HOUSE BILL No. 4395

 

March 25, 2015, Introduced by Rep. Glenn and referred to the Committee on Education.

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 21f, 22f, 32d, 98, 101, 107, and 163 (MCL

 

388.1606, 388.1621f, 388.1622f, 388.1632d, 388.1698, 388.1701,

 

388.1707, and 388.1763), as amended by 2014 PA 196.

 

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 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, the

 

education achievement system, 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 current 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 in the district, public school academy, or intermediate

 

district after the pupil membership count day. 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. For the purposes of this section and

 

section 6a, for a school of excellence 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, a pupil's participation in the cyber school's educational

 

program is considered regular daily attendance; for the education

 

achievement system, a pupil's participation in an online

 

educational program of the education achievement system or of an

 

achievement school is considered regular daily attendance; and for

 

a district a pupil's participation in an online course as defined

 

in section 21f is considered regular daily attendance. 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, the education achievement

 

system, 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.

 

     (c) A special education pupil educated by the intermediate

 

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) A pupil enrolled in an achievement school shall be counted

 

in membership in the education achievement system.

 

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

 

operation after December 31, 1994, or for the education achievement

 

system or an achievement school, 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) In a district, a public school academy, the education

 

achievement system, or an intermediate district operating 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.

 

     (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 homeless pupils.

 

     (B) Had dropped out of school for more than 1 year and has re-

 

entered school.

 

     (C) Is less than 22 years of age as of September 1 of the

 

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 obtained a high school diploma shall

 

not be counted in membership. An individual who has obtained a

 

general educational development (G.E.D.) certificate shall not be

 

counted in membership unless the individual is a pupil 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 Michigan strategic

 

fund, 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 or the education achievement system 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 or the education achievement system

 

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). However, for pupils

 

receiving instruction in both a public school academy or the

 

education achievement system 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 or the education achievement

 

system provides instruction for at least 1/2 of the class hours

 

specified in subdivision (q), required under section 101, the

 

public school academy or the education achievement system 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 or the education

 

achievement system provides divided by the number of hours

 

specified in subdivision (q) 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 or the education achievement

 


system provides instruction for less than 1/2 of the class hours

 

specified in subdivision (q), 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 specified in subdivision (q) 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 or the education achievement system.

 

     (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(3). 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) Beginning in 2012-2013, 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, a public school academy, or the education

 

achievement system that has pupils enrolled in a grade level that

 

was not offered by the district, the public school academy, or the

 

education achievement system 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 specified in subdivision (q) 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 or teacher engaged to teach under section

 


1233b of the revised school code, MCL 380.1233b.

 

     (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

 

or the education achievement system within 45 days after the pupil

 

membership count day, the department shall adjust the district's or

 

the education achievement system'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 Day who is enrolled in an intermediate district program

 

that begins before Labor day 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.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.

 

     (bb) A district, a public school academy, or the education

 

achievement system 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 or the education achievement system.

 

     (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 25f. 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 the

 

tenth day of the next 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.

 

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

 

section 5 of the revised school code, MCL 380.5.

 

     (6) "Pupil" means a person 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 1 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.

 

     (c) A pupil enrolled in a public school academy or the

 

education achievement system.

 

     (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, Virtual

 

School, for the pupil's enrollment in the Michigan virtual

 

school.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.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.

 

     (p) An online learning pupil enrolled in a district other than

 

the pupil's district of residence as an eligible pupil under

 

section 21f.

 

     However, 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, an intermediate district, a public school

 

academy, or the education achievement system 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, public school academy, or education

 

achievement system 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, a

 

teacher engaged to teach under section 1233b of the revised school

 

code, MCL 380.1233b, or a legally qualified substitute teacher 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 (p), 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 or, for an

 

achievement school, by the chancellor of the achievement authority

 

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 all of the provisions of this

 

article.

 

     Sec. 21f. (1) A pupil enrolled in a district in any of grades

 

6 to 12 is eligible to enroll in an online course as provided for

 

in this section.

 

     (2) With the consent of the pupil's parent or legal guardian,

 


a district shall enroll an eligible pupil in up to 2 online courses

 

as requested by the pupil during an academic term, semester, or

 

trimester. Unless the pupil is newly enrolled in the district, the

 

request for online course enrollment must be made in the academic

 

term, semester, trimester, or summer preceding the enrollment. A

 

district may not establish additional requirements that would

 

prohibit a pupil from taking an online course. If a pupil has

 

demonstrated previous success with online courses and the school

 

leadership and the pupil's parent or legal guardian determine that

 

it is in the best interest of the pupil, a pupil may be enrolled in

 

more than 2 online courses in a specific academic term, semester,

 

or trimester. Consent of the pupil's parent or legal guardian is

 

not required if the pupil is at least age 18 or is an emancipated

 

minor.

 

     (3) An eligible pupil may enroll in an online course published

 

in the pupil's educating district's catalog of online courses

 

described in subsection (7)(a) or the statewide catalog of online

 

courses maintained by the Michigan virtual university Virtual

 

University pursuant to section 98.

 

     (4) A district shall determine whether or not it has capacity

 

to accept applications for enrollment from nonresident applicants

 

in online courses and may use that limit as the reason for refusal

 

to enroll an applicant. If the number of nonresident applicants

 

eligible for acceptance in an online course does not exceed the

 

capacity of the district to provide the online course, the district

 

shall accept for enrollment all of the nonresident applicants

 

eligible for acceptance. If the number of nonresident applicants

 


exceeds the district's capacity to provide the online course, the

 

district shall use a random draw system, subject to the need to

 

abide by state and federal antidiscrimination laws and court

 

orders.

 

     (5) A district may deny a pupil enrollment in an online course

 

if any of the following apply, as determined by the district:

 

     (a) The pupil has previously gained the credits provided from

 

the completion of the online course.

 

     (b) The online course is not capable of generating academic

 

credit.

 

     (c) The online course is inconsistent with the remaining

 

graduation requirements or career interests of the pupil.

 

     (d) The pupil does not possess the prerequisite knowledge and

 

skills to be successful in the online course or has demonstrated

 

failure in previous online coursework in the same subject.

