Bill Text: MI SB0618 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Education; public school academies; revisions to provisions concerning formation, operation, and termination of public school academies, urban high school academies, and schools of excellence; provide for, and exempt certain property from school operating taxes. Amends secs. 501, 502, 502a, 503, 504, 505, 507, 522, 523, 524, 528, 551, 552, 553, 553a, 556, 559, 561 & 1211 of 1976 PA 451 (MCL 380.501 et seq.); adds secs. 503c, 523c, 553c, 1277b & 1280e & repeals sec. 501a of 1976 PA 451 (MCL 380.501a).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-12-28 - Assigned Pa 0277'11 [SB0618 Detail]
Download: Michigan-2011-SB0618-Engrossed.html
SB-0618, As Passed Senate, October 6, 2011
SUBSTITUTE FOR
SENATE BILL NO. 618
(As amended October 6, 2011)
<<A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 501, 502, 502a, 503, 504, 505, 507, 522, 523,
524, 528, 551, 552, 553, 553a, 556, 559, and 561, (MCL
380.501, 380.502, 380.502a, 380.503, 380.504, 380.505, 380.507,
380.522, 380.523, 380.524, 380.528, 380.551, 380.552, 380.553,
380.553a, 380.556, 380.559, and 380.561), section 501 as
amended and section 528 as added by 2003 PA 179, sections 502, 503,
504, 507, 522, 523, and 524 as amended and sections 502a, 551, 552,
553, 553a, 556, 559, and 561 as added by 2009 PA 205, and section 505
as amended by 1994 PA 416, ; and to repeal acts and parts of
acts.>>
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 501. (1) A public school academy is a public school under
section 2 of article VIII of the state constitution of 1963, is a
school district for the purposes of section 11 of article IX of the
state constitution of 1963 and for the purposes of section 1225 and
section 1351a, and is subject to the leadership and general
supervision of the state board over all public education under
section 3 of article VIII of the state constitution of 1963. A
public school academy is a body corporate and is a governmental
agency. The powers granted to a public school academy under this
part constitute the performance of essential public purposes and
governmental functions of this state.
(2) As used in this part:
(a) "Authorizing body" means any of the following that issues
a contract as provided in this part:
(i) The board of a school district that operates grades K to
12.
(ii) An intermediate school board.
(iii) The board of a community college.
(iv) The governing board of a state public university.
(v) Two or more of the public agencies described in
subparagraphs (i) to (iv) 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.
(b) "Certificated teacher" means an individual who holds a
valid teaching certificate issued by the superintendent of public
instruction under section 1531.
(c) "Community college" means a community college organized
under the community college act of 1966, 1966 PA 331, MCL 389.1 to
389.195, or a federal tribally controlled community college that is
recognized under the tribally controlled community college
assistance act of 1978, Public Law 95-471, 92 Stat. 1325, and is
determined by the department to meet the requirements for
accreditation by a recognized regional accrediting body.
(d) "Contract" means the executive act taken by an authorizing
body that evidences the authorization of a public school academy
and that establishes, subject to the constitutional powers of the
state board and applicable law, the written instrument executed by
an authorizing body conferring certain rights, franchises,
privileges, and obligations on a public school academy, as provided
by this part, and confirming the status of a public school academy
as a public school in this state.
(e) "Entity" means a partnership, nonprofit or business
corporation, labor organization, or any other association,
corporation, trust, or other legal entity.
(f) "State public university" means a state university
described in section 4, 5, or 6 of article VIII of the state
constitution of 1963.
Sec. 502. (1) A public school academy shall be organized and
administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. A public school academy corporation shall be organized
under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3192, except that a public school academy corporation is not
required to comply with sections 170 to 177 of 1931 PA 327, MCL
450.170 to 450.177. To the extent disqualified under the state or
federal constitution, a public school academy shall not be
organized by a church or other religious organization and shall not
have any organizational or contractual affiliation with or
constitute a church or other religious organization.
(2) Any of the following may act as an authorizing body to
issue a contract to organize and operate 1 or more public school
academies under this part:
(a) The board of a school district that operates grades K to
12. However, the board of a school district shall not issue a
contract for a public school academy to operate outside the school
district's boundaries, and a public school academy authorized by
the board of a school district shall not operate outside that
school district's boundaries.
(b) An intermediate school board. However, the board of an
intermediate school district shall not issue a contract for a
public school academy to operate outside the intermediate school
district's boundaries, and a public school academy authorized by
the board of an intermediate school district shall not operate
outside that intermediate school district's boundaries.
(c)
The board of a community college. However, except as
otherwise
provided in this subdivision, the board of a community
college
shall not issue a contract for a public school academy to
operate
in a school district organized as a school district of the
first
class, a public school academy authorized by the board of a
community
college shall not operate in a school district organized
as
a school district of the first class, the board of a community
college
shall not issue a contract for a public school academy to
operate
outside the boundaries of the community college district,
and
a public school academy authorized by the board of a community
college
shall not operate outside the boundaries of the community
college
district. The board of a community college also may issue a
contract
for not more than 1 public school academy to operate on
the
grounds of an active or closed federal military installation
located
outside the boundaries of the community college district,
or
may operate a public school academy itself on the grounds of
such
a federal military installation, if the federal military
installation
is not located within the boundaries of any community
college
district and the community college has previously offered
courses
on the grounds of the federal military installation for at
least
10 years.
(d)
The governing board of a state public university. However,
the
combined total number of contracts for public school academies
issued
by all state public universities shall not exceed 150.
Further,
the total number of contracts issued by any 1 state public
university
shall not exceed 50% of the maximum combined total
number
that may be issued under this subdivision.
