00 for performance funding.

(k) The appropriation for University of Michigan – Ann Arbor

is ~~$314,589,100.00, $308,639,000.00 for operations and~~

~~$5,950,100.00 for performance funding.~~$317,685,800.00,

$314,589,100.00 for operations and $3,096,700.00 for performance

funding.

(l) The appropriation for University of Michigan – Dearborn is

~~$25,421,900.00, $24,803,300.00 for operations and $618,600.00 for~~

~~performance funding.~~$25,746,900.00, $25,421,900.00 for operations

and $325,000.00 for performance funding.

(m) The appropriation for University of Michigan – Flint is

~~$23,061,800.00, $22,549,300.00 for operations and $512,500.00 for~~

~~performance funding.~~$23,323,600.00, $23,061,800.00 for operations

and $261,800.00 for performance funding.

(n) The appropriation for Wayne State University is

~~$199,169,800.00, $196,064,500.00 for operations and $3,105,300.00~~

~~for performance funding.~~$200,766,500.00, $199,169,800.00 for

operations and $1,596,700.00 for performance funding.

(o) The appropriation for Western Michigan University is

~~$109,376,800.00, $107,440,900.00 for operations and $1,935,900.00~~

~~for performance funding.~~$110,263,900.00, $109,376,800.00 for

operations and $887,100.00 for performance funding.

(3) The amount appropriated in subsection (2) for public

universities is appropriated from the following:

House Bill No. 5579 as amended April 24, 2018

(a) State school aid fund, ~~$231,219,500.00.~~$379,786,300.00.

(b) State general fund/general purpose money,

~~$1,260,291,200.00.~~ [$1,126,639,500.00].

(4) The amount appropriated for Michigan public school

employees' retirement system reimbursement is ~~$6,705,000.00,~~

$5,133,000.00, appropriated from the state school aid fund.

(5) The amount appropriated for state and regional programs is

$315,000.00, appropriated from general fund/general purpose money

and allocated as follows:

(a) Higher education database modernization and conversion,

$200,000.00.

(b) Midwestern Higher Education Compact, $115,000.00.

(6) The amount appropriated for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated

from general fund/general purpose money and allocated as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program,

$586,800.00.

$148,600.00.

(7) Subject to subsection (8), the amount appropriated for

grants and financial aid is ~~$127,583,200.00,~~ $135,083,200.00,

allocated as follows:

(a) State competitive scholarships,

~~$26,361,700.00.~~$32,361,700.00.

(b) Tuition grants, $38,021,500.00.

(d) Children of veterans and officer's survivor tuition grant

programs, $1,400,000.00.

(e) Project GEAR-UP, $3,200,000.00.

(f) North American Indian tuition waiver, $300,000.00.

(8) The money appropriated in subsection (7) for grants and

financial aid is appropriated from the following:

(a) Federal revenues under the United States Department of

Education, Office of Elementary and Secondary Education, GEAR-UP

program, $3,200,000.00.

(b) Federal revenues under the social security act, temporary

assistance for needy families, ~~$108,326,400.00.~~$115,826,400.00.

program, $100,000.00.

(d) State general fund/general purpose money, $15,956,800.00.

(9) For fiscal year ~~2017-2018~~ 2018-2019 only, in addition to

the allocation under subsection (4), from the appropriations

described in subsection (1), there is allocated an amount not to

exceed ~~$419,000.00~~ $669,000.00 for payments to participating public

universities, appropriated from the state school aid fund. A

university that receives money under this subsection shall use that

money solely for the purpose of offsetting the normal cost

contribution rate. As used in this subsection, "participating

public universities" means public universities that are a reporting

unit of the Michigan public school employees' retirement system

under the public school employees retirement act of 1979, 1980 PA

300, MCL 38.1301 to 38.1437, and that pay contributions to the

Michigan public school employees' retirement system for the state

fiscal year.

Sec. 236a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2019~~

2020 for the items listed in section 236. The fiscal year ~~2018-2019~~

2019-2020 appropriations are anticipated to be the same as those

for fiscal year ~~2017-2018,~~ 2018-2019, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January ~~2018~~ 2019

consensus revenue estimating conference.

Sec. 236b. In addition to the funds appropriated in section

236, there is appropriated for grants and financial aid in fiscal

year ~~2017-2018~~ 2018-2019 an amount not to exceed $6,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred under section 393(2)

of the management and budget act, 1984 PA 431, MCL 18.1393, for

another purpose under this article.

Sec. 236c. In addition to the funds appropriated for fiscal

year ~~2017-2018~~ 2018-2019 in section 236, appropriations to the

department of technology, management, and budget in the act

providing general appropriations for fiscal year ~~2017-2018~~ 2018-

2019 for state building authority rent, totaling an estimated

~~$144,995,300.00,~~ $155,478,500.00, provide funding for the state

share of costs for previously constructed capital projects for

state universities. These appropriations for state building

authority rent represent additional state general fund support

provided to public universities, and the following is an estimate

of the amount of that support to each university:

(a) Central Michigan University,

~~$12,570,900.00.~~$12,936,500.00.

(b) Eastern Michigan University, ~~$5,177,500.00.~~$7,083,900.00.

(d) Grand Valley State University,

~~$7,057,800.00.~~$8,800,000.00.

(e) Lake Superior State University,

~~$1,832,400.00.~~$2,285,800.00.

(f) Michigan State University, ~~$15,500,500.00.~~$16,790,400.00.

(g) Michigan Technological University,

~~$7,225,100.00.~~$6,782,000.00.

(h) Northern Michigan University, ~~$7,786,500.00.~~$7,309,000.00.

(i) Oakland University, ~~$13,492,400.00.~~$12,665,000.00.

(j) Saginaw Valley State University,

~~$10,918,500.00.~~$10,984,000.00.

(k) University of Michigan - Ann Arbor,

~~$10,586,200.00.~~$11,861,000.00.

(l) University of Michigan - Dearborn,

~~$9,581,500.00.~~$10,918,000.00.

(m) University of Michigan - Flint,

~~$4,315,600.00.~~$6,244,800.00.

