April 30, 2015, Introduced by Reps. Brunner, Faris, Cochran, Liberati, Chang, Plawecki, Smiley, Geiss, Kivela, LaVoy, Irwin, Wittenberg, Guerra, Greig, Love, Singh, Clemente, Neeley, Derek Miller, Driskell and Sarah Roberts and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 507, 528, 561, and 1311l (MCL 380.507, 380.528,
380.561, and 380.1311l), sections 507, 528, and 561 as amended by
2011 PA 277 and section 1311l as added by 1999 PA 23.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 507. (1) An authorizing body that issues a contract for a
public school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each public school
academy that it authorizes. The authorizing body shall ensure that
the board of directors includes representation from the local
community.
(d) Oversee each public school academy operating under a
contract issued by the authorizing body. The oversight shall be
sufficient to ensure that the board of directors is in compliance
with the terms of the contract and with applicable law.
(e) Develop and implement a process for holding a public
school academy accountable for meeting applicable academic
performance standards set forth in the contract and for
implementing corrective action for a public school academy that
does not meet those standards.
(f) Take necessary measures to ensure that the board of
directors of a public school academy operates independently of any
educational management company involved in the operations of the
public school academy.
(g) Oversee and ensure that the pupil admission process used
by the public school academy is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the public school
academy maintains and releases information as necessary to comply
with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for a public school academy is the
fiscal agent for the public school academy. A state school aid
payment for a public school academy shall be paid to the
authorizing body that is the fiscal agent for that public school
academy, and the authorizing body shall then forward the payment to
the public school academy. Within 30 days after a contract is
submitted to the department by an authorizing body under subsection
(1), the department shall issue a district code to the public
school academy for which the contract was issued. If the department
does not issue a district code within 30 days after a contract is
filed, the state treasurer shall assign a temporary district code
in order for the public school academy to receive funding under the
state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the public school academy to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the public school academy to comply with all
applicable law.
(c) Failure of the public school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for a public school academy that is an alternative
school serving a special student population, if the superintendent
of public instruction determines that a public school academy site
that
has been operating for at least 4 years is among on the list
under section 1280c(1) of the lowest achieving 5% of all public
schools
in this state, as defined for the purposes of the federal
incentive
grant program created under sections 14005 and 14006 of
title
XIV of the American recovery and reinvestment act of 2009,
Public
Law 111-5, is in year 2 of
restructuring sanctions under the
no child left behind act of 2001, Public Law 107-110, not to
include the individualized education plan subgroup, and is not
currently undergoing reconstitution under this section, the
superintendent of public instruction shall notify the public school
academy's authorizing body. If an authorizing body receives notice
from the superintendent of public instruction under this
subsection, the authorizing body shall amend the public school
academy's contract to eliminate the public school academy's
authority to operate the existing age and grade levels at the site
and the public school academy shall cease operating the existing
age and grade levels at the site, effective at the end of the
current school year. If the public school academy operates at only
1 site, and the authorizing body receives notice from the
superintendent of public instruction under this subsection, the
authorizing body shall revoke the public school academy's contract,
effective at the end of the current school year.
(6) The decision of an authorizing body to issue, not issue,
or reconstitute a contract under this part, or to terminate or
revoke a contract under this section, is solely within the
discretion of the authorizing body, is final, and is not subject to
review by a court or any state agency. An authorizing body that
issues, does not issue, or reconstitutes a contract under this
part, or that terminates or revokes a contract under this section,
is not liable for that action to the public school academy, the
public school academy corporation, a pupil of the public school
academy, the parent or guardian of a pupil of the public school
academy, or any other person.
(7) Except as otherwise provided in subsection (5), before an
authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. An
authorizing body may reconstitute the public school academy in a
final attempt to improve student educational performance or to
avoid interruption of the educational process. An authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, canceling a contract with an educational management
organization, if any, withdrawing approval of a contract under
section 506, or appointing a new board of directors or a trustee to
take over operation of the public school academy.
(8) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the public
school academy under this part, shall return any school aid funds
held by the authorizing body that are attributable to the affected
pupils to the state treasurer for deposit into the state school aid
fund. The state treasurer shall distribute funds to the public
school in which the pupils enroll after the revocation pursuant to
a methodology established by the department and the center for
educational performance and information.