(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(4), a list of the proposed members of the board
of directors of the public school academy and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed public school academy.
(ii) The purposes for the public school academy corporation.
This language shall provide that the public school academy is
incorporated pursuant to this part and that the public school
academy corporation is a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the public school
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the public school academy.
(ii) A copy of the educational goals of the public school
academy and the curricula to be offered and methods of pupil
assessment to be used by the public school academy. 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)
For a public school academy authorized by a school
district,
an assurance that employees of the public school academy
will
be covered by the collective bargaining agreements that apply
to
other employees of the school district employed in similar
classifications
in schools that are not public school academies.
(i) (j)
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.
(4) An authorizing body shall oversee, or shall contract with
an intermediate school district, community college, or state public
university to oversee, each public school academy operating under a
contract
issued by the authorizing body. The oversight shall be
sufficient
to ensure that the authorizing body can certify that the
public
school academy is in compliance with statute, rules, and the
terms
of the contract.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.
(5) If the superintendent of public instruction finds that an
authorizing body is not engaging in appropriate continuing
oversight of 1 or more public school academies operating under a
contract issued by the authorizing body, the superintendent of
public instruction may suspend the power of the authorizing body to
issue new contracts to organize and operate public school
academies. A contract issued by the authorizing body during the
suspension is void. A contract issued by the authorizing body
before the suspension is not affected by the suspension.
(6) An authorizing body shall not charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a public school academy in an amount that exceeds a
combined total of 3% of the total state school aid received by the
public school academy in the school year in which the fees or
expenses are charged. An authorizing body may provide other
services for a public school academy and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the public school academy.
(7) A public school academy shall be presumed to be legally
organized if it has exercised the franchises and privileges of a
public school academy for at least 2 years.
(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. 502a. If a public school academy operating under this
part meets the requirements of part 6e, with the approval of its
authorizing body, the board of directors of the public school
academy may adopt a resolution choosing to convert the public
school academy to a school of excellence under part 6e. If a board
of directors of a public school academy that meets the requirements
of part 6e is issued a contract to operate as a school of
excellence under part 6e, all of the following apply:
(a) The public school academy shall cease to operate as a
public school academy under this part and shall operate as a school
of excellence under part 6e upon the issuance of the contract under
part 6e or at another time as determined by the authorizing body.
(b) The public school academy shall be considered to be a
school of excellence for all purposes upon the issuance of the
contract under part 6e or at another time as determined by the
authorizing body, but shall retain its corporate identity.
(c) The conversion of a public school academy to a school of
excellence operating under part 6e shall not impair any agreement,
mortgage, loan, bond, note or other instrument of indebtedness, or
any other agreement entered into by a public school academy while
it was operating under this part.
(d) The contract issued to the public school academy under
this part shall automatically terminate upon the issuance of a
contract under part 6e or at another time as determined by the
authorizing body.
(e) If the authorizing body of the public school academy is
the governing board of a state university, then all of the
following apply to issuance of a new contract for a public school
academy under this part after the conversion:
(i) For a period of 12 months after the contract is issued
under part 6e, that authorizing body is the only authorizing body
that may issue a new contract for a new public school academy to
fill
the availability under section 502(d) 502(2)(d) that is
created by the conversion of the public school academy to a school
of excellence.
(ii) If the board of directors of the public school academy
that is issued a contract to fill the availability under section
502(d)
502(2)(d) that is created by the conversion chooses to enter
into an agreement with an educational management organization to
manage or operate the public school academy, the board of directors
may give preference to an educational management organization that
has previously operated a school that met the criteria described in
section 552(4).
(iii) At the time the contract is issued, the public
school
academy
shall not be located in a school district that has a
graduation
rate of over 75.5%, on average, for the most recent 3
school
years for which the data are available, as determined by the
department.
Sec. 503. (1) An authorizing body is not required to issue a
contract to any person or entity. Public school academy contracts
shall be issued on a competitive basis taking into consideration
the resources available for the proposed public school academy, the
population to be served by the proposed public school academy, the
educational goals to be achieved by the proposed public school
academy, and the applicant's track record, if any, in operating
public school academies or other public schools. However, an
authorizing body may give priority to a proposed public school
academy that is intended to replace a public school academy that
has
been closed pursuant to section 507(2), 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.
(2) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more public
school academies within the boundaries of the school district and
the board does not issue the contract, the person or entity may
petition the board to place the question of issuing the contract on
the ballot to be decided by the school electors of the school
district. The petition shall contain all of the information
required to be in the contract application under section 502 and
shall be signed by a number of school electors of the school
district
equal to at least 15% 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 public
school academy, the authorizing body shall submit to the
superintendent
of public instruction a copy of the contract. and of
the
application under section 502.
(4) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, and number of members of
the board of directors of each public school academy subject to its
jurisdiction.
(5) A contract issued to organize and administer a public
school academy shall contain at least all of the following:
(a) The educational goals the public school academy is to
achieve and the methods by which it will be held accountable. 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)
For a public school academy authorized by a school
district,
an agreement that employees of the public school academy
will
be covered by the collective bargaining agreements that apply
to
employees of the school district employed in similar
classifications
in schools that are not public school academies.
(e) (f)
Procedures for revoking the contract
and grounds for
revoking the contract, including at least the grounds listed in
section 507.
(f) (g)
A description of and address for
the proposed physical
plant
in which the public school academy will be located. At the
time
the contract is issued for a public school academy under
section
502a, the public school academy shall not be located in a
school
district that has a graduation rate of over 75.5%, on
average,
for the most recent 3 school years for which the data are
available,
as determined by the department.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) (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.
