Bill Text: MI SB0311 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Education; public school academies; increased oversight over charter schools, certificate of need for new charter schools, open bid process for contracted services, procedures for removal of charter school board members, and revisions to authorizer fee and term of charter contract; provide for. Amends secs. 502, 503, 503c, 504a, 522, 523, 523c, 525, 528, 552, 553, 553c, 557, 1311d, 1311e & 1311h of 1976 PA 451 (MCL 380.502 et seq.).
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2015-04-30 - Referred To Committee On Education [SB0311 Detail]
Download: Michigan-2015-SB0311-Introduced.html
SENATE BILL No. 311
April 30, 2015, Introduced by Senators HOPGOOD, GREGORY, SMITH, HERTEL, BIEDA, YOUNG and HOOD and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 502, 503, 503c, 504a, 522, 523, 523c, 525,
528, 552, 553, 553c, 557, 1311d, 1311e, and 1311h (MCL 380.502,
380.503, 380.503c, 380.504a, 380.522, 380.523, 380.523c, 380.525,
380.528, 380.552, 380.553, 380.553c, 380.557, 380.1311d, 380.1311e,
and 380.1311h), sections 502, 503, 522, 523, 528, and 553 as
amended and sections 503c, 523c, and 553c as added by 2011 PA 277,
section 504a as amended and section 525 as added by 2003 PA 179,
section 552 as amended by 2012 PA 129, section 557 as added and
section 1311e as amended by 2009 PA 205, section 1311d as added by
1999 PA 23, and section 1311h as amended by 2012 PA 620.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 502. (1) A public school academy shall be organized and
administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. A public school academy corporation shall be organized
under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3192, except that a public school academy corporation is not
required to comply with sections 170 to 177 of 1931 PA 327, MCL
450.170 to 450.177. To the extent disqualified under the state or
federal constitution, a public school academy shall not be
organized by a church or other religious organization and shall not
have any organizational or contractual affiliation with or
constitute a church or other religious organization.
(2)
Any Subject to subsections
(4) to (6), any of the
following may act as an authorizing body to issue a contract to
organize and operate 1 or more public school academies under this
part:
(a) The board of a school district that operates grades K to
12. However, the board of a school district shall not issue a
contract for a public school academy to operate outside the school
district's boundaries, and a public school academy authorized by
the board of a school district shall not operate outside that
school district's boundaries. For the purposes of this section,
"school district" expressly does not include the state school
reform/redesign school district created under section 1280c, the
education achievement authority, or any other statewide entity.
(b) An intermediate school board. However, the board of an
intermediate school district shall not issue a contract for a
public school academy to operate outside the intermediate school
district's boundaries, and a public school academy authorized by
the board of an intermediate school district shall not operate
outside that intermediate school district's boundaries.
(c) The board of a community college. However, except as
otherwise provided in this subdivision, the board of a community
college shall not issue a contract for a public school academy to
operate in a school district organized as a school district of the
first class, a public school academy authorized by the board of a
community college shall not operate in a school district organized
as a school district of the first class, the board of a community
college shall not issue a contract for a public school academy to
operate outside the boundaries of the community college district,
and a public school academy authorized by the board of a community
college shall not operate outside the boundaries of the community
college district. The board of a community college also may issue a
contract for not more than 1 public school academy to operate on
the grounds of an active or closed federal military installation
located outside the boundaries of the community college district,
or may operate a public school academy itself on the grounds of
such a federal military installation, if the federal military
installation is not located within the boundaries of any community
college district and the community college has previously offered
courses on the grounds of the federal military installation for at
least 10 years.
(d) The governing board of a state public university. However,
the combined total number of contracts for public school academies
issued
by all state public universities shall not exceed 300
through
December 31, 2012 and shall not exceed 500 through December
31,
2014. After December 31, 2014, there is no limit on the
combined
total number of contracts for public school academies that
may
be issued by all state public universities.the combined total
number of public school academies authorized by all state public
universities that are in operation during the 2014-2015 school
year.
(e)
Two or more of the public agencies described in
subdivisions
(a) to (d) exercising power, privilege, or authority
jointly
pursuant to an interlocal agreement under the urban
cooperation
act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
(3) To obtain a contract to organize and operate 1 or more
public school academies, 1 or more persons or an entity may apply
to an authorizing body described in subsection (2). The application
shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 503(5), a list of the proposed members of the board
of directors of the public school academy and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed public school academy.
(ii) The purposes for the public school academy corporation.
This language shall provide that the public school academy is
incorporated pursuant to this part and that the public school
academy corporation is a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the public school
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the public school academy.
(ii) A copy of the educational goals of the public school
academy and the curricula to be offered and methods of pupil
assessment to be used by the public school academy. The educational
goals shall include demonstrated improved pupil academic
achievement for all groups of pupils. To the extent applicable, the
progress of the pupils in the public school academy shall be
assessed using at least a Michigan education assessment program
(MEAP) test or the Michigan merit examination under section 1279g,
as applicable.
(iii) The admission policy and criteria to be maintained by the
public school academy. The admission policy and criteria shall
comply with section 504. This part of the application also shall
include a description of how the applicant will provide to the
general public adequate notice that a public school academy is
being created and adequate information on the admission policy,
criteria, and process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(f) Descriptions of staff responsibilities and of the public
school academy's governance structure.
(g) For an application to the board of a school district, an
intermediate school board, or board of a community college,
identification of the local and intermediate school districts in
which the public school academy will be located.
(h) An agreement that the public school academy will comply
with the provisions of this part and, subject to the provisions of
this part, with all other state law applicable to public bodies and
with federal law applicable to public bodies or school districts.
(i) A description of and address for the proposed physical
plant in which the public school academy will be located. An
applicant may request the authorizing body to issue a contract
allowing the public school academy board of directors to operate
the same configuration of age or grade levels at more than 1 site.
(j) The certificate of need issued by the state board under
subsection (4).
(4) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a
contract to organize and operate a public school academy under this
part unless the application is accompanied by a certificate of need
issued by the state board under this subsection. The state board
shall promulgate rules to develop and implement a process for
issuing a certificate of need for a new public school academy. The
standards for issuing a certificate of need shall include, but are
not limited to, all of the following:
(a) The resources available for the proposed public school
academy.
(b) The population to be served by the proposed public school
academy.
(c) The educational goals to be achieved by the proposed
public school academy.
(d) The applicant's track record, if any, in organizing public
school academies or other public schools.
(e) The graduation rate of a school district in which the
proposed public school academy is proposed to be located.
(f) The population of a county in which the proposed public
school academy is proposed to be located.
(g) The number of schools in the proximity of a proposed
location of the proposed public school academy that are on the list
under section 1280c(1) of the public schools in this state that the
department has determined to be among the lowest achieving 5% of
all public schools in this state.
(h) The number of pupils on waiting lists of public school
academies in the proximity of a proposed location of the proposed
public school academy.
(i) The number of public school options already available in
the proximity of a proposed location of the proposed public school
academy.
(j) The impact of the issuance of the contract on existing
public schools in the proximity of a proposed location of the
proposed public school academy.
(5) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a new
contract to organize and operate a public school academy under this
part to an existing public school academy, urban high school
academy, school of excellence, or strict discipline academy that
has had its contract with its previous authorizing body revoked,
terminated, or not renewed. The board of directors of a public
school academy, urban high school academy, school of excellence, or
strict discipline academy described in this subsection shall not
apply for a contract that would violate this subsection.
(6) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a new
contract to organize and operate a new public school academy unless
each of the existing public school academies that are operating
under a contract from that authorizing body have demonstrated pupil
achievement as measured by applicable state assessments at a level
that is at least 20% higher than the school district in which the
existing public school academy is located.
(7) (4)
An authorizing body shall oversee,
or shall contract
with an intermediate school district, community college, or state
public university to oversee, each public school academy operating
under a contract issued by the authorizing body. The authorizing
body is responsible for overseeing compliance by the board of
directors with the contract and all applicable law. This subsection
does not relieve any other government entity of its enforcement or
supervisory responsibility.
(8) (5)
If the superintendent of public
instruction finds that
an authorizing body is not engaging in appropriate continuing
oversight of 1 or more public school academies operating under a
contract issued by the authorizing body, the superintendent of
public instruction may suspend the power of the authorizing body to
issue new contracts to organize and operate public school
academies. A contract issued by the authorizing body during the
suspension is void. A contract issued by the authorizing body
before the suspension is not affected by the suspension. In
evaluating whether an authorizing body is engaging in appropriate
continuing oversight of 1 or more public school academies operating
under a contract issued by the authorizing body, the superintendent
of public instruction shall take into account all of the following:
(a) The academic performance of the public school academies
authorized by the authorizing body, including at least the ranking
of those schools on the department's "top-to-bottom" list and the
measures already implemented at the school to address student
improvement.
(b) New or reauthorized contracts that are submitted by the
authorizing body to the superintendent of public instruction with
more than 2 deficiencies.
(c) Transparency demonstrated by the public school academies
authorized by the authorizing body, including at least the number
of those schools' websites that have an inactive or outdated
"transparency mitten" or do not have an updated budget.
(d) Fiscal responsibility demonstrated by the public school
academies authorized by the authorizing body, including at least
the number of late audits, audit findings, and deficits among those
schools.
(e) Assurances and verifications, as defined by the
superintendent of public instruction.
(9) (6)
An authorizing body shall not
charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a public school academy in an amount that exceeds a
combined
total of 3% 1% of the total state school aid received by
the public school academy in the school year in which the fees or
expenses are charged. An authorizing body may provide other
services for a public school academy and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the public school academy.
(10) (7)
A public school academy shall be
presumed to be
legally organized if it has exercised the franchises and privileges
of a public school academy for at least 2 years.
(8)
An authorizing body may enter into an intergovernmental
agreement
with another authorizing body to issue public school
academy
contracts. At a minimum, the agreement shall further the
purposes
set forth in section 501, describe which authorizing body
shall
issue the contract, and set forth which authorizing body will
be
responsible for monitoring compliance by the board of directors
of
the public school academy with the contract and all applicable
law.
Sec. 503. (1) An authorizing body is not required to issue a
contract to any person or entity. Subject to subsection (2), public
school academy contracts shall be issued on a competitive basis. In
deciding whether to issue a contract for a proposed public school
academy, an authorizing body shall consider all of the following:
(a) The resources available for the proposed public school
academy.
(b) The population to be served by the proposed public school
academy.
(c) The educational goals to be achieved by the proposed
public school academy.
(d) The applicant's track record, if any, in organizing public
school academies or other public schools.
(e) The graduation rate of a school district in which the
proposed public school academy is proposed to be located.
(f) The population of a county in which the proposed public
school academy is proposed to be located.
(g) The number of schools in the proximity of a proposed
location of the proposed public school academy that are on the list
under section 1280c(1) of the public schools in this state that the
department has determined to be among the lowest achieving 5% of
all public schools in this state.
(h) The number of pupils on waiting lists of public school
academies in the proximity of a proposed location of the proposed
public school academy.
(i) The level of support for the proposed public school
academy in the community in which it is to be located. Before
issuing a contract for a proposed public school academy, the
authorizing body shall hold at least 1 public meeting in the
community in which the proposed public school academy is to be
located in order to gauge this level of support.
