Bill Text: MI HB5292 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Education; public school academies; additional requirements for oversight of public school academies by authorizing bodies; provide for. Amends secs. 507, 528 & 561 of 1976 PA 451 (MCL 380.507 et seq.).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-12-05 - Bill Electronically Reproduced 11/30/2017 [HB5292 Detail]
Download: Michigan-2017-HB5292-Introduced.html
HOUSE BILL No. 5292
November 30, 2017, Introduced by Reps. Sneller, Wittenberg, Faris, Cochran, Greig, Ellison, Gay-Dagnogo, Lasinski, Sowerby, Chang, Geiss, Guerra, Camilleri, Pagan, Moss, Elder and Yancey and referred to the Committee on Education Reform.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 507, 528, and 561 (MCL 380.507, 380.528, and
380.561), as amended by 2016 PA 192.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 507. (1) An authorizing body that issues a contract for a
public school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each public school
academy that it authorizes. The authorizing body shall ensure that
the board of directors includes representation from the local
community.
(d) Oversee each public school academy operating under a
contract issued by the authorizing body. The oversight shall be
sufficient to ensure that the board of directors is in compliance
with the terms of the contract and with applicable law.
(e) Develop and implement a process for holding a public
school academy accountable for meeting applicable academic
performance standards set forth in the contract and for
implementing corrective action for a public school academy that
does not meet those standards.
(f) Take necessary measures to ensure that the board of
directors of a public school academy operates independently of any
educational management company involved in the operations of the
public school academy.
(g) Oversee and ensure that the pupil admission process used
by the public school academy is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the public school
academy maintains and releases information as necessary to comply
with applicable law.
(i) Ensure that a representative of the authorizing body
attends each meeting of the board of directors of the public school
academy under section 1201.
(j) For each meeting of the board of directors of the public
school academy under section 1201, prepare a report detailing the
authorizing body's efforts to provide oversight of the public
school academy as required under subdivision (d) and section
502(4).
(k) Present the most recent report prepared under subdivision
(j) at each meeting of the board of directors of the public school
academy under section 1201.
(l) Ensure that the bylaws adopted by the board of directors
of a public school academy include a requirement that any act of
the board of directors be approved by a majority of the members
serving on the board.
(m) Oversee all contracts entered into by a public school
academy to ensure that all terms and conditions of the contract are
fulfilled.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for a public school academy is the
fiscal agent for the public school academy. A state school aid
payment for a public school academy shall be paid to the
authorizing body that is the fiscal agent for that public school
academy, and the authorizing body shall then forward the payment to
the public school academy. Within 30 days after a contract is
submitted to the department by an authorizing body under subsection
(1), the department shall issue a district code to the public
school academy for which the contract was issued. If the department
does not issue a district code within 30 days after a contract is
filed, the state treasurer shall assign a temporary district code
in order for the public school academy to receive funding under the
state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the public school academy to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the public school academy to comply with all
applicable law.
(c) Failure of the public school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for a public school academy that is an alternative
school serving a special student population, if the state school
reform/redesign officer determines that a public school academy
site that has been operating for at least 4 years is among the
lowest achieving 5% of all public schools in this state for the
immediately preceding 3 school years, as determined under section
1280c, not to include any individualized education plan subgroup,
the state school reform/redesign officer shall notify the public
school academy's authorizing body. Also, except for a public school
academy that is an alternative school serving a special student
population, after the accountability system under section 390 has
been in effect in the community district for at least 3 full school
years, if the state school reform/redesign officer determines that
a public school academy site located in a community district has
been assigned a grade of "F" under section 390 for the immediately
preceding 3 school years, and is not currently undergoing
reconstitution under this section, the state school reform/redesign
officer shall notify the public school academy's authorizing body.
Subject to subsection (6), if an authorizing body receives notice
from the state school reform/redesign officer under this
subsection, the authorizing body shall amend the public school
academy's contract to eliminate the public school academy's
authority to operate the existing age and grade levels at the site
and the public school academy shall cease operating the existing
age and grade levels at the site, effective at the end of the
current school year. Subject to subsection (6), if the public
school academy operates at only 1 site, and the authorizing body
receives notice from the state school reform/redesign officer under
this subsection, the authorizing body shall revoke the public
school academy's contract, effective at the end of the current
school year.