(9)
Not more later than 10 days after a public school
academy's contract terminates or is revoked, the authorizing body
shall notify the superintendent of public instruction in writing of
the name of the public school academy whose contract has terminated
or been revoked and the date of contract termination or revocation.
(10) If a public school academy's contract terminates or is
revoked, title to all real and personal property, interest in real
or personal property, and other assets owned by the public school
academy shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of a public school academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the public school academy corporation,
all in accordance with chapter 8 of the nonprofit corporation act,
1982 PA 162, MCL 450.2801 to 450.2864.
(b) The public school academy shall file a certificate of
dissolution with the director of the department of licensing and
regulatory affairs within 10 business days following board
approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the public school academy board
of directors shall provide a copy of the board of directors' plan
of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the public school academy's winding up of the dissolved corporation
in accordance with the plan of distribution of assets approved or
provided under subdivision (c).
(e) As part of the plan of distribution of assets, the public
school academy board of directors shall designate the director of
the department of technology, management, and budget, or his or her
designee, to dispose of all real property of the public school
academy corporation in accordance with the directives developed for
disposition of surplus land and facilities under section 251 of the
management and budget act, 1984 PA 431, MCL 18.1251.
(f) If the board of directors of a public school academy fails
to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the public school
academy board of directors and appoint a trustee to carry out the
board's plan of distribution of assets. Upon appointment, the
trustee shall have all the rights, powers, and privileges under law
that the public school academy board of directors had before being
suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any public school academy debt secured by the property or interest
in property, whether real or personal, the public school academy
board of directors, or a trustee appointed under this section,
shall forward any remaining money to the state treasurer. Following
receipt, the state treasurer, or his or her designee, shall deposit
this remaining money in the state school aid fund.
(h) The authorizing body for the public school academy shall
take custody of all student records of the public school academy,
shall maintain these records in the same manner as required by law
for a school district, and shall ensure that these records are
transferred to the school in which a pupil enrolls after the
termination or revocation in the manner prescribed by law.
(11) If an authorizing body revokes a public school academy
contract, not later than 90 days after the contract is revoked the
authorizing body shall submit a contract revocation report to the
superintendent of public instruction and shall post the contract
revocation report on its website. The contract revocation report
shall be submitted in the form and manner prescribed by the
superintendent of public instruction and shall include at least all
of the following:
(a) Identification of the name and location of the public
school academy, the effective date of the revocation, and the
reasons for the revocation.
(b) A description of the measures taken under subsection (8)
to ensure a smooth transition for the affected pupils.
(c) A description of the measures taken to comply with
subsection (10).
Sec. 528. (1) An authorizing body that issues a contract for
an urban high school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Adopt a resolution establishing the method of selection,
length of term, and number of members of the board of directors of
each urban high school academy that it authorizes. The resolution
shall be written or amended as necessary to include a requirement
that each member of the board of directors must be a citizen of the
United States.
(d) Oversee the operations of each urban high school academy
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the urban high school
academy is in compliance with the terms of the contract and with
applicable law. An authorizing body may enter into an agreement
with 1 or more other authorizing bodies to oversee an urban high
school academy operating under a contract issued by the authorizing
body.
(e) Develop and implement a process for holding an urban high
school academy board of directors accountable for meeting
applicable academic performance standards set forth in the contract
and for implementing corrective action for an urban high school
academy that does not meet those standards.
(f) Take necessary measures to ensure that an urban high
school academy board of directors operates independently of any
educational management company involved in the operations of the
urban high school academy.
(g) Oversee and ensure that the pupil admission process used
by the urban high school academy is operated in a fair and open
manner and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the urban high
school academy maintains and releases information as necessary to
comply with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for an urban high school academy is
the fiscal agent for the urban high school academy. A state school
aid payment for an urban high school academy shall be paid to the
authorizing body that is the fiscal agent for that urban high
school academy, which shall then forward the payment to the urban
high school academy. Within 30 days after a contract is submitted
to the department by an authorizing body under subsection (1), the
department shall issue a district code to the urban high school
academy for which the contract was issued. If the department does
not issue a district code within 30 days after a contract is filed,
the state treasurer shall assign a temporary district code in order
for the urban high school academy to receive funding under the
state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body that issued the contract if the authorizing body
determines that 1 or more of the following have occurred:
(a) Failure of the urban high school academy to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the urban high school academy to comply with
all applicable law.