(2) An authorizing body may give priority to a proposed public
school academy that is intended to replace a public school academy
that
has been closed pursuant to due
to action taken under section
507(5), that will operate all of the same grade levels as the
public school academy that has been closed, and that will work
toward operating all of grades 9 to 12 within 6 years after it
begins operations unless a matriculation agreement has been entered
into with another public school that provides grades 9 to 12.
(3) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more public
school academies within the boundaries of the school district and
the board does not issue the contract, the person or entity may
petition the board to place the question of issuing the contract on
the ballot to be decided by the school electors of the school
district. The petition shall contain all of the information
required to be in the contract application under section 502 and
shall be signed by a number of school electors of the school
district equal to at least 5% of the total number of school
electors of that school district. The petition shall be filed with
the school district filing official. If the board receives a
petition meeting the requirements of this subsection, the board
shall have the question of issuing the contract placed on the
ballot at its next regular school election held at least 60 days
after receiving the petition. If a majority of the school electors
of the school district voting on the question vote to issue the
contract, the board shall issue the contract.
(4) Within 10 days after issuing a contract for a public
school academy, the authorizing body shall submit to the
superintendent of public instruction a copy of the contract.
(5) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, quorum requirements, and
number of members of the board of directors of each public school
academy subject to its jurisdiction. The resolution shall be
written
or amended as necessary to include a all of the following:
(a) A requirement that each member of the board of directors
must be a citizen of the United States.
(b) A process and standards for removal of a member of the
board of directors. The resolution shall provide that a member of
the board of directors may be removed only for gross neglect of
duty or for corrupt conduct in office, or for any other
misfeasance, malfeasance, or nonfeasance in office.
(c) A limit on the term of service of a board member to a term
of not more than 5 consecutive years, with at least a 10-year
period before a member may serve an additional term.
(d) A requirement of at least 7 members on a board of
directors, with at least 2 members being parents of pupils enrolled
in the public school academy.
(e) A requirement of at least 5 members, including the
president of the board of directors, for a quorum, except in the
case of a vacancy.
(f) A requirement that vacancies on the board of directors
must be filled within 90 days.
(g) An attendance requirement that provides for both of the
following:
(i) During any 12-month period, a board member must attend at
least 85% of all board functions, including, but not limited to,
monthly board meetings, scheduled board events, and special and
emergency board meetings.
(ii) Failure to meet this attendance requirement constitutes a
vacating of the office of board member.
(6) A contract issued to organize and administer a public
school academy shall contain at least all of the following:
(a) The educational goals the public school academy is to
achieve and the methods by which it will be held accountable. The
educational goals shall include demonstrated improved pupil
academic achievement for all groups of pupils. To the extent
applicable, the pupil performance of a public school academy shall
be assessed using at least a Michigan education assessment program
(MEAP) test or the Michigan merit examination under section 1279g,
as applicable.
(b) A description of the method to be used to monitor the
public school academy's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) All of the matters set forth in the application for the
contract.
(e) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 507.
(f) A description of and address for the proposed physical
plant in which the public school academy will be located. An
authorizing body may include a provision in the contract allowing
the board of directors of the public school academy to operate the
same configuration of age or grade levels at more than 1 site if
each configuration of age or grade levels and each site identified
in the contract are under the direction and control of the board of
directors.
(g) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by a
certified public accountant in accordance with generally accepted
governmental auditing principles.
(h) The term of the contract and a description of the process
and standards for renewal of the contract at the end of the term.
The term of the contract shall not exceed 3 years. The standards
for renewal shall include increases in academic achievement for all
groups of pupils as measured by assessments and other objective
criteria as the most important factor in the decision of whether or
not to renew the contract.
(i) A certification, signed by an authorized member of the
board of directors of the public school academy, that the public
school academy will comply with the contract and all applicable
law.
(j) A requirement that the board of directors of the public
school academy shall ensure compliance with the requirements of
1968 PA 317, MCL 15.321 to 15.330.
(k) A requirement that the board of directors of the public
school academy shall prohibit specifically identified family
relationships between members of the board of directors,
individuals who have an ownership interest in or who are officers
or employees of an educational management organization involved in
the operation of the public school academy, and employees of the
public school academy. The contract shall identify the specific
prohibited relationships consistent with applicable law.
(l) A requirement that the board of directors of the public
school academy shall make information concerning its operation and
management available to the public and to the authorizing body in
the same manner as is required by state law for school districts.
(m) A requirement that the board of directors of the public
school academy shall collect, maintain, and make available to the
public and the authorizing body, in accordance with applicable law
and the contract, at least all of the following information
concerning the operation and management of the public school
academy:
(i) A copy of the contract issued by the authorizing body for
the public school academy.
(ii) A list of currently serving members of the board of
directors of the public school academy, including name, address,
and term of office; copies of policies approved by the board of
directors; board meeting agendas and minutes; a copy of the budget
approved by the board of directors and of any amendments to the
budget; and copies of bills paid for amounts of $10,000.00 or more
as they were submitted to the board of directors.
(iii) Quarterly financial reports submitted to the authorizing
body.
(iv) A current list of teachers and school administrators
working at the public school academy that includes their individual
salaries as submitted to the registry of educational personnel;
copies of the teaching or school administrator's certificates or
permits of current teaching and administrative staff; and evidence
of compliance with the criminal background and records checks and
unprofessional conduct check required under sections 1230, 1230a,
and 1230b for all teachers and administrators working at the public
school academy.
(v) Curriculum documents and materials given to the
authorizing body.
(vi) Proof of insurance as required by the contract.
(vii) Copies of facility leases or deeds, or both, and of any
equipment leases.
(viii) Copies of any management contracts or services contracts
approved by the board of directors.
(ix) All health and safety reports and certificates, including
those relating to fire safety, environmental matters, asbestos
inspection, boiler inspection, and food service.
(x) Any management letters issued as part of the annual
financial audit under subdivision (g).
(xi) Any other information specifically required under this
act.
(n) A requirement that the authorizing body must review and
may disapprove any agreement between the board of directors of the
public school academy and an educational management organization
before the agreement is final and valid. An authorizing body may
disapprove an agreement described in this subdivision only if the
agreement is contrary to the contract or applicable law.
(o) A requirement that the board of directors of the public
school academy shall demonstrate all of the following to the
satisfaction of the authorizing body with regard to its pupil
admission process:
(i) That the public school academy has made a reasonable effort
to advertise its enrollment openings.
(ii) That the open enrollment period for the public school
academy is for a duration of at least 2 weeks and that the
enrollment times include some evening and weekend times.
(p) A requirement that the board of directors of the public
school academy shall prohibit any individual from being employed by
the public school academy in more than 1 full-time position and
simultaneously being compensated at a full-time rate for each of
those positions.
(7) A public school academy shall comply with all applicable
law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.
(f) Laws concerning participation in state assessments, data
collection systems, state level student growth models, state
accountability and accreditation systems, and other public
comparative data collection required for public schools.
(8) A public school academy and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for an act or omission in authorizing a public school academy if
the authorizing body or the person acted or reasonably believed he
or she acted within the authorizing body's or the person's scope of
authority.
(9) A public school academy is exempt from all taxation on its
earnings and property. Instruments of conveyance to or from a
public school academy are exempt from all taxation including taxes
imposed
by 1966 PA 134, MCL 207.501 to 207.513. Unless the property
is
already fully exempt from real and personal property taxes under
the
general property tax act, 1893 PA 206, MCL 211.1 to 211.155,
property
occupied by a public school academy and used exclusively
for
educational purposes is exempt from real and personal property
taxes
levied for school operating purposes under section 1211, to
the
extent exempted under that section, and from real and personal
property
taxes levied under the state education tax act, 1993 PA
331,
MCL 211.901 to 211.906. A public
school academy may not levy
ad valorem property taxes or another tax for any purpose. However,
operation of 1 or more public school academies by a school district
or intermediate school district does not affect the ability of the
school district or intermediate school district to levy ad valorem
property taxes or another tax.
(10) A public school academy may acquire by purchase, gift,
devise, lease, sublease, installment purchase agreement, land
contract, option, or by any other means, hold and own in its own
name buildings and other property for school purposes, and
interests therein, and other real and personal property, including,
but not limited to, interests in property subject to mortgages,
security interests, or other liens, necessary or convenient to
fulfill its purposes. For the purposes of condemnation, a public
school academy may proceed under the uniform condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding
sections 6 to 9 of that act, MCL 213.56 to 213.59, or other
applicable statutes, but only with the express, written permission
of the authorizing body in each instance of condemnation and only
after just compensation has been determined and paid.
(11) A member of the board of directors of a public school
academy is a public officer and shall, before entering upon the
duties of the office, take the constitutional oath of office for
public officers under section 1 of article XI of the state
constitution of 1963.
Sec.
503c. (1) Beginning with management agreements described
in
this section that are entered into or renewed after the
effective
date of this section, if If the board of directors of a
public school academy enters into or renews a management agreement
with an educational management organization to carry out the
operations
of the public school academy, both all of the following
apply:
(a) The board of directors shall post a copy of the management
agreement on the public school academy's website, with a link on
the public school academy's website homepage, in a form and manner
prescribed by the department.
(b) (a)
The management agreement shall
require the educational
management organization to provide to the board of directors at
least annually all of the same information that a school district
is required to disclose under section 18(2) of the state school aid
act of 1979, MCL 388.1618, for the most recent school fiscal year
for which that information is available.
(c) (b)
Within 30 15 days
after receiving the information
under
subdivision (a), (b), the board of directors shall make all
of
the information it receives under subdivision (a) (b) available
through a link on the public school academy's website homepage, in
a form and manner prescribed by the department.
(2) Beginning with management agreements that are entered into
or renewed after the effective date of the amendatory act that
added this subsection, if the board of directors of a public school
academy enters into or renews a management agreement with an
educational management organization to carry out the operations of
the public school academy, both of the following apply:
(a) The management agreement shall not include the provision
of services that require competitive bidding under section 1267 or
the procurement of supplies, materials, and equipment that require
competitive bidding under section 1274.
(b) The public school academy shall not also enter into an
agreement with that educational management organization for
material and labor described in section 1267 or for the procurement
of supplies, materials, and equipment described in section 1274
without first obtaining competitive bids as prescribed under those
sections, as applicable.
(3) (2)
As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with a public school academy.
(b) "Entity" means a partnership, nonprofit or business
corporation, or any other association, corporation, trust, or other
legal entity.
(c) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to a public school academy.
(d) "School fiscal year" means the period that begins July 1
and ends June 30.
Sec. 504a. (1) In addition to other powers set forth in this
part, a public school academy may take action to carry out the
purposes for which it was incorporated under this part, including,
but not limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to subsection (2) and section 503b, to acquire,
hold, and own in its own name real and personal property, or
interests in real or personal property, for educational purposes by
purchase, gift, grant, devise, bequest, lease, sublease,
installment purchase agreement, land contract, option, or
condemnation, and subject to mortgages, security interests, or
other liens; and to sell or convey the property as the interests of
the public school academy require.