 

     (e) The online course is of insufficient quality or rigor. A

 

district that denies a pupil enrollment for this reason shall make

 

a reasonable effort to assist the pupil to find an alternative

 

course in the same or a similar subject that is of acceptable rigor

 

and quality.

 

     (f) The cost of the online course exceeds the amount

 

identified in subsection (8), unless the pupil's parent or legal

 

guardian agrees to pay the cost that exceeds this amount.

 

     (g) The online course enrollment request does not occur within

 

the same timelines established by the district for enrollment and

 

schedule changes for regular courses.

 

     (6) If a pupil is denied enrollment in an online course by a

 


district, the pupil may appeal the denial by submitting a letter to

 

the superintendent of the intermediate district in which the

 

pupil's educating district is located. The letter of appeal shall

 

include the reason provided by the 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 district shall allow

 

the pupil to enroll in the online course.

 

     (7) To offer or provide an online course under this section, a

 

district or intermediate district shall do all of the following:

 

     (a) Provide the Michigan virtual university Virtual University

 

with the course syllabus in a form and method prescribed by the

 

Michigan virtual university Virtual University for inclusion in a

 

statewide online course catalog. The district or intermediate

 

district shall also provide on its publicly accessible website a

 

link to the course syllabi for all of the online courses offered by

 

the district or intermediate district and a link to the statewide

 

catalog of online courses maintained by the Michigan virtual

 

university.Virtual University.

 

     (b) Offer the online course on an open entry and exit method,

 

or aligned to a semester, trimester, or accelerated academic term

 

format.

 

     (c) Not later than October 1, 2014, provide the Michigan

 

virtual university Virtual University with the number of

 


enrollments in each online course the district or intermediate

 

district offered to pupils pursuant to this section in 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 online course.

 

     (8) For a pupil enrolled in 1 or more online courses published

 

in the pupil's educating district's catalog of online courses under

 

subsection (7) or in the statewide catalog of online courses

 

maintained by the Michigan virtual university, Virtual University,

 

the district shall use foundation allowance or per pupil funds

 

calculated under section 20 to pay for the expenses associated with

 

the online course or courses. The district shall pay 80% of the

 

cost of the online course upon enrollment and 20% upon completion

 

as determined by the district. A district is not required to pay

 

toward the cost of an online course an amount that exceeds 8.33% of

 

the minimum foundation allowance for the current fiscal year as

 

calculated under section 20.

 

     (9) An online 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.

 

     (10) If a pupil successfully completes an online 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 online course title as it appears

 


in the online course syllabus.

 

     (11) The enrollment of a pupil in 1 or more online courses

 

shall not result in a pupil being counted as more than 1.0 full-

 

time equivalent pupils under this article.

 

     (12) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under this

 

section shall not be transferred under the pupil transfer process

 

under section 25e.

 

     (13) As used in this section:

 

     (a) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 

internet-connected Internet-connected learning environment, in

 

which pupils are separated from their teachers by time or location,

 

or both, and in which a teacher who holds a valid Michigan teaching

 

certificate or is a teacher engaged to teach under section 1233b of

 

the revised school code, MCL 380.1233b, is responsible for

 

determining appropriate instructional methods for each pupil,

 

diagnosing learning needs, assessing pupil learning, prescribing

 

intervention strategies, reporting outcomes, and evaluating the

 

effects of instruction and support strategies.

 

     (b) "Online course syllabus" means a document that includes

 

all of the following:

 

     (i) The state academic standards addressed in an online course.

 

     (ii) The online course content outline.

 

     (iii) The online course required assessments.

 

     (iv) The online course prerequisites.

 

     (v) Expectations for actual instructor contact time with the

 


online learning pupil and other pupil-to-instructor communications.

 

     (vi) Academic support available to the online learning pupil.

 

     (vii) The online course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing the

 

online content.

 

     (ix) The name of the institution or organization providing the

 

online instructor.

 

     (x) The course titles assigned by the district or intermediate

 

district and the course titles and course codes from the national

 

center for education statistics National Center for Education

 

Statistics (NCES) school codes School Codes for the exchange of

 

data Exchange of Data (SCED).

 

     (xi) The number of eligible nonresident pupils that will be

 

accepted by the district or intermediate district in the online

 

course.

 

     (xii) The results of the online course quality review using the

 

guidelines and model review process published by the Michigan

 

virtual university.Virtual University.

 

     (c) "Online learning pupil" means a pupil enrolled in 1 or

 

more online courses.

 

     (d) "Primary district" means the district that enrolls the

 

pupil and reports the pupil as a full-time equated pupil for pupil

 

membership purposes.

 

     Sec. 22f. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $75,000,000.00 to

 

provide incentive payments to districts that meet best practices

 

under this section. Payments received under this section may be

 


used for any purpose for which payments under sections 22a and 22b

 

may be used.

 

     (2) The amount of the incentive payment under this section is

 

an amount equal to $50.00 per pupil. A district shall receive an

 

incentive payment under this section if the district satisfies at

 

least 7 of the following requirements not later than June 1, 2015:

 

     (a) If a district provides medical, pharmacy, dental, vision,

 

disability, long-term care, or any other type of benefit that would

 

constitute a health care services benefit, to employees and their

 

dependents, the district is the policyholder for each of its

 

insurance policies that covers 1 or more of these benefits. A

 

district that does not directly employ its staff or a district with

 

a voluntary employee beneficiary association that pays no more than

 

the maximum per employee contribution amount and that contributes

 

no more than the maximum employer contribution percentage of total

 

annual costs for the medical benefit plans as described in sections

 

3 and 4 of the publicly funded health insurance contribution act,

 

2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied

 

this requirement.

 

     (b) The district has obtained competitive bids on the

 

provision of pupil transportation, food service, custodial, or 1 or

 

more other noninstructional services for 2014-2015. In comparing

 

competitive bids to the current costs of providing 1 or more of

 

these services, a district shall exclude the unfunded accrued

 

liability costs for retirement and other benefits from the

 

district's current costs.

 

     (c) The district accepts applications for enrollment by

 


nonresident applicants under section 105 or 105c. A public school

 

academy is considered to have met this requirement.

