Bill Text: MI HB5291 | 2015-2016 | 98th Legislature | Engrossed

Michigan House Bill 5291 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Appropriations; zero budget; fiscal year 2016-2017 omnibus appropriations for school aid, higher education, and community colleges; provide for. Amends secs. 11, 17b, 201 & 236 of 1979 PA 94 (MCL 388.1611 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2016-10-19 - Assigned Pa 313'16 With Immediate Effect [HB5291 Detail]

Download: Michigan-2015-HB5291-Engrossed.html

HB-5291, As Passed House, April 26, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 5291

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 4, 6, 11, 11a, 11j, 11k, 11m, 15, 18, 19, 20,

20d, 20f, 20g, 21f, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25f,

25g, 26a, 26b, 26c, 31a, 31c, 31d, 31f, 32d, 32p, 35, 35a, 39, 39a,

41, 51a, 51c, 51d, 53a, 54, 55, 56, 61a, 61b, 62, 64b, 65, 67, 74,

81, 94, 94a, 98, 99h, 99s, 101, 102d, 104, 107, 147, 147a, 147c,

152a, 166, 201, 201a, 202a, 203, 206, 207a, 207b, 207c, 209, 210b,

210c, 217, 219, 220, 222, 223, 224, 225, 226, 229a, 230, 236, 236a,

236b, 236c, 237b, 238, 241, 246, 251, 252, 254, 256, 263, 263a,

264, 265, 265a, 267, 268, 269, 270, 274, 274c, 275, 276, 277, 278,

279, 280, 281, 282, 283, 284, 289, and 290 (MCL 388.1604, 388.1606,

388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1615,

388.1618, 388.1619, 388.1620, 388.1620d, 388.1620f, 388.1620g,

388.1621f, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1623a,

388.1624, 388.1624a, 388.1624c, 388.1625f, 388.1625g, 388.1626a,

388.1626b, 388.1626c, 388.1631a, 388.1631c, 388.1631d, 388.1631f,

388.1632d, 388.1632p, 388.1635, 388.1635a, 388.1639, 388.1639a,

388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654,

388.1655, 388.1656, 388.1661a, 388.1661b, 388.1662, 388.1664b,

388.1665, 388.1667, 388.1674, 388.1681, 388.1694, 388.1694a,

388.1698, 388.1699h, 388.1699s, 388.1701, 388.1702d, 388.1704,

388.1707, 388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1766,

388.1801, 388.1801a, 388.1802a, 388.1803, 388.1806, 388.1807a,

388.1807b, 388.1807c, 388.1809, 388.1810b, 388.1810c, 388.1817,

388.1819, 388.1820, 388.1822, 388.1823, 388.1824, 388.1825,

388.1826, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b,

388.1836c, 388.1837b, 388.1838, 388.1841, 388.1846, 388.1851,

388.1852, 388.1854, 388.1856, 388.1863, 388.1863a, 388.1864,

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

388.1874, 388.1874c, 388.1875, 388.1876, 388.1877, 388.1878,

388.1879, 388.1880, 388.1881, 388.1882, 388.1883, 388.1884,

388.1889, and 388.1890), sections 4, 203, 219, 220, 223, 238, 251,

and 254 as amended and section 237b as added by 2012 PA 201,

section 6 as amended by 2016 PA 56, sections 11, 21f, 31a, 32d, and

107 as amended by 2015 PA 139, sections 11a, 11j, 11k, 11m, 15, 20,

20d, 20f, 20g, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25f, 26a,

26b, 26c, 31d, 31f, 32p, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56,

61a, 62, 64b, 74, 81, 94, 94a, 98, 99h, 101, 104, 147, 147a, 147c,

152a, 201, 201a, 206, 207a, 207b, 207c, 209, 210b, 217, 222, 225,

226, 229a, 230, 236, 236a, 236b, 236c, 241, 246, 252, 256, 263,

263a, 264, 265, 265a, 267, 268, 269, 270, 274, 276, 277, 278, 279,

280, 281, 282, 283, and 284 as amended and sections 25g, 31c, 35,

35a, 55, 61b, 65, 67, 99s, 102d, 210c, and 274c as added by 2015 PA

85, section 18 as amended by 2015 PA 114, sections 19, 202a, 224,

and 275 as amended by 2014 PA 196, section 166 as amended by 1996

PA 300, and sections 289 and 290 as amended by 2013 PA 60, and by

adding sections 11o, 11s, 20j, 21, 21g, 31b, 54b, 61c, 95b, 99t,

152b, and 167a; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4. (1) "Education achievement system" means the

achievement authority and all achievement schools.

(2) "Elementary pupil" means a pupil in membership in grades K

to 8 in a district not maintaining classes above the eighth grade

or in grades K to 6 in a district maintaining classes above the

eighth grade. For the purposes of calculating universal service

fund (e-rate) discounts, "elementary pupil" includes children

enrolled in a preschool program operated by a district in its

facilities.

(3) "Extended school year" means an educational program

conducted by a district in which pupils must be enrolled but not

necessarily in attendance on the pupil membership count day in an

extended year program. The mandatory clock hours shall be completed

by each pupil not more than 365 calendar days after the pupil's

first day of classes for the school year prescribed. The department

shall prescribe pupil, personnel, and other reporting requirements

for the educational program.

(4) "Fiscal year" means the state fiscal year that commences

October 1 and continues through September 30.

(5) ~~"General educational development testing preparation~~

~~program" means a program that has high school level courses in~~

~~English language arts, social studies, science, and mathematics and~~

~~that prepares a person to successfully complete the general~~

~~educational development (GED) test.~~"High school equivalency test"

means the G.E.D. test developed by the GED Testing Service, the

Test Assessing Secondary Completion (TASC) developed by CTB/McGraw-

Hill, the HISET test developed by the Education Testing Service

(ETS), or another comparable test approved by the department of

talent and economic development.

(6) "High school pupil" means a pupil in membership in grades

7 to 12, except in a district not maintaining grades above the

eighth grade.

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

district or by an intermediate district for special education

pupils from several districts in programs for pupils with autism

spectrum disorder, pupils with severe cognitive impairment, pupils

with moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

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

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

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

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

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

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

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

report of the number of pupils, excluding adult education

participants, in the district for the immediately preceding school

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

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

or other credential of equal status.

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

article, means for a district, a public school academy, the

education achievement system, or an intermediate district the sum

of the product of ~~.90~~ .85 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~~ .15 times the final audited count

from the ~~supplemental~~ pupil membership count day for the

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

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

~~as provided under section 25e for pupils who enroll 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~~ a virtual

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~~ a virtual 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.

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.

current school year.

(D) Is considered to be homeless under 42 USC 11302. ~~, or was~~

~~counted in membership under this subparagraph in 2014-2015.~~

(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.)~~ high school equivalency

certificate shall not be counted in membership unless the

individual is a student with a disability as defined in R 340.1702

of the Michigan administrative code. An individual participating in

a job training program funded under former section 107a or a jobs

program funded under former section 107b, administered by the

~~Michigan strategic fund,~~ talent and economic development agency, 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) and section 101.

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

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 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

required under section 101, the district or intermediate district

providing the remainder of the hours of instruction shall receive

as its prorated share of the full-time equated membership for each

of those pupils an amount equal to 1 times the product of the hours

of instruction the district or intermediate district provides

divided by the number of hours required under section 101 for full-

time equivalency, and the remainder of the full-time membership for

each of those pupils shall be allocated to the public school

academy 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. In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

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

of the effect of his or her postsecondary enrollment, including

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

district to the pupil.

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

shall be determined by dividing the number of instructional hours

scheduled and provided per year per kindergarten pupil by the same

number used for determining full-time equated memberships for

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

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

evidence satisfactory to the department that it used federal title

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

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

kindergarten shall be determined by dividing the number of class

hours scheduled and provided per year per kindergarten pupil by a

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

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

counting of full-time equated memberships for pupils in

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

(s) For a district, 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 required under section 101 for full-time equivalency. For the

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

providing appropriate instruction if all of the following are met:

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

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

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies that are comparable to those otherwise provided in the

district's alternative education program.

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

alternative education program.

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

pupil's transcript.

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

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

with its authorizing body is revoked or the public school academy

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

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~~ .85 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~~ .15 times the final audited count from the most

recent pupil membership count day ~~or supplemental count day~~ that

occurred before suspending operations, as determined by the

superintendent.

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

as otherwise calculated under this subsection, would be less than

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

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

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

shall be considered to be the membership figure calculated under

this subdivision. If a district educates and counts in its

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

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

the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

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

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

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

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

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

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

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

otherwise calculated under this subsection.

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

who are not enrolled in kindergarten but are enrolled in a

classroom program under R 340.1754 of the Michigan administrative

code shall be determined by dividing the number of class hours

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

memberships for special education pupils who are not enrolled in

kindergarten but are receiving early childhood special education

services under R 340.1755 or R 340.1862 of the Michigan

administrative code shall be determined by dividing the number of

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

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

Labor Day who is enrolled in an intermediate district program that

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

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

attended by the pupil before Labor Day.

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

membership on the pupil membership count day in a middle college

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

membership on the pupil membership count day and on the

supplemental count day for the current school year, as determined

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

counted in membership by the operating district on the immediately

preceding supplemental count day, the pupil shall be excluded from

the district's immediately preceding supplemental count for the

purposes of determining the district's membership.

(bb) A district, 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 25g. The district operating the program shall

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

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

~~tenth day of the next month.~~ 30 days after the end of the month. A

district shall not report a pupil as being in full attendance for a

month unless both of the following are met:

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

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

participates in the program.

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

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

pupil does not meet that definition of satisfactory monthly

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

satisfactory monthly progress in the immediately preceding month

and appropriate interventions are implemented within 10 school days

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

of satisfactory monthly progress.

(ee) A pupil participating in ~~an online~~ a virtual course under

section 21f shall be counted in membership in the district

enrolling the pupil.

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

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

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

adjust the membership count of the district or the education

achievement system in which a former pupil of the public school

academy enrolls and is in regular daily attendance for the next

school year to ensure that the district or the education

achievement system receives the same amount of membership aid for

the pupil as if the pupil were counted in the district or the

education achievement system on the supplemental count day of the

preceding school year.

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

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

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

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

the district and resumes regular daily attendance during that

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

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

the pupil membership count day.

(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 K to 12 in

accordance with section 166b.

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

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

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, for the

pupil's enrollment in the Michigan Virtual School.

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

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

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

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

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

or legal ward.

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

expelling district and is reinstated by another school board under

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

380.1311a.

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

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

district of residence and the enrolling district are both

constituent districts of the same intermediate district.

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

district of residence who attends a United States Olympic Education

Center.

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

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

school code, MCL 380.1148.

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

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

adequate yearly progress under the no child left behind act of

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

Law 114-95.

However, 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 or

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 (o), or a pupil

whose parent or guardian voluntarily enrolls the pupil in a

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

district of residence shall not require a high school tuition

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

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

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

established in section 11 of article IX of the state constitution

of 1963.

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

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

PA 206, MCL 211.27a.

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

instructional print or electronic resource that is selected and

approved by the governing board of a district 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. 11. (1) ~~For the fiscal year ending September 30, 2015,~~

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

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

~~$11,814,097,400.00 from the state school aid fund, the sum of~~

~~$18,000,000.00 from the MPSERS retirement obligation reform reserve~~

~~fund created under section 147b, and the sum of $33,700,000.00 from~~

~~the general fund.~~ For the fiscal year ending September 30, 2016,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

~~$12,078,985,100.00~~ $12,005,339,300.00 from the state school aid

fund and the sum of ~~$45,900,000.00~~ $55,100,000.00 from the general

fund. For the fiscal year ending September 30, 2017, there is

appropriated for the public schools of this state and certain other

state purposes relating to education the sum of $12,076,050,000.00

from the state school aid fund, the sum of $221,000,100.00 from the

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

community district education trust fund created under section 12 of

the Michigan trust fund act, 2000 PA 489, MCL 12.262, and an amount

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

addition, all other available federal funds are appropriated each

fiscal year for the fiscal years ending September 30, ~~2015~~ 2016 and

September 30, ~~2016.~~2017.

(2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

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

this article before the expenditure of money appropriated under

this section from the state school aid fund.

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

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

the school aid stabilization fund created under section 11a.

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

a separate account within the state school aid fund established by

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

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

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

state treasurer shall deposit into the school aid stabilization

fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue

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

the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid

stabilization fund.

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

not be expended without a specific appropriation from the school

aid stabilization fund. Money in the school aid stabilization fund

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

money may be expended.

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

school aid stabilization fund. The state treasurer shall credit to

the school aid stabilization fund interest and earnings from fund

investments.

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

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

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

general fund.

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

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

available for expenditure from the state school aid fund for that

fiscal year, there is appropriated from the school aid

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

the projected shortfall as determined by the department of

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

stabilization fund. If the money in the school aid stabilization

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

shortfall, the state budget director shall notify the legislature

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

equal to the remainder of the projected shortfall shall be prorated

in the manner provided under section 296(3).

(7) For ~~2015-2016,~~ 2016-2017, in addition to the

appropriations in section 11, there is appropriated from the school

aid stabilization fund to the state school aid fund the amount

necessary to fully fund the allocations under this article.

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

allocated an amount not to exceed ~~$126,500,000.00~~ $99,500,000.00

for 2015-2016 and there is allocated an amount not to exceed

$126,500,000.00 for 2016-2017 for payments to the school loan bond

redemption fund in the department of treasury on behalf of

districts and intermediate districts. Notwithstanding section 296

or any other provision of this act, funds allocated under this

section are not subject to proration and shall be paid in full.

Sec. 11k. For ~~2015-2016,~~ 2016-2017, there is appropriated from

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

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

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

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

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

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

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

~~allocated for 2014-2015 an amount not to exceed $0.00 and~~ there is

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

~~$2,000,000.00~~ $3,000,000.00 for fiscal year cash-flow borrowing

costs solely related to the state school aid fund established by

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

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

11, there is allocated $9,200,000.00 for 2015-2016 to an

intermediate district for the purpose of providing state early on

services to children who reside within the boundaries of a

constituent district with the majority of its territory located

within the boundaries of a city for which an executive proclamation

of emergency is issued during the fiscal year under the emergency

management act, 1976 PA 390, MCL 30.401 to 30.421.

(2) For the purposes of this section, state early on services

shall be provided to children less than 5 years of age as of

September 1, 2015 who did not participate in great start readiness

programs described in sections 32d and 39. The department shall

administer the state early on services consistent with the

definitions of services contained in the early on Michigan state

plan.

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

11, there is allocated $10,142,500.00 for 2016-2017 for the purpose

of providing services and programs to children who reside within

the boundaries of a district with the majority of its territory

located within the boundaries of a city for which an executive

proclamation of emergency is issued in the current or immediately

preceding fiscal year under the emergency management act, 1976 PA

390, MCL 30.401 to 30.421. From the funding appropriated in section

11, there is allocated $100.00 from the water emergency reserve

fund for the purposes of this section.

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

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

boundaries of a city in which an executive proclamation of

emergency is issued in the current or immediately preceding fiscal

year and that has at least 5,000 pupils in membership for the

current fiscal year, an amount not to exceed $1,292,500.00 for the

purpose of employing school nurses and school social workers. The

district shall provide a report to the department in a form,

manner, and frequency approved by the department. The department

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

senate school aid subcommittees, the house and senate fiscal

agencies, and the state budget director within 5 days after

receipt. The report shall provide at least the following

information:

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

under this subsection.

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

personnel.

in subdivision (b).

(d) Any other information the department considers necessary

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

appropriate levels and types of services.

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

to an intermediate district that has a constituent district

described in subsection (2) an amount not to exceed $950,000.00 to

augment staff for the purpose of providing additional early

childhood services and nutritional services to children described

in subsection (1), regardless of location of school of attendance.

The early childhood services to be provided under this subsection

are state early on services as described in subsection (4) and

early literacy services. In addition, funds allocated under this

subsection may also be expended to provide informational resources

to parents, educators, and the community, and to coordinate

services with other local agencies. The intermediate district shall

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

approved by the department. The department shall provide a copy of

that report to the governor, the house and senate school aid

subcommittees, the house and senate fiscal agencies, and the state

budget director within 5 days after receipt. The report shall

provide at least the following information:

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

in this subsection.

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

those personnel.

provided.

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

in subdivisions (b) and (c).

(e) What types of informational resources and coordination

efforts were provided.

(f) Any other information the department considers necessary

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

appropriate levels and types of services.

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

an amount not to exceed $6,400,000.00 to intermediate districts

described in subsection (3) to provide state early on services for

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

age as of September 1, 2016. The department shall administer the

state early on services consistent with the definitions of services

contained in the early on Michigan state plan, except that all

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

age as of September 1, 2016 shall be assessed and evaluated at

least twice annually.

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

an amount not to exceed $1,500,000.00 to intermediate districts

described in subsection (3) to enroll children described in

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

regardless of household income eligibility requirements contained

in section 39. The department shall administer this funding

consistent with all other provisions of the great start readiness

programs contained in section 32d and section 39.

(6) In addition to other funding allocated and appropriated in

this section, there is appropriated an amount not to exceed

$15,000,000.00 for 2016-2017 for state restricted contingency

funds. These contingency funds are not available for expenditure

until they have been transferred to a section within this article

under section 393(2) of the management and budget act, 1984 PA 431,

MCL 18.1393.

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

receive its proper apportionment, the department, upon satisfactory

proof that the district or intermediate district was entitled

justly, shall apportion the deficiency in the next apportionment.

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

district has received more than its proper apportionment, the

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

next apportionment. Notwithstanding any other provision in this

article, state aid overpayments to a district, other than

overpayments in payments for special education or special education

transportation, may be recovered from any payment made under this

article other than a special education or special education

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

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

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

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

overpayments made in special education or special education

transportation payments may be recovered from subsequent special

education or special education transportation payments, from the

proceeds of a loan to the district under the emergency municipal

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

of millage levied or pledged under section 1211 of the revised

school code, MCL 380.1211.

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

department affects the current fiscal year membership, affected

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

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

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

department from the district, an intermediate district, the

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

deducted from the district's apportionments when the adjustment is

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

presenting evidence satisfactory to the department of the hardship,

the department may grant up to an additional 4 years for the

adjustment and may advance payments to the district otherwise

authorized under this article if the district would otherwise

experience a significant hardship in satisfying its financial

obligations. ~~For a district that is a strict discipline academy~~

~~established under sections 1311b to 1311m of the revised school~~

~~code, MCL 380.1311b to 380.1311m, and that claimed a hardship in~~

~~2014-2015 because of an overpayment caused by a miscalculation of~~

~~its pupil membership for 2013-2014, the department shall consider~~

~~the amount of repayment made by the district as of the effective~~

~~date of the amendatory act that added this sentence to constitute~~

~~full repayment and the district is not required to continue making~~

~~repayment for the overpayment that occurred in 2013-2014.~~

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

department's designee or because of new or updated information

received by the department, the department determines that the

amount paid to a district or intermediate district under this

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

incorrect, the department shall make the appropriate deduction or

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

the next apportionment after the adjustment is finalized. The

deduction or payment shall be calculated according to the law in

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

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

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

deduction, the amount of any deduction otherwise applicable shall

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

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

or from the proceeds of millage levied or pledged under section

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

department.

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

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

immediately preceding 3 fiscal years of all records related to a

program for which a district or intermediate district has received

funds under this article.

(5) Expenditures made by the department under this article

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

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

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

programs and services, there is appropriated for ~~2014-2015 and for~~

~~2015-2016~~ 2016-2017 for obligations in excess of applicable

appropriations an amount equal to the collection of overpayments,

but not to exceed amounts available from overpayments.

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

article, each district or other entity shall apply the money

received by the district or entity under this article to salaries

and other compensation of teachers and other employees, tuition,

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

purchase of textbooks, other supplies, and any other school

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

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

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

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

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

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

this section. The department shall determine the reasonableness of

expenditures and may withhold from a recipient of funds under this

article the apportionment otherwise due upon a violation by the

recipient.

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

budget in a manner that complies with the uniform budgeting and

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

after a district board adopts its annual operating budget for the

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

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

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

may make the information available through a link on its

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

prescribed by the department:

(a) The annual operating budget and subsequent budget

revisions.

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

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

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

following 2 pie charts:

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

following subcategories:

(A) Salaries and wages.

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

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

benefits.

(D) All other personnel costs.

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

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(i) The current collective bargaining agreement for each

bargaining unit.

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

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

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee in the

district.

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

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

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

health benefits act, 2007 PA 106, MCL 124.75.

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

supplies, materials, and equipment.

(vi) The district's written policy establishing specific

categories of reimbursable expenses, as described in section

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

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

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

amount of expenses incurred by board members or employees of the

district that were reimbursed by the district for the most recent

school fiscal year.

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

benefit included in the compensation package for the superintendent

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

exceeds $100,000.00.

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

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

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

in section 5 of 1978 PA 472, MCL 4.415.

(g) Any deficit elimination plan or enhanced deficit

elimination plan the district was required to submit under the

revised school code.

(h) Identification of all credit cards maintained by the

district as district credit cards, the identity of all individuals

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

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

individual's authorized use of the credit card.

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

the school administrator of the district that is fully or partially

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

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

individual on the trip, destination, and purpose.

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

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

same information in the same manner as required for a district

under subsection (2).

(4) For the purposes of determining the reasonableness of

expenditures, whether a district or intermediate district has

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

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

apply:

(a) The department shall require that each district and

intermediate district have an audit of the district's or

intermediate district's financial and pupil accounting records

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

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

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

certified public accountant or by the intermediate district

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

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

accountant, the intermediate superintendent, or the auditor general

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

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

immediately preceding fiscal years.

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

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

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

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

district may have a pupil accounting field audit conducted

biennially but must continue to have desk audits for each pupil

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

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

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

fiscal year varies from the district's membership for the

immediately preceding fiscal year by less than 5%.

audit shall include an analysis of the financial and pupil

accounting data used as the basis for distribution of state school

aid.

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

audits, and management letters are subject to requirements

established in the auditing and accounting manuals approved and

published by the department.

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

1 each year for reporting the prior fiscal year data:

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

with the intermediate district and the department.

(ii) The intermediate district shall file the annual financial

audit reports for the intermediate district with the department.

(iii) The intermediate district shall enter the pupil

membership audit reports for its constituent districts and for the

intermediate district, for the pupil membership count day and

supplemental count day, in the Michigan student data system.

(f) The annual financial audit reports and pupil accounting

procedures reports shall be available to the public in compliance

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

15.246.

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

shall notify the state budget director and the legislative

appropriations subcommittees responsible for review of the school

aid budget of districts and intermediate districts that have not

filed an annual financial audit and pupil accounting procedures

report required under this section for the school year ending in

the immediately preceding fiscal year.

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

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

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

financial statements and consistent with accounting manuals and

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

intermediate district, the report shall also contain the website

address where the department can access the report required under

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

shall ensure that the prescribed Michigan public school accounting

manual chart of accounts includes standard conventions to

distinguish expenditures by allowable fund function and object. The

functions shall include at minimum categories for instruction,

pupil support, instructional staff support, general administration,

school administration, business administration, transportation,

facilities operation and maintenance, facilities acquisition, and

debt service; and shall include object classifications of salary,

benefits, including categories for active employee health

expenditures, purchased services, supplies, capital outlay, and

other. Districts shall report the required level of detail

consistent with the manual as part of the comprehensive annual

financial report.

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

intermediate district shall file with the department the special

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

the manner prescribed by the department.

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

district shall file with the center the transportation expenditure

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

by the center.

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

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this article.

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

property using money received under this article, the public school

academy shall retain ownership of the property unless the public

school academy sells the property at fair market value.

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

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

determines that the financial data required under subsection (5)

are not consistent with audited financial statements, the

department shall withhold all state school aid due to the district

or intermediate district under this article, beginning with the

next payment due to the district or intermediate district, until

the district or intermediate district complies with subsections

(4), (5), (6), and (7). If the district or intermediate district

does not comply with subsections (4), (5), (6), and (7) by the end

of the fiscal year, the district or intermediate district forfeits

the amount withheld.

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

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

total state school aid due to the district or intermediate district

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

district or intermediate district, until the district or

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

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

end of the fiscal year, the district or intermediate district

forfeits the amount withheld.

(12) Not later than November 1, ~~2015,~~ 2016, if a district or

intermediate district offers ~~online~~ virtual learning under section

21f, the district or intermediate district shall submit to the

department a report that details the per-pupil costs of operating

the ~~online~~ virtual learning by vendor type. The report shall

include at least all of the following information concerning the

operation of ~~online~~ virtual learning for the school fiscal year

ending June 30, ~~2015:~~2016:

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

learning and of each district that enrolled students in the ~~online~~

virtual learning.

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

virtual learning and the total number of membership pupils enrolled

in the ~~online~~ virtual learning.

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

district.

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

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

(e) The number of participating students who had previously

dropped out of school.

(f) The number of participating students who had previously

been expelled from school.

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

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

trimester basis by vendor type. The total shall include costs

broken down by cost for content development, content licensing,

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

personnel, hardware and software, payment to each ~~online~~ virtual

learning provider, and other costs associated with operating ~~online~~

virtual learning.

(h) The name of each ~~online~~ virtual education provider

contracted by the district and the state in which each ~~online~~

virtual education provider is headquartered.

(13) Not later than March 31, ~~2016,~~ 2017, the department shall

submit to the house and senate appropriations subcommittees on

state school aid, the state budget director, and the house and

senate fiscal agencies a report summarizing the per-pupil costs by

vendor type of ~~online~~ virtual courses available under section 21f.

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

the following:

(a) ~~Online~~ Virtual courses provided by the Michigan Virtual

University.

(b) ~~Online~~ Virtual courses provided by a school of excellence

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

school code, MCL 380.551.

affiliated with a Michigan public school.

(d) ~~Online~~ Virtual courses created and offered by a district

or intermediate district.

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

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

with this section.

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

with all applicable reporting requirements specified in state and

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

prescribed by the center, shall be aggregated and disaggregated as

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

intermediate district shall cooperate with all measures taken by

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

data system.

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

weeks after the pupil membership count day and by June 30 of the

school fiscal year ending in the fiscal year, in a manner

prescribed by the center, the information necessary for the

preparation of the district and high school graduation report. This

information shall meet requirements established in the pupil

auditing manual approved and published by the department. The

center shall calculate an annual graduation and pupil dropout rate

for each high school, each district, and this state, in compliance

with nationally recognized standards for these calculations. The

center shall report all graduation and dropout rates to the senate

and house education committees and appropriations committees, the

state budget director, and the department not later than 30 days

after the publication of the list described in subsection (6).

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

each year, a district shall furnish to the center, in a manner

prescribed by the center, information related to educational

personnel as necessary for reporting required by state and federal

law.

(4) By June 30 of each year, a district shall furnish to the

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

to safety practices and criminal incidents as necessary for

reporting required by state and federal law.

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

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

the total funds for which the district or intermediate district

qualifies under this article until the district or intermediate

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

intermediate district does not comply with all of those subsections

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

amount withheld in an escrow account until the district or

intermediate district complies with all of those subsections.

(6) Before publishing a list of school or district

accountability designations as required by the no child left behind

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

Public Law 114-95, the department shall allow a school or district

to appeal that determination. The department shall consider and act

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

publish the list until after all appeals have been considered and

decided.

~~(7) It is the intent of the legislature to implement not later~~

~~than 2016-2017, statewide standard reporting requirements for~~

~~education data approved by the department in conjunction with the~~

~~center. The department shall work with the center, intermediate~~

~~districts, districts, and other interested stakeholders to develop~~

~~recommendations on the implementation of this policy change. A~~

~~district or intermediate district shall implement the statewide~~

~~standard reporting requirements not later than 2014-2015 or when a~~

~~district or intermediate district updates its education data~~

~~reporting system, whichever is later.~~

Sec. 20. (1) For ~~2015-2016,~~ 2016-2017, both of the following

apply:

(a) The basic foundation allowance is ~~$8,169.00.~~$8,229.00.

(b) The minimum foundation allowance is ~~$7,391.00.~~$7,511.00.

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

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

allowance in the amount specified in subsection (1).

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

of a district's foundation allowance shall be calculated as

follows, using in all calculations the total amount of the

district's foundation allowance as calculated before any proration:

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

district that had a foundation allowance for the immediately

preceding state fiscal year that was equal to the minimum

foundation allowance for the immediately preceding state fiscal

year, but less than the basic foundation allowance for the

immediately preceding state fiscal year, the district shall receive

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

district's foundation allowance for the immediately preceding state

fiscal year plus the difference between twice the dollar amount of

the adjustment from the immediately preceding state fiscal year to

the current state fiscal year made in the basic foundation

allowance and [(the difference between the basic foundation

allowance for the current state fiscal year and basic foundation

allowance for the immediately preceding state fiscal year minus

~~$23.00)~~ $20.00) times (the difference between the district's

foundation allowance for the immediately preceding state fiscal

year and the minimum foundation allowance for the immediately

preceding state fiscal year) divided by the difference between the

basic foundation allowance for the current state fiscal year and

the minimum foundation allowance for the immediately preceding

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

district that had less than the basic foundation allowance for the

immediately preceding state fiscal year shall not exceed the basic

foundation allowance for the current state fiscal year. ~~For the~~

~~purposes of this subdivision, for 2015-2016, the minimum foundation~~

~~allowance for the immediately preceding state fiscal year shall be~~

~~considered to be $7,251.00.~~

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

district that in the immediately preceding state fiscal year had a

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

foundation allowance for the immediately preceding state fiscal

year, the district shall receive a foundation allowance for ~~2015-~~

~~2016~~ 2016-2017 in an amount equal to the basic foundation allowance

for ~~2015-2016.~~2016-2017.

immediately preceding state fiscal year that was greater than the

basic foundation allowance for the immediately preceding state

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

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

immediately preceding state fiscal year plus the lesser of the

increase in the basic foundation allowance for the current state

fiscal year, as compared to the immediately preceding state fiscal

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

immediately preceding state fiscal year times the percentage

increase in the United States consumer price index in the calendar

year ending in the immediately preceding fiscal year as reported by

the May revenue estimating conference conducted under section 367b

of the management and budget act, 1984 PA 431, MCL 18.1367b.

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

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

rounded up to the nearest whole dollar.

~~(e) For a district that received a payment under section 22c~~

~~as that section was in effect for 2014-2015, the district's 2014-~~

~~2015 foundation allowance shall be considered to have been an~~

~~amount equal to the sum of the district's actual 2014-2015~~

~~foundation allowance as otherwise calculated under this section~~

~~plus the per-pupil amount of the district's equity payment for~~

~~2014-2015 under section 22c as that section was in effect for 2014-~~

~~2015.~~

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

portion of a district's foundation allowance is an amount equal to

the district's foundation allowance or the basic foundation

allowance for the current state fiscal year, whichever is less,

minus the local portion of the district's foundation allowance

divided by the district's membership excluding special education

pupils. For a district described in subsection (3)(c), the state

portion of the district's foundation allowance is an amount equal

to $6,962.00 plus the difference between the district's foundation

allowance for the current state fiscal year and the district's

foundation allowance for 1998-99, minus the local portion of the

district's foundation allowance divided by the district's

membership excluding special education pupils. For a district that

has a millage reduction required under section 31 of article IX of

the state constitution of 1963, the state portion of the district's

foundation allowance shall be calculated as if that reduction did

not occur. For a receiving district, if school operating taxes

continue to be levied on behalf of a dissolved district that has

been attached in whole or in part to the receiving district to

satisfy debt obligations of the dissolved district under section 12

of the revised school code, MCL 380.12, the taxable value per

membership pupil of property in the receiving district used for the

purposes of this subsection does not include the taxable value of

property within the geographic area of the dissolved district.

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

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

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

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

allocation calculated under this section shall be based on the

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

residence or the foundation allowance of the educating district.

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

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

district of residence, the allocation calculated under this section

shall be based on the foundation allowance of the educating

district if the educating district's foundation allowance is

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

residence. The calculation under this subsection shall take into

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

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

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

public school academy, the allocation calculated under this section

is an amount per membership pupil other than special education

pupils in the public school academy equal to the foundation

allowance of the district in which the public school academy is

located or the state maximum public school academy allocation,

whichever is less. For pupils in membership, other than special

education pupils, in a public school academy that is a cyber school

and is authorized by a school district, the allocation calculated

under this section is an amount per membership pupil other than

special education pupils in the public school academy equal to the

foundation allowance of the district that authorized the public

school academy or the state maximum public school academy

allocation, whichever is less. However, a public school academy

that had an allocation under this subsection before 2009-2010 that

was equal to the sum of the local school operating revenue per

membership pupil other than special education pupils for the

district in which the public school academy is located and the

state portion of that district's foundation allowance shall not

have that allocation reduced as a result of the 2010 amendment to

this subsection. Notwithstanding section 101, for a public school

academy that begins operations after the pupil membership count

day, the amount per membership pupil calculated under this

subsection shall be adjusted by multiplying that amount per

membership pupil by the number of hours of pupil instruction

provided by the public school academy after it begins operations,

as determined by the department, divided by the minimum number of

hours of pupil instruction required under section 101(3). The

result of this calculation shall not exceed the amount per

membership pupil otherwise calculated under this subsection.

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

pupils attending an achievement school and in membership in the

education achievement system, other than special education pupils,

the allocation calculated under this section is an amount per

membership pupil other than special education pupils equal to the

foundation allowance of the district in which the achievement

school is located, not to exceed the basic foundation allowance.

Notwithstanding section 101, for an achievement school that begins

operation after the pupil membership count day, the amount per

membership pupil calculated under this subsection shall be adjusted

by multiplying that amount per membership pupil by the number of

hours of pupil instruction provided by the achievement school after

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

the minimum number of hours of pupil instruction required under

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

amount per membership pupil otherwise calculated under this

subsection. For the purposes of this subsection, if a public school

is transferred from a district to the state school reform/redesign

district or the achievement authority under section 1280c of the

revised school code, MCL 380.1280c, that public school is

considered to be an achievement school within the education

achievement system and not a school that is part of a district, and

a pupil attending that public school is considered to be in

membership in the education achievement system and not in

membership in the district that operated the school before the

transfer.

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

or reconfigured after June 1, 2002 by consolidation of 2 or more

districts or by annexation, the resulting district's foundation

allowance under this section beginning after the effective date of

the consolidation or annexation shall be the lesser of the sum of

the average of the foundation allowances of each of the original or

affected districts, calculated as provided in this section,

weighted as to the percentage of pupils in total membership in the

resulting district who reside in the geographic area of each of the

original or affected districts plus $100.00 or the highest

foundation allowance among the original or affected districts. This

subsection does not apply to a receiving district unless there is a

subsequent consolidation or annexation that affects the district.

The calculation under this subsection shall take into account a

district's per-pupil allocation under section 20j.

(9) Each fraction used in making calculations under this

section shall be rounded to the fourth decimal place and the dollar

amount of an increase in the basic foundation allowance shall be

rounded to the nearest whole dollar.

(10) State payments related to payment of the foundation

allowance for a special education pupil are not calculated under

this section but are instead calculated under section 51a.

(11) To assist the legislature in determining the basic

foundation allowance for the subsequent state fiscal year, each

revenue estimating conference conducted under section 367b of the

management and budget act, 1984 PA 431, MCL 18.1367b, shall

calculate a pupil membership factor, a revenue adjustment factor,

and an index as follows:

(a) The pupil membership factor shall be computed by dividing

the estimated membership in the school year ending in the current

state fiscal year, excluding intermediate district membership, by

the estimated membership for the school year ending in the

subsequent state fiscal year, excluding intermediate district

membership. If a consensus membership factor is not determined at

the revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

(b) The revenue adjustment factor shall be computed by

dividing the sum of the estimated total state school aid fund

revenue for the subsequent state fiscal year plus the estimated

total state school aid fund revenue for the current state fiscal

year, adjusted for any change in the rate or base of a tax the

proceeds of which are deposited in that fund and excluding money

transferred into that fund from the countercyclical budget and

economic stabilization fund under the management and budget act,

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

total school aid fund revenue for the current state fiscal year

plus the estimated total state school aid fund revenue for the

immediately preceding state fiscal year, adjusted for any change in

the rate or base of a tax the proceeds of which are deposited in

that fund. If a consensus revenue factor is not determined at the

revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

membership factor by the revenue adjustment factor. If a consensus

index is not determined at the revenue estimating conference, the

principals of the revenue estimating conference shall report their

estimates to the house and senate subcommittees responsible for

school aid appropriations not later than 7 days after the

conclusion of the revenue conference.

(12) Payments to districts, public school academies, or the

education achievement system shall not be made under this section.

Rather, the calculations under this section shall be used to

determine the amount of state payments under section 22b.

(13) If an amendment to section 2 of article VIII of the state

constitution of 1963 allowing state aid to some or all nonpublic

schools is approved by the voters of this state, each foundation

allowance or per-pupil payment calculation under this section may

be reduced.

(14) As used in this section:

(a) "Certified mills" means the lesser of 18 mills or the

number of mills of school operating taxes levied by the district in

1993-94.

(b) "Combined state and local revenue" means the aggregate of

the district's state school aid received by or paid on behalf of

the district under this section and the district's local school

operating revenue.

means the district's combined state and local revenue divided by

the district's membership excluding special education pupils.

(d) "Current state fiscal year" means the state fiscal year

for which a particular calculation is made.

(e) "Dissolved district" means a district that loses its

organization, has its territory attached to 1 or more other

districts, and is dissolved as provided under section 12 of the

revised school code, MCL 380.12.

(f) "Immediately preceding state fiscal year" means the state

fiscal year immediately preceding the current state fiscal year.

(g) "Local portion of the district's foundation allowance"

means an amount that is equal to the difference between (the sum of

the product of the taxable value per membership pupil of all

property in the district that is nonexempt property times the

district's certified mills and, for a district with certified mills

exceeding 12, the product of the taxable value per membership pupil

of property in the district that is commercial personal property

times the certified mills minus 12 mills) and (the quotient of the

product of the captured assessed valuation under tax increment

financing acts times the district's certified mills divided by the

district's membership excluding special education pupils).

(h) "Local school operating revenue" means school operating

taxes levied under section 1211 of the revised school code, MCL

380.1211. For a receiving district, if school operating taxes are

to be levied on behalf of a dissolved district that has been

attached in whole or in part to the receiving district to satisfy

debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, local school operating revenue

does not include school operating taxes levied within the

geographic area of the dissolved district.

(i) "Local school operating revenue per membership pupil"

means a district's local school operating revenue divided by the

district's membership excluding special education pupils.

(j) "Maximum public school academy allocation", except as

otherwise provided in this subdivision, means the maximum per-pupil

allocation as calculated by adding the highest per-pupil allocation

among all public school academies for the immediately preceding

state fiscal year plus the difference between twice the amount of

the difference between the basic foundation allowance for the

current state fiscal year and the basic foundation allowance for

the immediately preceding state fiscal year and [(the amount of the

difference between the basic foundation allowance for the current

state fiscal year and the basic foundation allowance for the

immediately preceding state fiscal year minus ~~$23.00)~~ $20.00) times

(the difference between the highest per-pupil allocation among all

public school academies for the immediately preceding state fiscal

year and the minimum foundation allowance for the immediately

preceding state fiscal year) divided by the difference between the

basic foundation allowance for the current state fiscal year and

the minimum foundation allowance for the immediately preceding

state fiscal year]. For the purposes of this subdivision, for ~~2015-~~

~~2016,~~ 2016-2017, the maximum public school academy allocation is

~~$7,391.00.~~$7,511.00.

(k) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(l) "Nonexempt property" means property that is not a

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, commercial personal property, or property occupied by a

public school academy.

(m) "Principal residence", "qualified agricultural property",

"qualified forest property", "supportive housing property",

"industrial personal property", and "commercial personal property"

mean those terms as defined in section 1211 of the revised school

code, MCL 380.1211.

