Bill Text: MI SB0682 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Education; public school academies; general amendments to achieve greater accountability; provide for. Amends secs. 502, 503, 503c, 504a, 522, 523, 523c, 525, 552, 553, 553c, 557, 1311d & 1311h of 1976 PA 451 (MCL 380.502 et seq.).

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2013-11-13 - Referred To Committee On Education [SB0682 Detail]

Download: Michigan-2013-SB0682-Introduced.html

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SENATE BILL No. 682

 

 

November 13, 2013, Introduced by Senators HOPGOOD, GREGORY, WHITMER and SMITH and referred to the Committee on Education.

 

 

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 502, 503, 503c, 504a, 522, 523, 523c, 525,

 

552, 553, 553c, 557, 1311d, and 1311h (MCL 380.502, 380.503,

 

380.503c, 380.504a, 380.522, 380.523, 380.523c, 380.525, 380.552,

 

380.553, 380.553c, 380.557, 380.1311d, and 380.1311h), sections

 

502, 503, 522, 523, and 553 as amended and sections 503c, 523c, and

 

553c as added by 2011 PA 277, section 504a as amended and section

 

525 as added by 2003 PA 179, section 552 as amended by 2012 PA 129,

 

section 557 as added by 2009 PA 205, section 1311d as added by 1999

 

PA 23, and section 1311h as amended by 2012 PA 620.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 502. (1) A public school academy shall be organized and

 

administered under the direction of a board of directors in

 

accordance with this part and with bylaws adopted by the board of

 

directors. A public school academy corporation shall be organized

 

under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

 

450.3192, except that a public school academy corporation is not

 

required to comply with sections 170 to 177 of 1931 PA 327, MCL

 

450.170 to 450.177. To the extent disqualified under the state or

 

federal constitution, a public school academy shall not be

 

organized by a church or other religious organization and shall not

 

have any organizational or contractual affiliation with or

 

constitute a church or other religious organization.

 

     (2) Any of the following may act as an authorizing body to

 

issue a contract to organize and operate 1 or more public school

 

academies under this part:

 

     (a) The board of a school district that operates grades K to

 

12. However, the board of a school district shall not issue a

 

contract for a public school academy to operate outside the school

 

district's boundaries, and a public school academy authorized by

 

the board of a school district shall not operate outside that

 

school district's boundaries. For the purposes of this section,

 

"school district" expressly does not include the state school

 

reform/redesign school district created under section 1280c, the

 

education achievement authority, or any other statewide entity.

 

     (b) An intermediate school board. However, the board of an

 

intermediate school district shall not issue a contract for a

 

public school academy to operate outside the intermediate school

 

district's boundaries, and a public school academy authorized by

 

the board of an intermediate school district shall not operate

 

outside that intermediate school district's boundaries.

 

     (c) The board of a community college. However, except as

 

otherwise provided in this subdivision, the board of a community

 

college shall not issue a contract for a public school academy to

 

operate in a school district organized as a school district of the

 

first class, a public school academy authorized by the board of a

 

community college shall not operate in a school district organized

 

as a school district of the first class, the board of a community

 

college shall not issue a contract for a public school academy to

 

operate outside the boundaries of the community college district,

 

and a public school academy authorized by the board of a community

 

college shall not operate outside the boundaries of the community

 

college district. The board of a community college also may issue a

 

contract for not more than 1 public school academy to operate on

 

the grounds of an active or closed federal military installation

 

located outside the boundaries of the community college district,

 

or may operate a public school academy itself on the grounds of

 

such a federal military installation, if the federal military

 

installation is not located within the boundaries of any community

 

college district and the community college has previously offered

 

courses on the grounds of the federal military installation for at

 

least 10 years.

 

     (d) The governing board of a state public university. However,

 

the combined total number of contracts for public school academies

 

issued by all state public universities shall not exceed 300

 

through December 31, 2012 and shall not exceed 500 through December

 

31, 2014. After December 31, 2014, there is no limit on the

 

combined total number of contracts for public school academies that

 

may be issued by all state public universities.

 

     (e) Two or more of the public agencies described in

 

subdivisions (a) to (d) exercising power, privilege, or authority

 

jointly pursuant to an interlocal agreement under the urban

 

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512.

 

     (3) To obtain a contract to organize and operate 1 or more

 

public school academies, 1 or more persons or an entity may apply

 

to an authorizing body described in subsection (2). The application

 

shall include at least all of the following:

 

     (a) Identification of the applicant for the contract.

 

     (b) Subject to the resolution adopted by the authorizing body

 

under section 503(5), a list of the proposed members of the board

 

of directors of the public school academy and a description of the

 

qualifications and method for appointment or election of members of

 

the board of directors.

 

     (c) The proposed articles of incorporation, which shall

 

include at least all of the following:

 

     (i) The name of the proposed public school academy.

 

     (ii) The purposes for the public school academy corporation.

 

This language shall provide that the public school academy is

 

incorporated pursuant to this part and that the public school

 

academy corporation is a governmental entity.

 

     (iii) The name of the authorizing body.

 

     (iv) The proposed time when the articles of incorporation will

 

be effective.

 

     (v) Other matters considered expedient to be in the articles

 

of incorporation.

 

     (d) A copy of the proposed bylaws of the public school

 

academy.

 

     (e) Documentation meeting the application requirements of the

 

authorizing body, including at least all of the following:

 

     (i) The governance structure of the public school academy.

 

     (ii) A copy of the educational goals of the public school

 

academy and the curricula to be offered and methods of pupil

 

assessment to be used by the public school academy. The educational

 

goals shall include demonstrated improved pupil academic

 

achievement for all groups of pupils. To the extent applicable, the

 

progress of the pupils in the public school academy shall be

 

assessed using at least a Michigan education assessment program

 

(MEAP) test or the Michigan merit examination under section 1279g,

 

as applicable.

 

     (iii) The admission policy and criteria to be maintained by the

 

public school academy. The admission policy and criteria shall

 

comply with section 504. This part of the application also shall

 

include a description of how the applicant will provide to the

 

general public adequate notice that a public school academy is

 

being created and adequate information on the admission policy,

 

criteria, and process.

 

     (iv) The school calendar and school day schedule.

 

     (v) The age or grade range of pupils to be enrolled.

 

     (f) Descriptions of staff responsibilities and of the public

 

school academy's governance structure.

 

     (g) For an application to the board of a school district, an

 

intermediate school board, or board of a community college,

 

identification of the local and intermediate school districts in

 

which the public school academy will be located.

 

     (h) An agreement that the public school academy will comply

 

with the provisions of this part and, subject to the provisions of

 

this part, with all other state law applicable to public bodies and

 

with federal law applicable to public bodies or school districts.

 

     (i) A description of and address for the proposed physical

 

plant in which the public school academy will be located. An

 

applicant may request the authorizing body to issue a contract

 

allowing the public school academy board of directors to operate

 

the same configuration of age or grade levels at more than 1 site.

 

     (4) An authorizing body shall oversee, or shall contract with

 

an intermediate school district, community college, or state public

 

university to oversee, each public school academy operating under a

 

contract issued by the authorizing body. The authorizing body is

 

responsible for overseeing compliance by the board of directors

 

with the contract and all applicable law. This subsection does not

 

relieve any other government entity of its enforcement or

 

supervisory responsibility.

 

     (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) Beginning on the effective date of the amendatory act that

 

added this subsection, an authorizing body shall not issue a new

 

contract to organize and operate a new public school academy unless

 

each of the existing public school academies that are operating

 

under a contract from that authorizing body have demonstrated pupil

 

achievement as measured by applicable state assessments at a level

 

that is at least 20% higher than the school district in which the

 

existing public school academy is located.

 

     (7) (6) An authorizing body shall not charge a fee, or require

 

reimbursement of expenses, for considering an application for a

 

contract, for issuing a contract, or for providing oversight of a

 

contract for a public school academy in an amount that exceeds a

 

combined total of 3% 1% of the total state school aid received by

 

the public school academy in the school year in which the fees or

 

expenses are charged. An authorizing body may provide other

 

services for a public school academy and charge a fee for those

 

services, but shall not require such an arrangement as a condition

 

to issuing the contract authorizing the public school academy.

 

     (8) (7) A public school academy shall be presumed to be

 

legally organized if it has exercised the franchises and privileges

 

of a public school academy for at least 2 years.

 

     (8) An authorizing body may enter into an intergovernmental

 

agreement with another authorizing body to issue public school

 

academy contracts. At a minimum, the agreement shall further the

 

purposes set forth in section 501, describe which authorizing body

 

shall issue the contract, and set forth which authorizing body will

 

be responsible for monitoring compliance by the board of directors

 

of the public school academy with the contract and all applicable

 

law.

 

     Sec. 503. (1) An authorizing body is not required to issue a

 

contract to any person or entity. Subject to subsection (2), public

 

school academy contracts shall be issued on a competitive basis. In

 

deciding whether to issue a contract for a proposed public school

 

academy, an authorizing body shall consider all of the following:

 

     (a) The resources available for the proposed public school

 

academy.

 

     (b) The population to be served by the proposed public school

 

academy.

 

     (c) The educational goals to be achieved by the proposed

 

public school academy.

 

     (d) The applicant's track record, if any, in organizing public

 

school academies or other public schools.

 

     (e) The graduation rate of a school district in which the

 

proposed public school academy is proposed to be located.

 

     (f) The population of a county in which the proposed public

 

school academy is proposed to be located.

 

     (g) The number of schools in the proximity of a proposed

 

location of the proposed public school academy that are on the list

 

under section 1280c(1) of the public schools in this state that the

 

department has determined to be among the lowest achieving 5% of

 

all public schools in this state.

 

     (h) The number of pupils on waiting lists of public school

 

academies in the proximity of a proposed location of the proposed

 

public school academy.

