Bill Text: MI HB5287 | 2017-2018 | 99th Legislature | Introduced

---

Bill Title: Education; public school academies; requirements for management agreement with educational management organizations; revise. Amends secs. 503c, 504a, 523c, 525, 553c, 557 & 1311h of 1976 PA 451 (MCL 380.503c et seq.). TIE BAR WITH: HB 5286'17

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-12-05 - Bill Electronically Reproduced 11/30/2017 [HB5287 Detail]

Download: Michigan-2017-HB5287-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5287

 

 

November 30, 2017, Introduced by Reps. Elder, Wittenberg, Faris, Cochran, Greig, Ellison, Gay-Dagnogo, Lasinski, Sowerby, Chang, Geiss, Guerra, Camilleri, Pagan, Moss and Yancey and referred to the Committee on Education Reform.

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 503c, 504a, 523c, 525, 553c, 557, and 1311h

 

(MCL 380.503c, 380.504a, 380.523c, 380.525, 380.553c, 380.557, and

 

380.1311h), 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 557 as added by 2009 PA 205, and section 1311h as amended

 

by 2012 PA 620.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

in this section that are entered into or renewed after the

 

effective date of this section, March 28, 2012, if the board of

 

directors of a public school academy enters into or renews a

 

management agreement with an educational management organization to

 

carry out the operations of the public school academy, both of the

following apply:

 

     (a) The management agreement shall require the educational

 

management organization to provide to the board of directors at

 

least annually all of the same information that a school district

 

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

 

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

 

for which that information is available.

 

     (b) Within 30 days after receiving the information under

 

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

 

information it receives under subdivision (a) available through a

 

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

 

manner prescribed by the department.

 

     (2) In addition to the requirements under subsection (1),

 

beginning with management agreements described in this section that

 

are entered into or renewed after the effective date of the

 

amendatory act that added this subsection, if the board of

 

directors of a public school academy enters into or renews a

 

management agreement with an educational management organization to

 

carry out the operations of the public school academy, all of the

 

following apply:

 

     (a) The management agreement shall require the educational

 

management organization to provide to the board of directors, at

 

least annually, audited financial statements for the educational

 

management organization that disclose the specific financial

 

expenditures of the money received by the educational management

 

organization under the management agreement.

 

     (b) The management agreement shall require the educational

management organization to provide to the board of directors, for

 

each employee, officer, or board member of the educational

 

management organization whose compensation exceeds $100,000.00 per

 

year, a list providing a description and cost of each fringe

 

benefit that is included in the individual's compensation package.

 

     (c) Within 30 days after receiving the information under

 

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

 

the information it receives under subdivisions (a) and (b) and the

 

management agreement available through a link on the public school

 

academy's website homepage, in a form and manner prescribed by the

 

department.

 

     (3) (2) As used in this section:

 

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

 

enters into a management agreement with a public school academy.

 

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

 

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

 

legal entity.

 

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

 

comprehensive educational, administrative, management, or

 

instructional services or staff to a public school academy.

 

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

 

and ends June 30.

 

     Sec. 504a. 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, if the agreement is in

 

compliance with sections 7 and 18 of the state school aid act of

 

1979, MCL 388.1607 and 388.1618.

 

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

 

in this section that are entered into or renewed after the

 

effective date of this section, March 28, 2012, 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 of

 

the following apply:

 

     (a) The management agreement shall require the educational

 

management organization to provide to the board of directors at

 

least annually all of the same information that a school district

 

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

 

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

 

for which that information is available.

 

     (b) Within 30 days after receiving the information under

 

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

 

information it receives under subdivision (a) available through a

 

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

 

and manner prescribed by the department.

 

     (2) In addition to the requirements under subsection (1),

 

beginning with management agreements described in this section that

 

are entered into or renewed after the effective date of the

 

amendatory act that added this subsection, if the board of

 

directors of an urban high school academy enters into or renews a

management agreement with an educational management organization to

 

carry out the operations of the urban high school academy, all of

 

the following apply:

 

     (a) The management agreement shall require the educational

 

management organization to provide to the board of directors, at

 

least annually, audited financial statements for the educational

 

management organization that disclose the specific financial

 

expenditures of the money received by the educational management

 

organization under the management agreement.

 

     (b) The management agreement shall require the educational

 

management organization to provide to the board of directors, for

 

each employee, officer, or board member of the educational

 

management organization whose compensation exceeds $100,000.00 per

 

year, a list providing a description and cost of each fringe

 

benefit that is included in the individual's compensation package.

 

     (c) Within 30 days after receiving the information under

 

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

 

the information it receives under subdivisions (a) and (b) and the

 

management agreement available through a link on the urban high

 

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

 

by the department.

 

     (3) (2) As used in this section:

 

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

 

enters into a management agreement with an urban high school

 

academy.

 

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

 

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

legal entity.

 

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

 

comprehensive educational, administrative, management, or

 

instructional services or staff to an urban high school academy.

 

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

 

and ends June 30.

 

     Sec. 525. 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, if the agreement is

 

in compliance with sections 7 and 18 of the state school aid act of

 

1979, MCL 388.1607 and 388.1618.