(h) (i)
The term of the contract and a
description of the
process and standards for renewal of the contract at the end of the
term.
The standards for renewal shall include student growth
increases in academic achievement for all groups of pupils as
measured
by assessments and other objective criteria as a
significant
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.
(6) A public school academy shall comply with all applicable
law, including all of the following:
Senate Bill No. 618 as amended October 6, 2011
(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 public school academy and its incorporators, board
members, officers, employees, and volunteers have governmental
immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An
authorizing body and its board members, officers, and employees are
immune from civil liability, both personally and professionally,
for an act or omission in authorizing a public school academy if
the authorizing body or the person acted or reasonably believed he
or she acted within the authorizing body's or the person's scope of
authority.
(8) A public school academy is exempt from all taxation on its
earnings and property. Instruments of conveyance to or from a
public school academy are exempt from all taxation including taxes
imposed by 1966 PA 134, MCL 207.501 to 207.513. Property occupied
by a public school academy and used exclusively for educational
purposes is exempt from real and personal property taxes. A public
school academy may not levy ad valorem property taxes or another
tax for any purpose. However, operation of 1 or more public school
academies by a school district or intermediate school district does
not affect the ability of the school district or intermediate
school district to levy ad valorem property taxes or another tax.
(9) A public school academy may acquire by purchase, gift,
devise, lease, sublease, installment purchase agreement, land
contract, option, or by any other means, hold and own in its own
name buildings and other property for school purposes, and
interests therein, and other real and personal property, including,
but not limited to, interests in property subject to mortgages,
security interests, or other liens, necessary or convenient to
fulfill its purposes. For the purposes of condemnation, a public
school academy may proceed under the uniform condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding
sections 6 to 9 of that act, MCL 213.56 to 213.59, or other
applicable statutes, but only with the express, written permission
of the authorizing body in each instance of condemnation and only
after just compensation has been determined and paid.
(10) 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. 504. (1) A public school academy may be located in all or
part of an existing public school building. A public school academy
shall
not operate at a site other than the single site or sites
requested
for the configuration of grades age
or grade levels that
will
use the site or sites, as specified in the application
required
under section 502 and in the contract. In a contract, an
authorizing body may permit a public school academy to operate the
same configuration of age or grade levels at more than 1 site, and
if this is included in the contract, a public school academy may
operate the same configuration of age or grade levels at more than
1 site.
(2) A public school academy shall not charge tuition and shall
not discriminate in its pupil admissions policies or practices on
the basis of intellectual or athletic ability, measures of
achievement or aptitude, status as a student with a disability, or
any other basis that would be illegal if used by a school district.
However, a public school academy may limit admission to pupils who
are within a particular range of age or grade level or on any other
basis that would be legal if used by a school district and may give
enrollment priority as provided in subsection (4).
(3) Except for a foreign exchange student who is not a United
States citizen, a public school academy shall not enroll a pupil
who
is not a resident of this state. Enrollment For a public school
academy authorized by a school district or intermediate school
district, enrollment in the public school academy may be open to
all individuals who reside in this state who meet the admission
policy and shall be open to all pupils who reside within the
geographic
boundaries , if any, of
the that authorizing body as
described
in section 502(2)(a) to (c) who
meet the admission
policy. ,
except that admission to a public school academy
authorized
by the board of a community college to operate, or
operated
by the board of a community college, on the grounds of a
federal
military installation, as described in section 502(2)(c),
shall
be open to all pupils who reside in the county in which the
federal
military installation is located. For
a public school
academy authorized by a community college or a state public
university, enrollment shall be open to all pupils who reside in
this state who meet the admission policy. Subject to subsection
(4), if there are more applications to enroll in the public school
academy than there are spaces available, pupils shall be selected
to enroll using a random selection process. A public school academy
shall allow any pupil who was enrolled in the public school academy
in the immediately preceding school year to enroll in the public
school academy in the appropriate grade unless the appropriate
grade is not offered at that public school academy.
(4) A public school academy may give enrollment priority to 1
or more of the following:
(a) A sibling of a pupil enrolled in the public school
academy.
(b) A pupil who transfers to the public school academy from
another
public school academy pursuant to a matriculation agreement
between
the public school academies academy
and other public school
that provides for this enrollment priority, if all of the following
requirements are met:
(i) Each public school academy that enters into
the
matriculation agreement remains a separate and independent public
school. academy.
(ii) The public school academy that gives the enrollment
priority selects at least 5% of its pupils for enrollment using a
random selection process.
(iii) The matriculation agreement allows any pupil who was
enrolled at any time during elementary school in a public school
academy
that is party to the matriculation
agreement and who was
not
expelled from the public school academy to enroll in the public
school academy giving enrollment priority under the matriculation
agreement.
(c) A child of a person who is employed by or at the public
school academy or who is on the board of directors of the public
school academy. As used in this subdivision, "child" includes an
adopted child or a legal ward.
(5) A public school academy may include any grade up to grade
12 or any configuration of those grades, including kindergarten and
early childhood education, as specified in its contract. If
specified in its contract, a public school academy may also operate
an adult basic education program, adult high school completion
program, or general education development testing preparation
program. The authorizing body may approve amendment of a contract
with respect to ages of pupils or grades offered.
Sec. 505. (1) Except as otherwise provided by law, a public
school academy shall use certificated teachers according to state
board rule.
(2)
A public school academy operated authorized by a state
public university or community college may use noncertificated
individuals to teach as follows:
(a)
If the public school academy is operated authorized by a
state public university, the public school academy may use as a
classroom teacher in any grade a faculty member who is employed
full-time by the state public university and who has been granted
institutional tenure, or has been designated as being on tenure
track, by the state public university.