 

     (2) An authorizing body may give priority to a proposed public

 

school academy that is intended to replace a public school academy

 

that has been closed pursuant to due to action taken under section

 

507(5), that will operate all of the same grade levels as the

 

public school academy that has been closed, and that will work

 

toward operating all of grades 9 to 12 within 6 years after it

 

begins operations unless a matriculation agreement has been entered

 

into with another public school that provides grades 9 to 12.

 

     (3) If a person or entity applies to the board of a school

 

district for a contract to organize and operate 1 or more public

 

school academies within the boundaries of the school district and

 

the board does not issue the contract, the person or entity may

 

petition the board to place the question of issuing the contract on

 

the ballot to be decided by the school electors of the school

 

district. The petition shall contain all of the information

 

required to be in the contract application under section 502 and

 

shall be signed by a number of school electors of the school

 

district equal to at least 5% of the total number of school

 

electors of that school district. The petition shall be filed with

 

the school district filing official. If the board receives a

 

petition meeting the requirements of this subsection, the board

 

shall have the question of issuing the contract placed on the

 

ballot at its next regular school election held at least 60 days

 

after receiving the petition. If a majority of the school electors

 

of the school district voting on the question vote to issue the

 

contract, the board shall issue the contract.

 

     (4) Within 10 days after issuing a contract for a public

 

school academy, the authorizing body shall submit to the

 

superintendent of public instruction a copy of the contract.

 

     (5) An authorizing body shall adopt a resolution establishing

 

the method of selection, length of term, and number of members of

 

the board of directors of each public school academy subject to its

 

jurisdiction. The resolution shall be written or amended as

 

necessary to include a requirement that each member of the board of

 

directors must be a citizen of the United States.

 

     (6) A contract issued to organize and administer a public

 

school academy shall contain at least all of the following:

 

     (a) The educational goals the public school academy is to

 

achieve and the methods by which it will be held accountable. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of a public school academy shall

 

be assessed using at least a Michigan education assessment program

 

(MEAP) test or the Michigan merit examination under section 1279g,

 

as applicable.

 

     (b) A description of the method to be used to monitor the

 

public school academy's compliance with applicable law and its

 

performance in meeting its targeted educational objectives.

 

     (c) A description of the process for amending the contract

 

during the term of the contract.

 

     (d) All of the matters set forth in the application for the

 

contract.

 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 507.

 

     (f) A description of and address for the proposed physical

 

plant in which the public school academy will be located. An

 

authorizing body may include a provision in the contract allowing

 

the board of directors of the public school academy to operate the

 

same configuration of age or grade levels at more than 1 site if

 

each configuration of age or grade levels and each site identified

 

in the contract are under the direction and control of the board of

 

directors.

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by a

 

certified public accountant in accordance with generally accepted

 

governmental auditing principles.

 

     (h) The term of the contract and a description of the process

 

and standards for renewal of the contract at the end of the term.

 

The standards for renewal shall include increases in academic

 

achievement for all groups of pupils as measured by assessments and

 

other objective criteria as the most important factor in the

 

decision of whether or not to renew the contract.

 

     (i) A certification, signed by an authorized member of the

 

board of directors of the public school academy, that the public

 

school academy will comply with the contract and all applicable

 

law.

 

     (j) A requirement that the board of directors of the public

 

school academy shall ensure compliance with the requirements of

 

1968 PA 317, MCL 15.321 to 15.330.

 

     (k) A requirement that the board of directors of the public

 

school academy shall prohibit specifically identified family

 

relationships between members of the board of directors,

 

individuals who have an ownership interest in or who are officers

 

or employees of an educational management organization involved in

 

the operation of the public school academy, and employees of the

 

public school academy. The contract shall identify the specific

 

prohibited relationships consistent with applicable law.

 

     (l) A requirement that the board of directors of the public

 

school academy shall make information concerning its operation and

 

management available to the public and to the authorizing body in

 

the same manner as is required by state law for school districts.

 

     (m) A requirement that the board of directors of the public

 

school academy shall collect, maintain, and make available to the

 

public and the authorizing body, in accordance with applicable law

 

and the contract, at least all of the following information

 

concerning the operation and management of the public school

 

academy:

 

     (i) A copy of the contract issued by the authorizing body for

 

the public school academy.

 

     (ii) A list of currently serving members of the board of

 

directors of the public school academy, including name, address,

 

and term of office; copies of policies approved by the board of

 

directors; board meeting agendas and minutes; a copy of the budget

 

approved by the board of directors and of any amendments to the

 

budget; and copies of bills paid for amounts of $10,000.00 or more

 

as they were submitted to the board of directors.

 

     (iii) Quarterly financial reports submitted to the authorizing

 

body.

 

     (iv) A current list of teachers and school administrators

 

working at the public school academy that includes their individual

 

salaries as submitted to the registry of educational personnel;

 

copies of the teaching or school administrator's certificates or

 

permits of current teaching and administrative staff; and evidence

 

of compliance with the criminal background and records checks and

 

unprofessional conduct check required under sections 1230, 1230a,

 

and 1230b for all teachers and administrators working at the public

 

school academy.

 

     (v) Curriculum documents and materials given to the

 

authorizing body.

 

     (vi) Proof of insurance as required by the contract.

 

     (vii) Copies of facility leases or deeds, or both, and of any

 

equipment leases.

 

     (viii) Copies of any management contracts or services contracts

 

approved by the board of directors.

 

     (ix) All health and safety reports and certificates, including

 

those relating to fire safety, environmental matters, asbestos

 

inspection, boiler inspection, and food service.

 

     (x) Any management letters issued as part of the annual

 

financial audit under subdivision (g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (n) A requirement that the authorizing body must review and

 

may disapprove any agreement between the board of directors of the

 

public school academy and an educational management organization

 

before the agreement is final and valid. An authorizing body may

 

disapprove an agreement described in this subdivision only if the

 

agreement is contrary to the contract or applicable law.

 

     (o) A requirement that the board of directors of the public

 

school academy shall demonstrate all of the following to the

 

satisfaction of the authorizing body with regard to its pupil

 

admission process:

 

     (i) That the public school academy has made a reasonable effort

 

to advertise its enrollment openings.

 

     (ii) That the open enrollment period for the public school

 

academy is for a duration of at least 2 weeks and that the

 

enrollment times include some evening and weekend times.

 

     (p) A requirement that the board of directors of the public

 

school academy shall prohibit any individual from being employed by

 

the public school academy in more than 1 full-time position and

 

simultaneously being compensated at a full-time rate for each of

 

those positions.

 

     (7) A public school academy shall comply with all applicable

 

law, including all of the following:

 

     (a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (b) The freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.

 

     (f) Laws concerning participation in state assessments, data

 

collection systems, state level student growth models, state

 

accountability and accreditation systems, and other public

 

comparative data collection required for public schools.

 

     (8) A public school academy and its incorporators, board

 

members, officers, employees, and volunteers have governmental

 

immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An

 

authorizing body and its board members, officers, and employees are

 

immune from civil liability, both personally and professionally,

 

for an act or omission in authorizing a public school academy if

 

the authorizing body or the person acted or reasonably believed he

 

or she acted within the authorizing body's or the person's scope of

 

authority.

 

     (9) A public school academy is exempt from all taxation on its

 

earnings and property. Instruments of conveyance to or from a

 

public school academy are exempt from all taxation including taxes

 

imposed by 1966 PA 134, MCL 207.501 to 207.513. Unless the property

 

is already fully exempt from real and personal property taxes under

 

the general property tax act, 1893 PA 206, MCL 211.1 to 211.155,

 

property occupied by a public school academy and used exclusively

 

for educational purposes is exempt from real and personal property

 

taxes levied for school operating purposes under section 1211, to

 

the extent exempted under that section, and from real and personal

 

property taxes levied under the state education tax act, 1993 PA

 

331, MCL 211.901 to 211.906. A public school academy may not levy

 

ad valorem property taxes or another tax for any purpose. However,

 

operation of 1 or more public school academies by a school district

 

or intermediate school district does not affect the ability of the

 

school district or intermediate school district to levy ad valorem

 

property taxes or another tax.

 

     (10) A public school academy may acquire by purchase, gift,

 

devise, lease, sublease, installment purchase agreement, land

 

contract, option, or by any other means, hold and own in its own

 

name buildings and other property for school purposes, and

 

interests therein, and other real and personal property, including,

 

but not limited to, interests in property subject to mortgages,

 

security interests, or other liens, necessary or convenient to

 

fulfill its purposes. For the purposes of condemnation, a public

 

school academy may proceed under the uniform condemnation

 

procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding

 

sections 6 to 9 of that act, MCL 213.56 to 213.59, or other

 

applicable statutes, but only with the express, written permission

 

of the authorizing body in each instance of condemnation and only

 

after just compensation has been determined and paid.

 

     (11) A member of the board of directors of a public school

 

academy is a public officer and shall, before entering upon the

 

duties of the office, take the constitutional oath of office for

 

public officers under section 1 of article XI of the state

 

constitution of 1963.

 

     Sec. 503c. (1) Beginning with management agreements described

 

in this section that are entered into or renewed after the

 

effective date of this section, if If the board of directors of a

 

public school academy enters into or renews a management agreement

 

with an educational management organization to carry out the

 

operations of the public school academy, both all of the following

 

apply:

 

     (a) The board of directors shall post a copy of the management

 

agreement on the public school academy's website, with a link on

 

the public school academy's website homepage, in a form and manner

 

prescribed by the department.

 

     (b) (a) The management agreement shall require the educational

 

management organization to provide to the board of directors at

 

least annually all of the same information that a school district

 

is required to disclose under section 18(2) of the state school aid

 

act of 1979, MCL 388.1618, for the most recent school fiscal year

 

for which that information is available.