(n) "Receiving district" means a district to which all or part

of the territory of a dissolved district is attached under section

12 of the revised school code, MCL 380.12.

(o) "School operating purposes" means the purposes included in

the operation costs of the district as prescribed in sections 7 and

18 and purposes authorized under section 1211 of the revised school

code, MCL 380.1211.

(p) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes.

(q) "Tax increment financing acts" means 1975 PA 197, MCL

125.1651 to 125.1681, the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830, the local development financing

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

or the corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899.

(r) "Taxable value per membership pupil" means taxable value,

as certified by the county treasurer and reported to the

department, for the calendar year ending in the current state

fiscal year divided by the district's membership excluding special

education pupils for the school year ending in the current state

fiscal year.

Sec. 20d. In making the final determination required under

former section 20a of a district's combined state and local revenue

per membership pupil in 1993-94 and in making calculations under

section 20 for ~~2015-2016,~~ 2016-2017, the department and the

department of treasury shall comply with all of the following:

(a) For a district that had combined state and local revenue

per membership pupil in the 1994-95 state fiscal year of $6,500.00

or more and served as a fiscal agent for a state board designated

area vocational education center in the 1993-94 school year, total

state school aid received by or paid on behalf of the district

pursuant to this act in 1993-94 shall exclude payments made under

former section 146 and under section 147 on behalf of the

district's employees who provided direct services to the area

vocational education center. Not later than June 30, 1996, the

department shall make an adjustment under this subdivision to the

district's combined state and local revenue per membership pupil in

the 1994-95 state fiscal year and the department of treasury shall

make a final certification of the number of mills that may be

levied by the district under section 1211 of the revised school

code, MCL 380.1211, as a result of the adjustment under this

subdivision.

(b) If a district had an adjustment made to its 1993-94 total

state school aid that excluded payments made under former section

146 and under section 147 on behalf of the district's employees who

provided direct services for intermediate district center programs

operated by the district under article 5, if nonresident pupils

attending the center programs were included in the district's

membership for purposes of calculating the combined state and local

revenue per membership pupil for 1993-94, and if there is a signed

agreement by all constituent districts of the intermediate district

that an adjustment under this subdivision shall be made, the

foundation allowances for 1995-96 and 1996-97 of all districts that

had pupils attending the intermediate district center program

operated by the district that had the adjustment shall be

calculated as if their combined state and local revenue per

membership pupil for 1993-94 included resident pupils attending the

center program and excluded nonresident pupils attending the center

program.

Sec. 20f. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $18,000,000.00 for ~~2015-2016~~

2016-2017 for payments to eligible districts under this section.

(2) The funding under this subsection is from the allocation

under subsection (1). A district is eligible for funding under this

subsection if the district received a payment under this section as

it was in effect for 2013-2014. A district was eligible for funding

in 2013-2014 if the sum of the following was less than $5.00:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2012-2013 to

2013-2014.

(b) The district's equity payment per membership pupil under

section 22c for 2013-2014.

147a for 2012-2013 divided by the district's membership pupils for

2012-2013 minus the quotient of the district's allocation under

section 147a for 2013-2014 divided by the district's membership

pupils for 2013-2014.

(3) The amount allocated to each eligible district under

subsection (2) is an amount per membership pupil equal to the

amount per membership pupil the district received under this

section in 2013-2014.

(4) The funding under this subsection is from the allocation

under subsection (1). A district is eligible for funding under this

subsection for ~~2015-2016~~ 2016-2017 if the sum of the following is

less than $25.00:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The decrease in the district's best practices per-pupil

funding under section 22f from 2014-2015 to 2015-2016.

funding under section 22j from 2014-2015 to 2015-2016.

(d) The quotient of the district's allocation under section

31a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 31a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(5) The amount allocated to each eligible district under

subsection (4) is an amount per membership pupil equal to $25.00

minus the sum of the following:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The decrease in the district's best practices per-pupil

funding under section 22f from 2014-2015 to 2015-2016.

funding under section 22j from 2014-2015 to 2015-2016.

(d) The quotient of the district's allocation under section

31a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 31a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(6) If the allocation under subsection (1) is insufficient to

fully fund payments under subsections (3) and (5) as otherwise

calculated under this section, the department shall prorate

payments under this section on an equal per-pupil basis.

Sec. 20g. (1) From the money appropriated under section 11,

there is allocated an amount not to exceed $2,200,000.00 for ~~2015-~~

~~2016~~ 2016-2017 for grants to eligible districts that first received

payments under this section in 2013-2014 for transition costs

related to the enrollment of pupils who were previously enrolled in

a district that was dissolved under section 12 of the revised

school code, MCL 380.12, allocated as provided under subsection

(3). Payments under this section shall continue for a total of 4

fiscal years following the dissolution of a district, after which

the payments shall cease.

(2) A receiving school district, as that term is defined in

section 12 of the revised school code, MCL 380.12, is an eligible

district under this section.

(3) The amount allocated to each eligible district under this

section is an amount equal to the product of the number of

membership pupils enrolled in the eligible district who were

previously enrolled in the dissolved school district in the school

year immediately preceding the dissolution, or who reside in the

geographic area of the dissolved school district and are entering

kindergarten, times 10.0% of the lesser of the foundation allowance

of the eligible district as calculated under section 20 or the

basic foundation allowance under section 20(1).

(4) As used in this section, "dissolved school district" means

a school district that has been declared dissolved under section 12

of the revised school code, 1976 PA 451, MCL 380.12.

Sec. 20j. (1) Foundation allowance supplemental payments for

2016-2017 to districts that in the 2015-2016 fiscal year had a

foundation allowance greater than $8,169.00 shall be calculated

under this section.

(2) The per-pupil allocation to each district under this

section shall be the difference between the dollar amount of the

adjustment from the immediately preceding state fiscal year to the

current state fiscal year in the basic foundation allowance minus

the dollar amount of the adjustment from the immediately preceding

fiscal year to the current state fiscal year in a qualifying

district's foundation allowance.

(3) If a district's local revenue per pupil does not exceed

the sum of its foundation allowance under section 20 plus the per-

pupil allocation under subsection (2), the total payment to the

district calculated under this section shall be the product of the

per-pupil allocation under subsection (2) multiplied by the

district's membership excluding special education pupils. If a

district's local revenue per pupil exceeds the foundation allowance

under section 20 but does not exceed the sum of the foundation

allowance under section 20 plus the per-pupil allocation under

subsection (2), the total payment to the district calculated under

this section shall be the product of the difference between the sum

of the foundation allowance under section 20 plus the per-pupil

allocation under subsection (2) minus the local revenue per pupil

multiplied by the district's membership excluding special education

pupils. If a district's local revenue per pupil exceeds the sum of

the foundation allowance under section 20 plus the per-pupil

allocation under subsection (2), there is no payment calculated

under this section for the district.

(4) Payments to districts shall not be made under this

section. Rather, the calculations under this section shall be made

and used to determine the amount of state payments under section

22b.

Sec. 21. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $100.00 for 2016-2017 to make

supplemental payments to eligible districts that are identified as

being among the lowest achieving 5% of all public schools in this

state.

(2) Districts are eligible to receive the supplemental

payments calculated under this section for 3 consecutive fiscal

years if all of the following conditions are met:

(a) The state school reform/redesign officer has appointed a

chief executive officer to take control of 1 or more public schools

in the district, as provided for in section 1280c(7) of the revised

school code, MCL 380.1280c, and there is at least 1 high school

operated by the district.

(b) As determined by the school reform office, an intervention

agreement meeting at least the following criteria has been executed

by the state school reform/redesign officer and the district. The

intervention agreement shall include, but is not limited to:

(i) The rights and responsibilities of the chief executive

officer. However, the intervention agreement shall not mitigate the

authority of the chief executive officer prescribed in applicable

statute including financial and employment authority.

(ii) The allocation of supplemental payments under this

section.

(iii) The compensation for the chief executive officer.

(iv) The role of the district's board and officers during the

intervention term.

(v) Termination and renewal rights of the school reform

office.

(vi) Liability provisions for the chief executive officer.

(vii) A dispute resolution process.

(viii) The length of the term of the agreement.

(ix) Other provisions as determined by the school reform

office for successful implementation of the chief executive officer

intervention.

and senate appropriations subcommittees responsible for school aid

and provide a quarterly report concerning the district's use of

funds to increase pupil achievement.

(3) The supplemental payment provided to a district under this

section shall be calculated by multiplying the district's

foundation allowance by 20% of the high school's membership for the

prior fiscal year. The same dollar amount shall continue to be

available to the district for a maximum of 3 years, subject to the

conditions specified in subsection (2).

(4) From the allocation in subsection (1), in addition to the

supplemental payments calculated under subsection (3), there is

allocated an amount sufficient to pay for the appointment of chief

executive officers by the state school reform/redesign officer, as

provided for in section 1280c(7) of the revised school code, MCL

380.1280c.

(5) For the purposes of this section, a high school is a

school that operates exclusively all of grades 9 to 12.

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.~~ A primary district shall enroll an eligible pupil

in virtual courses in accordance with the provisions of this

section. A primary district shall not offer a virtual course to an

eligible pupil unless the virtual course is published in the

primary district's catalog of board-approved courses or in the

statewide catalog of virtual courses maintained by the Michigan

Virtual University pursuant to section 98. The primary district

shall also provide on its publicly accessible website a link to the

statewide catalog of virtual courses maintained by the Michigan

Virtual University. Unless the pupil is at least age 18 or is an

emancipated minor, a pupil shall not be enrolled in a virtual

course without the consent of the pupil's parent or legal guardian.

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

a Subject to subsection (3), a primary district shall enroll an

eligible pupil in up to 2 ~~online~~ virtual courses as requested by

the pupil during an academic term, semester, or trimester. ~~Unless~~

~~the pupil is newly enrolled in the pupil's primary 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 primary district's catalog of online courses~~

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

~~courses maintained by the Michigan Virtual University pursuant to~~

~~section 98.~~

(3) A pupil may be enrolled in more than 2 virtual courses in

a specific academic term, semester, or trimester if all of the

following conditions are met:

(a) The primary district has determined that it is in the best

interest of the pupil.

(b) The pupil agrees with the recommendation of the primary

district.

developed an education development plan, in a form and manner

specified by the department, that is kept on file by the district.

(4) ~~A providing district or community college 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~~ a virtual course does not exceed the capacity of the

~~providing district or community college~~ provider to provide the

~~online~~ virtual course, the ~~providing district or community college~~

provider shall accept for enrollment all of the ~~nonresident~~

applicants eligible for acceptance. If the number of ~~nonresident~~

applicants exceeds the ~~providing district's or community college's~~

provider's capacity to provide the ~~online~~ virtual course, the

~~providing district or community college~~ provider shall use a random

draw system, subject to the need to abide by state and federal

antidiscrimination laws and court orders. A primary district that

is also a provider shall determine whether or not it has the

capacity to accept applications for enrollment from nonresident

applicants in virtual courses and may use that limit as the reason

for refusal to enroll a nonresident applicant.

(5) A primary district may not establish additional

requirements beyond those specified in this subsection that would

prohibit a pupil from taking a virtual course. A pupil's primary

district may deny the pupil enrollment in an online course if any

of the following apply, as determined by the district:

(a) The pupil is enrolled in any of grades K to 5.

(b) ~~(a)~~ The pupil has previously gained the credits that would

be provided from the completion of the ~~online~~ virtual course.

academic credit.

(d) ~~(c)~~ The ~~online~~ virtual 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 pupil has not completed the prerequisite coursework

for the requested virtual course or has not demonstrated

proficiency in the prerequisite course content.

(f) The pupil has failed a previous virtual course in the same

subject during the 2 most recent academic years.

(g) ~~(e)~~ The ~~online~~ virtual course is of insufficient quality

or rigor. A primary district that denies a pupil enrollment request

for this reason shall ~~make a reasonable effort to assist the pupil~~

~~to find an alternative course~~ enroll the pupil in a virtual course

in the same or a similar subject that the primary district

determines is of acceptable rigor and quality.

(h) ~~(f)~~ The cost of the ~~online~~ virtual course exceeds the

amount identified in subsection ~~(10),~~ (9), unless the pupil or 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 primary district for~~

~~enrollment and schedule changes for regular courses.~~

(i) The request for a virtual course enrollment was not made

in the academic term, semester, trimester, or summer preceding the

enrollment. This subdivision does not apply to a request made by a

pupil who is newly enrolled in the primary district.

(6) If a pupil is denied enrollment in ~~an online~~ a virtual

course by the pupil's primary district, the primary district shall

provide written notification to the pupil of the denial, the reason

or reasons for the denial pursuant to subsection (5), and a

description of the appeal process. The pupil may appeal the denial

by submitting a letter to the superintendent of the intermediate

district in which the pupil's primary district is located. The

letter of appeal shall include the reason provided by the primary

district for not enrolling the pupil and the reason why the pupil

is claiming that the enrollment should be approved. The

intermediate district superintendent or designee shall respond to

the appeal within 5 days after it is received. If the intermediate

district superintendent or designee determines that the denial of

enrollment does not meet 1 or more of the reasons specified in

subsection (5), the primary district shall ~~allow~~ enroll the pupil

~~to enroll~~ in the ~~online~~ virtual course.

(7) To provide ~~an online~~ a virtual course to an eligible pupil

under this section, ~~the providing district or intermediate district~~

a provider shall do all of the following:

(a) ~~Provide the Michigan Virtual University with the course~~

~~syllabus in a form and method prescribed by the Michigan 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.~~ Ensure that the virtual course has

been published in the pupil's primary district's catalog of board-

approved courses or published in the statewide catalog of virtual

courses maintained by the Michigan Virtual University.

(b) Assign to each pupil a teacher of record and provide the

primary district with the ~~personal~~ personnel identification code

assigned by the center for the teacher of record. If the provider

is a community college, the virtual course must be taught by an

instructor employed by or contracted through the providing

community college.

method, or aligned to a semester, trimester, or accelerated

academic term format.

(d) If the virtual course is offered to eligible pupils in

more than 1 district, the following additional requirements must

also be met:

(i) Provide the Michigan Virtual University with a course

syllabus that meets the requirements under subsection (13)(f) in a

form and manner prescribed by the Michigan Virtual University for

inclusion in a statewide catalog of virtual courses.

(ii) ~~(d)~~ Not later than October 1 ~~, 2015,~~ of each fiscal year,

provide the Michigan Virtual University with ~~the number of~~

~~enrollments in each online~~ an aggregated count of enrollments for

each virtual course the ~~district or intermediate district provided~~

provider delivered to pupils pursuant to this section in during the

immediately preceding school year, and the number of enrollments in

which the pupil earned 60% or more of the total course points for

each ~~online~~ virtual course.

(8) To provide an online course under this section, a

community college shall ~~do all of the following:~~

~~(a) Provide the Michigan Virtual University with the course~~

~~syllabus in a form and method prescribed by the Michigan Virtual~~

~~University for inclusion in a statewide online course catalog.~~

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

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

~~format.~~

~~(c) Ensure~~ ensure that each online course it provides under

this section generates postsecondary credit.

~~(d) Beginning with October 1, 2016, and by October 1 of each~~

~~year thereafter, provide the Michigan Virtual University with the~~

~~number of enrollments in each online course the community college~~

~~provided 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.~~

~~(e) Be taught by an instructor employed by or contracted~~

~~through the community college.~~

(9) For any ~~online~~ virtual course a pupil enrolls in under

this section, the pupil's primary district must assign to the pupil

a mentor ~~to monitor the pupil's progress during the online course~~

and shall supply the ~~providing district~~ provider with the mentor's

contact information.

(10) For a pupil enrolled in 1 or more ~~online~~ virtual courses,

~~published in the pupil's primary district's catalog of online~~

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

~~courses maintained by the Michigan Virtual University,~~ the primary

district shall use foundation allowance or per-pupil funds

calculated under section 20 to pay for the expenses associated with

the ~~online~~ virtual course or courses. A primary district is not

required to pay toward the cost of ~~an online~~ a virtual course an

amount that exceeds 6.67% of the minimum foundation allowance for

the current fiscal year as calculated under section 20.

(11) ~~An online~~ A virtual learning pupil shall have the same

rights and access to technology in his or her primary district's

school facilities as all other pupils enrolled in the pupil's

primary district.

(12) If a pupil successfully completes ~~an online~~ a virtual

course, as determined by the pupil's primary district, the pupil's

primary district shall grant appropriate academic credit for

completion of the course and shall count that credit toward

completion of graduation and subject area requirements. A pupil's

school record and transcript shall identify the ~~online~~ virtual

course title as it appears in the ~~online~~ virtual course syllabus.

(13) The enrollment of a pupil in 1 or more ~~online~~ virtual

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

full-time equivalent pupils under this article.

~~(14) 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.~~

(14) ~~(15)~~ As used in this section:

(a) "Instructor" means an individual who is employed by or

contracted through a community college.

(b) ~~(a)~~ "Mentor" means a professional employee of the primary

district who monitors the pupil's progress, ensures the pupil has

access to needed technology, is available for assistance, and

ensures access to the teacher of record. A mentor may also serve as

the teacher of record if the primary district is the provider for

the virtual course and the mentor meets the requirements under

subdivision ~~(g).~~(e).

~~(b) "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 learning environment, in which pupils are~~

~~separated from their teachers by time or location, or both, and, if~~

~~the course is provided by a district or intermediate district, in~~

~~which a teacher who holds a valid Michigan teaching certificate~~

~~that qualifies the teacher to teach the course is responsible for~~

~~providing instruction, 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.~~

~~(c) "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 (NCES) school codes for the~~

~~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.~~

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

~~more online courses.~~

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

membership purposes.

(d) ~~(f) "Providing district"~~ "Provider" means the district,

intermediate district, or community college that the primary

district pays to provide the ~~online~~ virtual course or the Michigan

Virtual University if it is providing the virtual course.

(e) ~~(g)~~ "Teacher of record" means a teacher who ~~holds a valid~~

~~Michigan teaching certificate; who, if applicable, is endorsed in~~

~~the subject area and grade of the online course; and is responsible~~

~~for providing instruction, determining 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.~~ meets

all of the following:

(i) Holds a valid Michigan teaching certificate or a teaching

permit recognized by the department.

(ii) If applicable, is endorsed in the subject area and grade

of the virtual course.

(iii) Is responsible for providing instruction, determining

instructional methods for each pupil, diagnosing learning needs,

assessing pupil learning, prescribing intervention strategies and

modifying lessons, reporting outcomes, and evaluating the effects

of instruction and support strategies.

(iv) Has a personnel identification code provided by the

center.

(v) If the provider is a community college, is an instructor

employed by or contracted through the providing community college.

(f) "Virtual course" means a course of study that is capable

of generating a credit or a grade and that is provided in an

interactive learning environment where the majority of the

curriculum is delivered using the Internet and in which pupils may

be separated from their instructor or teacher of record by time or

location, or both.

(g) "Virtual course syllabus" means a document that includes

all of the following:

(i) An alignment document detailing how the course meets

applicable state standards or, if the state does not have state

standards, nationally recognized standards.

(ii) The virtual course content outline.

(iii) The virtual course required assessments.

(iv) The virtual course prerequisites.

(v) Expectations for actual instructor or teacher of record

contact time with the virtual learning pupil and other

communications between a pupil and the instructor or teacher of

record.

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

(vii) The virtual course learning outcomes and objectives.

(viii) The name of the institution or organization providing

the virtual content.

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

instructor or teacher of record.

(x) The course titles assigned by the provider and the course

titles and course codes from the National Center for Education

Statistics (NCES) school codes for the exchange of data (SCED).

(xi) The number of eligible pupils that will be accepted by

the provider in the virtual course. A primary district that is also

the provider may limit the enrollment to those pupils enrolled in

the primary district.

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

the guidelines and model review process published by the Michigan

Virtual University.

(h) "Virtual learning pupil" means a pupil enrolled in 1 or

more virtual courses.

Sec. 21g. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed $1,000,000.00 for

2016-2017 for a grant to a public-private partnership, led by the

Michigan Center of Innovation in Education, a Michigan-based

nonprofit organization that is exempt from federal taxes under

section 501(c)(3) of the internal revenue code, 26 USC 501(c)(3),

in partnership with the Michigan Association of Intermediate School

Administrators, and in coordination with the department and the

center, to develop and pilot a competency-based transcript and

marketplace to provide enhanced choice to pupils and parents for

the completion of the requirements for a high school diploma under

the Michigan merit standard under sections 1278a and 1278b of the

revised school code, MCL 380.1278a and 380.1278b.

(2) The partnership under subsection (1) shall do all of the

following:

(a) Establish an articulation framework for Michigan academic,

technical, and global competencies of prekindergarten through high

school diploma requirements, including providing for career and

technical and dual enrollment opportunities.

(b) Establish assessment criteria for measuring these

competencies and awarding universally recognized credentials,

micro-credentials, credits, and micro-credits for demonstrated

competencies independent of state-administered assessments.

providers as competency-based credentialing organizations to

facilitate any-time, any-pace, any-way, any-place learning such

that credentials, micro-credentials, credits, and micro-credits can

be earned inside and outside traditional classroom settings.

(d) Develop and pilot a pupil-owned transcript that satisfies

postsecondary institution requirements for admission and allows

pupils to accumulate credentials, micro-credentials, credits, and

micro-credits required for high school graduation, postsecondary

matriculation, and early career success.

(e) Establish and pilot a marketplace of accredited education

service providers to provide enhanced choice for pupils and parents

when selecting credentials, micro-credentials, credits, and micro-

credits needed to satisfy Michigan high school diploma

requirements, including career and technical and dual enrollment

opportunities.

(3) Accredited education service providers shall include, but

are not limited to, the following:

(a) Districts and public career and technical programs.

(b) Preschool, after-school, and other qualifying programs.

community education organizations.

(d) Business and civic organizations and other institutions

providing internship and apprenticeship opportunities.

(e) Community colleges, trade schools, and universities

offering dual enrollment opportunities.

(4) The transcript and marketplace shall do all of the

following:

(a) Use Michigan-specific academic standards when defining

academic competencies.

(b) Use industry standards for the competency assessment.

of credentials, micro-credentials, credits, and micro-credits.

(d) Offer its services at no cost to pupils or parents.

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

allocated ~~an amount not to exceed $5,377,000,000.00 for 2014-2015~~

~~and~~ an amount not to exceed ~~$5,281,700,000.00~~ $5,255,000,000.00 for

2015-2016 and an amount not to exceed $5,218,500,000.00 for 2016-

2017 for payments to districts and qualifying public school

academies to guarantee each district and qualifying public school

academy an amount equal to its 1994-95 total state and local per

pupil revenue for school operating purposes under section 11 of

article IX of the state constitution of 1963. Pursuant to section

11 of article IX of the state constitution of 1963, this guarantee

does not apply to a district in a year in which the district levies

a millage rate for school district operating purposes less than it

levied in 1994. However, subsection (2) applies to calculating the

payments under this section. Funds allocated under this section

that are not expended in the state fiscal year for which they were

allocated, as determined by the department, may be used to

supplement the allocations under sections 22b and 51c in order to

fully fund those calculated allocations for the same fiscal year.

(2) To ensure that a district receives an amount equal to the

district's 1994-95 total state and local per pupil revenue for

school operating purposes, there is allocated to each district a

state portion of the district's 1994-95 foundation allowance in an

amount calculated as follows:

(a) Except as otherwise provided in this subsection, the state

portion of a district's 1994-95 foundation allowance is an amount

equal to the district's 1994-95 foundation allowance or $6,500.00,

whichever is less, minus the difference between the sum of the

product of the taxable value per membership pupil of all property

in the district that is nonexempt property times the district's

certified mills and, for a district with certified mills exceeding

12, the product of the taxable value per membership pupil of

property in the district that is commercial personal property times

the certified mills minus 12 mills and the quotient of the ad

valorem property tax revenue of the district captured under tax

increment financing acts divided by the district's membership. For

a district that has a millage reduction required under section 31

of article IX of the state constitution of 1963, the state portion

of the district's foundation allowance shall be calculated as if

that reduction did not occur. For a receiving district, if school

operating taxes are to be levied on behalf of a dissolved district

that has been attached in whole or in part to the receiving

district to satisfy debt obligations of the dissolved district

under section 12 of the revised school code, MCL 380.12, taxable

value per membership pupil of all property in the receiving

district that is nonexempt property and taxable value per

membership pupil of property in the receiving district that is

commercial personal property do not include property within the

geographic area of the dissolved district; ad valorem property tax

revenue of the receiving district captured under tax increment

financing acts does not include ad valorem property tax revenue

captured within the geographic boundaries of the dissolved district

under tax increment financing acts; and certified mills do not

include the certified mills of the dissolved district.

(b) For a district that had a 1994-95 foundation allowance

greater than $6,500.00, the state payment under this subsection

shall be the sum of the amount calculated under subdivision (a)

plus the amount calculated under this subdivision. The amount

calculated under this subdivision shall be equal to the difference

between the district's 1994-95 foundation allowance minus $6,500.00

and the current year hold harmless school operating taxes per

pupil. If the result of the calculation under subdivision (a) is

negative, the negative amount shall be an offset against any state

payment calculated under this subdivision. If the result of a

calculation under this subdivision is negative, there shall not be

a state payment or a deduction under this subdivision. The taxable

values per membership pupil used in the calculations under this

subdivision are as adjusted by ad valorem property tax revenue

captured under tax increment financing acts divided by the

district's membership. For a receiving district, if school

operating taxes are to be levied on behalf of a dissolved district

that has been attached in whole or in part to the receiving

district to satisfy debt obligations of the dissolved district

under section 12 of the revised school code, MCL 380.12, ad valorem

property tax revenue captured under tax increment financing acts do

not include ad valorem property tax revenue captured within the

geographic boundaries of the dissolved district under tax increment

financing acts.

(3) Beginning in 2003-2004, for pupils in membership in a

qualifying public school academy, there is allocated under this

section to the authorizing body that is the fiscal agent for the

qualifying public school academy for forwarding to the qualifying

public school academy an amount equal to the 1994-95 per pupil

payment to the qualifying public school academy under section 20.

(4) A district or qualifying public school academy may use

funds allocated under this section in conjunction with any federal

funds for which the district or qualifying public school academy

otherwise would be eligible.

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

district that is formed or reconfigured after June 1, 2000 by

consolidation of 2 or more districts or by annexation, the

resulting district's 1994-95 foundation allowance under this

section beginning after the effective date of the consolidation or

annexation shall be the average of the 1994-95 foundation

allowances of each of the original or affected districts,

calculated as provided in this section, weighted as to the

percentage of pupils in total membership in the resulting district

in the state fiscal year in which the consolidation takes place who

reside in the geographic area of each of the original districts. If

an affected district's 1994-95 foundation allowance is less than

the 1994-95 basic foundation allowance, the amount of that

district's 1994-95 foundation allowance shall be considered for the

purpose of calculations under this subsection to be equal to the

amount of the 1994-95 basic foundation allowance. This subsection

does not apply to a receiving district unless there is a subsequent

consolidation or annexation that affects the district.

(6) Payments under this section are subject to section 25f.

(7) As used in this section:

(a) "1994-95 foundation allowance" means a district's 1994-95

foundation allowance calculated and certified by the department of

treasury or the superintendent under former section 20a as enacted

in 1993 PA 336 and as amended by 1994 PA 283.

(b) "Certified mills" means the lesser of 18 mills or the

number of mills of school operating taxes levied by the district in

1993-94.

for which a particular calculation is made.

(d) "Current year hold harmless school operating taxes per

pupil" means the per pupil revenue generated by multiplying a

district's 1994-95 hold harmless millage by the district's current

year taxable value per membership pupil. For a receiving district,

if school operating taxes are to be levied on behalf of a dissolved

district that has been attached in whole or in part to the

receiving district to satisfy debt obligations of the dissolved

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

taxable value per membership pupil does not include the taxable

value of property within the geographic area of the dissolved

district.

(e) "Dissolved district" means a district that loses its

organization, has its territory attached to 1 or more other

districts, and is dissolved as provided under section 12 of the

revised school code, MCL 380.12.

(f) "Hold harmless millage" means, for a district with a 1994-

95 foundation allowance greater than $6,500.00, the number of mills

by which the exemption from the levy of school operating taxes on a

homestead, qualified agricultural property, qualified forest

property, supportive housing property, industrial personal

property, commercial personal property, and property occupied by a

public school academy could be reduced as provided in section 1211

of the revised school code, MCL 380.1211, and the number of mills

of school operating taxes that could be levied on all property as

provided in section 1211(2) of the revised school code, MCL

380.1211, as certified by the department of treasury for the 1994

tax year. For a receiving district, if school operating taxes are

to be levied on behalf of a dissolved district that has been

attached in whole or in part to the receiving district to satisfy

debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, school operating taxes do not

include school operating taxes levied within the geographic area of

the dissolved district.

(g) "Homestead", "qualified agricultural property", "qualified

forest property", "supportive housing property", "industrial

personal property", and "commercial personal property" mean those

terms as defined in section 1211 of the revised school code, MCL

380.1211.

(h) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(i) "Nonexempt property" means property that is not a

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, commercial personal property, or property occupied by a

public school academy.

(j) "Qualifying public school academy" means a public school

academy that was in operation in the 1994-95 school year and is in

operation in the current state fiscal year.

(k) "Receiving district" means a district to which all or part

of the territory of a dissolved district is attached under section

12 of the revised school code, MCL 380.12.

(l) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes as defined in

section 20.

(m) "Tax increment financing acts" means 1975 PA 197, MCL

125.1651 to 125.1681, the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830, the local development financing

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

or the corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899.

(n) "Taxable value per membership pupil" means each of the

following divided by the district's membership:

(i) For the number of mills by which the exemption from the

levy of school operating taxes on a homestead, qualified

agricultural property, qualified forest property, supportive

housing property, industrial personal property, commercial personal

property, and property occupied by a public school academy may be

reduced as provided in section 1211 of the revised school code, MCL

380.1211, the taxable value of homestead, qualified agricultural

property, qualified forest property, supportive housing property,

industrial personal property, commercial personal property, and

property occupied by a public school academy for the calendar year

ending in the current state fiscal year. For a receiving district,

if school operating taxes are to be levied on behalf of a dissolved

district that has been attached in whole or in part to the

receiving district to satisfy debt obligations of the dissolved

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

mills do not include mills within the geographic area of the

dissolved district.

(ii) For the number of mills of school operating taxes that

may be levied on all property as provided in section 1211(2) of the

revised school code, MCL 380.1211, the taxable value of all

property for the calendar year ending in the current state fiscal

year. For a receiving district, if school operating taxes are to be

levied on behalf of a dissolved district that has been attached in

whole or in part to the receiving district to satisfy debt

obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, school operating taxes do not

include school operating taxes levied within the geographic area of

the dissolved district.

Sec. 22b. (1) ~~From the appropriation in section 11,~~ For

discretionary nonmandated payments to districts under this section,

there is allocated from the appropriation in section 11 an amount

not to exceed $3,690,000,000.00 for 2015-2016 and there is

allocated for 2016-2017 an amount not to exceed ~~$3,440,000,000.00~~

~~for 2014-2015 and an amount not to exceed $3,728,000,000.00 for~~

~~2015-2016 for discretionary nonmandated payments to districts under~~

~~this section.~~ $3,717,503,200.00 from the state school aid fund

money appropriated in section 11, an amount not to exceed

$182,496,800.00 from the general fund money appropriated in section

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

district education trust fund appropriation in section 11. Funds

allocated under this section that are not expended in the state

fiscal year for which they were allocated, as determined by the

department, may be used to supplement the allocations under

sections 22a and 51c in order to fully fund those calculated

allocations for the same fiscal year.

(2) Subject to subsection (3) and section 296, the allocation

to a district under this section shall be an amount equal to the

sum of the amounts calculated under sections 20, 20j, 51a(2),

51a(3), and 51a(11), minus the sum of the allocations to the

district under sections 22a and 51c.

(3) In order to receive an allocation under subsection (1),

each district shall do all of the following:

(a) Comply with section 1280b of the revised school code, MCL

380.1280b.

(b) Comply with sections 1278a and 1278b of the revised school

code, MCL 380.1278a and 380.1278b.

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

(d) Comply with section 1230g of the revised school code, MCL

380.1230g.

(e) Comply with section 21f.

(4) Districts are encouraged to use funds allocated under this

section for the purchase and support of payroll, human resources,

and other business function software that is compatible with that

of the intermediate district in which the district is located and

with other districts located within that intermediate district.

(5) From the allocation in subsection (1), the department

shall pay up to $1,000,000.00 in litigation costs incurred by this

state related to commercial or industrial property tax appeals,

including, but not limited to, appeals of classification, that

impact revenues dedicated to the state school aid fund.

(6) From the allocation in subsection (1), the department

shall pay up to $1,000,000.00 in litigation costs incurred by this

state associated with lawsuits filed by 1 or more districts or

intermediate districts against this state. If the allocation under

this section is insufficient to fully fund all payments required

under this section, the payments under this subsection shall be

made in full before any proration of remaining payments under this

section.

(7) It is the intent of the legislature that all

constitutional obligations of this state have been fully funded

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

an entity receiving funds under this article that challenges the

legislative determination of the adequacy of this funding or

alleges that there exists an unfunded constitutional requirement,

the state budget director may escrow or allocate from the

discretionary funds for nonmandated payments under this section the

amount as may be necessary to satisfy the claim before making any

payments to districts under subsection (2). If funds are escrowed,

the escrowed funds are a work project appropriation and the funds

are carried forward into the following fiscal year. The purpose of

the work project is to provide for any payments that may be awarded

to districts as a result of litigation. The work project shall be

completed upon resolution of the litigation.

(8) If the local claims review board or a court of competent

jurisdiction makes a final determination that this state is in

violation of section 29 of article IX of the state constitution of

1963 regarding state payments to districts, the state budget

director shall use work project funds under subsection (7) or

allocate from the discretionary funds for nonmandated payments

under this section the amount as may be necessary to satisfy the

amount owed to districts before making any payments to districts

under subsection (2).

(9) If a claim is made in court that challenges the

legislative determination of the adequacy of funding for this

state's constitutional obligations or alleges that there exists an

unfunded constitutional requirement, any interested party may seek

an expedited review of the claim by the local claims review board.

If the claim exceeds $10,000,000.00, this state may remove the

action to the court of appeals, and the court of appeals shall have

and shall exercise jurisdiction over the claim.

(10) If payments resulting from a final determination by the

local claims review board or a court of competent jurisdiction that

there has been a violation of section 29 of article IX of the state

constitution of 1963 exceed the amount allocated for discretionary

nonmandated payments under this section, the legislature shall

provide for adequate funding for this state's constitutional

obligations at its next legislative session.

(11) If a lawsuit challenging payments made to districts

related to costs reimbursed by federal title XIX Medicaid funds is

filed against this state, then, for the purpose of addressing

potential liability under such a lawsuit, the state budget director

may place funds allocated under this section in escrow or allocate

money from the funds otherwise allocated under this section, up to

a maximum of 50% of the amount allocated in subsection (1). If

funds are placed in escrow under this subsection, those funds are a

work project appropriation and the funds are carried forward into

the following fiscal year. The purpose of the work project is to

provide for any payments that may be awarded to districts as a

result of the litigation. The work project shall be completed upon

resolution of the litigation. In addition, this state reserves the

right to terminate future federal title XIX Medicaid reimbursement

payments to districts if the amount or allocation of reimbursed

funds is challenged in the lawsuit. As used in this subsection,

"title XIX" means title XIX of the social security act, 42 USC 1396

to 1396v.

~~(12) Payments under this section are subject to section 25g.~~

Sec. 22d. (1) From the appropriation in section 11, an amount

not to exceed $5,000,000.00 is allocated for ~~2015-2016~~ 2016-2017

for supplemental payments to rural districts under this section.

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

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

$957,300.00 for payments under this subsection to districts that

meet all of the following:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

least 1 of the following:

(i) Is located in the Upper Peninsula at least 30 miles from

any other public school building.

(ii) Is located on an island that is not accessible by bridge.

(3) The amount of the additional funding to each eligible

district under subsection (2) shall be determined under a spending

plan developed as provided in this subsection and approved by the

superintendent of public instruction. The spending plan shall be

developed cooperatively by the intermediate superintendents of each

intermediate district in which an eligible district is located. The

intermediate superintendents shall review the financial situation

of each eligible district, determine the minimum essential

financial needs of each eligible district, and develop and agree on

a spending plan that distributes the available funding under

subsection (2) to the eligible districts based on those financial

needs. The intermediate superintendents shall submit the spending

plan to the superintendent of public instruction for approval. Upon

approval by the superintendent of public instruction, the amounts

specified for each eligible district under the spending plan are

allocated under subsection (2) and shall be paid to the eligible

districts in the same manner as payments under section 22b.

(4) Subject to subsection (6), from the allocation in

subsection (1), there is allocated for ~~2015-2016~~ 2016-2017 an

amount not to exceed $4,042,700.00 for payments under this

subsection to districts that have 7.3 or fewer pupils per square

mile as determined by the department.

(5) The funds allocated under subsection (4) shall be

allocated on an equal per-pupil basis.

(6) A district receiving funds allocated under subsection (2)

is not eligible for funding allocated under subsection (4).

Sec. 22g. (1) From the funds appropriated in section 11, there

is allocated for ~~2015-2016~~ 2016-2017 only an amount not to exceed

$5,000,000.00 for competitive assistance grants to districts and

intermediate districts.

(2) Funds received under this section may be used for

reimbursement of transition costs associated with the consolidation

of operations or services between 2 or more districts or

intermediate districts or the dissolution, consolidation, or

annexation of districts or intermediate districts. Grant funding

shall be available for consolidations of operations or services,

dissolutions, consolidations, or annexations that occur on or after

June 1, ~~2015.~~ 2016. Districts may spend funds allocated under this

section over 3 fiscal years.

Sec. 23a. (1) A dropout recovery program operated by a

district qualifies for the special membership counting provisions

of section 6(4)(dd) and the hours and day of pupil instruction

exemption under section 101(12) if the dropout recovery program

meets all of the following:

(a) Enrolls only eligible pupils.

(b) Provides an advocate. An advocate may serve in that role

for more than 1 pupil but no more than 50 pupils. An advocate may

be employed by the district or may be provided by an education

management organization that is partnering with the district.

Before an individual is assigned to be an advocate for a pupil in

the dropout recovery program, the district shall comply with

sections 1230 and 1230a of the revised school code, MCL 380.1230

and 380.1230a, with respect to that individual.

(d) Monitors the pupil's progress against the written learning

plan.

(e) Requires each pupil to make satisfactory monthly progress,

as defined by the district under subsection (2).

(f) Reports the pupil's progress results to the partner

district at least monthly.

(g) The program may be operated on or off a district school

campus, but may be operated using distance learning online only if

the program provides a computer and Internet access for each

eligible pupil participating in the program.

(h) Is operated throughout the entire calendar year.

(i) If the district partners with an education management

organization for the program, the education management organization

has a dropout recovery program partnership relationship with at

least 1 other district.

(2) A district operating a dropout recovery program under this

section shall adopt a definition of satisfactory monthly progress

that is consistent with the definition of that term under

subsection (3).

(3) As used in this section:

(a) "Advocate" means an adult available to meet in person with

assigned pupils, as needed, to conduct social interventions, to

proctor final examinations, and to provide academic and social

support to pupils enrolled in the district's dropout recovery

program.

(b) "Education management organization" means a private

provider that operates 1 or more other dropout recovery programs

that meet the requirements of this section in partnership with 1 or

more districts.

school under the mandatory expulsion provisions in section 1311 or

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

pupil who has been suspended or expelled from school under a local

policy, a pupil who is referred by a court, a pupil who is pregnant

or is a parent, a pupil who was previously a dropout, or a pupil

who is determined by the district to be at risk of dropping out.