(c) Failure of the urban high school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for an urban high school academy that is an
alternative school serving a special student population, if the
superintendent of public instruction determines that an urban high
school academy site that has been operating for at least 4 years is
among
on the list under section
1280c(1) of the lowest achieving 5%
of
all public schools in this state, as defined for the purposes of
the
federal incentive grant program created under sections 14005
and
14006 of title XIV of the American recovery and reinvestment
act
of 2009, Public Law 111-5, is in
year 2 of restructuring
sanctions under the no child left behind act of 2001, Public Law
107-110, not to include the individualized education plan subgroup,
and is not currently undergoing reconstitution under this section,
the superintendent of public instruction shall notify the urban
high school academy's authorizing body. If an authorizing body
receives notice from the superintendent of public instruction under
this subsection, the authorizing body shall amend the urban high
school academy's contract to eliminate the urban high school
academy's authority to operate the existing age and grade levels at
the site and the urban high school academy shall cease operating
the existing age and grade levels at the site, effective at the end
of the current school year. If the urban high school academy
operates at only 1 site, and the authorizing body receives notice
from the superintendent of public instruction under this
subsection, the authorizing body shall revoke the urban high school
academy's contract, effective at the end of the current school
year.
(6) The decision of an authorizing body to issue, not issue,
or reconstitute a contract under this part, or to terminate or
revoke a contract under this section, is solely within the
discretion of the authorizing body, is final, and is not subject to
review by a court or any state agency. An authorizing body that
issues, does not issue, or reconstitutes a contract under this
part, or that terminates or revokes a contract under this section,
is not liable for that action to the urban high school academy, the
urban high school academy corporation, a pupil of the urban high
school academy, the parent or guardian of a pupil of the urban high
school academy, or any other person.
(7) Except as otherwise provided in subsection (5), before an
authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. An
authorizing body may reconstitute the urban high school academy in
a final attempt to improve student educational performance or to
avoid interruption of the educational process. An authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, removing 1 or more members of the board of directors,
withdrawing approval to contract under section 527, or appointing a
new board of directors or a trustee to take over operation of the
urban high school academy.
(8) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the urban high
school academy under this part, shall return any school aid funds
held by the authorizing body that are attributable to the affected
pupils to the state treasurer for deposit into the state school aid
fund. The state treasurer shall distribute funds to the public
school in which the pupils enroll after the revocation pursuant to
a methodology established by the department and the center for
educational performance and information.
(9) If an authorizing body revokes a contract issued under
this part, the authorizing body may issue a new contract within the
1-year period following the revocation without the new contract
counting toward the maximum number of contracts that may be issued
under this part.
(10) Not more than 10 days after an urban high school
academy's contract terminates or is revoked, the authorizing body
shall notify the superintendent of public instruction in writing of
the name of the urban high school academy whose contract has
terminated or been revoked and the date of contract termination or
revocation.
(11) If an urban high school academy's contract terminates or
is revoked, title to all real and personal property, interest in
real or personal property, and other assets owned by the urban high
school academy shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of an urban high school academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the urban high school academy
corporation, all in accordance with chapter 8 of the nonprofit
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.
(b) The urban high school academy shall file a certificate of
dissolution
with the bureau of commercial services director of the
department of licensing and regulatory affairs within 10 business
days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the urban high school academy
board of directors shall provide a copy of the board of directors'
plan of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the urban high school academy's winding up of the dissolved
corporation in accordance with the plan of distribution of assets
approved or provided under subdivision (c).
(e) As part of the plan of distribution of assets, the urban
high school academy board of directors shall designate the director
of the department of technology, management, and budget, or his or
her designee, to dispose of all real property of the urban high
school academy corporation in accordance with the directives
developed for disposition of surplus land and facilities under
section 251 of the management and budget act, 1984 PA 431, MCL
18.1251.