 

     (c) (b) Within 30 days after receiving the information under

 

subdivision (a), (b), the board of directors shall make all of the

 

information it receives under subdivision (a) (b) available through

 

a link on the public school academy's website homepage, in a form

 

and manner prescribed by the department.

 

     (2) As used in this section:

 

     (a) "Educational management organization" means an entity that

 

enters into a management agreement with a public school academy.

 

     (b) "Entity" means a partnership, nonprofit or business

 

corporation, or any other association, corporation, trust, or other

 

legal entity.

 

     (c) "Management agreement" means an agreement to provide

 

comprehensive educational, administrative, management, or

 

instructional services or staff to a public school academy.

 

     (d) "School fiscal year" means the period that begins July 1

 

and ends June 30.

 

     Sec. 504a. In addition to other powers set forth in this part,

 

a public school academy may take action to carry out the purposes

 

for which it was incorporated under this part, including, but not

 

limited to, all of the following:

 

     (a) To sue and be sued in its name.

 

     (b) Subject to section 503b, to acquire, hold, and own in its

 

own name real and personal property, or interests in real or

 

personal property, for educational purposes by purchase, gift,

 

grant, devise, bequest, lease, sublease, installment purchase

 

agreement, land contract, option, or condemnation, and subject to

 

mortgages, security interests, or other liens; and to sell or

 

convey the property as the interests of the public school academy

 

require.

 

     (c) To receive, disburse, and pledge funds for lawful

 

purposes.

 

     (d) To enter into binding legal agreements with persons or

 

entities as necessary for the operation, management, financing, and

 

maintenance of the public school academy. However, a public school

 

academy shall not enter into a management agreement with an

 

educational management organization that operates on a for-profit

 

basis. As used in this subdivision, "educational management

 

organization" and "management agreement" mean those terms as

 

defined in section 503c.

 

     (e) To incur temporary debt in accordance with section 1225.

 

     (f) To solicit and accept any grants or gifts for educational

 

purposes and to establish or permit to be established on its behalf

 

1 or more nonprofit corporations the purpose of which is to assist

 

the public school academy in the furtherance of its public

 

purposes.

 

     (g) To borrow money and issue bonds in accordance with section

 

1351a and in accordance with part VI of the revised municipal

 

finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the

 

borrowing of money and issuance of bonds by a public school academy

 

is not subject to section 1351a(4) or section 1351(2) to (4). Bonds

 

issued under this section shall be full faith and credit

 

obligations of the public school academy, pledging the general

 

funds or any other money available for such a purpose. Bonds issued

 

under this section are subject to the revised municipal finance

 

act, 2001 PA 34, MCL 141.2101 to 141.2821.

 

     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.

 

     (3) A contract issued under this part shall be issued for an

 

initial term of 10 years. If the urban high school academy meets

 

the educational goals set forth in the contract and operates in

 

substantial compliance with this part, the authorizing body shall

 

automatically renew the contract for a subsequent 10-year term.

 

     (4) To obtain a contract to organize and operate 1 or more

 

urban high school academies, an entity may apply to an authorizing

 

body described in subsection (2). The contract shall be issued to

 

an urban high school academy corporation designated by the entity

 

applying for the contract. The application shall include at least

 

all of the following:

 

     (a) Name of the entity applying for the contract.

 

     (b) Subject to the resolution adopted by the authorizing body

 

under section 528, a list of the proposed members of the board of

 

directors of the urban high school academy and a description of the

 

qualifications and method for appointment or election of members of

 

the board of directors.

 

     (c) The proposed articles of incorporation, which shall

 

include at least all of the following:

 

     (i) The name of the proposed urban high school academy to which

 

the contract will be issued.

 

     (ii) The purposes for the urban high school academy

 

corporation. This language shall provide that the urban high school

 

academy is incorporated pursuant to this part and that the urban

 

high school academy corporation is a governmental entity and

 

political subdivision of this state.

 

     (iii) The name of the authorizing body.

 

     (iv) The proposed time when the articles of incorporation will

 

be effective.

 

     (v) Other matters considered expedient to be in the articles

 

of incorporation.

 

     (d) A copy of the proposed bylaws of the urban high school

 

academy.

 

     (e) Documentation meeting the application requirements of the

 

authorizing body, including at least all of the following:

 

     (i) The governance structure of the urban high school academy.

 

     (ii) A copy of the educational goals of the urban high school

 

academy and the curricula to be offered and methods of pupil

 

assessment to be used by the urban high school academy. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the progress of the pupils in the urban high school

 

academy shall be assessed using at least a Michigan education

 

assessment program (MEAP) test or the Michigan merit examination

 

under section 1279g, as applicable.

 

     (iii) The admission policy and criteria to be maintained by the

 

urban high school academy. The admission policy and criteria shall

 

comply with section 524. This part of the application also shall

 

include a description of how the applicant will provide to the

 

general public adequate notice that an urban high school academy is

 

being created and adequate information on the admission policy,

 

criteria, and process.

 

     (iv) The school calendar and school day schedule.

 

     (v) The age or grade range of pupils to be enrolled.

 

     (f) Descriptions of staff responsibilities and of the urban

 

high school academy's governance structure.

 

     (g) A description of and address for the proposed building or

 

buildings in which the urban high school academy will be located,

 

and a financial commitment by the entity applying for the contract

 

to construct or renovate the building or buildings that will be

 

occupied by the urban high school academy that is issued the

 

contract.

 

     (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) Beginning on the effective date of the amendatory act that

 

added this subsection, a state public university shall not issue a

 

new contract to organize and operate a new urban high school

 

academy unless each of the existing public school academies that

 

are operating under a contract from that state public university

 

have demonstrated pupil achievement as measured by applicable state

 

assessments at a level that is at least 20% higher than the school

 

district in which the existing public school academy is located.

 

     (7) (6) If the superintendent of public instruction finds that

 

an authorizing body is not engaging in appropriate continuing

 

oversight of 1 or more urban high school academies operating under

 

a contract issued by the authorizing body, the superintendent of

 

public instruction may suspend the power of the authorizing body to

 

issue new contracts to organize and operate urban high school

 

academies. A contract issued by the authorizing body during the

 

suspension is void. A contract issued by the authorizing body

 

before the suspension is not affected by the suspension.

 

     (8) (7) An authorizing body shall not charge a fee, or require

 

reimbursement of expenses, for considering an application for a

 

contract, for issuing a contract, or for providing oversight of a

 

contract for an urban high school academy in an amount that exceeds

 

a combined total of 3% 1% of the total state school aid received by

 

the urban high school academy in the school year in which the fees

 

or expenses are charged. All of the following apply to this fee:

 

     (a) An authorizing body may use this fee only for the

 

following purposes:

 

     (i) Considering applications and issuing or administering

 

contracts.

 

     (ii) Compliance monitoring and oversight of urban high school

 

academies.

 

     (iii) Training for urban high school academy applicants,

 

administrators, and boards of directors.

 

     (iv) Technical assistance to urban high school academies.

 

     (v) Academic support to urban high school academies or to

 

pupils or graduates of urban high school academies.

 

     (vi) Evaluation of urban high school academy performance.

 

     (vii) Training of teachers, including supervision of teacher

 

interns.

 

     (viii) Other purposes that assist the urban high school

 

academies or traditional public schools in achieving improved

 

academic performance.

 

     (b) An authorizing body may provide other services for an

 

urban high school academy and charge a fee for those services, but

 

shall not require such an arrangement as a condition to issuing the

 

contract authorizing the urban high school academy.

 

     (9) (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 5 years after beginning operation.

 

     (b) The proposed school will occupy a building or buildings

 

that are newly constructed or renovated after January 1, 2003.

 

     (c) The proposed school has a stated goal of increasing high

 

school graduation rates.

 

     (d) The proposed school has received commitments for financial

 

and educational support from the entity applying for the contract.

 

     (e) The entity that submits the application for a contract has

 

net assets of at least $50,000,000.00.

 

     (2) A contract issued to organize and administer an urban high

 

school academy shall contain at least all of the following:

 

     (a) The educational goals the urban high school academy is to

 

achieve and the methods by which it will be held accountable. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of an urban high school academy

 

shall be assessed using at least a Michigan education assessment

 

program (MEAP) test or the Michigan merit examination developed

 

under section 1279g, as applicable.

 

     (b) A description of the method to be used to monitor the

 

urban high school academy's compliance with applicable law and its

 

performance in meeting its targeted educational objectives.

 

     (c) A description of the process for amending the contract

 

during the term of the contract. An authorizing body may approve

 

amendment of the contract with respect to any provision contained

 

in the contract.

 

     (d) A certification, signed by an authorized member of the

 

urban high school academy board of directors, that the urban high

 

school academy will comply with the contract and all applicable

 

law.

 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract.

 

     (f) A description of and address for the proposed building or

 

buildings in which the urban high school academy will be located.

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by an

 

independent certified public accountant in accordance with

 

generally accepted governmental auditing principles.

 

     (h) A requirement that the board of directors shall ensure

 

compliance with the requirements of 1968 PA 317, MCL 15.321 to

 

15.330.

 

     (i) A requirement that the board of directors shall prohibit

 

specifically identified family relationships between members of the

 

board of directors, individuals who have an ownership interest in

 

or who are officers or employees of an educational management

 

company involved in the operation of the urban high school academy,

 

and employees of the urban high school academy. The contract shall

 

identify the specific prohibited relationships consistent with

 

applicable law.

 

     (j) A requirement that the board of directors of the urban

 

high school academy shall make information concerning its operation

 

and management available to the public and to the authorizing body

 

in the same manner as is required by state law for school

 

districts.