(d) "Satisfactory monthly progress" means an amount of

progress that is measurable on a monthly basis and that, if

continued for a full 12 months, would result in the same amount of

academic credit being awarded to the pupil as would be awarded to a

general education pupil completing a full school year. Satisfactory

monthly progress may include a lesser required amount of progress

for the first 2 months a pupil participates in the program.

(e) "Teacher of record" means a teacher who holds a valid

Michigan teaching certificate; who, if applicable, is endorsed in

the subject area and grade of the course; and is responsible for

providing instruction, determining 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.

(f) ~~(e)~~ "Written learning plan" means a written plan developed

in conjunction with the advocate that includes the plan start and

end dates, courses to be taken, credit to be earned for each

course, teacher of record for each course, and advocate name and

contact information.

Sec. 24. (1) From the appropriation in section 11, there is

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

$8,000,000.00 for payments to the educating district or

intermediate district for educating pupils assigned by a court or

the department of health and human services to reside in or to

attend a juvenile detention facility or child caring institution

licensed by the department of health and human services and

approved by the department to provide an on-grounds education

program. The amount of the payment under this section to a district

or intermediate district shall be calculated as prescribed under

subsection (2).

(2) The total amount allocated under this section shall be

allocated by paying to the educating district or intermediate

district an amount equal to the lesser of the district's or

intermediate district's added cost or the department's approved

per-pupil allocation for the district or intermediate district. For

the purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils assigned by a court or the department of

health and human services to reside in or to attend a juvenile

detention facility or child caring institution licensed by the

department of health and human services or the department of

licensing and regulatory affairs and approved by the department to

provide an on-grounds education program. Added cost shall be

computed by deducting all other revenue received under this article

for pupils described in this section from total costs, as approved

by the department, in whole or in part, for educating those pupils

in the on-grounds education program or in a program approved by the

department that is located on property adjacent to a juvenile

detention facility or child caring institution. Costs reimbursed by

federal funds are not included.

(b) "Department's approved per-pupil allocation" for a

district or intermediate district shall be determined by dividing

the total amount allocated under this section for a fiscal year by

the full-time equated membership total for all pupils approved by

the department to be funded under this section for that fiscal year

for the district or intermediate district.

(3) A district or intermediate district educating pupils

described in this section at a residential child caring institution

may operate, and receive funding under this section for, a

department-approved on-grounds educational program for those pupils

that is longer than 181 days, but not longer than 233 days, if the

child caring institution was licensed as a child caring institution

and offered in 1991-92 an on-grounds educational program that was

longer than 181 days but not longer than 233 days and that was

operated by a district or intermediate district.

(4) Special education pupils funded under section 53a shall

not be funded under this section.

Sec. 24a. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$2,189,800.00~~ $1,301,000.00 for

2015-2016 and there is allocated an amount not to exceed

$1,328,100.00 for 2016-2017 for payments to intermediate districts

for pupils who are placed in juvenile justice service facilities

operated by the department of health and human services. Each

intermediate district shall receive an amount equal to the state

share of those costs that are clearly and directly attributable to

the educational programs for pupils placed in facilities described

in this section that are located within the intermediate district's

boundaries. The intermediate districts receiving payments under

this section shall cooperate with the department of health and

human services to ensure that all funding allocated under this

section is utilized by the intermediate district and department of

health and human services for educational programs for pupils

described in this section. Pupils described in this section are not

eligible to be funded under section 24. However, a program

responsibility or other fiscal responsibility associated with these

pupils shall not be transferred from the department of health and

human services to a district or intermediate district unless the

district or intermediate district consents to the transfer.

Sec. 24c. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$1,497,400.00 for 2015-2016~~

$1,522,400.00 for 2016-2017 for payments to districts for pupils

who are enrolled in a nationally administered community-based

education and youth mentoring program, known as the youth challenge

program, that is administered by the department of military and

veterans affairs. Both of the following apply to a district

receiving payments under this section:

(a) The district shall contract with the department of

military and veterans affairs to ensure that all funding allocated

under this section is utilized by the district and the department

of military and veterans affairs for the youth challenge program.

(b) The district may retain for its administrative expenses an

amount not to exceed 3% of the amount of the payment the district

receives under this section.

Sec. 25f. (1) From the state school aid fund money

appropriated in section 11, there is allocated an amount not to

exceed ~~$1,000,000.00 for 2015-2016~~ $250,000.00 for 2016-2017 for

payments to strict discipline academies established under sections

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

380.1311m, as provided under this section.

~~(2) In order to receive funding under this section, a strict~~

~~discipline academy shall first comply with section 25e and use the~~

~~pupil transfer process under that section for changes in enrollment~~

~~as prescribed under that section.~~

(2) ~~(3)~~ The total amount allocated to a strict discipline

academy under this section is an amount equal to the lesser of the

strict discipline academy's added cost or the department's approved

per-pupil allocation for the strict discipline academy. However,

the sum of the amounts received by a strict discipline academy

under this section and under section 24 shall not exceed the

product of the strict discipline academy's per-pupil allocation

calculated under section 20 multiplied by the strict discipline

academy's full-time equated membership. The department shall

allocate funds to strict discipline academies under this section on

a monthly basis. For the purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils enrolled and in regular daily attendance

at a strict discipline academy. Added cost shall be computed by

deducting all other revenue received under this article for pupils

described in this subsection from total costs, as approved by the

department, in whole or in part, for educating those pupils in a

strict discipline academy. The department shall include all costs

including, but not limited to, educational costs, insurance,

management fees, technology costs, legal fees, auditing fees,

interest, pupil accounting costs, and any other administrative

costs necessary to operate the program or to comply with statutory

requirements. Costs reimbursed by federal funds are not included.

(b) "Department's approved per-pupil allocation" for a strict

discipline academy shall be determined by dividing the total amount

allocated under this subsection for a fiscal year by the full-time

equated membership total for all pupils approved by the department

to be funded under this subsection for that fiscal year for the

strict discipline academy.

(3) ~~(4)~~ Special education pupils funded under section 53a

shall not be funded under this section.

(4) ~~(5)~~ If the funds allocated under this section are

insufficient to fully fund the adjustments under subsection (3),

payments under this section shall be prorated on an equal per-pupil

basis.

(5) ~~(6)~~ Payments to districts under this section shall be made

according to the payment schedule under section 17b.

Sec. 25g. (1) From the state school aid fund money

appropriated in section 11, there is allocated an amount not to

exceed ~~$1,000,000.00 for 2015-2016~~ $250,000.00 for 2016-2017 for

the purposes of this section. If the operation of the special

membership counting provisions under section 6(4)(dd) and the other

membership counting provisions under section 6(4) result in a pupil

being counted as more than 1.0 FTE in a fiscal year, then the

payment made for the pupil under sections 22a and 22b shall not be

based on more than 1.0 FTE for that pupil, and that portion of the

FTE that exceeds 1.0 shall be paid under this section in an amount

equal to that portion multiplied by the educating district's

foundation allowance or per-pupil payment calculated under section

20.

(2) Special education pupils funded under section 53a shall

not be funded under this section.

(3) If the funds allocated under this section are insufficient

to fully fund the adjustments under subsection (1), payments under

this section shall be prorated on an equal per-pupil basis.

(4) Payments to districts under this section shall be made

according to the payment schedule under section 17b.

Sec. 26a. From the funds appropriated in section 11, there is

allocated an amount not to exceed ~~$26,300,000.00~~ $20,000,000.00 for

2015-2016 and there is allocated an amount not to exceed

$20,000,000.00 for 2016-2017 to reimburse districts and

intermediate districts pursuant to section 12 of the Michigan

renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied

in ~~2015.~~ 2016. The allocations shall be made not later than 60 days

after the department of treasury certifies to the department and to

the state budget director that the department of treasury has

received all necessary information to properly determine the

amounts due to each eligible recipient.

Sec. 26b. (1) From the appropriation in section 11, there is

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

~~$4,276,800.00~~ $4,405,100.00 for payments to districts, intermediate

districts, and community college districts for the portion of the

payment in lieu of taxes obligation that is attributable to

districts, intermediate districts, and community college districts

pursuant to section 2154 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.2154.

(2) If the amount appropriated under this section is not

sufficient to fully pay obligations under this section, payments

shall be prorated on an equal basis among all eligible districts,

intermediate districts, and community college districts.

Sec. 26c. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$610,000.00~~ $278,000.00 for 2015-

2016 and there is allocated an amount not to exceed $1,000,000.00

for 2016-2017 to the promise zone fund created in subsection (3).

(2) Funds allocated to the promise zone fund under this

section shall be used solely for payments to eligible districts and

intermediate districts that have a promise zone development plan

approved by the department of treasury under section 7 of the

Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

(3) The promise zone fund is created as a separate account

within the state school aid fund to be used solely for the purposes

of the Michigan promise zone authority act, 2008 PA 549, MCL

390.1661 to 390.1679. All of the following apply to the promise

zone fund:

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

promise zone fund. The state treasurer shall credit to the promise

zone fund interest and earnings from fund investments.

House Bill No. 5291 as amended April 26, 2016

(b) Money in the promise zone fund at the close of a fiscal

year shall remain in the promise zone fund and shall not lapse to

the general fund.

(4) Subject to subsection (2), the state treasurer may make

payments from the promise zone fund to eligible districts and

intermediate districts pursuant to the Michigan promise zone

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

for the purposes of a promise zone authority created under that

act.

Sec. 31a. (1) From the state school aid fund money

appropriated in section 11, there is allocated for ~~2015-2016~~ 2016-

2017 an amount not to exceed ~~$389,695,500.00~~ $407,695,500.00 for

payments to eligible districts, eligible public school academies,

and the education achievement system for the purposes of ensuring

that pupils are proficient in reading by the end of grade 3 and

that high school graduates are career and college ready and for the

purposes under subsections (7) and (8).

[(2) ~~For a district or public school academy, or the education~~

~~achievement system, to be eligible to receive funding under this~~

~~section, other than funding under subsection (7) or (8),~~ From the funds

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

exceed $378,988,200.00 for funding under this section, other than

payments under subsections (7) and (8), for districts, public school

academies, and education achievement systems for which the sum of the

district's or public school academy's or the education achievement

system's combined state and local revenue per membership pupil in the

current state fiscal year, as calculated under section 20, ~~must be~~ is

House Bill No. 5291 as amended April 26, 2016

less than or equal to the basic foundation allowance under section 20 for

the current state fiscal year.

]

(3) For a district or public school academy that operates

grades K to 3, or the education achievement system, to be eligible

to receive funding under this section, other than funding under

subsection (7) or (8), the district or public school academy, or

the education achievement system, must implement, for at least

grades K to 3, a multi-tiered system of supports that is an

evidence-based model that uses data-driven problem solving to

integrate academic and behavioral instruction and that uses

intervention delivered to all pupils in varying intensities based

on pupil needs. This multi-tiered system of supports must provide

at least all of the following essential elements:

(a) Implements effective instruction for all learners.

(b) Intervenes early.

intervention that provides the following:

(i) A core curriculum and classroom interventions available to

all pupils that meet the needs of most pupils.

(ii) Targeted group interventions.

(iii) Intense individual interventions.

(d) Monitors pupil progress to inform instruction.

(e) Uses data to make instructional decisions.

(f) Uses assessments including universal screening,

diagnostics, and progress monitoring.

(g) Engages families and the community.

(h) Implements evidence-based, scientifically validated,

instruction and intervention.

(i) Implements instruction and intervention practices with

fidelity.

(j) Uses a collaborative problem-solving model.

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

eligible district or eligible public school academy or the

education achievement system shall receive under this section for

each membership pupil in the district or public school academy or

the education achievement system who met the income eligibility

criteria for free breakfast, lunch, or milk, as determined under

the Richard B. Russell national school lunch act, 42 USC 1751 to

1769, and as reported to the department in the form and manner

prescribed by the department not later than the fifth Wednesday

after the pupil membership count day of the immediately preceding

fiscal year and adjusted not later than December 31 of the

immediately preceding fiscal year, an amount per pupil equal to

11.5% of the sum of the district's foundation allowance or the

public school academy's or the education achievement system's per

pupil amount calculated under section 20 plus the amount of the

district's per-pupil allocation under section 20j, not to exceed

the basic foundation allowance under section 20 for the current

state fiscal year, or of the public school academy's or the

education achievement system's per membership pupil amount

calculated under section 20 for the current state fiscal year.

However, a public school academy that began operations as a public

school academy, or an achievement school that began operations as

an achievement school, after the pupil membership count day of the

immediately preceding school year shall receive under this section

for each membership pupil in the public school academy or in the

education achievement system who met the income eligibility

criteria for free breakfast, lunch, or milk, as determined under

the Richard B. Russell national school lunch act and as reported to

the department not later than the fifth Wednesday after the pupil

membership count day of the current fiscal year and adjusted not

later than December 31 of the current fiscal year, an amount per

pupil equal to 11.5% of the public school academy's or the

education achievement system's per membership pupil amount

calculated under section 20 for the current state fiscal year.

(5) Except as otherwise provided in this section, a district

or public school academy, or the education achievement system,

receiving funding under this section shall use that money only to

provide instructional programs and direct noninstructional

services, including, but not limited to, medical, mental health, or

counseling services, for at-risk pupils; for school health clinics;

and for the purposes of subsection (6), (7), (8), or (11). In

addition, a district that is a school district of the first class

or a district or public school academy in which at least 50% of the

pupils in membership met the income eligibility criteria for free

breakfast, lunch, or milk in the immediately preceding state fiscal

year, as determined and reported as described in subsection (4), or

the education achievement system if it meets this requirement, may

use not more than 20% of the funds it receives under this section

for school security. A district, the public school academy, or the

education achievement system shall not use any of that money for

administrative costs. The instruction or direct noninstructional

services provided under this section may be conducted before or

after regular school hours or by adding extra school days to the

school year.

(6) A district or public school academy that receives funds

under this section and that operates a school breakfast program

under section 1272a of the revised school code, MCL 380.1272a, or

the education achievement system if it operates a school breakfast

program, shall use from the funds received under this section an

amount, not to exceed $10.00 per pupil for whom the district or

public school academy or the education achievement system receives

funds under this section, necessary to pay for costs associated

with the operation of the school breakfast program.

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

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

~~$3,557,300.00~~ $5,557,300.00 to support child and adolescent health

centers. These grants shall be awarded for 5 consecutive years

beginning with 2003-2004 in a form and manner approved jointly by

the department and the department of health and human services.

Each grant recipient shall remain in compliance with the terms of

the grant award or shall forfeit the grant award for the duration

of the 5-year period after the noncompliance. To continue to

receive funding for a child and adolescent health center under this

section a grant recipient shall ensure that the child and

adolescent health center has an advisory committee and that at

least one-third of the members of the advisory committee are

parents or legal guardians of school-aged children. A child and

adolescent health center program shall recognize the role of a

child's parents or legal guardian in the physical and emotional

well-being of the child. Funding under this subsection shall be

used to support child and adolescent health center services

provided to children up to age 21. If any funds allocated under

this subsection are not used for the purposes of this subsection

for the fiscal year in which they are allocated, those unused funds

shall be used that fiscal year to avoid or minimize any proration

that would otherwise be required under subsection (12) for that

fiscal year. ~~In addition to the funds otherwise allocated under~~

~~this subsection, from the money allocated in subsection (1), there~~

~~is allocated an amount not to exceed $2,000,000.00 for 2015-2016~~

~~only for child and adolescent health centers to increase access to~~

~~nurses and behavioral health services in schools, using 3 existing~~

~~school clinics as hubs for services and using mobile teams to serve~~

~~satellite school sites.~~

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

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

$5,150,000.00 for the state portion of the hearing and vision

screenings as described in section 9301 of the public health code,

1978 PA 368, MCL 333.9301. A local public health department shall

pay at least 50% of the total cost of the screenings. The frequency

of the screenings shall be as required under R 325.13091 to R

325.13096 and R 325.3271 to R 325.3276 of the Michigan

administrative code. Funds shall be awarded in a form and manner

approved jointly by the department and the department of health and

human services. Notwithstanding section 17b, payments to eligible

entities under this subsection shall be paid on a schedule

determined by the department.

(9) Each district or public school academy receiving funds

under this section and the education achievement system shall

submit to the department by July 15 of each fiscal year a report,

not to exceed 10 pages, on the usage by the district or public

school academy or the education achievement system of funds under

this section, which report shall include a brief description of

each program conducted or services performed by the district or

public school academy or the education achievement system using

funds under this section, the amount of funds under this section

allocated to each of those programs or services, the total number

of at-risk pupils served by each of those programs or services, and

the data necessary for the department and the department of health

and human services to verify matching funds for the temporary

assistance for needy families program. If a district or public

school academy or the education achievement system does not comply

with this subsection, the department shall withhold an amount equal

to the August payment due under this section until the district or

public school academy or the education achievement system complies

with this subsection. If the district or public school academy or

the education achievement system does not comply with this

subsection by the end of the state fiscal year, the withheld funds

House Bill No. 5291 as amended April 26, 2016

shall be forfeited to the school aid fund.

(10) In order to receive funds under this section, a district

or public school academy or the education achievement system shall

allow access for the department or the department's designee to

audit all records related to the program for which it receives

those funds. The district or public school academy or the education

achievement system shall reimburse the state for all disallowances

found in the audit.

(11) Subject to subsections (6), (7), and (8), a district may

use up to 100% of the funds it receives under this section to

implement schoolwide reform in schools with 40% or more of their

pupils identified as at-risk pupils by providing ~~supplemental~~

instructional or noninstructional services consistent with the

school improvement plan.

[(12) If necessary, and before any proration required under

section 296, the department shall prorate payments under this section by

as follows:

(a) For a district, public school academy, or education achievement

system that receives funding under subsection (2), by reducing the amount

of the per pupil payment under ~~this section~~ subsection (2) by a dollar

amount calculated by determining the amount by which the amount necessary

to fully fund the requirements of ~~this section~~ subsection (2) exceeds the

maximum amount allocated under ~~this section~~ subsection (2) and then

dividing that amount by the total statewide number of pupils enrolled in

districts, public school academies, and education achievement systems receiving funding under subsection (2) who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding fiscal year, as described in subsection (4).

(b) For a district, public school academy, or education achievement system that receives funding under subsection (19), by reducing the amount of the per pupil payment under subsection (19) by a dollar amount calculated by determining the amount by which the amount necessary to fully fund the requirements of subsection (19) exceeds the maximum amount allocated under subsection (19) and then dividing that amount by the total statewide number of pupils enrolled in districts, public school academies, and education achievement systems receiving funding under subsection (19) who met the income eligibility criteria for free breakfast, lunch, or milk in the immediately preceding fiscal year, as described in subsection (4).]

(13) If a district is formed by consolidation after June 1,

1995, and if 1 or more of the original districts were not eligible

before the consolidation for an additional allowance under this

section, the amount of the additional allowance under this section

for the consolidated district shall be based on the number of

pupils described in subsection (1) enrolled in the consolidated

district who reside in the territory of an original district that

was eligible before the consolidation for an additional allowance

under this section. In addition, if a district is dissolved

pursuant to section 12 of the revised school code, MCL 380.12, the

intermediate district to which the dissolved school district was

constituent shall determine the estimated number of pupils that

meet the income eligibility criteria for free breakfast, lunch, or

milk, as described under subsection (4), enrolled in each of the

other districts within the intermediate district and provide that

estimate to the department for the purposes of distributing funds

under this section within 60 days after the school district is

declared dissolved.

(14) As used in this section, "at-risk pupil" means a pupil

for whom the district has documentation that the pupil meets any of

the following criteria:

(a) Is a victim of child abuse or neglect.

(b) Is a pregnant teenager or teenage parent.

substance abuse.

(d) For pupils for whom the results of the state summative

assessment have been received, is a pupil who did not achieve

proficiency on the English language arts, mathematics, science, or

social studies content area assessment.

(e) Is a pupil who is at risk of not meeting the district's

core academic curricular objectives in English language arts or

mathematics, as demonstrated on local assessments.

(f) The pupil is enrolled in a priority or priority-successor

school, as defined in the elementary and secondary education act of

2001 flexibility waiver approved by the United States Department of

Education.

(g) In the absence of state or local assessment data, the

pupil meets at least 2 of the following criteria, as documented in

a form and manner approved by the department:

(i) The pupil is eligible for free or reduced price breakfast,

lunch, or milk.

(ii) The pupil is absent more than 10% of enrolled days or 10

school days during the school year.

(iii) The pupil is homeless.

(iv) The pupil is a migrant.

(v) The pupil is an English language learner.

(vi) The pupil is an immigrant who has immigrated within the

immediately preceding 3 years.

(vii) The pupil did not complete high school in 4 years and is

still continuing in school as identified in the Michigan cohort

graduation and dropout report.

(15) Beginning in 2018-2019, if a district, public school

academy, or the education achievement system does not demonstrate

to the satisfaction of the department that at least 50% of at-risk

pupils are ~~reading at grade level~~ proficient in English language

arts by the end of grade 3 as measured by the state assessment for

the immediately preceding school year and demonstrate to the

satisfaction of the department improvement over each of the 3

immediately preceding school years in the percentage of at-risk

pupils that are career- and college-ready as determined by

proficiency on the English language arts, mathematics, and science

content area assessments on the grade 11 summative assessment under

section 1279g(2)(a) of the revised school code, MCL 380.1279g, the

district, public school academy, or education achievement system

shall ensure all of the following:

(a) The district, public school academy, or the education

achievement system shall determine the proportion of total at-risk

pupils that represents the number of pupils in grade 3 that are not

~~reading at grade level~~ proficient in English language arts by the

end of grade 3, and the district, public school academy, or the

education achievement system shall expend that same proportion

multiplied by 1/2 of its total at-risk funds under this section on

tutoring and other methods of improving grade 3 ~~reading levels.~~

English language arts proficiency.

(b) The district, public school academy, or the education

achievement system shall determine the proportion of total at-risk

pupils that represent the number of pupils in grade 11 that are not

career- and college-ready as measured by the student's score on the

English language arts, mathematics, and science content area

assessments on the grade 11 summative assessment under section

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

district, public school academy, or the education achievement

system shall expend that same proportion multiplied by 1/2 of its

total at-risk funds under this section on tutoring and other

House Bill No. 5291 as amended April 26, 2016

activities to improve scores on the college entrance examination

portion of the Michigan merit examination.

(16) As used in subsection (15), "total at-risk pupils" means

the sum of the number of pupils in grade 3 that are not ~~reading at~~

~~grade level~~ proficient in English language arts by the end of third

grade as measured on the state assessment and the number of pupils

in grade 11 that are not career- and college-ready as measured by

the student's score on the English language arts, mathematics, and

science content area assessments on the grade 11 summative

assessment under section 1279g(2)(a) of the revised school code,

MCL 380.1279g.

(17) A district or public school academy that receives funds

under this section or the education achievement system may use

funds received under this section to provide an anti-bullying or

crisis intervention program.

(18) The department shall collaborate with the department of

health and human services to prioritize assigning Pathways to

Potential Success coaches to elementary schools that have a high

percentage of pupils in grades K to 3 who are not reading at grade

level.

[(19) From the funds allocated under subsection (1), there is allocated an amount not to exceed $18,000,000.00 for funding under this section, other than payments under subsections (7) and (8), for districts, public school academies, and education achievement systems for which the sum of the district's or public school academy's or the education achievement system's combined state and local revenue per membership pupil in the current state fiscal year, as calculated under section 20, plus the amount of the district's per pupil allocation under section 20j, is greater than the basic foundation allowance under section 20 for the current state fiscal year.]

Sec. 31b. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $3,500,000.00 for 2016-2017 for

grants to at-risk districts for implementing a year-round

instructional program for at least 1 of its schools.

(2) The department shall select districts for grants under

this section from among applicant districts that meet both of the

following:

(a) The district meets 1 or both of the following:

(i) Is eligible in 2016-2017 for the community eligibility

option for free and reduced price lunch under 42 USC 1759a.

(ii) At least 50% of the pupils in membership in the district

met the income eligibility criteria for free breakfast, lunch, or

milk in the immediately preceding state fiscal year, as determined

under the Richard B. Russell national school lunch act, 42 USC 1751

to 1769i.

(b) The board of the district has adopted a resolution stating

that the district will implement for the first time a year-round

instructional calendar that will begin in 2017-2018 for at least 1

school operated by the district and committing to providing the

year-round instructional calendar in each of those schools for at

least 3 school years.

(3) A district seeking a grant under this section shall apply

to the department in the form and manner prescribed by the

department not later than May 1, 2017. The department shall select

districts for grants and make notification not later than June 1,

2017.

(4) The department shall award grants under this section on a

competitive basis, but shall give priority based solely on

consideration of the following criteria:

(a) Giving priority to districts with lower general fund

balances as a percent of revenues.

(b) Giving priority to districts that operate at least 1

school that has been identified by the department as either a

priority school or a focus school.

districts.

(5) The amount of a grant under this section to any 1 district

shall not exceed $750,000.00.

(6) A grant payment under this section to a district shall be

used for necessary modifications to instructional facilities and

other nonrecurring costs of preparing for the operation of a year-

round instructional program as approved by the department.

(7) A district receiving a grant under this section is not

required to provide more than the minimum number of days and hours

of pupil instruction prescribed under section 101, but shall spread

at least those minimum amounts of pupil instruction over the entire

year in each of its schools in which a year-round instructional

calendar is implemented. The district shall commit to providing the

year-round instructional calendar in each of those schools for at

least 3 school years.

(8) For a district receiving a grant under this section,

excessive heat is considered to be a condition not within the

control of school authorities for the purpose of days or hours

being counted as days or hours of pupil instruction under section

101(4).

(9) Notwithstanding section 17b, grant payments to districts

under this section shall be paid on a schedule determined by the

department.

Sec. 31c. (1) from the funds appropriated in section 11, there

is allocated an amount not to exceed ~~$1,000,000.00 for 2015-2016~~

$4,000,000.00 for 2016-2017 for programs intended to improve public

safety, reduce the number of youth involved in gang-related

activity, and increase high school graduation rates.

(2) The department shall award grants to districts that form

partnerships with nonprofit organizations, law enforcement, and

other community resources to provide programs that divert young

adults from gang-related criminal activity.

(3) Grants awarded under this section may include, but are not

limited to, grants for any of the following activities:

(a) Employment training and placement programs.

(b) Counseling services.

resources for continuing education, court advocacy, and health

care.

(d) Outreach programs to educate participants and their

families.

(4) Each grant recipient under this section shall partner with

a university to collect data necessary to evaluate the

effectiveness of programs in reducing violent crime and gang-

related activity in the community.

Sec. 31d. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $22,495,100.00 for ~~2015-2016~~

2016-2017 for the purpose of making payments to districts and other

eligible entities under this section.

(2) The amounts allocated from state sources under this

section shall be used to pay the amount necessary to reimburse

districts for 6.0127% of the necessary costs of the state mandated

portion of the school lunch programs provided by those districts.

The amount due to each district under this section shall be

computed by the department using the methods of calculation adopted

by the Michigan supreme court in the consolidated cases known as

Durant v State of Michigan, Michigan supreme court docket no.

104458-104492.

(3) The payments made under this section include all state

payments made to districts so that each district receives at least

6.0127% of the necessary costs of operating the state mandated

portion of the school lunch program in a fiscal year.

(4) The payments made under this section to districts and

other eligible entities that are not required under section 1272a

of the revised school code, MCL 380.1272a, to provide a school

lunch program shall be in an amount not to exceed $10.00 per

eligible pupil plus 5 cents for each free lunch and 2 cents for

each reduced price lunch provided, as determined by the department.

(5) From the federal funds appropriated in section 11, there

is allocated for ~~2015-2016~~ 2016-2017 all available federal funding,

estimated at $510,000,000.00 for the national school lunch program

and all available federal funding, estimated at $3,200,000.00 for

the emergency food assistance program.

(6) Notwithstanding section 17b, payments to eligible entities

other than districts under this section shall be paid on a schedule

determined by the department.

(7) In purchasing food for a school lunch program funded under

this section, preference shall be given to food that is grown or

produced by Michigan businesses if it is competitively priced and

of comparable quality.

Sec. 31f. (1) From the appropriations in section 11, there is

allocated an amount not to exceed ~~$5,625,000.00~~ $2,500,000.00 for

2015-2016 and there is allocated an amount not to exceed

$2,500,000.00 for 2016-2017 for the purpose of making payments to

districts to reimburse for the cost of providing breakfast.

(2) The funds allocated under this section for school

breakfast programs shall be made available to all eligible

applicant districts that meet all of the following criteria:

(a) The district participates in the federal school breakfast

program and meets all standards as prescribed by 7 CFR parts 220

and 245.

(b) Each breakfast eligible for payment meets the federal

standards described in subdivision (a).

(3) The payment for a district under this section is at a per

meal rate equal to the lesser of the district's actual cost or 100%

of the statewide average cost of a breakfast served, as determined

and approved by the department, less federal reimbursement,

participant payments, and other state reimbursement. The statewide

average cost shall be determined by the department using costs as

reported in a manner approved by the department for the preceding

school year.

(4) Notwithstanding section 17b, payments under this section

may be made pursuant to an agreement with the department.

(5) In purchasing food for a school breakfast program funded

under this section, preference shall be given to food that is grown

or produced by Michigan businesses if it is competitively priced

and of comparable quality.

Sec. 32d. (1) From the funds appropriated in section 11, there

is allocated to eligible intermediate districts and consortia of

intermediate districts for great start readiness programs an amount

not to exceed $243,600,000.00 for ~~2015-2016.~~ 2016-2017. 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.~~September 1 of the school year in which

the program is offered and shall meet those eligibility and

prioritization guidelines.

(2) Funds allocated under subsection (1) shall be allocated to

intermediate districts or consortia of intermediate districts based

on the formula in section 39. An intermediate district or

consortium of intermediate districts receiving funding under this

section shall act as the fiduciary for the great start readiness

programs. In order to be eligible to receive funds allocated under

this subsection from an intermediate district or consortium of

intermediate districts, a district, a consortium of districts, or a

public or private for-profit or nonprofit legal entity or agency

shall comply with this section and section 39.

(3) In addition to the allocation under subsection (1), from

the general fund money appropriated under section 11, there is

allocated an amount not to exceed $300,000.00 for ~~2015-2016~~ 2016-

2017 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.

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 and shall be prioritized for enrollment

within the lowest quintile.

for this program, as follows:

(i) Teachers possessing proper training. A lead teacher must

have a valid teaching certificate with an early childhood (ZA or

ZS) endorsement or a bachelor's or higher degree in child

development or early ~~child development~~ childhood education with

specialization in preschool teaching. However, if an applicant

demonstrates to the department that it is unable to fully comply

with this subparagraph after making reasonable efforts to comply,

teachers who have significant but incomplete training in early

childhood education or child development may be used if the

applicant provides to the department, and the department approves,

a plan for each teacher to come into compliance with the standards

in this subparagraph. A teacher's compliance plan must be completed

within 2 years of the date of employment. Progress toward

completion of the compliance plan shall consist of at least 2

courses per calendar year.

(ii) Paraprofessionals possessing proper training in early

childhood ~~development,~~ education, including an associate's degree

in early childhood education or child development or the

equivalent, or a child development associate (CDA) credential.

However, if an applicant demonstrates to the department that it is

unable to fully comply with this subparagraph after making

reasonable efforts to comply, the applicant may use

paraprofessionals who have completed at least 1 course that earns

college credit in early childhood education or child development if

the applicant provides to the department, and the department

approves, a plan for each paraprofessional to come into compliance

with the standards in this subparagraph. A paraprofessional's

compliance plan must be completed within 2 years of the date of

employment. Progress toward completion of the compliance plan shall

consist of at least 2 courses or 60 clock hours of training per

calendar year.

(d) Include a program budget that contains only those costs

that are not reimbursed or reimbursable by federal funding, that

are clearly and directly attributable to the great start readiness

program, and that would not be incurred if the program were not

being offered. Eligible costs include transportation costs. The

program budget shall indicate the extent to which these funds will

supplement other federal, state, local, or private funds. Funds

received under this section shall not be used to supplant any

federal funds received by the applicant to serve children eligible

for a federally funded preschool program that has the capacity to

serve those children.

(6) For a grant recipient that enrolls pupils in a school-day

program funded under this section, each child enrolled in the

school-day program shall be counted as ~~2 children served by the~~

~~program~~ described in section 39 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).~~subsections (4) and (5).

(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~~ for the portion of the total grant amount for which

services are either provided directly or contracted ~~, the~~ by an

intermediate district or consortium of intermediate districts. The

intermediate district or consortium of intermediate districts

receiving the grant may retain an amount equal to not more than 4%

5% of that portion of the grant amount. ~~and the subrecipients~~ A

subrecipient engaged by the intermediate district ~~to provide~~

~~program services may retain for administrative services an amount~~

~~equal to not more than 4% of that portion of the grant amount.~~shall

be considered a contractor to provide direct services for eligible

children.

(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 and shall be prioritized for enrollment

within the lowest quintile.

(12) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall allow parents

of eligible children who are residents of the intermediate district

or within the consortium to choose a program operated by or

contracted with another intermediate district or consortium of

intermediate districts and shall ~~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.~~enter into a written agreement regarding payment, in a

manner prescribed the department.

(13) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall conduct a

local process to contract with interested and eligible public and

private for-profit and nonprofit community-based providers that

meet all requirements of subsection (4) for at least 30% of its

total 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

nonparticipating 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, in a manner

prescribed by the department. ~~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

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium information

regarding great start readiness program requirements and a

description of the application and selection process for community-

based providers.

public and to participating families a list of community-based

great start readiness program subrecipients with a great start to

quality rating of at least 3 stars.

(14) If an intermediate district or consortium of intermediate

districts receiving a grant under this section fails to submit

satisfactory evidence to demonstrate its effort to contract for at

least 30% of its total 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.

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~~ December 1 of each year, compile

the results of the information reported by each intermediate

district or consortium under subsection (10) 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 health

and human services in a manner consistent with maximizing the

amount of spending that may be claimed for temporary assistance for

needy families maintenance of effort purposes.

(17) As used in this section:

(a) "GSRP/head start blended program" means a part-day program

funded under this section and a head start program, which are

combined for a school-day program.

(b) "Part-day program" means a program that operates at least

4 days per week, 30 weeks per year, for at least 3 hours of

teacher-child contact time per day but for fewer hours of teacher-

child contact time per day than a school-day program.

least the same length of day as a district's first grade program

for a minimum of 4 days per week, 30 weeks per year. A classroom

that offers a school-day program must enroll all children for the

school day to be considered a school-day program.

(18) An intermediate district or consortium of intermediate

districts receiving funds under this section shall establish 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) 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,

~~2015,~~ 2016, a program funded under this section that provides

transportation shall submit to the intermediate district that is

the fiscal agent for the program a projected transportation budget.

The amount of the reimbursement for transportation under this

subsection shall be no more than the projected transportation

budget or $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. 32p. (1) From the school aid fund appropriation in

section 11, there is allocated an amount not to exceed

$13,400,000.00 to intermediate districts for ~~2015-2016~~ 2016-2017

for the purpose of providing early childhood funding to

intermediate school districts to support the activities under

subsection (2) and subsection (4), and to provide early childhood

programs for children from birth through age 8. The funding

provided to each intermediate district under this section shall be

determined by the distribution formula established by the

department's office of great start to provide equitable funding

statewide. In order to receive funding under this section, each

intermediate district shall provide an application to the office of

great start not later than September 15 of the immediately

preceding fiscal year indicating the activities planned to be

provided.

(2) Each intermediate district or consortium of intermediate

districts that receives funding under this section shall convene a

local great start collaborative and a parent coalition. The goal of

each great start collaborative and parent coalition shall be to

ensure the coordination and expansion of local early childhood

infrastructure and programs that allow every child in the community

to achieve the following outcomes:

(a) Children born healthy.

(b) Children healthy, thriving, and developmentally on track

from birth to third grade.

time of school entry.

(d) Children prepared to succeed in fourth grade and beyond by

reading proficiently by the end of third grade.

(3) Each local great start collaborative and parent coalition

shall convene workgroups to make recommendations about community

services designed to achieve the outcomes described in subsection

(2) and to ensure that its local great start system includes the

following supports for children from birth through age 8:

(a) Physical health.

(b) Social-emotional health.

(d) Parent education.

(e) Early education and care.

(4) From the funds allocated in subsection (1), at least

$2,500,000.00 shall be used for the purpose of providing home

visits to at-risk children and their families. The home visits

shall be conducted as part of a locally coordinated, family-

centered, evidence-based, data-driven home visit strategic plan

that is approved by the department. The goals of the home visits

funded under this subsection shall be to improve school readiness,

reduce the number of pupils retained in grade level, and reduce the

number of pupils requiring special education services. The

department shall coordinate the goals of the home visit strategic

plans approved under this subsection with other state agency home

visit programs in a way that strengthens Michigan's home visiting

infrastructure and maximizes federal funds available for the

purposes of at-risk family home visits.

(5) Not later than December 1 of each year, each intermediate

district shall provide a report to the department detailing the

activities actually provided during the immediately preceding

school year and the families and children actually served. At a

minimum, the report shall include an evaluation of the services

provided with additional funding under subsection (4) for home

visits, using the goals identified in subsection (4) as the basis

for the evaluation, including the degree to which school readiness

was improved, any change in the number of pupils retained at grade

level, and any change in the number of pupils receiving special

education services. The department shall compile and summarize

these reports and submit its summary to the house and senate

appropriations subcommittees on school aid and to the house and

senate fiscal agencies not later than February 15 of each year.

(6) An intermediate district or consortium of intermediate

districts that receives funding under this section may carry over

any unexpended funds received under this section into the next

fiscal year and may expend those unused funds through June 30 of

the next fiscal year. A recipient of a grant shall return any

unexpended grant funds to the department in the manner prescribed

by the department not later than September 30 of the next fiscal

year after the fiscal year in which the funds are received.

Sec. 35. (1) The funds allocated under section 35a shall be

used for programs to ensure children are reading at grade level by

the end of grade 3. The superintendent shall designate staff or

contracted employees funded under section 35a as critical shortage.

Programs funded under section 35a are intended to ensure that this

state will be in the top 10 most improved states in grade 4 reading

proficiency by the 2019 National Assessment of Educational Progress

(NAEP) and will be in the top 10 states overall in grade 4 reading

proficiency by 2025.

(2) From the general fund appropriation in section 11, there

is allocated to the department an amount not to exceed

$1,000,000.00 for ~~2015-2016~~ 2016-2017 for implementation costs

associated with programs funded under section 35a.