(6) For a public school academy or site that is subject to a
notice to its authorizing body under this subsection, the state
school reform/redesign officer shall consider other public school
options available to pupils in the grade levels offered by the
public school academy or site who reside in the geographic area
served by the public school academy or site. If the state school
reform/redesign officer determines that closure of the public
school academy or site would result in an unreasonable hardship to
these pupils because there are insufficient other public school
options reasonably available for these pupils, the state school
reform/redesign officer may rescind the notice. If the state school
reform/redesign officer rescinds a notice subjecting a public
school academy or site to closure, the state school reform/redesign
officer shall do so before the end of the school year. If the state
school reform/redesign officer rescinds a notice subjecting a
public school academy or site to closure, the state school
reform/redesign officer shall require the public school academy or
site to implement a school improvement plan that includes measures
to increase pupil growth and improve pupil proficiency, with growth
and proficiency measured by performance on state assessments.
(7) Except as otherwise provided in section 502 or 503, the
decision of an authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
court or any state agency. An authorizing body that issues, does
not issue, or reconstitutes a contract under this part, or that
terminates or revokes a contract under this section, is not liable
for that action to the public school academy, the public school
academy corporation, a pupil of the public school academy, the
parent or guardian of a pupil of the public school academy, or any
other person.
(8) Except as otherwise provided in this section, before an
authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. An
authorizing body may reconstitute the public school academy in a
final attempt to improve student educational performance or to
avoid interruption of the educational process. An authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, canceling a contract with an educational management
organization, if any, withdrawing approval of a contract under
section 506, or appointing a new board of directors or a trustee to
take over operation of the public school academy.
(9) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the public
school academy under this part, shall return any school aid funds
held by the authorizing body that are attributable to the affected
pupils to the state treasurer for deposit into the state school aid
fund. The state treasurer shall distribute funds to the public
school in which the pupils enroll after the revocation pursuant to
a methodology established by the department and the center for
educational performance and information.
(10) Not more than 10 days after a public school academy's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the public school academy whose contract has terminated or
been revoked and the date of contract termination or revocation.
Sec. 528. (1) An authorizing body that issues a contract for
an urban high school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Adopt a resolution establishing the method of selection,
length of term, and number of members of the board of directors of
each urban high school academy that it authorizes. The resolution
shall be written or amended as necessary to include a requirement
that each member of the board of directors must be a citizen of the
United States.
(d) Oversee the operations of each urban high school academy
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the urban high school
academy is in compliance with the terms of the contract and with
applicable law. An authorizing body may enter into an agreement
with 1 or more other authorizing bodies to oversee an urban high
school academy operating under a contract issued by the authorizing
body.
(e) Develop and implement a process for holding an urban high
school academy board of directors accountable for meeting
applicable academic performance standards set forth in the contract
and for implementing corrective action for an urban high school
academy that does not meet those standards.
(f) Take necessary measures to ensure that an urban high
school academy board of directors operates independently of any
educational management company involved in the operations of the
urban high school academy.
(g) Oversee and ensure that the pupil admission process used
by the urban high school academy is operated in a fair and open
manner and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the urban high
school academy maintains and releases information as necessary to
comply with applicable law.
(i) Ensure that a representative of the authorizing body
attends each meeting of the board of directors of the urban high
school academy under section 1201.
(j) For each meeting of the board of directors of the urban
high school academy under section 1201, prepare a report detailing
the authorizing body's efforts to provide oversight of the urban
high school academy as required under subdivision (d).
(k) Present the most recent report prepared under subdivision
(j) at each meeting of the board of directors of the urban high
school academy under section 1201.
(l) Ensure that the bylaws adopted by the board of directors
of an urban high school academy include a requirement that any act
of the board of directors be approved by a majority of the members
serving on the board.
(m) Oversee all contracts entered into by an urban high school
academy to ensure that all terms and conditions of the contract are
fulfilled.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for an urban high school academy is
the fiscal agent for the urban high school academy. A state school
aid payment for an urban high school academy shall be paid to the
authorizing body that is the fiscal agent for that urban high
school academy, which shall then forward the payment to the urban
high school academy. Within 30 days after a contract is submitted
to the department by an authorizing body under subsection (1), the
department shall issue a district code to the urban high school
academy for which the contract was issued. If the department does
not issue a district code within 30 days after a contract is filed,
the state treasurer shall assign a temporary district code in order
for the urban high school academy to receive funding under the
state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body that issued the contract if the authorizing body
determines that 1 or more of the following have occurred:
(a) Failure of the urban high school academy to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the urban high school academy to comply with
all applicable law.