 

     (k) A requirement that the board of directors of the urban

 

high school academy shall collect, maintain, and make available to

 

the public and the authorizing body, in accordance with applicable

 

law and the contract, at least all of the following information

 

concerning the operation and management of the urban high school

 

academy:

 

     (i) A copy of the contract issued by the authorizing body for

 

the urban high school academy.

 

     (ii) A list of currently serving members of the board of

 

directors of the urban high school academy, including name,

 

address, and term of office; copies of policies approved by the

 

board of directors; board meeting agendas and minutes; copy of the

 

budget approved by the board of directors and of any amendments to

 

the budget; and copies of bills paid for amounts of $10,000.00 or

 

more as they were submitted to the board of directors.

 

     (iii) Quarterly financial reports submitted to the authorizing

 

body.

 

     (iv) A current list of teachers working at the urban high

 

school academy that includes their individual salaries as submitted

 

to the registry of educational personnel; copies of the teaching

 

certificates or permits of current teaching staff; and evidence of

 

compliance with the criminal background and records checks and

 

unprofessional conduct check required under sections 1230, 1230a,

 

and 1230b for all teachers and administrators working at the urban

 

high school academy.

 

     (v) Curriculum documents and materials given to the

 

authorizing body.

 

     (vi) Proof of insurance as required by the contract.

 

     (vii) Copies of facility leases or deeds, or both, and of any

 

equipment leases.

 

     (viii) Copies of any management contracts or services contracts

 

approved by the board of directors.

 

     (ix) All health and safety reports and certificates, including

 

those relating to fire safety, environmental matters, asbestos

 

inspection, boiler inspection, and food service.

 

     (x) Any management letters issued as part of the annual

 

financial audit under subdivision (g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (l) A requirement that the authorizing body must review and may

 

disapprove any agreement between the board of directors and an

 

educational management company before the agreement is final and

 

valid. An authorizing body may disapprove an agreement described in

 

this subdivision only if the agreement is contrary to the contract

 

or applicable law.

 

     (m) A requirement that the board of directors shall

 

demonstrate all of the following to the satisfaction of the

 

authorizing body with regard to its pupil admission process:

 

     (i) That the urban high school academy has made a reasonable

 

effort to advertise its enrollment openings.

 

     (ii) That the urban high school academy has made the following

 

additional efforts to recruit pupils who are eligible for special

 

education programs and services to apply for admission:

 

     (A) Reasonable efforts to advertise all enrollment openings to

 

organizations and media that regularly serve and advocate for

 

individuals with disabilities within the boundaries of the

 

intermediate school district in which the urban high school academy

 

is located.

 

     (B) Inclusion in all pupil recruitment materials of a

 

statement that appropriate special education services will be made

 

available to pupils attending the school as required by law.

 

     (iii) That the open enrollment period for the urban high school

 

academy is for a duration of at least 2 weeks and that the

 

enrollment times include some evening and weekend times.

 

     (n) A requirement that the board of directors shall prohibit

 

any individual from being employed by the urban high school academy

 

in more than 1 full-time position and simultaneously being

 

compensated at a full-time rate for each of those positions.

 

     (o) A requirement that, if requested, the board of directors

 

shall report to the authorizing body the total compensation for

 

each individual working at the urban high school academy.

 

     (p) The term of the contract and a description of the process

 

and standards for renewal of the contract at the end of the term.

 

The standards for renewal shall include increases in academic

 

achievement for all groups of pupils as measured by assessments and

 

other objective criteria as the most important factor in the

 

decision of whether or not to renew the contract.

 

     (3) An urban high school academy shall comply with all

 

applicable law, including all of the following:

 

     (a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (b) The freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (e) 1978 PA 566, MCL 15.181 to 15.185.

 

     (f) 1968 PA 317, MCL 15.321 to 15.330.

 

     (g) The uniform budgeting and accounting act, 1968 PA 2, MCL

 

141.421 to 141.440a.

 

     (h) The revised municipal finance act, 2001 PA 34, MCL

 

141.2101 to 141.2821.

 

     (i) The federal no child left behind act of 2001, Public Law

 

107-110, 115 Stat. 1425.

 

     (j) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, 1274, and

 

1280.

 

     (k) Laws concerning participation in state assessments, data

 

collection systems, state level student growth models, state

 

accountability and accreditation systems, and other public

 

comparative data collection required for public schools.

 

     (4) An urban high school academy and its incorporators, board

 

members, officers, employees, and volunteers have governmental

 

immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An

 

authorizing body and its board members, officers, and employees are

 

immune from civil liability, both personally and professionally,

 

for any acts or omissions in authorizing or oversight of an urban

 

high school academy if the authorizing body or the person acted or

 

reasonably believed he or she acted within the authorizing body's

 

or the person's scope of authority.

 

     (5) An urban high school academy is exempt from all taxation

 

on its earnings and property. Unless the property is already fully

 

exempt from real and personal property taxes under the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.155, property

 

occupied by an urban high school academy and used exclusively for

 

educational purposes is exempt from real and personal property

 

taxes levied for school operating purposes under section 1211, to

 

the extent exempted under that section, and from real and personal

 

property taxes levied under the state education tax act, 1993 PA

 

331, MCL 211.901 to 211.906. Instruments of conveyance to or from

 

an urban high school academy are exempt from all taxation,

 

including taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. An

 

urban high school academy may not levy ad valorem property taxes or

 

any other tax for any purpose.

 

     (6) An urban high school academy may acquire by purchase,

 

gift, devise, lease, sublease, installment purchase agreement, land

 

contract, option, or any other means, hold, and own in its own name

 

buildings and other property for school purposes, and interests

 

therein, and other real and personal property, including, but not

 

limited to, interests in property subject to mortgages, security

 

interests, or other liens, necessary or convenient to fulfill its

 

purposes. For the purposes of condemnation, an urban high school

 

academy may proceed under the uniform condemnation procedures act,

 

1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of that

 

act, MCL 213.56 to 213.59, or other applicable statutes, but only

 

with the express, written permission of the authorizing body in

 

each instance of condemnation and only after just compensation has

 

been determined and paid.

 

     Sec. 523c. (1) Beginning with management agreements described

 

in this section that are entered into or renewed after the

 

effective date of this section, if If the board of directors of an

 

urban high school academy enters into or renews a management

 

agreement with an educational management organization to carry out

 

the operations of the urban high school academy, both all of the

 

following apply:

 

     (a) The board of directors shall post a copy of the management

 

agreement on the urban high school academy's website, with a link

 

on the urban high school academy's website homepage, in a form and

 

manner prescribed by the department.

 

     (b) (a) The management agreement shall require the educational

 

management organization to provide to the board of directors at

 

least annually all of the same information that a school district

 

is required to disclose under section 18(2) of the state school aid

 

act of 1979, MCL 388.1618, for the most recent school fiscal year

 

for which that information is available.

 

     (c) (b) Within 30 days after receiving the information under

 

subdivision (a), (b), the board of directors shall make all of the

 

information it receives under subdivision (a) (b) available through

 

a link on the urban high school academy's website homepage, in a

 

form and manner prescribed by the department.

 

     (2) As used in this section:

 

     (a) "Educational management organization" means an entity that

 

enters into a management agreement with an urban high school

 

academy.

 

     (b) "Entity" means a partnership, nonprofit or business

 

corporation, or any other association, corporation, trust, or other

 

legal entity.

 

     (c) "Management agreement" means an agreement to provide

 

comprehensive educational, administrative, management, or

 

instructional services or staff to an urban high school academy.

 

     (d) "School fiscal year" means the period that begins July 1

 

and ends June 30.

 

     Sec. 525. In addition to other powers set forth in this part,

 

an urban high school academy may take action to carry out the

 

purposes for which it was incorporated under this part, including,

 

but not limited to, all of the following:

 

     (a) To sue and be sued in its name.

 

     (b) Subject to section 523a, to acquire, hold, and own in its

 

own name real and personal property, or interests in real or

 

personal property, for educational purposes by purchase, gift,

 

grant, devise, bequest, lease, sublease, installment purchase

 

agreement, land contract, option, or condemnation, and subject to

 

mortgages, security interests, or other liens; and to sell or

 

convey the property as the interests of the urban high school

 

academy require.

 

     (c) To receive, disburse, and pledge funds for lawful

 

purposes.

 

     (d) To enter into binding legal agreements with persons or

 

entities as necessary for the operation, management, financing, and

 

maintenance of the urban high school academy. However, an urban

 

high school academy shall not enter into a management agreement

 

with an educational management organization that operates on a for-

 

profit basis. As used in this subdivision, "educational management

 

organization" and "management agreement" mean those terms as

 

defined in section 523c.

 

     (e) To incur temporary debt in accordance with section 1225.

 

     (f) To solicit and accept any grants or gifts for educational

 

purposes and to establish or permit to be established on its behalf

 

1 or more nonprofit corporations the purpose of which is to assist

 

the urban high school academy in the furtherance of its public

 

purposes.

 

     (g) To borrow money and issue bonds in accordance with section

 

1351a and in accordance with part VI of the revised municipal

 

finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the

 

borrowing of money and issuance of bonds by an urban high school

 

academy are not subject to section 1351a(4) or section 1351(2) to

 

(4). Bonds issued under this section shall be full faith and credit

 

obligations of the urban high school academy, pledging the general

 

funds or any other money available for such a purpose. Bonds issued

 

under this section are subject to the revised municipal finance

 

act, 2001 PA 34, MCL 141.2101 to 141.2821.

 

     Sec. 552. (1) An authorizing body may issue contracts under

 

this subsection to organize and operate a school of excellence. All

 

of the following apply to the issuance of a contract by an

 

authorizing body under this subsection:

 

     (a) The issuance of the contract must be approved by the

 

superintendent of public instruction. The superintendent of public

 

instruction shall approve issuance of a contract if he or she

 

determines that the proposed school of excellence is modeled after

 

a high-performing school or program.

