Bill Text: MI HB5782 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: School aid; foundation allowance; per-pupil funding formula and certain categorical payments; revise. Amends secs. 20, 22b, 22c & 147d of 1979 PA 94 (MCL 388.1620 et seq.).

Spectrum: Strong Partisan Bill (Democrat 15-1)

Status: (Introduced - Dead) 2014-09-10 - Printed Bill Filed 09/10/2014 [HB5782 Detail]

Download: Michigan-2013-HB5782-Introduced.html

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HOUSE BILL No. 5782

 

September 9, 2014, Introduced by Reps. Singh, Zemke, Schor, Knezek, Cochran, Barnett, Irwin, Faris, Dillon, LaVoy, Slavens, Heise, Roberts, Switalski, Robinson and Abed and referred to the Committee on Appropriations.

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 20, 22b, 22c, and 147d (MCL 388.1620,

 

388.1622b, 388.1622c, and 388.1747d), sections 20, 22b, and 22c as

 

amended and section 147d as added by 2014 PA 196.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 20. (1) For 2014-2015, both of the following apply:

 

     (a) The basic foundation allowance is $8,099.00.$8,132.00.

 

     (b) The minimum foundation allowance is $7,126.00.$7,159.00.

 

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

 

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

 

allowance in the amount specified in subsection (1).

 

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

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

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

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was equal to the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year, but less than the basic foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

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

 

district's foundation allowance for the immediately preceding state

 

fiscal year plus the difference between twice the dollar amount of

 

the adjustment from the immediately preceding state fiscal year to

 

the current state fiscal year made in the basic foundation

 

allowance and [(the difference between the basic foundation

 

allowance for the current state fiscal year and basic foundation

 

allowance for the immediately preceding state fiscal year minus

 

$10.00) times (the difference between the district's foundation

 

allowance for the immediately preceding state fiscal year and the

 

minimum foundation allowance for the immediately preceding state

 

fiscal year) divided by the difference between the basic foundation

 

allowance for the current state fiscal year and the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year]. However, the foundation allowance for a district that had

 

less than the basic foundation allowance for the immediately

 

preceding state fiscal year shall not exceed the basic foundation

 

allowance for the current state fiscal year. For the purposes of

 

this subdivision, for 2014-2015, the minimum foundation allowance

 

for the immediately preceding state fiscal year shall be considered

 

to be $7,076.00. For 2014-2015, for a district that had a

 

foundation allowance for the immediately preceding state fiscal

 

year that was at least equal to the minimum foundation allowance

 

for the immediately preceding state fiscal year but less than the

 

basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance in

 

an amount equal to the district's foundation allowance for 2013-

 

2014 plus $50.00.$83.00.

 

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

 

district that in the immediately preceding state fiscal year had a

 

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

 

foundation allowance for the immediately preceding state fiscal

 

year, the district shall receive a foundation allowance for 2014-

 

2015 in an amount equal to the basic foundation allowance for 2014-

 

2015.

 

     (c) For a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was greater than the

 

basic foundation allowance for the immediately preceding state

 

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

 

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

 

immediately preceding state fiscal year plus the lesser of the

 

increase in the basic foundation allowance for the current state

 

fiscal year, as compared to the immediately preceding state fiscal

 

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

 

immediately preceding state fiscal year times the percentage

 

increase in the United States consumer price index in the calendar

 

year ending in the immediately preceding fiscal year as reported by

 

the May revenue estimating conference conducted under section 367b

 

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

 

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

 

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

 

rounded up to the nearest whole dollar.

 

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

 

as that section was in effect for 2013-2014, the district's 2013-

 

2014 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2013-2014

 

foundation allowance as otherwise calculated under this section

 

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

 

2013-2014 under section 22c as that section was in effect for 2013-

 

2014.