(b)
For a public school academy operated authorized by a
community college, the public school academy may use as a classroom
teacher a full-time member of the community college faculty who has
at least 5 years' experience at that community college in teaching
the subject matter that he or she is teaching at the public school
academy.
(c) In any other situation in which a school district is
permitted under this act to use noncertificated teachers.
(3) A public school academy may develop and implement new
teaching techniques or methods or significant revisions to known
teaching techniques or methods, and shall report those to the
authorizing body and state board to be made available to the
public. A public school academy may use any instructional technique
or delivery method that may be used by a school district.
Sec.
507. (1) The authorizing body for a public school academy
is
the fiscal agent for the public school academy. A state school
aid
payment for a public school academy shall be paid to the
authorizing
body that is the fiscal agent for that public school
academy,
which shall then forward the payment to the public school
academy.
An authorizing body has the responsibility to oversee a
public
school academy's compliance with the contract and all
applicable
law. 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 has occurred:
(a)
Failure of the public school academy to abide by and meet
the
educational goals set forth in the contract.
(b)
Failure of the public school academy to comply with all
applicable
law.
(c)
Failure of the public school academy to meet generally
accepted
public sector accounting principles.
(d)
The existence of 1 or more other grounds for revocation as
specified
in the contract.
(2)
Except for a public school academy that is an alternative
school
serving a special student population, if the superintendent
of
public instruction determines that a public school academy 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, and 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, the superintendent of public instruction shall
notify
the public school academy's authorizing body. If an
authorizing
body receives notice from the superintendent of public
instruction
under this subsection, the authorizing body shall
revoke
the public school academy's contract and the public school
academy
shall be closed, effective at the end of the current school
year.
(3)
Except for a contract issued by a school district pursuant
to
a vote by the school electors on a ballot question under section
503(2),
the decision of an authorizing body to 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.
(4)
An authorizing body that revokes a contract under this
section
is not liable for that action to the public school academy,
public
school academy corporation, a pupil of the public school
academy,
the parent or guardian of a pupil of the public school
academy,
or any other person.An
authorizing body that issues a
contract for a public school academy under this part shall do all
of the following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each public school
academy that it authorizes. The authorizing body shall ensure that
the board of directors includes representation from the local
community.
(d) Oversee each public school academy operating under a
contract issued by the authorizing body. The oversight shall be
sufficient to ensure that the board of directors is in compliance
with the terms of the contract and with applicable law.
(e) Develop and implement a process for holding a public
school academy accountable for meeting applicable academic
performance standards set forth in the contract and for
implementing corrective action for a public school academy that
does not meet those standards.
(f) Take necessary measures to ensure that the board of
directors of a public school academy operates independently of any
educational management company involved in the operations of the
public school academy.
(g) Oversee and ensure that the pupil admission process used
by the public school academy is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the public school
academy maintains and releases information as necessary to comply
with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for a public school academy is the
fiscal agent for the public school academy. A state school aid
payment for a public school academy shall be paid to the
authorizing body that is the fiscal agent for that public school
academy, and the authorizing body shall then forward the payment to
the public school academy. Within 30 days after a contract is
submitted to the department by an authorizing body under subsection
(1), the department shall issue a district code to the public
school academy for which the contract was issued. If the department
does not issue a district code within 30 days after a contract is
filed, the state treasurer shall assign a temporary district code
in order for the public school academy to receive funding under the
state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the public school academy to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the public school academy to comply with all
applicable law.
(c) Failure of the public school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for a public school academy that is an alternative
school serving a special student population, if the superintendent
of public instruction determines that a public school academy site
that has been operating for at least 4 years is among the lowest
achieving 5% of all public schools in this state, 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 public 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 public
school academy's contract to eliminate the public school academy's
authority to operate the existing age and grade levels at the site
and the public school academy shall cease operating the existing
age and grade levels at the site, effective at the end of the
current school year. If the public 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 public 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 public school academy, the
public school academy corporation, a pupil of the public school
academy, the parent or guardian of a pupil of the public school
academy, or any other person.
(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 public school academy in a
final attempt to improve student educational performance or to
avoid interruption of the educational process. An authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, canceling a contract with an educational management
organization, if any, withdrawing approval of a contract under
section 506, or appointing a new board of directors or a trustee to
take over operation of the public school academy.
(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 public
school academy under this part, shall return any school aid funds
held by the authorizing body that are attributable to the affected
pupils to the state treasurer for deposit into the state school aid
fund. The state treasurer shall distribute funds to the public
school in which the pupils enroll after the revocation pursuant to
a methodology established by the department and the center for
educational performance and information.
(9) Not more than 10 days after a public school academy's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the public school academy whose contract has terminated or
been revoked and the date of contract termination or revocation.
Sec. 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 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. Subject
to
section 524(1), not more than 15 contracts may be issued under
this
part. A contract issued under this part shall be for an urban
high
school academy that will be located in a county with a
population
of at least 1,000,000. An urban high school academy
authorized
under this part shall not operate outside the boundaries
of
a county with a population of at least 1,000,000.
(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
terms.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 an assessment instrument
developed
under section 1279.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.
(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.
(6)
If the state board 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
state
board by unanimous vote 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.
(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% 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.
(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. 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 3 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. in a newspaper of
general
circulation in the intermediate school district in which
the
urban high school academy is located.