 

     (b) The first 5 contracts issued by all authorizing bodies

 

under this subsection shall be for schools of excellence that offer

 

1 or more of high school grades 9 to 12, or any combination of

 

those grades, as specified in the contract.

 

     (c) A school of excellence authorized under this subsection

 

shall not be located in a school district that has a graduation

 

rate of over 75%, on average, for the most recent 3 school years

 

for which the data are available, as determined by the department.

 

     (2) Subject to the limitations in this subsection and

 

subsection (14), (15), an authorizing body may issue contracts

 

under this subsection for 1 or more schools of excellence that are

 

cyber schools. Until December 31, 2013, the combined total number

 

of contracts that may be issued by all statewide authorizing bodies

 

under this subsection for schools of excellence that are cyber

 

schools shall not exceed 5. Until December 31, 2014, the combined

 

total number of contracts that may be issued by all statewide

 

authorizing bodies under this subsection for schools of excellence

 

that are cyber schools shall not exceed 10. After December 31,

 

2014, the combined total number of contracts issued by all

 

statewide authorizing bodies under this subsection for schools of

 

excellence that are cyber schools shall not exceed 15. The board of

 

a school district, an intermediate school board, the board of a

 

community college that is not a statewide authorizing body, or 2 or

 

more public agencies acting jointly as described in subsection

 

(6)(e) An authorizing body may not act as the authorizing body for

 

more than 1 school of excellence that is a cyber school. An

 

authorizing body shall not issue a contract for a school of

 

excellence that is a cyber school unless the school of excellence

 

that is a cyber school meets all of the following requirements:

 

     (a) Is available for enrollment to all pupils in this state.

 

     (b) Offers some configuration of or all of grades K to 12.

 

     (c) The entity applying for the school of excellence that is a

 

cyber school demonstrates experience in delivering a quality

 

education program that improves pupil academic achievement. In

 

determining whether this requirement is met, an authorizing body

 

shall refer to the standards for quality online learning

 

established by the national association of charter school

 

authorizers or other similar nationally recognized standards for

 

quality online learning.

 

     (d) The enrollment in the school of excellence that is a cyber

 

school is limited to not more than 2,500 pupils in membership for

 

the first school year of operation of the school of excellence that

 

is a cyber school, not more than 5,000 pupils in membership for the

 

second school year of operation of the school of excellence that is

 

a cyber school, and not more than 10,000 pupils in membership for

 

the third and subsequent school years of operation of the school of

 

excellence that is a cyber school. As used in this subdivision,

 

"membership" means that term as defined in section 6 of the state

 

school aid act of 1979, MCL 388.1606.

 

     (e) The school of excellence that is a cyber school offers

 

each pupil's family a computer and subsidizes the cost of internet

 

access.

 

     (3) For a public school academy operating under part 6a that

 

meets the requirements of subsection (4), with the approval of its

 

authorizing body, the board of directors of the public school

 

academy may adopt a resolution choosing to convert the public

 

school academy to a school of excellence under this part. If the

 

board of directors of a public school academy that meets the

 

requirements of subsection (4) is issued a contract as a school of

 

excellence under this subsection, all the following apply:

 

     (a) The public school academy shall cease to operate as a

 

public school academy under part 6a and shall operate as a school

 

of excellence upon the issuance of a contract or at another time as

 

determined by the authorizing body.

 

     (b) The public school academy shall be considered to be a

 

school of excellence for all purposes upon the issuance of a

 

contract or at another time as determined by the authorizing body,

 

but shall retain its corporate identity.

 

     (c) The conversion of a public school academy under part 6a to

 

a school of excellence operating under this part shall not impair

 

any agreement, mortgage, loan, bond, note or other instrument of

 

indebtedness, or any other agreement entered into by a public

 

school academy while it was operating under part 6a.

 

     (d) The contract issued to the public school academy under

 

part 6a shall automatically terminate upon the issuance of a

 

contract or at another time as determined by the authorizing body.

 

     (4) Subsection (3) applies to a public school academy that is

 

determined by the department to meet all of the following, as

 

applicable:

 

     (a) If the public school academy operates only some or all of

 

grades K to 8, meets at least 1 of the following:

 

     (i) On average over a 3-year period, at least 90% of the pupils

 

enrolled in the public school academy achieved a score of

 

proficient or better on the Michigan education assessment program

 

mathematics and reading tests or successor state assessment

 

program.

 

     (ii) On average over a 3-year period, at least 70% of the

 

pupils enrolled in the public school academy achieved a score of

 

proficient or better on the Michigan education assessment program

 

mathematics and reading tests or successor state assessment program

 

and at least 50% of the pupils enrolled in the public school

 

academy met the income eligibility criteria for the federal free or

 

reduced-price lunch program, as determined under the Richard B.

 

Russell national school lunch act, 42 USC 1751 to 1769i, and

 

reported to the department.

 

     (b) If the public school academy operates grades 9 to 12, at

 

least 80% of the school's pupils graduate from high school or are

 

determined by the department to be on track to graduate from high

 

school, the school has at least 80% average attendance, and the

 

school has at least an 80% postsecondary enrollment rate.

 

     (5) A school of excellence shall be organized and administered

 

under the direction of a board of directors in accordance with this

 

part and with bylaws adopted by the board of directors. A school of

 

excellence shall be organized under the nonprofit corporation act,

 

1982 PA 162, MCL 450.2101 to 450.3192, except that a school of

 

excellence is not required to comply with sections 170 to 177 of

 

1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified

 

under the state or federal constitution, a school of excellence

 

shall not be organized by a church or other religious organization

 

and shall not have any organizational or contractual affiliation

 

with or constitute a church or other religious organization.

 

     (6) Any of the following may act as an authorizing body to

 

issue a contract to organize and operate 1 or more schools of

 

excellence under this part:

 

     (a) The board of a school district that operates grades K to

 

12. However, except as otherwise provided in this subdivision, the

 

board of a school district shall not issue a contract for a school

 

of excellence to operate outside the school district's boundaries,

 

and a school of excellence authorized by the board of a school

 

district shall not operate outside that school district's

 

boundaries. If the board of a school district issues a contract for

 

a school of excellence that is a cyber school, the contract may

 

authorize the school of excellence that is a cyber school to

 

operate outside that school district's boundaries. For the purposes

 

of this section, "school district" expressly does not include the

 

state school reform/redesign school district created under section

 

1280c, the education achievement authority, or any other statewide

 

entity.

 

     (b) An intermediate school board. However, except as otherwise

 

provided in this subdivision, the board of an intermediate school

 

district shall not issue a contract for a school of excellence to

 

operate outside the intermediate school district's boundaries, and

 

a school of excellence authorized by the board of an intermediate

 

school district shall not operate outside that intermediate school

 

district's boundaries. If the board of an intermediate school

 

district issues a contract for a school of excellence that is a

 

cyber school, the contract may authorize the school of excellence

 

that is a cyber school to operate outside that intermediate school

 

district's boundaries.

 

     (c) The board of a community college. Except as otherwise

 

provided in this subdivision, the board of a community college

 

shall not issue a contract for a school of excellence to operate

 

outside the boundaries of the community college district, and a

 

school of excellence authorized by the board of a community college

 

shall not operate outside the boundaries of the community college

 

district. If the board of a community college issues a contract for

 

a school of excellence that is a cyber school, the contract may

 

authorize the school of excellence that is a cyber school to

 

operate outside the boundaries of the community college district.

 

The board of a community college also may issue a contract for not

 

more than 1 school of excellence to operate on the grounds of an

 

active or closed federal military installation located outside the

 

boundaries of the community college district, or may operate a

 

school of excellence itself on the grounds of such a federal

 

military installation, if the federal military installation is not

 

located within the boundaries of any community college district and

 

the community college has previously offered courses on the grounds

 

of the federal military installation for at least 10 years.

 

     (d) The governing board of a state public university.

 

     (e) Two or more of the public agencies described in

 

subdivisions (a) to (d) exercising power, privilege, or authority

 

jointly pursuant to an interlocal agreement under the urban

 

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512.

 

     (7) To obtain a contract to organize and operate 1 or more

 

schools of excellence, 1 or more persons or an entity may apply to

 

an authorizing body described in this section. The application

 

shall include at least all of the following:

 

     (a) Identification of the applicant for the contract.

 

     (b) Subject to the resolution adopted by the authorizing body

 

under section 553(4), a list of the proposed members of the board

 

of directors of the school of excellence and a description of the

 

qualifications and method for appointment or election of members of

 

the board of directors.

 

     (c) The proposed articles of incorporation, which shall

 

include at least all of the following:

 

     (i) The name of the proposed school of excellence.

 

     (ii) The purposes for the school of excellence corporation.

 

This language shall provide that the school of excellence is

 

incorporated pursuant to this part and that the school of

 

excellence is a governmental entity.

 

     (iii) The name of the authorizing body.

 

     (iv) The proposed time when the articles of incorporation will

 

be effective.

 

     (v) Other matters considered expedient to be in the articles

 

of incorporation.

 

     (d) A copy of the proposed bylaws of the school of excellence.

 

     (e) Documentation meeting the application requirements of the

 

authorizing body, including at least all of the following:

 

     (i) The governance structure of the school of excellence.

 

     (ii) A copy of the educational goals of the school of

 

excellence and the curricula to be offered and methods of pupil

 

assessment to be used by the school of excellence. The educational

 

goals shall include demonstrated improved pupil academic

 

achievement for all groups of pupils. To the extent applicable, the

 

progress of the pupils in the school of excellence shall be

 

assessed using at least a Michigan education assessment program

 

(MEAP) test or the Michigan merit examination under section 1279g,

 

as applicable.

