HOUSE BILL No. 5629

 

June 4, 2014, Introduced by Rep. Olumba and referred to the Committee on Appropriations.

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending section 20 (MCL 388.1620), as amended by 2013 PA 130,

 

and by adding section 31e.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 20. (1) For 2013-2014, the basic foundation allowance is

 

$8,049.00.

 

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

 

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

 

allowance in the amount specified in subsection (1).

 

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

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 


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

 

immediately preceding state fiscal year that was at least equal to

 

the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state

 

fiscal year in the lowest foundation allowance among all districts,

 

but less than the basic foundation allowance for the immediately

 

preceding state fiscal year, the district shall receive a

 

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

 

of $6,966.00 or the district's foundation allowance for the

 

immediately preceding state fiscal year plus the difference between

 

twice the dollar amount of the adjustment from the immediately

 

preceding state fiscal year to the current state fiscal year made

 

in the basic foundation allowance and [(the dollar amount of the

 

adjustment from the immediately preceding state fiscal year to the

 

current state fiscal year made in the basic foundation allowance

 

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

 

foundation allowance for the immediately preceding state fiscal

 

year and the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state

 

fiscal year in the lowest foundation allowance among all districts)

 

divided by the difference between the basic foundation allowance

 

for the current state fiscal year and the sum of $7,108.00 plus the

 

total dollar amount of all adjustments made from 2006-2007 to the

 

immediately preceding state fiscal year in the lowest foundation

 

allowance among all districts]. For 2011-2012, for a district that

 

had a foundation allowance for the immediately preceding state

 

fiscal year that was at least equal to the sum of $7,108.00 plus

 


the total dollar amount of all adjustments made from 2006-2007 to

 

the immediately preceding state fiscal year in the lowest

 

foundation allowance among all districts, but less than the basic

 

foundation allowance for the immediately preceding state fiscal

 

year, the district shall receive a foundation allowance in an

 

amount equal to the district's foundation allowance for 2010-2011,

 

minus $470.00. However, the foundation allowance for a district

 

that had less than the basic foundation allowance for the

 

immediately preceding state fiscal year shall not exceed the basic

 

foundation allowance for the current state fiscal year.

 

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

 

district that in the immediately preceding state fiscal year had a

 

foundation allowance in an amount at least equal to the amount of

 

the basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance for

 

2011-2012 in an amount equal to the district's foundation allowance

 

for 2010-2011, minus $470.00.

 

     (c) Except as otherwise provided in subdivision (d), for a

 

district that in the 1994-95 state fiscal year had a foundation

 

allowance greater than $6,500.00, the district's foundation

 

allowance is an amount equal to the sum of the district's

 

foundation allowance for the immediately preceding state fiscal

 

year plus the lesser of the increase in the basic foundation

 

allowance for the current state fiscal year, as compared to the

 

immediately preceding state fiscal year, or the product of the

 

district's foundation allowance for the immediately preceding state

 

fiscal year times the percentage increase in the United States

 


consumer price index in the calendar year ending in the immediately

 

preceding fiscal year as reported by the May revenue estimating

 

conference conducted under section 367b of the management and

 

budget act, 1984 PA 431, MCL 18.1367b. Except as otherwise provided

 

in subdivision (d), for 2011-2012, for a district that in the 1994-

 

1995 state fiscal year had a foundation allowance greater than

 

$6,500.00, the district's foundation allowance is an amount equal

 

to the district's foundation allowance for the 2010-2011 fiscal

 

year minus $470.00.

 

     (d) For a district that in the 1994-95 state fiscal year had a

 

foundation allowance greater than $6,500.00 and that had a

 

foundation allowance for the 2009-2010 state fiscal year, as

 

otherwise calculated under this section, that was less than the

 

basic foundation allowance, the district's foundation allowance for

 

2011-2012 and each succeeding fiscal year shall be considered to be

 

an amount equal to the basic foundation allowance.

 

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

 

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

 

rounded up to the nearest whole dollar.

 

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

 

as that section was in effect for 2001-2002, the district's 2001-

 

2002 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2001-2002

 

foundation allowance as otherwise calculated under this section

 

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

 

2001-2002 under section 22c as that section was in effect for 2001-

 

2002.

 


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

 

as that section was in effect for 2006-2007, the district's 2006-

 

2007 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2006-2007

 

foundation allowance as otherwise calculated under this section

 

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

 

2006-2007 under section 22c as that section was in effect for 2006-

 

2007.

