Bill Text: MI HB5292 | 2017-2018 | 99th Legislature | Introduced


Bill Title: Education; public school academies; additional requirements for oversight of public school academies by authorizing bodies; provide for. Amends secs. 507, 528 & 561 of 1976 PA 451 (MCL 380.507 et seq.).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-12-05 - Bill Electronically Reproduced 11/30/2017 [HB5292 Detail]

Download: Michigan-2017-HB5292-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5292

 

 

November 30, 2017, Introduced by Reps. Sneller, Wittenberg, Faris, Cochran, Greig, Ellison, Gay-Dagnogo, Lasinski, Sowerby, Chang, Geiss, Guerra, Camilleri, Pagan, Moss, Elder 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 507, 528, and 561 (MCL 380.507, 380.528, and

 

380.561), as amended by 2016 PA 192.

 

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.

 

     (i) Ensure that a representative of the authorizing body

 

attends each meeting of the board of directors of the public school

 

academy under section 1201.


     (j) For each meeting of the board of directors of the public

 

school academy under section 1201, prepare a report detailing the

 

authorizing body's efforts to provide oversight of the public

 

school academy as required under subdivision (d) and section

 

502(4).

 

     (k) Present the most recent report prepared under subdivision

 

(j) at each meeting of the board of directors of the public school

 

academy under section 1201.

 

     (l) Ensure that the bylaws adopted by the board of directors

 

of a public school academy include a requirement that any act of

 

the board of directors be approved by a majority of the members

 

serving on the board.

 

     (m) Oversee all contracts entered into by a public school

 

academy to ensure that all terms and conditions of the contract are

 

fulfilled.

 

     (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 state school

 

reform/redesign officer determines that a public school academy

 

site that has been operating for at least 4 years is among the

 

lowest achieving 5% of all public schools in this state for the

 

immediately preceding 3 school years, as determined under section

 

1280c, not to include any individualized education plan subgroup,

 

the state school reform/redesign officer shall notify the public

 

school academy's authorizing body. Also, except for a public school

 

academy that is an alternative school serving a special student


population, after the accountability system under section 390 has

 

been in effect in the community district for at least 3 full school

 

years, if the state school reform/redesign officer determines that

 

a public school academy site located in a community district has

 

been assigned a grade of "F" under section 390 for the immediately

 

preceding 3 school years, and is not currently undergoing

 

reconstitution under this section, the state school reform/redesign

 

officer shall notify the public school academy's authorizing body.

 

Subject to subsection (6), if an authorizing body receives notice

 

from the state school reform/redesign officer 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. Subject to subsection (6), if the public

 

school academy operates at only 1 site, and the authorizing body

 

receives notice from the state school reform/redesign officer under

 

this subsection, the authorizing body shall revoke the public

 

school academy's contract, effective at the end of the current

 

school year.

 

     (6) For a public school academy or site that is subject to a

 

notice to its authorizing body under this subsection, the state

 

school reform/redesign officer shall consider other public school

 

options available to pupils in the grade levels offered by the

 

public school academy or site who reside in the geographic area

 

served by the public school academy or site. If the state school


reform/redesign officer determines that closure of the public

 

school academy or site would result in an unreasonable hardship to

 

these pupils because there are insufficient other public school

 

options reasonably available for these pupils, the state school

 

reform/redesign officer may rescind the notice. If the state school

 

reform/redesign officer rescinds a notice subjecting a public

 

school academy or site to closure, the state school reform/redesign

 

officer shall do so before the end of the school year. If the state

 

school reform/redesign officer rescinds a notice subjecting a

 

public school academy or site to closure, the state school

 

reform/redesign officer shall require the public school academy or

 

site to implement a school improvement plan that includes measures

 

to increase pupil growth and improve pupil proficiency, with growth

 

and proficiency measured by performance on state assessments.

 

     (7) Except as otherwise provided in section 502 or 503, 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.

 

     (8) Except as otherwise provided in this section, 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.

 

     (9) 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.

 

     (10) Not more than 10 days after a public school academy's

 

contract terminates or is revoked, the authorizing body shall

 

notify the superintendent of public instruction in writing of the

 

name of the public school academy whose contract has terminated or


been revoked and the date of contract termination or revocation.

 

     Sec. 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.

 

     (i) Ensure that a representative of the authorizing body

 

attends each meeting of the board of directors of the urban high

 

school academy under section 1201.

 

     (j) For each meeting of the board of directors of the urban

 

high school academy under section 1201, prepare a report detailing

 

the authorizing body's efforts to provide oversight of the urban

 

high school academy as required under subdivision (d).

 

     (k) Present the most recent report prepared under subdivision

 

(j) at each meeting of the board of directors of the urban high

 

school academy under section 1201.

 

     (l) Ensure that the bylaws adopted by the board of directors

 

of an urban high school academy include a requirement that any act

 

of the board of directors be approved by a majority of the members

 

serving on the board.

 

     (m) Oversee all contracts entered into by an urban high school

 

academy to ensure that all terms and conditions of the contract are

 

fulfilled.