 

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

 

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

 

the district's foundation allowance or the basic foundation

 

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

 

minus the local portion of the district's foundation allowance

 

divided by the district's membership excluding special education

 

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

 

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

 

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

 

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

 

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

 

district's foundation allowance divided by the district's

 

membership excluding special education pupils. For a district that

 

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

 

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

 

foundation allowance shall be calculated as if that reduction did

 

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

 

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

 

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

 

satisfy debt obligations of the dissolved district under section 12

 

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

 

membership pupil of property in the receiving district used for the

 

purposes of this subsection does not include the taxable value of

 

property within the geographic area of the dissolved district.

 

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

 

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

 

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

 

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

 

allocation calculated under this section shall be based on the

 

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

 

residence or the foundation allowance of the educating district.

 

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

 

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

 

district of residence, the allocation calculated under this section

 

shall be based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

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

 

residence.

 

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

 

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

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

whichever is less. However, a public school academy that had an

 

allocation under this subsection before 2009-2010 that was equal to

 

the sum of the local school operating revenue per membership pupil

 

other than special education pupils for the district in which the

 

public school academy is located and the state portion of that

 

district's foundation allowance shall not have that allocation

 

reduced as a result of the 2010 amendment to this subsection.

 

Notwithstanding section 101, for a public school academy that

 

begins operations after the pupil membership count day, the amount

 

per membership pupil calculated under this subsection shall be

 

adjusted by multiplying that amount per membership pupil by the

 

number of hours of pupil instruction provided by the public school

 

academy after it begins operations, as determined by the

 

department, divided by the minimum number of hours of pupil

 

instruction required under section 101(3). The result of this

 

calculation shall not exceed the amount per membership pupil

 

otherwise calculated under this subsection.

 

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

 

pupils attending an achievement school and in membership in the

 

education achievement system, other than special education pupils,

 

the allocation calculated under this section is an amount per

 

membership pupil other than special education pupils equal to the

 

foundation allowance of the district in which the achievement

 

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

 

Notwithstanding section 101, for an achievement school that begins

 

operation after the pupil membership count day, the amount per

 

membership pupil calculated under this subsection shall be adjusted

 

by multiplying that amount per membership pupil by the number of

 

hours of pupil instruction provided by the achievement school after

 

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

 

the minimum number of hours of pupil instruction required under

 

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

 

amount per membership pupil otherwise calculated under this

 

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

 

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

 

district or the achievement authority under section 1280c of the

 

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

 

considered to be an achievement school within the education

 

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

 

a pupil attending that public school is considered to be in

 

membership in the education achievement system and not in

 

membership in the district that operated the school before the

 

transfer.

 

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

 

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

 

districts or by annexation, the resulting district's foundation

 

allowance under this section beginning after the effective date of

 

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

 

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

 

affected districts, calculated as provided in this section,

 

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

 

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

 

original or affected districts plus $100.00 or the highest

 

foundation allowance among the original or affected districts. This

 

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

 

subsequent consolidation or annexation that affects the district.

 

     (9) Each fraction used in making calculations under this

 

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

 

amount of an increase in the basic foundation allowance shall be

 

rounded to the nearest whole dollar.

 

     (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

     (11) To assist the legislature in determining the basic

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

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

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

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

 

the estimated membership in the school year ending in the current

 

state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district

 

membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

     (b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

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

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 

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

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

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

 

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

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

     (c) The index shall be calculated by multiplying the pupil

 

membership factor by the revenue adjustment factor. If a consensus

 

index is not determined at the revenue estimating conference, the

 

principals of the revenue estimating conference shall report their

 

estimates to the house and senate subcommittees responsible for

 

school aid appropriations not later than 7 days after the

 

conclusion of the revenue conference.

 

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

 

education achievement system shall not be made under this section.

 

Rather, the calculations under this section shall be used to

 

determine the amount of state payments under section 22b.

 

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

 

constitution of 1963 allowing state aid to some or all nonpublic

 

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

 

allowance or per pupil payment calculation under this section may

 

be reduced.