 

     (h) For 2012-2013, for a district that had a foundation

 

allowance for the 2011-2012 state fiscal year of less than

 

$6,966.00, the district's foundation allowance is an amount equal

 

to $6,966.00.

 

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

 

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

 

the district's foundation allowance or the basic foundation

 

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

 

minus the difference between the sum of the product of the taxable

 

value per membership pupil of all property in the district that is

 

nonexempt property times the district's certified mills and, for a

 

district with certified mills exceeding 12, the product of the

 

taxable value per membership pupil of property in the district that

 

is commercial personal property times the certified mills minus 12

 

mills and the quotient of the ad valorem property tax revenue of

 

the district captured under tax increment financing acts divided by

 

the district's membership excluding special education pupils. For a

 

district described in subsection (3)(c), the state portion of the

 

district's foundation allowance is an amount equal to $6,962.00

 


plus the difference between the district's foundation allowance for

 

the current state fiscal year and the district's foundation

 

allowance for 1998-99, minus the difference between the sum of the

 

product of the taxable value per membership pupil of all property

 

in the district that is nonexempt property times the district's

 

certified mills and, for a district with certified mills exceeding

 

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

 

property in the district that is commercial personal property times

 

the certified mills minus 12 mills and the quotient of the ad

 

valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership

 

excluding special education pupils. For a district that has a

 

millage reduction required under section 31 of article IX of the

 

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

 

foundation allowance shall be calculated as if that reduction did

 

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

 

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

 

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

 

satisfy debt obligations of the dissolved district under section 12

 

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

 

membership pupil of property in the receiving district used for the

 

purposes of this subsection, does not include the taxable value of

 

property within the geographic area of the dissolved district.

 

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

 

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

 

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

 

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

 


allocation calculated under this section shall be based on the

 

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

 

residence or the foundation allowance of the educating district.

 

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

 

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

 

district of residence, the allocation calculated under this section

 

shall be based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

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

 

residence.

 

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

 

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

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

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

 

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

 

the sum of the local school operating revenue per membership pupil

 

other than special education pupils for the district in which the

 

public school academy is located and the state portion of that

 

district's foundation allowance shall not have that allocation

 

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

 

Notwithstanding section 101, for a public school academy that

 

begins operations after the pupil membership count day, the amount

 

per membership pupil calculated under this subsection shall be

 


adjusted by multiplying that amount per membership pupil by the

 

number of hours of pupil instruction provided by the public school

 

academy after it begins operations, as determined by the

 

department, divided by the minimum number of hours of pupil

 

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

 

calculation shall not exceed the amount per membership pupil

 

otherwise calculated under this subsection.

 

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

 

pupils attending an achievement school and in membership in the

 

education achievement system, other than special education pupils,

 

or for pupils enrolled in a public college preparatory boarding

 

school funded under section 31e, other than special education

 

pupils, the allocation calculated under this section is an amount

 

per membership pupil other than special education pupils equal to

 

the foundation allowance of the district in which the achievement

 

school or public college preparatory boarding school is located,

 

not to exceed the basic foundation allowance. Notwithstanding

 

section 101, for an achievement school or public college

 

preparatory boarding school that begins operation after the pupil

 

membership count day, the amount per membership pupil calculated

 

under this subsection shall be adjusted by multiplying that amount

 

per membership pupil by the number of hours of pupil instruction

 

provided by the achievement school or public college preparatory

 

boarding school after it begins operations, as determined by the

 

department, divided by the minimum number of hours of pupil

 

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

 

calculation shall not exceed the amount per membership pupil

 


otherwise calculated under this subsection. For the purposes of

 

this subsection, if a public school is transferred from a district

 

to the state school reform/redesign district or the achievement

 

authority under section 1280c of the revised school code, MCL

 

380.1280c, that public school is considered to be an achievement

 

school within the education achievement system and not a school

 

that is part of a district, and a pupil attending that public

 

school is considered to be in membership in the education

 

achievement system and not in membership in the district that

 

operated the school before the transfer.

 

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

 

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

 

districts or by annexation, the resulting district's foundation

 

allowance under this section beginning after the effective date of

 

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

 

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

 

affected districts, calculated as provided in this section,

 

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

 

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

 

original or affected districts plus $100.00 or the highest

 

foundation allowance among the original or affected districts. This

 

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

 

subsequent consolidation or annexation that affects the district.

 

     (9) Each fraction used in making calculations under this

 

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

 

amount of an increase in the basic foundation allowance shall be

 

rounded to the nearest whole dollar.