(c) To receive, disburse, and pledge funds for lawful
purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the public school academy. However, a public school
academy shall not enter into a management agreement with an
educational management organization that operates on a for-profit
basis.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the public school academy in the furtherance of its public
purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by a public school academy
is not subject to section 1351a(4) or section 1351(2) to (4). Bonds
issued under this section shall be full faith and credit
obligations of the public school academy, pledging the general
funds or any other money available for such a purpose. Bonds issued
under this section are subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) If a public school academy leases real property, the board
of directors shall not lease real property from an educational
management organization with which the public school academy has a
management agreement as described in section 503c or from a real
estate holding company that is affiliated with that educational
management organization.
(3) As used in this section, "educational management
organization" and "management agreement" mean those terms as
defined in section 503c.
Sec. 522. (1) An urban high school academy shall be organized
and administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. An urban high school academy corporation shall be
organized under the nonprofit corporation act, 1982 PA 162, MCL
450.2101 to 450.3192, except that an urban high school academy
corporation is not required to comply with sections 170 to 177 of
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified
under the state or federal constitution, an urban high school
academy shall not be organized by a church or other religious
organization and shall not have any organizational or contractual
affiliation with or constitute a church or other religious
organization.
(2)
The Subject to subsections
(5) to (7), the governing board
of a state public university may act as an authorizing body to
issue a contract for the organization and operation of an urban
high school academy under this part.
(3) A contract issued under this part shall be issued for an
initial term of 10 years. If the urban high school academy meets
the educational goals set forth in the contract and operates in
substantial compliance with this part, the authorizing body shall
automatically renew the contract for a subsequent 10-year term.
(4) To obtain a contract to organize and operate 1 or more
urban high school academies, an entity may apply to an authorizing
body described in subsection (2). The contract shall be issued to
an urban high school academy corporation designated by the entity
applying for the contract. The application shall include at least
all of the following:
(a) Name of the entity applying for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 528, a list of the proposed members of the board of
directors of the urban high school academy and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed urban high school academy to which
the contract will be issued.
(ii) The purposes for the urban high school academy
corporation. This language shall provide that the urban high school
academy is incorporated pursuant to this part and that the urban
high school academy corporation is a governmental entity and
political subdivision of this state.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the urban high school
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the urban high school academy.
(ii) A copy of the educational goals of the urban high school
academy and the curricula to be offered and methods of pupil
assessment to be used by the urban high school academy. The
educational goals shall include demonstrated improved pupil
academic achievement for all groups of pupils. To the extent
applicable, the progress of the pupils in the urban high school
academy shall be assessed using at least a Michigan education
assessment program (MEAP) test or the Michigan merit examination
under section 1279g, as applicable.
(iii) The admission policy and criteria to be maintained by the
urban high school academy. The admission policy and criteria shall
comply with section 524. This part of the application also shall
include a description of how the applicant will provide to the
general public adequate notice that an urban high school academy is
being created and adequate information on the admission policy,
criteria, and process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(f) Descriptions of staff responsibilities and of the urban
high school academy's governance structure.
(g) A description of and address for the proposed building or
buildings in which the urban high school academy will be located,
and a financial commitment by the entity applying for the contract
to construct or renovate the building or buildings that will be
occupied by the urban high school academy that is issued the
contract.
(h) The certificate of need issued by the state board under
subsection (5).
(5) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a
contract to organize and operate an urban high school academy under
this part unless the application is accompanied by a certificate of
need issued by the state board under this subsection. The state
board shall promulgate rules to develop and implement a process for
issuing a certificate of need for a new urban high school academy.
The standards for issuing a certificate of need shall include, but
are not limited to, all of the following:
(a) The resources available for the proposed urban high school
academy.
(b) The population to be served by the proposed urban high
school academy.
(c) The educational goals to be achieved by the proposed urban
high school academy.
(d) The applicant's track record, if any, in organizing urban
high school academies or other public schools.
(e) The graduation rate of a school district in which the
proposed urban high school academy is proposed to be located.
(f) The population of a county in which the proposed urban
high school academy is proposed to be located.
(g) The number of schools in the proximity of a proposed
location of the proposed urban high school academy that are on the
list under section 1280c(1) of the public schools in this state
that the department has determined to be among the lowest achieving
5% of all public schools in this state.
(h) The number of pupils on waiting lists of urban high school
academies in the proximity of a proposed location of the proposed
urban high school academy.
(i) The number of public school options already available in
the proximity of a proposed location of the proposed urban high
school academy.
(j) The impact of the issuance of the contract on existing
public schools in the proximity of a proposed location of the
proposed urban high school academy.
(6) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a new
contract to organize and operate an urban high school academy under
this part to an existing public school academy that has had its
contract with its previous authorizing body revoked, terminated, or
not renewed. The board of directors of a public school academy
described in this subsection shall not apply for a contract that
would violate this subsection.
(7) Beginning on the effective date of the amendatory act that
added this subsection, a state public university shall not issue a
new contract to organize and operate a new urban high school
academy unless each of the existing public school academies that
are operating under a contract from that state public university
have demonstrated pupil achievement as measured by applicable state
assessments at a level that is at least 20% higher than the school
district in which the existing public school academy is located.
(8) (5)
If a particular state public
university issues a
contract that allows an urban high school academy to operate the
same configuration of grades at more than 1 site, as provided in
section 524(1), each of those sites shall be under the direction of
the board of directors that is a party to the contract.
(9) (6)
If the superintendent of public
instruction finds that
an authorizing body is not engaging in appropriate continuing
oversight of 1 or more urban high school academies operating under
a contract issued by the authorizing body, the superintendent of
public instruction may suspend the power of the authorizing body to
issue new contracts to organize and operate urban high school
academies. A contract issued by the authorizing body during the
suspension is void. A contract issued by the authorizing body
before the suspension is not affected by the suspension. In
evaluating whether an authorizing body is engaging in appropriate
continuing oversight of 1 or more urban high school academies
operating under a contract issued by the authorizing body, the
superintendent of public instruction shall take into account all of
the following:
(a) The academic performance of the urban high school
academies authorized by the authorizing body, including at least
the ranking of those schools on the department's "top-to-bottom"
list and the measures already implemented at the school to address
student improvement.
(b) New or reauthorized contracts that are submitted by the
authorizing body to the superintendent of public instruction with
more than 2 deficiencies.
(c) Transparency demonstrated by the urban high school
academies authorized by the authorizing body, including at least
the number of those schools' websites that have an inactive or
outdated "transparency mitten" or do not have an updated budget.
(d) Fiscal responsibility demonstrated by the urban high
school academies authorized by the authorizing body, including at
least the number of late audits, audit findings, and deficits among
those schools.
(e) Assurances and verifications, as defined by the
superintendent of public instruction.
(10) (7)
An authorizing body shall not
charge a fee, or
require reimbursement of expenses, for considering an application
for a contract, for issuing a contract, or for providing oversight
of a contract for an urban high school academy in an amount that
exceeds
a combined total of 3% 1% of the total state school aid
received by the urban high school academy in the school year in
which the fees or expenses are charged. All of the following apply
to this fee:
(a) An authorizing body may use this fee only for the
following purposes:
(i) Considering applications and issuing or administering
contracts.
(ii) Compliance monitoring and oversight of urban high school
academies.
(iii) Training for urban high school academy applicants,
administrators, and boards of directors.
(iv) Technical assistance to urban high school academies.
(v) Academic support to urban high school academies or to
pupils or graduates of urban high school academies.
(vi) Evaluation of urban high school academy performance.
(vii) Training of teachers, including supervision of teacher
interns.
(viii) Other purposes that assist the urban high school
academies or traditional public schools in achieving improved
academic performance.
(b) An authorizing body may provide other services for an
urban high school academy and charge a fee for those services, but
shall not require such an arrangement as a condition to issuing the
contract authorizing the urban high school academy.
(11) (8)
An urban high school academy shall
be presumed to be
legally organized if it has exercised the franchises and privileges
of an urban high school academy for at least 2 years.
Sec. 523. (1) An authorizing body is not required to issue a
contract to any entity. Urban high school academy contracts shall
be issued on a competitive basis taking into consideration the
resources available for the proposed urban high school academy, the
population to be served by the proposed urban high school academy,
and
the educational goals to be
achieved by the proposed urban high
school academy, and the level of support for the proposed urban
high school academy in the community in which it is to be located.
Before issuing a contract for a proposed urban high school academy,
the authorizing body shall hold at least 1 public meeting in the
community in which the proposed urban high school academy is to be
located in order to gauge this level of support. In evaluating if
an applicant is qualified, the authorizing body shall examine the
proposed performance standards, proposed academic program,
financial viability of the applicant, and the ability of the
proposed board of directors to meet the contract goals and
objectives. An authorizing body shall give priority to applicants
that demonstrate all of the following:
(a) The proposed school will operate at least all of grades 9
through 12 within 5 years after beginning operation.
(b) The proposed school will occupy a building or buildings
that are newly constructed or renovated after January 1, 2003.
(c) The proposed school has a stated goal of increasing high
school graduation rates.
(d) The proposed school has received commitments for financial
and educational support from the entity applying for the contract.
(e) The entity that submits the application for a contract has
net assets of at least $50,000,000.00.
(2) A contract issued to organize and administer an urban high
school academy shall contain at least all of the following:
(a) The educational goals the urban high school academy is to
achieve and the methods by which it will be held accountable. The
educational goals shall include demonstrated improved pupil
academic achievement for all groups of pupils. To the extent
applicable, the pupil performance of an urban high school academy
shall be assessed using at least a Michigan education assessment
program (MEAP) test or the Michigan merit examination developed
under section 1279g, as applicable.
(b) A description of the method to be used to monitor the
urban high school academy's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract. An authorizing body may approve
amendment of the contract with respect to any provision contained
in the contract.
(d) A certification, signed by an authorized member of the
urban high school academy board of directors, that the urban high
school academy will comply with the contract and all applicable
law.
(e) Procedures for revoking the contract and grounds for
revoking the contract.
(f) A description of and address for the proposed building or
buildings in which the urban high school academy will be located.
(g) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by an
independent certified public accountant in accordance with
generally accepted governmental auditing principles.
(h) A requirement that the board of directors shall ensure
compliance with the requirements of 1968 PA 317, MCL 15.321 to
15.330.
(i) A requirement that the board of directors shall prohibit
specifically identified family relationships between members of the
board of directors, individuals who have an ownership interest in
or who are officers or employees of an educational management
company involved in the operation of the urban high school academy,
and employees of the urban high school academy. The contract shall
identify the specific prohibited relationships consistent with
applicable law.
(j) A requirement that the board of directors of the urban
high school academy shall make information concerning its operation
and management available to the public and to the authorizing body
in the same manner as is required by state law for school
districts.
(k) A requirement that the board of directors of the urban
high school academy shall collect, maintain, and make available to
the public and the authorizing body, in accordance with applicable
law and the contract, at least all of the following information
concerning the operation and management of the urban high school
academy:
(i) A copy of the contract issued by the authorizing body for
the urban high school academy.
(ii) A list of currently serving members of the board of
directors of the urban high school academy, including name,
address, and term of office; copies of policies approved by the
board of directors; board meeting agendas and minutes; copy of the
budget approved by the board of directors and of any amendments to
the budget; and copies of bills paid for amounts of $10,000.00 or
more as they were submitted to the board of directors.