(f) If the board of directors of an urban high school academy
fails to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the urban high
school academy board of directors and appoint a trustee to carry
out the board's plan of distribution of assets. Upon appointment,
the trustee shall have all the rights, powers, and privileges under
law that the urban high school academy board of directors had
before being suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any urban high school academy debt secured by the property or
interest in property, whether real or personal, the urban high
school academy board of directors, or a trustee appointed under
this section, shall forward any remaining money to the state
treasurer. Following receipt, the state treasurer, or his or her
designee, shall deposit this remaining money in the state school
aid fund.
(h) The authorizing body for the urban high school academy
shall take custody of all student records of the urban high school
academy, shall maintain these records in the same manner as
required by law for a school district, and shall ensure that these
records are transferred to the school in which a pupil enrolls
after the termination or revocation in the manner prescribed by
law.
(12) If an authorizing body revokes an urban high school
academy contract, not later than 90 days after the contract is
revoked the authorizing body shall submit a contract revocation
report to the superintendent of public instruction and shall post
the contract revocation report on its website. The contract
revocation report shall be submitted in the form and manner
prescribed by the superintendent of public instruction and shall
include at least all of the following:
(a) Identification of the name and location of the urban high
school academy, the effective date of the revocation, and the
reasons for the revocation.
(b) A description of the measures taken under subsection (8)
to ensure a smooth transition for the affected pupils.
(c) A description of the measures taken to comply with
subsection (11).
Sec. 561. (1) If an authorizing body issues a contract for a
school of excellence under this part, the authorizing body shall do
all of the following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each school of
excellence that it authorizes. The authorizing body shall ensure
that the board of directors includes representation from the local
community.
(d) Oversee the operations of each school of excellence
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the school of
excellence is in compliance with the terms of the contract and with
applicable law. This subdivision does not relieve any other
governmental entity of its enforcement or supervisory
responsibility.
(e) Develop and implement a process for holding a school of
excellence board of directors accountable for meeting applicable
academic performance standards set forth in the contract and for
implementing corrective action for a school of excellence that does
not meet those standards.
(f) Take necessary measures to ensure that a school of
excellence board of directors operates independently of any
educational management organization involved in the operations of
the school of excellence.
(g) Oversee and ensure that the pupil admission process used
by the school of excellence is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the school of
excellence maintains and releases information as necessary to
comply with applicable law.
(2) The authorizing body may enter into an agreement with 1 or
more authorizing bodies, as defined under part 6a, to carry out any
function of the authorizing body under subsection (1)(a) to (h).
(3) The authorizing body for a school of excellence is the
fiscal agent for the school of excellence. A state school aid
payment for a school of excellence shall be paid to the authorizing
body as the fiscal agent for that school of excellence, and the
authorizing body shall then forward the payment to the school of
excellence. Within 30 days after a contract is submitted to the
department by the authorizing body under subsection (1), the
department shall issue a district code to the school of excellence
for which the contract was issued. If the department does not issue
a district code within 30 days after a contract is filed, the state
treasurer shall assign a temporary district code in order for the
school of excellence to receive funding under the state school aid
act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the school of excellence to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the school of excellence to comply with all
applicable law.
(c) Failure of the school of excellence to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) Except for a school of excellence that is an alternative
school serving a special student population, if the superintendent
of public instruction determines that a school of excellence site
that
has been operating for at least 4 years is among on the list
under section 1280c(1) of the lowest achieving 5% of all public
schools
in this state, as defined for the purposes of the federal
incentive
grant program created under sections 14005 and 14006 of
title
XIV of the American recovery and reinvestment act of 2009,
Public
Law 111-5, is in year 2 of
restructuring sanctions under the
no child left behind act of 2001, Public Law 107-110, not to
include the individualized education plan subgroup, and is not
currently undergoing reconstitution under this section, the
superintendent of public instruction shall notify the school of
excellence's authorizing body. If an authorizing body receives
notice from the superintendent of public instruction under this
subsection, the authorizing body shall amend the school of
excellence's contract to eliminate the school of excellence's
authority to operate the existing age and grade levels at the site
and the school of excellence shall cease operating the existing age
and grade levels at the site, effective at the end of the current
school year. If the school of excellence operates at only 1 site or
is a cyber school, and the authorizing body receives notice from
the superintendent of public instruction under this subsection, the
authorizing body shall revoke the school of excellence's contract,
effective at the end of the current school year.