     (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

 

state school reform/redesign officer determines that an urban high

 

school academy site that has been operating for at least 4 years is

 

among the lowest achieving 5% of all public schools in this state

 

for the immediately preceding 3 school years, as determined under

 

section 1280c, not to include any individualized education plan

 

subgroup, the state school reform/redesign officer shall notify the

 

urban high school academy's authorizing body. Also, except for an

 

urban high school academy that is an alternative school serving a

 

special student population, after the accountability system under

 

section 390 has been in effect in the community district for at

 

least 3 full school years, if the state school reform/redesign

 

officer determines that an urban high school academy site located

 

in a community district has been assigned a grade of "F" under

 

section 390 for the immediately preceding 3 school years, and is

 

not currently undergoing reconstitution under this section, the

 

state school reform/redesign officer shall notify the urban high

 

school academy's authorizing body. Subject to subsection (6), if an

 

authorizing body receives notice from the state school

 

reform/redesign officer 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. Subject to

 

subsection (6), if the urban high school academy operates at only 1

 

site, and the authorizing body receives notice from the state

 

school reform/redesign officer 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) For an urban high school academy or site that is subject

 

to a notice to its authorizing body under this subsection, the

 

state school reform/redesign officer shall consider other public

 

school options available to pupils in the grade levels offered by

 

the urban high school academy or site who reside in the geographic

 

area served by the urban high school academy or site. If the state

 

school reform/redesign officer determines that closure of the urban

 

high school academy or site would result in an unreasonable

 

hardship to these pupils because there are insufficient other

 

public school options reasonably available for these pupils, the

 

state school reform/redesign officer may rescind the notice. If the

 

state school reform/redesign officer rescinds a notice subjecting

 

an urban high school academy or site to closure, the state school

 

reform/redesign officer shall do so before the end of the school

 

year. If the state school reform/redesign officer rescinds a notice

 

subjecting an urban high school academy or site to closure, the

 

state school reform/redesign officer shall require the urban high

 

school academy or site to implement a school improvement plan that

 

includes measures to increase pupil growth and improve pupil

 

proficiency, with growth and proficiency measured by performance on

 

state assessments.


     (7) Except as otherwise provided in section 522, 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.

 

     (8) Except as otherwise provided in this section, 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.

 

     (9) 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.

 

     (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 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.

 

     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.

 

     (i) Ensure that a representative of the authorizing body

 

attends each meeting of the board of directors of the school of

 

excellence under section 1201.

 

     (j) For each meeting of the board of directors of the school

 

of excellence under section 1201, prepare a report detailing the

 

authorizing body's efforts to provide oversight of the school of


excellence as required under subdivision (d) and section 552(8).

 

     (k) Present the most recent report prepared under subdivision

 

(j) at each meeting of the board of directors of the school of

 

excellence under section 1201.

 

     (l) Ensure that the bylaws adopted by the board of directors

 

of a school of excellence include a requirement that any act of the

 

board of directors be approved by a majority of the members serving

 

on the board.

 

     (m) Oversee all contracts entered into by a school of

 

excellence to ensure that all terms and conditions of the contract

 

are fulfilled.

 

     (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 state school

 

reform/redesign officer determines that a school of excellence site

 

that has been operating for at least 4 years is among the lowest

 

achieving 5% of all public schools in this state for the

 

immediately preceding 3 school years, as determined under section

 

1280c, not to include any individualized education plan subgroup,

 

the state school reform/redesign officer shall notify the school of

 

excellence's authorizing body. Also, except for a school of

 

excellence that is an alternative school serving a special student

 

population, after the accountability system under section 390 has

 

been in effect in the community district for at least 3 full school

 

years, if the state school reform/redesign officer determines that

 

a school of excellence site located in a community district has


been assigned a grade of "F" under section 390 for the immediately

 

preceding 3 school years, and is not currently undergoing

 

reconstitution under this section, the state school reform/redesign

 

officer shall notify the school of excellence's authorizing body.

 

Subject to subsection (6), if an authorizing body receives notice

 

from the state school reform/redesign officer 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. Subject to subsection (6), if the school of excellence

 

operates at only 1 site or is a cyber school, and the authorizing

 

body receives notice from the state school reform/redesign officer

 

under this subsection, the authorizing body shall revoke the school

 

of excellence's contract, effective at the end of the current

 

school year.

 

     (6) For a school of excellence or site that is subject to a

 

notice to its authorizing body under this subsection, the state

 

school reform/redesign officer shall consider other public school

 

options available to pupils in the grade levels offered by the

 

school of excellence or site who reside in the geographic area

 

served by the school of excellence or site. If the state school

 

reform/redesign officer determines that closure of the school of

 

excellence or site would result in an unreasonable hardship to

 

these pupils because there are insufficient other public school

 

options reasonably available for these pupils, the state school


reform/redesign officer may rescind the notice. If the state school

 

reform/redesign officer rescinds a notice subjecting a school of

 

excellence or site to closure, the state school reform/redesign

 

officer shall do so before the end of the school year. If the state

 

school reform/redesign officer rescinds a notice subjecting a

 

school of excellence or site to closure, the state school

 

reform/redesign officer shall require the school of excellence or

 

site to implement a school improvement plan that includes measures

 

to increase pupil growth and improve pupil proficiency, with growth

 

and proficiency measured by performance on state assessments.

 

     (7) 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), and except as otherwise provided in section 552, 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.

 

     (8) Except as otherwise provided in this section, 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.

 

     (9) 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.

 

     (10) 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.

 

     (11) If a school of excellence's contract terminates or is


revoked, title to all real and personal property, interest in real

 

or personal property, and other assets owned by the school of

 

excellence shall revert to the state. This property shall be

 

distributed in accordance with the following:

 

     (a) Within 30 days following the termination or revocation,

 

the board of directors of a school of excellence shall hold a

 

public meeting to adopt a plan of distribution of assets and to

 

approve the dissolution of the school of excellence corporation,

 

all in accordance with chapter 8 of the nonprofit corporation act,

 

1982 PA 162, MCL 450.2801 to 450.2864.

 

     (b) The school of excellence shall file a certificate of

 

dissolution with the department of 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.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

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