(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
standards for renewal shall include student growth increases in
academic achievement for all groups of pupils as measured by
Senate Bill No. 618 as amended October 6, 2011
assessments
and other objective criteria as a significant 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. Property occupied by an urban high
school academy and used exclusively for educational purposes is
exempt from real and personal property taxes. 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. 524. (1) An urban high school academy may be located in
all or part of an existing public school building. Except as
otherwise provided in this subsection, an urban high school academy
shall not operate at a site other than the single site requested
for the configuration of grades that will use the site, as
specified in the contract. However, an authorizing body may include
a provision in the contract allowing an urban high school academy
to
operate the same configuration of grades at more than 1 site. If
an
urban high school academy operates the same configuration of
grades
at more than 1 site, each of those sites shall be considered
to
be operated under a separate contract, and the operation shall
be
equivalent to the issuance of a contract, for the purposes of
the
limitation in section 522(2) on the number of contracts that
may
be issued under this part. For the purposes of this subsection,
if
an urban high school academy operates classes at more than 1
location,
the urban high school academy shall be considered to be
operating
at a single site if all of the locations are within a 1-
mile
radius of the urban high school academy's central
administrative
office and if the total number of pupils enrolled in
any
particular grade at all of the locations does not exceed 135.
(2) An urban high school academy shall not charge tuition.
Except as otherwise provided in this section, an urban high school
academy shall not discriminate in its pupil admissions policies or
practices on the basis of intellectual or athletic ability,
measures of achievement or aptitude, status as a handicapped
person, or any other basis that would be illegal if used by a
school district. However, an urban high school academy may limit
admission to pupils who are within a particular range of age or
grade level or on any other basis that would be legal if used by a
school district and may give enrollment priority as provided in
subsection (4).
(3) Except for a foreign exchange student who is not a United
States citizen, an urban high school academy shall not enroll a
pupil who is not a resident of this state. Enrollment in an urban
high school academy shall be open to all pupils who reside in this
state who meet the admission policy. Subject to subsection (4), if
there are more applications to enroll in the urban high school
academy than there are spaces available, pupils shall be selected
to attend using a random selection process. An urban high school
academy shall allow any pupil who was enrolled in the urban high
school academy in the immediately preceding school year to enroll
in the urban high school academy in the appropriate grade unless
the appropriate grade is not offered at that urban high school
academy.
(4) An urban high school academy may give enrollment priority
to 1 or more of the following:
(a) A sibling of a pupil enrolled in the urban high school
academy.
(b) A child of a person who is employed by or at the urban
high school academy or who is on the board of directors of the
urban high school academy. As used in this subdivision, "child"
includes an adopted child or a legal ward.
(5) Subject to the terms of the contract authorizing the urban
high school academy, an urban high school academy shall include at
least grades 9 through 12 within 5 years after beginning operations
and may include other grades or any configuration of those grades,
including kindergarten and early childhood education, as specified
in its contract. If specified in its contract, an urban high school
academy may also operate an adult basic education program, adult
high school completion program, or general education development
testing preparation program.
Sec. 528. (1) An authorizing body that issues a contract for
an urban high school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Adopt a resolution establishing the method of selection,
length of term, and number of members of the board of directors of
each urban high school academy that it authorizes.
(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 abide by and
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) (5)
The decision of an authorizing body
to issue, reissue,
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, reissue, or reconstitute
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) (6)
Before Except as otherwise
provided in subsection (5),
before an authorizing body revokes a contract, the authorizing body
shall
may consider and take corrective measures to avoid
revocation.
An authorizing body shall 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
525 for an agreement described in section 1320, 527, or
appointing a new board of directors or a trustee to take over
operation of the urban high school academy.
(8) (7)
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 received 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) (8)
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) (9)
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) (10)
If an urban high school academy's
contract
terminates or is revoked, title to all real and personal property,
interest in real or personal property, and other assets owned by
the urban high school academy shall revert to the state. This
property shall be distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of an urban high school academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the urban high school academy
corporation, all in accordance with chapter 8 of the nonprofit
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.
(b) The urban high school academy shall file a certificate of
dissolution
with the department of consumer and industry services
bureau of commercial services 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. 551. (1) A school of excellence is a public school under
section 2 of article VIII of the state constitution of 1963, is a
school district for the purposes of section 11 of article IX of the
state constitution of 1963 and for the purposes of section 1225 and
section 1351a, and is subject to the leadership and general
supervision of the state board over all public education under
section 3 of article VIII of the state constitution of 1963. A
school of excellence is a body corporate and is a governmental
agency. The powers granted to a school of excellence under this
part constitute the performance of essential public purposes and
governmental functions of this state.
(2) As used in this part:
(a) "Authorizing body" means any of the following that issues
a contract as provided in this part:
(i) The board of a school district that operates grades K to
12.
(ii) An intermediate school board.
(iii) The board of a community college.
(iv) The governing board of a state public university.
(v) Two or more of the public agencies described in
subparagraphs (i) to (iv) 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.
(b) "Certificated teacher" means an individual who holds a
valid teaching certificate issued by the superintendent of public
instruction under section 1531.
(c) "Community college" means a community college organized
under the community college act of 1966, 1966 PA 331, MCL 389.1 to
389.195, or a federal tribally controlled community college that is
recognized under the tribally controlled community college
assistance act of 1978, Public Law 95-471, and is determined by the
department to meet the requirements for accreditation by a
recognized regional accrediting body.
(d) "Contract" means the executive act taken by an authorizing
body that evidences the authorization of a school of excellence and
that establishes, subject to the constitutional powers of the state
board and applicable law, the written instrument executed by an
authorizing body conferring certain rights, franchises, privileges,
and obligations on a school of excellence, as provided by this
part, and confirming the status of a school of excellence as a
public school in this state.