(n) Wayne State University, ~~$16,378,300.00.~~$16,480,200.00.

(o) Western Michigan University,

~~$15,913,800.00.~~$16,062,900.00.

Sec. 241. (1) Subject to sections 244 and 265a, the funds

appropriated in section 236 to public universities shall be paid

out of the state treasury and distributed by the state treasurer to

the respective institutions in 11 equal monthly installments on the

sixteenth of each month, or the next succeeding business day,

beginning with October 16, ~~2017.~~ 2018. Except for Wayne State

University, each institution shall accrue its July and August ~~2018~~

2019 payments to its institutional fiscal year ending June 30,

~~2018.~~2019.

(2) All public universities shall submit higher education

institutional data inventory (HEIDI) data and associated financial

and program information requested by and in a manner prescribed by

the state budget director. For public universities with fiscal

years ending June 30, ~~2017,~~ 2018, these data shall be submitted to

the state budget director by October 15, ~~2017.~~ 2018. Public

universities with a fiscal year ending September 30, ~~2017~~ 2018

shall submit preliminary HEIDI data by November 15, ~~2017~~ 2018 and

final data by December 15, ~~2017.~~ 2018. If a public university fails

to submit HEIDI data and associated financial aid program

information in accordance with this reporting schedule, the state

treasurer may withhold the monthly installments under subsection

(1) to the public university until those data are submitted.

Sec. 251. (1) Payments of the amounts included in section 236

for the state competitive scholarship program shall be distributed

pursuant to 1964 PA 208, MCL 390.971 to 390.981.

(2) Pursuant to section 6 of 1964 PA 208, MCL 390.976, the

department of treasury shall determine an actual maximum state

competitive scholarship award per student, which shall be not less

than $1,000.00, that ensures that the aggregate payments for the

state competitive scholarship program do not exceed the

appropriation contained in section 236 for the state competitive

scholarship program. If the department determines that insufficient

funds are available to establish a maximum award amount equal to at

least $1,000.00, the department shall immediately report to the

house and senate appropriations subcommittees on higher education,

the house and senate fiscal agencies, and the state budget director

regarding the estimated amount of additional funds necessary to

establish a $1,000.00 maximum award amount.

(3) The department of treasury shall implement a proportional

competitive scholarship maximum award level for recipients enrolled

less than full-time in a given semester or term.

(4) If a student who receives an award under this section has

his or her tuition and fees paid under the Michigan educational

trust program, pursuant to the Michigan education trust act, 1986

PA 316, MCL 390.1421 to 390.1442, and still has financial need, the

funds awarded under this section may be used for educational

expenses other than tuition and fees.

(5) If the department of treasury increases the maximum award

per eligible student from that provided in the previous fiscal

year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards.

(6) Veterans Administration benefits shall not be considered

in determining eligibility for the award of scholarships under 1964

PA 208, MCL 390.971 to 390.981.

(7) Any unexpended and unencumbered funds remaining on

September 30, ~~2018~~ 2019 from the amounts appropriated in section

236 for the state competitive scholarship program for fiscal year

~~2017-2018~~ 2018-2019 do not lapse on September 30, ~~2018,~~ 2019, but

continue to be available for the expenditure for state competitive

scholarships provided in the ~~2018-2019~~ 2019-2020 fiscal year under

a work project account. The use of these unexpended fiscal year

~~2017-2018~~ 2018-2019 funds terminates at the end of the ~~2018-2019~~

2019-2020 fiscal year.

Sec. 252. (1) The amounts appropriated in section 236 for the

state tuition grant program shall be distributed pursuant to 1966

PA 313, MCL 390.991 to 390.997a.

(2) Tuition grant awards shall be made to all eligible

Michigan residents enrolled in undergraduate degree programs who

are qualified and who apply before ~~July 1, 2017 for the 2017-2018~~

~~academic year. Beginning with the 2018-2019 academic year, tuition~~

~~grant awards shall be made to all eligible Michigan residents~~

~~enrolled in undergraduate degree programs who are qualified and who~~

~~apply before~~ March 1 of each year for the next academic year.

~~(3) Beginning with the 2018-2019 academic year, a tuition~~

~~grant may be renewed for not more than 10 semesters or its~~

~~equivalent in trimesters or quarters of undergraduate education, or~~

~~if an eligible applicant has not completed using the grant within~~

~~10 years after his or her eligibility is determined, whichever~~

~~occurs first. The department shall determine an equivalent to 10~~

~~semesters or its equivalent in trimesters or quarters of~~

~~undergraduate education for less than full-time but more than half-~~

~~time students.~~

(3) ~~(4)~~ Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

subject to subsections ~~(8)~~ (7) and ~~(9),~~ (8), the department of

treasury shall determine an actual maximum tuition grant award per

student, which shall be no less than ~~$2,000.00,~~ $2,300.00, that

ensures that the aggregate payments for the tuition grant program

do not exceed the appropriation contained in section 236 for the

state tuition grant program. If the department determines that

insufficient funds are available to establish a maximum award

amount equal to at least ~~$2,000.00,~~ $2,300.00, the department shall

immediately report to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director regarding the estimated

amount of additional funds necessary to establish a ~~$2,000.00~~

$2,300.00 maximum award amount. If the department determines that

sufficient funds are available to establish a maximum award amount

equal to at least ~~$2,000.00,~~ $2,300.00, the department shall

immediately report to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director regarding the maximum award

amount established and the projected amount of any projected year-

end appropriation balance based on that maximum award amount. By

February 18 of each fiscal year, the department shall analyze the

status of award commitments, shall make any necessary adjustments,

and shall confirm that those award commitments will not exceed the

appropriation contained in section 236 for the tuition grant

program. The determination and actions shall be reported to the

state budget director and the house and senate fiscal agencies no

later than the final day of February of each year. If award

adjustments are necessary, the students shall be notified of the

adjustment by March 4 of each year.