 

     (14) As used in this section:

 

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

 

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

 

1993-94.

 

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

 

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

 

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

 

operating revenue.

 

     (c) "Combined state and local revenue per membership pupil"

 

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

 

the district's membership excluding special education pupils.

 

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

 

for which a particular calculation is made.

 

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

 

organization, has its territory attached to 1 or more other

 

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

 

revised school code, MCL 380.12.

 

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

 

fiscal year immediately preceding the current state fiscal year.

 

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

 

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

 

the product of the taxable value per membership pupil of all

 

property in the district that is nonexempt property times the

 

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

 

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

 

of property in the district that is commercial personal property

 

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

 

product of the captured assessed valuation under tax increment

 

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

 

district's membership excluding special education pupils).

 

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

 

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

 

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

 

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

 

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

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, local school operating revenue

 

does not include school operating taxes levied within the

 

geographic area of the dissolved district.

 

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

 

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

 

district's membership excluding special education pupils.

 

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

 

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

 

allocation as calculated by adding the highest per-pupil allocation

 

among all public school academies for the immediately preceding

 

state fiscal year plus the difference between twice the amount of

 

the difference between the basic foundation allowance for the

 

current state fiscal year and the basic foundation for the

 

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

 

difference between the basic foundation allowance for the current

 

state fiscal year and the basic foundation for the immediately

 

preceding state fiscal year minus $10.00) times (the difference

 

between the highest per-pupil allocation among all public school

 

academies for the immediately preceding state fiscal year and the

 

minimum foundation allowance for the immediately preceding state

 

fiscal year) divided by the difference between the basic foundation

 

allowance for the current state fiscal year and the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year]. For the purposes of this subdivision, for 2014-2015, the

 

minimum foundation allowance for the immediately preceding state

 

fiscal year shall be considered to be $7,076.00. For 2014-2015, the

 

maximum public school academy allocation is $7,218.00.$7,251.00.

 

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

 

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

 

particular calculation is made.

 

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

 

residence, qualified agricultural property, qualified forest

 

property, supportive housing property, industrial personal

 

property, or commercial personal property.

 

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

 

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

 

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

 

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

 

code, MCL 380.1211.

 

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

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

 

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

 

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

 

380.1211, and retained for school operating purposes.

 

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

 

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

 

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

 

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

 

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

 

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

 

125.2871 to 125.2899.

 

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

 

as certified by the county treasurer and reported to the

 

department, for the calendar year ending in the current state

 

fiscal year divided by the district's membership excluding special

 

education pupils for the school year ending in the current state

 

fiscal year.

 

     Sec. 22b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $3,492,000,000.00

 

$3,542,000,000.00 for 2014-2015 for discretionary nonmandated

 

payments to districts under this section. Funds allocated under

 

this section that are not expended in the state fiscal year for

 

which they were allocated, as determined by the department, may be

 

used to supplement the allocations under sections 22a and 51c in

 

order to fully fund those calculated allocations for the same

 

fiscal year.

 

     (2) Subject to subsection (3) and section 296, the allocation

 

to a district under this section shall be an amount equal to the

 

sum of the amounts calculated under sections 20, 51a(2), 51a(3),

 

and 51a(11), minus the sum of the allocations to the district under

 

sections 22a and 51c.

 

     (3) In order to receive an allocation under subsection (1),

 

each district shall do all of the following:

 

     (a) Comply with section 1280b of the revised school code, MCL

 

380.1280b.

 

     (b) Comply with sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b.

 

     (c) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

     (d) Comply with section 1230g of the revised school code, MCL

 

380.1230g.

 

     (e) Comply with section 21f.

 

     (4) Districts are encouraged to use funds allocated under this

 

section for the purchase and support of payroll, human resources,

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

     (5) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state related to commercial or industrial property tax appeals,

 

including, but not limited to, appeals of classification, that

 

impact revenues dedicated to the state school aid fund.