(e) "Cyber school" means a school of excellence established
under this part that has been issued a contract to be organized and
operated as a cyber school under section 552(2) and that provides
full-time instruction to pupils through online learning or
otherwise on a computer or other technology, which instruction and
learning may be remote from a school facility.
(f) "Educational management organization" means an entity that
enters into an agreement with the governing board of a public
school to provide comprehensive educational, administrative,
management, or instructional services or staff to the public
school.
(g) "Entity" means a partnership, nonprofit or business
corporation, labor organization, or any other association,
corporation, trust, or other legal entity.
(h) "State public university" means a state university
described in section 4, 5, or 6 of article VIII of the state
constitution of 1963.
Sec. 552. (1) Except as otherwise provided in subsections (2)
and (3), not more than a combined total of 10 contracts to organize
and operate a school of excellence may be issued by all authorizing
bodies under this subsection. All of the following apply to a
contract issued 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) A contract may not be issued under this subsection after
January 1, 2015.
(c) 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.
(d) 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) A combined total of 2 contracts may be issued by all
authorizing bodies under this subsection for schools of excellence
that are cyber schools and that meet all of the following
additional requirements:
(a) Are available for enrollment to all pupils in this state
who were previously enrolled in a public school.
(b) Offer all of grades K to 12.
(c) The entity applying for the school of excellence that is a
cyber school demonstrates experience in serving urban and at-risk
student populations through an educational model involving a
significant cyber component.
(d) Has an initial enrollment in the school of excellence that
is a cyber school that does not exceed 400 pupils.
(e) In the second and subsequent years of operation under the
contract, a school of excellence that is a cyber school may expand
enrollment to exceed 400 pupils by adding 1 pupil for each pupil
who becomes enrolled in the school of excellence who is identified
as a dropout in the Michigan student data system maintained by the
center for educational performance and information. The school of
excellence that is a cyber school shall annually account for the
number of pupils it enrolls who are identified as a dropout in the
Michigan student data system and report that information to the
department, in a form and manner determined by the superintendent
of public instruction. The school of excellence shall maintain its
ratio of pupils who are identified as a dropout. Maximum enrollment
at a school of excellence that is a cyber school shall not exceed
1,000 pupils.
(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 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, 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.
(b) An intermediate school board. However, 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.
(c)
The board of a community college. 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. 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)
For a school of excellence authorized by a school
district,
an assurance that employees of the school of excellence
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 schools of excellence.
(i) (j)
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.
(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 oversight shall be
sufficient
to ensure that the authorizing body can certify that the
school
of excellence is in compliance with statute, rules, and the
terms
of the contract.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.
(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.
(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% of the total state school aid received by the
school of excellence in the school year in which the fees or
expenses
are charged. All of the following apply to this fee:
(a)
The 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 schools of
excellence.
(iii) Training for school of excellence applicants,
administrators,
and boards of directors.
(iv) Technical assistance to schools of excellence.
(v) Academic support to schools of excellence or to
pupils of
schools
of excellence.
(vi) Evaluation of school of excellence performance.
(vii) Training of teachers.
(viii) Other purposes that assist the school of
excellence or
traditional
public schools in achieving improved academic
performance.
(b)
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.
(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.
(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.
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.
(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 15% 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. and of the
application
under section 552.
(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 school of excellence subject to its
jurisdiction.
(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)
For a school of excellence authorized by a school
district,
an agreement that employees of the school of excellence
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 schools of excellence.
(e) (f)
Procedures for revoking the
contract and grounds for
revoking the contract, including at least the grounds listed in
section 561.
(f) (g)
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) (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.
(h) (i)
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) (j)
A requirement that the board of
directors shall ensure
compliance with the requirements of 1968 PA 317, MCL 15.321 to
15.330.
(j) (k)
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) (l) 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) (m)
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 (h).(g).
(xi) Any other information specifically required under this
act.
(m) (n)
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) (o)
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) (p)
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.
Senate Bill No. 618 as amended October 6, 2011
(p) (q)
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.
(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. Property occupied by a school of excellence
and used exclusively for educational purposes is exempt from real
and personal property taxes. 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. 553a. (1) An authorizing body may issue a contract to
establish a school of excellence that is a cyber school. A cyber
school shall provide full-time instruction to pupils through online
learning or otherwise on a computer or other technology, and this
instruction and learning may occur remote from a school facility.
(2) A contract for a school of excellence that is a cyber
school shall include all of the provisions required under section
553 and all of the following:
(a) A requirement that a teacher who holds appropriate
certification according to state board rule will be responsible for
all of the following for each course in which a pupil is enrolled:
(i) Improving learning by planned instruction.
(ii) Diagnosing the pupil's learning needs.
(iii) Assessing learning, assigning grades, and determining
advancement.
(iv) Reporting outcomes to administrators and parents or legal
guardians.
(b) A requirement that the cyber school will make educational
services available to pupils for a minimum of at least 1,098 hours
during a school year and will ensure that each pupil participates
in the educational program for at least 1,098 hours during a school
year.
(3) Notwithstanding any other provision of this act or any
rule, if a school of excellence that is a cyber school is in
compliance with the requirements of subsection (2)(a) regarding a
certificated teacher, any other adult assisting with the oversight
of a pupil during the pupil's participation in the cyber school's
education program is not required to be a certificated teacher or
an employee of the school.
(4) Notwithstanding any rule to the contrary, a cyber school
is not required to comply with any rule that would require a
pupil's physical presence or attendance in a classroom.