 

     (d) The district offers online courses or blended learning

 

opportunities to all eligible pupils. In order to satisfy this

 

requirement, a district must make all eligible pupils and their

 

parents or guardians aware of these opportunities and must publish

 

an online course syllabus as described in section 21f for each

 

online course that the district offers. For the purposes of this

 

subdivision:

 

     (i) "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 or a teacher engaged to teach under section 1233b of

 

the revised school code, MCL 380.1233b, are in the same physical

 

location and in part through internet-connected Internet-connected

 

learning environments with some degree of pupil control over time,

 

location, and pace of instruction.

 

     (ii) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 

internet-connected Internet-connected learning environment, in

 

which pupils are separated from their teachers by time or location,

 

or both, and in which a teacher with a valid Michigan teaching

 

certificate or a teacher engaged to teach under section 1233b of

 

the revised school code, MCL 380.1233b, is responsible for

 

determining appropriate instructional methods for each pupil,

 

diagnosing learning needs, assessing pupil learning, prescribing

 


intervention strategies, reporting outcomes, and evaluating the

 

effects of instruction and support strategies.

 

     (e) The district provides to parents and community members a

 

dashboard or report card demonstrating the district's efforts to

 

manage its finances responsibly. The dashboard or report card shall

 

include revenue and expenditure projections for the district for

 

fiscal year 2014-2015 and fiscal year 2015-2016, a listing of all

 

debt service obligations, detailed by project, including

 

anticipated fiscal year 2014-2015 payment for each project, a

 

listing of total outstanding debt, and at least all of the

 

following for the 3 most recent school years for which the data are

 

available:

 

     (i) Graduation and dropout rates.

 

     (ii) Average class size in grades kindergarten to 3.

 

     (iii) College readiness as measured by Michigan merit

 

examination test scores.

 

     (iv) Elementary and middle school MEAP scores.

 

     (v) Teacher, principal, and superintendent salary information

 

including at least minimum, average, and maximum pay levels.

 

     (vi) General fund balance.

 

     (vii) The total number of days of instruction provided.

 

     (f) The district complies with a method of compensation for

 

teachers and school administrators that includes job performance

 

and accomplishments as a significant factor in determining

 

compensation, as required under section 1250 of the revised school

 

code, MCL 380.1250.

 

     (g) The district's collective bargaining agreements,

 


including, but not limited to, appendices, addenda, letters of

 

agreement, or any other documents reflecting agreements with

 

collective bargaining representatives, do not contain any

 

provisions pertaining to, relating to, or that are otherwise

 

contrary to the prohibited subjects of bargaining enumerated in

 

section 15(3) of 1947 PA 336, MCL 423.215.

 

     (h) The district implements a comprehensive guidance and

 

counseling program.

 

     (i) The district offers pupils in grades K to 8 the

 

opportunity to complete coursework or other learning experiences

 

that are substantially equivalent to 1 credit in a language other

 

than English.

 

     (3) If the department determines that a district has

 

intentionally submitted false information in order to qualify for

 

an incentive payment under this section, the district forfeits an

 

amount equal to the amount it received under this section from its

 

total state school aid for 2015-2016.

 

     (4) If the department determines that funds allocated under

 

this section will remain unexpended after the initial allocation of

 

$50.00 per pupil to eligible districts under subsection (2), the

 

remaining unexpended amount is allocated on an equal per pupil

 

basis to districts that meet the requirements of subsection (2) and

 

that have a foundation allowance, as calculated under section 20,

 

in an amount that is less than the basic foundation allowance under

 

that section.

 

     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 $214,275,000.00 for 2014-2015. In addition, from the

 

funds appropriated in section 11, there is allocated to the great

 

start readiness reserve fund created under subsection (19) an

 

amount not to exceed $25,000,000.00 for 2014-2015. 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 the

 

date specified for determining a child's eligibility to attend

 

school under section 1147 of the revised school code, MCL 380.1147.

 

     (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 2014-2015 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.

 

     (c) Nutritional services for all program participants

 

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 under section 39(1)(d)

 


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.

 

     (c) Ensure that the applicant only uses qualified personnel

 

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 degree in child development or

 

early child development with specialization in preschool teaching,

 

or must be a teacher engaged to teach under section 1233b of the

 

revised school code, MCL 380.1233b. 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 development, 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 2 children served by the

 

program for purposes of determining the number of children to be

 

served and for determining the amount of the grant award. A grant

 

award shall not be increased solely on the basis of providing a

 

school-day program.

 

     (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

 

subsection (4).

 

     (9) Funds received under this section may be retained for

 

administrative services as follows:

 

     (a) For the portion of the total grant amount for which

 

services are provided directly by an intermediate district or

 

consortium of intermediate districts, the intermediate district or

 

consortium of intermediate districts may retain an amount equal to

 


not more than 7% of that portion of the grant amount.

 

     (b) For the portion of the total grant amount for which

 

services are contracted, the intermediate district or consortium of

 

intermediate districts receiving the grant may retain an amount

 

equal to not more than 2% of that portion of the grant amount and

 

the subrecipients engaged by the intermediate district to provide

 

program services may retain for administrative services an amount

 

equal to not more than 5% of that portion of the grant amount.

 

     (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 under

 

section 39(1)(d) 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.

 

     (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 pay to the educating intermediate

 

district or consortium the per-child amount attributable to each

 

child enrolled pursuant to this sentence, as determined under

 

section 39.

 

     (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 slot 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 slot 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 slot 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 slot allocation and was not

 

able to do so, then the intermediate district or consortium may

 

retain and use all of its allocated slots 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 slot 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 slot 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

 

licensed child care center located in the service area of the

 

intermediate district or consortium at least twice regarding the

 

center's eligibility to participate. One of these notifications may

 

be made electronically, but at least 1 of these notifications shall

 

be made via hard copy through the United States mail. At least 1 of

 

these notifications shall be made within 7 days after the

 


intermediate district or consortium receives notice from the

 

department of its slot allocations.

 

     (b) The intermediate district or consortium provided to each

 

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.

 

     (c) The intermediate district or consortium provided to the

 

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 slot allocation, as required under

 

subsection (1), the department shall reduce the slots allocated 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 slot allocation awarded to community-based

 

providers and 30% of its total slot 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 slot 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.