(4) ~~(5)~~ Any unexpended and unencumbered funds remaining on

September 30, ~~2018~~ 2019 from the amounts appropriated in section

236 for the tuition grant program for fiscal year ~~2017-2018~~ 2018-

2019 do not lapse on September 30, ~~2018,~~ 2019, but continue to be

available for expenditure for tuition grants provided in the ~~2018-~~

~~2019~~ 2019-2020 fiscal year under a work project account. The use of

these unexpended fiscal year ~~2017-2018~~ 2018-2019 funds terminates

at the end of the ~~2018-2019~~ 2019-2020 fiscal year.

(5) ~~(6)~~ The department of treasury shall continue a

proportional tuition grant maximum award level for recipients

enrolled less than full-time in a given semester or term.

(6) ~~(7)~~ If the department of treasury increases the maximum

award per eligible student from that provided in the previous

fiscal year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards for that

fiscal year.

(7) ~~(8)~~ Except as provided in subsection ~~(5),~~ (4), the

department of treasury shall not award more than ~~$3,500,000.00~~

$4,200,000.00 in tuition grants to eligible students enrolled in

the same independent nonprofit college or university in this state.

Any decrease in the maximum grant shall be proportional for all

eligible students enrolled in that college or university, as

determined by the department.

(8) ~~(9)~~ The department of treasury shall not award tuition

grants to otherwise eligible students enrolled in an independent

college or university that does not report, in a form and manner

directed by and satisfactory to the department of treasury, by

October 31 of each year, all of the following:

(a) The number of students in the most recently completed

academic year who in any academic year received a state tuition

grant at the reporting institution and successfully completed a

program or graduated.

(b) The number of students in the most recently completed

academic year who in any academic year received a state tuition

grant at the reporting institution and took a remedial education

class.

academic year who in any academic year received a Pell grant at the

reporting institution and successfully completed a program or

graduated.

(9) ~~(10)~~ By February 1, ~~2018,~~ 2019, each independent college

and university participating in the tuition grant program shall

report to the senate and house appropriations subcommittees on

higher education, the senate and house fiscal agencies, and the

state budget director on its efforts to develop and implement

sexual assault response training for the institution's title IX

coordinator, campus law enforcement personnel, campus public safety

personnel, and any other campus personnel charged with responding

to on-campus incidents, including information on sexual assault

response training materials and the status of implementing sexual

assault response training for institutional personnel.

Sec. 256. (1) The funds appropriated in section 236 for the

tuition incentive program shall be distributed as provided in this

section and pursuant to the administrative procedures for the

tuition incentive program of the department of treasury.

(2) As used in this section:

(a) "Phase I" means the first part of the tuition incentive

program defined as the academic period of 80 semester or 120 term

credits, or less, leading to an associate degree or certificate.

Students must be enrolled in a certificate or associate degree

program and taking classes within the program of study for a

certificate or associate degree. Tuition will not be covered for

courses outside of a certificate or associate degree program.

(b) "Phase II" means the second part of the tuition incentive

program which provides assistance in the third and fourth ~~year~~

years of 4-year degree programs.

(d) "High school equivalency certificate" means that term as

defined in section 4.

(3) An individual shall meet the following basic criteria and

financial thresholds to be eligible for tuition incentive program

benefits:

(a) To be eligible for phase I, an individual shall meet all

of the following criteria:

(i) Apply for certification to the department any time after

he or she begins the sixth grade but before August 31 of the school

year in which he or she graduates from high school or before

achieving a high school equivalency certificate.

(ii) Be less than 20 years of age at the time he or she

graduates from high school with a diploma or certificate of

completion or achieves a high school equivalency certificate or,

for students attending a 5-year middle college approved by the

Michigan department of education, be less than 21 years of age when

he or she graduates from high school.

(iii) Be a United States citizen and a resident of this state

according to institutional criteria.

(iv) Be at least a half-time student, earning less than 80

semester or 120 term credits at a participating educational

institution within 4 years of high school graduation or achievement

of a high school equivalency certificate. All program eligibility

expires 6 years from high school graduation or achievement of a

high school equivalency certificate.

(v) Meet the satisfactory academic progress policy of the

educational institution he or she attends.

(b) To be eligible for phase II, an individual shall meet

either of the following criteria in addition to the criteria in

subdivision (a):

(i) Complete at least 56 transferable semester or 84

transferable term credits.

(ii) Obtain an associate degree or certificate at a

participating institution.

not be incarcerated and must be financially eligible as determined

by the department. An individual is financially eligible for the

tuition incentive program if he or she was eligible for Medicaid

from this state for 24 months within the 36 consecutive months

before application. The department shall accept certification of

Medicaid eligibility only from the department of health and human

services for the purposes of verifying if a person is Medicaid

eligible for 24 months within the 36 consecutive months before

application. Certification of eligibility may begin in the sixth

grade. As used in this subdivision, "incarcerated" does not include

detention of a juvenile in a state-operated or privately operated

juvenile detention facility.

(4) ~~Beginning in fiscal year 2017-2018, the~~ The department

shall not award more than ~~$8,500,000.00~~ $10,000,000.00 annually in

tuition incentive program funds to eligible students enrolled in

the same college or university in this state. Students who have

received tuition incentive program funds in the current academic

year shall be given priority in receiving program funds for the

upcoming academic year.

(5) For phase I, the department shall provide payment on

behalf of a person eligible under subsection (3). The department

shall only accept standard per-credit hour tuition billings and

shall reject billings that are excessive or outside the guidelines

for the type of educational institution.

(6) For phase I, all of the following apply:

(a) Payments for associate degree or certificate programs

shall not be made for more than 80 semester or 120 term credits for

any individual student at any participating institution.

(b) For persons enrolled at a Michigan community college, the

department shall pay the current in-district tuition and mandatory

fees. For persons residing in an area that is not included in any

community college district, the out-of-district tuition rate may be

authorized.

~~Michigan public university, the department shall pay lower division~~

~~resident tuition and mandatory fees for the current year. Beginning~~

~~in fiscal year~~ 2018-2019, for persons enrolled at a Michigan public

university, the department shall pay mandatory fees for the current

year and a per-credit payment that does not exceed 3 times the

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

reported on August 1 for the immediately preceding academic year.