(6) Except for a contract issued by a school district pursuant
to a vote by the school electors on a ballot question under section
553(2), the decision of the authorizing body to issue, not issue,
or reconstitute a contract under this part, or to terminate or
revoke a contract under this section, is solely within the
discretion of the authorizing body, is final, and is not subject to
review by a court or any other state agency. If the authorizing
body issues, does not issue, or reconstitutes a contract under this
part, or terminates or revokes a contract under this section, the
authorizing body is not liable for that action to the school of
excellence, the school of excellence corporation, a pupil of the
school of excellence, the parent or guardian of a pupil of the
school of excellence, or any other person.
(7) Except as otherwise provided in subsection (5), before the
authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. The
authorizing body may reconstitute the school of excellence in a
final attempt to improve student educational performance or to
avoid interruption of the educational process. The authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, canceling a contract with an educational management
organization, if any, withdrawing approval to contract under
section 560, or appointing a new board of directors or a trustee to
take over operation of the school of excellence.
(8) If the authorizing body revokes a contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the school of excellence under this part, shall return any
school aid funds held by the authorizing body that are attributable
to the affected pupils to the state treasurer for deposit into the
state school aid fund. The state treasurer shall distribute funds
to the public school in which the pupils enroll after the
revocation pursuant to a methodology established by the department
and the center for educational performance and information.
(9) Not more than 10 days after a school of excellence's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the school of excellence whose contract has terminated or
been revoked and the date of contract termination or revocation.
(10) If a school of excellence's contract terminates or is
revoked, title to all real and personal property, interest in real
or personal property, and other assets owned by the school of
excellence shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of a school of excellence shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the school of excellence corporation,
all in accordance with chapter 8 of the nonprofit corporation act,
1982 PA 162, MCL 450.2801 to 450.2864.
(b) The school of excellence shall file a certificate of
dissolution
with the bureau of commercial services director of the
department of licensing and regulatory affairs within 10 business
days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the school of excellence board
of directors shall provide a copy of the board of directors' plan
of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the school of excellence's winding up of the dissolved corporation
in accordance with the plan of distribution of assets approved or
provided under subdivision (c).
(e) As part of the plan of distribution of assets, the school
of excellence board of directors shall designate the director of
the department of technology, management, and budget, or his or her
designee, to dispose of all real property of the school of
excellence corporation in accordance with the directives developed
for disposition of surplus land and facilities under section 251 of
the management and budget act, 1984 PA 431, MCL 18.1251.
(f) If the board of directors of a school of excellence fails
to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the school of
excellence board of directors and appoint a trustee to carry out
the board's plan of distribution of assets. Upon appointment, the
trustee shall have all the rights, powers, and privileges under law
that the school of excellence board of directors had before being
suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any school of excellence debt secured by the property or interest
in property, whether real or personal, the school of excellence
board of directors, or a trustee appointed under this section,
shall forward any remaining money to the state treasurer. Following
receipt, the state treasurer, or his or her designee, shall deposit
this remaining money in the state school aid fund.
(h) The authorizing body for the school of excellence shall
take custody of all student records of the school of excellence,
shall maintain these records in the same manner as required by law
for a school district, and shall ensure that these records are
transferred to the school in which a pupil enrolls after the
termination or revocation in the manner prescribed by law.
(11) If an authorizing body revokes a contract, not later than
90 days after the contract is revoked the authorizing body shall
submit a contract revocation report to the superintendent of public
instruction and shall post the contract revocation report on its
website. The contract revocation report shall be submitted in the
form and manner prescribed by the superintendent of public
instruction and shall include at least all of the following:
(a) Identification of the name and location of the school of
excellence, the effective date of the revocation, and the reasons
for the revocation.
(b) A description of the measures taken under subsection (8)
to ensure a smooth transition for the affected pupils.