(iii) Quarterly financial reports submitted to the authorizing
body.
(iv) A current list of teachers working at the urban high
school academy that includes their individual salaries as submitted
to the registry of educational personnel; copies of the teaching
certificates or permits of current teaching staff; and evidence of
compliance with the criminal background and records checks and
unprofessional conduct check required under sections 1230, 1230a,
and 1230b for all teachers and administrators working at the urban
high school academy.
(v) Curriculum documents and materials given to the
authorizing body.
(vi) Proof of insurance as required by the contract.
(vii) Copies of facility leases or deeds, or both, and of any
equipment leases.
(viii) Copies of any management contracts or services contracts
approved by the board of directors.
(ix) All health and safety reports and certificates, including
those relating to fire safety, environmental matters, asbestos
inspection, boiler inspection, and food service.
(x) Any management letters issued as part of the annual
financial audit under subdivision (g).
(xi) Any other information specifically required under this
act.
(l) A requirement that the authorizing body must review and may
disapprove any agreement between the board of directors and an
educational management company before the agreement is final and
valid. An authorizing body may disapprove an agreement described in
this subdivision only if the agreement is contrary to the contract
or applicable law.
(m) A requirement that the board of directors shall
demonstrate all of the following to the satisfaction of the
authorizing body with regard to its pupil admission process:
(i) That the urban high school academy has made a reasonable
effort to advertise its enrollment openings.
(ii) That the urban high school academy has made the following
additional efforts to recruit pupils who are eligible for special
education programs and services to apply for admission:
(A) Reasonable efforts to advertise all enrollment openings to
organizations and media that regularly serve and advocate for
individuals with disabilities within the boundaries of the
intermediate school district in which the urban high school academy
is located.
(B) Inclusion in all pupil recruitment materials of a
statement that appropriate special education services will be made
available to pupils attending the school as required by law.
(iii) That the open enrollment period for the urban high school
academy is for a duration of at least 2 weeks and that the
enrollment times include some evening and weekend times.
(n) A requirement that the board of directors shall prohibit
any individual from being employed by the urban high school academy
in more than 1 full-time position and simultaneously being
compensated at a full-time rate for each of those positions.
(o) A requirement that, if requested, the board of directors
shall report to the authorizing body the total compensation for
each individual working at the urban high school academy.
(p) The term of the contract and a description of the process
and standards for renewal of the contract at the end of the term.
The term of the contract shall not exceed 3 years. The standards
for renewal shall include increases in academic achievement for all
groups of pupils as measured by assessments and other objective
criteria as the most important factor in the decision of whether or
not to renew the contract.
(3) An urban high school academy shall comply with all
applicable law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(e) 1978 PA 566, MCL 15.181 to 15.185.
(f) 1968 PA 317, MCL 15.321 to 15.330.
(g) The uniform budgeting and accounting act, 1968 PA 2, MCL
141.421 to 141.440a.
(h) The revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(i)
The federal no child left behind act of 2001, Public Law
107-110, 115 Stat. 1425.
(j) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, 1274, and
1280.
(k) Laws concerning participation in state assessments, data
collection systems, state level student growth models, state
accountability and accreditation systems, and other public
comparative data collection required for public schools.
(4) An urban high school academy and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for any acts or omissions in authorizing or oversight of an urban
high school academy if the authorizing body or the person acted or
reasonably believed he or she acted within the authorizing body's
or the person's scope of authority.
(5) An urban high school academy is exempt from all taxation
on
its earnings and property. Unless the property is already fully
exempt
from real and personal property taxes under the general
property
tax act, 1893 PA 206, MCL 211.1 to 211.155, property
occupied
by an urban high school academy and used exclusively for
educational
purposes is exempt from real and personal property
taxes
levied for school operating purposes under section 1211, to
the
extent exempted under that section, and from real and personal
property
taxes levied under the state education tax act, 1993 PA
331,
MCL 211.901 to 211.906. Instruments
of conveyance to or from
an urban high school academy are exempt from all taxation,
including taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. An
urban high school academy may not levy ad valorem property taxes or
any other tax for any purpose.
(6) An urban high school academy may acquire by purchase,
gift, devise, lease, sublease, installment purchase agreement, land
contract, option, or any other means, hold, and own in its own name
buildings and other property for school purposes, and interests
therein, and other real and personal property, including, but not
limited to, interests in property subject to mortgages, security
interests, or other liens, necessary or convenient to fulfill its
purposes. For the purposes of condemnation, an urban high school
academy may proceed under the uniform condemnation procedures act,
1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of that
act, MCL 213.56 to 213.59, or other applicable statutes, but only
with the express, written permission of the authorizing body in
each instance of condemnation and only after just compensation has
been determined and paid.
Sec.
523c. (1) Beginning with management agreements described
in
this section that are entered into or renewed after the
effective
date of this section, if If the board of directors of an
urban high school academy enters into or renews a management
agreement with an educational management organization to carry out
the
operations of the urban high school academy, both all of
the
following apply:
(a) The board of directors shall post a copy of the management
agreement on the urban high school academy's website, with a link
on the urban high school academy's website homepage, in a form and
manner prescribed by the department.
(b) (a)
The management agreement shall
require the educational
management organization to provide to the board of directors at
least annually all of the same information that a school district
is required to disclose under section 18(2) of the state school aid
act of 1979, MCL 388.1618, for the most recent school fiscal year
for which that information is available.
(c) (b)
Within 30 15 days
after receiving the information
under
subdivision (a), (b), the board of directors shall make all
of
the information it receives under subdivision (a) (b) available
through a link on the urban high school academy's website homepage,
in a form and manner prescribed by the department.
(2) Beginning with management agreements that are entered into
or renewed after the effective date of the amendatory act that
added this subsection, if the board of directors of an urban high
school academy enters into or renews a management agreement with an
educational management organization to carry out the operations of
the public school academy, both of the following apply:
(a) The management agreement shall not include the provision
of services that require competitive bidding under section 1267 or
the procurement of supplies, materials, and equipment that require
competitive bidding under section 1274.
(b) The urban high school academy shall not also enter into an
agreement with the educational management organization for material
and labor described in section 1267 or for the procurement of
supplies, materials, and equipment described in section 1274
without first obtaining competitive bids as prescribed under those
sections, as applicable.
(3) (2)
As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with an urban high school
academy.
(b) "Entity" means a partnership, nonprofit or business
corporation, or any other association, corporation, trust, or other
legal entity.
(c) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to an urban high school academy.
(d) "School fiscal year" means the period that begins July 1
and ends June 30.
Sec. 525. (1) In addition to other powers set forth in this
part, an urban high school academy may take action to carry out the
purposes for which it was incorporated under this part, including,
but not limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to subsection (2) and section 523a, to acquire,
hold, and own in its own name real and personal property, or
interests in real or personal property, for educational purposes by
purchase, gift, grant, devise, bequest, lease, sublease,
installment purchase agreement, land contract, option, or
condemnation, and subject to mortgages, security interests, or
other liens; and to sell or convey the property as the interests of
the urban high school academy require.
(c) To receive, disburse, and pledge funds for lawful
purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the urban high school academy. However, an urban
high school academy shall not enter into a management agreement
with an educational management organization that operates on a for-
profit basis.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the urban high school academy in the furtherance of its public
purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by an urban high school
academy are not subject to section 1351a(4) or section 1351(2) to
(4). Bonds issued under this section shall be full faith and credit
obligations of the urban high school academy, pledging the general
funds or any other money available for such a purpose. Bonds issued
under this section are subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) If an urban high school academy leases real property, the
board of directors shall not lease real property from an
educational management organization with which the urban high
school academy has a management agreement as described in section
523c or from a real estate holding company that is affiliated with
that educational management organization.
(3) As used in this section, "educational management
organization" and "management agreement" mean those terms as
defined in section 523c.
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, quorum requirements, 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 all of the
following:
(i) A requirement that each member of the board of directors
must be a citizen of the United States.
(ii) A process and standards for removal of a member of the
board of directors. The resolution shall provide that a member of
the board of directors may be removed only for gross neglect of
duty or for corrupt conduct in office, or for any other
misfeasance, malfeasance, or nonfeasance in office.
(iii) A limit on the term of service of a board member to a term
of not more than 5 consecutive years, with at least a 10-year
period before a member may serve an additional term.
(iv) A requirement of at least 7 members on a board of
directors, with at least 2 members being parents of pupils enrolled
in the urban high school academy.
(v) A requirement of at least 5 members, including the
president of the board of directors, for a quorum, except in the
case of a vacancy.
(vi) A requirement that vacancies on the board of directors
must be filled within 90 days.
(vii) An attendance requirement that provides for both of the
following:
(A) During any 12-month period, a board member must attend at
least 85% of all board functions, including, but not limited to,
monthly board meetings, scheduled board events, and special and
emergency board meetings.
(B) Failure to meet this attendance requirement constitutes a
vacating of the office of board member.
(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.
(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
superintendent of public instruction 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,
as defined for the purposes of the federal incentive grant program
created under sections 14005 and 14006 of title XIV of the American
recovery and reinvestment act of 2009, Public Law 111-5, is in year
2 of restructuring sanctions under the no child left behind act of
2001, Public Law 107-110, not to include the individualized
education plan subgroup, and is not currently undergoing
reconstitution under this section, the superintendent of public
instruction shall notify the urban high school academy's
authorizing body. If an authorizing body receives notice from the
superintendent of public instruction 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. If the urban high school academy operates at only 1
site, and the authorizing body receives notice from the
superintendent of public instruction 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) 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.
(7) Except as otherwise provided in subsection (5), 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.
(8) 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.
(9) If an authorizing body revokes a contract issued under
this part, the authorizing body may issue a new contract within the
1-year period following the revocation without the new contract
counting toward the maximum number of contracts that may be issued
under this part.
(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 bureau of commercial services director of 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.
552. (1) An Subject to
subsections (8) to (10), an
authorizing body may issue contracts under this subsection to
organize and operate a school of excellence. All of the following
apply to the issuance of a contract by an authorizing body under
this subsection:
(a) The issuance of the contract must be approved by the
superintendent of public instruction. The superintendent of public
instruction shall approve issuance of a contract if he or she
determines that the proposed school of excellence is modeled after
a high-performing school or program.
(b) The first 5 contracts issued by all authorizing bodies
under this subsection shall be for schools of excellence that offer
1 or more of high school grades 9 to 12, or any combination of
those grades, as specified in the contract.
(c) A school of excellence authorized under this subsection
shall not be located in a school district that has a graduation
rate of over 75%, on average, for the most recent 3 school years
for which the data are available, as determined by the department.
(2) Subject to the limitations in this subsection, and
subsection
(14), subject to subsections
(8) to (10), an authorizing
body may issue contracts under this subsection for 1 or more
schools
of excellence that are cyber schools. Until December 31,
2013,
the combined total number of contracts that may be issued by
all
statewide authorizing bodies under this subsection for schools
of
excellence that are cyber schools shall not exceed 5. Until
December
31, 2014, the combined total number of contracts that may
be
issued by all statewide authorizing bodies under this subsection
for
schools of excellence that are cyber schools shall not exceed
10.