~~(3) From the amount allocated under subsection (2), there is~~

~~allocated an amount not to exceed $100,000.00 for the purpose of~~

~~performing an evaluation of the pilot programs under section 35a(2)~~

~~in a manner approved by the department. The evaluation report shall~~

~~include at least all of the following:~~

~~(a) A description of the components of the pilot programs that~~

~~were effective in helping parents prepare their children for~~

~~success in school.~~

~~(b) A description of any barriers that parents and their~~

~~children encountered that prevented them from participating in the~~

~~pilot programs.~~

~~(c) An assessment of whether these pilot programs should be~~

~~expanded to other locations in the state.~~

Sec. 35a. (1) From the appropriations in section 11, there is

allocated for ~~2015-2016~~ 2016-2017 for the purposes of this section

an amount not to exceed ~~$23,900,000.00~~ $22,900,000.00 from the

state school aid fund. ~~appropriation and an amount not to exceed~~

~~$1,500,000.00 from the general fund appropriation.~~

~~(2) From the allocations under subsection (1), there is~~

~~allocated an amount not to exceed $1,000,000.00 for 2015-2016 for~~

~~the purpose of conducting parent education pilot programs for~~

~~parents of children less than 4 years of age so that children are~~

~~developmentally ready to succeed in school at the time of school~~

~~entry. All of the following apply to programs funded under this~~

~~subsection:~~

~~(a) The department shall develop a competitive application~~

~~process and method of grant distribution consistent with the~~

~~provisions of this subsection. The amount of a grant award to a~~

~~pilot program shall be an amount equal to the number of children~~

~~residing in the district or consortium of districts operating the~~

~~program who are younger than 4 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,~~

~~multiplied by $120.00 per child or $130,000.00, whichever is less.~~

~~The department shall ensure that grants are awarded in each~~

~~prosperity region or subregion.~~

~~(b) An application for a competitive grant under this~~

~~subsection shall be submitted by an intermediate district on behalf~~

~~of a district or consortium of districts within the intermediate~~

~~district. The application shall be submitted in a form and manner~~

~~approved by the department and shall contain at least the following~~

~~components:~~

(i~~) A description of the program design including the names of~~

~~the district or consortium of districts that will operate the~~

~~program, the physical location of the program, and the anticipated~~

~~number of families that will be served.~~

(ii~~) An assurance that the program will be supervised by a~~

~~teacher who has a valid teaching certificate with an early~~

~~childhood (ZA or ZS) endorsement, a valid teaching certificate in~~

~~career education with both a KH and VH endorsement, a bachelor's~~

~~degree in child development or early child development, or a~~

~~bachelor's degree related to adult learning.~~

(~~iii~~~~) An estimate of the number of families residing in the~~

~~district or consortium of districts that will operate the pilot~~

~~program that have at least 1 child less than 4 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.~~

(iv~~) A description of the public awareness and outreach~~

~~efforts that will be made.~~

(v~~) An assurance that the intermediate district and the~~

~~district or consortium of districts operating the program will~~

~~provide information in a form and manner as approved by the~~

~~department to allow for an evaluation of the pilot projects.~~

(vi~~) A description of the sliding fee scale that will be~~

~~established for tuition, with fees reduced or waived for those~~

~~unable to pay.~~

(~~vii~~~~) A budget for the program. A program may use not more~~

~~than 5% of a grant to administer the program.~~

~~(c) To be eligible for a grant under this subsection, a~~

~~program shall provide at least 2 hours per week throughout the~~

~~school year for parents and their eligible children to participate~~

~~in parent education programs and meet at least the following~~

~~minimum requirements:~~

(i~~) Require that parents be physically present in classes with~~

~~their children or be in concurrent classes.~~

(ii~~) Use research-based information to educate parents about~~

~~the physical, cognitive, social, and emotional development of~~

~~children.~~

(~~iii~~~~) Provide structured learning activities requiring~~

~~interaction between children and their parents.~~

(iv~~) Provide structured learning activities for children that~~

~~promote positive interaction with their peers.~~

~~(d) For a child to be eligible to participate in a program~~

~~under this subsection, the child shall be less than 4 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) ~~(3)~~ From the allocations under subsection (1), there is

allocated an amount not to exceed $950,000.00 for ~~2015-2016~~ 2016-

2017 for professional development purposes under this subsection.

This allocation represents the ~~first~~ second of 2 years of funding

for the purposes of this subsection. All of the following apply to

funding under this subsection:

(a) The department shall award grants to districts to support

professional development for educators in a department-approved

research-based training program related to current state literacy

standards for pupils in grades K to 3. The professional development

shall also include training in the use of screening and diagnostic

tools, progress monitoring, and intervention methods used to

address barriers to learning and delays in learning that are

diagnosed through the use of these tools. The department shall

determine the amount of the grant awards.

(b) In addition to other methods of professional development

delivery, the department shall collaborate with the Michigan

Virtual University to provide this training online to all educators

of pupils in grades K to 3.

project appropriation, and any unexpended funds for ~~2015-2016~~ 2016-

2017 are carried forward into ~~2016-2017.~~ 2017-2018. The purpose of

the work project is to continue to implement the professional

development training described in this subsection. The estimated

completion date of the work project is September 30, ~~2017.~~2018.

(3) ~~(4)~~ From the allocations under subsection (1), there is

allocated an amount not to exceed $1,450,000.00 for ~~2015-2016~~ 2016-

2017 for grants under this subsection. This allocation represents

the ~~first~~ second of 2 years of funding. All of the following apply

to grants under this subsection:

(a) The department shall award grants to districts to

administer department-approved screening and diagnostic tools to

monitor the development of early literacy and early reading skills

of pupils in grades K to 3 and to support research-based

professional development for educators in administering screening

and diagnostic tools and in data interpretation of the results

obtained through the use of those tools for the purpose of

implementing a multi-tiered system of support to improve reading

proficiency among pupils in grades K to 3. The department shall

award grants to eligible districts in an amount determined by the

department.

(b) In addition to other methods of professional development

delivery, the department shall collaborate with the Michigan

Virtual University to provide this training online to all educators

of pupils in grades K to 3.

project appropriation, and any unexpended funds for ~~2015-2016~~ 2016-

2017 are carried forward into ~~2016-2017.~~ 2017-2018. The purpose of

the work project is to continue to implement the professional

development training described in this subsection. The estimated

completion date of the work project is September 30, ~~2017.~~2018.

(4) ~~(5)~~ From the allocations under subsection (1), there is

allocated an amount not to exceed $3,000,000.00 for 2016-2017 for

the purpose of providing early literacy coaches at intermediate

districts to assist teachers in developing and implementing

instructional strategies for pupils in grades K to 3 so that pupils

are reading at grade level by the end of grade 3. All of the

following apply to funding under this subsection:

(a) The department shall develop an application process

consistent with the provisions of this subsection. An application

shall provide assurances that literacy coaches funded under this

subsection are knowledgeable about at least the following:

(i) Current state literacy standards for pupils in grades K to

(ii) Implementing an instructional delivery model based on

frequent use of formative, screening, and diagnostic tools, known

as a multi-tiered system of support, to determine individual

progress for pupils in grades K to 3 so that pupils are reading at

grade level by the end of grade 3.

(iii) The use of data from diagnostic tools to determine the

necessary additional supports and interventions needed by

individual pupils in grades K to 3 in order to be reading at grade

level.

(b) From the allocation under this subsection, the department

shall award grants to intermediate districts for the support of

early literacy coaches. An intermediate district must provide

matching funds for at least 50% of the cost of the literacy coach.

The department shall provide this funding in the following manner:

(i) Each intermediate district shall be awarded grant funding

to support the cost of 1 early literacy coach in an equal amount

per early literacy coach, not to exceed $37,500.00.

(ii) After distribution of the grant funding under

subparagraph (i), the department shall distribute the remainder of

grant funding for additional early literacy coaches in an amount

not to exceed $37,500.00 per early literacy coach. The number of

funded early literacy coaches for each intermediate district shall

be based on the percentage of the total statewide number of pupils

in grades K to 3 who meet the income eligibility standards for the

federal free and reduced-price lunch programs who are enrolled in

districts in the intermediate district. For each additional early

literacy coach funded under this subparagraph, the department shall

not make an award to an intermediate district under this

subparagraph in an amount that is less than the amount necessary to

pay 1/2 of the total cost of that additional early literacy coach.

project appropriation, and any unexpended funds for ~~2015-2016~~ 2016-

2017 are carried forward into ~~2016-2017.~~ 2017-2018. The purpose of

the work project is to continue to provide early literacy coaches

as described in this subsection. The estimated completion date of

the work project is September 30, ~~2017.~~2018.

(5) ~~(6)~~ From the allocations under subsection (1), there is

allocated an amount not to exceed $17,500,000.00 for ~~2015-2016~~

2016-2017 to districts that provide additional instructional time

to those pupils in grades K to 3 who have been identified by using

department-approved screening and diagnostic tools as needing

additional supports and interventions in order to be reading at

grade level by the end of grade 3. Additional instructional time

may be provided before, during, and after regular school hours or

as part of a year-round balanced school calendar. All of the

following apply to funding under this subsection:

(a) In order to be eligible to receive funding, a district

shall demonstrate to the satisfaction of the department that the

district has done all of the following:

(i) Implemented a multi-tiered system of support instructional

delivery model that is an evidence-based model that uses data-

driven problem solving to integrate academic and behavioral

instruction and that uses intervention delivered to all pupils in

varying intensities based on pupil needs. The multi-tiered system

of supports must provide at least all of the following essential

elements:

(A) Implements effective instruction for all learners.

(B) Intervenes early.

intervention that provides the following: a core curriculum and

classroom interventions available to all pupils that meet the needs

of most pupils; targeted group interventions; and intense

individual interventions.

(D) Monitors pupil progress to inform instruction.

(E) Uses data to make instructional decisions.

(F) Uses assessments including universal screening,

diagnostics, and progress monitoring.

(G) Engages families and the community.

(H) Implements evidence-based, scientifically validated,

instruction and intervention.

(I) Implements instruction and intervention practices with

fidelity.

(J) Uses a collaborative problem-solving model.

(ii) Used department-approved research-based diagnostic tools

to identify individual pupils in need of additional instructional

time.

(iii) Used a reading instruction method that focuses on the 5

fundamental building blocks of reading: phonics, phonemic

awareness, fluency, vocabulary, and comprehension and content

knowledge.

(iv) Provided teachers of pupils in grades K to 3 with

research-based professional development in diagnostic data

interpretation.

(b) Funding allocated under this subsection shall be

distributed to eligible districts by multiplying the number of

full-time-equivalent pupils in grade 1 in the district by $165.00.

insufficient to fully fund the payments under this subsection,

payments under this subsection shall be prorated on an equal per-

pupil basis based on grade 1 pupils.

~~(7) From the general fund money allocated in subsection (1),~~

~~the department shall allocate the amount of $1,000,000.00 for 2015-~~

~~2016 to the Michigan Education Corps. All of the following apply to~~

~~funding under this subsection:~~

~~(a) By August 1, 2016, the Michigan Education Corps shall~~

~~provide a report concerning its use of the funding to the senate~~

~~and house appropriations subcommittees on state school aid, the~~

~~senate and house fiscal agencies, and the senate and house caucus~~

~~policy offices on outcomes and performance measures of the Michigan~~

~~Education Corps, including, but not limited to, the degree to which~~

~~the Michigan Education Corps's replication of the Michigan Reading~~

~~Corps program is demonstrating sufficient efficacy and impact. The~~

~~report must include data pertaining to at least all of the~~

~~following:~~

(i~~) The current impact of the Michigan Reading Corps on this~~

~~state in terms of numbers of children and programs receiving~~

~~support. This portion of the report shall specify the number of~~

~~children tutored, including dosage and completion, and the~~

~~demographics of those children.~~

(ii~~) Whether the assessments and interventions are implemented~~

~~with fidelity. This portion of the report shall include details on~~

~~the total number of assessments and interventions completed and the~~

~~range, median, mean, and standard deviation for all assessments.~~

(~~iii~~~~) Whether the literacy improvement of children~~

~~participating in the Michigan Reading Corps is consistent with~~

~~expectations. This portion of the report shall detail at least all~~

~~of the following:~~

~~(A) Growth rate by grade level, in comparison to targeted~~

~~growth rate.~~

~~(B) Average linear growth rates.~~

~~(C) Exit rates.~~

~~(D) Percentage of children who exit who also meet or exceed~~

~~spring benchmarks.~~

(iv~~) The impact of the Michigan Reading Corps on organizations~~

~~and stakeholders, including, but not limited to, school~~

~~administrators, internal coaches, and AmeriCorps members.~~

~~(b) If the department determines that the Michigan Education~~

~~Corps has misused the funds allocated under this subsection, the~~

~~Michigan Education Corps shall reimburse this state for the amount~~

~~of state funding misused.~~

~~(8) From the general fund money allocated under subsection~~

~~(1), there is allocated to the department an amount not to exceed~~

~~$500,000.00 for 2015-2016 for the adoption of a certification test~~

~~to ensure that all newly certificated elementary teachers have the~~

~~skills to deliver evidence-based literacy instruction.~~

Sec. 39. (1) An eligible applicant receiving funds under

section 32d shall submit an application, in a form and manner

prescribed by the department, by a date specified by the department

in the immediately preceding state fiscal year. The application

shall include a comprehensive needs assessment using aggregated

data from the applicant's entire service area and a community

collaboration plan that is endorsed by the local great start

collaborative and is part of the community's great start strategic

plan that includes, but is not limited to, great start readiness

program and head start providers, and shall identify all of the

following:

(a) The estimated total number of children in the community

who meet the criteria of section 32d and how that calculation was

made.

(b) The estimated number of children in the community who meet

the criteria of section 32d and are being served by other early

childhood development programs operating in the community, and how

that calculation was made.

slots the applicant will be able to fill with children who meet the

criteria of section 32d including a verification of physical

facility and staff resources capacity.

(d) The estimated number of slots that will remain unfilled

and children who meet the criteria of section 32d who will remain

unserved after the applicant and community early childhood programs

have met their funded enrollments. The applicant shall maintain a

waiting list of identified unserved eligible children who would be

served when openings are available.

(2) After notification of funding allocations, an applicant

receiving funds under section 32d shall also submit an

implementation plan for approval, in a form and manner prescribed

by the department, by a date specified by the department, that

details how the applicant complies with the program components

established by the department pursuant to section 32d.

(3) The number of prekindergarten children construed to be in

need of special readiness assistance under section 32d shall be

calculated for each applicant in the following manner: 1/2 of the

percentage of the applicant's pupils in grades 1 to 5 in all

districts served by the applicant who are eligible for free lunch,

as determined using the district's pupil membership count as of the

pupil membership count day in the school year prior to the fiscal

year for which the calculation is made, under the Richard B.

Russell national school lunch act, 42 USC 1751 to 1769i, shall be

multiplied by the average kindergarten enrollment of the districts

served by the applicant on the pupil membership count day of the 2

immediately preceding fiscal years. Each child construed to be in

need constitutes 1 slot.

(4) The initial allocation for each fiscal year to each

eligible applicant under section 32d shall be determined by

multiplying the number of ~~children~~ slots determined by the formula

under subsection (3) or the number of ~~children~~ slots the applicant

indicates it will be able to ~~serve~~ fill under subsection (1)(c),

whichever is less, by $3,625.00 and shall be distributed among

applicants in decreasing order of concentration of eligible

children as determined by the formula under subsection (3). If the

number of ~~children~~ slots an applicant indicates it will be able to

~~serve~~ fill under subsection (1)(c) includes children able to be

served in a school-day program, then the number ~~able to be served~~

in of slots for a school-day program shall be doubled for the

purposes of making this calculation. ~~of the lesser of the number of~~

~~children determined by the formula under subsection (3) and the~~

~~number of children the applicant indicates it will be able to serve~~

~~under subsection (1)(c) and determining the amount of the initial~~

~~allocation to the applicant under section 32d.~~ A district may

contract with a head start agency to serve children enrolled in

head start with a school-day program by blending head start funds

with a part-day great start readiness program allocation. All head

start and great start readiness program policies and regulations

apply to the blended program.

(5) If funds allocated for eligible applicants under section

32d remain after the initial allocation under subsection (4), the

allocation under this subsection shall be distributed to each

eligible applicant under section 32d in decreasing order of

concentration of eligible children as determined by the formula

under subsection (3). The allocation shall be determined by

multiplying the number of ~~children~~ slots in each district within

the applicant's service area ~~served~~ filled in the immediately

preceding fiscal year or the number of ~~children~~ slots the applicant

indicates it will be able to ~~serve~~ fill under subsection (1)(c),

whichever is less, minus the number of ~~children~~ slots for which the

applicant received funding in subsection (4) by $3,625.00.

(6) If funds allocated for eligible applicants under section

32d remain after the allocations under subsections (4) and (5),

remaining funds shall be distributed to each eligible applicant

under section 32d in decreasing order of concentration of eligible

children as determined by the formula under subsection (3). If the

number of ~~children~~ slots the applicant indicates it will be able to

~~serve~~ fill under subsection (1)(c) exceeds the number of ~~children~~

slots for which funds have been received under subsections (4) and

(5), the allocation under this subsection shall be determined by

multiplying the number of ~~children~~ slots the applicant indicates it

will be able to ~~serve~~ fill under subsection (1)(c) less the number

of ~~children~~ slots for which funds have been received under

subsections (4) and (5) by $3,625.00 until the funds allocated for

eligible applicants in section 32d are distributed.

~~(7) An applicant that offers supplementary child care funded~~

~~by funds other than those received under section 32d and therefore~~

~~offers full-day programs as part of its early childhood development~~

~~program shall receive priority in the allocation of funds under~~

~~section 32d over other eligible applicants. As used in this~~

~~subsection, "full-day program" means a program that provides~~

~~supplementary child care that totals at least 10 hours of~~

~~programming per day.~~

(7) ~~(8)~~ If, taking into account the total amount to be

allocated to the applicant as calculated under this section, an

applicant determines that it is able to include additional eligible

children in the great start readiness program without additional

funds under section 32d, the applicant may include additional

eligible children but shall not receive additional funding under

section 32d for those children.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated for ~~2015-2016~~ 2016-2017 to districts,

intermediate districts, and other eligible entities all available

federal funding, estimated at ~~$779,076,400.00~~ $821,939,900.00 for

the federal programs under the no child left behind act of 2001,

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

114-95. These funds are allocated as follows:

(a) An amount estimated at ~~$5,000,000.00~~ $2,000,000.00 to

provide students with drug- and violence-prevention programs and to

implement strategies to improve school safety, funded from DED-

OESE, drug-free schools and communities funds.

(b) An amount estimated at $111,111,900.00 for the purpose of

preparing, training, and recruiting high-quality teachers and class

size reduction, funded from DED-OESE, improving teacher quality

funds.

teach English to limited English proficient (LEP) children, funded

from DED-OESE, language acquisition state grant funds.

(d) An amount estimated at ~~$10,286,500.00~~ $250,000.00 for the

Michigan charter school subgrant program, funded from DED-OESE,

charter school funds.

(e) An amount estimated at $3,000,000.00 for rural and low

income schools, funded from DED-OESE, rural and low income school

funds.

(f) An amount estimated at $565,000,000.00 to provide

supplemental programs to enable educationally disadvantaged

children to meet challenging academic standards, funded from DED-

OESE, title I, disadvantaged children funds.

(g) An amount estimated at $8,878,000.00 for the purpose of

identifying and serving migrant children, funded from DED-OESE,

title I, migrant education funds.

(h) An amount estimated at $39,000,000.00 for the purpose of

providing high-quality extended learning opportunities, after

school and during the summer, for children in low-performing

schools, funded from DED-OESE, twenty-first century community

learning center funds.

(i) An amount estimated at $24,600,000.00 to help support

local school improvement efforts, funded from DED-OESE, title I,

local school improvement grants.

(j) An amount estimated at $55,900,000.00 to improve the

academic achievement of students, funded from DED-OESE, title IV,

student support and academic enrichment grants.

(2) From the federal funds appropriated in section 11, there

is allocated for ~~2015-2016~~ 2016-2017 to districts, intermediate

districts, and other eligible entities all available federal

funding, estimated at $30,800,000.00 for the following programs

that are funded by federal grants:

(a) An amount estimated at $200,000.00 for acquired

immunodeficiency syndrome education grants, funded from HHS �

Centers for Disease Control and Prevention, AIDS funding.

(b) An amount estimated at $2,600,000.00 to provide services

to homeless children and youth, funded from DED-OVAE, homeless

children and youth funds.

health, substance abuse, or violence prevention services to

students, funded from HHS-SAMHSA.

(d) An amount estimated at $24,000,000.00 for providing career

and technical education services to pupils, funded from DED-OVAE,

basic grants to states.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(4) For the purposes of applying for federal grants

appropriated under this article, the department shall allow an

intermediate district to submit a consortium application on behalf

of 2 or more districts with the agreement of those districts as

appropriate according to federal rules and guidelines.

(5) As used in this section:

(a) "DED" means the United States Department of Education.

(b) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

Education.

(d) "HHS" means the United States Department of Health and

Human Services.

(e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

Health Services Administration.

Sec. 41. From the appropriation in section 11, there is

allocated an amount not to exceed $1,200,000.00 for ~~2015-2016~~ 2016-

2017 to applicant districts and intermediate districts offering

programs of instruction for pupils of limited English-speaking

ability under section 1153 of the revised school code, MCL

380.1153. Reimbursement shall be on a per-pupil basis and shall be

based on the number of pupils of limited English-speaking ability

in membership on the pupil membership count day. Funds allocated

under this section shall be used solely for instruction in

speaking, reading, writing, or comprehension of English. A pupil

shall not be counted under this section or instructed in a program

under this section for more than 3 years.

Sec. 51a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$901,946,100.00~~ $947,246,100.00

for ~~2014-2015~~ 2015-2016 and an amount not to exceed ~~$918,546,100.00~~

~~for 2015-2016~~ $973,046,100.00 for 2016-2017 from state sources and

all available federal funding under sections 611 to 619 of part B

of the individuals with disabilities education act, 20 USC 1411 to

1419, estimated at $370,000,000.00 each fiscal year ~~for 2014-2015~~

~~and~~ for 2015-2016 , and for 2016-2017, plus any carryover federal

funds from previous year appropriations. The allocations under this

subsection are for the purpose of reimbursing districts and

intermediate districts for special education programs, services,

and special education personnel as prescribed in article 3 of the

revised school code, MCL 380.1701 to 380.1766; net tuition payments

made by intermediate districts to the Michigan schools for the deaf

and blind; and special education programs and services for pupils

who are eligible for special education programs and services

according to statute or rule. For meeting the costs of special

education programs and services not reimbursed under this article,

a district or intermediate district may use money in general funds

or special education funds, not otherwise restricted, or

contributions from districts to intermediate districts, tuition

payments, gifts and contributions from individuals or other

entities, or federal funds that may be available for this purpose,

as determined by the intermediate district plan prepared pursuant

to article 3 of the revised school code, MCL 380.1701 to 380.1766.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

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

allocated the amount necessary, estimated at ~~$248,100,000.00 for~~

~~2014-2015~~ $264,100,000.00 for 2015-2016 and estimated at

~~$251,800,000.00 for 2015-2016,~~ $271,600,000.00 for 2016-2017, for

payments toward reimbursing districts and intermediate districts

for 28.6138% of total approved costs of special education,

excluding costs reimbursed under section 53a, and 70.4165% of total

approved costs of special education transportation. Allocations

under this subsection shall be made as follows:

(a) The initial amount allocated to a district under this

subsection toward fulfilling the specified percentages shall be

calculated by multiplying the district's special education pupil

membership, excluding pupils described in subsection (11), times

the foundation allowance under section 20 of the pupil's district

of residence plus the amount of the district's per-pupil allocation

under section 20j, not to exceed the basic foundation allowance

under section 20 for the current fiscal year, or, for a special

education pupil in membership in a district that is a public school

academy, times an amount equal to the amount per membership pupil

calculated under section 20(6) or, for a pupil described in this

subsection who is counted in membership in the education

achievement system, times an amount equal to the amount per

membership pupil under section 20(7). For an intermediate district,

the amount allocated under this subdivision toward fulfilling the

specified percentages shall be an amount per special education

membership pupil, excluding pupils described in subsection (11),

and shall be calculated in the same manner as for a district, using

the foundation allowance under section 20 of the pupil's district

of residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year, and that district's per-

pupil allocation under section 20j.

(b) After the allocations under subdivision (a), districts and

intermediate districts for which the payments calculated under

subdivision (a) do not fulfill the specified percentages shall be

paid the amount necessary to achieve the specified percentages for

the district or intermediate district.

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

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

$1,000,000.00 and there is allocated for ~~2015-2016~~ 2016-2017 an

amount not to exceed ~~$1,300,000.00~~ $1,100,000.00 to make payments

to districts and intermediate districts under this subsection. If

the amount allocated to a district or intermediate district for a

fiscal year under subsection (2)(b) is less than the sum of the

amounts allocated to the district or intermediate district for

1996-97 under sections 52 and 58, there is allocated to the

district or intermediate district for the fiscal year an amount

equal to that difference, adjusted by applying the same proration

factor that was used in the distribution of funds under section 52

in 1996-97 as adjusted to the district's or intermediate district's

necessary costs of special education used in calculations for the

fiscal year. This adjustment is to reflect reductions in special

education program operations or services between 1996-97 and

subsequent fiscal years. Adjustments for reductions in special

education program operations or services shall be made in a manner

determined by the department and shall include adjustments for

program or service shifts.

(4) If the department determines that the sum of the amounts

allocated for a fiscal year to a district or intermediate district

under subsection (2)(a) and (b) is not sufficient to fulfill the

specified percentages in subsection (2), then the shortfall shall

be paid to the district or intermediate district during the fiscal

year beginning on the October 1 following the determination and

payments under subsection (3) shall be adjusted as necessary. If

the department determines that the sum of the amounts allocated for

a fiscal year to a district or intermediate district under

subsection (2)(a) and (b) exceeds the sum of the amount necessary

to fulfill the specified percentages in subsection (2), then the

department shall deduct the amount of the excess from the

district's or intermediate district's payments under this article

for the fiscal year beginning on the October 1 following the

determination and payments under subsection (3) shall be adjusted

as necessary. However, if the amount allocated under subsection

(2)(a) in itself exceeds the amount necessary to fulfill the

specified percentages in subsection (2), there shall be no

deduction under this subsection.

(5) State funds shall be allocated on a total approved cost

basis. Federal funds shall be allocated under applicable federal

requirements, except that an amount not to exceed $3,500,000.00 may

be allocated by the department each fiscal year for ~~2014-2015~~ 2015-

2016 and for ~~2015-2016~~ 2016-2017 to districts, intermediate

districts, or other eligible entities on a competitive grant basis

for programs, equipment, and services that the department

determines to be designed to benefit or improve special education

on a statewide scale.

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

allocated an amount not to exceed $2,200,000.00 each fiscal year

~~for 2014-2015 and~~ for 2015-2016 and for 2016-2017 to reimburse 100%

of the net increase in necessary costs incurred by a district or

intermediate district in implementing the revisions in the

administrative rules for special education that became effective on

July 1, 1987. As used in this subsection, "net increase in

necessary costs" means the necessary additional costs incurred

solely because of new or revised requirements in the administrative

rules minus cost savings permitted in implementing the revised

rules. Net increase in necessary costs shall be determined in a

manner specified by the department.

(7) For purposes of sections 51a to 58, all of the following

apply:

(a) "Total approved costs of special education" shall be

determined in a manner specified by the department and may include

indirect costs, but shall not exceed 115% of approved direct costs

for section 52 and section 53a programs. The total approved costs

include salary and other compensation for all approved special

education personnel for the program, including payments for social

security and Medicare and public school employee retirement system

contributions. The total approved costs do not include salaries or

other compensation paid to administrative personnel who are not

special education personnel as defined in section 6 of the revised

school code, MCL 380.6. Costs reimbursed by federal funds, other

than those federal funds included in the allocation made under this

article, are not included. Special education approved personnel not

utilized full time in the evaluation of students or in the delivery

of special education programs, ancillary, and other related

services shall be reimbursed under this section only for that

portion of time actually spent providing these programs and

services, with the exception of special education programs and

services provided to youth placed in child caring institutions or

juvenile detention programs approved by the department to provide

an on-grounds education program.

(b) Beginning with the 2004-2005 fiscal year, a district or

intermediate district that employed special education support

services staff to provide special education support services in

2003-2004 or in a subsequent fiscal year and that in a fiscal year

after 2003-2004 receives the same type of support services from

another district or intermediate district shall report the cost of

those support services for special education reimbursement purposes

under this article. This subdivision does not prohibit the transfer

of special education classroom teachers and special education

classroom aides if the pupils counted in membership associated with

those special education classroom teachers and special education

classroom aides are transferred and counted in membership in the

other district or intermediate district in conjunction with the

transfer of those teachers and aides.

fiscal year that the amounts allocated for that fiscal year under

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

will exceed expenditures for that fiscal year under subsections

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

district or intermediate district whose reimbursement for that

fiscal year would otherwise be affected by subdivision (b),

subdivision (b) does not apply to the calculation of the

reimbursement for that district or intermediate district and

reimbursement for that district or intermediate district shall be

calculated in the same manner as it was for 2003-2004. If the

amount of the excess allocations under subsections (2), (3), (6),

and (11) and sections 53a, 54, and 56 is not sufficient to fully

fund the calculation of reimbursement to those districts and

intermediate districts under this subdivision, then the

calculations and resulting reimbursement under this subdivision

shall be prorated on an equal percentage basis. Beginning in 2015-

2016, the amount of reimbursement under this subdivision for a

fiscal year shall not exceed $2,000,000.00 for any district or

intermediate district.

(d) Reimbursement for ancillary and other related services, as

defined by R 340.1701c of the Michigan administrative code, shall

not be provided when those services are covered by and available

through private group health insurance carriers or federal

reimbursed program sources unless the department and district or

intermediate district agree otherwise and that agreement is

approved by the state budget director. Expenses, other than the

incidental expense of filing, shall not be borne by the parent. In

addition, the filing of claims shall not delay the education of a

pupil. A district or intermediate district shall be responsible for

payment of a deductible amount and for an advance payment required

until the time a claim is paid.

(e) Beginning with calculations for 2004-2005, if an

intermediate district purchases a special education pupil

transportation service from a constituent district that was

previously purchased from a private entity; if the purchase from

the constituent district is at a lower cost, adjusted for changes

in fuel costs; and if the cost shift from the intermediate district

to the constituent does not result in any net change in the revenue

the constituent district receives from payments under sections 22b

and 51c, then upon application by the intermediate district, the

department shall direct the intermediate district to continue to

report the cost associated with the specific identified special

education pupil transportation service and shall adjust the costs

reported by the constituent district to remove the cost associated

with that specific service.

(8) A pupil who is enrolled in a full-time special education

program conducted or administered by an intermediate district or a

pupil who is enrolled in the Michigan schools for the deaf and

blind shall not be included in the membership count of a district,

but shall be counted in membership in the intermediate district of

residence.

(9) Special education personnel transferred from 1 district to

another to implement the revised school code shall be entitled to

the rights, benefits, and tenure to which the person would

otherwise be entitled had that person been employed by the

receiving district originally.

(10) If a district or intermediate district uses money

received under this section for a purpose other than the purpose or

purposes for which the money is allocated, the department may

require the district or intermediate district to refund the amount

of money received. Money that is refunded shall be deposited in the

state treasury to the credit of the state school aid fund.

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

allocated the amount necessary, estimated at ~~$3,400,000.00 for~~

~~2014-2015~~ $4,000,000.00 for 2015-2016 and estimated at

~~$3,300,000.00 for 2015-2016,~~ $3,700,000.00 for 2016-2017, to pay

the foundation allowances for pupils described in this subsection.

The allocation to a district under this subsection shall be

calculated by multiplying the number of pupils described in this

subsection who are counted in membership in the district times sum

of the foundation allowance under section 20 of the pupil's

district of residence plus the amount of the district's per-pupil

allocation under section 20j, not to exceed the basic foundation

allowance under section 20 for the current fiscal year, or, for a

pupil described in this subsection who is counted in membership in

a district that is a public school academy, times an amount equal

to the amount per membership pupil under section 20(6) or, for a

pupil described in this subsection who is counted in membership in

the education achievement system, times an amount equal to the

amount per membership pupil under section 20(7). The allocation to

an intermediate district under this subsection shall be calculated

in the same manner as for a district, using the foundation

allowance under section 20 of the pupil's district of residence,

not to exceed the basic foundation allowance under section 20 for

the current fiscal year, and that district's per-pupil allocation

under section 20j. This subsection applies to all of the following

pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district

who are not special education pupils and are served by the

intermediate district in a juvenile detention or child caring

facility.

by an intermediate district and provided educational services by

the department of health and human services.

(12) If it is determined that funds allocated under subsection

(2) or (11) or under section 51c will not be expended, funds up to

the amount necessary and available may be used to supplement the

allocations under subsection (2) or (11) or under section 51c in

order to fully fund those allocations. After payments under

subsections (2) and (11) and section 51c, the remaining

expenditures from the allocation in subsection (1) shall be made in

the following order:

(a) 100% of the reimbursement required under section 53a.

(b) 100% of the reimbursement required under subsection (6).

(d) 100% of the payment required under subsection (3).

(e) 100% of the payments under section 56.

(13) The allocations under subsections (2), (3), and (11)

shall be allocations to intermediate districts only and shall not

be allocations to districts, but instead shall be calculations used

only to determine the state payments under section 22b.

(14) If a public school academy enrolls pursuant to this

section a pupil who resides outside of the intermediate district in

which the public school academy is located and who is eligible for

special education programs and services according to statute or

rule, or who is a child with disabilities, as defined under the

individuals with disabilities education act, Public Law 108-446,

the provision of special education programs and services and the

payment of the added costs of special education programs and

services for the pupil are the responsibility of the district and

intermediate district in which the pupil resides unless the

enrolling district or intermediate district has a written agreement

with the district or intermediate district in which the pupil

resides or the public school academy for the purpose of providing

the pupil with a free appropriate public education and the written

agreement includes at least an agreement on the responsibility for

the payment of the added costs of special education programs and

services for the pupil.

(15) ~~It is the intent of the legislature that, beginning~~

Beginning in 2016-2017, a district, public school academy, or

intermediate district that fails to comply with subsection (14) or

with the requirements of federal regulations regarding the

treatment of public school academies and public school academy

pupils for the purposes of special education, 34 CFR 300.209,

forfeits from its total state aid an amount equal to 10% of its

total state aid.

Sec. 51c. As required by the court in the consolidated cases

known as Durant v State of Michigan, Michigan supreme court docket

no. 104458-104492, from the allocation under section 51a(1), there

is allocated each fiscal year for ~~2014-2015~~ 2015-2016 and for ~~2015-~~

~~2016~~ 2016-2017 the amount necessary, estimated at ~~$597,300,000.00~~

~~for 2014-2015~~ $626,000,000.00 for 2015-2016 and estimated at

~~$610,000,000.00 for 2015-2016,~~ $644,500,000.00 for 2016-2017, for

payments to reimburse districts for 28.6138% of total approved

costs of special education excluding costs reimbursed under section

53a, and 70.4165% of total approved costs of special education

transportation. Funds allocated under this section that are not

expended in the state fiscal year for which they were allocated, as

determined by the department, may be used to supplement the

allocations under sections 22a and 22b in order to fully fund those

calculated allocations for the same fiscal year.

Sec. 51d. (1) From the federal funds appropriated in section

11, there is allocated for ~~2015-2016,~~ 2016-2017, all available

federal funding, estimated at $71,000,000.00, for special education

programs and services that are funded by federal grants. All

federal funds allocated under this section shall be distributed in

accordance with federal law. Notwithstanding section 17b, payments

of federal funds to districts, intermediate districts, and other

eligible entities under this section shall be paid on a schedule

determined by the department.

(2) From the federal funds allocated under subsection (1), the

following amounts are allocated for ~~2015-2016:~~2016-2017:

(a) An amount estimated at $14,000,000.00 for handicapped

infants and toddlers, funded from DED-OSERS, handicapped infants

and toddlers funds.

(b) An amount estimated at $12,000,000.00 for preschool grants

(Public Law 94-142), funded from DED-OSERS, handicapped preschool

incentive funds.

education programs funded by DED-OSERS, handicapped program,

individuals with disabilities act funds.

(3) As used in this section, "DED-OSERS" means the United

States Department of Education Office of Special Education and

Rehabilitative Services.

Sec. 53a. (1) For districts, reimbursement for pupils

described in subsection (2) shall be 100% of the total approved

costs of operating special education programs and services approved

by the department and included in the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1766, minus the district's foundation allowance

calculated under section 20 and minus the district's per-pupil

allocation under section 20j. For intermediate districts,

reimbursement for pupils described in subsection (2) shall be

calculated in the same manner as for a district, using the

foundation allowance under section 20 of the pupil's district of

residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year, and that district's per-

pupil allocation under section 20j.

(2) Reimbursement under subsection (1) is for the following

special education pupils:

(a) Pupils assigned to a district or intermediate district

through the community placement program of the courts or a state

agency, if the pupil was a resident of another intermediate

district at the time the pupil came under the jurisdiction of the

court or a state agency.

(b) Pupils who are residents of institutions operated by the

department of health and human services.

health institutions for the developmentally disabled who are placed

in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds

educational program longer than 180 days, but not longer than 233

days, at a residential child care institution, if the child care

institution offered in 1991-92 an on-grounds educational program

longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of

seeking a suitable home, if the parent does not reside in the same

intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly

attributable to educational programs for pupils described in

subsection (2), and that would not have been incurred if the pupils

were not being educated in a district or intermediate district, are

reimbursable under this section.

(4) The costs of transportation shall be funded under this

section and shall not be reimbursed under section 58.

(5) Not more than $10,500,000.00 of the allocation for ~~2015-~~

~~2016~~ 2016-2017 in section 51a(1) shall be allocated under this

section.

Sec. 54. Each intermediate district shall receive an amount

per-pupil for each pupil in attendance at the Michigan schools for

the deaf and blind. The amount shall be proportionate to the total

instructional cost at each school. Not more than $1,688,000.00 of

the allocation for ~~2015-2016~~ 2016-2017 in section 51a(1) shall be

allocated under this section.

Sec. 54b. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed $1,370,000.00 for

2016-2017 to begin implementation of the recommendations of the

special education reform task force published in January 2016.

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

for 2016-2017 an amount not to exceed $750,000.00 for the purpose

of piloting statewide implementation of the Michigan Integrated

Behavior and Learning Support Initiative (MiBLSI), a nationally

recognized program that includes positive behavioral intervention

and supports and provides a statewide structure to support local

initiatives for an integrated behavior and reading program. With

the assistance of the intermediate districts involved in MiBLSI,

the department shall identify at least 3 intermediate districts to

participate in the pilot to ensure that MiBLSI can be implemented

statewide with fidelity and sustainability. In addition, the

department shall identify an intermediate district to act as a

fiscal agent for these funds.

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

for 2016-2017 an amount not to exceed $620,000.00 for the purpose

of providing training to intermediate districts and districts

related to the safe implementation of emergency restraints and

seclusion. The department shall develop and implement a training

program that is based on the state board's adopted standards and on

any other legislation enacted by the legislature regarding the

emergency use of seclusion and restraint.

Sec. 55. (1) From the money appropriated in section 11, there

is allocated an amount not to exceed $150,000.00 for ~~2015-2016~~

2016-2017 to Michigan State University, Department of Epidemiology,

for a study of the Conductive Learning Center located at Aquinas

College. This funding shall be used to develop and implement an

evaluation of the effectiveness of conductive education for

children with cerebral palsy. The evaluation shall be

multidimensional and shall include a control group of children with

cerebral palsy not enrolled in conductive education. It should

include an assessment of the motor system itself as well as the

impact of conductive education on each of the following:

(a) The acquisition of skills permitting complex motor

functions.

(b) The performance of tasks essential to daily living.

(d) The long-term need for special education for children with

cerebral palsy.

(2) ~~It is the intent of the legislature that this~~ This funding

is for the ~~first~~ second of 2 years of funding for this purpose.

Sec. 56. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district.

(b) "Millage levied" means the millage levied for special

education pursuant to part 30 of the revised school code, MCL

380.1711 to 380.1743, including a levy for debt service

obligations.

districts constituent to an intermediate district, except that if a

district has elected not to come under part 30 of the revised

school code, MCL 380.1711 to 380.1743, membership and taxable value

of the district shall not be included in the membership and taxable

value of the intermediate district.