 

     (c) Ensure that all intermediate district, district, community

 

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 November 1 of each year, compile the

 

results of the information reported by each intermediate district

 

or consortium under subsection (10) (16) 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 slot 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 in a form and manner prescribed by the department

 

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 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.

 

     (c) "School-day program" means a program that operates for at

 

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 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. A grant recipient shall

 

charge tuition according to that sliding scale of tuition rates on

 

a uniform basis for any child who does not meet the income

 

eligibility requirements under this section.

 

     (19) The great start readiness reserve 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. Money

 

available in the great start readiness reserve fund may not be

 

expended for 2014-2015 unless transferred by the legislature not

 

later than December 15, 2014 to the allocation under subsection (1)

 

for great start readiness programs. Money in the great start

 

readiness reserve fund shall be expended only for purposes for

 

which state school aid fund money may be expended. The state

 

treasurer shall direct the investment of the great start readiness

 

reserve fund. The state treasurer shall credit to the great start

 

readiness reserve fund interest and earnings from fund investments.

 

Money in the great start readiness reserve fund at the close of a

 

fiscal year shall remain in the great start readiness reserve fund

 

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

 

the general fund.

 

     (20) 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,

 

2014, 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 the lesser of the projected transportation

 

budget or $150.00 multiplied by the number of slots 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 slot 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.

 

     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 2014-2015 for the purposes described in this

 

section.

 

     (2) The Michigan virtual university Virtual University shall

 

operate the Michigan virtual learning research institute. Virtual

 

Learning Research Institute. The Michigan virtual learning research

 

institute 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 digital 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 online 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 online course providers

 

operating in this state, analyze the effectiveness of online

 

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, and the department not later than

 

December 1, 2015.

 

     (v) Before August 31, 2015, provide an extensive professional

 

development program to at least 500 educational personnel,

 

including teachers, school administrators, and school board

 

members, that focuses on the effective integration of digital

 

learning into curricula and instruction. Not later than December 1,

 

2015, the Michigan virtual learning research institute 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. Virtual University. The report shall also identify

 

barriers and other opportunities to encourage the adoption of

 

digital learning in the public education system.

 

     (vi) Identify and share best practices for planning,

 

implementing, and evaluating online 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 digital

 

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

 

online learning in this state's schools.

 

     (ii) Provide a clearinghouse for research reports, academic

 

studies, evaluations, and other information related to online

 

learning.

 

     (iii) Promote and distribute the most current instructional

 

design standards and guidelines for online teaching.

 

     (iv) In collaboration with the department and interested

 

colleges and universities in this state, support implementation and

 

improvements related to effective digital learning instruction.

 

     (v) Pursue public/private partnerships that include districts

 

to study and implement competency-based technology-rich online

 

learning models.

 


     (vi) Convene focus groups and conduct annual surveys of

 

teachers, administrators, pupils, parents, and others to identify

 

barriers and opportunities related to online learning.

 

     (vii) Produce an annual consumer awareness report for schools

 

and parents about effective online education providers and

 

education delivery models, performance data, cost structures, and

 

research trends.

 

     (viii) Research and establish an internet-based platform that

 

educators can use to create student-centric learning tools and

 

resources and facilitate a user network that assists educators in

 

using the platform. As part of this initiative, the Michigan

 

virtual university Virtual University shall work collaboratively

 

with districts and intermediate districts to establish a plan to

 

make available online resources that align to Michigan's K-12

 

curriculum standards for use by students, educators, and parents.

 

     (ix) Create and maintain a public statewide catalog of online

 

learning courses being offered by all public schools in this state.

 

The Michigan virtual learning research institute Virtual Learning

 

Research Institute shall identify and develop a list of nationally

 

recognized best practices for online learning and use this list to

 

support reviews of online course vendors, courses, and

 

instructional practices. The Michigan virtual learning research

 

institute 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 Virtual Learning

 

Research Institute shall review the online course offerings of the

 


Michigan virtual university, 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

 

Virtual Learning Research Institute shall ensure that the statewide

 

catalog is made available to the public on the Michigan virtual

 

university Virtual University website and shall allow the ability

 

to link it to each district's website as provided for in section

 

21f. Beginning in 2014-2015, the statewide catalog shall also

 

contain all of the following:

 

     (A) The number of enrollments in each online course in the

 

immediately preceding school year.

 

     (B) The number of enrollments that earned 60% or more of the

 

total course points for each online course in the immediately

 

preceding school year.

 

     (C) The completion rate for each online course.

 

     (x) Collaborate with key stakeholders to examine the need and

 

process for incorporating registration, payment services, and

 

transcript functionality to the statewide catalog.

 

     (xi) Collaborate with key stakeholders to examine district

 

level accountability and teacher effectiveness issues related to

 

online learning under section 21f and make findings and

 

recommendations publicly available.

 

     (3) In order for the Michigan virtual university Virtual

 

University to receive any funds allocated under this section, the

 

Michigan virtual school Virtual School must maintain its

 

accreditation status from recognized national and international

 

accrediting entities.

 


     (4) If the course offerings are included in the statewide

 

catalog of online courses under subsection (2)(b)(ix), the Michigan

 

virtual school Virtual School operated by the Michigan virtual

 

university Virtual University may offer online 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.

 

     (c) Courses and dual enrollment opportunities.

 

     (d) Programs and services for at-risk pupils.

 

     (e) General education development 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.

 

     (5) If a home-schooled or nonpublic school student is a

 

resident of a district that subscribes to services provided by the

 

Michigan virtual school, Virtual School, the student may use the

 

services provided by the Michigan virtual school Virtual School to

 

the district without charge to the student beyond what is charged

 

to a district pupil using the same services.

 

     (6) Not later than December 1 of each fiscal year, the

 

Michigan virtual university 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

 


Virtual School for the preceding state fiscal year:

 

     (a) A list of the districts served by the Michigan virtual

 

school.Virtual School.

 

     (b) A list of online course titles available to districts.

 

     (c) The total number of online course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

     (7) The governor may appoint an advisory group for the

 

Michigan virtual learning research institute 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 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.