After December 31, 2014, the The
combined total number of
contracts issued by all statewide authorizing bodies under this
subsection for schools of excellence that are cyber schools shall
not
exceed 15. The board of a school district, an intermediate
school
board, the board of a community college that is not a
statewide
authorizing body, or 2 or more public agencies acting
jointly
as described in subsection (6)(e) An
authorizing body may
not act as the authorizing body for more than 1 school of
excellence that is a cyber school. An authorizing body shall not
issue a contract for a school of excellence that is a cyber school
unless the school of excellence that is a cyber school meets all of
the following requirements:
(a) Is available for enrollment to all pupils in this state.
(b) Offers some configuration of or all of grades K to 12.
(c) The entity applying for the school of excellence that is a
cyber school demonstrates experience in delivering a quality
education program that improves pupil academic achievement. In
determining whether this requirement is met, an authorizing body
shall refer to the standards for quality online learning
established by the national association of charter school
authorizers or other similar nationally recognized standards for
quality online learning.
(d) The enrollment in the school of excellence that is a cyber
school is limited to not more than 2,500 pupils in membership for
the first school year of operation of the school of excellence that
is a cyber school, not more than 5,000 pupils in membership for the
second school year of operation of the school of excellence that is
a cyber school, and not more than 10,000 pupils in membership for
the third and subsequent school years of operation of the school of
excellence that is a cyber school. As used in this subdivision,
"membership" means that term as defined in section 6 of the state
school aid act of 1979, MCL 388.1606.
(e) The school of excellence that is a cyber school offers
each pupil's family a computer and subsidizes the cost of internet
access.
(3) For a public school academy operating under part 6a that
meets the requirements of subsection (4), with the approval of its
authorizing body, the board of directors of the public school
academy may adopt a resolution choosing to convert the public
school academy to a school of excellence under this part. If the
board of directors of a public school academy that meets the
requirements of subsection (4) is issued a contract as a school of
excellence under this subsection, all the following apply:
(a) The public school academy shall cease to operate as a
public school academy under part 6a and shall operate as a school
of excellence upon the issuance of a contract or at another time as
determined by the authorizing body.
(b) The public school academy shall be considered to be a
school of excellence for all purposes upon the issuance of a
contract or at another time as determined by the authorizing body,
but shall retain its corporate identity.
(c) The conversion of a public school academy under part 6a to
a school of excellence operating under this part shall not impair
any agreement, mortgage, loan, bond, note or other instrument of
indebtedness, or any other agreement entered into by a public
school academy while it was operating under part 6a.
(d) The contract issued to the public school academy under
part 6a shall automatically terminate upon the issuance of a
contract or at another time as determined by the authorizing body.
(4) Subsection (3) applies to a public school academy that is
determined by the department to meet all of the following, as
applicable:
(a) If the public school academy operates only some or all of
grades K to 8, meets at least 1 of the following:
(i) On average over a 3-year period, at least 90% of the pupils
enrolled in the public school academy achieved a score of
proficient or better on the Michigan education assessment program
mathematics and reading tests or successor state assessment
program.
(ii) On average over a 3-year period, at least 70% of the
pupils enrolled in the public school academy achieved a score of
proficient or better on the Michigan education assessment program
mathematics and reading tests or successor state assessment program
and at least 50% of the pupils enrolled in the public school
academy met the income eligibility criteria for the federal free or
reduced-price lunch program, as determined under the Richard B.
Russell national school lunch act, 42 USC 1751 to 1769i, and
reported to the department.
(b) If the public school academy operates grades 9 to 12, at
least 80% of the school's pupils graduate from high school or are
determined by the department to be on track to graduate from high
school, the school has at least 80% average attendance, and the
school has at least an 80% postsecondary enrollment rate.
(5) A school of excellence shall be organized and administered
under the direction of a board of directors in accordance with this
part and with bylaws adopted by the board of directors. A school of
excellence shall be organized under the nonprofit corporation act,
1982 PA 162, MCL 450.2101 to 450.3192, except that a school of
excellence is not required to comply with sections 170 to 177 of
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified
under the state or federal constitution, a school of excellence
shall not be organized by a church or other religious organization
and shall not have any organizational or contractual affiliation
with or constitute a church or other religious organization.
(6)
Any Subject to subsections
(8) to (10), any of the
following may act as an authorizing body to issue a contract to
organize and operate 1 or more schools of excellence under this
part:
(a) The board of a school district that operates grades K to
12. However, except as otherwise provided in this subdivision, the
board of a school district shall not issue a contract for a school
of excellence to operate outside the school district's boundaries,
and a school of excellence authorized by the board of a school
district shall not operate outside that school district's
boundaries. If the board of a school district issues a contract for
a school of excellence that is a cyber school, the contract may
authorize the school of excellence that is a cyber school to
operate outside that school district's boundaries. For the purposes
of this section, "school district" expressly does not include the
state school reform/redesign school district created under section
1280c, the education achievement authority, or any other statewide
entity.
(b) An intermediate school board. However, except as otherwise
provided in this subdivision, the board of an intermediate school
district shall not issue a contract for a school of excellence to
operate outside the intermediate school district's boundaries, and
a school of excellence authorized by the board of an intermediate
school district shall not operate outside that intermediate school
district's boundaries. If the board of an intermediate school
district issues a contract for a school of excellence that is a
cyber school, the contract may authorize the school of excellence
that is a cyber school to operate outside that intermediate school
district's boundaries.
(c) The board of a community college. Except as otherwise
provided in this subdivision, the board of a community college
shall not issue a contract for a school of excellence to operate
outside the boundaries of the community college district, and a
school of excellence authorized by the board of a community college
shall not operate outside the boundaries of the community college
district. If the board of a community college issues a contract for
a school of excellence that is a cyber school, the contract may
authorize the school of excellence that is a cyber school to
operate outside the boundaries of the community college district.
The board of a community college also may issue a contract for not
more than 1 school of excellence to operate on the grounds of an
active or closed federal military installation located outside the
boundaries of the community college district, or may operate a
school of excellence itself on the grounds of such a federal
military installation, if the federal military installation is not
located within the boundaries of any community college district and
the community college has previously offered courses on the grounds
of the federal military installation for at least 10 years.
(d) The governing board of a state public university.
(e)
Two or more of the public agencies described in
subdivisions
(a) to (d) exercising power, privilege, or authority
jointly
pursuant to an interlocal agreement under the urban
cooperation
act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
(7) To obtain a contract to organize and operate 1 or more
schools of excellence, 1 or more persons or an entity may apply to
an authorizing body described in this section. The application
shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 553(4), a list of the proposed members of the board
of directors of the school of excellence and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed school of excellence.
(ii) The purposes for the school of excellence corporation.
This language shall provide that the school of excellence is
incorporated pursuant to this part and that the school of
excellence is a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the school of excellence.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the school of excellence.
(ii) A copy of the educational goals of the school of
excellence and the curricula to be offered and methods of pupil
assessment to be used by the school of excellence. The educational
goals shall include demonstrated improved pupil academic
achievement for all groups of pupils. To the extent applicable, the
progress of the pupils in the school of excellence shall be
assessed using at least a Michigan education assessment program
(MEAP) test or the Michigan merit examination under section 1279g,
as applicable.
(iii) The admission policy and criteria to be maintained by the
school of excellence. The admission policy and criteria shall
comply with section 556. This part of the application also shall
include a description of how the applicant will provide to the
general public adequate notice that a school of excellence is being
created and adequate information on the admission policy, criteria,
and process.
(iv) Except for a school of excellence that is a cyber school,
the school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(f) Descriptions of staff responsibilities and of the school
of excellence governance structure.
(g) For an application to the board of a school district, an
intermediate school board, or board of a community college,
identification of the school district and intermediate school
district in which the school of excellence will be located.
(h) An agreement that the school of excellence will comply
with the provisions of this part and, subject to the provisions of
this part, with all other state law applicable to public bodies and
with federal law applicable to public bodies or school districts.
(i) A description of and address for the proposed physical
plant in which the school of excellence will be located. An
applicant may request the authorizing body to issue a contract
allowing the board of directors of the school of excellence to
operate the same configuration of age or grade levels at more than
1 site.
(j) The certificate of need issued by the state board under
subsection (8).
(8) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a
contract to organize and operate a school of excellence under this
part unless the application is accompanied by a certificate of need
issued by the state board under this subsection. The state board
shall promulgate rules to develop and implement a process for
issuing a certificate of need for a new school of excellence. The
standards for issuing a certificate of need shall include, but are
not limited to, all of the following:
(a) The resources available for the proposed school of
excellence.
(b) The population to be served by the proposed school of
excellence.
(c) The educational goals to be achieved by the proposed
school of excellence.
(d) The applicant's track record, if any, in organizing
schools of excellence or other public schools.
(e) The graduation rate of a school district in which the
proposed school of excellence is proposed to be located.
(f) The population of a county in which the proposed school of
excellence is proposed to be located.
(g) The number of public schools in the proximity of a
proposed location of the proposed school of excellence that are on
the list under section 1280c(1) of the public schools in this state
that the department has determined to be among the lowest achieving
5% of all public schools in this state.
(h) The number of pupils on waiting lists of schools of
excellence and public school academies in the proximity of a
proposed location of the proposed school of excellence.
(i) The number of public school options already available in
the proximity of a proposed location of the proposed school of
excellence.
(j) The impact of the issuance of the contract on existing
public schools in the proximity of a proposed location of the
proposed school of excellence.
(9) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a new
contract to organize and operate a school of excellence under this
part to an existing public school academy that has had its contract
with its previous authorizing body revoked, terminated, or not
renewed. The board of directors of a public school academy
described in this subsection shall not apply for a contract that
would violate this subsection.
(10) Beginning on the effective date of the amendatory act
that added this subsection, an authorizing body shall not issue a
new contract to organize and operate a new school of excellence
unless each of the public school academies that are operating under
a contract from that authorizing body have demonstrated pupil
achievement as measured by applicable state assessments at a level
that is at least 20% higher than the school district in which the
existing public school academy is located.
(11) (8)
An authorizing body shall oversee,
or shall contract
with an intermediate school district, community college, or state
public university to oversee, each school of excellence operating
under a contract issued by the authorizing body. The authorizing
body is responsible for overseeing compliance by the board of
directors with the contract and all applicable law. This subsection
does not relieve any other government entity of its enforcement or
supervisory responsibility.
(12) (9)
If the superintendent of public
instruction finds
that an authorizing body is not engaging in appropriate continuing
oversight of 1 or more schools of excellence operating under a
contract issued by the authorizing body, the superintendent of
public instruction may suspend the power of the authorizing body to
issue new contracts to organize and operate schools of excellence.
A contract issued by the authorizing body during the suspension is
void. A contract issued by the authorizing body before the
suspension is not affected by the suspension. In evaluating whether
an authorizing body is engaging in appropriate continuing oversight
of 1 or more schools of excellence operating under a contract
issued by the authorizing body, the superintendent of public
instruction shall take into account all of the following:
(a) The academic performance of the schools of excellence and
other public school academies authorized by the authorizing body,
including at least the ranking of those schools on the department's
"top-to-bottom" list and the measures already implemented at the
school to address student improvement.