(5)
At the end of a cyber school's second full school year of
operations,
the authorizing body of a school of excellence that is
a
cyber school shall submit to the superintendent of public
instruction
and the legislature, in the form and manner prescribed
by
the superintendent of public instruction, a report detailing the
operation
of the cyber school, providing statistics of pupil
participation
and academic performance, and making recommendations
for
any further statutory or rule change related to cyber schools
and
online learning in this state.
Sec. 556. (1) A school of excellence may be located in all or
part of an existing public school building. A school of excellence,
other than a cyber school operated under section 553a, shall not
operate
at a site other than the single site or sites requested for
the
configuration of grades age
or grade levels that will use the
site or sites,
as specified in the application required under
section
552 and in the contract. In a contract, an authorizing body
may permit a school of excellence to operate the same configuration
of age or grade levels at more than site, and if this is included
in the contract, a school of excellence may operate the same
configuration of age or grade levels at more than 1 site.
(2) A school of excellence shall not charge tuition and shall
not discriminate in its pupil admissions policies or practices on
the basis of intellectual or athletic ability, measures of
achievement or aptitude, status as a student with a disability, or
any other basis that would be illegal if used by a school district.
However, a school of excellence may limit admission to pupils who
are within a particular range of age or grade level or on any other
basis that would be legal if used by a school district and may give
enrollment priority as provided in subsection (4).
(3) Except for a foreign exchange student who is not a United
States citizen, a school of excellence shall not enroll a pupil who
is not a resident of this state. Enrollment in the school of
excellence may be open to all individuals who reside In this state
who meet the admission policy and shall be open to all pupils who
reside
within the geographic boundaries , if any, of
the that
authorizing
body as described in section 552(6)(a) to (c) who meet
the
admission policy. , except that admission to a school of
excellence
authorized by the board of a community college to
operate,
or operated by the board of a community college, on the
grounds
of a federal military installation, as described in section
552(6)(c),
shall be open to all pupils who reside in the county in
which
the federal military installation is located. For a school of
excellence authorized by a community college or a state public
university, enrollment shall be open to all pupils who reside in
this state who meet the admission policy. If there are more
applications to enroll in the school of excellence than there are
spaces available, pupils shall be selected to attend using a random
selection process. A school of excellence shall allow any pupil who
was enrolled in the school of excellence in the immediately
preceding school year to enroll in the school of excellence in the
appropriate grade unless the appropriate grade is not offered at
that school of excellence.
(4) A school of excellence may give enrollment priority to 1
or more of the following:
(a)
A sibling of a pupil enrolled in the public school of
excellence.
(b) A pupil who transfers to the school of excellence from
another public school pursuant to a matriculation agreement between
the school of excellence and another public school that provides
for this enrollment priority, if all of the following requirements
are met:
(i) Each school of excellence or other public school that
enters into the matriculation agreement remains a separate and
independent public school.
(ii) The public school of excellence that gives the enrollment
priority selects at least 5% of its pupils for enrollment using a
random selection process.
(iii) The matriculation agreement allows any pupil who was
enrolled
at any time during elementary school in a school of
excellence
public school that is party to the matriculation
agreement
and who was not expelled from the school of excellence
public
school to enroll in the public school
of excellence giving
enrollment priority under the matriculation agreement.
(c) A child of a person who is employed by or at the school of
excellence or who is on the board of directors of the school of
excellence. As used in this subdivision, "child" includes an
adopted child or a legal ward.
(5) Subject to subsection (6), a school of excellence may
include any grade up to grade 12 or any configuration of those
grades, including kindergarten and early childhood education, as
specified in its contract. If specified in its contract, a school
of excellence may also operate an adult basic education program,
adult high school completion program, or general education
development testing preparation program. The authorizing body may
approve amendment of a contract with respect to ages of pupils or
grades offered.
(6) In addition to any other grade levels it operates, a
school of excellence shall work toward operating all of grades 9 to
12 within 6 years after it begins operations, unless a
matriculation agreement has been reached with another public school
that provides grades 9 to 12.
(7) If a school of excellence is a cyber school and its
authorizing body is a school district or intermediate school
district, the school of excellence shall give enrollment priority
to pupils who reside in the school district or intermediate school
district that is the authorizing body.
Sec. 559. (1) Except as otherwise provided by law, and except
as otherwise provided under section 553a for a cyber school, a
school of excellence shall use certificated teachers according to
state board rule.
(2)
A school of excellence operated authorized
by a state
public university or community college may use noncertificated
individuals to teach as follows:
(a)
If the school of excellence is operated authorized by a
state public university, the school of excellence may use as a
classroom teacher in any grade a faculty member who is employed
full-time by the state public university and who has been granted
institutional tenure, or has been designated as being on tenure
track, by the state public university.
(b)
For a school of excellence operated authorized by a
community college, the school of excellence may use as a classroom
teacher a full-time member of the community college faculty who has
at least 5 years' experience at that community college in teaching
the subject matter that he or she is teaching at the school of
excellence.
(c) In any other situation in which a school district is
permitted under this act to use noncertificated teachers.
(3) A school of excellence may develop and implement new
teaching techniques or methods or significant revisions to known
teaching techniques or methods, and shall report those to the
authorizing body and state board to be made available to the
public. A school of excellence may use any instructional technique
or delivery method that may be used by a school district.
Sec. 561. (1) If an authorizing body issues a contract for a
school of excellence under this part, the authorizing body shall do
all of the following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each school of
excellence that it authorizes. The authorizing body shall ensure
that the board of directors includes representation from the local
community.
(d) Oversee the operations of each school of excellence
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the school of
excellence is in compliance with the terms of the contract and with
applicable law. This subdivision does not relieve any other
governmental entity of its enforcement or supervisory
responsibility.