(d) For persons enrolled at a Michigan independent, nonprofit

degree-granting college or university, or a Michigan federal

tribally controlled community college, or Focus: HOPE, the

department shall pay mandatory fees for the current year and a per-

credit payment that does not exceed the average community college

in-district per-credit tuition rate as reported on August 1, for

the immediately preceding academic year.

(7) A person participating in phase II may be eligible for

additional funds not to exceed $500.00 per semester or $400.00 per

term up to a maximum of $2,000.00 subject to the following

conditions:

(a) Credits are earned in a 4-year program at a Michigan

degree-granting 4-year college or university.

(b) The tuition reimbursement is for coursework completed

within 30 months of completion of the phase I requirements.

(8) The department shall work closely with participating

institutions to 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.

(9) Applications for the tuition incentive program may be

approved at any time after the student begins the sixth grade. If a

determination of financial eligibility is made, that determination

is valid as long as the student meets all other program

requirements and conditions.

(10) Each institution shall ensure that all known available

restricted grants for tuition and fees are used prior to billing

the tuition incentive program for any portion of a student's

tuition and fees.

(11) The department shall ensure that the tuition incentive

program is well publicized and that eligible Medicaid clients are

provided information on the program. The department shall provide

the necessary funding and staff to fully operate the program.

(12) Any unexpended and unencumbered funds remaining on

September 30, ~~2018~~ 2019 from the amounts appropriated in section

236 for the tuition incentive program for fiscal year ~~2017-2018~~

2018-2019 do not lapse on September 30, ~~2018,~~ 2019, but continue to

be available for expenditure for tuition incentive program funds

provided in the ~~2018-2019~~ 2019-2020 fiscal year under a work

project account. The use of these unexpended fiscal year ~~2017-2018~~

2018-2019 funds terminates at the end of the ~~2018-2019~~ 2019-2020

fiscal year.

(13) The department of treasury shall collaborate with the

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

following information for each qualified postsecondary institution:

(a) The number of phase I students in the most recently

completed academic year who in any academic year received a tuition

incentive program award and who successfully completed a degree or

certificate program. Cohort graduation rates for phase I students

shall be calculated using the established success rate methodology

developed by the center in collaboration with the postsecondary

institutions.

(b) The number of students in the most recently completed

academic year who in any academic year received a Pell grant at the

reporting institution and who successfully completed a degree or

certificate program. Cohort graduation rates for students who

received Pell grants shall be calculated using the established

success rate methodology developed by the center in collaboration

with the postsecondary institutions.

~~(14) If a qualified postsecondary institution does not report~~

~~the data necessary to comply with subsection (13) to the P-20~~

~~longitudinal data system, the institution shall report, in a form~~

~~and manner satisfactory to the department of treasury and the~~

~~center, all of the information needed to comply with subsection~~

~~(13) by December 1, 2017.~~

(14) ~~(15)~~ Beginning in fiscal year 2018-2019, if a qualified

postsecondary institution does not report the data necessary to

complete the reporting in subsection (13) to the P-20 longitudinal

data system by October 15 for the prior academic year, the

department of treasury shall not award phase I tuition incentive

program funding to otherwise eligible students enrolled in that

institution until the data are submitted.

Sec. 263. (1) Included in the appropriation in section 236 for

fiscal year ~~2017-2018~~ 2018-2019 for MSU AgBioResearch is

$2,982,900.00 and included in the appropriation in section 236 for

MSU Extension is $2,645,200.00 for Project GREEEN. Project GREEEN

is intended to address critical regulatory, food safety, economic,

and environmental problems faced by this state's plant-based

agriculture, forestry, and processing industries. "GREEEN" is an

acronym for Generating Research and Extension to Meet Environmental

and Economic Needs.

(2) The department of agriculture and rural development and

Michigan State University, in consultation with agricultural

commodity groups and other interested parties, shall develop

Project GREEEN and its program priorities.

Sec. 264. Included in the appropriation in section 236 for

fiscal year ~~2017-2018~~ 2018-2019 for Michigan State University is

$80,000.00 for the Michigan Future Farmers of America Association.

This $80,000.00 allocation shall not supplant any existing support

that Michigan State University provides to the Michigan Future

Farmers of America Association.

Sec. 265. (1) Payments under section 265a for performance

funding shall only be made to a public university that certifies to

the state budget director by August 31, ~~2017~~ 2018 that its board

did not adopt an increase in tuition and fee rates for resident

undergraduate students after September 1, ~~2016~~ 2017 for the ~~2016-~~

~~2017~~ 2017-2018 academic year and that its board will not adopt an

increase in tuition and fee rates for resident undergraduate

students for the ~~2017-2018~~ 2018-2019 academic year that is greater

than 3.8% or ~~$475.00,~~ $490.00, whichever is greater. As used in

this subsection:

(a) "Fee" means any board-authorized fee that will be paid by

more than 1/2 of all resident undergraduate students at least once

during their enrollment at a public university, as described in the

higher education institutional data inventory (HEIDI) user manual.

A university increasing a fee that applies to a specific subset of

students or courses shall provide sufficient information to prove

that the increase applied to that subset will not cause the

increase in the average amount of board-authorized total tuition

and fees paid by resident undergraduate students in the ~~2017-2018~~

2018-2019 academic year to exceed the limit established in this

subsection.

(b) "Tuition and fee rate" means the average of full-time

rates paid by a majority of students in each undergraduate class,

based on an unweighted average of the rates authorized by the

university board and actually charged to students, deducting any

uniformly rebated or refunded amounts, for the 2 semesters with the

highest levels of full-time equated resident undergraduate

enrollment during the academic year, as described in the higher

education institutional data inventory (HEIDI) user manual.

that compels resident undergraduate students to be covered by

health insurance as a condition to enroll at the university, "fee"

includes the annual amount a student is charged for coverage by the

university-affiliated group health insurance policy if he or she

does not provide proof that he or she is otherwise covered by

health insurance. This subdivision does not apply to limited

subsets of resident undergraduate students to be covered by health

insurance for specific reasons other than general enrollment at the

university.