 

     (8) Not later than November 1, 2014, the Michigan virtual

 

university 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 2014-2015 fiscal year that includes a breakdown on

 

its projected costs to deliver online educational services to

 

districts and a summary of the anticipated fees to be paid by

 


districts for those services. Beginning in 2013-2014, not later

 

than February 1, the Michigan virtual university 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

 

online 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.

 

     (9) 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 or a teacher engaged to teach under section 1233b of

 

the revised school code, MCL 380.1233b, are in the same physical

 

location and in part through internet-connected 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

 

online courses for pupils that may or may not require attendance at

 

a physical school location.

 

     (c) "Digital learning" means instruction delivered via a web-

 

based educational delivery system that uses various information

 

technologies to provide a structured learning environment,

 

including online and blended learning instructional methods.

 

     (d) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 


internet-connected Internet-connected learning environment, in

 

which pupils are separated from their teachers by time or location,

 

or both, and in which a teacher who holds a valid Michigan teaching

 

certificate or a teacher engaged to teach under section 1233b of

 

the revised school code, MCL 380.1233b, is responsible for

 

determining appropriate instructional methods for each pupil,

 

diagnosing learning needs, assessing pupil learning, prescribing

 

intervention strategies, reporting outcomes, and evaluating the

 

effects of instruction and support strategies.

 

     Sec. 101. (1) To be eligible to receive state aid under this

 

article, not later than the fifth Wednesday after the pupil

 

membership count day and not later than the fifth Wednesday after

 

the supplemental count day, each district superintendent shall

 

submit to the center and the intermediate superintendent, in the

 

form and manner prescribed by the center, the number of pupils

 

enrolled and in regular daily attendance in the district as of the

 

pupil membership count day and as of the supplemental count day, as

 

applicable, for the current school year. In addition, a district

 

maintaining school during the entire year, as provided under

 

section 1561 of the revised school code, MCL 380.1561, shall submit

 

to the center and the intermediate superintendent, in the form and

 

manner prescribed by the center, the number of pupils enrolled and

 

in regular daily attendance in the district for the current school

 

year pursuant to rules promulgated by the superintendent. Not later

 

than the sixth Wednesday after the pupil membership count day and

 

not later than the sixth Wednesday after the supplemental count

 

day, the district shall certify the data in a form and manner

 


prescribed by the center and file the certified data with the

 

intermediate superintendent. If a district fails to submit and

 

certify the attendance data, as required under this subsection, the

 

center shall notify the department and state aid due to be

 

distributed under this article shall be withheld from the

 

defaulting district immediately, beginning with the next payment

 

after the failure and continuing with each payment until the

 

district complies with this subsection. If a district does not

 

comply with this subsection by the end of the fiscal year, the

 

district forfeits the amount withheld. A person who willfully

 

falsifies a figure or statement in the certified and sworn copy of

 

enrollment shall be punished in the manner prescribed by section

 

161.

 

     (2) To be eligible to receive state aid under this article,

 

not later than the twenty-fourth Wednesday after the pupil

 

membership count day and not later than the twenty-fourth Wednesday

 

after the supplemental count day, an intermediate district shall

 

submit to the center, in a form and manner prescribed by the

 

center, the audited enrollment and attendance data for the pupils

 

of its constituent districts and of the intermediate district. If

 

an intermediate district fails to submit the audited data as

 

required under this subsection, state aid due to be distributed

 

under this article shall be withheld from the defaulting

 

intermediate district immediately, beginning with the next payment

 

after the failure and continuing with each payment until the

 

intermediate district complies with this subsection. If an

 

intermediate district does not comply with this subsection by the

 


end of the fiscal year, the intermediate district forfeits the

 

amount withheld.

 

     (3) Except as otherwise provided in subsections (11) and (12),

 

all of the following apply to the provision of pupil instruction:

 

     (a) Except as otherwise provided in this section, each

 

district shall provide at least 1,098 hours and, beginning in 2010-

 

2011, the required minimum number of days of pupil instruction.

 

Beginning in 2014-2015, the required minimum number of days of

 

pupil instruction is 175. However, all of the following apply to

 

these requirements:

 

     (i) If a collective bargaining agreement that provides a

 

complete school calendar was in effect for employees of a district

 

as of July 1, 2013, and if that school calendar is not in

 

compliance with this subsection, then this subsection does not

 

apply to that district until after the expiration of that

 

collective bargaining agreement. If a district entered into a

 

collective bargaining agreement on or after July 1, 2013 and if

 

that collective bargaining agreement did not provide for at least

 

175 days of pupil instruction beginning in 2014-2015, then the

 

department shall withhold from the district's total state school

 

aid an amount equal to 5% of the funding the district receives in

 

2014-2015 under sections 22a and 22b.

 

     (ii) A district may apply for a waiver under subsection (9)

 

from the requirements of this subdivision.

 

     (b) Beginning in 2016-2017, the required minimum number of

 

days of pupil instruction is 180. If a collective bargaining

 

agreement that provides a complete school calendar was in effect

 


for employees of a district as of the effective date of the

 

amendatory act that added this subdivision, and if that school

 

calendar is not in compliance with this subdivision, then this

 

subdivision does not apply to that district until after the

 

expiration of that collective bargaining agreement. A district may

 

apply for a waiver under subsection (9) from the requirements of

 

this subdivision.

 

     (c) Except as otherwise provided in this article, a district

 

failing to comply with the required minimum hours and days of pupil

 

instruction under this subsection shall forfeit from its total

 

state aid allocation an amount determined by applying a ratio of

 

the number of hours or days the district was in noncompliance in

 

relation to the required minimum number of hours and days under

 

this subsection. Not later than August 1, the board of each

 

district shall certify to the department the number of hours and

 

days of pupil instruction in the previous school year. If the

 

district did not provide at least the required minimum number of

 

hours and days of pupil instruction under this subsection, the

 

deduction of state aid shall be made in the following fiscal year

 

from the first payment of state school aid. A district is not

 

subject to forfeiture of funds under this subsection for a fiscal

 

year in which a forfeiture was already imposed under subsection

 

(6).

 

     (d) Hours or days lost because of strikes or teachers'

 

conferences shall not be counted as hours or days of pupil

 

instruction.