(b) New or reauthorized contracts that are submitted by the
authorizing body to the superintendent of public instruction with
more than 2 deficiencies.
(c) Transparency demonstrated by the schools of excellence and
other public school academies authorized by the authorizing body,
including at least the number of those schools' websites that have
an inactive or outdated "transparency mitten" or do not have an
updated budget.
(d) Fiscal responsibility demonstrated by the schools of
excellence and other public school academies authorized by the
authorizing body, including at least the number of late audits,
audit findings, and deficits among those schools.
(e) Assurances and verifications, as defined by the
superintendent of public instruction.
(13) (10)
An authorizing body shall not
charge a fee, or
require reimbursement of expenses, for considering an application
for a contract, for issuing a contract, or for providing oversight
of a contract for a school of excellence in an amount that exceeds
a
combined total of 3% 1% of the total state school aid received by
the school of excellence in the school year in which the fees or
expenses are charged. The authorizing body may provide other
services for a school of excellence and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the school of excellence.
(14) (11)
A school of excellence shall be
presumed to be
legally organized if it has exercised the franchises and privileges
of a public school academy for at least 2 years.
(15) (12)
A member of the board of directors
of a school of
excellence is a public officer and shall, before entering upon the
duties of the office, take the constitutional oath of office for
public officers under section 1 of article XI of the state
constitution of 1963.
(16) (13)
A school of excellence that is a
cyber school may
make available to other public schools for purchase any of the
course offerings that the cyber school offers to its own pupils.
(14)
If the department determines that the combined total
statewide
final audited membership for all pupils in membership in
schools
of excellence that are cyber schools for the 2012-2013
state
fiscal year exceeds a number equal to 1% of the combined
total
statewide final audited membership for all pupils in
membership
in public schools for the 2011-2012 state fiscal year,
then
all of the following apply:
(a)
An authorizing body may not issue a new contract for a new
school
of excellence that is a cyber school to begin operations in
the
2013-2014 school year.
(b)
A school of excellence that is a cyber school may not
enroll
any new pupils in the school of excellence that is a cyber
school
in the 2013-2014 school year.
(17) (15)
Beginning July 1, 2013, if If
the department
determines that the combined total statewide final audited
membership for all pupils in membership in schools of excellence
that are cyber schools for a state fiscal year exceeds a number
equal to 2% of the combined total statewide final audited
membership for all pupils in membership in public schools for the
2011-2012 state fiscal year, then all of the following apply:
(a) Subject to subdivision (c), an authorizing body may not
issue a new contract for a new school of excellence that is a cyber
school to begin operations in a school year that begins after that
determination is made.
(b) Subject to subdivision (c), a school of excellence that is
a cyber school may not enroll any new pupils in the school of
excellence that is a cyber school in a school year that begins
after that determination is made.
(c) If the department determines that the combined total
statewide final audited membership for all pupils in membership in
schools of excellence that are cyber schools for a state fiscal
year does not exceed a number equal to 2% of the combined total
statewide final audited membership for all pupils in membership in
public schools for the 2011-2012 state fiscal year, then
subdivisions (a) and (b) do not apply for a school year that begins
after that determination is made unless the department makes a new
determination that the membership limits under this subsection have
been exceeded.
(18) (16)
For the purposes of subsections
(14) and (15), not
later
than July 1, 2012, and subsection
(17), by not later than
July
1 of each year, thereafter, the department shall determine
the
percentage of the combined total statewide final audited membership
for all pupils in membership in public schools that are pupils in
membership in schools of excellence that are cyber schools for the
state fiscal year that includes that July 1.
(19) (17)
As used in this section:
(a) "Membership" means that term as defined in section 6 of
the state school aid act of 1979, MCL 388.1606.
(b) "Statewide authorizing body" means the governing board of
a state public university or the board of a federal tribally
controlled community college that is recognized under the tribally
controlled colleges and universities assistance act of 1978, 25 USC
1801 to 1852, and is determined by the department to meet the
requirements for accreditation by a recognized regional accrediting
body.
(18)
Not later than October 1, 2012, If a district, an
intermediate
school district, a public school academy, or the
education
achievement system offers online learning, the board or
board
of directors of the district, intermediate school district,
or
public school academy, or the education achievement system,
shall
submit to the department a report that details the per-pupil
costs
of operating the online learning. The report shall include,
on
a per-pupil basis, at least all of the following costs:
(a)
Textbooks, instructional materials, and supplies,
including
electronic instructional material.
(b)
Computer and other electronic equipment, including
internet
and telephone access.
(c)
Salaries and benefits for the online learning employees.
(d)
Purchased courses and curricula.
(e)
Fees associated with oversight and regulation.
(f)
Travel costs associated with school activities and
testing.
(g)
Facilities costs.
(h)
Costs associated with special education.
(19)
Not later than December 31, 2012, the department shall
issue
a report to the legislature including the following:
(a)
A review of the data submitted under subsection (14).
(b)
A comparison with costs of substantially similar programs
in
other states and relevant national research on the costs of
online
learning.
(c)
Any conclusions concerning factors or characteristics of
online
learning programs that make a difference in the costs of
operating
the programs.
(20) The board of directors of a school of excellence that is
a cyber school, or the board of a school district, intermediate
school district, or public school academy that operates an online
or other distance learning program, shall submit a monthly report
to the department, in the form and manner prescribed by the
department, that reports the number of pupils enrolled in the
school of excellence that is a cyber school, or in the online or
other distance learning program, during the immediately preceding
month.
(21) The board of directors of a school of excellence that is
a cyber school shall ensure that, when a pupil enrolls in the
school of excellence that is a cyber school, the pupil and his or
her parent or legal guardian are provided with a parent-student
orientation. If the pupil is at least age 18 or is an emancipated
minor, the orientation may be provided to just the pupil.
Sec. 553. (1) An authorizing body is not required to issue a
contract to any person or entity. Schools of excellence contracts
shall be issued on a competitive basis taking into consideration
the resources available for the proposed school of excellence, the
population to be served by the proposed school of excellence, the
educational goals to be achieved by the proposed school of
excellence,
and the applicant's track record, if any, in operating
public school academies or other public schools, and the level of
support for the proposed school of excellence in the community in
which it is to be located. Before issuing a contract for a proposed
school of excellence, the authorizing body shall hold at least 1
public meeting in the community in which the proposed school of
excellence is to be located in order to gauge this level of
support.
(2) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more schools
of excellence within the boundaries of the school district and the
board does not issue the contract, the person or entity may
petition the board to place the question of issuing the contract on
the ballot to be decided by the school electors of the school
district. The petition shall contain all of the information
required to be in the contract application under section 552 and
shall be signed by a number of school electors of the school
district equal to at least 5% of the total number of school
electors of that school district. The petition shall be filed with
the school district filing official. If the board receives a
petition meeting the requirements of this subsection, the board
shall have the question of issuing the contract placed on the
ballot at its next regular school election held at least 60 days
after receiving the petition. If a majority of the school electors
of the school district voting on the question vote to issue the
contract, the board shall issue the contract.
(3) Within 10 days after issuing a contract for a school of
excellence, the authorizing body shall submit to the superintendent
of public instruction a copy of the contract.
(4) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, quorum requirements, and
number of members of the board of directors of each school of
excellence subject to its jurisdiction. The resolution shall be
written
or amended as necessary to include a all of the following:
(a) A requirement that each member of the board of directors
must be a citizen of the United States.
(b) A process and standards for removal of a member of the
board of directors. The resolution shall provide that a member of
the board of directors may be removed only for gross neglect of
duty or for corrupt conduct in office, or for any other
misfeasance, malfeasance, or nonfeasance in office.
(c) A limit on the term of service of a board member to a term
of not more than 5 consecutive years, with at least a 10-year
period before a member may serve an additional term.
(d) A requirement of at least 7 members on a board of
directors, with at least 2 members being parents of pupils enrolled
in the school of excellence.
(e) A requirement of at least 5 members, including the
president of the board of directors, for a quorum, except in the
case of a vacancy.
(f) A requirement that vacancies on the board of directors
must be filled within 90 days.
(g) An attendance requirement that provides for both of the
following:
(i) During any 12-month period, a board member must attend at
least 85% of all board functions, including, but not limited to,
monthly board meetings, scheduled board events, and special and
emergency board meetings.
(ii) Failure to meet this attendance requirement constitutes a
vacating of the office of board member.
(5) A contract issued to organize and administer a school of
excellence shall contain at least all of the following:
(a) The educational goals the school of excellence is to
achieve and the methods by which it will be held accountable. The
educational goals shall include demonstrated improved pupil
academic achievement for all groups of pupils. To the extent
applicable, the pupil performance of a school of excellence shall
be assessed using at least a Michigan education assessment program
(MEAP) test or the Michigan merit examination under section 1279g,
as applicable.
(b) A description of the method to be used to monitor the
school of excellence's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) All of the matters set forth in the application for the
contract.
(e) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 561.
(f) A description of and address for the proposed physical
plant in which the school of excellence will be located. An
authorizing body may include a provision in the contract allowing
the board of directors of the school of excellence to operate the
same configuration of age or grade levels at more than 1 site if
each configuration of age or grade levels and each site identified
in the contract are under the direction and control of the board of
directors.
(g) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by a
certified public accountant in accordance with generally accepted
governmental auditing principles.
(h) A certification, signed by an authorized member of the
school of excellence board of directors, that the school of
excellence will comply with the contract and all applicable law.
(i) A requirement that the board of directors shall ensure
compliance with the requirements of 1968 PA 317, MCL 15.321 to
15.330.
(j) A requirement that the board of directors shall prohibit
specifically identified family relationships between members of the
board of directors, individuals who have an ownership interest in
or who are officers or employees of an educational management
organization involved in the operation of the school of excellence,
and employees of the school of excellence. The contract shall
identify the specific prohibited relationships consistent with
applicable law.
(k) A requirement that the board of directors of the school of
excellence shall make information concerning its operation and
management available to the public and to the authorizing body in
the same manner as is required by state law for school districts.
(l) A requirement that the board of directors of the school of
excellence shall collect, maintain, and make available to the
public and the authorizing body, in accordance with applicable law
and the contract, at least all of the following information
concerning the operation and management of the school of
excellence:
(i) A copy of the contract issued by the authorizing body for
the school of excellence.
(ii) A list of currently serving members of the board of
directors of the school of excellence, including name, address, and
term of office; copies of policies approved by the board of
directors; board meeting agendas and minutes; copy of the budget
approved by the board of directors and of any amendments to the
budget; and copies of bills paid for amounts of $10,000.00 or more
as they were submitted to the board of directors.
(iii) Quarterly financial reports submitted to the authorizing
body.
(iv) A current list of teachers and school administrators
working at the school of excellence that includes their individual
salaries as submitted to the registry of educational personnel;
copies of the teaching or school administrator's certificates or
permits of current teaching and administrative staff; and evidence
of compliance with the criminal background and records checks and
unprofessional conduct check required under sections 1230, 1230a,
and 1230b for all teachers and administrators working at the school
of excellence.
(v) Curriculum documents and materials given to the
authorizing body.
(vi) Proof of insurance as required by the contract.