(2) The state budget director shall implement uniform

reporting requirements to ensure that a public university receiving

a payment under section 265a for performance funding has satisfied

the tuition restraint requirements of this section. The state

budget director shall have the sole authority to determine if a

public university has met the requirements of this section.

Information reported by a public university to the state budget

director under this subsection shall also be reported to the house

and senate appropriations subcommittees on higher education and the

house and senate fiscal agencies.

(3) Universities that exceed the tuition and fee rate cap

described in subsection (1) shall not receive a planning or

construction authorization for a state-funded capital outlay

project in fiscal year ~~2018-2019~~ 2019-2020 or fiscal year ~~2019-~~

~~2020.~~2020-2021.

(4) Notwithstanding any other provision of this act, the

legislature may at any time adjust appropriations for a university

that adopts an increase in tuition and fee rates for resident

undergraduate students that exceeds the rate cap established in

subsection (1).

Sec. 265a. (1) Appropriations to public universities in

section 236 for fiscal year ~~2017-2018~~ 2018-2019 for performance

funding shall be paid only to a public university that complies

with section 265 and certifies to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies by August 31, ~~2017~~ 2018

that it complies with all of the following requirements:

(a) The university participates in reverse transfer agreements

described in section 286 with at least 3 Michigan community

colleges.

(b) The university does not and will not consider whether dual

enrollment credits earned by an incoming student were utilized

towards his or her high school graduation requirements when making

a determination as to whether those credits may be used by the

student toward completion of a university degree or certificate

program.

updates to the Michigan Transfer Network created as part of the

Michigan Association of Collegiate Registrars and Admissions

Officers transfer agreement.

(2) Any performance funding amounts under section 236 that are

not paid to a public university because it did not comply with 1 or

more requirements under subsection (1) are unappropriated and

reappropriated for performance funding to those public universities

that meet the requirements under subsection (1), distributed in

proportion to their performance funding appropriation amounts under

section 236.

(3) The state budget director shall report to the house and

senate appropriations subcommittees on higher education and the

house and senate fiscal agencies by September 30, ~~2017,~~ 2018,

regarding any performance funding amounts that are not paid to a

public university because it did not comply with 1 or more

requirements under subsection (1) and any reappropriation of funds

under subsection (2).

(4) Performance funding amounts described in section 236 are

distributed based on the following formula:

(a) Proportional to each university's share of total

operations funding appropriated in fiscal year 2010-2011, 50%.

(b) Based on weighted undergraduate completions in critical

skills areas, 11.1%.

universities classified in Carnegie classifications as doctoral

universities: moderate research activity, doctoral universities:

higher research activity, or doctoral universities: highest

research activity only, 5.6%.

(d) Based on 6-year graduation rate, total degree completions,

and institutional support as a percentage of core expenditures, and

the percentage of students receiving Pell grants, scored against

national Carnegie classification peers and weighted by total

undergraduate fiscal year equated students, 33.3%.

(5) For purposes of determining the score of a university

under subsection (4)(d), each university is assigned 1 of the

House Bill No. 5579 as amended April 24, 2018

following scores:

(a) A university classified as in the top 20%, a score of 3.

(b) A university classified as above national median, a score

of 2.

the intent of the legislature that, beginning in the ~~2018-2019~~

2019-2020 state fiscal year, a university classified as improving

is assigned a score of 1.

(d) A university that is not included in subdivision (a), (b),

or (c), a score of 0.

(6) As used in this section, "Carnegie classification" means

the basic classification of the university according to the most

recent version of the Carnegie classification of institutions of

higher education, published by the Carnegie Foundation for the

Advancement of Teaching.

(7) It is the intent of the legislature to allocate more

funding based on performance metrics in future years.

[Sec. 265b. (1) Appropriations to public universities in section

236 for fiscal year 2018-2019 for operations funding shall be reduced by

10% for a public university that fails to comply with sections 274c and

274d or fails to certify to the state budget director, the house and

senate appropriations subcommittees on higher education, and the house

and senate fiscal agencies by August 31, 2018 that it complies with all

of the following requirements:

(A) For title IX investigations of alleged sexual misconduct, the

university prohibits the use of medical experts that have an actual or

apparent conflict of interest.

House Bill No. 5579 as amended April 24, 2018

(b) For title IX investigations of alleged sexual misconduct, the

university prohibits the issuance of divergent reports to complainants,

respondents, and administration and instead requires that identical

reports be issued to them.

university requires that complainants be informed of their right to

notify the appropriate law enforcement agency while the investigation is

ongoing. The university shall ensure that every complainant is made aware

of this right by obtaining the complainant's signature on a form

designated by the university indicating that the university has informed

the complainant of his or her right to notify the appropriate law

enforcement agency.

(d) The university provides both of the following:

(i) For all freshmen and incoming transfer students enrolled, an in-

person sexual misconduct prevention presentation or course, which must

include contact information for the title IX office of the university.

(ii) For all students not considered freshmen or incoming transfer

students, an online or electronic sexual misconduct prevention

presentation or course.

(e) The university prohibits seeking compensation from the

recipient of any medical procedure, treatment, or care provided by a

medical professional who has been convicted of a felony arising out of

the medical procedure, treatment, or care.

(f) The university has or plans to have a third party review its

title IX compliance office and related policies and procedures by the end

of the 2018-2019 academic year.

(g) The university requires that a summary of all title IX reports

House Bill No. 5579 as amended April 24, 2018

of completed investigations of complaints against employees of the university, including, but not limited to, the aggregate number of title

IX reports of completed investigations of complaints against employees,

be provided to the governing body of the university. A member of the

governing body may request to review a title IX investigation report

involving a complaint against an employee, and the university shall

provide the report in a manner it considers appropriate. The university

shall protect the complainant's anonymity.

(h) The university requires that a third-party title IX

investigation or third-party review of its investigation take place if an

employee is the subject of more than 1 title IX complaint that resulted

in a finding of no misconduct. A third-party title IX investigation under

this subdivision does not prohibit the university from simultaneously

conducting its own title IX investigation through its own title IX coordinator.