(2) From the allocation under section 51a(1), there is

allocated an amount not to exceed $37,758,100.00 for ~~2015-2016~~

2016-2017 to reimburse intermediate districts levying millages for

special education pursuant to part 30 of the revised school code,

MCL 380.1711 to 380.1743. The purpose, use, and expenditure of the

reimbursement shall be limited as if the funds were generated by

these millages and governed by the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1766. As a condition of receiving funds under this

section, an intermediate district distributing any portion of

special education millage funds to its constituent districts shall

submit for departmental approval and implement a distribution plan.

(3) Reimbursement for those millages levied in ~~2014-2015~~ 2015-

2016 shall be made in ~~2015-2016~~ 2016-2017 at an amount per ~~2014-~~

~~2015~~ 2015-2016 membership pupil computed by subtracting from

~~$174,400.00~~ $179,100.00 the ~~2014-2015~~ 2015-2016 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2014-2015~~ 2015-2016 millage levied.

(4) The amount paid to a single intermediate district under

this section shall not exceed 62.9% of the total amount allocated

under subsection (2).

(5) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 61a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $36,611,300.00 for ~~2015-2016~~

2016-2017 to reimburse on an added cost basis districts, except for

a district that served as the fiscal agent for a vocational

education consortium in the 1993-94 school year, and secondary area

vocational-technical education centers for secondary-level career

and technical education programs according to rules approved by the

superintendent. Applications for participation in the programs

shall be submitted in the form prescribed by the department. The

department shall determine the added cost for each career and

technical education program area. The allocation of added cost

funds shall be prioritized based on the capital and program

expenditures needed to operate the career and technical education

programs provided; the number of pupils enrolled; the advancement

of pupils through the instructional program; the existence of an

articulation agreement with at least 1 postsecondary institution

that provides pupils with opportunities to earn postsecondary

credit during the pupil's participation in the career and technical

education program and transfers those credits to the postsecondary

institution upon completion of the career and technical education

program; and the program rank in student placement, job openings,

and wages, ~~; and the length of the training period provided,~~ and

shall not exceed 75% of the added cost of any program.

Notwithstanding any rule or department determination to the

contrary, when determining a district's allocation or the formula

for making allocations under this section, the department shall

include the participation of pupils in grade 9 in all of those

determinations and in all portions of the formula. With the

approval of the department, the board of a district maintaining a

secondary career and technical education program may offer the

program for the period from the close of the school year until

September 1. The program shall use existing facilities and shall be

operated as prescribed by rules promulgated by the superintendent.

(2) Except for a district that served as the fiscal agent for

a vocational education consortium in the 1993-94 school year,

districts and intermediate districts shall be reimbursed for local

career and technical education administration, shared time career

and technical education administration, and career education

planning district career and technical education administration.

The definition of what constitutes administration and reimbursement

shall be pursuant to guidelines adopted by the superintendent. Not

more than $800,000.00 of the allocation in subsection (1) shall be

distributed under this subsection.

(3) A career and technical education program funded under this

section may provide an opportunity for participants who are

eligible to be funded under section 107 to enroll in the career and

technical education program funded under this section if the

participation does not occur during regular school hours.

(4) In addition to the money allocated under subsection (1),

from the general fund money appropriated in section 11, there is

allocated for 2016-2017 an amount not to exceed $115,000.00 to an

eligible Michigan-approved 501(c)(3) organization for the purposes

of teaching or training restaurant management and culinary arts for

career and professional development. The department shall oversee

funds distributed to an eligible grantee under this section. As

used in this subsection, "eligible Michigan-approved 501(c)(3)

organization" means an organization that is exempt from taxation

under section 501(c)(3) of the internal revenue code of 1986, 26

USC 501, that provides curriculum and training to state-approved

career and technology education programs with classification of

instructional programs (CIP) codes in the 12.05XX category, and

that administers national certification for the purpose of

restaurant management and culinary arts for career and professional

development.

Sec. 61b. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $10,000,000.00 for 2015-2016 and

there is allocated an amount not to exceed $15,000,000.00 for 2016-

2017 for CTE early/middle college programs authorized under this

section. The purpose of these programs is to increase the number of

Michigan residents with high-quality degrees or credentials, and to

increase the number of students who are college and career ready

upon high school graduation.

(2) From the funds allocated under subsection (1), an amount

as determined under this subsection shall be allocated to each

intermediate district serving as a fiscal agent for state-approved

CTE early/middle college programs in each of the prosperity regions

and subregions identified by the department. An intermediate

district shall not use more than 5% of the funds allocated under

this subsection for administrative costs for serving as the fiscal

agent.

(3) To be an eligible fiscal agent, an intermediate district

must agree to do all of the following in a form and manner

determined by the department:

(a) Distribute funds to eligible CTE early/middle college

programs in a prosperity region or subregion as described in this

section.

(b) Collaborate with the talent district career council that

is located in the prosperity region or subregion to develop a

regional strategic plan under subsection (4) that aligns CTE

programs and services into an efficient and effective delivery

system for high school students.

the prosperity region or subregion as described under subsection

(4). Regional processes shall be approved by the department before

the ranking of career clusters.

(d) Report CTE early/middle college program and student data

and information as prescribed by the department.

(4) A regional strategic plan must be approved by the talent

district career council before submission to the department. A

regional strategic plan shall include, but not be limited to, the

following:

(a) An identification of regional employer need based on a

ranking of all career clusters in the prosperity region or

subregion ranked by 10-year job openings projections and median

wage for each standard occupational code in each career cluster as

obtained from the United States Bureau of Labor Statistics.

Standard occupational codes within high-ranking clusters also may

be further ranked by median wage. The rankings shall be reviewed by

the talent district career council located in the prosperity region

or subregion and modified if necessary to accurately reflect

employer demand for talent in the prosperity region or subregion. A

talent district career council shall document that it has conducted

this review and certify that it is accurate. These career cluster

rankings shall be determined and updated once every 3 years.

(b) An identification of educational entities in the

prosperity region or subregion that will provide eligible CTE

early/middle college programs including districts, intermediate

districts, postsecondary institutions, and noncredit occupational

training programs leading to an industry-recognized credential.

early/middle college programs in the prosperity region or

subregion.

(d) Any other requirements as defined by the department.

(5) An eligible CTE early/middle college program is a 5-year

high school program that meets all of the following:

(a) Has been identified in the highest 5 career cluster

rankings in any of the 10 regional strategic plans jointly approved

by the Michigan talent investment agency in the department of

talent and economic development and the department.

(b) Has a coherent sequence of courses that will allow a

student to earn a high school diploma and achieve at least 1 of the

following in a specific career cluster:

(i) An associate degree.

(ii) An industry-recognized technical certification approved

by the Michigan talent investment agency in the department of

talent and economic development.

(iii) Up to 60 transferable college credits.

(iv) Participation in a registered apprenticeship.

(d) Has an articulation agreement with at least 1

postsecondary institution that provides students with opportunities

to receive postsecondary credits during the student's participation

in the CTE early/middle college program and transfers those credits

to the postsecondary institution upon completion of the CTE

early/middle college program.

(e) Provides instruction that is supervised, directed, or

coordinated by an appropriately certificated CTE teacher or, for

concurrent enrollment courses, a postsecondary faculty member.

(f) Provides for highly integrated student support services

that include at least the following:

(i) Teachers as academic advisors.

(ii) Supervised course selection.

(iii) Monitoring of student progress and completion.

(iv) Career planning services provided by a local one-stop

service center as described in the Michigan works one-stop service

center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a

high school counselor or advisor.

(g) Has courses that are taught on a college campus, are

college courses offered at the high school and taught by college

faculty, or are courses taught in combination with online

instruction.

(6) Funds to eligible CTE early/middle college programs shall

be distributed as follows:

(a) The department shall calculate statewide average CTE costs

per ~~full-time equated~~ pupil for each career cluster by dividing

total prior year statewide costs for each career cluster by prior

year ~~full-time equated~~ pupils for each career cluster.

(b) Distribution to each eligible CTE early/middle college

program shall be the product of 50% of CTE costs per ~~full-time~~

~~equated~~ pupil times the current year ~~full-time equated~~ pupil

enrollment of each career cluster in an eligible CTE early/middle

college program.

(7) In order to receive funds under this section, a CTE

early/middle college program shall furnish to the intermediate

district that is the fiscal agent identified in subsection (1), in

a form and manner determined by the department, all information

needed to administer this program and meet federal reporting

requirements; shall allow the department or the department's

designee to review all records related to the program for which it

receives funds; and shall reimburse the state for all disallowances

found in the review, as determined by the department.

(8) To the extent that funds are available after the

allocation in subsection (2), there is allocated from the funds

under subsection (1) an amount not to exceed $500,000.00 for grants

to intermediate districts or consortia of intermediate districts

for the purpose of planning for new or expanded early middle

college programs. Applications for grants shall be submitted in a

form and manner determined by the department. The amount of a grant

under this subsection shall not exceed $50,000.00. To be eligible

for a grant under this subsection, an intermediate district or

consortia of intermediate districts must provide matching funds

equal to the grant received under this subsection. Notwithstanding

section 17b, payments under this subsection may be made as

determined by the department.

(9) ~~(8)~~ Funds distributed under this section may be used to

fund program expenditures that would otherwise be paid from

foundation allowances. A program receiving funding under section

61a may receive funding under this section for allowable costs that

exceed the reimbursement the program received under section 61a.

The combined payments received by a program under section 61a and

this section shall not exceed the total allowable costs of the

program. A program provider shall not use more than 5% of the funds

allocated under this section to the program for administrative

costs.

(10) ~~(9)~~ If the allocation under subsection (1) is

insufficient to fully fund payments as otherwise calculated under

this section, the department shall prorate payments under this

section on an equal percentage basis.

(11) ~~(10)~~ If pupils enrolled in a career cluster in an

eligible CTE early/middle college program qualify to be reimbursed

under this section, those pupils continue to qualify for

reimbursement until graduation, even if the career cluster is no

longer identified as being in the highest 5 career cluster

rankings.

(12) ~~(11)~~ As used in this section:

(a) "Allowable costs" means those costs directly attributable

to the program as jointly determined by the Michigan talent

investment agency and the department.

(b) "CTE" means career and technical education.

to the local workforce development boards located in a prosperity

region consisting of educational, employer, labor, and parent

representatives.

Sec. 61c. (1) From the appropriation in section 11, there is

allocated for 2016-2017 an amount not to exceed $10,000,000.00 to

eligible districts and intermediate districts for the CTE skilled

trades equipment initiative.

(2) The department shall develop criteria for a competitive

grant program to improve the capital infrastructure needed to

ensure that career and technical programs can deliver educational

programs in high-wage, high-skill, and high-demand occupations

based on standards and criteria developed by the MiSTEM advisory

council created in section 99s.

(3) In developing the criteria under subsection (2), the

department shall consider at least the findings of the study

conducted under former section 64c regarding current capital

infrastructure and regional strategic plans approved by the talent

district career councils located in prosperity regions as described

under section 61b.

(4) Applications for grants under this section shall be

submitted in a form and manner approved by the department. The

department, in collaboration with the MiSTEM advisory council,

shall make the grant awards. A grant award shall not exceed

$500,000.00.

(5) A grant under this section may be used only for eligible

costs, as determined by the department. Eligible costs include the

costs of equipment, renovations related to installation of the

equipment, installation costs of the equipment, and training for

instructors that will be providing instruction using the equipment.

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district or the total membership for the immediately

preceding fiscal year of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area

vocational-technical education pursuant to sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690, including a levy

for debt service obligations incurred as the result of borrowing

for capital outlay projects and in meeting capital projects fund

requirements of area vocational-technical education.

districts constituent to an intermediate district or area

vocational-technical education program, except that if a district

has elected not to come under sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690, the membership and taxable

value of that district shall not be included in the membership and

taxable value of the intermediate district. However, the membership

and taxable value of a district that has elected not to come under

sections 681 to 690 of the revised school code, MCL 380.681 to

380.690, shall be included in the membership and taxable value of

the intermediate district if the district meets both of the

following:

(i) The district operates the area vocational-technical

education program pursuant to a contract with the intermediate

district.

(ii) The district contributes an annual amount to the

operation of the program that is commensurate with the revenue that

would have been raised for operation of the program if millage were

levied in the district for the program under sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated

an amount not to exceed $9,190,000.00 for ~~2015-2016~~ 2016-2017 to

reimburse intermediate districts and area vocational-technical

education programs established under section 690(3) of the revised

school code, MCL 380.690, levying millages for area vocational-

technical education pursuant to sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690. The purpose, use, and

expenditure of the reimbursement shall be limited as if the funds

were generated by those millages.

(3) Reimbursement for the millages levied in ~~2014-2015~~ 2015-

2016 shall be made in ~~2015-2016~~ 2016-2017 at an amount per ~~2014-~~

~~2015~~ 2015-2016 membership pupil computed by subtracting from

~~$189,400.00~~ $196,100.00 the ~~2014-2015~~ 2015-2016 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2014-2015~~ 2015-2016 millage levied.

(4) The amount paid to a single intermediate district under

this section shall not exceed 38.4% of the total amount allocated

under subsection (2).

(5) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 64b. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $1,750,000.00 for ~~2015-2016~~ 2016-

2017 for supplemental payments to districts that support the

attendance of district pupils in grades 9 to 12 under the

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

388.524, or under the career and technical preparation act, 2000 PA

258, MCL 388.1901 to 388.1913, consistent with section 21b, or that

support the attendance of district pupils in a concurrent

enrollment program if the district meets the requirements under

subsection (3). Programs funded under this section are intended to

increase the number of pupils who are college- and career-ready

upon high school graduation.

(2) To be eligible for payments under this section for

supporting the attendance of district pupils under the

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

388.524, or under the career and technical preparation act, 2000 PA

258, MCL 388.1901 to 388.1913, a district shall do all of the

following:

(a) Provide information to all high school pupils on

postsecondary enrollment options, including enrollment eligibility,

the institutions and types of courses that are eligible for

participation, the decision-making process for granting academic

credit, and an explanation of eligible charges that will be paid by

the district.

(b) Enter into a written agreement with a postsecondary

institution before the enrollment of district pupils.

(d) Award high school credit for the postsecondary course if

the pupil successfully completes the course.

(3) To be eligible for payments under this section for pupils

enrolled in a concurrent enrollment program, a district shall do

all of the following:

(a) Provide information to all high school pupils on

postsecondary enrollment options, including enrollment eligibility,

the institutions and types of courses that are eligible for

participation, the decision-making process for granting academic

credit, and an explanation of eligible charges that will be paid by

the district.

(b) Enter into a written agreement with a postsecondary

institution establishing the concurrent enrollment program before

the enrollment of district pupils in a postsecondary course through

the postsecondary institution.

teacher or postsecondary faculty pursuant to standards established

by the postsecondary institution with which the district has

entered into a written agreement to operate the concurrent

enrollment program.

(d) Ensure that the written agreement provides that the

postsecondary institution agrees not to charge the pupil for any

cost of the program.

(e) Ensure that the course is taught in the local district or

intermediate district.

(f) Ensure that the pupil is awarded both high school and

college credit at ~~any~~ a community college or state public

university in this state upon successful completion of the course

as outlined in the agreement with the postsecondary institution.

(4) Funds shall be awarded to eligible districts under this

section in the following manner:

(a) A payment of $10.00 per credit, for up to 3 credits, for a

credit-bearing course in which a pupil enrolls during the ~~2015-2016~~

2016-2017 school year as described under either subsection (2) or

(3).

(b) An additional payment of $30.00 per-pupil per course

identified in subdivision (a), if the pupil successfully completes,

and is awarded both high school and postsecondary credit for, the

course during the ~~2015-2016~~ 2016-2017 school year.

(5) A district requesting payment under this section shall

submit an application to the department in the form and manner

prescribed by the department. Notwithstanding section 17b, payments

under this section shall be made on a schedule determined by the

department.

Sec. 65. (1) From the general fund money appropriated under

section 11, there is allocated an amount not to exceed $340,000.00

for ~~2015-2016~~ 2016-2017 for a pre-college engineering K-12

educational program that is focused on the development of a diverse

future Michigan workforce, that serves multiple communities within

southeast Michigan, that enrolls pupils from multiple districts,

and that received funds appropriated for this purpose in the

appropriations act that provided the Michigan strategic fund budget

for 2014-2015.

(2) To be eligible for funding under this section, a program

must have the ability to expose pupils to, and motivate and prepare

pupils for, science, technology, engineering, and mathematics

careers and postsecondary education with special attention given to

groups of pupils who are at-risk and underrepresented in technical

professions and careers.

Sec. 67. (1) From the general fund amount appropriated in

section 11, there is allocated an amount not to exceed

~~$3,600,000.00 for 2015-2016~~ $3,050,000.00 for 2016-2017 for college

and career preparation activities. The programs funded under this

section are intended to inform students of college and career

options and to provide a wide array of tools and resources intended

to increase the number of pupils who are adequately prepared with

the information needed to make informed decisions on college and

career. The funds appropriated under this section are intended to

be used to increase the number of Michigan residents with high-

quality degrees or credentials. Funds appropriated under this

section shall not be used to supplant funding for counselors

already funded by districts.

(2) From the amount allocated in subsection (1), an amount not

to exceed $3,000,000.00 shall be used for the college access

program. The talent investment agency of the department of talent

and economic development shall administer these funds in

collaboration with the Michigan college access network. These funds

may be used for any of the following purposes:

(a) Michigan college access network operations, programming,

and services to local college access networks.

(b) Local college access networks, which are community-based

college access/success partnerships committed to increasing the

college participation and completion rates within geographically

defined communities through a coordinated strategy.

to place trained, recently graduated college advisors in high

schools that serve significant numbers of low-income and first-

generation college-going pupils. State funds used for this purpose

may not exceed 33% of the total funds available under this

subsection.

(d) Subgrants of up to $5,000.00 to districts with

comprehensive high schools that establish a college access team and

implement specific strategies to create a college-going culture in

a high school in a form and manner approved by the Michigan college

access network and the Michigan talent investment agency.

(e) The Michigan college access portal, an online one-stop

portal to help pupils and families plan and apply for college.

(f) Public awareness and outreach campaigns to encourage low-

income and first-generation college-going pupils to take necessary

steps toward college and to assist pupils and families in

completing a timely and accurate free application for federal

student aid.

(g) Subgrants to postsecondary institutions to recruit, hire,

and train college student mentors and college advisors to assist

high school pupils in navigating the postsecondary planning and

enrollment process.

(3) From the amount allocated in subsection (1), an amount not

to exceed ~~$600,000.00~~ $50,000.00 shall be used for ~~the purposes of~~

~~this subsection. The talent investment agency of the department of~~

~~talent and economic development shall administer these funds in~~

~~collaboration with the Michigan college access network and the~~

~~Michigan Virtual University to provide all of the following:~~

~~(a) A pilot~~ an outreach program to provide information to

pupils, parents, and educators on dual enrollment and other

opportunities available to high school pupils to earn postsecondary

credits, industry-recognized technical certifications, and

participation in registered apprenticeships at no cost.

~~(b) An online career planning tool that meets all of the~~

~~following:~~

(i~~) Helps pupils create educational development plans before~~

~~starting high school.~~

(ii~~) Provides information to pupils allowing them to make more~~

~~informed choices about career and education options.~~

(~~iii~~~~) Is available to pupils at no cost.~~

(4) For the purposes of this section, "college" means any

postsecondary educational opportunity that leads to a career,

including, but not limited to, a postsecondary degree, industry-

recognized technical certification, or registered apprenticeship.

Sec. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed ~~$3,315,700.00 for 2015-2016~~

$3,320,600.00 for 2016-2017 for the purposes of this section.

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

for each fiscal year the amount necessary for payments to state

supported colleges or universities and intermediate districts

providing school bus driver safety instruction pursuant to section

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

payments shall be in an amount determined by the department not to

exceed the actual cost of instruction and driver compensation for

each public or nonpublic school bus driver attending a course of

instruction. For the purpose of computing compensation, the hourly

rate allowed each school bus driver shall not exceed the hourly

rate received for driving a school bus. Reimbursement compensating

the driver during the course of instruction shall be made by the

department to the college or university or intermediate district

providing the course of instruction.

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

for ~~2015-2016~~ 2016-2017 the amount necessary to pay the reasonable

costs of nonspecial education auxiliary services transportation

provided pursuant to section 1323 of the revised school code, MCL

380.1323. Districts funded under this subsection shall not receive

funding under any other section of this article for nonspecial

education auxiliary services transportation.

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

allocated an amount not to exceed ~~$1,690,700.00 for 2015-2016~~

$1,695,600.00 for 2016-2017 for reimbursement to districts and

intermediate districts for costs associated with the inspection of

school buses and pupil transportation vehicles by the department of

state police as required under section 715a of the Michigan vehicle

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

transportation act, 1990 PA 187, MCL 257.1839. The department of

state police shall prepare a statement of costs attributable to

each district for which bus inspections are provided and submit it

to the department and to an intermediate district serving as

fiduciary in a time and manner determined jointly by the department

and the department of state police. Upon review and approval of the

statement of cost, the department shall forward to the designated

intermediate district serving as fiduciary the amount of the

reimbursement on behalf of each district and intermediate district

for costs detailed on the statement within 45 days after receipt of

the statement. The designated intermediate district shall make

payment in the amount specified on the statement to the department

of state police within 45 days after receipt of the statement. The

total reimbursement of costs under this subsection shall not exceed

the amount allocated under this subsection. Notwithstanding section

17b, payments to eligible entities under this subsection shall be

paid on a schedule prescribed by the department.

Sec. 81. (1) From the appropriation in section 11, there is

allocated for ~~2015-2016~~ 2016-2017 to the intermediate districts the

sum necessary, but not to exceed ~~$67,108,000.00~~ $68,182,000.00 to

provide state aid to intermediate districts under this section.

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

for ~~2015-2016~~ 2016-2017 an amount not to exceed $67,108,000.00 for

allocations to each intermediate district in an amount equal to

~~103.1%~~ 101.6% of the amount allocated to the intermediate district

under this subsection for ~~2014-2015.~~ 2015-2016. Funding provided

under this section shall be used to comply with requirements of

this article and the revised school code that are applicable to

intermediate districts, and for which funding is not provided

elsewhere in this article, and to provide technical assistance to

districts as authorized by the intermediate school board.

(3) Intermediate districts receiving funds under subsection

(2) shall collaborate with the department to develop expanded

professional development opportunities for teachers to update and

expand their knowledge and skills needed to support the Michigan

merit curriculum.

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

to an intermediate district, formed by the consolidation or

annexation of 2 or more intermediate districts or the attachment of

a total intermediate district to another intermediate school

district or the annexation of all of the constituent K-12 districts

of a previously existing intermediate school district which has

disorganized, an additional allotment of $3,500.00 each fiscal year

for each intermediate district included in the new intermediate

district for 3 years following consolidation, annexation, or

attachment.

(5) In order to receive funding under subsection (2), an

intermediate district shall do all of the following:

(a) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

pupil accounting and auditing procedures, rules, and regulations.

(b) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

rules, regulations, and district reporting procedures for the

individual-level student data that serves as the basis for the

calculation of the district and high school graduation and dropout

rates.

code, MCL 380.1278a and 380.1278b.

(d) Furnish data and other information required by state and

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

(e) Comply with section 1230g of the revised school code, MCL

380.1230g.

(f) Comply with section 761 of the revised school code, MCL

380.761.

Sec. 94. (1) From the general fund appropriation in section

11, there is allocated to the department for ~~2015-2016~~ 2016-2017 an

amount not to exceed $250,000.00 for efforts to increase the number

of pupils who participate and succeed in advanced placement and

international baccalaureate programs.

(2) From the funds allocated under this section, the

department shall award funds to cover all or part of the costs of

advanced placement test fees or international baccalaureate test

fees and international baccalaureate registration fees for low-

income pupils who take an advanced placement or an international

baccalaureate test. Payments shall not exceed $20.00 per test

completed or $150.00 per international baccalaureate registration

fees per pupil registered.

(3) The department shall only award funds under this section

if the department determines that all of the following criteria are

met:

(a) Each pupil for whom payment is made meets eligibility

requirements of the federal advanced placement test fee program

under section 1701 of the no child left behind act of 2001, Public

Law 107-110, or under a corresponding provision of the every

student succeeds act, Public Law 114-95.

(b) The tests are administered by the college board, the

international baccalaureate organization, or another test provider

approved by the department.

toward the cost of each test for which payment is made.

(4) The department shall establish procedures for awarding

funds under this section.

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

shall be made on a schedule determined by the department.

Sec. 94a. (1) There is created within the state budget office

in the department of technology, management, and budget the center

for educational performance and information. The center shall do

all of the following:

(a) Coordinate the collection of all data required by state

and federal law from districts, intermediate districts, and

postsecondary institutions.

(b) Create, maintain, and enhance this state's P-20

longitudinal data system and ensure that it meets the requirements

of subsection (4).

order to reduce the administrative burden on reporting entities,

including, but not limited to, electronic transcript services.

(d) Create, maintain, and enhance this state's web-based

educational portal to provide information to school leaders,

teachers, researchers, and the public in compliance with all

federal and state privacy laws. Data shall include, but are not

limited to, all of the following:

(i) Data sets that link teachers to student information,

allowing districts to assess individual teacher impact on student

performance and consider student growth factors in teacher and

principal evaluation systems.

(ii) Data access or, if practical, data sets, provided for

regional data warehouses that, in combination with local data, can

improve teaching and learning in the classroom.

(iii) Research-ready data sets for researchers to perform

research that advances this state's educational performance.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide public reports to the citizens of this state to

allow them to assess allocation of resources and the return on

their investment in the education system of this state.

(g) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects

information from districts, intermediate districts, or

postsecondary institutions as required under state or federal law

shall make arrangements with the center to ensure that the state

department, officer, or agency is in compliance with subsection

(1). This subsection does not apply to information collected by the

department of treasury under the uniform budgeting and accounting

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

388.1939; or section 1351a of the revised school code, MCL

380.1351a.

(3) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(4) The center shall ensure that the P-20 longitudinal data

system required under subsection (1)(b) meets all of the following:

(a) Includes data at the individual student level from

preschool through postsecondary education and into the workforce.

(b) Supports interoperability by using standard data

structures, data formats, and data definitions to ensure linkage

and connectivity in a manner that facilitates the exchange of data

among agencies and institutions within the state and between

states.

records so that an individual student may be matched with those

teachers providing instruction to that student.

(d) Enables the matching of individual teachers with

information about their certification and the institutions that

prepared and recommended those teachers for state certification.

(e) Enables data to be easily generated for continuous

improvement and decision-making, including timely reporting to

parents, teachers, and school leaders on student achievement.

(f) Ensures the reasonable quality, validity, and reliability

of data contained in the system.

(g) Provides this state with the ability to meet federal and

state reporting requirements.

(h) For data elements related to preschool through grade 12

and postsecondary, meets all of the following:

(i) Contains a unique statewide student identifier that does

not permit a student to be individually identified by users of the

system, except as allowed by federal and state law.

(ii) Contains student-level enrollment, demographic, and

program participation information.

(iii) Contains student-level information about the points at

which students exit, transfer in, transfer out, drop out, or

complete education programs.

(iv) Has the capacity to communicate with higher education

data systems.

(i) For data elements related to preschool through grade 12

only, meets all of the following:

(i) Contains yearly test records of individual students for

assessments approved by DED-OESE for accountability purposes under

section 1111(b) of the elementary and secondary education act of

1965, 20 USC 6311, including information on individual students not

tested, by grade and subject.

(ii) Contains student-level transcript information, including

information on courses completed and grades earned.

(iii) Contains student-level college readiness test scores.

(j) For data elements related to postsecondary education only:

(i) Contains data that provide information regarding the

extent to which individual students transition successfully from

secondary school to postsecondary education, including, but not

limited to, all of the following:

(A) Enrollment in remedial coursework.

(B) Completion of 1 year's worth of college credit applicable

to a degree within 2 years of enrollment.

(ii) Contains data that provide other information determined

necessary to address alignment and adequate preparation for success

in postsecondary education.

(5) From the general fund appropriation in section 11, there

is allocated an amount not to exceed ~~$11,967,000.00 for 2015-2016~~

$12,173,200.00 for 2016-2017 to the department of technology,

management, and budget to support the operations of the center. In

addition, from the federal funds appropriated in section 11 there

is allocated for ~~2015-2016~~ 2016-2017 the amount necessary,

estimated at $193,500.00, to support the operations of the center

and to establish a P-20 longitudinal data system necessary for

state and federal reporting purposes. The center shall cooperate

with the department to ensure that this state is in compliance with

federal law and is maximizing opportunities for increased federal

funding to improve education in this state.

(6) From the funds allocated in subsection (5), the center may

use an amount determined by the center for competitive grants for

~~2015-2016~~ 2016-2017 to support collaborative efforts on the P-20

longitudinal data system. All of the following apply to grants

awarded under this subsection:

(a) The center shall award competitive grants to eligible

intermediate districts or a consortium of intermediate districts

based on criteria established by the center.

(b) Activities funded under the grant shall support the P-20

longitudinal data system portal and may include portal hosting,

hardware and software acquisition, maintenance, enhancements, user

support and related materials, and professional learning tools and

activities aimed at improving the utility of the P-20 longitudinal

data system.

for the immediately preceding fiscal year shall receive priority

for funding under this section. However, after 3 fiscal years of

continuous funding, an applicant is required to compete openly with

new applicants.

(7) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year and are appropriated for the

purposes for which the funds were originally allocated.

(8) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (5) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(9) As used in this section:

(a) "DED-OESE" means the United States Department of Education

Office of Elementary and Secondary Education.

(b) "State education agency" means the department.

Sec. 95b. (1) From the general fund money appropriated under

section 11, there is allocated an amount not to exceed $100.00 for

the licensing of a state student growth tool based on the state

assessment required under section 104.

(2) Not later than December 1, 2016, the department of

technology, management, and budget shall award a contract to a

vendor to provide the state student growth tool. To be eligible for

this contract, a vendor must meet all of the following:

(a) Is a reputable vendor with past experience analyzing

statewide student growth data.

(b) Provides a student growth tool that is based on a value-

added model that measures gains in student achievement by

conducting a statistical analysis of student achievement data and

that provides academic growth data over time by subject, by grade

level, and by school.

the following:

(i) Has the ability to use all achievement test data for every

pupil, including for pupils with missing test scores.

(ii) Makes no adjustments in the expectations for student

growth for pupils based on race, poverty, or gender.

(iii) Provides linear unbiased predictions of school effects

and minimizes the impact of random errors.

(d) Has the ability to work with assessment data from a

variety of sources, including data that are not vertically scaled

and assessments that change over time.

(e) Has the capacity to receive and report results

electronically and provide support for districts using the system.

(f) Provides, at a minimum, a student growth score for

individual teachers who teach subjects tested on statewide

assessments and a student growth score for all schools.

(g) Provides a student growth tool that complies with section

1249 of the revised school code, MCL 380.1249, and that districts

may use for the student growth portion of an educator's annual

performance evaluation as required under section 1249 of the

revised school code, MCL 380.1249.

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 ~~2015-2016~~ 2016-2017 for the purposes described in

this section.

(2) The Michigan Virtual University shall operate the Michigan

Virtual Learning Research Institute. The Michigan Virtual Learning

Research Institute shall do all of the following:

(a) Support and accelerate innovation in education through the

following activities:

(i) Test, evaluate, and recommend as appropriate new

technology-based instructional tools and resources.

(ii) Research, design, and recommend ~~digital~~ virtual education

delivery models for use by pupils and teachers that include age-

appropriate multimedia instructional content.

(iii) Research, develop, and recommend annually to the

department criteria by which cyber schools and ~~online~~ virtual

course providers should be monitored and evaluated to ensure a

quality education for their pupils.

(iv) Based on pupil completion and performance data reported

to the department or the center for educational performance and

information from cyber schools and other ~~online~~ virtual course

providers operating in this state, analyze the effectiveness of

~~online~~ virtual learning delivery models in preparing pupils to be

college- and career-ready and publish a report that highlights

enrollment totals, completion rates, and the overall impact on

pupils. The report shall be submitted to the house and senate

appropriations subcommittees on state school aid, the state budget

director, the house and senate fiscal agencies, and the department

not later than March 31, ~~2016.~~2017.

(v) Before August 31, ~~2016,~~ 2017, 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~~

virtual learning into curricula and instruction. Not later than

December 1, ~~2016,~~ 2017, the Michigan Virtual Learning Research

Institute shall submit a report to the house and senate

appropriations subcommittees on state school aid, the state budget

director, the house and senate fiscal agencies, and the department

on the number and percentage of teachers, school administrators,

and school board members who have received professional development

services from the Michigan Virtual University. The report shall

also identify barriers and other opportunities to encourage the

adoption of ~~digital~~ virtual learning in the public education

system.

(vi) Identify and share best practices for planning,

implementing, and evaluating ~~online~~ virtual and blended education

delivery models with intermediate districts, districts, and public

school academies to accelerate the adoption of innovative education

delivery models statewide.

(b) Provide leadership for this state's system of ~~digital~~

virtual learning education by doing the following activities:

(i) Develop and report policy recommendations to the governor

and the legislature that accelerate the expansion of effective

~~online~~ virtual learning in this state's schools.

(ii) Provide a clearinghouse for research reports, academic

studies, evaluations, and other information related to ~~online~~

virtual learning.

(iii) Promote and distribute the most current instructional

design standards and guidelines for ~~online~~ virtual teaching.

(iv) In collaboration with the department and interested

colleges and universities in this state, support implementation and

improvements related to effective ~~digital~~ virtual learning

instruction.

(v) Pursue public/private partnerships that include districts

to study and implement competency-based technology-rich ~~online~~

virtual learning models.

(vi) Create a statewide network of school-based mentors

serving as liaisons between pupils, ~~online~~ virtual instructors,

parents, and school staff and provide mentors with research-based

training and technical assistance designed to help more pupils be

successful ~~online~~ virtual learners.

(vii) Convene focus groups and conduct annual surveys of

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

barriers and opportunities related to ~~online~~ virtual learning.

(viii) Produce an annual consumer awareness report for schools

and parents about effective ~~online~~ virtual education providers and

education delivery models, performance data, cost structures, and

research trends.

(ix) 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 shall work collaboratively with districts and

intermediate districts to establish a plan to make available ~~online~~

virtual resources that align to Michigan's K-12 curriculum

standards for use by students, educators, and parents.

(x) Create and maintain a public statewide catalog of ~~online~~

virtual learning courses being offered by all public schools and

community colleges in this state. The Michigan Virtual Learning

Research Institute shall identify and develop a list of nationally

recognized best practices for ~~online~~ virtual learning and use this

list to support reviews of ~~online~~ virtual course vendors, courses,

and instructional practices. The Michigan Virtual Learning Research

Institute shall also provide a mechanism for intermediate districts

to use the identified best practices to review content offered by

constituent districts. The Michigan Virtual Learning Research

Institute shall review the ~~online~~ virtual course offerings of the

Michigan Virtual University, and make the results from these

reviews available to the public as part of the statewide catalog.

The Michigan Virtual Learning Research Institute shall ensure that

the statewide catalog is made available to the public on the

Michigan Virtual University website and shall allow the ability to

link it to each district's website as provided for in section 21f.

The statewide catalog shall also contain all of the following:

(A) The number of enrollments in each ~~online~~ virtual course in

the immediately preceding school year.

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

total course points for each ~~online~~ virtual course in the

immediately preceding school year.

(xi) Develop prototype and pilot registration, payment

services, and transcript functionality to the statewide catalog and

train key stakeholders on how to use new features.

(xii) Collaborate with key stakeholders to examine district

level accountability and teacher effectiveness issues related to

~~online~~ virtual learning under section 21f and make findings and

recommendations publicly available.

(3) To further enhance its expertise and leadership in ~~digital~~

virtual learning, the Michigan Virtual University shall continue to

operate the Michigan Virtual School as a statewide laboratory and

quality model of instruction by implementing ~~online~~ virtual and

blended learning solutions for Michigan schools in accordance with

the following parameters:

(a) The Michigan Virtual School must maintain its

accreditation status from recognized national and international

accrediting entities.

(b) The Michigan Virtual University shall use no more than

$1,000,000.00 of the amount allocated under this section to

subsidize the cost paid by districts for ~~online~~ virtual courses.

~~online~~ virtual courses as provided for in this section, the

Michigan Virtual School shall follow the requirements to request

and assess, and the department of state police shall provide, a

criminal history check and criminal records check under sections

1230 and 1230a of the revised school code, MCL 380.1230 and

380.1230a, in the same manner as if the Michigan Virtual School

were a school district under those sections.

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

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

Michigan Virtual School operated by the Michigan Virtual University

may offer ~~online~~ virtual course offerings, including, but not

limited to, all of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section

1471 of the revised school code, MCL 380.1471.

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

(e) 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, the student may use the services provided

by the Michigan Virtual School to the district without charge to

the student beyond what is charged to a district pupil using the

same services.

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

Michigan Virtual University shall provide a report to the house and

senate appropriations subcommittees on state school aid, the state

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

department that includes at least all of the following information

related to the Michigan Virtual School for the preceding state

fiscal year:

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

School.

(b) A list of ~~online~~ virtual course titles available to

districts.

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 established under

subsection (2). The members of the advisory group shall serve at

the pleasure of the governor and shall serve without compensation.

The purpose of the advisory group is to make recommendations to the

governor, the legislature, and the president and board of the

Michigan Virtual University that will accelerate innovation in this

state's education system in a manner that will prepare elementary

and secondary students to be career and college ready and that will

promote the goal of increasing the percentage of citizens of this

state with high-quality degrees and credentials to at least 60% by

2025.

(8) Not later than November 1, ~~2015,~~ 2016, the Michigan

Virtual University shall submit to the house and senate

appropriations subcommittees on state school aid, the state budget

director, and the house and senate fiscal agencies a detailed

budget for the ~~2015-2016~~ 2016-2017 fiscal year that includes a

breakdown on its projected costs to deliver ~~online~~ virtual

educational services to districts and a summary of the anticipated

fees to be paid by districts for those services. Not later than

March 1 each year, the Michigan Virtual University shall submit to

the house and senate appropriations subcommittees on state school

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

agencies a breakdown on its actual costs to deliver ~~online~~ virtual

educational services to districts and a summary of the actual fees

paid by districts for those services based on audited financial

statements for the immediately preceding fiscal year.

(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 are in the same physical location and in part through

Internet-connected learning environments with some degree of pupil

control over time, location, and pace of instruction.

(b) "Cyber school" means a full-time instructional program of

~~online~~ virtual 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.~~

is capable of generating a credit or a grade , and that is provided

in an interactive ~~Internet-connected~~ learning environment , in

which the majority of the curriculum is delivered using the

Internet and in which pupils are separated from their ~~teachers~~

instructor or teacher of record by time or location, or both. ~~, and~~

~~in which a teacher who holds a valid Michigan teaching certificate~~

~~is responsible for providing instruction, 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. 99h. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $2,000,000.00 for ~~2015-2016~~ 2016-

2017 for competitive grants to districts that provide pupils in

grades 7 to 12 with expanded opportunities to improve mathematics,

science, and technology skills by participating in events hosted by

a science and technology development program known as FIRST (for

inspiration and recognition of science and technology) robotics.

Programs funded under this section are intended to increase the

number of pupils demonstrating proficiency in science and

mathematics on the state assessments and to increase the number of

pupils who are college- and career-ready upon high school

graduation.

(2) A district applying for a FIRST tech challenge or FIRST

robotics competition program grant shall submit an application in a

form and manner determined by the department. To be eligible for a

grant, a district shall demonstrate in its application that the

district has established a partnership for the purposes of the

FIRST program with at least 1 sponsor, business entity, higher

education institution, or technical school, shall submit a spending

plan, and shall pay at least 25% of the cost of the FIRST robotics

program.