 


     (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

     (11) To assist the legislature in determining the basic

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

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

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

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

 

the estimated membership in the school year ending in the current

 

state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district

 

membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

     (b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

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

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 


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

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

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

 

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

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

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

 

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

 

membership factor by the revenue adjustment factor. If a consensus

 

index is not determined at the revenue estimating conference, the

 

principals of the revenue estimating conference shall report their

 

estimates to the house and senate subcommittees responsible for

 

school aid appropriations not later than 7 days after the

 

conclusion of the revenue conference.

 

     (12) For a district that received a grant under former section

 

32e for 2001-2002, the district's foundation allowance for 2002-

 

2003 and each succeeding fiscal year shall be adjusted to be an

 

amount equal to the sum of the district's foundation allowance, as

 

otherwise calculated under this section, plus the quotient of 100%

 

of the amount of the grant award to the district for 2001-2002

 

under former section 32e divided by the number of pupils in the

 

district's membership for 2001-2002 who were residents of and

 

enrolled in the district. All of the following apply to districts

 

receiving a foundation allowance adjustment under this subsection:

 


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

 

district qualifying for a foundation allowance adjustment under

 

this subsection shall use the funds resulting from this adjustment

 

for at least 1 of grades K to 3 for purposes allowable under former

 

section 32e as in effect for 2001-2002. For an individual school or

 

schools operated by a district qualifying for a foundation

 

allowance adjustment under this subsection that have been

 

determined by the department to meet the adequate yearly progress

 

standards of the federal no child left behind act of 2001, Public

 

Law 107-110, in both mathematics and English language arts at all

 

applicable grade levels for all applicable subgroups, the district

 

may submit to the department an application for flexibility in

 

using the funds resulting from this adjustment that are

 

attributable to the pupils in the school or schools. The

 

application shall identify the affected school or schools and the

 

affected funds and shall contain a plan for using the funds for

 

specific purposes identified by the district that are designed to

 

reduce class size, but that may be different from the purposes

 

otherwise allowable under this subdivision. The department shall

 

approve the application if the department determines that the

 

purposes identified in the plan are reasonably designed to reduce

 

class size. If the department does not act to approve or disapprove

 

an application within 30 days after it is submitted to the

 

department, the application is considered to be approved. If an

 

application for flexibility in using the funds is approved, the

 

district may use the funds identified in the application for any

 

purpose identified in the plan.

 


     (b) A district receiving an adjustment under this subsection

 

shall not receive as a result of this adjustment an amount that

 

exceeds 68.5% of the amount the district received as a result of

 

this adjustment for 2010-2011.

 

     (c) Notwithstanding subsection (8), for a district that is

 

formed or reconfigured by consolidation of 2 or more districts, 1

 

of which received an adjustment under this subsection for 2012-

 

2013, the resulting district's foundation allowance for 2013-2014

 

and each succeeding fiscal year shall be adjusted to be an amount

 

equal to the sum of the resulting district's foundation allowance

 

as calculated under subsection (8) excluding any adjustment

 

calculated under this subsection plus [(the original district's

 

adjustment under this subsection in 2012-2013 times the number of

 

pupils in the original district's membership for 2012-2013) divided

 

by the number of pupils in the resulting district's membership for

 

2013-2014].

 

     (d) Beginning in 2013-2014, for a district that received an

 

adjustment for the immediately preceding fiscal year and that had a

 

foundation allowance as adjusted by this subsection for the

 

immediately preceding fiscal year equal to $6,966.00, the district

 

shall not receive an adjustment under this section for the current

 

fiscal year.

 

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

 

education achievement system shall not be made under this section.

 

Rather, the calculations under this section shall be used to

 

determine the amount of state payments under section 22b.

 

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

 


constitution of 1963 allowing state aid to some or all nonpublic

 

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

 

allowance or per pupil payment calculation under this section may

 

be reduced.

 

     (15) As used in this section:

 

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

 

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

 

1993-94.

 

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

 

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

 

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

 

operating revenue.

 

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

 

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

 

the district's membership excluding special education pupils.

 

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

 

for which a particular calculation is made.

 

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

 

organization, has its territory attached to 1 or more other

 

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

 

revised school code, MCL 380.12.

 

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

 

fiscal year immediately preceding the current state fiscal year.

 

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

 

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

 

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

 

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

 


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

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, local school operating revenue

 

does not include school operating taxes levied within the

 

geographic area of the dissolved district.

 

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

 

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

 

district's membership excluding special education pupils.