 

     (iii) The admission policy and criteria to be maintained by the

 

school of excellence. The admission policy and criteria shall

 

comply with section 556. This part of the application also shall

 

include a description of how the applicant will provide to the

 

general public adequate notice that a school of excellence is being

 

created and adequate information on the admission policy, criteria,

 

and process.

 

     (iv) Except for a school of excellence that is a cyber school,

 

the school calendar and school day schedule.

 

     (v) The age or grade range of pupils to be enrolled.

 

     (f) Descriptions of staff responsibilities and of the school

 

of excellence governance structure.

 

     (g) For an application to the board of a school district, an

 

intermediate school board, or board of a community college,

 

identification of the school district and intermediate school

 

district in which the school of excellence will be located.

 

     (h) An agreement that the school of excellence will comply

 

with the provisions of this part and, subject to the provisions of

 

this part, with all other state law applicable to public bodies and

 

with federal law applicable to public bodies or school districts.

 

     (i) A description of and address for the proposed physical

 

plant in which the school of excellence will be located. An

 

applicant may request the authorizing body to issue a contract

 

allowing the board of directors of the school of excellence to

 

operate the same configuration of age or grade levels at more than

 

1 site.

 

     (8) Beginning on the effective date of the amendatory act that

 

added this subsection, an authorizing body shall not issue a new

 

contract to organize and operate a new school of excellence unless

 

each of the public school academies that are operating under a

 

contract from that authorizing body have demonstrated pupil

 

achievement as measured by applicable state assessments at a level

 

that is at least 20% higher than the school district in which the

 

existing public school academy is located.

 

     (9) (8) An authorizing body shall oversee, or shall contract

 

with an intermediate school district, community college, or state

 

public university to oversee, each school of excellence operating

 

under a contract issued by the authorizing body. The authorizing

 

body is responsible for overseeing compliance by the board of

 

directors with the contract and all applicable law. This subsection

 

does not relieve any other government entity of its enforcement or

 

supervisory responsibility.

 

     (10) (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.

 

     (11) (10) An authorizing body shall not charge a fee, or

 

require reimbursement of expenses, for considering an application

 

for a contract, for issuing a contract, or for providing oversight

 

of a contract for a school of excellence in an amount that exceeds

 

a combined total of 3% 1% of the total state school aid received by

 

the school of excellence in the school year in which the fees or

 

expenses are charged. The authorizing body may provide other

 

services for a school of excellence and charge a fee for those

 

services, but shall not require such an arrangement as a condition

 

to issuing the contract authorizing the school of excellence.

 

     (12) (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.

 

     (13) (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.

 

     (14) (13) A school of excellence that is a cyber school may

 

make available to other public schools for purchase any of the

 

course offerings that the cyber school offers to its own pupils.

 

     (15) (14) If the department determines that the combined total

 

statewide final audited membership for all pupils in membership in

 

schools of excellence that are cyber schools for the 2012-2013

 

state fiscal year exceeds a number equal to 1% of the combined

 

total statewide final audited membership for all pupils in

 

membership in public schools for the 2011-2012 state fiscal year,

 

then all of the following apply:

 

     (a) An authorizing body may not issue a new contract for a new

 

school of excellence that is a cyber school to begin operations in

 

the 2013-2014 school year.

 

     (b) A school of excellence that is a cyber school may not

 

enroll any new pupils in the school of excellence that is a cyber

 

school in the 2013-2014 school year.

 

     (16) (15) Beginning July 1, 2013, if the department determines

 

that the combined total statewide final audited membership for all

 

pupils in membership in schools of excellence that are cyber

 

schools for a state fiscal year exceeds a number equal to 2% of the

 

combined total statewide final audited membership for all pupils in

 

membership in public schools for the 2011-2012 state fiscal year,

 

then all of the following apply:

 

     (a) Subject to subdivision (c), an authorizing body may not

 

issue a new contract for a new school of excellence that is a cyber

 

school to begin operations in a school year that begins after that

 

determination is made.

 

     (b) Subject to subdivision (c), a school of excellence that is

 

a cyber school may not enroll any new pupils in the school of

 

excellence that is a cyber school in a school year that begins

 

after that determination is made.

 

     (c) If the department determines that the combined total

 

statewide final audited membership for all pupils in membership in

 

schools of excellence that are cyber schools for a state fiscal

 

year does not exceed a number equal to 2% of the combined total

 

statewide final audited membership for all pupils in membership in

 

public schools for the 2011-2012 state fiscal year, then

 

subdivisions (a) and (b) do not apply for a school year that begins

 

after that determination is made unless the department makes a new

 

determination that the membership limits under this subsection have

 

been exceeded.

 

     (17) (16) For the purposes of subsections (14) and (15), (15)

 

and (16), not later than July 1, 2012, and by not later than July 1

 

of each year thereafter, the department shall determine the

 

percentage of the combined total statewide final audited membership

 

for all pupils in membership in public schools that are pupils in

 

membership in schools of excellence that are cyber schools for the

 

state fiscal year that includes that July 1.

 

     (18) (17) As used in this section:

 

     (a) "Membership" means that term as defined in section 6 of

 

the state school aid act of 1979, MCL 388.1606.

 

     (b) "Statewide authorizing body" means the governing board of

 

a state public university or the board of a federal tribally

 

controlled community college that is recognized under the tribally

 

controlled colleges and universities assistance act of 1978, 25 USC

 

1801 to 1852, and is determined by the department to meet the

 

requirements for accreditation by a recognized regional accrediting

 

body.

 

     (18) Not later than October 1, 2012, If a district, an

 

intermediate school district, a public school academy, or the

 

education achievement system offers online learning, the board or

 

board of directors of the district, intermediate school district,

 

or public school academy, or the education achievement system,

 

shall submit to the department a report that details the per-pupil

 

costs of operating the online learning. The report shall include,

 

on a per-pupil basis, at least all of the following costs:

 

     (a) Textbooks, instructional materials, and supplies,

 

including electronic instructional material.

 

     (b) Computer and other electronic equipment, including

 

internet and telephone access.

 

     (c) Salaries and benefits for the online learning employees.

 

     (d) Purchased courses and curricula.

 

     (e) Fees associated with oversight and regulation.

 

     (f) Travel costs associated with school activities and

 

testing.

 

     (g) Facilities costs.

 

     (h) Costs associated with special education.

 

     (19) Not later than December 31, 2012, the department shall

 

issue a report to the legislature including the following:

 

     (a) A review of the data submitted under subsection (14).

 

     (b) A comparison with costs of substantially similar programs

 

in other states and relevant national research on the costs of

 

online learning.

 

     (c) Any conclusions concerning factors or characteristics of

 

online learning programs that make a difference in the costs of

 

operating the programs.

 

     (19) (20) The board of directors of a school of excellence

 

that is a cyber school, or the board of a school district,

 

intermediate school district, or public school academy that

 

operates an online or other distance learning program, shall submit

 

a monthly report to the department, in the form and manner

 

prescribed by the department, that reports the number of pupils

 

enrolled in the school of excellence that is a cyber school, or in

 

the online or other distance learning program, during the

 

immediately preceding month.

 

     (20) (21) The board of directors of a school of excellence

 

that is a cyber school shall ensure that, when a pupil enrolls in

 

the school of excellence that is a cyber school, the pupil and his

 

or her parent or legal guardian are provided with a parent-student

 

orientation. If the pupil is at least age 18 or is an emancipated

 

minor, the orientation may be provided to just the pupil.

 

     Sec. 553. (1) An authorizing body is not required to issue a

 

contract to any person or entity. Schools of excellence contracts

 

shall be issued on a competitive basis taking into consideration

 

the resources available for the proposed school of excellence, the

 

population to be served by the proposed school of excellence, the

 

educational goals to be achieved by the proposed school of

 

excellence, and the applicant's track record, if any, in operating

 

public school academies or other public schools.

 

     (2) If a person or entity applies to the board of a school

 

district for a contract to organize and operate 1 or more schools

 

of excellence within the boundaries of the school district and the

 

board does not issue the contract, the person or entity may

 

petition the board to place the question of issuing the contract on

 

the ballot to be decided by the school electors of the school

 

district. The petition shall contain all of the information

 

required to be in the contract application under section 552 and

 

shall be signed by a number of school electors of the school

 

district equal to at least 5% of the total number of school

 

electors of that school district. The petition shall be filed with

 

the school district filing official. If the board receives a

 

petition meeting the requirements of this subsection, the board

 

shall have the question of issuing the contract placed on the

 

ballot at its next regular school election held at least 60 days

 

after receiving the petition. If a majority of the school electors

 

of the school district voting on the question vote to issue the

 

contract, the board shall issue the contract.

 

     (3) Within 10 days after issuing a contract for a school of

 

excellence, the authorizing body shall submit to the superintendent

 

of public instruction a copy of the contract.

 

     (4) An authorizing body shall adopt a resolution establishing

 

the method of selection, length of term, and number of members of

 

the board of directors of each school of excellence subject to its

 

jurisdiction. The resolution shall be written or amended as

 

necessary to include a requirement that each member of the board of

 

directors must be a citizen of the United States.

 

     (5) A contract issued to organize and administer a school of

 

excellence shall contain at least all of the following:

 

     (a) The educational goals the school of excellence is to

 

achieve and the methods by which it will be held accountable. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of a school of excellence shall

 

be assessed using at least a Michigan education assessment program

 

(MEAP) test or the Michigan merit examination under section 1279g,

 

as applicable.

 

     (b) A description of the method to be used to monitor the

 

school of excellence's compliance with applicable law and its

 

performance in meeting its targeted educational objectives.

 

     (c) A description of the process for amending the contract

 

during the term of the contract.

 

     (d) All of the matters set forth in the application for the

 

contract.

 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 561.