(c) Failure of the urban high school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for an urban high school academy that is an
alternative school serving a special student population, if the
state school reform/redesign officer determines that an urban high
school academy site that has been operating for at least 4 years is
among the lowest achieving 5% of all public schools in this state
for the immediately preceding 3 school years, as determined under
section 1280c, not to include any individualized education plan
subgroup, the state school reform/redesign officer shall notify the
urban high school academy's authorizing body. Also, except for an
urban high school academy that is an alternative school serving a
special student population, after the accountability system under
section 390 has been in effect in the community district for at
least 3 full school years, if the state school reform/redesign
officer determines that an urban high school academy site located
in a community district has been assigned a grade of "F" under
section 390 for the immediately preceding 3 school years, and is
not currently undergoing reconstitution under this section, the
state school reform/redesign officer shall notify the urban high
school academy's authorizing body. Subject to subsection (6), if an
authorizing body receives notice from the state school
reform/redesign officer under this subsection, the authorizing body
shall amend the urban high school academy's contract to eliminate
the urban high school academy's authority to operate the existing
age and grade levels at the site and the urban high school academy
shall cease operating the existing age and grade levels at the
site, effective at the end of the current school year. Subject to
subsection (6), if the urban high school academy operates at only 1
site, and the authorizing body receives notice from the state
school reform/redesign officer under this subsection, the
authorizing body shall revoke the urban high school academy's
contract, effective at the end of the current school year.
(6) For an urban high school academy or site that is subject
to a notice to its authorizing body under this subsection, the
state school reform/redesign officer shall consider other public
school options available to pupils in the grade levels offered by
the urban high school academy or site who reside in the geographic
area served by the urban high school academy or site. If the state
school reform/redesign officer determines that closure of the urban
high school academy or site would result in an unreasonable
hardship to these pupils because there are insufficient other
public school options reasonably available for these pupils, the
state school reform/redesign officer may rescind the notice. If the
state school reform/redesign officer rescinds a notice subjecting
an urban high school academy or site to closure, the state school
reform/redesign officer shall do so before the end of the school
year. If the state school reform/redesign officer rescinds a notice
subjecting an urban high school academy or site to closure, the
state school reform/redesign officer shall require the urban high
school academy or site to implement a school improvement plan that
includes measures to increase pupil growth and improve pupil
proficiency, with growth and proficiency measured by performance on
state assessments.
(7) Except as otherwise provided in section 522, the decision
of an authorizing body to issue, not issue, or reconstitute a
contract under this part, or to terminate or revoke a contract
under this section, is solely within the discretion of the
authorizing body, is final, and is not subject to review by a court
or any state agency. An authorizing body that issues, does not
issue, or reconstitutes a contract under this part, or that
terminates or revokes a contract under this section, is not liable
for that action to the urban high school academy, the urban high
school academy corporation, a pupil of the urban high school
academy, the parent or guardian of a pupil of the urban high school
academy, or any other person.
(8) Except as otherwise provided in this section, before an
authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. An
authorizing body may reconstitute the urban high school academy in
a final attempt to improve student educational performance or to
avoid interruption of the educational process. An authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, removing 1 or more members of the board of directors,
withdrawing approval to contract under section 527, or appointing a
new board of directors or a trustee to take over operation of the
urban high school academy.
(9) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the urban high
school academy under this part, shall return any school aid funds
held by the authorizing body that are attributable to the affected
pupils to the state treasurer for deposit into the state school aid
fund. The state treasurer shall distribute funds to the public
school in which the pupils enroll after the revocation pursuant to
a methodology established by the department and the center for
educational performance and information.
(10) Not more than 10 days after an urban high school
academy's contract terminates or is revoked, the authorizing body
shall notify the superintendent of public instruction in writing of
the name of the urban high school academy whose contract has
terminated or been revoked and the date of contract termination or
revocation.
(11) If an urban high school academy's contract terminates or
is revoked, title to all real and personal property, interest in
real or personal property, and other assets owned by the urban high
school academy shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of an urban high school academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the urban high school academy
corporation, all in accordance with chapter 8 of the nonprofit
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.