 

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

 

in this section that are entered into or renewed after the

 

effective date of this section, March 28, 2012, if the board of

 

directors of a school of excellence enters into or renews a

 

management agreement with an educational management organization to

 

carry out the operations of the school of excellence, both of the

 

following apply:

 

     (a) The management agreement shall 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.

 

     (b) Within 30 days after receiving the information under

 

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

 

information it receives under subdivision (a) available through a

 

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

 

manner prescribed by the department.

 

     (2) In addition to the requirements under subsection (1),

 

beginning with management agreements described in this section that

 

are entered into or renewed after the effective date of the

 

amendatory act that added this subsection, if the board of

 

directors of a school of excellence enters into or renews a

 

management agreement with an educational management organization to

 

carry out the operations of the school of excellence, all of the

 

following apply:

 

     (a) The management agreement shall require the educational

 

management organization to provide to the board of directors, at

 

least annually, audited financial statements for the educational

 

management organization that disclose the specific financial

 

expenditures of the money received by the educational management

 

organization under the management agreement.

 

     (b) The management agreement shall require the educational

 

management organization to provide to the board of directors, for

 

each employee, officer, or board member of the educational

 

management organization whose compensation exceeds $100,000.00 per

 

year, a list providing a description and cost of each fringe

 

benefit that is included in the individual's compensation package.

 

     (c) Within 30 days after receiving the information under

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

 

the information it receives under subdivisions (a) and (b) and the

 

management agreement available through a link on the school of

 

excellence's website homepage, in a form and manner prescribed by

 

the department.

 

     (3) (2) As used in this section:

 

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

 

enters into a management agreement with a school of excellence.

 

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

 

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

 

legal entity.

 

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

 

comprehensive educational, administrative, management, or

 

instructional services or staff to a school of excellence.

 

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

 

and ends June 30.

 

     Sec. 557. 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, if the agreement is in

 

compliance with sections 7 and 18 of the state school aid act of

 

1979, MCL 388.1607 and 388.1618.

 

     (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. 1311h. (1) In addition to other powers set forth in

 

sections 1311b to 1311l, 1311m, a strict discipline academy may

 

take action to carry out the purposes for which it was incorporated

under sections 1311b to 1311l, 1311m, 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 Subject to subsections (2) and (3), to enter into

 

binding legal agreements with persons or entities as necessary for

 

the operation, management, financing, and maintenance of the strict

 

discipline academy, if the agreement is in compliance with sections

 

7 and 18 of the state school aid act of 1979, MCL 388.1607 and

 

388.1618.

 

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

 

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

 

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

 

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

 

the strict discipline academy in the furtherance of its public

 

purposes.

 

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

 

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

 

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

 

borrowing of money and issuance of bonds by a strict discipline

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

 

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

 

obligations of the strict discipline academy, pledging the general

 

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

 

under this section are subject to the revised municipal finance

 

act, 2001 PA 34, MCL 141.2101 to 141.2821.

 

     (2) Beginning with management agreements that are entered into

 

or renewed after the effective date of the amendatory act that

 

added this subsection, if the board of directors of a strict

 

discipline academy enters into or renews a management agreement

 

with an educational management organization to carry out the

 

operations of the strict discipline academy, both of the following

 

apply:

 

     (a) The management agreement shall require the educational

 

management organization to provide to the board of directors at

 

least annually all the same information that a school district is

 

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

 

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

 

for which that information is available.

 

     (b) Within 30 days after receiving the information under

 

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

 

information it receives under subdivision (a) available through a

 

link on the strict discipline academy's website homepage, in a form

 

and manner prescribed by the department.

 

     (3) Beginning with management agreements that are entered into

 

or renewed after the effective date of the amendatory act that

 

added this subsection, if the board of directors of a strict

discipline academy enters into or renews a management agreement

 

with an educational management organization to carry out the

 

operations of the strict discipline academy, all of the following

 

apply:

 

     (a) The management agreement shall require the educational

 

management organization to provide to the board of directors, at

 

least annually, audited financial statements for the educational

 

management organization that disclose the specific financial

 

expenditures of the money received by the educational management

 

organization under the management agreement.

 

     (b) The management agreement shall require the educational

 

management organization to provide to the board of directors, for

 

each employee, officer, or board member of the educational

 

management organization whose compensation exceeds $100,000.00 per

 

year, a list providing a description and cost of each fringe

 

benefit that is included in the individual's compensation package.

 

     (c) Within 30 days after receiving the information under

 

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

 

the information it receives under subdivisions (a) and (b) and the

 

management agreement available through a link on the strict

 

discipline academy's website homepage, in a form and manner

 

prescribed by the department.

 

     (4) As used in this section:

 

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

 

enters into a management agreement with a strict discipline

 

academy.

 

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

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

 

legal entity.

 

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

 

comprehensive educational, administrative, management, or

 

instructional services or staff to a strict discipline academy.

 

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

 

and ends June 30.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5286 (request no.

 

00977'17) of the 99th Legislature is enacted into law.