January 13, 2011, Introduced by Reps. McMillin, Knollenberg and Johnson and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 502, 502a, and 503 (MCL 380.502, 380.502a, and
380.503), sections 502 and 503 as amended and section 502a as added
by 2009 PA 205.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 502. (1) A public school academy shall be organized and
administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. A public school academy corporation shall be organized
under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3192, except that a public school academy corporation is not
required to comply with sections 170 to 177 of 1931 PA 327, MCL
450.170 to 450.177. To the extent disqualified under the state or
federal constitution, a public school academy shall not be
organized by a church or other religious organization and shall not
have any organizational or contractual affiliation with or
constitute a church or other religious organization.
(2) Any of the following may act as an authorizing body to
issue a contract to organize and operate 1 or more public school
academies under this part:
(a) The board of a school district that operates grades K to
12. However, the board of a school district shall not issue a
contract for a public school academy to operate outside the school
district's boundaries, and a public school academy authorized by
the board of a school district shall not operate outside that
school district's boundaries.
(b) An intermediate school board. However, the board of an
intermediate school district shall not issue a contract for a
public school academy to operate outside the intermediate school
district's boundaries, and a public school academy authorized by
the board of an intermediate school district shall not operate
outside that intermediate school district's boundaries.
(c) The board of a community college. However, except as
otherwise provided in this subdivision, the board of a community
college shall not issue a contract for a public school academy to
operate in a school district organized as a school district of the
first class, a public school academy authorized by the board of a
community college shall not operate in a school district organized
as a school district of the first class, the board of a community
college shall not issue a contract for a public school academy to
operate outside the boundaries of the community college district,
and a public school academy authorized by the board of a community
college shall not operate outside the boundaries of the community
college district. The board of a community college also may issue a
contract for not more than 1 public school academy to operate on
the grounds of an active or closed federal military installation
located outside the boundaries of the community college district,
or may operate a public school academy itself on the grounds of
such a federal military installation, if the federal military
installation is not located within the boundaries of any community
college district and the community college has previously offered
courses on the grounds of the federal military installation for at
least 10 years.
(d)
The governing board of a state public university. However,
the
combined total number of contracts for public school academies
issued
by all state public universities shall not exceed 150.
Further,
the total number of contracts issued by any 1 state public
university
shall not exceed 50% of the maximum combined total
number
that may be issued under this subdivision.
(3) To obtain a contract to organize and operate 1 or more
public school academies, 1 or more persons or an entity may apply
to an authorizing body described in subsection (2). The application
shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 503(4), a list of the proposed members of the board
of directors of the public school academy and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed public school academy.
(ii) The purposes for the public school academy corporation.
This language shall provide that the public school academy is
incorporated pursuant to this part and that the public school
academy corporation is a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the public school
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the public school academy.
(ii) A copy of the educational goals of the public school
academy and the curricula to be offered and methods of pupil
assessment to be used by the public school academy. To the extent
applicable, the progress of the pupils in the public school academy
shall be assessed using at least a Michigan education assessment
program (MEAP) test or the Michigan merit examination, as
applicable.
(iii) The admission policy and criteria to be maintained by the
public school academy. The admission policy and criteria shall
comply with section 504. This part of the application also shall
include a description of how the applicant will provide to the
general public adequate notice that a public school academy is
being created and adequate information on the admission policy,
criteria, and process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(f) Descriptions of staff responsibilities and of the public
school academy's governance structure.
(g) For an application to the board of a school district, an
intermediate school board, or board of a community college,
identification of the local and intermediate school districts in
which the public school academy will be located.
(h) An agreement that the public school academy will comply
with the provisions of this part and, subject to the provisions of
this part, with all other state law applicable to public bodies and
with federal law applicable to public bodies or school districts.
(i) For a public school academy authorized by a school
district, an assurance that employees of the public school academy
will be covered by the collective bargaining agreements that apply
to other employees of the school district employed in similar
classifications in schools that are not public school academies.
(j) A description of and address for the proposed physical
plant in which the public school academy will be located.
(4) An authorizing body shall oversee, or shall contract with
an intermediate school district, community college, or state public
university to oversee, each public school academy operating under a
contract issued by the authorizing body. The oversight shall be
sufficient to ensure that the authorizing body can certify that the
public school academy is in compliance with statute, rules, and the
terms of the contract.
(5) If the superintendent of public instruction finds that an
authorizing body is not engaging in appropriate continuing
oversight of 1 or more public school academies operating under a
contract issued by the authorizing body, the superintendent of
public instruction may suspend the power of the authorizing body to
issue new contracts to organize and operate public school
academies. A contract issued by the authorizing body during the
suspension is void. A contract issued by the authorizing body
before the suspension is not affected by the suspension.
(6) An authorizing body shall not charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a public school academy in an amount that exceeds a
combined total of 3% of the total state school aid received by the
public school academy in the school year in which the fees or
expenses are charged. An authorizing body may provide other
services for a public school academy and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the public school academy.
(7) A public school academy shall be presumed to be legally
organized if it has exercised the franchises and privileges of a
public school academy for at least 2 years.
Sec. 502a. If a public school academy operating under this
part meets the requirements of part 6e, with the approval of its
authorizing body, the board of directors of the public school
academy may adopt a resolution choosing to convert the public
school academy to a school of excellence under part 6e. If a board
of directors of a public school academy that meets the requirements
of part 6e is issued a contract to operate as a school of
excellence under part 6e, all of the following apply:
(a) The public school academy shall cease to operate as a
public school academy under this part and shall operate as a school
of excellence under part 6e upon the issuance of the contract under
part 6e or at another time as determined by the authorizing body.