 

     (f) A description of and address for the proposed physical

 

plant in which the school of excellence will be located. An

 

authorizing body may include a provision in the contract allowing

 

the board of directors of the school of excellence to operate the

 

same configuration of age or grade levels at more than 1 site if

 

each configuration of age or grade levels and each site identified

 

in the contract are under the direction and control of the board of

 

directors.

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by a

 

certified public accountant in accordance with generally accepted

 

governmental auditing principles.

 

     (h) A certification, signed by an authorized member of the

 

school of excellence board of directors, that the school of

 

excellence will comply with the contract and all applicable law.

 

     (i) A requirement that the board of directors shall ensure

 

compliance with the requirements of 1968 PA 317, MCL 15.321 to

 

15.330.

 

     (j) A requirement that the board of directors shall prohibit

 

specifically identified family relationships between members of the

 

board of directors, individuals who have an ownership interest in

 

or who are officers or employees of an educational management

 

organization involved in the operation of the school of excellence,

 

and employees of the school of excellence. The contract shall

 

identify the specific prohibited relationships consistent with

 

applicable law.

 

     (k) A requirement that the board of directors of the school of

 

excellence shall make information concerning its operation and

 

management available to the public and to the authorizing body in

 

the same manner as is required by state law for school districts.

 

     (l) A requirement that the board of directors of the school of

 

excellence shall collect, maintain, and make available to the

 

public and the authorizing body, in accordance with applicable law

 

and the contract, at least all of the following information

 

concerning the operation and management of the school of

 

excellence:

 

     (i) A copy of the contract issued by the authorizing body for

 

the school of excellence.

 

     (ii) A list of currently serving members of the board of

 

directors of the school of excellence, including name, address, and

 

term of office; copies of policies approved by the board of

 

directors; board meeting agendas and minutes; copy of the budget

 

approved by the board of directors and of any amendments to the

 

budget; and copies of bills paid for amounts of $10,000.00 or more

 

as they were submitted to the board of directors.

 

     (iii) Quarterly financial reports submitted to the authorizing

 

body.

 

     (iv) A current list of teachers and school administrators

 

working at the school of excellence that includes their individual

 

salaries as submitted to the registry of educational personnel;

 

copies of the teaching or school administrator's certificates or

 

permits of current teaching and administrative staff; and evidence

 

of compliance with the criminal background and records checks and

 

unprofessional conduct check required under sections 1230, 1230a,

 

and 1230b for all teachers and administrators working at the school

 

of excellence.

 

     (v) Curriculum documents and materials given to the

 

authorizing body.

 

     (vi) Proof of insurance as required by the contract.

 

     (vii) Copies of facility leases or deeds, or both, and of any

 

equipment leases.

 

     (viii) Copies of any management contracts or services contracts

 

approved by the board of directors.

 

     (ix) All health and safety reports and certificates, including

 

those relating to fire safety, environmental matters, asbestos

 

inspection, boiler inspection, and food service.

 

     (x) Any management letters issued as part of the annual

 

financial audit under subdivision (g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (m) A requirement that the authorizing body must review and

 

may disapprove any agreement between the board of directors and an

 

educational management organization before the agreement is final

 

and valid. An authorizing body may disapprove an agreement

 

described in this subdivision only if the agreement is contrary to

 

contract or applicable law.

 

     (n) A requirement that the board of directors shall

 

demonstrate all of the following to the satisfaction of the

 

authorizing body with regard to its pupil admission process:

 

     (i) That the school of excellence has made a reasonable effort

 

to advertise its enrollment openings.

 

     (ii) That the school of excellence has made the following

 

additional efforts to recruit pupils who are eligible for special

 

education programs and services or English as a second language

 

services to apply for admission:

 

     (A) Reasonable efforts to advertise all enrollment openings to

 

organizations and media that regularly serve and advocate for

 

individuals with disabilities or children with limited English-

 

speaking ability within the boundaries of the intermediate school

 

district in which the school of excellence is located.

 

     (B) Inclusion in all pupil recruitment materials of a

 

statement that appropriate special education services and English

 

as a second language services will be made available to pupils

 

attending the school as required by law.

 

     (iii) That the open enrollment period for the school of

 

excellence is for a duration of at least 2 weeks and that the

 

enrollment times include some evening and weekend times.

 

     (o) A requirement that the board of directors shall prohibit

 

any individual from being employed by the school of excellence in

 

more than 1 full-time position and simultaneously being compensated

 

at a full-time rate for each of those positions.

 

     (p) A requirement that, if requested, the board of directors

 

shall report to the authorizing body the total compensation for

 

each individual working at the school of excellence.

 

     (6) A school of excellence shall comply with all applicable

 

law, including all of the following:

 

     (a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (b) The freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.

 

     (f) Laws concerning participation in state assessments, data

 

collection systems, state level student growth models, state

 

accountability and accreditation systems, and other public

 

comparative data collection required for public schools.

 

     (7) A school of excellence and its incorporators, board

 

members, officers, employees, and volunteers have governmental

 

immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An

 

authorizing body and its board members, officers, and employees are

 

immune from civil liability, both personally and professionally,

 

for an act or omission in authorizing a school of excellence if the

 

authorizing body or the person acted or reasonably believed he or

 

she acted within the authorizing body's or the person's scope of

 

authority.

 

     (8) A school of excellence is exempt from all taxation on its

 

earnings and property. Unless the property is already fully exempt

 

from real and personal property taxes under the general property

 

tax act, 1893 PA 206, MCL 211.1 to 211.155, property occupied by a

 

school of excellence and used exclusively for educational purposes

 

is exempt from real and personal property taxes levied for school

 

operating purposes under section 1211, to the extent exempted under

 

that section, and from real and personal property taxes levied

 

under the state education tax act, 1993 PA 331, MCL 211.901 to

 

211.906. Instruments of conveyance to or from a school of

 

excellence are exempt from all taxation including taxes imposed by

 

1966 PA 134, MCL 207.501 to 207.513. A school of excellence may not

 

levy ad valorem property taxes or another tax for any purpose.

 

However, operation of 1 or more schools of excellence by a school

 

district or intermediate school district does not affect the

 

ability of the school district or intermediate school district to

 

levy ad valorem property taxes or another tax.

 

     (9) A school of excellence may acquire by purchase, gift,

 

devise, lease, sublease, installment purchase agreement, land

 

contract, option, or by any other means, hold, and own in its own

 

name buildings and other property for school purposes, and

 

interests therein, and other real and personal property, including,

 

but not limited to, interests in property subject to mortgages,

 

security interests, or other liens, necessary or convenient to

 

fulfill its purposes. For the purposes of condemnation, a school of

 

excellence may proceed under the uniform condemnation procedures

 

act, 1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of

 

that act, MCL 213.56 to 213.59, or other applicable statutes, but

 

only with the express, written permission of the authorizing body

 

in each instance of condemnation and only after just compensation

 

has been determined and paid.

 

     Sec. 553c. (1) Beginning with management agreements described

 

in this section that are entered into or renewed after the

 

effective date of this section, if If the board of directors of a

 

school of excellence enters into or renews a management agreement

 

with an educational management organization to carry out the

 

operations of the school of excellence, both all of the following

 

apply:

 

     (a) The board of directors shall post a copy of the management

 

agreement on the school's website, with a link on the school's

 

website homepage, in a form and manner prescribed by the

 

department.

 

     (b) (a) The management agreement shall require the educational

 

management organization to provide to the board of directors at

 

least annually all the same information that a school district is

 

required to disclose under section 18(2) of the state school aid

 

act of 1979, MCL 388.1618, for the most recent school fiscal year

 

for which that information is available.

 

     (c) (b) Within 30 days after receiving the information under

 

subdivision (a), (b), the board of directors shall make all of the

 

information it receives under subdivision (a) (b) available through

 

a link on the school of excellence's website homepage, in a form

 

and manner prescribed by the department.

 

     (2) As used in this section:

 

     (a) "Educational management organization" means an entity that

 

enters into a management agreement with a school of excellence.

 

     (b) "Entity" means a partnership, nonprofit or business

 

corporation, or any other association, corporation, trust, or other

 

legal entity.

 

     (c) "Management agreement" means an agreement to provide

 

comprehensive educational, administrative, management, or

 

instructional services or staff to a school of excellence.

 

     (d) "School fiscal year" means the period that begins July 1

 

and ends June 30.

 

     Sec. 557. In addition to other powers set forth in this part,

 

a school of excellence may take action to carry out the purposes

 

for which it was incorporated under this part, including, but not

 

limited to, all of the following:

 

     (a) To sue and be sued in its name.

 

     (b) Subject to section 555, to acquire, hold, and own in its

 

own name real and personal property, or interests in real or

 

personal property, for educational purposes by purchase, gift,

 

grant, devise, bequest, lease, sublease, installment purchase

 

agreement, land contract, option, or condemnation, and subject to

 

mortgages, security interests, or other liens; and to sell or

 

convey the property as the interests of the school of excellence

 

require.

 

     (c) To receive, disburse, and pledge funds for lawful

 

purposes.

 

     (d) To enter into binding legal agreements with persons or

 

entities as necessary for the operation, management, financing, and

 

maintenance of the school of excellence. However, a school of

 

excellence shall not enter into a management agreement with an

 

educational management organization that operates on a for-profit

 

basis. As used in this subdivision, "educational management

 

organization" and "management agreement" mean those terms as

 

defined in section 553c.

 

     (e) To incur temporary debt in accordance with section 1225.

 

     (f) To solicit and accept any grants or gifts for educational

 

purposes and to establish or permit to be established on its behalf

 

1 or more nonprofit corporations the purpose of which is to assist

 

the school of excellence in the furtherance of its public purposes.