 

     (e) If a collective bargaining agreement that provides a

 


complete school calendar is in effect for employees of a district

 

as of October 19, 2009, and if that school calendar is not in

 

compliance with this subsection, then this subsection does not

 

apply to that district until after the expiration of that

 

collective bargaining agreement.

 

     (f) Except as otherwise provided in subdivisions (g) and (h),

 

a district not having at least 75% of the district's membership in

 

attendance on any day of pupil instruction shall receive state aid

 

in that proportion of 1/180 that the actual percent of attendance

 

bears to the specified percentage.

 

     (g) If a district adds 1 or more days of pupil instruction to

 

the end of its instructional calendar for a school year to comply

 

with subdivision (a) because the district otherwise would fail to

 

provide the required minimum number of days of pupil instruction

 

even after the operation of subsection (4) due to conditions not

 

within the control of school authorities, then subdivision (f) does

 

not apply for any day of pupil instruction that is added to the end

 

of the instructional calendar. Instead, for any of those days, if

 

the district does not have at least 60% of the district's

 

membership in attendance on that day, the district shall receive

 

state aid in that proportion of 1/180 that the actual percentage of

 

attendance bears to the specified percentage. For any day of pupil

 

instruction added to the instructional calendar as described in

 

this subdivision, the district shall report to the department the

 

percentage of the district's membership that is in attendance, in

 

the form and manner prescribed by the department.

 

     (h) At the request of a district that operates a department-

 


approved alternative education program and that does not provide

 

instruction for pupils in all of grades K to 12, the superintendent

 

may grant a waiver from the requirements of subdivision (f). The

 

waiver shall indicate that an eligible district is subject to the

 

proration provisions of subdivision (f) only if the district does

 

not have at least 50% of the district's membership in attendance on

 

any day of pupil instruction. In order to be eligible for this

 

waiver, a district must maintain records to substantiate its

 

compliance with the following requirements:

 

     (i) The district offers the minimum hours of pupil instruction

 

as required under this section.

 

     (ii) For each enrolled pupil, the district uses appropriate

 

academic assessments to develop an individual education plan that

 

leads to a high school diploma.

 

     (iii) The district tests each pupil to determine academic

 

progress at regular intervals and records the results of those

 

tests in that pupil's individual education plan.

 

     (i) All of the following apply to a waiver granted under

 

subdivision (h):

 

     (i) If the waiver is for a blended model of delivery, a waiver

 

that is granted for the 2011-2012 fiscal year or a subsequent

 

fiscal year remains in effect unless it is revoked by the

 

superintendent.

 

     (ii) If the waiver is for a 100% online model of delivery and

 

the educational program for which the waiver is granted makes

 

educational services available to pupils for a minimum of at least

 

1,098 hours during a school year and ensures that each pupil

 


participates in the educational program for at least 1,098 hours

 

during a school year, a waiver that is granted for the 2011-2012

 

fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

     (iii) A waiver that is not a waiver described in subparagraph

 

(i) or (ii) is valid for 1 fiscal year and must be renewed annually

 

to remain in effect.

 

     (j) The superintendent shall promulgate rules for the

 

implementation of this subsection.

 

     (4) Except as otherwise provided in this subsection, the first

 

6 days or the equivalent number of hours for which pupil

 

instruction is not provided because of conditions not within the

 

control of school authorities, such as severe storms, fires,

 

epidemics, utility power unavailability, water or sewer failure, or

 

health conditions as defined by the city, county, or state health

 

authorities, shall be counted as hours and days of pupil

 

instruction. With the approval of the superintendent of public

 

instruction, the department shall count as hours and days of pupil

 

instruction for a fiscal year not more than 6 additional days or

 

the equivalent number of additional hours for which pupil

 

instruction is not provided in a district after April 1 of the

 

applicable school year due to unusual and extenuating occurrences

 

resulting from conditions not within the control of school

 

authorities such as those conditions described in this subsection.

 

Subsequent such hours or days shall not be counted as hours or days

 

of pupil instruction.

 

     (5) A district shall not forfeit part of its state aid

 


appropriation because it adopts or has in existence an alternative

 

scheduling program for pupils in kindergarten if the program

 

provides at least the number of hours required under subsection (3)

 

for a full-time equated membership for a pupil in kindergarten as

 

provided under section 6(4).

 

     (6) In addition to any other penalty or forfeiture under this

 

section, if at any time the department determines that 1 or more of

 

the following have occurred in a district, the district shall

 

forfeit in the current fiscal year beginning in the next payment to

 

be calculated by the department a proportion of the funds due to

 

the district under this article that is equal to the proportion

 

below the required minimum number of hours and days of pupil

 

instruction under subsection (3), as specified in the following:

 

     (a) The district fails to operate its schools for at least the

 

required minimum number of hours and days of pupil instruction

 

under subsection (3) in a school year, including hours and days

 

counted under subsection (4).

 

     (b) The board of the district takes formal action not to

 

operate its schools for at least the required minimum number of

 

hours and days of pupil instruction under subsection (3) in a

 

school year, including hours and days counted under subsection (4).

 

     (7) In providing the minimum number of hours and days of pupil

 

instruction required under subsection (3), a district shall use the

 

following guidelines, and a district shall maintain records to

 

substantiate its compliance with the following guidelines:

 

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

 

must be scheduled for at least the required minimum number of hours

 


of instruction, excluding study halls, or at least the sum of 90

 

hours plus the required minimum number of hours of instruction,

 

including up to 2 study halls.

 

     (b) The time a pupil is assigned to any tutorial activity in a

 

block schedule may be considered instructional time, unless that

 

time is determined in an audit to be a study hall period.

 

     (c) Except as otherwise provided in this subdivision, a pupil

 

in grades 9 to 12 for whom a reduced schedule is determined to be

 

in the individual pupil's best educational interest must be

 

scheduled for a number of hours equal to at least 80% of the

 

required minimum number of hours of pupil instruction to be

 

considered a full-time equivalent pupil. A pupil in grades 9 to 12

 

who is scheduled in a 4-block schedule may receive a reduced

 

schedule under this subsection if the pupil is scheduled for a

 

number of hours equal to at least 75% of the required minimum

 

number of hours of pupil instruction to be considered a full-time

 

equivalent pupil.