(b) The urban high school academy shall file a certificate of
dissolution with the department of licensing and regulatory affairs
within 10 business days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the urban high school academy
board of directors shall provide a copy of the board of directors'
plan of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the urban high school academy's winding up of the dissolved
corporation in accordance with the plan of distribution of assets
approved or provided under subdivision (c).
(e) As part of the plan of distribution of assets, the urban
high school academy board of directors shall designate the director
of the department of technology, management, and budget, or his or
her designee, to dispose of all real property of the urban high
school academy corporation in accordance with the directives
developed for disposition of surplus land and facilities under
section 251 of the management and budget act, 1984 PA 431, MCL
18.1251.
(f) If the board of directors of an urban high school academy
fails to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the urban high
school academy board of directors and appoint a trustee to carry
out the board's plan of distribution of assets. Upon appointment,
the trustee shall have all the rights, powers, and privileges under
law that the urban high school academy board of directors had
before being suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any urban high school academy debt secured by the property or
interest in property, whether real or personal, the urban high
school academy board of directors, or a trustee appointed under
this section, shall forward any remaining money to the state
treasurer. Following receipt, the state treasurer, or his or her
designee, shall deposit this remaining money in the state school
aid fund.
Sec. 561. (1) If an authorizing body issues a contract for a
school of excellence under this part, the authorizing body shall do
all of the following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each school of
excellence that it authorizes. The authorizing body shall ensure
that the board of directors includes representation from the local
community.
(d) Oversee the operations of each school of excellence
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the school of
excellence is in compliance with the terms of the contract and with
applicable law. This subdivision does not relieve any other
governmental entity of its enforcement or supervisory
responsibility.
(e) Develop and implement a process for holding a school of
excellence board of directors accountable for meeting applicable
academic performance standards set forth in the contract and for
implementing corrective action for a school of excellence that does
not meet those standards.
(f) Take necessary measures to ensure that a school of
excellence board of directors operates independently of any
educational management organization involved in the operations of
the school of excellence.
(g) Oversee and ensure that the pupil admission process used
by the school of excellence is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the school of
excellence maintains and releases information as necessary to
comply with applicable law.
(i) Ensure that a representative of the authorizing body
attends each meeting of the board of directors of the school of
excellence under section 1201.
(j) For each meeting of the board of directors of the school
of excellence under section 1201, prepare a report detailing the
authorizing body's efforts to provide oversight of the school of
excellence as required under subdivision (d) and section 552(8).
(k) Present the most recent report prepared under subdivision
(j) at each meeting of the board of directors of the school of
excellence under section 1201.
(l) Ensure that the bylaws adopted by the board of directors
of a school of excellence include a requirement that any act of the
board of directors be approved by a majority of the members serving
on the board.
(m) Oversee all contracts entered into by a school of
excellence to ensure that all terms and conditions of the contract
are fulfilled.
(2) The authorizing body may enter into an agreement with 1 or
more authorizing bodies, as defined under part 6a, to carry out any
function of the authorizing body under subsection (1)(a) to (h).
(3) The authorizing body for a school of excellence is the
fiscal agent for the school of excellence. A state school aid
payment for a school of excellence shall be paid to the authorizing
body as the fiscal agent for that school of excellence, and the
authorizing body shall then forward the payment to the school of
excellence. Within 30 days after a contract is submitted to the
department by the authorizing body under subsection (1), the
department shall issue a district code to the school of excellence
for which the contract was issued. If the department does not issue
a district code within 30 days after a contract is filed, the state
treasurer shall assign a temporary district code in order for the
school of excellence to receive funding under the state school aid
act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the school of excellence to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the school of excellence to comply with all
applicable law.
(c) Failure of the school of excellence to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for a school of excellence that is an alternative
school serving a special student population, if the state school
reform/redesign officer determines that a school of excellence site
that has been operating for at least 4 years is among the lowest
achieving 5% of all public schools in this state for the
immediately preceding 3 school years, as determined under section
1280c, not to include any individualized education plan subgroup,
the state school reform/redesign officer shall notify the school of
excellence's authorizing body. Also, except for a school of
excellence that is an alternative school serving a special student
population, after the accountability system under section 390 has
been in effect in the community district for at least 3 full school
years, if the state school reform/redesign officer determines that
a school of excellence site located in a community district has
been assigned a grade of "F" under section 390 for the immediately
preceding 3 school years, and is not currently undergoing
reconstitution under this section, the state school reform/redesign
officer shall notify the school of excellence's authorizing body.