(3) The department shall distribute the grant funding under

this section for the following purposes:

(a) Grants to districts to pay for stipends of $1,500.00 for 1

coach per team, distributed as follows:

(i) Not more than 500 stipends for coaches of high school

teams, including existing teams.

(ii) Not more than 100 stipends for coaches of middle school

or junior high teams, including existing teams.

(iii) If the requests for stipends exceed the numbers of

stipends allowed under subparagraphs (i) and (ii), and if there is

funding remaining unspent under subdivisions (b) and (c), the

department shall use that remaining unspent funding for grants to

districts to pay for additional stipends in a manner that expands

the geographical distribution of teams.

(b) Grants to districts for event registrations, materials,

travel costs, and other expenses associated with the preparation

for and attendance at FIRST tech challenge and FIRST robotics

competitions. Each grant recipient shall provide a local match from

other private or local funds for the funds received under this

subdivision equal to at least 50% of the costs of participating in

an event. The department shall set maximum grant amounts under this

subdivision in a manner that maximizes the number of teams that

will be able to receive funding.

the state and world championship competitions. The department shall

determine an equal amount per team for those teams that advance to

the state championship and a second equal award amount to those

teams that advance to the world championship.

(4) The funds allocated under this section are a work project

appropriation, and any unexpended funds for ~~2015-2016~~ 2016-2017 are

carried forward into ~~2016-2017.~~ 2017-2018. The purpose of the work

project is to continue to implement the projects described under

subsection (1). The estimated completion date of the work project

is September 30, ~~2018.~~2019.

Sec. 99s. (1) From the funds appropriated under section 11,

there is allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

$3,250,000.00 from the state school aid fund appropriation and an

amount not to exceed $775,000.00 from the general fund

appropriation for Michigan science, technology, engineering, and

mathematics (MiSTEM) programs. In addition, from the federal funds

appropriated in section 11, there is allocated for ~~2015-2016~~ 2016-

2017 an amount estimated at $5,249,300.00 from DED-OESE, title II,

mathematics and science partnership grants. Programs funded under

this section are intended to increase the number of pupils

demonstrating proficiency in science and mathematics on the state

assessments and to increase the number of pupils who are college-

and career-ready upon high school graduation.

(2) From the general fund allocation in subsection (1), there

is allocated an amount not to exceed $50,000.00 to the department

for administrative and travel costs related to the MiSTEM advisory

council. All of the following apply to the MiSTEM advisory council

funded under this subsection:

(a) The MiSTEM advisory council is created. The MiSTEM

advisory council shall provide to the governor, legislature,

department of talent and economic development, and department

recommendations designed to improve and promote innovation in STEM

education and to prepare students for careers in science,

technology, engineering, and mathematics.

(b) The MiSTEM advisory council created under subdivision (a)

shall consist of the following members:

(i) The governor shall appoint 11 voting members who are

representative of business sectors that are important to Michigan's

economy and rely on a STEM-educated workforce, nonprofit

organizations and associations that promote STEM education, K-12

and postsecondary education entities involved in STEM-related

career education, or other sectors as considered appropriate by the

governor. Each of these members shall serve at the pleasure of the

governor and for a term determined by the governor.

(ii) The senate majority leader shall appoint 2 members of the

senate to serve as nonvoting, ex-officio members of the MiSTEM

advisory council, including 1 majority party member and 1 minority

party member.

(iii) The speaker of the house of representatives shall

appoint 2 members of the house of representatives to serve as

nonvoting, ex-officio members of the MiSTEM advisory council,

including 1 majority party member and 1 minority party member.

without compensation.

(d) ~~The~~ Not later than March 1, 2016, the MiSTEM advisory

council shall recommend to the governor, the legislature, and the

department a statewide strategy for delivering STEM education-

related opportunities to pupils and objective criteria for

determining preferred STEM programs. The MiSTEM advisory council

also shall make funding recommendations to the governor,

legislature, and department for funding programs under this section

for ~~2016-2017~~ 2017-2018 not later than March 1, ~~2016,~~ 2017,

including, but not limited to, recommendations concerning funding

for the STEM programs funded under this section for ~~2015-2016,~~

2016-2017, and shall continue to make funding recommendations

annually thereafter.

(e) The MiSTEM advisory council shall work with directors of

mathematics and science centers funded under subsection (3) to

connect educators with businesses, workforce developers, economic

developers, community colleges, and universities.

~~(3) From the state school aid fund allocation under subsection~~

~~(1), there is allocated for 2015-2016 an amount not to exceed~~

~~$2,750,000.00 to support the activities and programs of mathematics~~

~~and science centers. In addition, from the federal funds allocated~~

~~under subsection (1), there is allocated for 2015-2016 an amount~~

~~estimated at $5,249,300.00 from DED-OESE, title II, mathematics and~~

~~science partnership grants, for the purposes of this subsection.~~

~~All of the following apply to the programs and funding under this~~

~~subsection:~~

~~(a) Within a service area designated locally, approved by the~~

~~department, and consistent with the comprehensive master plan for~~

~~mathematics and science centers developed by the department and~~

~~approved by the state board, an established mathematics and science~~

~~center shall provide 2 or more of the following 6 basic services,~~

~~as described in the master plan, to constituent districts and~~

~~communities: leadership, pupil services, curriculum support,~~

~~community involvement, professional development, and resource~~

~~clearinghouse services.~~

~~(b) The department shall not award a state grant under this~~

~~subsection to more than 1 mathematics and science center located in~~

~~a designated region as prescribed in the 2007 master plan unless~~

~~each of the grants serves a distinct target population or provides~~

~~a service that does not duplicate another program in the designated~~

~~region.~~

~~(c) As part of the technical assistance process, the~~

~~department shall provide minimum standard guidelines that may be~~

~~used by the mathematics and science center for providing fair~~

~~access for qualified pupils and professional staff as prescribed in~~

~~this subsection.~~

~~(d) Allocations under this subsection to support the~~

~~activities and programs of mathematics and science centers shall be~~

~~continuing support grants to all 33 established mathematics and~~

~~science centers. For 2015-2016, each established mathematics and~~

~~science center that was funded for 2014-2015 under former section~~

~~99 shall receive state funding in an amount equal to 100% of the~~

~~amount it was allocated under former section 99 for 2014-2015. If a~~

~~center declines state funding or a center closes, the remaining~~

~~money available under this subsection shall be distributed to the~~

~~remaining centers, as determined by the department.~~

~~(e) From the funds allocated under this subsection, the~~

~~department shall distribute for 2015-2016 an amount not to exceed~~

~~$750,000.00 in a form and manner determined by the department to~~

~~those centers able to provide curriculum and professional~~

~~development support to assist districts in implementing the~~

~~Michigan merit curriculum components for mathematics and science.~~

~~Funding under this subdivision is in addition to funding allocated~~

~~under subdivision (d).~~

~~(f) In order to receive state or federal funds under this~~

~~subsection, a grant recipient shall allow access for the department~~

~~or the department's designee to audit all records related to the~~

~~program for which it receives those funds. The grant recipient~~

~~shall reimburse the state for all disallowances found in the audit.~~

~~(g) Not later than September 30, 2018, the department shall~~

~~reevaluate and update the comprehensive master plan described in~~

~~subdivision (a).~~

~~(h) The department shall give preference in awarding the~~

~~federal grants allocated under this subsection to eligible existing~~

~~mathematics and science centers.~~

~~(i) In order to receive state funds under this subsection, a~~

~~grant recipient shall provide at least a 10% local match from local~~

~~public or private resources for the funds received under this~~

~~subsection.~~

~~(j) Not later than July 1 of each year, a mathematics and~~

~~science center that receives funds under this subsection shall~~

~~report to the department in a form and manner prescribed by the~~

~~department on the following performance measures:~~

(i~~) Statistical change in pre- and post-assessment scores for~~

~~students who enrolled in mathematics and science activities~~

~~provided to districts by the mathematics and science center.~~

(ii~~) Statistical change in pre- and post-assessment scores for~~

~~teachers who enrolled in professional development activities~~

~~provided by the mathematics and science center.~~

(3) From the state school aid fund allocation under subsection

(1), there is allocated for 2016-2017 an amount not to exceed

$2,750,000.00 to intermediate districts to create a MiSTEM center

in each prosperity region, to participate with Change the Equation

STEMworks, and to provide grants to districts. In addition, from

the federal funds allocated under subsection (1), there is

allocated for 2016-2017 an amount estimated at $5,249,300.00 from

DED-OESE, title II, mathematics and science partnership grants, for

the purposes of this subsection. All of the following apply to the

programs and funding under this subsection:

(a) By April 1 of each fiscal year, the intermediate districts

within a prosperity region shall determine which intermediate

district will serve as the prosperity region's fiscal agent for the

next fiscal year and shall notify the department.

(b) The department shall distribute funding allocated under

this subsection to intermediate districts that are the fiscal

agents for a prosperity region in an equal amount per membership

pupil in each of the constituent districts of each intermediate

district in the prosperity region.

facilitating MiSTEM experiential learning grants and professional

development.

` (d) A MiSTEM center shall create and coordinate local and

regional MiSTEM councils that connect educators with businesses,

workforce developers, economic developers, community colleges, and,

where available, universities.

(e) A MiSTEM center shall coordinate with the department and

the MiSTEM advisory council to establish STEM programming quality

ratings for Michigan-based and national STEM programs using Change

the Equation STEMworks or similar rating systems to identify STEM

programs eligible for district grants under subdivision (f).

(f) Each MiSTEM center shall distribute at least 50% of the

funding it receives under this subsection to grants to districts

for programs identified under subdivision (e).

(g) ~~(k)~~ As used in this subsection:

(i) "DED" means the United States Department of Education.

(ii) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

(4) From the general fund money allocated under subsection

(1), there is allocated for ~~2015-2016~~ 2016-2017 an amount not to

exceed $100,000.00 to the Michigan STEM partnership, to be used to

administer the grant process under this subsection. From the

general fund money allocated in subsection (1), there is allocated

for ~~2015-2016~~ 2016-2017 an amount not to exceed $375,000.00 to the

Michigan STEM partnership to be used for a competitive grant

process to award competitive grants to organizations conducting

student-focused, project-based programs and competitions, either in

the classroom or extracurricular, in science, technology,

engineering, and mathematics subjects such as, but not limited to,

robotics, coding, and design-build-test projects, from pre-

kindergarten through college level. All of the following apply to

the grant funding under this subsection:

(a) Funding under this subsection is in addition to funding

allocated under subsection (3) and shall be used for connecting

mathematics and science centers for science, technology,

engineering, and mathematics purposes and to support the goals of

the Michigan STEM partnership.

(b) A program receiving funds under section 99h may not

receive funds under this subsection.

grant recipient shall provide at least a 10% local match from local

public or private resources for the funds received under this

subsection.

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

allocated an amount not to exceed $250,000.00 for ~~2015-2016~~ 2016-

2017 only for grants to districts to support professional

development for teachers in a department-approved training program

for science, technology, engineering, and mathematics (STEM)

instruction. All of the following apply to the grant funding under

this subsection:

(a) Any district may apply for funding under this subsection

for 2015-2016 by a date determined by the department. In awarding

grants, the department shall give priority, in a form and manner

determined by the department, to applicant districts with teachers

who have not previously received training in programs funded under

this subsection or former section 99b.

(b) For a training program to be approved by the department

for the purposes of this subsection, the program shall meet all of

the following criteria:

(i) Utilize an integrative STEM approach to content

organization and delivery. The integrative STEM approach shall

include content derived from science, technology, engineering, and

mathematics.

(ii) Offer evidence that the program outcomes address

mathematics, science, and technological literacy standards in an

exploratory middle school or high school offering.

(iii) Offer evidence that the program positively influences

student career choices along STEM career paths and increases

student engagement through peer-reviewed research.

(iv) Present evidence of the periodic updating of the

curriculum.

(v) Utilize outcome measures for teacher professional

development.

(vi) Provide peer-reviewed evidence that the program is

effective with disadvantaged students and those with language

barriers.

amount determined by the department, but not to exceed $3,200.00

per participant.

(d) A district receiving funds under this subsection shall use

the funds only for department-approved training programs under this

subsection.

(6) From the allocations under subsection (1), there is

allocated an amount not to exceed $250,000.00 for ~~2015-2016~~ 2016-

2017 only for competitive grants to districts that provide pupils

in grades K to 12 with expanded opportunities in science education

and skills by participating in events and competitions hosted by

Science Olympiad. All of the following apply to the grant funding

under this subsection:

(a) A district applying for a grant under this subsection

shall submit an application in the form and manner determined by

the department not later than November 15, 2015. The department

shall select districts for grants and make notification not later

than December 15, 2015. To be eligible for a grant, a district

shall pay at least 25% of the cost of participating in the Science

Olympiad program.

(b) The department shall distribute the grant funding

allocated under this subsection for the following purposes:

(i) Grants to districts of up to $800.00 for new elementary

teams.

(ii) Grants to districts of up to $400.00 for established

elementary teams.

(iii) Grants to districts of up to $1,600.00 for new secondary

teams.

(iv) Grants to districts of up to $800.00 for established

secondary teams.

(7) From the general fund allocation under subsection (1),

there is allocated an amount not to exceed $250,000.00 for ~~2015-~~

~~2016~~ 2016-2017 only for a grant to the Van Andel Education

Institute for the purposes of advancing and promoting science

education and increasing the number of students who choose to

pursue careers in science or science-related fields. Funds

allocated under this subsection shall be used to provide

professional development for science teachers in using student-

driven, inquiry-based instruction.

Sec. 99t. (1) From the general fund appropriation under

section 11, there is allocated an amount not to exceed

$2,000,000.00 for 2016-2017 to purchase statewide access to an

online algebra tool that meets all of the following:

(a) Provides students statewide with complete access to videos

aligned with state standards including study guides and workbooks

that are aligned with the videos.

(b) Provides students statewide with access to a personalized

online algebra learning tool including adaptive diagnostics.

assessments that emulate the state assessment with immediate

feedback and help solving problems.

(d) Provides students statewide with online access to algebra

help 24 hours a day and 7 days a week from study experts, teachers,

and peers on a moderated social networking platform.

(e) Provides an online algebra professional development

network for teachers.

(f) Is already provided under a statewide contract in at least

1 other state.

(2) The department shall choose the online algebra tool by

October 1, 2016.

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.

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 either certify to the department that the district

was in full compliance with this section regarding the number of

hours and days of pupil instruction in the previous school year, or

report to the department, in a form and manner prescribed by the

center, each instance of noncompliance. 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

shall 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 3 additional days or

the equivalent number of additional hours for which pupil

instruction is not provided in a district 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.

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 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 shall 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 is on

track for course completion at proficiency level, 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.

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. 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.

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. 102d. (1) From the funds appropriated in section 11,

there is allocated an amount not to exceed ~~$1,500,000.00~~

$1,600,000.00 for ~~2015-2016~~ 2016-2017 for reimbursements to

districts and intermediate districts for the licensing of school

data analytical tools as described under this section. The

reimbursement is for districts and intermediate districts that

choose to use a school data analytical tool to assist the district

and intermediate district and that enter into a licensing agreement

for a school data analytical tool with 1 of the vendors approved by

the department of technology, management, and budget under

subsection (2). Funds allocated under this section are intended to

provide districts and intermediate districts with financial

forecasting and transparency reporting tools to help improve the

financial health of districts and intermediate districts and to

improve communication with the public, resulting in increased fund

balances for districts and intermediate districts.

(2) Not later than October 15, ~~2015,~~ 2016, the department of

technology, management, and budget shall review vendors for school

data analytical tools and provide districts and intermediate

districts with a list of at least 2 and up to 4 approved vendors

that districts and intermediate districts may use to be eligible

for a reimbursement paid under this section. For a vendor to be

approved under this section, the department of technology,

management, and budget must determine that the school data

analytical tool supplied by the vendor meets at least all of the

following:

(a) Analyzes financial data.

(b) Analyzes academic data.

(d) Has the capability to provide peer district or

intermediate districts comparisons of both financial and academic

data.

(e) Has the capability to provide financial projections for at

least 3 subsequent fiscal years.

(3) ~~Funds~~ From the funds allocated under ~~this section~~

subsection (1), an amount not to exceed $1,500,000.00 shall be paid

to districts as a reimbursement for already having a licensing

agreement or for entering into a licensing agreement not later than

December 1, ~~2015~~ 2016 with a vendor approved under subsection (2)

to implement a school data analytical tool. Reimbursement under

this section shall be made on an equal per-pupil basis.

(4) From the funds allocated under subsection (1), an amount

not to exceed $100,000.00 shall be paid to intermediate districts

as a reimbursement for already having a licensing agreement or for

entering into a licensing agreement not later than December 1, 2016

with a vendor approved under subsection (2) to implement a school

data analytical tool. Reimbursement under this section shall be

made on an equal per-pupil basis for the combined total number of

pupils in membership in each intermediate district and its

constituent districts.

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

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

Sec. 104. (1) ~~In order to receive state aid under this~~

~~article, a district shall comply with sections 1249, 1278a, 1278b,~~

~~1279, 1279g, and 1280b of the revised school code, MCL 380.1249,~~

~~380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970~~

~~PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from~~

From the state school aid fund money appropriated in section 11,

there is allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

~~$43,994,400.00~~ $22,000,000.00 for payments on behalf of districts

for costs associated with complying with those provisions of law

and for the use of computer adaptive tests. In addition, from the

federal funds appropriated in section 11, there is allocated for

~~2015-2016~~ 2016-2017 an amount estimated at $6,250,000.00, funded

from DED-OESE, title VI, state assessment funds, and from DED-

OSERS, section 504 of part B of the individuals with disabilities

education act, Public Law 94-142, plus any carryover federal funds

from previous year appropriations, for the purposes of complying

with the federal no child left behind act of 2001, Public Law 107-

110, or the every student succeeds act, Public Law 114-95.

(2) The ~~results of each test administered as part of the~~

Michigan student test of educational progress (M-STEP), including

tests administered to high school students, ~~shall include an item~~

~~analysis that lists all items that are counted for individual pupil~~

~~scores and the percentage of pupils choosing each possible~~

~~response.~~shall be replaced with a computer adaptive test. The

department of technology, management, and budget, using a

competitive bidding process, shall award a contract for a computer

adaptive test.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

(4) Notwithstanding section 17b, payments on behalf of

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

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

~~an amount not to exceed $8,500,000.00 for the following purposes:~~

~~(a) Converting existing student assessments to online~~

~~assessments.~~

~~(b) Providing paper and pencil test versions to districts not~~

~~prepared to implement online assessments.~~

~~(c) Expanding writing assessments to additional grade levels.~~

~~(d) Providing an increased number of constructed response test~~

~~questions so that pupils can demonstrate higher-order skills such~~

~~as problem solving and communicating reasoning.~~

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

~~an amount not to exceed $3,200,000.00 for the development or~~

~~selection of an online reporting tool to provide student-level~~

~~assessment data in a secure environment to educators, parents, and~~

~~pupils immediately after assessments are scored. The department and~~

~~the center shall ensure that any data collected by the online~~

~~reporting tool do not provide individually identifiable student~~

~~data to the federal government.~~

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

~~an amount not to exceed $5,600,000.00 for the purpose of~~

~~implementing a summative assessment system pursuant to section~~

~~104c.~~

~~(8) As used in this section:~~

~~(a) "DED" means the United States Department of Education.~~

~~(b) "DED-OESE" means the DED Office of Elementary and~~

~~Secondary Education.~~

~~(c) "DED-OSERS" means the DED Office of Special Education and~~

~~Rehabilitative Services.~~

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

allocated an amount not to exceed $25,000,000.00 for ~~2015-2016~~

2016-2017 for adult education programs authorized under this

section. Except as otherwise provided under subsections ~~(16)~~ (14)

and ~~(18),~~ (15), funds allocated under this section are restricted

for adult education programs as authorized under this section only.

A recipient of funds under this section shall not use those funds

for any other purpose.

(2) To be eligible for funding under this section, an eligible

adult education provider shall employ certificated teachers and

qualified administrative staff and shall offer continuing education

opportunities for teachers to allow them to maintain certification.

(3) To be eligible to be a participant funded under this

section, an individual shall be enrolled in an adult basic

education program, an adult secondary education program, an adult

English as a second language program, a ~~general educational~~

~~development (G.E.D.)~~ high school equivalency 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, 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.

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

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

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

year, is enrolled in an adult basic education program, and is

determined by a department-approved assessment, in a form and

manner prescribed by the department, to be below grade 9 level in

reading or mathematics, or both.

(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) By April 1 of each fiscal year, the intermediate districts

within a prosperity region or subregion shall determine which

intermediate district will serve as the prosperity region's or

subregion's fiscal agent for the next fiscal year and shall notify

the department in a form and manner determined by the department.

The department shall approve or disapprove of the prosperity

region's or subregion's selected fiscal agent. From the funds

allocated under subsection (1), an amount as determined under this

subsection shall be allocated to each intermediate district serving

as a fiscal agent for adult education programs in each of the

prosperity regions or subregions identified by the department. An

intermediate district shall not use more than 5% of the funds

allocated under this subsection for administration costs for

serving as the fiscal agent. Beginning in 2014-2015, 67% of the

allocation provided to each intermediate district serving as a

fiscal agent shall be based on the proportion of total funding

formerly received by the adult education providers in that

prosperity region or subregion in 2013-2014, and 33% shall be

allocated based on the factors in subdivisions (a), (b), and (c).

For 2016-2017, 33% of the allocation provided to each intermediate

district serving as a fiscal agent shall be based upon the

proportion of total funding formerly received by the adult

education providers in that prosperity region in 2013-2014 and 67%

of the allocation shall be based upon the factors in subdivisions

(a), (b), and (c). Beginning in 2017-2018, 100% of the allocation

provided to each intermediate district serving as a fiscal agent

shall be based on the factors in subdivisions (a), (b), and (c).

The funding factors for this section are as follows:

(a) Sixty percent of this portion of the funding shall be

distributed based upon the proportion of the state population of

individuals between the ages of 18 and 24 that are not high school

graduates that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American community survey (ACS) from the United States Census

Bureau.

(b) Thirty-five percent of this portion of the funding shall

be distributed based upon the proportion of the state population of

individuals age 25 or older who are not high school graduates that

resides in each of the prosperity regions or subregions, as

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

community survey (ACS) from the United States Census Bureau.

distributed based upon the proportion of the state population of

individuals age 18 or older who lack basic English language

proficiency that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American community survey (ACS) from the United States Census

Bureau.

(5) To be an eligible fiscal agent, an intermediate district

must agree to do the following in a form and manner determined by

the department:

(a) Distribute funds to adult education programs in a

prosperity region or subregion as described in this section.

(b) Collaborate with the talent district career council, which

is an advisory council of the workforce development boards located

in the prosperity region or subregion, or its successor, to develop

a regional strategy that aligns adult education programs and

services into an efficient and effective delivery system for adult

education learners, with special consideration for providing

contextualized learning and career pathways and addressing barriers

to education and employment.

is an advisory council of the workforce development boards located

in the prosperity region or subregion, or its successor, to create

a local process and criteria that will identify eligible adult

education providers to receive funds allocated under this section

based on location, demand for services, past performance, quality

indicators as identified by the department, and cost to provide

instructional services. The fiscal agent shall determine all local

processes, criteria, and provider determinations. However, the

local processes, criteria, and provider services must be approved

by the department before funds may be distributed to the fiscal

agent.

(d) Provide oversight to its adult education providers

throughout the program year to ensure compliance with the

requirements of this section.

(e) Report adult education program and participant data and

information as prescribed by the department.

~~(6) 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.~~

(6) ~~(7)~~ An adult basic education program, an adult secondary

education program, or an adult English as a second language program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

(a) The program enrolls adults who are determined by a

department-approved assessment, in a form and manner prescribed by

the department, to be below ~~ninth~~ twelfth grade level in reading or

mathematics, or both, or to lack basic English proficiency.

(b) The program tests individuals for eligibility under

subdivision (a) before enrollment and upon completion of the

program in compliance with the state-approved assessment policy.

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed at or above the ninth grade level.

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

assessments after having completed at least 450 hours of

instruction.

(d) A participant in an adult secondary education program is

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed above the twelfth grade level.

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

assessments after having at least 450 hours of instruction.

(e) ~~(d)~~ A funding recipient enrolling a participant in an

English as a second language program is eligible for funding

according to subsection ~~(11)~~ (9) until the participant meets 1 of

the following:

(i) The participant is assessed as having attained basic

English proficiency as determined by a department-approved

assessment.

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

department-approved assessments after having completed at least 450

hours of instruction. The department shall provide information to a

funding recipient regarding appropriate assessment instruments for

this program.

(7) ~~(8)~~ A ~~general educational development (G.E.D.)~~ high school

equivalency test preparation program operated on a year-round or

school year basis may be funded under this section, subject to all

of the following:

(a) The program enrolls adults who do not have a high school

diploma or a high school equivalency certificate.

(b) The program shall administer a pre-test approved by the

department before enrolling an individual to determine the

individual's literacy levels, shall administer a ~~G.E.D.~~ high school

equivalency practice test to determine the individual's potential

for success on the ~~G.E.D.~~ high school equivalency test, and shall

administer a post-test upon completion of the program in compliance

with the state-approved assessment policy.

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.~~high school equivalency

certificate.

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

department-approved assessments used to determine readiness to take

the ~~G.E.D.~~ high school equivalency test after having completed at

least 450 hours of instruction.

(8) ~~(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.

subsection ~~(11)~~ (9) for a participant in a course offered under

this subsection until 1 of the following occurs:

(i) The participant passes the course and earns a high school

diploma.

(ii) The participant fails to earn credit in 2 successive

semesters or terms in which the participant is enrolled after

having completed at least 900 hours of instruction.

~~(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.~~

(9) ~~(11)~~ A funding recipient shall receive payments under this

section in accordance with all of the following:

(a) ~~Eighty percent for enrollment of eligible~~

~~participants.~~Statewide allocation criteria, including 3-year

average enrollments, census data, and local needs.

(b) ~~Twenty percent for participant~~ Participant completion of

the adult basic education objectives by achieving an educational

gain as determined by the national reporting system levels; for

achieving basic English proficiency, as determined by the

department; for obtaining a ~~G.E.D.~~ high school equivalency

certificate or passage of 1 or more individual ~~G.E.D.~~ high school

equivalency tests; for attainment of a high school diploma or

passage of a course required for a participant to attain a high

school diploma; for enrollment in a postsecondary institution, or

for entry into or retention of employment, as applicable.

the innovation and opportunity act.

(d) Allowable expenditures.

(10) ~~(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)~~ (6),

(7), or (8) may continue to receive adult education services in

that program upon the payment of tuition. The tuition level shall

be determined by the local or intermediate district conducting the

program.

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

correctional facility shall not be counted as a participant under

this section.

(12) ~~(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.

(13) ~~(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.

(14) ~~(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. In addition, a funding

recipient shall agree to pay to a career and technical education

program under section 61a the amount of funding received under this

section in the proportion of career and technical education

coursework used to satisfy adult basic education programming, as

billed to the funding recipient by programs operating under section

61a.

~~(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.~~

(15) ~~(18)~~ From the amount appropriated in subsection (1), an

amount not to exceed $500,000.00 shall be allocated for ~~2015-2016~~

2016-2017 to not more than 1 pilot program that is located in a

prosperity region with 2 or more subregions and that connects adult

education participants directly with employers by linking adult

education, career and technical skills, and workforce development.

To be eligible for funding under this subsection, a pilot program

shall provide a collaboration linking adult education programs

within the county, the area career/technical center, and local

employers, and shall meet the additional criteria in subsections

~~(19) and (20).~~ (16) and (17). Funding under this subsection for

~~2015-2016~~ 2016-2017 is for the ~~first~~ second of 3 years of funding.

(16) ~~(19)~~ A pilot program funded under subsection ~~(18)~~ (15)

shall require adult education staff to work with Michigan Works! to

identify a cohort of participants who are most prepared to

successfully enter the workforce. Participants identified under

this subsection shall be dually enrolled in adult education

programming and at least 1 technical course at the area

career/technical center.

(17) ~~(20)~~ A pilot program funded under subsection ~~(18)~~ (15)

shall have on staff an adult education navigator who will serve as

a caseworker for each participant identified under subsection ~~(19).~~

(16). The navigator shall work with adult education staff and

potential employers to design an educational program best suited to

the personal and employment needs of the participant, and shall

work with human service agencies or other entities to address any

barrier in the way of participant access.

(18) ~~(21)~~ Not later than December 1, ~~2016,~~ 2017, the pilot

program funded under subsection ~~(18)~~ (15) shall provide to the

senate and house appropriations subcommittees on school aid and to

the senate and house fiscal agencies a report detailing number of

participants, graduation rates, and a measure of transitioning to

employment.

(19) ~~(22)~~ The department shall develop an application process

for a pilot program to be funded under subsection ~~(18)~~ (15) and

shall award funding not later than ~~November 1, 2015.~~ October 1,

2016. Funding allocated under subsection ~~(18)~~ (15) may be paid on a

schedule other than that specified under section 17b.

(20) ~~(23)~~ As used in this section:

(a) "Career pathway" means a combination of rigorous and high-

quality education, training, and other services that comply with

all of the following:

(i) Aligns with the skill needs of industries in the economy

of this state or in the regional economy involved.

(ii) Prepares an individual to be successful in any of a full

range of secondary or postsecondary education options, including

apprenticeships registered under the act of August 16, 1937

(commonly known as the "national apprenticeship act"), 29 USC 50 et

seq.

(iii) Includes counseling to support an individual in

achieving the individual's education and career goals.

(iv) Includes, as appropriate, education offered concurrently

with and in the same context as workforce preparation activities

and training for a specific occupation or occupational cluster.

(v) Organizes education, training, and other services to meet

the particular needs of an individual in a manner that accelerates

the educational and career advancement of the individual to the

extent practicable.

(vi) Enables an individual to attain a secondary school

diploma or its recognized equivalent, and at least 1 recognized

postsecondary credential.

(vii) Helps an individual enter or advance within a specific

occupation or occupational cluster.

(b) "Department" means the department of talent and economic

development.

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.

~~(d) "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).~~

(d) "High school equivalency test" means the G.E.D. test

developed by the GED Testing Service, the Test Assessing Secondary

Completion (TASC) developed by CTB/McGraw-Hill, the HISET test

developed by the Education Testing Service (ETS), or another

comparable test approved by the department of talent and economic

development.

Sec. 147. (1) The allocation for ~~2015-2016~~ 2016-2017 for the

public school employees' retirement system pursuant to the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

to 38.1408, shall be made using the individual projected benefit

entry age normal cost method of valuation and risk assumptions

adopted by the public school employees retirement board and the

department of technology, management, and budget.

(2) The annual level percentage of payroll contribution rates

for the ~~2015-2016~~ 2016-2017 fiscal year, as determined by the

retirement system, are estimated as follows:

(a) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who are enrolled in

the health premium subsidy, the annual level percentage of payroll

contribution rate is estimated at ~~36.31%,~~ 36.64%, with ~~25.78%~~

24.94% paid directly by the employer.

(b) For public school employees who first worked for a public

school reporting unit on or after July 1, 2010 and who are enrolled

in the health premium subsidy, the annual level percentage of

payroll contribution rate is estimated at ~~35.09%,~~ 36.01%, with

~~24.56%~~ 24.31% paid directly by the employer.

school reporting unit on or after July 1, 2010 and who participate

in the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~34.66%,~~ 35.79%, with

~~24.13%~~ 24.09% paid directly by the employer.

(d) For public school employees who first worked for a public

school reporting unit on or after September 4, 2012, who elect

defined contribution, and who participate in the personal

healthcare fund, the annual level percentage of payroll

contribution rate is estimated at ~~31.49%,~~ 32.66%, with 20.96% paid

directly by the employer.

(e) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who are enrolled in the health premium subsidy,

the annual level percentage of payroll contribution rate is

estimated at ~~31.92%,~~ 32.88%, with ~~21.39%~~ 21.18% paid directly by

the employer.

(f) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who participate in the personal healthcare fund,

the annual level percentage of payroll contribution rate is

estimated at ~~31.49%,~~ 32.66%, with 20.96% paid directly by the

employer.

(g) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who participate in

the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~35.88%,~~ 36.42%, with

~~25.35%~~ 24.72% paid directly by the employer.

(3) In addition to the employer payments described in

subsection (2), the employer shall pay the applicable contributions

to the Tier 2 plan, as determined by the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408.

(4) The contribution rates in subsection (2) reflect an

amortization period of 23 22 years for ~~2015-2016.~~ 2016-2017. The

public school employees' retirement system board shall notify each

district and intermediate district by February 28 of each fiscal

year of the estimated contribution rate for the next fiscal year.

Sec. 147a. From the appropriation in section 11, there is

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

$100,000,000.00 for payments to participating districts. A district

that receives money under this section shall use that money solely

for the purpose of offsetting a portion of the retirement

contributions owed by the district for the fiscal year in which it

is received. The amount allocated to each participating district

under this section shall be based on each participating district's

percentage of the total statewide payroll for all participating

districts for the immediately preceding fiscal year. As used in

this section, "participating district" means a district that is a

reporting unit of the Michigan public school employees' retirement

system under the public school employees retirement act of 1979,

1980 PA 300, MCL 38.1301 to 38.1408, and that reports employees to

the Michigan public school employees' retirement system for the

applicable fiscal year.

Sec. 147c. (1) From the appropriation in section 11, there is

allocated for ~~2015-2016~~ 2016-2017 an amount not to exceed

~~$892,900,000.00~~ $982,200,000.00 from the state school aid fund for

payments to districts and intermediate districts that are

participating entities of the Michigan public school employees'

retirement system. In addition, from the general fund money

appropriated in section 11, there is allocated for ~~2015-2016~~ 2016-

2017 an amount not to exceed $600,000.00 for payments to district

libraries that are participating entities of the Michigan public

school employees' retirement system.

(2) For ~~2015-2016,~~ 2016-2017, the amounts allocated under

subsection (1) are estimated to provide an average MPSERS rate cap

per pupil amount of ~~$601.00~~ $660.00 and are estimated to provide a

rate cap per pupil for districts ranging between ~~$4.00~~ $5.00 and

~~$2,300.00.~~$3,100.00.

(3) Payments made under this section ~~for 2015-2016~~ shall be

equal to the difference between the unfunded actuarial accrued

liability contribution rate as calculated pursuant to section 41 of

the public school employees retirement act of 1979, 1980 PA 300,

MCL 38.1341, as calculated without taking into account the maximum

employer rate of 20.96% included in section 41 of the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the

maximum employer rate of 20.96% included in section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341.

(4) The amount allocated to each participating entity under

this section shall be based on each participating entity's

proportion of the total covered payroll for the immediately

preceding fiscal year for the same type of participating entities.

A participating entity that receives funds under this section shall

use the funds solely for the purpose of retirement contributions as

specified in subsection (5).

(5) Each participating entity receiving funds under this

section shall forward an amount equal to the amount allocated under

subsection (4) to the retirement system in a form, manner, and time

frame determined by the retirement system.

(6) Funds allocated under this section should be considered

when comparing a district's growth in total state aid funding from

1 fiscal year to the next.

(7) Not later than December 20, ~~2015,~~ 2016, the department

shall publish and post on its website an estimated MPSERS rate cap

per pupil for each district.

(8) As used in this section:

(a) "MPSERS rate cap per pupil" means an amount equal to the

quotient of the district's payment under this section divided by

the district's pupils in membership.

(b) "Participating entity" means a district, intermediate

district, or district library that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1437, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

retirement system under the public school employees retirement act

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

(d) "Retirement system" means the Michigan public school

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

Sec. 152a. (1) As required by the court in the consolidated

cases known as Adair v State of Michigan, Michigan supreme court

docket nos. 137424 and 137453, from the state school aid fund money

appropriated in section 11 there is allocated for ~~2015-2016~~ 2016-

2017 an amount not to exceed $38,000,500.00 to be used solely for

the purpose of paying necessary costs related to the state-mandated

collection, maintenance, and reporting of data to this state.

(2) From the allocation in subsection (1), the department

shall make payments to districts and intermediate districts in an

equal amount per-pupil based on the total number of pupils in

membership in each district and intermediate district. The

department shall not make any adjustment to these payments after

the final installment payment under section 17b is made.

Sec. 152b. (1) From the school aid funds appropriated in

section 11, there is allocated an amount not to exceed

$1,000,000.00 for 2016-2017 to reimburse nonpublic schools for the

costs identified in the Nonpublic Mandate Report published by the

department on November 25, 2014 to ensure the health and safety of

all schoolchildren in the state.

(2) The department shall distribute funds allocated under

subsection (1) to nonpublic school applicants in an amount equal to

$10.00 per enrolled student in a form and manner determined by the

department.

(3) If the funds allocated under this section are insufficient

to fully fund payments as otherwise calculated under this section,

the department shall prorate payments on an equal per-student

basis.

Sec. 166. (1) ~~A district in which a school official, member of~~

~~a board, or other person dispenses or otherwise distributes a~~

~~family planning drug or device in a public school in violation of~~

~~section 1507 of the revised school code, being section 380.1507 of~~

~~the Michigan Compiled Laws, dispenses prescriptions for any family~~

~~planning drug, or makes referrals for abortions shall forfeit 5% of~~

~~its total state aid appropriation.~~ The governing board of a

district or intermediate district shall adopt and implement a

disciplinary policy as described in subsections (2) and (3) to

provide penalties for violations of section 1507 of the revised

school code, MCL 380.1507, and penalties for a school official,

member of a governing board, employee of the district or

intermediate district, or other person who refers a pupil for an

abortion or assists a pupil in obtaining an abortion. A district or

intermediate district that fails to adopt a policy required under

this section within 3 years after the effective date of the 2016

amendments to this section shall forfeit from its total state

school aid an amount equal to $100,000.00.

(2) A disciplinary policy required under subsection (1) shall

provide for a financial penalty to be applied against an individual

employed by the district or intermediate district who violates the

policy under subsection (1) that is equivalent to not less than 3%

of that individual's annual compensation. For employees covered by

a collective bargaining agreement, the district or intermediate

district and the collective bargaining unit shall negotiate the

specific nature of the penalty or penalties, which may include

salary reduction, forfeiture of compensated leave time, a fine, or

other means as determined by collective bargaining agreement.

(3) A disciplinary policy required under subsection (1) shall

provide penalties for an individual employed by a contractor that

provides services to the district or intermediate district, or an

House Bill No. 5291 as amended April 26, 2016

individual who volunteers to provide assistance or services to the

district or intermediate district individually or on behalf of a

contractor or other organization providing services to the district

or intermediate district. Penalties under this subsection may

include prohibiting an individual, contractor, or organization from

providing future services to the district or intermediate district

permanently or for a designated length of time.

(4) A district or intermediate district that applies a

financial penalty against or collects a fine from an individual as

provided under subsection (2) shall refund to the state school aid

fund an amount of money equal to the amount of the penalty or fine.

[Sec. 167a. A district shall implement a plan to reduce pupil

expulsions and suspensions that exceed 10 days. It is the intent of the

legislature that, beginning in 2017-2018, a district that has not

implemented a plan to reduce pupil expulsions and suspensions that exceed

10 days will be subject to forfeiture of a portion of its total state

school aid.

]

Sec. 201. (1) Subject to the conditions set forth in this

article, the amounts listed in this section are appropriated for

community colleges for the fiscal year ending September 30, ~~2016,~~

2017, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

(a) The gross appropriation is ~~$387,825,600.00.~~

$402,116,300.00. After deducting total interdepartmental grants and

intradepartmental transfers in the amount of $0.00, the adjusted

gross appropriation is ~~$387,825,600.00.~~$402,116,300.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$256,714,800.00.~~$260,414,800.00.

(v) State general fund/general purpose money,

~~$131,110,800.00.~~$141,701,500.00.