 

     (d) If a pupil in grades 9 to 12 who is enrolled in a

 

cooperative education program or a special education pupil cannot

 

receive the required minimum number of hours of pupil instruction

 

solely because of travel time between instructional sites during

 

the school day, that travel time, up to a maximum of 3 hours per

 

school week, shall be considered to be pupil instruction time for

 

the purpose of determining whether the pupil is receiving the

 

required minimum number of hours of pupil instruction. However, if

 

a district demonstrates to the satisfaction of the department that

 

the travel time limitation under this subdivision would create

 


undue costs or hardship to the district, the department may

 

consider more travel time to be pupil instruction time for this

 

purpose.

 

     (e) In grades 7 through 12, instructional time that is part of

 

a junior reserve officer training corps (JROTC) program shall be

 

considered to be pupil instruction time regardless of whether the

 

instructor is a certificated teacher or a teacher engaged to teach

 

under section 1233b of the revised school code, MCL 380.1233b, if

 

all of the following are met:

 

     (i) The instructor has met all of the requirements established

 

by the United States department of defense and the applicable

 

branch of the armed services for serving as an instructor in the

 

junior reserve officer training corps program.

 

     (ii) The board of the district or intermediate district

 

employing or assigning the instructor complies with the

 

requirements of sections 1230 and 1230a of the revised school code,

 

MCL 380.1230 and 380.1230a, with respect to the instructor to the

 

same extent as if employing the instructor as a regular classroom

 

teacher.

 

     (8) Except as otherwise provided in subsections (11) and (12),

 

the department shall apply the guidelines under subsection (7) in

 

calculating the full-time equivalency of pupils.

 

     (9) Upon application by the district for a particular fiscal

 

year, the superintendent may waive for a district the minimum

 

number of hours and days of pupil instruction requirement of

 

subsection (3) for a department-approved alternative education

 

program or another innovative program approved by the department,

 


including a 4-day school week. If a district applies for and

 

receives a waiver under this subsection and complies with the terms

 

of the waiver, the district is not subject to forfeiture under this

 

section for the specific program covered by the waiver. If the

 

district does not comply with the terms of the waiver, the amount

 

of the forfeiture shall be calculated based upon a comparison of

 

the number of hours and days of pupil instruction actually provided

 

to the minimum number of hours and days of pupil instruction

 

required under subsection (3). Pupils enrolled in a department-

 

approved alternative education program under this subsection shall

 

be reported to the center in a form and manner determined by the

 

center. All of the following apply to a waiver granted under this

 

subsection:

 

     (a) If the waiver is for a blended model of delivery, a waiver

 

that is granted for the 2011-2012 fiscal year or a subsequent

 

fiscal year remains in effect unless it is revoked by the

 

superintendent.

 

     (b) If the waiver is for a 100% online model of delivery and

 

the educational program for which the waiver is granted makes

 

educational services available to pupils for a minimum of at least

 

1,098 hours during a school year and ensures that each pupil

 

participates in the educational program for at least 1,098 hours

 

during a school year, a waiver that is granted for the 2011-2012

 

fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

     (c) A waiver that is not a waiver described in subdivision (a)

 

or (b) is valid for 1 fiscal year and must be renewed annually to

 


remain in effect.

 

     (10) Until 2014-2015, a district may count up to 38 hours of

 

qualifying professional development for teachers as hours of pupil

 

instruction. However, if a collective bargaining agreement that

 

provides for the counting of up to 38 hours of qualifying

 

professional development for teachers as pupil instruction is in

 

effect for employees of a district as of July 1, 2013, then until

 

the school year that begins after the expiration of that collective

 

bargaining agreement a district may count up to the contractually

 

specified number of hours of qualifying professional development

 

for teachers as hours of pupil instruction. Professional

 

development provided online is allowable and encouraged, as long as

 

the instruction has been approved by the district. The department

 

shall issue a list of approved online professional development

 

providers, which shall include the Michigan virtual school. Virtual

 

School. As used in this subsection, "qualifying professional

 

development" means professional development that is focused on 1 or

 

more of the following:

 

     (a) Achieving or improving adequate yearly progress as defined

 

under the no child left behind act of 2001, Public Law 107-110.

 

     (b) Achieving accreditation or improving a school's

 

accreditation status under section 1280 of the revised school code,

 

MCL 380.1280.

 

     (c) Achieving highly qualified teacher status as defined under

 

the no child left behind act of 2001, Public Law 107-110.

 

     (d) Integrating technology into classroom instruction.

 

     (e) Maintaining teacher certification.

 


     (11) Subsections (3) and (8) do not apply to a school of

 

excellence 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.

 

     (12) Subsections (3) and (8) do not apply to eligible pupils

 

enrolled in a dropout recovery program that meets the requirements

 

of section 23a. As used in this subsection, "eligible pupil" means

 

that term as defined in section 23a.

 

     (13) Beginning in 2013, at least every 2 years the

 

superintendent shall review the waiver standards set forth in the

 

pupil accounting and auditing manuals to ensure that the waiver

 

standards and waiver process continue to be appropriate and

 

responsive to changing trends in online learning. The

 

superintendent shall solicit and consider input from stakeholders

 

as part of this review.

 

     Sec. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $22,000,000.00 for 2014-2015 for

 

adult education programs authorized under this section. 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, a program

 

shall employ certificated teachers or teachers engaged to teach

 

under section 1233b of the revised school code, MCL 380.1233b, 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, a person shall be enrolled in an adult basic education

 

program, an adult English as a second language program, a general

 

educational development (G.E.D.) test preparation program, a job-

 

or employment-related program, or a high school completion program,

 

that meets the requirements of this section, and for which

 

instruction is provided, and shall meet either of the following, as

 

applicable:

 

     (a) If the individual has obtained a high school diploma or a

 

general educational development (G.E.D.) certificate, the

 

individual meets 1 of the following:

 

     (i) Is less than 20 years of age on September 1 of the school

 

year and is enrolled in the Michigan career and technical

 

institute.