 

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

 

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

 

allocation as calculated by adding the highest per-pupil allocation

 

among all public school academies for the immediately preceding

 

state fiscal year plus the difference between twice the dollar

 

amount of the adjustment from the immediately preceding state

 

fiscal year to the current state fiscal year made in the basic

 

foundation allowance and [(the dollar amount of the adjustment from

 

the immediately preceding state fiscal year to the current state

 

fiscal year made in the basic foundation allowance minus $10.00)

 

times (the difference between the highest per-pupil allocation

 

among all public school academies for the immediately preceding

 

state fiscal year and the sum of $7,108.00 plus the total dollar

 

amount of all adjustments made from 2006-2007 to the immediately

 

preceding state fiscal year in the lowest per-pupil allocation

 

among all public school academies) divided by the difference

 

between the basic foundation allowance for the current state fiscal

 

year and the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state

 


fiscal year in the lowest per-pupil allocation among all public

 

school academies].

 

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

 

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

 

particular calculation is made.

 

     (k) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, or commercial personal property.

 

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

 

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

 

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

 

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

 

code, MCL 380.1211.

 

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

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

 

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

 

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

 

380.1211, and retained for school operating purposes.

 

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

 

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

 

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

 


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

 

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

 

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

 

125.2871 to 125.2899.

 

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

 

as certified by the department of treasury, for the calendar year

 

ending in the current state fiscal year divided by the district's

 

membership excluding special education pupils for the school year

 

ending in the current state fiscal year.

 

     Sec. 31e. (1) From the general fund money appropriated in

 

section 11, there is allocated for 2013-2014 an amount not to

 

exceed $100.00 and there is allocated for 2014-2015 an amount not

 

to exceed $100.00 for a pilot project under this section for a

 

public college preparatory residential boarding school for at-risk

 

pupils. The 2013-2014 allocation is to the department for the

 

contracting process under subsection (2) and for start-up costs to

 

initiate the public college preparatory residential boarding school

 

pilot project, and the 2014-2015 allocation is for operation of the

 

public college preparatory residential boarding school for the

 

2014-2015 school year.

 

     (2) For the pilot project under this section, the department

 

shall contract with an eligible operator for the operation of a

 

public college preparatory boarding school during the 2014-2015

 

school year. To do so, the department shall issue a request for

 

proposals from eligible operators. The department shall select the

 

eligible operator from among the qualified responders within 30

 

days after the issuance of the request for proposals. If no

 


qualified responder submits a proposal, the department may issue

 

another request for proposals.

 

     (3) The department shall require each proposal submitted to

 

the department to contain at least all of the following

 

information:

 

     (a) The proposed location of the public college preparatory

 

boarding school, which may differ from any location recommended by

 

the department in the request for proposals.

 

     (b) Proposed grade levels to be offered in the school's

 

initial year of operation and a plan for increasing the grade

 

levels offered by the school in subsequent years.

 

     (c) Any other information about the proposed educational

 

program, facilities, or operations of the school considered

 

necessary by the department.

 

     (4) The department is not required to accept any proposal

 

submitted under subsections (2) and (3). If the department accepts

 

a proposal, the department shall enter into a contract with the

 

eligible operator for the operation of a public college preparatory

 

boarding school. The contract shall contain at least all of the

 

following:

 

     (a) That the operator shall operate the school in accordance

 

with the terms of the proposal accepted by the department,

 

including the plan for increasing the grade levels offered by the

 

school, and in accordance with this act and all other applicable

 

law. The contract shall specifically require the school to comply

 

with the revised school code and this act to the same extent as a

 

school district and to comply with the rules promulgated under

 


section 1335 of the revised school code, MCL 380.1335, for the

 

operation of a licensed boarding school to the same extent as a

 

boarding school licensed under that section.

 

     (b) That the school shall comply with any other provisions of

 

law specified in the contract.

 

     (c) That the school shall meet the academic goals and other

 

performance standards specified in the contract.

 

     (d) That the school shall have a fiscal officer who meets

 

standards established for the purposes of this section by the

 

department.

 

     (5) In accordance with procedures specified in the contract

 

for a public college preparatory boarding school, the department

 

shall monitor the operation, programs, and facilities of the

 

school, including conducting on-site visits of the school.

 

     (6) Any eligible student may apply for admission to a public

 

college preparatory boarding school established under this section

 

in a grade level offered by the school that is appropriate for the

 

student. Except for a foreign exchange student who is not a United

 

States citizen, a public college preparatory boarding school shall

 

not enroll a student who is not a resident of this state.