(vii) Copies of facility leases or deeds, or both, and of any
equipment leases.
(viii) Copies of any management contracts or services contracts
approved by the board of directors.
(ix) All health and safety reports and certificates, including
those relating to fire safety, environmental matters, asbestos
inspection, boiler inspection, and food service.
(x) Any management letters issued as part of the annual
financial audit under subdivision (g).
(xi) Any other information specifically required under this
act.
(m) A requirement that the authorizing body must review and
may disapprove any agreement between the board of directors and an
educational management organization before the agreement is final
and valid. An authorizing body may disapprove an agreement
described in this subdivision only if the agreement is contrary to
contract or applicable law.
(n) A requirement that the board of directors shall
demonstrate all of the following to the satisfaction of the
authorizing body with regard to its pupil admission process:
(i) That the school of excellence has made a reasonable effort
to advertise its enrollment openings.
(ii) That the school of excellence has made the following
additional efforts to recruit pupils who are eligible for special
education programs and services or English as a second language
services to apply for admission:
(A) Reasonable efforts to advertise all enrollment openings to
organizations and media that regularly serve and advocate for
individuals with disabilities or children with limited English-
speaking ability within the boundaries of the intermediate school
district in which the school of excellence is located.
(B) Inclusion in all pupil recruitment materials of a
statement that appropriate special education services and English
as a second language services will be made available to pupils
attending the school as required by law.
(iii) That the open enrollment period for the school of
excellence is for a duration of at least 2 weeks and that the
enrollment times include some evening and weekend times.
(o) A requirement that the board of directors shall prohibit
any individual from being employed by the school of excellence in
more than 1 full-time position and simultaneously being compensated
at a full-time rate for each of those positions.
(p) A requirement that, if requested, the board of directors
shall report to the authorizing body the total compensation for
each individual working at the school of excellence.
(q) The term of the contract, not to exceed 3 years.
(6) A school of excellence shall comply with all applicable
law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.
(f) Laws concerning participation in state assessments, data
collection systems, state level student growth models, state
accountability and accreditation systems, and other public
comparative data collection required for public schools.
(7) A school of excellence and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for an act or omission in authorizing a school of excellence if the
authorizing body or the person acted or reasonably believed he or
she acted within the authorizing body's or the person's scope of
authority.
(8) A school of excellence is exempt from all taxation on its
earnings
and property. Unless the property is already fully exempt
from
real and personal property taxes under the general property
tax
act, 1893 PA 206, MCL 211.1 to 211.155, property occupied by a
school
of excellence and used exclusively for educational purposes
is
exempt from real and personal property taxes levied for school
operating
purposes under section 1211, to the extent exempted under
that
section, and from real and personal property taxes levied
under
the state education tax act, 1993 PA 331, MCL 211.901 to
211.906.
Instruments of conveyance to or
from a school of
excellence are exempt from all taxation including taxes imposed by
1966 PA 134, MCL 207.501 to 207.513. A school of excellence may not
levy ad valorem property taxes or another tax for any purpose.
However, operation of 1 or more schools of excellence by a school
district or intermediate school district does not affect the
ability of the school district or intermediate school district to
levy ad valorem property taxes or another tax.
(9) A school of excellence may acquire by purchase, gift,
devise, lease, sublease, installment purchase agreement, land
contract, option, or by any other means, hold, and own in its own
name buildings and other property for school purposes, and
interests therein, and other real and personal property, including,
but not limited to, interests in property subject to mortgages,
security interests, or other liens, necessary or convenient to
fulfill its purposes. For the purposes of condemnation, a school of
excellence may proceed under the uniform condemnation procedures
act, 1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of
that act, MCL 213.56 to 213.59, or other applicable statutes, but
only with the express, written permission of the authorizing body
in each instance of condemnation and only after just compensation
has been determined and paid.
Sec.
553c. (1) Beginning with management agreements described
in
this section that are entered into or renewed after the
effective
date of this section, if If the board of directors of a
school of excellence enters into or renews a management agreement
with an educational management organization to carry out the
operations
of the school of excellence, both all of the following
apply:
(a) The board of directors shall post a copy of the management
agreement on the school's website, with a link on the school's
website homepage, in a form and manner prescribed by the
department.
(b) (a)
The management agreement shall
require the educational
management organization to provide to the board of directors at
least annually all the same information that a school district is
required to disclose under section 18(2) of the state school aid
act of 1979, MCL 388.1618, for the most recent school fiscal year
for which that information is available.
(c) (b)
Within 30 15 days
after receiving the information
under
subdivision (a), (b), the board of directors shall make all
of
the information it receives under subdivision (a) (b) available
through a link on the school of excellence's website homepage, in a
form and manner prescribed by the department.
(2) Beginning with management agreements that are entered into
or renewed after the effective date of the amendatory act that
added this subsection, if the board of directors of a school of
excellence enters into or renews a management agreement with an
educational management organization to carry out the operations of
the school of excellence, both of the following apply:
(a) The management agreement shall not include the provision
of services that require competitive bidding under section 1267 or
the procurement of supplies, materials, and equipment that require
competitive bidding under section 1274.
(b) The school of excellence shall not also enter into an
agreement with that educational management organization for
material and labor described in section 1267 or for the procurement
of supplies, materials, and equipment described in section 1274
without first obtaining competitive bids as prescribed under those
sections, as applicable.
(3)
(2) As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with a school of excellence.
(b) "Entity" means a partnership, nonprofit or business
corporation, or any other association, corporation, trust, or other
legal entity.
(c) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to a school of excellence.
(d) "School fiscal year" means the period that begins July 1
and ends June 30.
Sec. 557. (1) In addition to other powers set forth in this
part, a school of excellence may take action to carry out the
purposes for which it was incorporated under this part, including,
but not limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to subsection (2) and section 555, to acquire,
hold, and own in its own name real and personal property, or
interests in real or personal property, for educational purposes by
purchase, gift, grant, devise, bequest, lease, sublease,
installment purchase agreement, land contract, option, or
condemnation, and subject to mortgages, security interests, or
other liens; and to sell or convey the property as the interests of
the school of excellence require.
(c) To receive, disburse, and pledge funds for lawful
purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the school of excellence. However, a school of
excellence shall not enter into a management agreement with an
educational management organization that operates on a for-profit
basis.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the school of excellence in the furtherance of its public purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by a school of excellence
is not subject to section 1351a(4) or section 1351(2) to (4). Bonds
issued under this section shall be full faith and credit
obligations of the school of excellence, pledging the general funds
or any other money available for such a purpose. Bonds issued under
this section are subject to the revised municipal finance act, 2001
PA 34, MCL 141.2101 to 141.2821.
(2) If a school of excellence leases real property, the board
of directors shall not lease real property from an educational
management organization with which the school of excellence has a
management agreement as described in section 553c or from a real
estate holding company that is affiliated with that educational
management organization.
(3) As used in this section, "educational management
organization" and "management agreement" mean those terms as
defined in section 553c.
Sec. 1311d. (1) A strict discipline academy shall be organized
and administered under the direction of a board of directors in
accordance with sections 1311b to 1311l and with bylaws adopted by
the board of directors. A strict discipline academy corporation
created to operate a strict discipline academy shall be organized
under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3192, except that the strict discipline academy corporation is
not required to comply with sections 170 to 177 of 1931 PA 327, MCL
450.170 to 450.177. To the extent disqualified under the state or
federal constitution, a strict discipline academy shall not be
organized by a church or other religious organization and shall not
have any organizational or contractual affiliation with or
constitute a church or other religious organization.
(2)
Any Subject to subsections
(4) to (6), any of the
following may act as an authorizing body to issue a contract to
organize and operate 1 or more strict discipline academies under
sections 1311b to 1311l:
(a) The board of a school district that operates grades K to
12. However, the board of a school district shall not issue a
contract for a strict discipline academy to operate outside the
school district's boundaries, and a strict discipline academy
authorized by the board of a school district shall not operate
outside that school district's boundaries. For the purposes of this
section, "school district" expressly does not include the state
school reform/redesign school district created under section 1280c,
the education achievement authority, or any other statewide entity.
(b) An intermediate school board. However, the board of an
intermediate school district shall not issue a contract for a
strict discipline academy to operate outside the intermediate
school district's boundaries, and a strict discipline academy
authorized by the board of an intermediate school district shall
not operate outside that intermediate school district's boundaries.
(c) The board of a community college. However, except as
otherwise provided in this subdivision, the board of a community
college shall not issue a contract for a strict discipline academy
to operate in a school district organized as a school district of
the first class, a strict discipline academy authorized by the
board of a community college shall not operate in a school district
organized as a school district of the first class, the board of a
community college shall not issue a contract for a strict
discipline academy to operate outside the boundaries of the
community college district, and a strict discipline academy
authorized by the board of a community college shall not operate
outside the boundaries of the community college district. The board
of a community college also may issue a contract for not more than
1 strict discipline academy to operate on the grounds of an active
or closed federal military installation located outside the
boundaries of the community college district, or may operate a
strict discipline academy itself on the grounds of such a federal
military installation, if the federal military installation is not
located within the boundaries of any community college district and
the community college has previously offered courses on the grounds
of the federal military installation for at least 10 years.
(d) The governing board of a state public university.
(3) To obtain a contract to organize and operate 1 or more
strict discipline academies, 1 or more persons or an entity may
apply to an authorizing body described in subsection (2). The
application shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 1311e, a list of the proposed members of the board of
directors of the strict discipline academy and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed strict discipline academy.
(ii) The purposes for the strict discipline academy corporation
that will operate the strict discipline academy. This language
shall provide that the strict discipline academy is established
pursuant to sections 1311b to 1311l and that the strict discipline
academy corporation is a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the strict discipline
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the strict discipline academy.
(ii) A copy of the educational goals of the strict discipline
academy and the curricula to be offered and methods of pupil
assessment to be used by the strict discipline academy. To the
extent applicable, the progress of the pupils in the strict
discipline academy shall be assessed using at least a Michigan
education assessment program (MEAP) test or an assessment
instrument developed under section 1279 for a state-endorsed high
school diploma.
(iii) The admission policy and criteria to be maintained by the
strict discipline academy. The admission policy and criteria shall
comply with section 1311g. This part of the application also shall
include a description of how the applicant will provide to the
general public adequate notice that a strict discipline academy is
being created and adequate information on the admission policy,
criteria, and process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(vi) The type of pupils to be enrolled in the strict discipline
academy, as described in section 1311g(3) and (4).
(f) Descriptions of staff responsibilities and of the strict
discipline academy's governance structure.
(g) For an application to the board of a school district, an
intermediate school board, or board of a community college,
identification of the local and intermediate school districts in
which the strict discipline academy will be located.
(h) An agreement that the strict discipline academy will
comply with the provisions of sections 1311b to 1311l and, subject
to the provisions of these sections, with all other state law
applicable to public bodies and with federal law applicable to
public bodies or school districts.
(i) For a strict discipline academy authorized by a school
district, an assurance that employees of the strict discipline
academy will be covered by the collective bargaining agreements
that apply to other employees of the school district employed in
similar classifications in schools that are not strict discipline
academies.