 

     (ii) Is less than 20 years of age on September 1 of the school

 

year, is not attending an institution of higher education, and is

 

enrolled in a job- or employment-related program through a referral

 

by an employer or by a Michigan workforce agency.

 

     (iii) Is enrolled in an English as a second language program.

 

     (iv) Is enrolled in a high school completion program.

 

     (b) If the individual has not obtained a high school diploma

 

or G.E.D. certificate, the individual meets 1 of the following:

 

     (i) Is at least 20 years of age on September 1 of the school

 

year.

 

     (ii) Is at least 16 years of age on September 1 of the school

 

year, has been permanently expelled from school under section

 

1311(2) or 1311a of the revised school code, MCL 380.1311 and

 


380.1311a, and has no appropriate alternative education program

 

available through his or her district of residence.

 

     (4) 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 10 prosperity regions 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. The department shall ensure that

 

the funds allocated under this subsection for 2014-2015 will

 

provide services in 2014-2015 to at least the same number of

 

individuals as the number of individuals who were enrolled in

 

programs funded under this section in 2013-2014. For 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 in 2013-2014, and 33% shall be allocated based on

 

the factors in subdivisions (a), (b), and (c). For 2015-2016, 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). For 2016-

 

2017, 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, as

 

reported by the most recent 5-year estimates from the American

 

community survey (ACS) from the United States census bureau.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, as reported by the most

 

recent 5-year estimates from the American community survey (ACS)

 

from the United States census bureau.Census Bureau.

 

     (c) Five percent of this portion of the funding shall be

 

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, as

 

reported by the most recent 5-year estimates from the American

 

community survey (ACS) from the United States census bureau.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 as described in this section.

 

     (b) Collaborate with education advisory groups of the

 

workforce development boards located in the prosperity region to

 


develop a regional strategy that aligns adult education programs

 

and services into an efficient and effective delivery system for

 

adult education learners.

 

     (c) Collaborate with education advisory groups of the

 

workforce development boards located in the prosperity region 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, and cost to provide

 

instructional services. All local processes, criteria, and provider

 

determinations must be approved by the department before funds may

 

be distributed to the fiscal agent.

 

     (d) Report adult education program and participant data and

 

information as prescribed by the department.

 

     (6) The amount allocated under this section per full-time

 

equated participant shall not exceed $2,850.00 for a 450-hour

 

program. The amount shall be proportionately reduced for a program

 

offering less than 450 hours of instruction.

 

     (7) An adult basic 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 ninth 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.

 

     (c) A participant in an adult basic education program is

 

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 funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

subsection (11) 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.

 

     (8) A general educational development (G.E.D.) 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.

 

     (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 G.E.D. practice

 


test to determine the individual's potential for success on the

 

G.E.D. test, and shall administer a post-test upon completion of

 

the program in compliance with the state-approved assessment

 

policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

     (i) The participant obtains the G.E.D.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments used to determine readiness to take

 

the G.E.D. test after having completed at least 450 hours of

 

instruction.

 

     (9) 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.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) 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.

 

     (10) A job- or employment-related adult education 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 referred by their employer who

 

are less than 20 years of age, have a high school diploma, are

 

determined to be in need of remedial mathematics or communication

 

arts skills and are not attending an institution of higher

 

education.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the department-approved assessment policy.

 

     (c) An individual may be enrolled in this program and the

 

grant recipient shall receive funding according to subsection (11)

 

until 1 of the following occurs:

 

     (i) The individual achieves the requisite skills as determined

 

by department-approved assessment instruments.

 

     (ii) The individual fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (11) A funding recipient shall receive payments under this

 

section in accordance with the following:

 

     (a) Seventy-five percent for enrollment of eligible

 

participants.

 

     (b) Twenty-five percent for 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; for obtaining a G.E.D. or

 

passage of 1 or more individual G.E.D. 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.

 

     (12) 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 (7), (8), (9), or (10) 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.

 

     (13) An individual who is an inmate in a state correctional

 

facility shall not be counted as a participant under this section.

 

     (14) 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.

 

     (15) 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.Department of Health and Human Services.

 

     (16) 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.

 

     (17) All intermediate district participant audits of adult

 

education programs shall be performed pursuant to the adult

 

education participant auditing and accounting manuals published by

 

the department.

 

     (18) As used in this section:

 

     (a) "Department" means the Michigan strategic fund.

 

     (b) "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.

 


     (c) "Participant" means the sum of the number of full-time

 

equated individuals enrolled in and attending a department-approved

 

adult education program under this section, using quarterly

 

participant count days on the schedule described in section

 

6(7)(b).

 

     Sec. 163. (1) Except as provided in the revised school code,

 

the board of a district or intermediate district shall not permit

 

any of the following:

 

     (a) A noncertificated teacher to teach in an elementary or

 

secondary school or in an adult basic education or high school

 

completion program unless the teacher holds a valid Michigan

 

teaching certificate or is a teacher engaged to teach under section

 

1233b of the revised school code, MCL 380.1233b.

 

     (b) A noncertificated counselor to provide counseling services

 

to pupils in an elementary or secondary school or in an adult basic

 

education or high school completion program.

 

     (2) Except as provided in the revised school code, a district

 

or intermediate district employing teachers who do not hold a valid

 

Michigan teaching certificate or are not engaged to teach under

 

section 1233b of the revised school code, MCL 380.1233b, or

 

counselors not legally certificated shall have deducted the sum

 

equal to the amount paid the teachers or counselors for the period

 

of noncertificated or illegal employment. Each intermediate

 

superintendent shall notify the department of the name of the

 

noncertificated teacher or counselor, and the district employing

 

that individual and the amount of salary the noncertificated

 

teacher or counselor was paid within a constituent district.

 


     (3) If a school official is notified by the department that he

 

or she is employing a nonapproved noncertificated teacher or

 

counselor in violation of this section and knowingly continues to

 

employ that teacher or counselor, the school official is guilty of

 

a misdemeanor, punishable by a fine of $1,500.00 for each

 

incidence. This penalty is in addition to all other financial

 

penalties otherwise specified in this article.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 4394 (request no.

 

01883'15) of the 98th Legislature is enacted into law.