(e) Develop and implement a process for holding a school of
excellence board of directors accountable for meeting applicable
academic performance standards set forth in the contract and for
implementing corrective action for a school of excellence that does
not meet those standards.
(f) Take necessary measures to ensure that a school of
excellence board of directors operates independently of any
educational management organization involved in the operations of
the school of excellence.
(g) Oversee and ensure that the pupil admission process used
by the school of excellence is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the school of
excellence maintains and releases information as necessary to
comply with applicable law.
(2) The authorizing body may enter into an agreement with 1 or
more authorizing bodies, as defined under part 6a, to carry out any
function of the authorizing body under subsection (1)(a) to (h).
(3) The authorizing body for a school of excellence is the
fiscal agent for the school of excellence. A state school aid
payment for a school of excellence shall be paid to the authorizing
body as the fiscal agent for that school of excellence, and the
authorizing body shall then forward the payment to the school of
excellence. Within 30 days after a contract is submitted to the
department by the authorizing body under subsection (1), the
department shall issue a district code to the school of excellence
for which the contract was issued. If the department does not issue
a district code within 30 days after a contract is filed, the state
treasurer shall assign a temporary district code in order for the
school of excellence to receive funding under the state school aid
act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a)
Failure of the school of excellence to abide by and
demonstrate improved pupil academic achievement for all groups of
pupils or meet the educational goals set forth in the contract.
(b) Failure of the school of excellence to comply with all
applicable law.
(c) Failure of the school of excellence to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for a school of excellence that is an alternative
school serving a special student population, if the superintendent
of public instruction determines that a school of excellence site
that has been operating for at least 4 years is among the lowest
achieving 5% of all public schools in this state, 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, and 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 school of excellence's authorizing body. If an authorizing body
receives notice from the superintendent of public instruction under
this
subsection, the authorizing body shall revoke amend the
school
of excellence's contract to eliminate the school of excellence's
authority to operate the existing age and grade levels at the site
and
the school of excellence shall be closed, cease operating the
existing age and grade levels at the site, effective at the end of
the current school year. If the school of excellence operates at
only 1 site or is a cyber school, and the authorizing body receives
notice from the superintendent of public instruction under this
subsection, the authorizing body shall revoke the school of
excellence's contract, effective at the end of the current school
year.
(6) Except for a contract issued by a school district pursuant
to a vote by the school electors on a ballot question under section
553(2),
the decision of the authorizing body to issue, reissue, not
issue, or reconstitute a contract under this part, or to terminate
or revoke a contract under this section, is solely within the
discretion of the authorizing body, is final, and is not subject to
review by a court or any other state agency. If the authorizing
body
issues, does not issue, reissue, or reconstitute or
reconstitutes a contract under this part, or terminates or revokes
a contract under this section, the authorizing body is not liable
for that action to the school of excellence, the school of
excellence corporation, a pupil of the school of excellence, the
parent or guardian of a pupil of the school of excellence, or any
other person.
(7) Except as otherwise provided in subsection (5), before the
authorizing
body revokes a contract, the authorizing body shall may
consider and take corrective measures to avoid revocation. The
authorizing body may reconstitute the school of excellence in a
final attempt to improve student educational performance or to
avoid interruption of the educational process. The authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, canceling a contract with an educational management
organization, if any, withdrawing approval to contract under
section
557, 560, or appointing a new board of directors or a
trustee to take over operation of the school of excellence.
(8) If the authorizing body revokes a contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the school of excellence under this part, shall return any
school
aid funds received 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) Not more than 10 days after a school of excellence's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the school of excellence whose contract has terminated or
been revoked and the date of contract termination or revocation.
(10) If a school of excellence's contract terminates or is
revoked, title to all real and personal property, interest in real
or personal property, and other assets owned by the school of
excellence shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of a school of excellence shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the school of excellence corporation,
all in accordance with chapter 8 of the nonprofit corporation act,
1982 PA 162, MCL 450.2801 to 450.2864.
(b) The school of excellence shall file a certificate of
dissolution
with the department of energy, labor, and economic
growth
bureau of commercial services
within 10 business days
following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the school of excellence board
of directors shall provide a copy of the board of directors' plan
of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the school of excellence's winding up of the dissolved corporation
in accordance with the plan of distribution of assets approved or
provided under subdivision (c).
(e) As part of the plan of distribution of assets, the school
of excellence board of directors shall designate the director of
the department of technology, management, and budget, or his or her
designee, to dispose of all real property of the school of
excellence corporation in accordance with the directives developed
for disposition of surplus land and facilities under section 251 of
the management and budget act, 1984 PA 431, MCL 18.1251.
(f) If the board of directors of a school of excellence fails
to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the school of
excellence board of directors and appoint a trustee to carry out
the board's plan of distribution of assets. Upon appointment, the
trustee shall have all the rights, powers, and privileges under law
that the school of excellence board of directors had before being
suspended.
(g) Following the sale of the real or personal property or
Senate Bill No. 618 as amended October 6, 2011
interests in the real or personal property, and after payment of
any school of excellence debt secured by the property or interest
in property, whether real or personal, the school of excellence
board of directors, or a trustee appointed under this section,
shall forward any remaining money to the state treasurer. Following
receipt, the state treasurer, or his or her designee, shall deposit
this remaining money in the state school aid fund.
<<
Senate Bill No. 618 as amended October 6, 2011
Senate Bill No. 618 as amended October 6, 2011
>>
Enacting section 1. Section 501a of the revised school code,
1976 PA 451, MCL 380.501a, is repealed.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No. 619.
(b) Senate Bill No. 620.
(c) Senate Bill No. 621.