(2) Each public university that receives an appropriation in section 236 shall also certify that its president or chancellor and a member of its governing body has reviewed all title IX reports involving the alleged sexual misconduct of an employee of the university, and shall send the certification to the house and senate appropriations subcommittees on higher education, the house and senate fiscal agencies, and the state budget director by August 31, 2018.

(3) For purposes of this section, "sexual misconduct" includes, but is not limited to, any of the following:

(a) Intimate partner violence.

(b) Nonconsensual sexual conduct.

(d) Sexual exploitation.

(e) Sexual harassment.

(f) Stalking.]

Sec. 265c. By February 1, 2019 [

], the Michigan Community College Association, the

Michigan Association of State Universities, and the Michigan

Independent Colleges and Universities, on behalf of their member

colleges and universities, shall submit to the senate and house

appropriations subcommittees on higher education, the senate and

house appropriations subcommittees on community colleges, the

senate and house fiscal agencies, and the state budget director a

comprehensive report detailing the number of academic program

partnerships between public community colleges, public

universities, and private colleges and universities, including, but

not limited to, the following information:

House Bill No. 5579 as amended April 24, 2018

(a) The names of the baccalaureate degree programs of study

offered by public and private universities on community college

campuses.

(b) The names of the articulation agreements for baccalaureate

degree programs of study between public community colleges, public

universities, and private colleges and universities.

awarded through articulation agreements, and the number of courses

offered, number of students enrolled, and number of degrees awarded

through on-campus programs named in subdivision (a) from July 1,

2017 through June 30, 2018.

[Sec. 265d. The legislature encourages each public university that

receives an appropriation in section 236 to enter into a memorandum of understanding with at least 1 local law enforcement agency with jurisdiction on or around campus for the communication and coordination of responses to incidents of sexual assault. The form and content of the memorandum of understanding should be determined by agreement between the university and any participating law enforcement agencies. It is recommended that the memorandum of understanding include at least all of the following:

(a) Guidelines for proper communication and coordination of responses to incidents of reported sexual assault, including, but not limited to, guidelines aimed at ensuring the fair and sensitive treatment of complainants and respondents.

(b) Procedures for filing a complaint of sexual assault with the public university.

(c) Information about local and campus resources for victims of sexual assault, including counseling, medical, and legal services.

(d) Specific details concerning how local law enforcement will inform the public university about reports of sexual assault it receives involving students, faculty, or staff and a general time frame for how long it will take local law enforcement to conduct any investigation.

(e) Procedures for sharing information, including information concerning recent trends and strategies to prevent sexual assault, such as trauma-informed investigation practices that encourage reporting.]

Sec. 267. All public universities shall submit the amount of

tuition and fees actually charged to a full-time resident

undergraduate student for academic year ~~2017-2018~~ 2018-2019 as part

of their higher education institutional data inventory (HEIDI) data

by August 31 of each year. A public university shall report any

revisions for any semester of the reported academic year ~~2017-2018~~

2018-2019 tuition and fee charges to HEIDI within 15 days of being

adopted.

Sec. 268. (1) For the fiscal year ending September 30, ~~2018,~~

2019, it is the intent of the legislature that funds be allocated

for unfunded North American Indian tuition waiver costs incurred by

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

from the general fund.

(2) Appropriations in section 236(7)(f) for North American

Indian tuition waivers shall be paid to universities under section

2a of 1976 PA 174, MCL 390.1252a. Allocations shall be adjusted for

amounts included in university operations appropriations. If funds

are insufficient to support the entire cost of waivers, amounts

shall be prorated proportionate to each institution's shortfall as

a percentage of its fiscal year ~~2017-2018~~ 2018-2019 state

appropriation for operations.

(3) By February 15 of each year, the department of civil

rights shall annually submit to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies a report on North American

Indian tuition waivers for the preceding academic year that

includes, but is not limited to, all of the following information:

(a) The number of waiver applications received and the number

of waiver applications approved.

(b) For each university submitting information under

subsection (4), all of the following:

(i) The number of graduate and undergraduate North American

Indian students enrolled each term for the previous academic year.

(ii) The number of North American Indian waivers granted each

term, including to continuing education students, and the monetary

value of the waivers for the previous academic year.

(iii) The number of graduate and undergraduate students

attending under a North American Indian tuition waiver who withdrew

from the university each term during the previous academic year.

For purposes of this subparagraph, a withdrawal occurs when a

student who has been awarded the waiver withdraws from the

institution at any point during the term, regardless of enrollment

in subsequent terms.

(iv) The number of graduate and undergraduate students

attending under a North American Indian tuition waiver who

successfully complete a degree or certificate program, separated by

degree or certificate level, and the graduation rate for graduate

and undergraduate students attending under a North American Indian

tuition waiver who complete a degree or certificate within 150% of

the normal time to complete, separated by the level of the degree

or certificate.

(4) A public university that receives funds under section 236

shall provide to the department of civil rights any information

necessary for preparing the report detailed in subsection (3),

using guidelines and procedures developed by the department of

civil rights.

(5) The department of civil rights may consolidate the report

required under this section with the report required under section

223, but a consolidated report must separately identify data for

universities and data for community colleges.

Sec. 269. For fiscal year ~~2017-2018,~~ 2018-2019, from the

amount appropriated in section 236 to Central Michigan University

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 270. For fiscal year ~~2017-2018,~~ 2018-2019, from the

amount appropriated in section 236 to Lake Superior State

University for operations, $100,000.00 shall be paid to Bay Mills

Community College for the costs of waiving tuition for North

American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 274. It is the intent of the legislature that public and

private organizations that conduct human embryonic stem cell

derivation subject to section 27 of article I of the state

constitution of 1963 will provide information to the director of

the department of health and human services by December 1, ~~2017~~

2018 that includes all of the following:

(a) Documentation that the organization conducting human

embryonic stem cell derivation is conducting its activities in

compliance with the requirements of section 27 of article I of the

state constitution of 1963 and all relevant National Institutes of

Health guidelines pertaining to embryonic stem cell derivation.