(j) A description of and address for the proposed physical
plant in which the strict discipline academy will be located.
(k) The certificate of need issued by the state board under
subsection (4).
(4) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a
contract to organize and operate a strict discipline academy under
this part unless the application is accompanied by a certificate of
need issued by the state board under this subsection. The state
board shall promulgate rules to develop and implement a process for
issuing a certificate of need for a new strict discipline academy.
The standards for issuing a certificate of need shall include, but
are not limited to, all of the following:
(a) The resources available for the proposed strict discipline
academy.
(b) The population to be served by the proposed strict
discipline academy.
(c) The educational goals to be achieved by the proposed
strict discipline academy.
(d) The applicant's track record, if any, in organizing strict
discipline academies or other public schools.
(e) The graduation rate of a school district in which the
proposed strict discipline academy is proposed to be located.
(f) The population of a county in which the proposed strict
discipline academy is proposed to be located.
(g) The number of schools in the proximity of a proposed
location of the proposed strict discipline academy that are on the
list under section 1280c(1) of the public schools in this state
that the department has determined to be among the lowest achieving
5% of all public schools in this state.
(h) The number of pupils on waiting lists of strict discipline
academies in the proximity of a proposed location of the proposed
strict discipline academy.
(i) The number of public school options already available in
the proximity of a proposed location of the proposed strict
discipline academy.
(j) The impact of the issuance of the contract on existing
public schools in the proximity of a proposed location of the
proposed strict discipline academy.
(5) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a new
contract to organize and operate a strict discipline academy under
this part to an existing public school academy that has had its
contract with its previous authorizing body revoked, terminated, or
not renewed. The board of directors of a public school academy
described in this subsection shall not apply for a contract that
would violate this subsection.
(6) Beginning on the effective date of the amendatory act that
added this subsection, an authorizing body shall not issue a new
contract to organize and operate a new strict discipline academy
unless each of the existing public school academies that are
operating under a contract from that authorizing body have
demonstrated pupil achievement as measured by applicable state
assessments at a level that is at least 20% higher than the school
district in which the existing public school academy is located.
(7) (4)
An authorizing body shall oversee,
or shall contract
with an intermediate school district, community college, or state
public university to oversee, each strict discipline academy
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the authorizing body
can certify that the strict discipline academy is in compliance
with statute, rules, and the terms of the contract.
(8) (5)
If the state board finds that an
authorizing body is
not engaging in appropriate continuing oversight of 1 or more
strict discipline academies operating under a contract issued by
the authorizing body, the state board may suspend the power of the
authorizing body to issue new contracts to organize and operate
strict discipline academies. A contract issued by the authorizing
body during the suspension is void. A contract issued by the
authorizing body before the suspension is not affected by the
suspension. In evaluating whether an authorizing body is engaging
in appropriate continuing oversight of 1 or more strict discipline
academies operating under a contract issued by the authorizing
body, the superintendent of public instruction shall take into
account all of the following:
(a) The academic performance of the strict discipline
academies and other public school academies authorized by the
authorizing body, including at least the ranking of those schools
on the department's "top-to-bottom" list and the measures already
implemented at the school to address student improvement.
(b) New or reauthorized contracts that are submitted by the
authorizing body to the superintendent of public instruction with
more than 2 deficiencies.
(c) Transparency demonstrated by the strict discipline
academies and other public school academies authorized by the
authorizing body, including at least the number of those schools'
websites that have an inactive or outdated "transparency mitten" or
do not have an updated budget.
(d) Fiscal responsibility demonstrated by the strict
discipline academies and other public school academies authorized
by the authorizing body, including at least the number of late
audits, audit findings, and deficits among those schools.
(e) Assurances and verifications, as defined by the
superintendent of public instruction.
(9) (6)
An authorizing body shall not
charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a strict discipline academy in an amount that exceeds
a
combined total of 3% 1% of the total state school aid received by
the strict discipline academy in the school year in which the fees
or expenses are charged. An authorizing body may provide other
services for a strict discipline academy and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the strict discipline academy.
(10) (7)
A strict discipline academy shall
be presumed to be
legally organized if it has exercised the franchises and privileges
of a strict discipline academy for at least 2 years.
Sec. 1311e. (1) An authorizing body is not required to issue a
contract to any person or entity. Contracts for strict discipline
academies shall be issued on a competitive basis taking into
consideration the resources available for the proposed strict
discipline academy, the population to be served by the proposed
strict
discipline academy, and the educational goals to be achieved
by the proposed strict discipline academy, and the level of support
for the proposed strict discipline academy in the community in
which it is to be located. Before issuing a contract for a proposed
strict discipline academy, the authorizing body shall hold at least
1 public meeting in the community in which the proposed strict
discipline academy is to be located in order to gauge this level of
support.
(2) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more strict
discipline academies within the boundaries of the school district
and the board does not issue the contract, the person or entity may
petition the board to place the question of issuing the contract on
the ballot to be decided by the school electors of the school
district. The petition shall contain all of the information
required to be in the contract application under section 1311d and
shall be signed by a number of school electors of the school
district equal to at least 15% of the total number of school
electors of that school district. The petition shall be filed with
the secretary of the board. If the board receives a petition
meeting the requirements of this subsection, the board shall place
the question of issuing the contract on the ballot at its next
annual school election held at least 60 days after receiving the
petition. If a majority of the school electors of the school
district voting on the question vote to issue the contract, the
board shall issue the contract.
(3) Within 10 days after issuing a contract for a strict
discipline academy, the board of the authorizing body shall submit
to the state board a copy of the contract and of the application
under section 1311d.
(4) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, and number of members of
the board of directors of each strict discipline academy subject to
its jurisdiction. The resolution shall also be written or amended
as necessary to include a process and standards for removal of a
member of the board of directors. The resolution shall provide that
a member of the board of directors may be removed only for gross
neglect of duty or for corrupt conduct in office, or for any other
misfeasance, malfeasance, or nonfeasance in office.
(5) A contract issued to organize and administer a strict
discipline academy shall contain at least all of the following:
(a) The educational goals the strict discipline academy is to
achieve and the methods by which it will be held accountable. To
the extent applicable, the pupil performance of a strict discipline
academy shall be assessed using at least a Michigan education
assessment program (MEAP) test or the Michigan merit examination
developed under section 1279g, as applicable.
(b) A description of the method to be used to monitor the
strict discipline academy's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) All of the matters set forth in the application for the
contract.
(e) For a strict discipline academy authorized by a school
district, an agreement that employees of the strict discipline
academy will be covered by the collective bargaining agreements
that apply to employees of the school district employed in similar
classifications in schools that are not strict discipline
academies.
(f) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 1311l.
(g) A description of and address for the proposed physical
plant in which the strict discipline academy will be located.
(h) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by a
certified public accountant in accordance with generally accepted
governmental auditing principles.
(i) The term of the contract and a description of the process
and standards for renewal of the contract at the end of the term.
The term of the contract shall not exceed 3 years. The standards
for renewal shall include student growth as measured by assessments
and other objective criteria as a significant factor in the
decision of whether or not to renew the contract.
(6) A strict discipline academy shall comply with all
applicable law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.
(f) Except for part 6a, all provisions of this act that
explicitly apply to public school academies established under part
6a.
(7) A strict discipline academy and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for any acts or omissions in authorizing a strict discipline
academy if the authorizing body or the person acted or reasonably
believed he or she acted within the authorizing body's or the
person's scope of authority.
(8) A strict discipline academy is exempt from all taxation on
its earnings and property. Instruments of conveyance to or from a
strict discipline academy are exempt from all taxation including
taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. A strict
discipline academy may not levy ad valorem property taxes or any
other tax for any purpose. However, operation of 1 or more strict
discipline academies by a school district or intermediate school
district does not affect the ability of the school district or
intermediate school district to levy ad valorem property taxes or
any other tax.
(9) A strict discipline academy may acquire by purchase, gift,
devise, lease, sublease, installment purchase agreement, land
contract, option, or by any other means, hold and own in its own
name buildings and other property for school purposes, and
interests therein, and other real and personal property, including,
but not limited to, interests in property subject to mortgages,
security interests, or other liens, necessary or convenient to
fulfill its purposes. For the purposes of condemnation, a strict
discipline academy may proceed under the uniform condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding
sections 6 to 9 of that act, MCL 213.56 to 213.59, or other
applicable statutes, but only with the express, written permission
of the authorizing body in each instance of condemnation and only
after just compensation has been determined and paid.
(10) Beginning with management agreements that are entered
into or renewed after the effective date of the amendatory act that
added this subsection, if the board of directors of a strict
discipline academy enters into or renews a management agreement
with an educational management organization to carry out the
operations of the strict discipline academy, all of the following
apply:
(a) The management agreement shall require the educational
management organization to provide to the board of directors at
least annually all of the same information that a school district
is required to disclose under section 18(2) of the state school aid
act of 1979, MCL 388.1618, for the most recent school fiscal year
for which that information is available.
(b) Within 15 days after receiving the information under
subdivision (a), the board of directors shall make all of the
information it receives under subdivision (a) available through a
link on the strict discipline academy's website homepage, in a form
and manner prescribed by the department.
(c) The management agreement shall not include the provision
of services that require competitive bidding under section 1267 or
the procurement of supplies, materials, and equipment that require
competitive bidding under section 1274.
(d) The strict discipline academy shall not also enter into an
agreement with that educational management organization for
material and labor described in section 1267 or for the procurement
of supplies, materials, and equipment described in section 1274
without first obtaining competitive bids as prescribed under those
sections, as applicable.
(11) As used in subsection (10):
(a) "Educational management organization" means an entity that
enters into a management agreement with a strict discipline
academy.
(b) "Entity" means a partnership, nonprofit or business
corporation, or any other association, corporation, trust, or other
legal entity.
(c) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to a strict discipline academy.
(d) "School fiscal year" means the period that begins July 1
and ends June 30.
Sec. 1311h. (1) In addition to other powers set forth in
sections 1311b to 1311l, a strict discipline academy may take action
to carry out the purposes for which it was incorporated under
sections 1311b to 1311l, including, but not limited to, all of the
following:
(a) To sue and be sued in its name.
(b) To acquire, hold, and own in its own name real and
personal property, or interests in real or personal property, for
educational purposes by purchase, gift, grant, devise, bequest,
lease, sublease, installment purchase agreement, land contract,
option, or condemnation, and subject to mortgages, security
interests, or other liens; and to sell or convey the property as
the interests of the strict discipline academy require.
(c) To receive and disburse funds for lawful purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the strict discipline academy. However, a strict
discipline academy shall not enter into a management agreement with
an educational management organization that operates on a for-
profit basis.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the strict discipline academy in the furtherance of its public
purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by a strict discipline
academy is not subject to section 1351a(4) or section 1351(2) to
(4). Bonds issued under this section shall be full faith and credit
obligations of the strict discipline academy, pledging the general
funds or any other money available for such a purpose. Bonds issued
under this section are subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) If a strict discipline academy leases real property, the
board of directors shall not lease real property from an
educational management organization with which the strict
discipline academy has a management agreement or from a real estate
holding company that is affiliated with that educational management
organization.
(3) As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with a strict discipline
academy.
(b) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to a strict discipline academy.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