(2) Subject to subsection (3), the amount appropriated for

community college operations is ~~$311,492,000.00,~~ $322,082,700.00,

allocated as follows:

(a) The appropriation for Alpena Community College is

~~$5,464,400.00, $5,390,700.00 for operations and $73,700.00 for~~

~~performance funding.~~$5,657,600.00, $5,464,400.00 for operations and

$193,200.00 for performance funding.

(b) The appropriation for Bay de Noc Community College is

~~$5,490,200.00, $5,419,500.00 for operations and $70,700.00 for~~

~~performance funding.~~$5,660,300.00, $5,490,200.00 for operations and

$170,100.00 for performance funding.

~~$14,498,900.00 for operations and $205,100.00 for performance~~

~~funding.~~$15,194,300.00, $14,704,000.00 for operations and

$490,300.00 for performance funding.

(d) The appropriation for Glen Oaks Community College is

~~$2,551,100.00, $2,516,100.00 for operations and $35,000.00 for~~

~~performance funding.~~$2,637,400.00, $2,551,100.00 for operations and

$86,300.00 for performance funding.

(e) The appropriation for Gogebic Community College is

~~$4,509,900.00, $4,451,400.00 for operations and $58,500.00 for~~

~~performance funding.~~$4,673,300.00, $4,509,900.00 for operations and

$163,400.00 for performance funding.

(f) The appropriation for Grand Rapids Community College is

~~$18,187,300.00, $17,947,500.00 for operations and $239,800.00 for~~

~~performance funding.~~$18,820,900.00, $18,187,300.00 for operations

and $633,600.00 for performance funding.

(g) The appropriation for Henry Ford College is

~~$21,893,300.00, $21,623,800.00 for operations and $269,500.00 for~~

~~performance funding.~~$22,573,800.00, $21,893,300.00 for operations

and $680,500.00 for performance funding.

(h) The appropriation for Jackson College is ~~$12,245,300.00,~~

~~$12,087,300.00 for operations and $158,000.00 for performance~~

~~funding.~~$12,611,800.00, $12,245,300.00 for operations and

$366,500.00 for performance funding.

(i) The appropriation for Kalamazoo Valley Community College

is ~~$12,689,400.00, $12,503,100.00 for operations and $186,300.00~~

~~for performance funding.~~$13,133,500.00, $12,689,400.00 for

operations and $444,100.00 for performance funding.

(j) The appropriation for Kellogg Community College is

~~$9,950,100.00, $9,813,500.00 for operations and $136,600.00 for~~

~~performance funding.~~$10,280,800.00, $9,950,100.00 for operations

and $330,700.00 for performance funding.

(k) The appropriation for Kirtland Community College is

~~$3,221,500.00, $3,167,700.00 for operations and $53,800.00 for~~

~~performance funding.~~$3,338,100.00, $3,221,500.00 for operations and

$116,600.00 for performance funding.

(l) The appropriation for Lake Michigan College is

~~$5,417,700.00, $5,342,900.00 for operations and $74,800.00 for~~

~~performance funding.~~$5,598,300.00, $5,417,700.00 for operations and

$180,600.00 for performance funding.

(m) The appropriation for Lansing Community College is

~~$31,288,200.00, $30,877,600.00 for operations and $410,600.00 for~~

~~performance funding.~~$32,225,000.00, $31,288,200.00 for operations

and $936,800.00 for performance funding.

(n) The appropriation for Macomb Community College is

~~$33,239,500.00, $32,816,600.00 for operations and $422,900.00 for~~

~~performance funding.~~$34,304,300.00, $33,239,500.00 for operations

and $1,064,800.00 for performance funding.

(o) The appropriation for Mid Michigan Community College is

~~$4,757,700.00, $4,682,000.00 for operations and $75,700.00 for~~

~~performance funding.~~$4,941,500.00, $4,757,700.00 for operations and

$183,800.00 for performance funding.

(p) The appropriation for Monroe County Community College is

~~$4,565,600.00, $4,492,900.00 for operations and $72,700.00 for~~

~~performance funding.~~$4,736,700.00, $4,565,600.00 for operations and

$171,100.00 for performance funding.

(q) The appropriation for Montcalm Community College is

~~$3,280,600.00, $3,226,700.00 for operations and $53,900.00 for~~

~~performance funding.~~$3,431,000.00, $3,280,600.00 for operations and

$150,400.00 for performance funding.

(r) The appropriation for C.S. Mott Community College is

~~$15,901,700.00, $15,686,100.00 for operations and $215,600.00 for~~

~~performance funding.~~$16,416,400.00, $15,901,700.00 for operations

and $514,700.00 for performance funding.

(s) The appropriation for Muskegon Community College is

~~$9,020,700.00, $8,901,000.00 for operations and $119,700.00 for~~

~~performance funding.~~$9,333,300.00, $9,020,700.00 for operations and

$312,600.00 for performance funding.

(t) The appropriation for North Central Michigan College is

~~$3,224,800.00, $3,172,400.00 for operations and $52,400.00 for~~

~~performance funding.~~$3,382,600.00, $3,224,800.00 for operations and

$157,800.00 for performance funding.

(u) The appropriation for Northwestern Michigan College is

~~$9,200,500.00, $9,078,800.00 for operations and $121,700.00 for~~

~~performance funding.~~$9,483,300.00, $9,200,500.00 for operations and

$282,800.00 for performance funding.

(v) The appropriation for Oakland Community College is

~~$21,429,400.00, $21,123,300.00 for operations and $306,100.00 for~~

~~performance funding.~~$22,251,500.00, $21,429,400.00 for operations

and $822,100.00 for performance funding.

~~(w) The appropriation for St. Clair County Community College~~

~~is $7,158,000.00, $7,061,600.00 for operations and $96,400.00 for~~

~~performance funding.~~

(w) ~~(x)~~ The appropriation for Schoolcraft College is

~~$12,706,400.00, $12,513,700.00 for operations and $192,700.00 for~~

~~performance funding.~~$13,194,800.00, $12,706,400.00 for operations

and $488,400.00 for performance funding.

(x) ~~(y)~~ The appropriation for Southwestern Michigan College is

~~$6,657,600.00, $6,576,400.00 for operations and $81,200.00 for~~

~~performance funding.~~$6,837,800.00, $6,657,600.00 for operations and

$180,200.00 for performance funding.

(y) The appropriation for St. Clair County Community College

is $7,401, 800.00, $7,158,000.00 for operations and $243,800.00 for

performance funding.

(z) The appropriation for Washtenaw Community College is

~~$13,301,100.00, $13,077,300.00 for operations and $223,800.00 for~~

~~performance funding.~~$13,861,700.00, $13,301,100.00 for operations

and $560,600.00 for performance funding.

(aa) The appropriation for Wayne County Community College is

~~$16,989,800.00, $16,727,600.00 for operations and $262,200.00 for~~

~~performance funding.~~$17,578,100.00, $16,989,800.00 for operations

and $588,300.00 for performance funding.

(bb) The appropriation for West Shore Community College is

~~$2,446,200.00, $2,414,900.00 for operations and $31,300.00 for~~

~~performance funding.~~$2,522,800.00, $2,446,200.00 for operations and

$76,600.00 for performance funding.

(3) The amount appropriated in subsection (2) for community

college operations is appropriated from the following:

(a) State school aid fund, ~~$236,181,200.00.~~$185,481,200.00.

(b) State general fund/general purpose money,

~~$75,310,800.00.~~$136,601,500.00.

(4) From the appropriations described in subsection (1),

subject to section 207a, the amount appropriated for fiscal year

~~2015-2016~~ 2016-2017 to offset certain fiscal year ~~2015-2016~~ 2016-

2017 retirement contributions is $1,733,600.00, appropriated from

the state school aid fund.

(5) From the appropriations described in subsection (1),

subject to section 207b, the amount appropriated for payments to

community colleges that are participating entities of the

retirement system is ~~$69,500,000.00, $17,200,000.00~~ $73,200,000.00,

appropriated from the state school aid fund. ~~, and $52,300,000.00~~

~~appropriated from general fund/general purpose money.~~

(6) From the appropriations described in subsection (1),

subject to section 207c, the amount appropriated for renaissance

zone tax reimbursements is ~~$5,100,000.00, $1,600,000.00~~

~~appropriated from the state school aid fund, and $3,500,000.00~~

$5,100,000.00, appropriated from general fund/general purpose

money.

Sec. 201a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2017~~

2018 for the items listed in section 201. The fiscal year ~~2016-2017~~

2017-2018 appropriations are anticipated to be the same as those

for fiscal year ~~2015-2016,~~ 2016-2017, except that the amounts will

be adjusted for changes in retirement costs, caseload and related

costs, federal fund match rates, economic factors, and available

revenue. These adjustments will be determined after the January

~~2016~~ 2017 consensus revenue estimating conference.

Sec. 202a. As used in this article:

(a) "Center" means the center for educational performance and

information created in section 94a.

(b) ~~(a)~~ "Michigan renaissance zone act" means the Michigan

renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.

is a reporting unit of the retirement system and that reports

employees to the retirement system for the state fiscal year.

(d) ~~(c)~~ "Retirement board" means the board that administers

the retirement system under the public school employees retirement

act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

(e) ~~(d)~~ "Retirement system" means the Michigan public school

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

(f) ~~(e)~~ "Workforce development agency" means the workforce

development agency ~~of the Michigan strategic fund.~~within the

department of talent and economic development--talent investment

agency.

Sec. 203. Unless otherwise specified, a community college that

receives appropriations in section 201, ~~and~~ the workforce

development agency, and the center shall use the ~~internet~~ Internet

to fulfill the reporting requirements of this article. This

requirement may include transmission of reports via electronic mail

to the recipients identified for each reporting requirement or it

may include placement of reports on an ~~internet~~ Internet or

intranet site.

Sec. 206. The funds appropriated in section 201 are

appropriated for community colleges with fiscal years ending June

30, ~~2016~~ 2017 and shall be paid out of the state treasury and

distributed by the state treasurer to the respective community

colleges in 11 monthly installments on the sixteenth of each month,

or the next succeeding business day, beginning with October 16,

~~2015.~~ 2016. Each community college shall accrue its July and August

~~2016~~ 2017 payments to its institutional fiscal year ending June 30,

~~2016.~~ 2017. However, if the state budget director determines that a

community college failed to submit all verified Michigan community

colleges activities classification structure data for school year

~~2014-2015~~ 2015-2016 to the ~~workforce development agency~~ center by

November 1, ~~2015,~~ 2016, or failed to submit its longitudinal data

system data set for school year ~~2014-2015~~ 2015-2016 to the center

~~for educational performance and information~~ under section 219, the

state treasurer shall withhold the monthly installments from that

community college until those data are submitted. The state budget

director shall notify the chairs of the house and senate

appropriations subcommittees on community colleges at least 10 days

before withholding funds from any community college.

Sec. 207a. All of the following apply to the allocation of the

fiscal year ~~2015-2016~~ 2016-2017 appropriations described in section

201(4):

(a) A community college that receives money under section

201(4) shall use that money solely for the purpose of offsetting a

portion of the retirement contributions owed by the college for

that fiscal year.

(b) The amount allocated to each participating community

college under section 201(4) shall be based on each college's

percentage of the total covered payroll for all community colleges

that are participating colleges in the immediately preceding fiscal

year.

Sec. 207b. All of the following apply to the allocation of the

fiscal year ~~2015-2016~~ 2016-2017 appropriations described in section

201(5) for payments to community colleges that are participating

entities of the retirement system:

(a) The amount of a payment under section 201(5) shall be the

difference between the unfunded actuarial accrued liability

contribution rate as calculated under section 41 of the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1341,

and the maximum employer rate of 20.96% under section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341.

(b) The amount allocated to each community college under

section 201(5) shall be based on each community college's

percentage of the total covered payroll for all community colleges

that are participating colleges in the immediately preceding fiscal

year. A community college that receives funds under this

subdivision shall use the funds solely for the purpose of

retirement contributions under section 201(5).

section 201(5) shall forward an amount equal to the amount

allocated under subdivision (b) to the retirement system in a form

and manner determined by the retirement system.

Sec. 207c. All of the following apply to the allocation of the

appropriations described in section 201(6) to community colleges

described in section 12(3) of the Michigan renaissance zone act,

1996 PA 376, MCL 125.2692:

(a) The amount allocated to each community college under

section 201(6) for fiscal year ~~2015-2016~~ 2016-2017 shall be based

on that community college's proportion of total revenue lost by

community colleges as a result of the exemption of property taxes

levied in ~~2015~~ 2016 under the Michigan renaissance zone act, 1996

PA 376, MCL 125.2681 to 125.2696.

(b) The appropriations described in section 201(6) shall be

made to each eligible community college within 60 days after the

department of treasury certifies to the state budget director that

it has received all necessary information to properly determine the

amounts payable to each eligible community college under section 12

of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.

Sec. 209. (1) Within 30 days after the board of a community

college adopts its annual operating budget for the following fiscal

year, or after the board adopts a subsequent revision to that

budget, the community college shall make all of the following

available through a link on its website homepage:

(a) The annual operating budget and subsequent budget

revisions.

(b) A link to the most recent "Activities Classification

Structure Data Book and Companion".

fiscal year ~~2015-2016~~ 2016-2017 and fiscal year ~~2016-2017.~~2017-

2018.

(d) A listing of all debt service obligations, detailed by

project, anticipated fiscal year ~~2015-2016~~ 2016-2017 payment of

each project, and total outstanding debt.

~~(e) The estimated cost to the community college resulting from~~

~~the patient protection and affordable care act, Public Law 111-148,~~

~~as amended by the health care and education reconciliation act of~~

~~2010, Public Law 111-152.~~

(e) ~~(f)~~ Links to all of the following for the community

college:

(i) The current collective bargaining agreement for each

bargaining unit.

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

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

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee of the

community college.

(iii) Audits and financial reports for the most recent fiscal

year for which they are available.

(iv) A copy of the board of trustees resolution regarding

compliance with best practices for the local strategic value

component described in section 230(2).

(2) For statewide consistency and public visibility, community

colleges must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each community college's homepage.

The size of the icon may be reduced to 150 x 150 pixels.

~~(3) The state budget director shall determine whether a~~

~~community college has complied with this section. The state budget~~

~~director may withhold a community college's monthly installments~~

~~described in section 206 until the community college complies with~~

~~this section. The state budget director shall notify the chairs of~~

~~the house and senate appropriations subcommittee on community~~

~~colleges at least 10 days before withholding funds from any~~

~~community college.~~

(3) ~~(4)~~ Each community college shall report the following

information to the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, and the

state budget office by November 15 of each fiscal year and post

that information on its website as required under subsection (1):

(a) Budgeted fiscal year ~~2015-2016~~ 2016-2017 general fund

revenue from tuition and fees.

(b) Budgeted fiscal year ~~2015-2016~~ 2016-2017 general fund

revenue from state appropriations.

revenue from property taxes.

(d) Budgeted fiscal year ~~2015-2016~~ 2016-2017 total general

fund revenue.

(e) Budgeted fiscal year ~~2015-2016~~ 2016-2017 total general

fund expenditures.

(4) ~~(5)~~ By November 15 of each year, a community college shall

report the following information to the center ~~for educational~~

~~performance and information~~ and post the information on its website

under the budget transparency icon badge:

(a) Opportunities for earning college credit through the

following programs:

(i) State approved career and technical education or a tech

prep articulated program of study.

(ii) Direct college credit or concurrent enrollment.

(iii) Dual enrollment.

(iv) An early college/middle college program.

(b) For each program described in subdivision (a) that the

community college offers, all of the following information:

(i) The number of high school students participating in the

program.

(ii) The number of school districts that participate in the

program with the community college.

(iii) Whether a college professor, qualified local school

district employee, or other individual teaches the course or

courses in the program.

(iv) The total cost to the community college to operate the

program.

(v) The cost per credit hour for the course or courses in the

program.

(vi) The location where the course or courses in the program

are held.

(vii) Instructional resources offered to the program

instructors.

(viii) Resources offered to the student in the program.

(ix) Transportation services provided to students in the

program.

Sec. 210b. ~~(1) It is the intent of the legislature that the~~

~~Michigan Association of Collegiate Registrars and Admissions~~

~~Officers implement any agreement or agreements among the community~~

~~colleges and universities concerning the transferability of college~~

~~courses resulting from the recommendations of the committee created~~

~~under former section 210a.~~

~~(2) It is the intent of the legislature that the Michigan~~

~~Association of Collegiate Registrars and Admissions Officers, the~~

~~Michigan Community College Association, and the Presidents Council,~~

~~State Universities of Michigan shall together submit an~~

~~implementation update report to the senate and house appropriations~~

~~subcommittees on community colleges and higher education, the~~

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

~~March 1, 2016.~~ It is the intent of the legislature that by March 1,

2017, the Michigan Community College Association and the Michigan

Association of State Universities submit a status report to the

senate and house appropriations subcommittees on community

colleges, the senate and house fiscal agencies, and the state

budget director on the progress implementing the Michigan transfer

agreement, as well as an update on progress made on outstanding

concerns identified in the March 1, 2016 implementation update

report previously required by this section.

Sec. 210c. ~~(1) A study committee shall be created to develop a~~

~~process to improve the transferability and applicability of~~

~~associate of arts and associate of science degrees as a block of~~

~~credits between community colleges and public universities on a~~

~~statewide basis. Building on the Michigan transfer network~~

~~sponsored by the Michigan Association of Collegiate Registrars and~~

~~Admissions Officers and, where possible, existing local~~

~~articulation agreements between individual institutions, the~~

~~committee shall work to explore standards for program articulation~~

~~between institutions so that an associate of arts or associate of~~

~~science degree earned at a community college is considered the~~

~~equivalent of the first 60 credits of a baccalaureate degree, and~~

~~those credits can be seamlessly transferred and applied to the~~

~~program of study at the receiving university.~~

~~(2) It is the intent of the legislature that the study~~

~~committee created under subsection (1) explore issues relevant to~~

~~block transfer agreements, including, but not limited to, the~~

~~satisfaction of all lower division general education requirements,~~

~~the applicability of equivalent courses to the major program of~~

~~study, junior-level standing at the university for transfer~~

~~students, and the completion of the baccalaureate degree with a~~

~~limit of 60 post-transfer credit hours. Because of the~~

~~legislature's interest in promoting degree completion, the study~~

~~committee should also consider incentives for students to complete~~

~~both an associate degree and a baccalaureate degree.~~

~~(3) The study committee created under subsection (1) shall~~

~~consist of the following members:~~

~~(a) Ten representatives from community colleges selected by~~

~~the Michigan Community College Association.~~

~~(b) Ten representatives from public universities selected by~~

~~the Presidents Council, State Universities of Michigan.~~

~~(c) Four members of the Michigan Association of Collegiate~~

~~Registrars and Admissions Officers.~~

~~(d) One member of the Michigan house of representatives~~

~~selected by the speaker of the house.~~

~~(e) One member of the Michigan house of representatives~~

~~selected by the minority leader of the house.~~

~~(f) One member of the Michigan senate selected by the senate~~

~~majority leader.~~

~~(g) One member of the Michigan senate selected by the senate~~

~~minority leader.~~

~~(4) The study committee created under subsection (1) shall~~

~~submit a project status report and initial recommendations to the~~

~~senate and house appropriations subcommittees on community colleges~~

~~and higher education, the senate and house fiscal agencies, and the~~

~~state budget director by March 1, 2016.~~ It is the intent of the

legislature that by March 1, 2017, the Michigan Community College

Association and the Michigan Association of State Universities

submit a status report to the senate and house appropriations

subcommittees on community colleges, the senate and house fiscal

agencies, and the state budget director regarding improvements to

articulation and credit transfer policies among and between all

sectors of postsecondary education in Michigan. The report shall

identify areas of progress since the March 1, 2016 project status

report previously required by this section, including identifying

effective policies and practices developed by other states;

developing specific pathways, where advisable, that meet program

requirements for both associate's and bachelor's degree programs;

creating an enhanced online communication tool to share information

about postsecondary options in Michigan, particularly clearly

articulating transfer pathways; and establishing clear timelines

for finalizing transfer pathways.

Sec. 217. (1) The ~~workforce development agency~~ center shall do

all of the following:

(a) Establish, maintain, and coordinate the state community

college database commonly known as the "activities classification

structure" or "ACS" database.

(b) Collect data concerning community colleges and community

college programs in this state, including data required by law.

reliability of the data and the collection process.

(d) Develop model data collection policies, including, but not

limited to, policies that ensure the privacy of any individual

student data. Privacy policies shall ensure that student social

security numbers are not released to the public for any purpose.

(e) Provide data in a useful manner to allow state

policymakers and community college officials to make informed

policy decisions.

(f) Assist community colleges in complying with audits under

this section or federal law.

(2) There is created within the ~~workforce development agency~~

center the activities classification structure advisory committee.

The committee shall provide advice to the director of the ~~workforce~~

~~development agency~~ center regarding the management of the state

community college database, including, but not limited to:

(a) Determining what data are necessary to collect and

maintain to enable state and community college officials to make

informed policy decisions.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

accuracy of the data.

(f) Establishing and maintaining policies related to data

collection, including, but not limited to, privacy policies related

to individual student data.

(g) Ensuring that the data are made available to state

policymakers and citizens of this state in the most useful format

possible.

(h) Addressing other matters as determined by the director of

the ~~workforce development agency~~ center or as required by law.

(3) The activities classification structure advisory committee

created in subsection (2) shall consist of the following members:

(a) One representative from the house fiscal agency, appointed

by the director of the house fiscal agency.

(b) One representative from the senate fiscal agency,

appointed by the director of the senate fiscal agency.

appointed by the director of the workforce development agency.

(d) One representative from the center, appointed by the

director of the center.

(e) ~~(d)~~ One representative from the state budget office,

appointed by the state budget director.

(f) ~~(e)~~ One representative from the governor's policy office,

appointed by that office.

(g) ~~(f)~~ Four representatives of the Michigan Community College

Association, appointed by the president of the association. From

the groupings of community colleges given in table 17 of the

activities classification structure database described in

subsection (1), the association shall appoint 1 representative each

from group 1, group 2, and group 3, and 1 representative from

either group 3 or 4.

Sec. 219. By ~~June 30~~ October 15 of each year, each community

college shall provide its longitudinal data system data set for the

preceding academic year to the center ~~for educational performance~~

~~and information~~ for inclusion in the statewide P-20 education

longitudinal data system described in section 94a.

Sec. 220. (1) The auditor general or a certified public

accountant appointed by the auditor general may conduct performance

audits of community colleges as the auditor general considers

necessary.

(2) Within 60 days after an audit report is released by the

office of the auditor general, the principal executive officer of

the community college that was audited shall submit to the house

and senate appropriations committees, the house and senate fiscal

agencies, ~~the workforce development agency,~~ the auditor general,

and the state budget director a plan to comply with audit

recommendations. The plan shall contain projected dates and

resources required, if any, to achieve compliance with the audit

recommendations, or a documented explanation of the college's

noncompliance with the audit recommendations concerning the matters

on which the audited community college and office of the auditor

general disagree.

Sec. 222. Each community college shall have an annual audit of

all income and expenditures performed by an independent auditor and

shall furnish the independent auditor's management letter and an

annual audited accounting of all general and current funds income

and expenditures including audits of college foundations to the

members of the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, the

auditor general, the workforce development agency, the center, and

the state budget director before November 15 of each year. If a

community college fails to furnish the audit materials, the monthly

state aid installments shall be withheld from that college until

the information is submitted. All reporting shall conform to the

requirements set forth in the "2001 Manual for Uniform Financial

Reporting, Michigan Public Community Colleges". A community college

shall make the information the community college is required to

provide under this section available to the public on its website.

Sec. 223. ~~Each community college shall report the following to~~

~~the workforce development agency no later than November 1 of each~~

~~year:~~

~~(a) The number of North American Indian students enrolled each~~

~~term for the previous fiscal year, using guidelines and procedures~~

~~developed by the workforce development agency and the department of~~

~~civil rights.~~

~~(b) The number of North American Indian tuition waivers~~

~~granted each term, and the monetary value of the waivers for the~~

~~previous fiscal year.~~

(1) By February 15 of each year, the department of civil

rights shall annually submit to the state budget director, the

house and senate appropriations subcommittees on community

colleges, and the house and senate fiscal agencies a report on

North American Indian tuition waivers for the preceding fiscal year

that includes, but is not limited to, all of the following

information:

(a) The number of waiver applications received and the number

of waiver applications approved.

(b) For each community college submitting information under

subsection (2), all of the following:

(i) The number of North American Indian students enrolled each

term for the previous fiscal year.

(ii) The number of North American Indian waivers granted each

term and the monetary value of the waivers for the previous fiscal

year.

(iii) The number of students attending under a North American

Indian tuition waiver who withdrew from the college during the

previous fiscal year.

(iv) The number of students attending under a North American

Indian tuition waiver who successfully complete a degree or

certificate program, separated by degree or certificate level, and

the graduation rate for students attending under a North American

Indian tuition waiver who complete a degree within 150% of the

normal time to complete, separated by the level of the degree.

(2) A community college that receives funds under section 201

shall provide to the department of civil rights any information

necessary for preparing the report described in subsection (1),

using guidelines and procedures developed by the department of

civil rights.

(3) The department of civil rights may consolidate the report

required under this section with the report required under section

268, but a consolidated report must separately identify data for

universities and data for community colleges.

Sec. 224. A community college shall use the P-20 longitudinal

data system to inform interested Michigan high schools and the

public of the aggregate academic status of its students for the

previous academic year, in a manner prescribed by the Michigan

~~community college association~~ Community College Association and in

cooperation with the Michigan ~~association of secondary school~~

~~principals.~~ Association of Secondary School Principals. Community

colleges shall cooperate with the center ~~for educational~~

~~performance and information~~ to maintain a systematic approach for

accomplishing this work.

Sec. 225. Each community college shall report to the house and

senate fiscal agencies, the state budget director, and the

~~workforce development agency~~ center by August 31, ~~2015,~~ 2016, the

tuition and mandatory fees paid by a full-time in-district student

and a full-time out-of-district student as established by the

college governing board for the ~~2015-2016~~ 2016-2017 academic year.

This report should also include the annual cost of attendance based

on a full-time course load of 30 credits. Each community college

shall also report any revisions to the reported ~~2015-2016~~ 2016-2017

academic year tuition and mandatory fees adopted by the college

governing board to the house and senate fiscal agencies, the state

budget director, and the ~~workforce development agency~~ center within

15 days of being adopted.

Sec. 226. Each community college shall report to the ~~workforce~~

~~development agency~~ center the numbers and type of associate degrees

and other certificates awarded during the previous fiscal year. The

report shall be made not later than November 15 of each year.

Community colleges shall work with the ~~workforce development agency~~

~~and the~~ center ~~for educational performance and information~~ to

develop a systematic approach for meeting this requirement.

Sec. 229a. Included in the fiscal year ~~2015-2016~~ 2016-2017

appropriations for the department of technology, management, and

budget are appropriations totaling ~~$29,479,600.00~~ $30,879,600.00 to

provide funding for the state share of costs for previously

constructed capital projects for community colleges. Those

appropriations for state building authority rent represent

additional state general fund support for community colleges, and

the following is an estimate of the amount of that support to each

community college:

(a) Alpena Community College, ~~$652,700.00.~~$632,500.00.

(b) Bay de Noc Community College, ~~$685,900.00.~~$685,100.00.

(d) Glen Oaks Community College, ~~$123,100.00.~~$124,500.00.

(e) Gogebic Community College, ~~$67,600.00.~~$56,700.00.

(f) Grand Rapids Community College,

~~$2,126,000.00.~~$2,083,500.00.

(g) Henry Ford College, ~~$1,028,500.00.~~$1,040,300.00.

(h) Jackson College, ~~$1,677,800.00.~~$2,273,800.00.

(i) Kalamazoo Valley Community College,

~~$1,557,700.00.~~$2,030,900.00.

(j) Kellogg Community College, ~~$520,200.00.~~$526,200.00.

(k) Kirtland Community College, ~~$363,200.00.~~$367,300.00.

(l) Lake Michigan College, ~~$340,200.00.~~$344,100.00.

(m) Lansing Community College, ~~$1,282,200.00.~~$1,154,600.00.

(n) Macomb Community College, ~~$1,377,400.00.~~$1,715,700.00.

(o) Mid Michigan Community College,

~~$1,712,600.00.~~$1,634,300.00.

(p) Monroe County Community College,

~~$1,263,600.00.~~$1,278,100.00.

(q) Montcalm Community College, ~~$971,500.00.~~$982,600.00.

(r) C.S. Mott Community College, ~~$1,803,900.00.~~$1,497,600.00.

(s) Muskegon Community College, ~~$267,800.00.~~$623,500.00.

(t) North Central Michigan College, ~~$469,400.00.~~$417,900.00.

(u) Northwestern Michigan College,

~~$1,305,600.00.~~$1,320,600.00.

(v) Oakland Community College, ~~$465,200.00.~~$470,500.00.

~~(w) St. Clair County Community College, $356,200.00.~~

(w) ~~(x)~~ Schoolcraft College, ~~$1,546,700.00.~~$1,564,400.00.

(x) ~~(y)~~ Southwestern Michigan College,

~~$286,900.00.~~$574,800.00.

(y) St. Clair County Community College, $360,200.00.

(z) Washtenaw Community College, ~~$1,676,800.00.~~$1,696,000.00.

(aa) Wayne County Community College,

~~$1,462,700.00.~~$1,479,400.00.

(bb) West Shore Community College, ~~$577,300.00.~~$583,900.00.

Sec. 230. (1) Money included in the appropriations for

community college operations under section 201(2) in fiscal year

~~2015-2016~~ 2016-2017 for performance funding is distributed based on

the following formula:

(a) Allocated proportionate to fiscal year ~~2014-2015~~ 2015-2016

base appropriations, ~~50%.~~30%.

(b) Based on ~~contact hour equated students, 10%.~~a weighted

student contact hour formula as provided for in the 2016

recommendations of the performance indicators task force, 30%.

improvement as provided for in the 2016 recommendations of the

performance indicators task force, 10%.

(d) Based on ~~a weighted degree formula as provided for in the~~

~~2006 recommendations of the performance indicators task force,~~

~~17.5%.~~the performance completion number as provided for in the 2016

recommendations of the performance indicators task force, 10%.

(e) Based on ~~the local strategic value component, as developed~~

~~in cooperation with the Michigan Community College Association and~~

~~described in subsection (2), 15%.~~the performance completion rate as

provided for in the 2016 recommendations of the performance

indicators task force, 10%.

(f) Based on administrative costs, 5%.

(g) Based on the local strategic value component, as developed

in cooperation with the Michigan Community College Association and

described in subsection (2), 5%.

(2) Money included in the appropriations for community college

operations under section 201(2) for local strategic value shall be

allocated to each community college that certifies to the state

budget director, through a board of trustees resolution on or

before October 15, ~~2015,~~ 2016, that the college has met 4 out of 5

best practices listed in each category described in subsection (3).

The resolution shall provide specifics as to how the community

college meets each best practice measure within each category. One-

third of funding available under the strategic value component

shall be allocated to each category described in subsection (3).

Amounts distributed under local strategic value shall be on a

proportionate basis to each college's fiscal year ~~2014-2015~~ 2015-

2016 operations funding. Payments to community colleges that

qualify for local strategic value funding shall be distributed with

the November installment payment described in section 206.

(3) For purposes of subsection (2), the following categories

of best practices reflect functional activities of community

colleges that have strategic value to the local communities and

regional economies:

(a) For Category A, economic development and business or

industry partnerships, the following:

(i) The community college has active partnerships with local

employers including hospitals and health care providers.

(ii) The community college provides customized on-site

training for area companies, employees, or both.

(iii) The community college supports entrepreneurship through

a small business assistance center or other training or consulting

activities targeted toward small businesses.

(iv) The community college supports technological advancement

through industry partnerships, incubation activities, or operation

of a Michigan technical education center or other advanced

technology center.

(v) The community college has active partnerships with local

or regional workforce and economic development agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active partnerships with

regional high schools, intermediate school districts, and career-

tech centers to provide instruction through dual enrollment,

concurrent enrollment, direct credit, middle college, or academy

programs.

(ii) The community college hosts, sponsors, or participates in

enrichment programs for area K-12 students, such as college days,

summer or after-school programming, or ~~science~~ Science Olympiad.

(iii) The community college provides, supports, or

participates in programming to promote successful transitions to

college for traditional age students, including grant programs such

as talent search, upward bound, or other activities to promote

college readiness in area high schools and community centers.

(iv) The community college provides, supports, or participates

in programming to promote successful transitions to college for new

or reentering adult students, such as adult basic education,

~~general education development~~ high school equivalency certificate

preparation and testing, or recruiting, advising, or orientation

activities specific to adults.

(v) The community college has active partnerships with

regional 4-year colleges and universities to promote successful

transfer, such as articulation, 2+2, or reverse transfer agreements

or operation of a university center.

(i) The community college provides continuing education

programming for leisure, wellness, personal enrichment, or

professional development.

(ii) The community college operates or sponsors opportunities

for community members to engage in activities that promote leisure,

wellness, cultural or personal enrichment such as community sports

teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public facilities to

promote cultural, educational, or personal enrichment for community

members, such as libraries, computer labs, performing arts centers,

museums, art galleries, or television or radio stations.

(iv) The community college operates public facilities to

promote leisure or wellness activities for community members,

including gymnasiums, athletic fields, tennis courts, fitness

centers, hiking or biking trails, or natural areas.

(v) The community college promotes, sponsors, or hosts

community service activities for students, staff, or community

members.

(4) Payments for performance funding under section 201(2)

shall be made to a community college only if that community college

actively participates in the Michigan ~~transfer network~~ Transfer

Network sponsored by the Michigan Association of Collegiate

Registrars and Admissions Officers and submits timely updates,

including updated course equivalencies at least every 6 months, to

the Michigan transfer network. The state budget director shall

determine if a community college has not satisfied this

requirement. The state budget director may withhold payments for

performance funding until a community college is in compliance with

this section.

Sec. 236. (1) Subject to the conditions set forth in this

article, the amounts listed in this section are appropriated for

higher education for the fiscal year ending September 30, ~~2016,~~

2017, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

(a) The gross appropriation is ~~$1,534,724,400.00.~~

$1,586,283,300.00. After deducting total interdepartmental grants

and intradepartmental transfers in the amount of $0.00, the

adjusted gross appropriation is

~~$1,534,724,400.00.~~$1,586,283,300.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, ~~$97,026,400.00.~~$99,026,400.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$205,279,500.00.~~$237,209,600.00.

(v) State general fund/general purpose money,

~~$1,232,418,500.00.~~$1,250,047,300.00.

(2) Amounts appropriated for public universities are as

follows:

(a) The appropriation for Central Michigan University is

~~$80,904,400.00, $79,164,800.00 for operations and $1,739,600.00 for~~

~~performance funding.~~$84,085,100.00, $81,127,100.00 for operations

and $2,958,000.00 for performance funding.

(b) The appropriation for Eastern Michigan University is

~~$72,835,300.00, $71,782,500.00 for operations and $1,052,800.00 for~~

~~performance funding.~~$74,538,400.00, $71,782,500.00 for operations

and $2,755,900.00 for performance funding.

~~$50,227,800.00, $49,119,100.00 for operations and $1,108,700.00 for~~

~~performance funding.~~$52,389,400.00, $50,369,800.00 for operations

and $2,019,600.00 for performance funding.

(d) The appropriation for Grand Valley State University is

~~$65,035,200.00, $63,156,500.00 for operations and $1,878,700.00 for~~

~~performance funding.~~$68,346,200.00, $65,275,700.00 for operations

and $3,070,500.00 for performance funding.

(e) The appropriation for Lake Superior State University is

~~$13,183,600.00, $12,997,500.00 for operations and $186,100.00 for~~

~~performance funding.~~$13,598,800.00, $13,207,400.00 for operations

and $391,400.00 for performance funding.

(f) The appropriation for Michigan State University is

~~$328,782,000.00, $264,437,900.00 for operations, $3,841,000.00 for~~

~~performance funding, $32,508,300.00 for MSU AgBioResearch, and~~

~~$27,994,800.00 for MSU Extension.~~$339,286,300.00, $268,770,700.00

for operations, $8,599,900.00 for performance funding,

$33,243,100.00 for MSU AgBioResearch, and $28,672,600.00 for MSU

Extension.

(g) The appropriation for Michigan Technological University is

~~$46,662,000.00, $45,938,000.00 for operations and $724,000.00 for~~

~~performance funding.~~$48,246,000.00, $46,754,700.00 for operations

and $1,491,300.00 for performance funding.

(h) The appropriation for Northern Michigan University is

~~$45,020,400.00, $44,338,300.00 for operations and $682,100.00 for~~

~~performance funding.~~$46,574,100.00, $45,107,700.00 for operations

and $1,466,400.00 for performance funding.

(i) The appropriation for Oakland University is

~~$49,600,300.00, $48,371,900.00 for operations and $1,228,400.00 for~~

~~performance funding.~~$50,446,400.00, $48,371,900.00 for operations

and $2,074,500.00 for performance funding.

(j) The appropriation for Saginaw Valley State University is

~~$28,117,700.00, $27,621,600.00 for operations and $496,100.00 for~~

~~performance funding.~~$29,377,900.00, $28,181,200.00 for operations

and $1,196,700.00 for performance funding.

(k) The appropriation for University of Michigan � Ann Arbor

is ~~$299,430,600.00, $295,178,500.00 for operations and~~

~~$4,252,100.00 for performance funding.~~$309,400,900.00,

$299,975,000.00 for operations and $9,425,900.00 for performance

funding.

(l) The appropriation for University of Michigan � Dearborn is

~~$23,995,400.00, $23,701,000.00 for operations and $294,400.00 for~~

~~performance funding.~~$25,010,500.00, $24,033,100.00 for operations

and $977,400.00 for performance funding.

(m) The appropriation for University of Michigan � Flint is

~~$21,763,700.00, $21,359,600.00 for operations and $404,100.00 for~~

~~performance funding.~~$22,746,300.00, $21,815,400.00 for operations

and $930,900.00 for performance funding.

(n) The appropriation for Wayne State University is

~~$191,346,700.00, $190,529,900.00 for operations and $816,800.00 for~~

~~performance funding.~~$196,763,900.00, $191,451,300.00 for operations

and $5,312,600.00 for performance funding.

(o) The appropriation for Western Michigan University is

~~$104,155,600.00, $102,761,100.00 for operations and $1,394,500.00~~

~~for performance funding.~~$107,922,100.00, $104,334,100.00 for

operations and $3,588,000.00 for performance funding.

(3) The amount appropriated in subsection (2) for public

universities is appropriated from the following:

(a) State school aid fund, ~~$200,019,500.00.~~$231,219,500.00.

(b) State general fund/general purpose money,

~~$1,221,041,200.00.~~$1,237,512,800.00.

(4) The amount appropriated for Michigan public school

employees' retirement system reimbursement is ~~$5,160,000.00,~~

$5,890,000.00, appropriated from the state school aid fund.

(5) The amount appropriated for state and regional programs is

$315,000.00, appropriated from general fund/general purpose money

and allocated as follows:

(a) Higher education database modernization and conversion,

$200,000.00.

(b) Midwestern Higher Education Compact, $115,000.00.

(6) The amount appropriated for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated

from general fund/general purpose money and allocated as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program,

$586,800.00.

$148,600.00.

(7) Subject to subsection (8), the amount appropriated for

grants and financial aid is ~~$105,497,200.00,~~ $108,654,500.00,

allocated as follows:

(a) State competitive scholarships, $18,361,700.00.

(b) Tuition grants, ~~$34,035,500.00.~~$35,192,700.00.

(d) Children of veterans and officer's survivor tuition grant

programs, $1,400,000.00.