 

Enrollment in the public college preparatory boarding school shall

 

be open to all individuals who reside in this state who meet the

 

admission policy. If there are more applications to enroll in the

 

public college preparatory boarding school than there are spaces

 

available, students shall be selected to enroll using a random

 

selection process. A public college preparatory boarding school

 

shall allow any student who was enrolled in the school in the

 


immediately preceding school year to enroll in the school in the

 

appropriate grade unless the appropriate grade is not offered at

 

that school.

 

     (7) In the first year of operation, a public college

 

preparatory boarding school funded under this section shall not

 

admit more than 200 students to the school. In each subsequent year

 

of operation, the school may add additional grade levels, but at no

 

time shall the school's total student population exceed 600

 

students.

 

     (8) A public college preparatory boarding school funded under

 

this section shall offer an educational program that includes

 

at least all of the following:

 

     (a) A remedial curriculum for students in grades lower than

 

grade 9.

 

     (b) A college preparatory curriculum for high school students

 

that, at a minimum, complies with sections 1278a and 1278b of the

 

revised school code, MCL 380.1278a and 380.1278b, as those sections

 

apply to school districts. The curriculum may be a competency-based

 

curriculum.

 

     (c) Extracurricular activities, including athletic and

 

cultural activities.

 

     (d) College admission counseling.

 

     (e) Health and mental health services.

 

     (f) Tutoring services.

 

     (g) Community services opportunities.

 

     (h) A residential student life program.

 

     (9) A public college preparatory boarding school funded under

 


this section shall receive a per pupil payment calculated under

 

section 20(7) and a public college preparatory boarding school

 

shall be considered to be district for funding under other sections

 

of this act and students enrolled in the public college preparatory

 

boarding school shall be considered to be pupils in membership in

 

the public college preparatory boarding school for the funding

 

under other sections of this act. The general fund money allocated

 

under this section for 2014-2015 shall be used to support the

 

residential program of the school, at a rate not to exceed

 

$25,000.00 per student enrolled in the public college preparatory

 

boarding school. In addition, the public college preparatory

 

boarding school may apply to any private entity to receive and

 

accept funds.

 

     (10) Notwithstanding section 17b, payments to districts under

 

this section shall be paid on a schedule determined by the

 

department.

 

     (11) A public college preparatory boarding school funded under

 

this section is a public school under section 2 of article VIII of

 

the state constitution of 1963, is a school district for the

 

purposes of section 11 of article IX of the state constitution of

 

1963 and for all purposes under this act and the revised school

 

code, except the power of taxation, and is subject to the

 

leadership and general supervision of the state board over all

 

public education under section 3 of article VIII of the state

 

constitution of 1963. A public college preparatory boarding school

 

is a body corporate and is a governmental agency. The powers

 

granted to a public college preparatory boarding school under this

 


section constitute the performance of essential public purposes and

 

governmental functions of this state.

 

     (12) As used in this part:

 

     (a) "Eligible operator" means a nonprofit corporation that is

 

determined by the department to meet all of the following

 

qualifications:

 

     (i) Has experience operating a public college preparatory

 

boarding school, or a substantially similar public boarding school

 

in another state, and has a track record of working with eligible

 

students or substantially similar students in a public college

 

preparatory boarding school or a substantially similar public

 

boarding school in another state.

 

     (ii) Has demonstrated success in improving the academic

 

performance of students.

 

     (iii) Has demonstrated that the nonprofit corporation has the

 

capacity to secure private funds for the development of the public

 

college preparatory boarding school authorized under this part.

 

     (b) "Eligible student" means a student who is a resident of

 

this state; is at risk of academic failure; is from a family whose

 

family income is below 200% of the federal poverty guidelines

 

published by the United States department of health and human

 

services; meets any additional criteria prescribed by agreement

 

between the department and the operator of the public college

 

preparatory boarding school in which the student seeks enrollment;

 

and meets at least 2 of the following additional conditions:

 

     (i) The student has a record of in-school disciplinary actions,

 

suspensions, expulsions, or truancy.

 


     (ii) The student has not attained at least a score of

 

proficient on the state achievement assessments in English language

 

arts, reading, or mathematics, after those assessments have been

 

administered to the student at least once.

 

     (iii) The student is a student with a disability, as that term

 

is defined under the revised school code.

 

     (iv) The student has been referred for academic intervention

 

services.

 

     (v) The student's head of household is a single parent or is

 

not the student's custodial parent. As used in this subparagraph,

 

"head of household" means a person who occupies the same household

 

as the student and who is financially responsible for the student.

 

     (vi) A member of the student's family has been incarcerated.