(b) A list of all human embryonic stem cell lines submitted by

the organization to the National Institutes of Health for inclusion

in the Human Embryonic Stem Cell Registry before and during fiscal

year ~~2016-2017,~~ 2017-2018, and the status of each submission as

approved, pending approval, or review completed but not yet

accepted.

submitted for inclusion in the Human Embryonic Stem Cell Registry,

before and during fiscal year ~~2016-2017.~~2017-2018.

Sec. 274c. By February 1, ~~2018,~~ 2019, each university

receiving funds under section 236 shall report to the senate and

house appropriations subcommittees on higher education, the senate

and house fiscal agencies, and the state budget director on its

efforts to develop and implement sexual assault response training

for the university's title IX coordinator, campus law enforcement

personnel, campus public safety personnel, and any other campus

House Bill No. 5579 as amended April 24, 2018

personnel charged with responding to on-campus incidents, including

information on sexual assault response training materials and the

status of implementing sexual assault response training for campus

personnel.

Sec. 274d. (1) By October 31, each university receiving funds

under section 236 shall report to the senate and house

appropriations subcommittees on higher education, the senate and

house fiscal agencies, ~~and~~ the state budget director, the attorney

general, the department of civil rights, and the relevant county

sheriff its annual title IX report, also known as the student

sexual misconduct report, issued by the title IX coordinator, as

required under the federal campus save act of 2013, Public Law 113-

4, section 304, 127 , Stat 54, 89-92 (2013).

[(2) For purposes of the report required in subsection (1), each

university shall include a title IX summary report that includes all of

the following information:

(A) The amounts and descriptions of all fees incurred in title IX-

related civil and criminal litigation.

(b) The number of title IX complaints.

(d) The aggregate number of title IX cases, investigations, and complaints for each of the following categories:

(i) Cases investigated for less than 15 days.

(ii) Cases investigated for at least 15 days and less than 30 days.

(iii) Cases investigated for at least 30 days and less than 60 days.

(iv) Cases investigated for at least 60 days and less than 90 days.

(v) Cases investigated for 90 days or more.

(e) The number of title IX appeals and the resolutions of those appeals.

(f) The number of title IX-related complaints filed by the university with law enforcement agencies.]

Sec. 274e. The auditor general shall conduct an audit of the

title IX operations of each public university that receives

operations funding under section 236 at least once every 3 years.

Sec. 274f. (1) Funding is provided within the department of

state police budget for the sexual assault prevention and education

initiative. This funding shall be used to provide and administer

grants to public or nonpublic community colleges, colleges, and

universities with a physical presence in this state to address the

campus sexual assault issue and to improve the safety and security

of students, faculty, and staff in campus environments in this

state.

(2) An award of grant funds described in subsection (1) shall

be used to support sexual assault programs, including education,

awareness, prevention, reporting, and bystander-intervention

programs; peer advocacy groups that are student-run organizations

dedicated to safety on campuses and eliminating the silence on

campuses related to sexual assault; and other actions covered by

title IX protections.

Sec. 276. (1) Included in the appropriation for fiscal year

~~2017-2018~~ 2018-2019 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

future faculty program that is intended to increase the pool of

academically or economically disadvantaged candidates pursuing

faculty teaching careers in postsecondary education. Preference may

not be given to applicants on the basis of race, color, ethnicity,

gender, or national origin. Institutions should encourage

applications from applicants who would otherwise not adequately be

represented in the graduate student and faculty populations. Each

public university shall apply the percentage change applicable to

every public university in the calculation of appropriations in

section 236 to the amount of funds allocated to the future faculty

program.

(2) The program shall be administered by each public

university in a manner prescribed by the workforce development

agency. The workforce development agency shall use a good faith

effort standard to evaluate whether a fellowship is in default.

Sec. 277. (1) Included in the appropriation for fiscal year

~~2017-2018~~ 2018-2019 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

college day program that is intended to introduce academically or

economically disadvantaged schoolchildren to the potential of a

college education. Preference may not be given to participants on

the basis of race, color, ethnicity, gender, or national origin.

Public universities should encourage participation from those who

would otherwise not adequately be represented in the student

population.

(2) Individual program plans of each public university shall

include a budget of equal contributions from this program, the

participating public university, the participating school district,

and the participating independent degree-granting college. College

day funds shall not be expended to cover indirect costs. Not more

than 20% of the university match shall be attributable to indirect

costs. Each public university shall apply the percentage change

applicable to every public university in the calculation of

appropriations in section 236 to the amount of funds allocated to

the college day program.

(3) The program described in this section shall be

administered by each public university in a manner prescribed by

the workforce development agency.

Sec. 278. (1) Included in section 236 for fiscal year ~~2017-~~

~~2018~~ 2018-2019 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks select student support services program for

developing academically or economically disadvantaged student

retention programs for 4-year public and independent educational

institutions in this state. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

student population.

(2) An award made under this program to any 1 institution

shall not be greater than $150,000.00, and the amount awarded shall

be matched on a 70% state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 279. (1) Included in section 236 for fiscal year ~~2017-~~

~~2018~~ 2018-2019 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks college/university partnership program between

4-year public and independent colleges and universities and public

community colleges, which is intended to increase the number of

academically or economically disadvantaged students who transfer

from community colleges into baccalaureate programs. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Institutions should

encourage participation from those who would otherwise not

adequately be represented in the transfer student population.

(2) The grants shall be made under the program described in

this section to Michigan public and independent colleges and

universities. An award to any 1 institution shall not be greater

than $150,000.00, and the amount awarded shall be matched on a 70%

state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 280. (1) Included in the appropriation for fiscal year

~~2017-2018~~ 2018-2019 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

visiting professors program which is intended to increase the

number of instructors in the classroom to provide role models for

academically or economically disadvantaged students. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Public universities should

encourage participation from those who would otherwise not

adequately be represented in the student population.

(2) The program described in this section shall be

administered by the workforce development agency.