(e) Project GEAR-UP, $3,200,000.00.

(f) North American Indian tuition waivers, $100.00.

(8) The money appropriated in subsection (7) for grants and

financial aid is appropriated from the following:

(a) Federal revenues under the United States Department of

Education, Office of Elementary and Secondary Education, GEAR-UP

program, $3,200,000.00.

(b) Federal revenues under the social security act, temporary

assistance for needy families, ~~$93,826,400.00.~~$95,826,400.00.

program, $100,000.00.

(d) State school aid fund, $100.00.

(e) ~~(d)~~ State general fund/general purpose money,

~~$8,370,800.00.~~$9,528,000.00.

Sec. 236a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2017~~

2018 for the items listed in section 236. The fiscal year ~~2016-2017~~

2017-2018 appropriations are anticipated to be the same as those

for fiscal year ~~2015-2016,~~ 2016-2017, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January ~~2016~~ 2017

consensus revenue estimating conference.

Sec. 236b. In addition to the funds appropriated in section

236, there is appropriated for grants and financial aid in fiscal

year ~~2015-2016~~ 2016-2017 an amount not to exceed $6,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred under section 393(2)

of the management and budget act, 1984 PA 431, MCL 18.1393, for

another purpose under this article.

Sec. 236c. In addition to the funds appropriated for fiscal

year ~~2015-2016~~ 2016-2017 in section 236, appropriations to the

department of technology, management, and budget in the act

providing general appropriations for fiscal year ~~2015-2016~~ 2016-

2017 for state building authority rent, totaling an estimated

~~$135,995,300.00,~~ $144,995,300.00, provide funding for the state

share of costs for previously constructed capital projects for

state universities. These appropriations for state building

authority rent represent additional state general fund support

provided to public universities, and the following is an estimate

of the amount of that support to each university:

(a) Central Michigan University, ~~$9,551,800.00.~~$11,819,500.00.

(b) Eastern Michigan University, ~~$4,860,900.00.~~$4,868,000.00.

(d) Grand Valley State University,

~~$6,952,300.00.~~$6,635,900.00.

(e) Lake Superior State University,

~~$1,720,300.00.~~$1,722,800.00.

(f) Michigan State University, ~~$16,549,200.00.~~$18,827,000.00.

(g) Michigan Technological University,

~~$7,443,400.00.~~$6,793,200.00.

(h) Northern Michigan University, ~~$9,706,200.00.~~$9,447,600.00.

(i) Oakland University, ~~$12,993,400.00.~~$12,685,900.00.

(j) Saginaw Valley State University,

~~$9,865,800.00.~~$10,331,000.00.

(k) University of Michigan - Ann Arbor,

~~$9,607,800.00.~~$11,875,600.00.

(l) University of Michigan - Dearborn,

~~$6,745,200.00.~~$9,008,800.00.

(m) University of Michigan - Flint,

~~$3,104,000.00.~~$4,357,600.00.

(n) Wayne State University, ~~$15,703,000.00.~~$15,399,400.00.

(o) Western Michigan University,

~~$14,940,800.00.~~$14,962,700.00.

Sec. 237b. As used in this article, the term "workforce

development agency" means the workforce development agency ~~of the~~

~~Michigan strategic fund.~~within the department of talent and

economic development--talent investment agency.

Sec. 238. Unless otherwise specified, a public university

receiving appropriations in section 236 shall use the ~~internet~~

Internet to fulfill the reporting requirements of this article.

This requirement may include transmission of reports via electronic

mail to the recipients identified for each reporting requirement,

or it may include placement of reports on an ~~internet~~ Internet or

intranet site.

Sec. 241. (1) Subject to sections 244 and 265a, the funds

appropriated in section 236 to public universities shall be paid

out of the state treasury and distributed by the state treasurer to

the respective institutions in 11 equal monthly installments on the

sixteenth of each month, or the next succeeding business day,

beginning with October 16, ~~2015.~~ 2016. Except for Wayne State

University, each institution shall accrue its July and August ~~2016~~

2017 payments to its institutional fiscal year ending June 30,

~~2016.~~2017.

(2) All public universities shall submit higher education

institutional data inventory (HEIDI) data and associated financial

and program information requested by and in a manner prescribed by

the state budget director. For public universities with fiscal

years ending June 30, ~~2015,~~ 2016, these data shall be submitted to

the state budget director by October 15, ~~2015.~~ 2016. Public

universities with a fiscal year ending September 30, ~~2015~~ 2016

shall submit preliminary HEIDI data by November 15, ~~2015~~ 2016 and

final data by December 15, ~~2015.~~ 2016. If a public university fails

to submit HEIDI data and associated financial aid program

information in accordance with this reporting schedule, the state

treasurer may withhold the monthly installments under subsection

(1) to the public university until those data are submitted.

Sec. 246. (1) All of the following apply to the allocation of

the ~~fiscal year 2015-2016~~ appropriations described in section

236(4) for payments to universities that are participating entities

of the Michigan public school employees' retirement system:

(a) The funds appropriated in section 236(4) for Michigan

public school employees' retirement system reimbursement shall be

allocated to each participating public university under this

section based on each participating public university's percentage

of the total combined payrolls of the universities' employees who

are members of the retirement system and who were hired before

January 1, 1996 and the universities' employees who would have been

members of the retirement system on or after January 1, 1996, but

for the enactment of 1995 PA 272 for all public universities that

are participating public universities for the immediately preceding

state fiscal year.

(b) The amount of a payment under section 236(4) shall be

equal to the difference between the unfunded actuarial accrued

liability contribution rate for university reporting units as

calculated under section 41 of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341, as calculated

without taking into account the maximum employer rate of 25.73%

included in section 41 of the public school employees retirement

act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer

rate for university reporting units of 25.73% under section 41 of

the public school employees retirement act of 1979, 1980 PA 300,

MCL 38.1341. Payments shall be made in a form and manner determined

by the office of retirement services.

236(4) shall use that money solely for the purpose of retirement

contributions. Each participating university that receives funds

under section 236(4) shall forward an amount equal to the amount

received under section 236(4) to the Michigan public school

employees' retirement system in a form and manner determined by the

office of retirement services.

(2) As used in this section, "participating public university"

means a public university that is a reporting unit of the Michigan

public school employees' retirement system under the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

38.1437, and that pays contributions to the Michigan public school

employees' retirement system for the state fiscal year.

Sec. 251. (1) Payments of the amounts included in section 236

for the state competitive scholarship program shall be distributed

pursuant to 1964 PA 208, MCL 390.971 to 390.981.

(2) Pursuant to section 6 of 1964 PA 208, MCL 390.976, the

department of treasury shall determine an actual maximum state

competitive scholarship award per student, which shall be not less

than $575.00, that ensures that the aggregate payments for the

state competitive scholarship program do not exceed the

appropriation contained in section 236 for the state competitive

scholarship program. If the department determines that insufficient

funds are available to establish a maximum award amount equal to at

least $575.00, the department shall immediately report to the house

and senate appropriations subcommittees on higher education, the

house and senate fiscal agencies, and the state budget director

regarding the estimated amount of additional funds necessary to

establish a $575.00 maximum award amount.

(3) The department of treasury shall implement a proportional

competitive scholarship maximum award level for recipients enrolled

less than full-time in a given semester or term.

(4) If a student who receives an award under this section has

his or her tuition and fees paid under the Michigan educational

trust program, pursuant to the Michigan education trust act, 1986

PA 316, MCL 390.1421 to 390.1442, and still has financial need, the

funds awarded under this section may be used for educational

expenses other than tuition and fees.

(5) If the department of treasury increases the maximum award

per eligible student from that provided in the previous fiscal

year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards.

(6) Veterans ~~administration~~ Administration benefits shall not

be considered in determining eligibility for the award of

scholarships under 1964 PA 208, MCL 390.971 to 390.981.

Sec. 252. (1) The amounts appropriated in section 236 for the

state tuition grant program shall be distributed pursuant to 1966

PA 313, MCL 390.991 to 390.997a.

(2) Tuition grant awards shall be made to all eligible

Michigan residents enrolled in undergraduate degree programs who

are qualified and who apply before July 1 of each year for the next

academic year.

(3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

subject to subsections (7) and (8), the department of treasury

shall determine an actual maximum tuition grant award per student,

which shall be no less than $1,512.00, that ensures that the

aggregate payments for the tuition grant program do not exceed the

appropriation contained in section 236 for the state tuition grant

program. If the department determines that insufficient funds are

available to establish a maximum award amount equal to at least

$1,512.00, the department shall immediately report to the house and

senate appropriations subcommittees on higher education, the house

and senate fiscal agencies, and the state budget director regarding

the estimated amount of additional funds necessary to establish a

$1,512.00 maximum award amount. If the department determines that

sufficient funds are available to establish a maximum award amount

equal to at least $1,512.00, the department shall immediately

report to the house and senate appropriations subcommittees on

higher education, the house and senate fiscal agencies, and the

state budget director regarding the maximum award amount

established and the projected amount of any projected year-end

appropriation balance based on that maximum award amount. By

February 18 of each fiscal year, the department shall analyze the

status of award commitments, shall make any necessary adjustments,

and shall confirm that those award commitments will not exceed the

appropriation contained in section 236 for the tuition grant

program. The determination and actions shall be reported to the

state budget director and the house and senate fiscal agencies no

later than the final day of February of each year. If award

adjustments are necessary, the students shall be notified of the

adjustment by March 4 of each year.

(4) Any unexpended and unencumbered funds remaining on

September 30, ~~2016~~ 2017 from the amounts appropriated in section

236 for the tuition grant program for fiscal year ~~2015-2016~~ 2016-

2017 shall not lapse on September 30, ~~2016,~~ 2017, but shall

continue to be available for expenditure for tuition grants

provided in the ~~2016-2017~~ 2017-2018 fiscal year under a work

project account. The use of these unexpended fiscal year ~~2015-2016~~

2016-2017 funds shall terminate at the end of the ~~2016-2017~~ 2017-

2018 fiscal year.

(5) The department of treasury shall continue a proportional

tuition grant maximum award level for recipients enrolled less than

full-time in a given semester or term.

(6) If the department of treasury increases the maximum award

per eligible student from that provided in the previous fiscal

year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards for that

fiscal year.

(7) Except as provided in subsection (4), the department of

treasury shall not award more than ~~$3,200,000.00~~ $3,500,000.00 in

tuition grants to eligible students enrolled in the same

independent nonprofit college or university in this state. Any

decrease in the maximum grant shall be proportional for all

eligible students enrolled in that college or university, as

determined by the department.

(8) The department of treasury shall not award tuition grants

to otherwise eligible students enrolled in an independent college

or university that does not report, in a form and manner directed

by and satisfactory to the department of treasury, by September 30

of each year, all of the following:

(a) The number of students in the most recently completed

academic year who in any academic year received a state tuition

grant at the reporting institution and successfully completed a

program or graduated.

(b) The number of students in the most recently completed

academic year who in any academic year received a state tuition

grant at the reporting institution and took a remedial education

class.

academic year who in any academic year received a Pell grant at the

reporting institution and successfully completed a program or

graduated.

(9) By February 1, ~~2016,~~ 2017, each independent college and

university participating in the tuition grant program shall report

to the senate and house appropriations subcommittees on higher

education, the senate and house fiscal agencies, and the state

budget director on its efforts to develop and implement sexual

assault response training for the institution's title IX

coordinator, campus law enforcement personnel, campus public safety

personnel, and any other campus personnel charged with responding

to on-campus incidents, including information on sexual assault

response training materials and the status of implementing sexual

assault response training for institutional personnel.

Sec. 254. The sums appropriated in section 236 for the state

competitive scholarship, tuition incentive, and tuition grant

programs shall be paid out of the state treasury and shall be

distributed to the respective institutions under a quarterly

payment system as follows:

(a) For the state competitive scholarship and tuition grant

programs, 50% shall be paid at the beginning of the state's first

fiscal quarter, 30% during the state's second fiscal quarter, 10%

during the state's third fiscal quarter, and 10% during the state's

fourth fiscal quarter.

(b) For the tuition incentive program, 55% shall be paid at

the beginning of the state's first fiscal quarter, 40% during the

state's second fiscal quarter, and 5% during the state's third

fiscal quarter.

Sec. 256. (1) The funds appropriated in section 236 for the

tuition incentive program shall be distributed as provided in this

section and pursuant to the administrative procedures for the

tuition incentive program of the department of treasury.

(2) As used in this section:

(a) "Phase I" means the first part of the tuition incentive

assistance program defined as the academic period of 80 semester or

120 term credits, or less, leading to an associate degree or

certificate.

(b) "Phase II" means the second part of the tuition incentive

assistance program which provides assistance in the third and

fourth year of 4-year degree programs.

(3) An individual shall meet the following basic criteria and

financial thresholds to be eligible for tuition incentive program

benefits:

(a) To be eligible for phase I, an individual shall meet all

of the following criteria:

(i) Apply for certification to the department any time after

he or she begins the sixth grade but before August 31 of the school

year in which he or she graduates from high school or before

completing a ~~general education development~~ high school equivalency

certificate.

(ii) Be less than 20 years of age at the time he or she

graduates from high school with a diploma or certificate of

completion or completes a ~~general education development~~ high school

equivalency certificate.

(iii) Be a United States citizen and a resident of Michigan

according to institutional criteria.

(iv) Be at least a half-time student, earning less than 80

semester or 120 term credits at a participating educational

institution within 4 years of high school graduation or completion

of a ~~general education development~~ high school equivalency

certificate.

(v) Request information on filing a FAFSA.

(vi) ~~Must meet~~ Meet the satisfactory academic progress policy

of the educational institution he or she attends.

(b) To be eligible for phase II, an individual shall meet

either of the following criteria in addition to the criteria in

subdivision (a):

(i) Complete at least 56 transferable semester or 84

transferable term credits.

(ii) Obtain an associate degree or certificate at a

participating institution.

not be incarcerated and must be financially eligible as determined

by the department. An individual is financially eligible for the

tuition incentive program if he or she was eligible for Medicaid

from the state of Michigan for 24 months within the 36 consecutive

months before application. The department shall accept

certification of Medicaid eligibility only from the department of

health and human services for the purposes of verifying if a person

is Medicaid eligible for 24 months within the 36 consecutive months

before application. Certification of eligibility may begin in the

sixth grade. As used in this subdivision, "incarcerated" does not

include detention of a juvenile in a state-operated or privately

operated juvenile detention facility.

(4) For phase I, the department shall provide payment on

behalf of a person eligible under subsection (3). The department

shall reject billings that are excessive or outside the guidelines

for the type of educational institution.

(5) For phase I, all of the following apply:

(a) Payments for associate degree or certificate programs

shall not be made for more than 80 semester or 120 term credits for

any individual student at any participating institution.

(b) For persons enrolled at a Michigan community college, the

department shall pay the current in-district tuition and mandatory

fees. For persons residing in an area that is not included in any

community college district, the out-of-district tuition rate may be

authorized.

department shall pay lower division resident tuition and mandatory

fees for the current year.

(d) For persons enrolled at a Michigan independent, nonprofit

degree-granting college or university, or a Michigan federal

tribally controlled community college, or Focus: HOPE, the

department shall pay mandatory fees for the current year and a per-

credit payment that does not exceed the average community college

in-district per-credit tuition rate as reported on August 1, for

the immediately preceding academic year.

(6) A person participating in phase II may be eligible for

additional funds not to exceed $500.00 per semester or $400.00 per

term up to a maximum of $2,000.00 subject to the following

conditions:

(a) Credits are earned in a 4-year program at a Michigan

degree-granting 4-year college or university.

(b) The tuition reimbursement is for coursework completed

within 30 months of completion of the phase I requirements.

(7) The department shall work closely with participating

institutions to develop an application and eligibility

determination process that will provide the highest level of

participation and ensure that all requirements of the program are

met.

(8) Applications for the tuition incentive program may be

approved at any time after the student begins the sixth grade. If a

determination of financial eligibility is made, that determination

is valid as long as the student meets all other program

requirements and conditions.

(9) Each institution shall ensure that all known available

restricted grants for tuition and fees are used prior to billing

the tuition incentive program for any portion of a student's

tuition and fees.

(10) The department shall ensure that the tuition incentive

program is well publicized and that eligible Medicaid clients are

provided information on the program. The department shall provide

the necessary funding and staff to fully operate the program.

Sec. 263. (1) Included in the appropriation in section 236 for

fiscal year ~~2015-2016~~ 2016-2017 for MSU AgBioResearch is

$2,982,900.00 and included in the appropriation in section 236 for

MSU Extension is $2,645,200.00 for Project GREEEN. Project GREEEN

is intended to address critical regulatory, food safety, economic,

and environmental problems faced by this state's plant-based

agriculture, forestry, and processing industries. "GREEEN" is an

acronym for "Generating Research and Extension to Meet

Environmental and Economic Needs".

(2) The department of agriculture and rural development and

Michigan State University, in consultation with agricultural

commodity groups and other interested parties, shall develop

Project GREEEN and its program priorities.

Sec. 263a. (1) Not later than September 30 of each year,

Michigan State University shall submit a report on MSU

AgBioResearch and MSU Extension to the house and senate

appropriations subcommittees on agriculture and on higher

education, the house and senate standing committees on agriculture,

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

for the preceding academic fiscal year.

(2) The report required under subsection (1) shall include all

of the following:

(a) Total funds expended by MSU AgBioResearch and by MSU

Extension identified by state, local, private, federal, and

university fund sources.

(b) The metric goals that were used to evaluate the impacts of

programs operated by MSU Extension and MSU AgBioResearch. ~~It is the~~

~~intent of the legislature that the~~ The following metric goals will

be used to evaluate the impacts of those programs:

(i) Increasing the number of agriculture and food-related

firms collaborating with and using services of research and

extension faculty and staff by 3% per year.

(ii) Increasing the number of individuals utilizing MSU

Extension's educational services by 5% per year.

(iii) Increasing external funds generated in support of

research and extension, beyond state appropriations, by 10% over

the amounts generated in the past 3 state fiscal years.

(iv) Increasing the sector's total economic impact to at least

$100,000,000,000.00.

(v) Increasing Michigan's agricultural exports to at least

$3,500,000,000.00.

(vi) Increasing jobs in the food and agriculture sector by

10%.

(vii) Improving access by Michigan consumers to healthy foods

by 20%.

and MSU Extension with specific reference to accomplishments,

impacts, and the metrics described in subdivision (b), including a

specific accounting of Project GREEEN expenditures and the impact

of those expenditures.

Sec. 264. Included in the appropriation in section 236 for

fiscal year ~~2015-2016~~ 2016-2017 for Michigan State University is

$80,000.00 for the Michigan Future Farmers of America Association.

This $80,000.00 allocation shall not supplant any existing support

that Michigan State University provides to the Michigan Future

Farmers of America Association.

Sec. 265. (1) Payments under section 265a for performance

funding shall only be made to a public university that certifies to

the state budget director by August 31, ~~2015~~ 2016 that its board

did not adopt an increase in tuition and fee rates for resident

undergraduate students after September 1, ~~2014~~ 2015 for the ~~2014-~~

~~2015~~ 2015-2016 academic year and that its board will not adopt an

increase in tuition and fee rates for resident undergraduate

students for the ~~2015-2016~~ 2016-2017 academic year that is greater

than ~~3.2%.~~ 4.8% or $500.00, whichever is greater. As used in this

subsection:

(a) "Fee" means any board-authorized fee that will be paid by

more than 1/2 of all resident undergraduate students at least once

during their enrollment at a public university, as described in the

higher education institutional data inventory (HEIDI) user manual.

A university increasing a fee that applies to a specific subset of

students or courses shall provide sufficient information to prove

that the increase applied to that subset will not cause the

increase in the average amount of board-authorized total tuition

and fees paid by resident undergraduate students in the ~~2015-2016~~

2016-2017 academic year to exceed the limit established in this

subsection.

(b) "Tuition and fee rate" means the average of full-time

rates ~~for all~~ paid by a majority of students in each undergraduate

~~classes,~~ class, based on an unweighted average of the rates

authorized by the university board and actually charged to

students, deducting any uniformly rebated or refunded amounts, for

the 2 semesters with the highest levels of full-time equated

resident undergraduate enrollment during the academic year, as

described in the HEIDI user manual.

that compels resident undergraduate students to be covered by

health insurance as a condition to enroll at the university, "fee"

includes the annual amount a student is charged for coverage by the

university-affiliated group health insurance policy if he or she

does not provide proof that he or she is otherwise covered by

health insurance. This subdivision does not apply to limited

subsets of resident undergraduate students to be covered by health

insurance for specific reasons other than general enrollment at the

university.

(2) The state budget director shall implement uniform

reporting requirements to ensure that a public university receiving

a payment under section 265a for performance funding has satisfied

the tuition restraint requirements of this section. The state

budget director shall have the sole authority to determine if a

public university has met the requirements of this section.

Information reported by a public university to the state budget

director under this subsection shall also be reported to the house

and senate appropriations subcommittees on higher education and the

house and senate fiscal agencies.

Sec. 265a. (1) Appropriations to public universities in

section 236 for fiscal year ~~2015-2016~~ 2016-2017 for performance

funding shall be paid only to a public university that complies

with section 265 and certifies to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies by August 31, ~~2015~~ 2016

that it complies with all of the following requirements:

(a) The university participates in reverse transfer agreements

described in section 286 with at least 3 Michigan community

colleges. ~~or has made a good-faith effort to enter into reverse~~

~~transfer agreements.~~

(b) The university does not and will not consider whether dual

enrollment credits earned by an incoming student were utilized

towards his or her high school graduation requirements when making

a determination as to whether those credits may be used by the

student toward completion of a university degree or certificate

program.

updates to the Michigan Transfer Network created as part of the

Michigan Association of Collegiate Registrars and Admissions

Officers transfer agreement.

(2) Any performance funding amounts under section 236 that are

not paid to a public university because it did not comply with 1 or

more requirements under subsection (1) are unappropriated and

reappropriated for performance funding to those public universities

that meet the requirements under subsection (1), distributed in

proportion to their performance funding appropriation amounts under

section 236.

(3) The state budget director shall report to the house and

senate appropriations subcommittees on higher education and the

house and senate fiscal agencies by September 30, ~~2015,~~ 2016,

regarding any performance funding amounts that are not paid to a

public university because it did not comply with 1 or more

requirements under subsection (1) and any reappropriation of funds

under subsection (2).

(4) Performance funding amounts described in section 236 are

distributed based on the following formula:

(a) Proportional to each university's share of total

operations funding appropriated in fiscal year 2010-2011, 50.0%.

(b) ~~(a)~~ Based on weighted undergraduate completions in

critical skills areas, ~~22.2%.~~11.1%.

universities classified in Carnegie classifications as

doctoral/research universities, research universities (high

research activity), or research universities (very high research

activity) only, ~~11.1%.~~5.6%.

(d) ~~(c)~~ Based on 6-year graduation rate, total degree

completions, ~~and~~ institutional support as a percentage of core

expenditures, ~~and~~ the percentage of students receiving Pell grants,

and whether the university received a Carnegie community engagement

classification in 2010 or 2015, scored against national Carnegie

classification peers and weighted by total undergraduate fiscal

year equated students, ~~66.7%.~~33.3%.

(5) ~~For~~ Except as provided in subsection (6), for purposes of

determining the score of a university under subsection ~~(4)(c),~~

(4)(d), each university is assigned 1 of the following scores:

(a) A university classified as in the top 20%, a score of 3.

(b) A university classified as above national median, a score

of 2.

~~the intent of the legislature that, beginning in the 2016-2017~~

~~state fiscal year, a university classified as improving is assigned~~

~~a score of 1.~~

(d) A university that is not included in subdivision (a), (b),

or (c), a score of 0.

(6) A university that received a Carnegie community engagement

classification in 2010 or 2015 is assigned a score of 3.

(7) ~~(6) For purposes of~~ As used in this section: ,

(a) "Carnegie classification" ~~shall mean~~ means the basic

classification of the university according to the most recent

version, before February 1, 2016, of the Carnegie classification of

institutions of higher education, published by the Carnegie

Foundation for the Advancement of Teaching.

(b) "Carnegie community engagement classification" means the

community engagement classification published by the Carnegie

Foundation for the Advancement of Teaching.

Sec. 267. All public universities shall submit the amount of

tuition and fees actually charged to a full-time resident

undergraduate student for academic year ~~2015-2016~~ 2016-2017 as part

of their higher education institutional data inventory (HEIDI) data

by August 31 of each year. A public university shall report any

revisions for any semester of the reported academic year ~~2015-2016~~

2016-2017 tuition and fee charges to HEIDI within 15 days of being

adopted.

Sec. 268. (1) For the fiscal year ending September 30, ~~2016,~~

2017, it is the intent of the legislature that funds be allocated

for unfunded North American Indian tuition waiver costs incurred by

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

from the general fund.

(2) Appropriations in section 236(7)(f) for North American

Indian tuition waivers shall be paid to universities under section

2a of 1976 PA 174, MCL 390.1252a. Allocations shall be adjusted for

amounts in university operations appropriations. If funds are

insufficient to support the entire cost of waivers, amounts shall

be prorated.

(3) ~~(2)~~ By February 15 of each year, the department of civil

rights shall annually submit to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies a report on North American

Indian tuition waivers for the preceding fiscal year that includes,

but is not limited to, all of the following information: ~~for each~~

~~postsecondary institution:~~

(a) The ~~total~~ number of waiver applications received and the

number of waiver applications approved.

(b) For each university submitting information under

subsection (4), all of the following:

(i) The number of graduate and undergraduate North American

Indian students enrolled each term for the previous fiscal year.

(ii) ~~(b)~~ The ~~total~~ number of North American Indian waivers

granted each term and the monetary value of ~~each waiver.~~the waivers

for the previous fiscal year.

(iii) ~~(c)~~ The number of graduate and undergraduate students

attending under a North American Indian tuition waiver who ~~withdraw~~

withdrew from ~~classes.~~the college or university during the previous

fiscal year.

(iv) ~~(d)~~ The number of graduate and undergraduate students

attending under a North American Indian tuition waiver who

successfully complete a degree or certificate program, separated by

degree or certificate level, and the ~~6-year~~ graduation rate for

graduate and undergraduate students attending under a North

American Indian tuition waiver who complete a degree within 150% of

the normal time to complete, separated by the level of the degree.

(4) ~~(3)~~ A public university that receives funds under section

236 shall provide to the department of civil rights any information

necessary for preparing the report detailed in subsection ~~(2).~~(3),

using guidelines and procedures developed by the department of

civil rights.

(5) The department of civil rights may consolidate the report

required under this section with the report required under section

223, but a consolidated report must separately identify data for

universities and data for community colleges.

Sec. 269. For fiscal year ~~2015-2016,~~ 2016-2017, from the

amount appropriated in section 236 to Central Michigan University

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 270. For fiscal year ~~2015-2016,~~ 2016-2017, from the

amount appropriated in section 236 to Lake Superior State

University for operations, $100,000.00 shall be paid to Bay Mills

Community College for the costs of waiving tuition for North

American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 274. It is the intent of the legislature that public and

private organizations that conduct human embryonic stem cell

derivation subject to section 27 of article I of the state

constitution of 1963 will provide information to the director of

the department of health and human services by December 1, ~~2015~~

2016 that includes all of the following:

(a) Documentation that the organization conducting human

embryonic stem cell derivation is conducting its activities in

compliance with the requirements of section 27 of article I of the

state constitution of 1963 and all relevant National Institutes of

Health guidelines pertaining to embryonic stem cell derivation.

(b) A list of all human embryonic stem cell lines submitted by

the organization to the National Institutes of Health for inclusion

in the Human Embryonic Stem Cell Registry before and during fiscal

year ~~2014-2015,~~ 2015-2016, and the status of each submission as

approved, pending approval, or review completed but not yet

accepted.

submitted for inclusion in the Human Embryonic Stem Cell Registry,

before and during fiscal year ~~2014-2015.~~2015-2016.

Sec. 274c. By February 1, ~~2016,~~ 2017, each university

receiving funds under section 236 shall report to the senate and

house appropriations subcommittees on higher education, the senate

and house fiscal agencies, and the state budget director on its

efforts to develop and implement sexual assault response training

for the university's title IX coordinator, campus law enforcement

personnel, campus public safety personnel, and any other campus

personnel charged with responding to on-campus incidents, including

information on sexual assault response training materials and the

status of implementing sexual assault response training for campus

personnel.

Sec. 275. (1) It is the intent of the legislature that each

public university that receives an appropriation in section 236 do

all of the following:

(a) Meet the provisions of section 5003 of the post-911

veterans educational assistance act of 2008, 38 USC 3301 to ~~3324,~~

3325, including voluntary participation in the ~~yellow ribbon GI~~

~~education enhancement program~~ Yellow Ribbon GI Education

Enhancement Program established in that act in 38 USC 3317. By

October 1 of each year, each public university shall report to the

house and senate appropriations subcommittees on higher education,

the house and senate fiscal agencies, and the ~~presidents council,~~

~~state universities of Michigan~~ Michigan Association of State

Universities on whether or not it has chosen to participate in the

~~yellow ribbon GI education enhancement program.~~ Yellow Ribbon GI

Education Enhancement Program. If at any time during the fiscal

year a university participating in the ~~yellow ribbon program~~ Yellow

Ribbon Program chooses to leave the ~~yellow ribbon program,~~ Yellow

Ribbon Program, it shall notify the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the ~~presidents council, state universities of~~

~~Michigan.~~Michigan Association of State Universities.

(b) Establish an on-campus veterans' liaison to provide

information and assistance to all student veterans.

veterans.

(d) Include in its admission application process a specific

question as to whether an applicant for admission is a veteran, an

active member of the military, a member of the national guard or

military reserves, or the spouse or dependent of a veteran, active

member of the military, or member of the national guard or military

reserves, in order to more quickly identify potential educational

assistance available to that applicant.

(e) Consider all veterans residents of this state for

determining their tuition rates and fees.

(f) Waive enrollment fees for all veterans.

(2) By October 1 of each year, each public university shall

report to the house and senate appropriations subcommittees on

higher education, the house and senate fiscal agencies, and the

department of military and veterans affairs regarding services

provided specifically to veterans and active military duty

personnel, including, but not limited to, the services described in

subsection (1).

(3) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, 38 USC 3301 to ~~3324.~~3325.

Sec. 276. (1) Included in the appropriation for fiscal year

~~2015-2016~~ 2016-2017 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

future faculty program that is intended to increase the pool of

academically or economically disadvantaged candidates pursuing

faculty teaching careers in postsecondary education. Preference may

not be given to applicants on the basis of race, color, ethnicity,

gender, or national origin. Institutions should encourage

applications from applicants who would otherwise not adequately be

represented in the graduate student and faculty populations. Each

public university shall apply the percentage change applicable to

every public university in the calculation of appropriations in

section 236 to the amount of funds allocated to the future faculty

program.

(2) The program shall be administered by each public

university in a manner prescribed by the workforce development

agency. The workforce development agency shall use a good faith

effort standard to evaluate whether a fellowship is in default.

Sec. 277. (1) Included in the appropriation for fiscal year

~~2015-2016~~ 2016-2017 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

college day program that is intended to introduce academically or

economically disadvantaged schoolchildren to the potential of a

college education. Preference may not be given to participants on

the basis of race, color, ethnicity, gender, or national origin.

Public universities should encourage participation from those who

would otherwise not adequately be represented in the student

population.

(2) Individual program plans of each public university shall

include a budget of equal contributions from this program, the

participating public university, the participating school district,

and the participating independent degree-granting college. College

day funds shall not be expended to cover indirect costs. Not more

than 20% of the university match shall be attributable to indirect

costs. Each public university shall apply the percentage change

applicable to every public university in the calculation of

appropriations in section 236 to the amount of funds allocated to

the college day program.

(3) The program described in this section shall be

administered by each public university in a manner prescribed by

the workforce development agency.

Sec. 278. (1) Included in section 236 for fiscal year ~~2015-~~

~~2016~~ 2016-2017 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks select student support services program for

developing academically or economically disadvantaged student

retention programs for 4-year public and independent educational

institutions in this state. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

student population.

(2) An award made under this program to any 1 institution

shall not be greater than $150,000.00, and the amount awarded shall

be matched on a 70% state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 279. (1) Included in section 236 for fiscal year ~~2015-~~

~~2016~~ 2016-2017 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks college/university partnership program between

4-year public and independent colleges and universities and public

community colleges, which is intended to increase the number of

academically or economically disadvantaged students who transfer

from community colleges into baccalaureate programs. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Institutions should

encourage participation from those who would otherwise not

adequately be represented in the transfer student population.

(2) The grants shall be made under the program described in

this section to Michigan public and independent colleges and

universities. An award to any 1 institution shall not be greater

than $150,000.00, and the amount awarded shall be matched on a 70%

state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 280. (1) Included in the appropriation for fiscal year

~~2015-2016~~ 2016-2017 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

visiting professors program which is intended to increase the

number of instructors in the classroom to provide role models for

academically or economically disadvantaged students. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Public universities should

encourage participation from those who would otherwise not

adequately be represented in the student population.

(2) The program described in this section shall be

administered by the workforce development agency.

Sec. 281. (1) Included in the appropriation for fiscal year

~~2015-2016~~ 2016-2017 in section 236 is funding under the Martin

Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the

Morris Hood, Jr. educator development program which is intended to

increase the number of academically or economically disadvantaged

students who enroll in and complete K-12 teacher education programs

at the baccalaureate level. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

teacher education student population.

(2) The program described in this section shall be

administered by each state-approved teacher education institution

in a manner prescribed by the workforce development agency.

(3) Approved teacher education institutions may and are

encouraged to use student support services funding in coordination

with the Morris Hood, Jr. funding to achieve the goals of the

program described in this section.

Sec. 282. Each institution receiving funds for fiscal year

~~2015-2016~~ 2016-2017 under section 278, 279, or 281 shall notify the

workforce development agency by April 15, ~~2016~~ 2017 as to whether

it will expend by the end of its fiscal year the funds received

under section 278, 279, or 281. Notwithstanding the award

limitations in sections 278 and 279, the amount of funding reported

as not being expended will be reallocated to the institutions that

intend to expend all funding received under section 278, 279, or

281.

Sec. 283. (1) From the amount appropriated in section 236, the

public universities shall systematically inform Michigan high

schools regarding the academic status of students from each high

school in a manner prescribed by the ~~Presidents Council, State~~

~~Universities of Michigan~~ Michigan Association of State Universities

in cooperation with the Michigan Association of Secondary School

Principals. Public universities shall also work with the center for

educational performance and information to maintain a systematic

approach for accomplishing this task.

(2) Michigan high schools shall systematically inform the

public universities about the use of information received under

this section in a manner prescribed by the Michigan Association of

Secondary School Principals in cooperation with the ~~Presidents~~

~~Council, State Universities of Michigan.~~Michigan Association of

State Universities.

Sec. 284. From the amount appropriated in section 236, the

public universities shall inform Michigan community colleges

regarding the academic status of community college transfer

students in a manner prescribed by the ~~Presidents Council, State~~

~~Universities of Michigan~~ Michigan Association of State Universities

in cooperation with the Michigan Community College Association.

Public universities shall also work with the center for educational

performance and information to maintain a systematic approach for

accomplishing this task.

Sec. 289. (1) The auditor general shall periodically audit

higher education institutional data inventory (HEIDI) data

submitted by all public universities under section 241 and may

perform audits of selected public universities if determined

necessary. The audits shall be based upon the definitions,

requirements, and uniform reporting categories established by the

state budget director in consultation with the HEIDI advisory

committee. The auditor general shall submit a report of findings to

the house and senate appropriations committees and the state budget

director no later than July 1 of each year an audit takes place.

(2) Student credit hours reports shall not include the

following:

(a) Student credit hours generated through instructional

activity by faculty or staff in classrooms located outside

Michigan, with the exception of instructional activity related to

study-abroad programs or field programs.

(b) Student credit hours generated through distance learning

instruction for students not eligible for the public university's

in-state main campus resident tuition rate. However, in instances

where a student is enrolled in distance education and non-distance

education credit hours in a given term and the student's non-

distance education enrollment is at a campus or site located within

Michigan, student credit hours per the student's eligibility for

in-state or out-of-state tuition rates may be reported.

examination.

(d) Student credit hours generated through inmate prison

programs regardless of teaching location.

(e) Student credit hours generated in new degree programs

created on or after January 1, 1975 and before January 1, 2013,

that were not specifically authorized for funding by the

legislature, except spin-off programs converted from existing core

programs, and student credit hours generated in any new degree

programs created after January 1, 2013, that are specifically

excluded from reporting by the legislature under this section.

(3) "Distance learning instruction" as used in subsection (2)

means instruction that occurs solely in other than a traditional

classroom setting where the student and instructor are in the same

physical location and for which a student receives course credits

and is charged tuition and fees. Examples of distance learning

instruction are instruction delivered solely through the ~~internet,~~

Internet, cable television, teleconference, or mail.

Sec. 290. By March 1 of each year, the ~~presidents council,~~

~~state universities of Michigan~~ Michigan Association of State

Universities shall provide a listing of new degree programs for

which enrollment information will be reported to HEIDI under

sections 241 and 289, as well as a listing of degree programs that

institutions of higher education will no longer offer in subsequent

academic years, to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director.

Enacting section 1. (1) In accordance with section 30 of

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

from state sources on state school aid under article I of the state

school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as

amended by 2015 PA 85, 2015 PA 139, and this amendatory act for

fiscal year 2015-2016 is estimated at $12,060,439,300.00 and state

appropriations for school aid to be paid to local units of

government for fiscal year 2015-2016 are estimated at

$11,929,809,800.00. In accordance with section 30 of article IX of

the state constitution of 1963, total state spending on school aid

under article I of the state school aid act of 1979, 1979 PA 94,

MCL 388.1601 to 388.1772, as amended by this amendatory act, from

state sources for fiscal year 2016-2017 is estimated at

$12,369,050,200.00 and state appropriations for school aid to be

paid to local units of government for fiscal year 2016-2017 are

estimated at $12,210,009,400.00.

(2) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

community colleges for fiscal year 2016-2017 under article II of

the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to

388.1830a, as amended by this amendatory act, is estimated at

$402,116,300.00 and the amount of that state spending from state

sources to be paid to local units of government for fiscal year

2016-2017 is estimated at $402,116,300.00.

(3) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

higher education for fiscal year 2016-2017 under article III of the

state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1893,

as amended by this amendatory act, is estimated at

$1,487,256,900.00 and the amount of that state spending from state

sources to be paid to local units of government for fiscal year

2016-2017 is estimated at $0.00.

Enacting section 2. Sections 22i, 25e, 31h, 43, 99c, 104b,

104c, 104d, 230a, and 293 of the state school aid act of 1979, 1979

PA 94, MCL 388.1622i, 388.1625e, 388.1631h, 388.1643, 388.1699c,

388.1704b, 388.1704c, 388.1704d, 388.1830a, and 388.1893, are

repealed effective October 1, 2016.

Enacting section 3. (1) Except as otherwise provided in

subsection (2), this amendatory act takes effect October 1, 2016.

(2) Sections 11, 11j, 22a, 22b, 24a, 26a, 26c, 31f, 51a, 51c,

and 61a of the state school aid act of 1979, 1979 PA 94, MCL

388.1611, 388.1611j, 388.1622a, 388.1622b, 388.1624a, 388.1626a,

388.1626c, 388.1631f, 388.1651a, 388.1651c, and 388.1661a, as

amended by this amendatory act, and section 11s of the state school

aid act of 1979, 1979 PA 94, MCL 388.1611s, as added by this

amendatory act, take effect upon enactment of this amendatory act.

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Bill Text: MI HB5291 | 2015-2016 | 98th Legislature | Engrossed

Michigan House Bill 5291 (Prior Session Legislation)

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