 

     (g) To borrow money and issue bonds in accordance with section

 

1351a and in accordance with part VI of the revised municipal

 

finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the

 

borrowing of money and issuance of bonds by a school of excellence

 

is not subject to section 1351a(4) or section 1351(2) to (4). Bonds

 

issued under this section shall be full faith and credit

 

obligations of the school of excellence, pledging the general funds

 

or any other money available for such a purpose. Bonds issued under

 

this section are subject to the revised municipal finance act, 2001

 

PA 34, MCL 141.2101 to 141.2821.

 

     Sec. 1311d. (1) A strict discipline academy shall be organized

 

and administered under the direction of a board of directors in

 

accordance with sections 1311b to 1311l and with bylaws adopted by

 

the board of directors. A strict discipline academy corporation

 

created to operate a strict discipline academy shall be organized

 

under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

 

450.3192, except that the strict discipline academy corporation is

 

not required to comply with sections 170 to 177 of 1931 PA 327, MCL

 

450.170 to 450.177. To the extent disqualified under the state or

 

federal constitution, a strict discipline academy shall not be

 

organized by a church or other religious organization and shall not

 

have any organizational or contractual affiliation with or

 

constitute a church or other religious organization.

 

     (2) Any of the following may act as an authorizing body to

 

issue a contract to organize and operate 1 or more strict

 

discipline academies under sections 1311b to 1311l:

 

     (a) The board of a school district that operates grades K to

 

12. However, the board of a school district shall not issue a

 

contract for a strict discipline academy to operate outside the

 

school district's boundaries, and a strict discipline academy

 

authorized by the board of a school district shall not operate

 

outside that school district's boundaries. For the purposes of this

 

section, "school district" expressly does not include the state

 

school reform/redesign school district created under section 1280c,

 

the education achievement authority, or any other statewide entity.

 

     (b) An intermediate school board. However, the board of an

 

intermediate school district shall not issue a contract for a

 

strict discipline academy to operate outside the intermediate

 

school district's boundaries, and a strict discipline academy

 

authorized by the board of an intermediate school district shall

 

not operate outside that intermediate school district's boundaries.

 

     (c) The board of a community college. However, except as

 

otherwise provided in this subdivision, the board of a community

 

college shall not issue a contract for a strict discipline academy

 

to operate in a school district organized as a school district of

 

the first class, a strict discipline academy authorized by the

 

board of a community college shall not operate in a school district

 

organized as a school district of the first class, the board of a

 

community college shall not issue a contract for a strict

 

discipline academy to operate outside the boundaries of the

 

community college district, and a strict discipline academy

 

authorized by the board of a community college shall not operate

 

outside the boundaries of the community college district. The board

 

of a community college also may issue a contract for not more than

 

1 strict discipline academy to operate on the grounds of an active

 

or closed federal military installation located outside the

 

boundaries of the community college district, or may operate a

 

strict discipline academy itself on the grounds of such a federal

 

military installation, if the federal military installation is not

 

located within the boundaries of any community college district and

 

the community college has previously offered courses on the grounds

 

of the federal military installation for at least 10 years.

 

     (d) The governing board of a state public university.

 

     (3) To obtain a contract to organize and operate 1 or more

 

strict discipline academies, 1 or more persons or an entity may

 

apply to an authorizing body described in subsection (2). The

 

application shall include at least all of the following:

 

     (a) Identification of the applicant for the contract.

 

     (b) Subject to the resolution adopted by the authorizing body

 

under section 1311e, a list of the proposed members of the board of

 

directors of the strict discipline academy and a description of the

 

qualifications and method for appointment or election of members of

 

the board of directors.

 

     (c) The proposed articles of incorporation, which shall

 

include at least all of the following:

 

     (i) The name of the proposed strict discipline academy.

 

     (ii) The purposes for the strict discipline academy corporation

 

that will operate the strict discipline academy. This language

 

shall provide that the strict discipline academy is established

 

pursuant to sections 1311b to 1311l and that the strict discipline

 

academy corporation is a governmental entity.

 

     (iii) The name of the authorizing body.

 

     (iv) The proposed time when the articles of incorporation will

 

be effective.

 

     (v) Other matters considered expedient to be in the articles

 

of incorporation.

 

     (d) A copy of the proposed bylaws of the strict discipline

 

academy.

 

     (e) Documentation meeting the application requirements of the

 

authorizing body, including at least all of the following:

 

     (i) The governance structure of the strict discipline academy.

 

     (ii) A copy of the educational goals of the strict discipline

 

academy and the curricula to be offered and methods of pupil

 

assessment to be used by the strict discipline academy. To the

 

extent applicable, the progress of the pupils in the strict

 

discipline academy shall be assessed using at least a Michigan

 

education assessment program (MEAP) test or an assessment

 

instrument developed under section 1279 for a state-endorsed high

 

school diploma.

 

     (iii) The admission policy and criteria to be maintained by the

 

strict discipline academy. The admission policy and criteria shall

 

comply with section 1311g. This part of the application also shall

 

include a description of how the applicant will provide to the

 

general public adequate notice that a strict discipline academy is

 

being created and adequate information on the admission policy,

 

criteria, and process.

 

     (iv) The school calendar and school day schedule.

 

     (v) The age or grade range of pupils to be enrolled.

 

     (vi) The type of pupils to be enrolled in the strict discipline

 

academy, as described in section 1311g(3) and (4).

 

     (f) Descriptions of staff responsibilities and of the strict

 

discipline academy's governance structure.

 

     (g) For an application to the board of a school district, an

 

intermediate school board, or board of a community college,

 

identification of the local and intermediate school districts in

 

which the strict discipline academy will be located.

 

     (h) An agreement that the strict discipline academy will

 

comply with the provisions of sections 1311b to 1311l and, subject

 

to the provisions of these sections, with all other state law

 

applicable to public bodies and with federal law applicable to

 

public bodies or school districts.

 

     (i) For a strict discipline academy authorized by a school

 

district, an assurance that employees of the strict discipline

 

academy will be covered by the collective bargaining agreements

 

that apply to other employees of the school district employed in

 

similar classifications in schools that are not strict discipline

 

academies.

 

     (j) A description of and address for the proposed physical

 

plant in which the strict discipline academy will be located.

 

     (4) Beginning on the effective date of the amendatory act that

 

added this subsection, an authorizing body shall not issue a new

 

contract to organize and operate a new strict discipline academy

 

unless each of the existing public school academies that are

 

operating under a contract from that authorizing body have

 

demonstrated pupil achievement as measured by applicable state

 

assessments at a level that is at least 20% higher than the school

 

district in which the existing public school academy is located.

 

     (5) (4) An authorizing body shall oversee, or shall contract

 

with an intermediate school district, community college, or state

 

public university to oversee, each strict discipline academy

 

operating under a contract issued by the authorizing body. The

 

oversight shall be sufficient to ensure that the authorizing body

 

can certify that the strict discipline academy is in compliance

 

with statute, rules, and the terms of the contract.

 

     (6) (5) If the state board finds that an authorizing body is

 

not engaging in appropriate continuing oversight of 1 or more

 

strict discipline academies operating under a contract issued by

 

the authorizing body, the state board may suspend the power of the

 

authorizing body to issue new contracts to organize and operate

 

strict discipline academies. A contract issued by the authorizing

 

body during the suspension is void. A contract issued by the

 

authorizing body before the suspension is not affected by the

 

suspension.

 

     (7) (6) An authorizing body shall not charge a fee, or require

 

reimbursement of expenses, for considering an application for a

 

contract, for issuing a contract, or for providing oversight of a

 

contract for a strict discipline academy in an amount that exceeds

 

a combined total of 3% 1% of the total state school aid received by

 

the strict discipline academy in the school year in which the fees

 

or expenses are charged. An authorizing body may provide other

 

services for a strict discipline academy and charge a fee for those

 

services, but shall not require such an arrangement as a condition

 

to issuing the contract authorizing the strict discipline academy.

 

     (8) (7) A strict discipline academy shall be presumed to be

 

legally organized if it has exercised the franchises and privileges

 

of a strict discipline academy for at least 2 years.

 

     Sec. 1311h. In addition to other powers set forth in sections

 

1311b to 1311l, a strict discipline academy may take action to carry

 

out the purposes for which it was incorporated under sections 1311b

 

to 1311l, including, but not limited to, all of the following:

 

     (a) To sue and be sued in its name.

 

     (b) To acquire, hold, and own in its own name real and

 

personal property, or interests in real or personal property, for

 

educational purposes by purchase, gift, grant, devise, bequest,

 

lease, sublease, installment purchase agreement, land contract,

 

option, or condemnation, and subject to mortgages, security

 

interests, or other liens; and to sell or convey the property as

 

the interests of the strict discipline academy require.

 

     (c) To receive and disburse funds for lawful purposes.

 

     (d) To enter into binding legal agreements with persons or

 

entities as necessary for the operation, management, financing, and

 

maintenance of the strict discipline academy. However, a strict

 

discipline academy shall not enter into a management agreement with

 

an educational management organization that operates on a for-

 

profit basis. As used in this subdivision, "educational management

 

organization" and "management agreement" mean those terms as

 

defined in section 523c.

 

     (e) To incur temporary debt in accordance with section 1225.

 

     (f) To solicit and accept any grants or gifts for educational

 

purposes and to establish or permit to be established on its behalf

 

1 or more nonprofit corporations the purpose of which is to assist

 

the strict discipline academy in the furtherance of its public

 

purposes.

 

     (g) To borrow money and issue bonds in accordance with section

 

1351a and in accordance with part VI of the revised municipal

 

finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the

 

borrowing of money and issuance of bonds by a strict discipline

 

academy is not subject to section 1351a(4) or section 1351(2) to

 

(4). Bonds issued under this section shall be full faith and credit

 

obligations of the strict discipline academy, pledging the general

 

funds or any other money available for such a purpose. Bonds issued

 

under this section are subject to the revised municipal finance

 

act, 2001 PA 34, MCL 141.2101 to 141.2821.