(c) A description of the measures taken to comply with
subsection (10).
Sec. 1311l. (1) The authorizing body for a strict discipline
academy is the fiscal agent for the strict discipline academy. A
state school aid payment for a strict discipline academy shall be
paid to the authorizing body that is the fiscal agent for that
strict discipline academy, which shall then forward the payment to
the strict discipline academy. An authorizing body has the
responsibility to oversee a strict discipline academy's compliance
with the contract and all applicable law. A contract issued under
sections 1311b to 1311l may be revoked by the authorizing body that
issued the contract if the authorizing body determines that 1 or
more of the following has occurred:
(a) Failure of the strict discipline academy to abide by and
meet the educational goals set forth in the contract.
(b) Failure of the strict discipline academy to comply with
all applicable law.
(c) Failure of the strict discipline academy to meet generally
accepted public sector accounting principles.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(2) The decision of an authorizing body to revoke a contract
under this section is solely within the discretion of the
authorizing body, is final, and is not subject to review by a court
or any state agency. An authorizing body that revokes a contract
under this section is not liable for that action to the strict
discipline academy, strict discipline academy corporation, a pupil
of the strict discipline academy, the parent or guardian of a pupil
of the strict discipline academy, or any other person.
(3) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the strict
discipline academy under this part, shall return any school aid
funds held by the authorizing body that are attributable to the
affected pupils to the state treasurer for deposit into the state
school aid fund. The state treasurer shall distribute funds to the
public school in which the pupils enroll after the revocation
pursuant to a methodology established by the department and the
center for educational performance and information.
(4) Not later than 10 days after a strict discipline academy's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the strict discipline academy whose contract has terminated
or been revoked and the date of contract termination or revocation.
(5) If a strict discipline academy's contract terminates or is
revoked, title to all real and personal property, interest in real
or personal property, and other assets owned by the strict
discipline academy shall revert to the state. This property shall
be distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of a strict discipline academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the strict discipline academy
corporation, all in accordance with chapter 8 of the nonprofit
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.
(b) The strict discipline academy shall file a certificate of
dissolution with the director of the department of licensing and
regulatory affairs within 10 business days following board
approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the strict discipline academy
board of directors shall provide a copy of the board of directors'
plan of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the strict discipline academy's winding up of the dissolved
corporation in accordance with the plan of distribution of assets
approved or provided under subdivision (c).
(e) As part of the plan of distribution of assets, the strict
discipline academy board of directors shall designate the director
of the department of technology, management, and budget, or his or
her designee, to dispose of all real property of the strict
discipline academy corporation in accordance with the directives
developed for disposition of surplus land and facilities under
section 251 of the management and budget act, 1984 PA 431, MCL
18.1251.
(f) If the board of directors of a strict discipline academy
fails to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the strict
discipline academy board of directors and appoint a trustee to
carry out the board's plan of distribution of assets. Upon
appointment, the trustee shall have all the rights, powers, and
privileges under law that the strict discipline academy board of
directors had before being suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any strict discipline academy debt secured by the property or
interest in property, whether real or personal, the strict
discipline academy board of directors, or a trustee appointed under
this section, shall forward any remaining money to the state
treasurer. Following receipt, the state treasurer, or his or her
designee, shall deposit this remaining money in the state school
aid fund.
(h) The authorizing body for the strict discipline academy
shall take custody of all student records of the strict discipline
academy, shall maintain these records in the same manner as
required by law for a school district, and shall ensure that these
records are transferred to the school in which a pupil enrolls
after the termination or revocation in the manner prescribed by
law.
(6) If an authorizing body revokes a strict discipline
academy's contract, not later than 90 days after the contract is
revoked the authorizing body shall submit a contract revocation
report to the superintendent of public instruction and shall post
the contract revocation report on its website. The contract
revocation report shall be submitted in the form and manner
prescribed by the superintendent of public instruction and shall
include at least all of the following:
(a) Identification of the name and location of the strict
discipline academy, the effective date of the revocation, and the
reasons for the revocation.
(b) A description of the measures taken under subsection (3)
to ensure a smooth transition for the affected pupils.
(c) A description of the measures taken to comply with
subsection (5).
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.