Subject to subsection (6), if an authorizing body receives notice
from the state school reform/redesign officer under this
subsection, the authorizing body shall amend the school of
excellence's contract to eliminate the school of excellence's
authority to operate the existing age and grade levels at the site
and the school of excellence shall cease operating the existing age
and grade levels at the site, effective at the end of the current
school year. Subject to subsection (6), if the school of excellence
operates at only 1 site or is a cyber school, and the authorizing
body receives notice from the state school reform/redesign officer
under this subsection, the authorizing body shall revoke the school
of excellence's contract, effective at the end of the current
school year.
(6) For a school of excellence or site that is subject to a
notice to its authorizing body under this subsection, the state
school reform/redesign officer shall consider other public school
options available to pupils in the grade levels offered by the
school of excellence or site who reside in the geographic area
served by the school of excellence or site. If the state school
reform/redesign officer determines that closure of the school of
excellence or site would result in an unreasonable hardship to
these pupils because there are insufficient other public school
options reasonably available for these pupils, the state school
reform/redesign officer may rescind the notice. If the state school
reform/redesign officer rescinds a notice subjecting a school of
excellence or site to closure, the state school reform/redesign
officer shall do so before the end of the school year. If the state
school reform/redesign officer rescinds a notice subjecting a
school of excellence or site to closure, the state school
reform/redesign officer shall require the school of excellence or
site to implement a school improvement plan that includes measures
to increase pupil growth and improve pupil proficiency, with growth
and proficiency measured by performance on state assessments.
(7) Except for a contract issued by a school district pursuant
to a vote by the school electors on a ballot question under section
553(2), and except as otherwise provided in section 552, the
decision of the authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
court or any other state agency. If the authorizing body issues,
does not issue, or reconstitutes a contract under this part, or
terminates or revokes a contract under this section, the
authorizing body is not liable for that action to the school of
excellence, the school of excellence corporation, a pupil of the
school of excellence, the parent or guardian of a pupil of the
school of excellence, or any other person.
(8) Except as otherwise provided in this section, before the
authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. The
authorizing body may reconstitute the school of excellence in a
final attempt to improve student educational performance or to
avoid interruption of the educational process. The authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, canceling a contract with an educational management
organization, if any, withdrawing approval to contract under
section 560, or appointing a new board of directors or a trustee to
take over operation of the school of excellence.
(9) If the authorizing body revokes a contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the school of excellence under this part, shall return any
school aid funds held by the authorizing body that are attributable
to the affected pupils to the state treasurer for deposit into the
state school aid fund. The state treasurer shall distribute funds
to the public school in which the pupils enroll after the
revocation pursuant to a methodology established by the department
and the center for educational performance and information.
(10) Not more than 10 days after a school of excellence's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the school of excellence whose contract has terminated or
been revoked and the date of contract termination or revocation.
(11) If a school of excellence's contract terminates or is
revoked, title to all real and personal property, interest in real
or personal property, and other assets owned by the school of
excellence shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of a school of excellence shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the school of excellence corporation,
all in accordance with chapter 8 of the nonprofit corporation act,
1982 PA 162, MCL 450.2801 to 450.2864.
(b) The school of excellence shall file a certificate of
dissolution with the department of licensing and regulatory affairs
within 10 business days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the school of excellence board
of directors shall provide a copy of the board of directors' plan
of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the school of excellence's winding up of the dissolved corporation
in accordance with the plan of distribution of assets approved or
provided under subdivision (c).
(e) As part of the plan of distribution of assets, the school
of excellence board of directors shall designate the director of
the department of technology, management, and budget, or his or her
designee, to dispose of all real property of the school of
excellence corporation in accordance with the directives developed
for disposition of surplus land and facilities under section 251 of
the management and budget act, 1984 PA 431, MCL 18.1251.
(f) If the board of directors of a school of excellence fails
to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the school of
excellence board of directors and appoint a trustee to carry out
the board's plan of distribution of assets. Upon appointment, the
trustee shall have all the rights, powers, and privileges under law
that the school of excellence board of directors had before being
suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any school of excellence debt secured by the property or interest
in property, whether real or personal, the school of excellence
board of directors, or a trustee appointed under this section,
shall forward any remaining money to the state treasurer. Following
receipt, the state treasurer, or his or her designee, shall deposit
this remaining money in the state school aid fund.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