 

     (6) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

     (7) It is the intent of the legislature that all

 

constitutional obligations of this state have been fully funded

 

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

 

an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

amount as may be necessary to satisfy the claim before making any

 

payments to districts under subsection (2). If funds are escrowed,

 

the escrowed funds are a work project appropriation and the funds

 

are carried forward into the following fiscal year. The purpose of

 

the work project is to provide for any payments that may be awarded

 

to districts as a result of litigation. The work project shall be

 

completed upon resolution of the litigation.

 

     (8) If the local claims review board or a court of competent

 

jurisdiction makes a final determination that this state is in

 

violation of section 29 of article IX of the state constitution of

 

1963 regarding state payments to districts, the state budget

 

director shall use work project funds under subsection (7) or

 

allocate from the discretionary funds for nonmandated payments

 

under this section the amount as may be necessary to satisfy the

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

     (9) If a claim is made in court that challenges the

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

an expedited review of the claim by the local claims review board.

 

If the claim exceeds $10,000,000.00, this state may remove the

 

action to the court of appeals, and the court of appeals shall have

 

and shall exercise jurisdiction over the claim.

 

     (10) If payments resulting from a final determination by the

 

local claims review board or a court of competent jurisdiction that

 

there has been a violation of section 29 of article IX of the state

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX medicaid funds is

 

filed against this state, then, for the purpose of addressing

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

money from the funds otherwise allocated under this section, up to

 

a maximum of 50% of the amount allocated in subsection (1). If

 

funds are placed in escrow under this subsection, those funds are a

 

work project appropriation and the funds are carried forward into

 

the following fiscal year. The purpose of the work project is to

 

provide for any payments that may be awarded to districts as a

 

result of the litigation. The work project shall be completed upon

 

resolution of the litigation. In addition, this state reserves the

 

right to terminate future federal title XIX medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

funds is challenged in the lawsuit. As used in this subsection,

 

"title XIX" means title XIX of the social security act, 42 USC 1396

 

to 1396v.1396w-5.

 

     (12) Payments under this section are subject to section 25f.

 

     Sec. 22c. From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $103,000,000.00

 

$73,000,000.00 to make equity payments to districts that have a

 

foundation allowance or per pupil payment as calculated under

 

section 20 for 2014-2015 of less than $7,251.00. The equity payment

 

for a district shall be an amount per membership pupil equal to the

 

lesser of $125.00 $92.00 or the difference between $7,251.00 and

 

the district's 2014-2015 foundation allowance or per pupil payment

 

as calculated under section 20.

 

     Sec. 147d. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 only an amount not to exceed

 

$108,000,000.00 $88,000,000.00 for payments to participating

 

entities.

 

     (2) The amount allocated to each participating entity under

 

this section shall be based on each participating entity's

 

proportion of the total covered payroll for the immediately

 

preceding fiscal year. A participating entity that receives funds

 

under this section shall use the funds solely for purposes of this

 

section.

 

     (3) Each participating entity receiving funds under this

 

section shall forward an amount equal to the sum of the amount

 

allocated under this section and the amount allocated under section

 

147c to the retirement system in a form, manner, and time frame

 

prescribed by the retirement system.

 

     (4) Payments under this section shall be used by the

 

retirement system specifically for the payment or prepayment of the

 

final years or partial years of any additional costs to the

 

retirement system due to the operation of section 81b of the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1381b,

 

without regard to the amortization of those costs under section

 

81b(5) of the public school employees retirement act of 1979, 1980

 

PA 300, MCL 38.1381b, and in a manner and form as determined by the

 

office of retirement services.

 

     (5) As used in this section:

 

     (a) "Participating entity" means a district, intermediate

 

district, community college, or district library that is a

 

reporting unit of the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to

 

the Michigan public school employees' retirement system for the

 

applicable fiscal year.

 

     (b) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.