Sec. 281. (1) Included in the appropriation for fiscal year

~~2017-2018~~ 2018-2019 in section 236 is funding under the Martin

Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the

Morris Hood, Jr. educator development program which is intended to

increase the number of academically or economically disadvantaged

students who enroll in and complete K-12 teacher education programs

at the baccalaureate level. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

teacher education student population.

(2) The program described in this section shall be

administered by each state-approved teacher education institution

in a manner prescribed by the workforce development agency.

(3) Approved teacher education institutions may and are

encouraged to use student support services funding in coordination

with the Morris Hood, Jr. funding to achieve the goals of the

program described in this section.

Sec. 282. Each institution receiving funds for fiscal year

~~2017-2018~~ 2018-2019 under section 278, 279, or 281 shall provide to

the workforce development agency by April 15, ~~2018~~ 2019 the

unobligated and unexpended funds as of March 31, ~~2018~~ 2019 and a

plan to expend the remaining funds by the end of the fiscal year.

Notwithstanding the award limitations in sections 278 and 279, the

amount of funding reported as not being expended will be

reallocated to the institutions that intend to expend all funding

received under section 278, 279, or 281.

Sec. 289. (1) The auditor general shall ~~periodically~~ not less

than every 4 years audit higher education institutional data

inventory (HEIDI) data submitted by all public universities under

section 241 and may perform audits of selected public universities

if determined necessary. The audits shall be based upon the

definitions, requirements, and uniform reporting categories

established by the state budget director in consultation with the

HEIDI advisory committee. The auditor general shall submit a report

of findings to the house and senate appropriations committees and

the state budget director no later than July 1 of each year an

audit takes place.

(2) Student credit hours reports shall not include the

following:

(a) Student credit hours generated through instructional

activity by faculty or staff in classrooms located outside

Michigan, with the exception of instructional activity related to

study-abroad programs or field programs.

(b) Student credit hours generated through distance learning

instruction for students not eligible for the public university's

in-state main campus resident tuition rate. However, in instances

where a student is enrolled in distance education and non-distance

education credit hours in a given term and the student's non-

distance education enrollment is at a campus or site located within

Michigan, student credit hours per the student's eligibility for

in-state or out-of-state tuition rates may be reported.

examination.

(d) Student credit hours generated through inmate prison

programs regardless of teaching location.

(e) Student credit hours generated in new degree programs

created on or after January 1, 1975 and before January 1, 2013,

that were not specifically authorized for funding by the

legislature, except spin-off programs converted from existing core

programs, and student credit hours generated in any new degree

programs created after January 1, 2013, that are specifically

excluded from reporting by the legislature under this section.

(3) "Distance learning instruction" as used in subsection (2)

means instruction that occurs solely in other than a traditional

classroom setting where the student and instructor are in the same

physical location and for which a student receives course credits

and is charged tuition and fees. Examples of distance learning

instruction are instruction delivered solely through the internet,

cable television, teleconference, or mail.

Sec. 292. (1) A task force shall be formed by August 15, 2019

to review, evaluate, discuss, and make recommendations regarding

the performance funding formula provided for in section 265a. The

task force shall review whether the current metrics used are the

most appropriate and reliable performance indicators available and

determine the most efficient methodology for connecting state

funding to those indicators.

(2) The task force described in subsection (1) shall consist

of the following members:

(a) Two members of the house of representatives. One member

shall be designated by the chairperson of the house appropriations

subcommittee on higher education, and 1 member shall be designated

by the minority vice chairperson of the house appropriations

subcommittee on higher education.

(b) Two members of the senate. One member shall be designated

by the chairperson of the senate appropriations subcommittee on

higher education, and 1 member shall be designated by the minority

vice chairperson of the senate appropriations subcommittee on

House Bill No. 5579 as amended April 24, 2018

higher education.

management, and budget, designated by the state budget director.

(d) Four representatives of public universities in this state,

designated by the Michigan Association of State Universities.

(3) The task force described in subsection (1) shall submit a

report of its findings and recommendations to the house and senate

appropriations subcommittees on higher education, the house and

senate fiscal agencies, and the state budget director by November

15, 2019.

Enacting section 1. (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 I of the state

school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as

amended by 2017 PA 143 and this amendatory act for fiscal year

2017-2018 is estimated at $12,846,177,300.00 and state

appropriations for school aid to be paid to local units of

government for fiscal year 2017-2018 are estimated at

$12,658,679,700.00. In accordance with section 30 of article IX of

the state constitution of 1963, total state spending on school aid

under article I of the state school aid act of 1979, 1979 PA 94,

MCL 388.1601 to 388.1772, as amended by this amendatory act from

state sources for fiscal year 2018-2019 is estimated at

[$13,100,445,600.00] and state appropriations for school aid to be

paid to local units of government for fiscal year 2018-2019 are

estimated at $12,860,406,200.00.

(2) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

community colleges for fiscal year 2018-2019 under article II of

the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to

388.1830, is estimated at $408,215,500.00 and the amount of that

state spending from state sources to be paid to local units of

government for fiscal year 2018-2019 is estimated at

$408,215,500.00.

(3) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

higher education for fiscal year 2018-2019 under article III of the

state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891,

is estimated at $1,531,291,100.00 and the amount of that state

spending from state sources to be paid to local units of government

for fiscal year 2018-2019 is estimated at $0.00.

Enacting section 2. Sections 22g, 35, 55, and 160 of the state

school aid act of 1979, 1979 PA 94, MCL 388.1622g, 388.1635,

388.1655, and 388.1760, are repealed effective October 1, 2018.

Enacting section 3. (1) Except as otherwise provided in

subsection (2), this amendatory act takes effect October 1, 2018.

(2) Sections 11, 11m, 21f, 22a, 22b, 26a, 26c, 31d, 51a, 51c,

56, 62, 94, 104e, and 152b of the state school aid act of 1979,

1979 PA 94, MCL 388.1611, 388.1611m, 388.1621f, 388.1622a,

388.1622b, 388.1626a, 388.1626c, 388.1631d, 388.1651a, 388.1651c,

388.1656, 388.1662, 388.1694, 388.1704e, and 388.1752b, as amended

by this amendatory act, take effect upon enactment of this

amendatory act.