(b) The public school academy shall be considered to be a
school of excellence for all purposes upon the issuance of the
contract under part 6e or at another time as determined by the
authorizing body, but shall retain its corporate identity.
(c) The conversion of a public school academy to a school of
excellence operating under part 6e shall not impair any agreement,
mortgage, loan, bond, note or other instrument of indebtedness, or
any other agreement entered into by a public school academy while
it was operating under this part.
(d) The contract issued to the public school academy under
this part shall automatically terminate upon the issuance of a
contract under part 6e or at another time as determined by the
authorizing body.
(e)
If the authorizing body of the public school academy is
the
governing board of a state university, then all of the
following
apply to issuance of a new contract for a public school
academy
under this part after the conversion:
(i) For a period of 12 months after the contract is
issued
under
part 6e, that authorizing body is the only authorizing body
that
may issue a new contract for a new public school academy to
fill
the availability under section 502(d) that is created by the
conversion
of the public school academy to a school of excellence.
(ii) If the board of directors of the public school
academy
that
is issued a contract to fill the availability under section
502(d)
that is created by the conversion chooses to enter into an
agreement
with an educational management organization to manage or
operate
the public school academy, the board of directors may give
preference
to an educational management organization that has
previously
operated a school that met the criteria described in
section
552(4).
(iii) At the time the contract is issued, the public
school
academy
shall not be located in a school district that has a
graduation
rate of over 75.5%, on average, for the most recent 3
school
years for which the data are available, as determined by the
department.
Sec. 503. (1) An authorizing body is not required to issue a
contract to any person or entity. Public school academy contracts
shall be issued on a competitive basis taking into consideration
the resources available for the proposed public school academy, the
population to be served by the proposed public school academy, the
educational goals to be achieved by the proposed public school
academy, and the applicant's track record, if any, in operating
public school academies or other public schools. However, an
authorizing body may give priority to a public school academy that
is intended to replace a public school academy that has been closed
pursuant to section 507(2), that will operate all of the same grade
levels as the public school academy that has been closed, and that
will work toward operating all of grades 9 to 12 within 6 years
after it begins operations unless a matriculation agreement has
been entered into with another public school that provides grades 9
to 12.
(2) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more public
school academies within the boundaries of the school district and
the board does not issue the contract, the person or entity may
petition the board to place the question of issuing the contract on
the ballot to be decided by the school electors of the school
district. The petition shall contain all of the information
required to be in the contract application under section 502 and
shall be signed by a number of school electors of the school
district equal to at least 15% of the total number of school
electors of that school district. The petition shall be filed with
the school district filing official. If the board receives a
petition meeting the requirements of this subsection, the board
shall have the question of issuing the contract placed on the
ballot at its next regular school election held at least 60 days
after receiving the petition. If a majority of the school electors
of the school district voting on the question vote to issue the
contract, the board shall issue the contract.
(3) Within 10 days after issuing a contract for a public
school academy, the authorizing body shall submit to the
superintendent of public instruction a copy of the contract and of
the application under section 502.
(4) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, and number of members of
the board of directors of each public school academy subject to its
jurisdiction.
(5) A contract issued to organize and administer a public
school academy shall contain at least all of the following:
(a) The educational goals the public school academy is to
achieve and the methods by which it will be held accountable. To
the extent applicable, the pupil performance of a public school
academy shall be assessed using at least a Michigan education
assessment program (MEAP) test or the Michigan merit examination,
as applicable.
(b) A description of the method to be used to monitor the
public school academy's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) All of the matters set forth in the application for the
contract.
(e) For a public school academy authorized by a school
district, an agreement that employees of the public school academy
will be covered by the collective bargaining agreements that apply
to employees of the school district employed in similar
classifications in schools that are not public school academies.
(f) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 507.
(g) A description of and address for the proposed physical
plant
in which the public school academy will be located. At the
time
the contract is issued for a public school academy under
section
502a, the public school academy shall not be located in a
school
district that has a graduation rate of over 75.5%, on
average,
for the most recent 3 school years for which the data are
available,
as determined by the department.
(h) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by a
certified public accountant in accordance with generally accepted
governmental auditing principles.
(i) The term of the contract and a description of the process
and standards for renewal of the contract at the end of the term.
The standards for renewal shall include student growth as measured
by assessments and other objective criteria as a significant factor
in the decision of whether or not to renew the contract.
(6) A public school academy shall comply with all applicable
law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.
(7) A public school academy and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for an act or omission in authorizing a public school academy if
the authorizing body or the person acted or reasonably believed he
or she acted within the authorizing body's or the person's scope of
authority.
(8) A public school academy is exempt from all taxation on its
earnings and property. Instruments of conveyance to or from a
public school academy are exempt from all taxation including taxes
imposed by 1966 PA 134, MCL 207.501 to 207.513. A public school
academy may not levy ad valorem property taxes or another tax for
any purpose. However, operation of 1 or more public school
academies by a school district or intermediate school district does
not affect the ability of the school district or intermediate
school district to levy ad valorem property taxes or another tax.
(9) A public school academy may acquire by purchase, gift,
devise, lease, sublease, installment purchase agreement, land
contract, option, or by any other means, hold and own in its own
name buildings and other property for school purposes, and
interests therein, and other real and personal property, including,
but not limited to, interests in property subject to mortgages,
security interests, or other liens, necessary or convenient to
fulfill its purposes. For the purposes of condemnation, a public
school academy may proceed under the uniform condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding
sections 6 to 9 of that act, MCL 213.56 to 213.59, or other
applicable statutes, but only with the express, written permission
of the authorizing body in each instance of condemnation and only
after just compensation has been determined and paid.