Bill Text: MI HB5695 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Education; public school academies; certain requirements for real estate leases; provide for, and provide for limitation on per pupil school aid allocation for cyber schools. Amends secs. 504a, 525, 553a, 557 & 1311h of 1976 PA 451 (MCL 380.504a et seq.).

Spectrum: Partisan Bill (Democrat 34-0)

Status: (Introduced - Dead) 2014-07-16 - Printed Bill Filed 06/13/2014 [HB5695 Detail]

Download: Michigan-2013-HB5695-Introduced.html

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HOUSE BILL No. 5695

 

June 12, 2014, Introduced by Reps. Tlaib, Brown, Brunner, Smiley, Phelps, Switalski, Faris, Greimel, Yanez, Lamonte, Stanley, Segal, Clemente, Brinks, LaVoy, Geiss, Barnett, Slavens, Singh, Dianda, Dillon, Hovey-Wright, Kandrevas, Knezek, Darany, Zemke, Lipton, Lane, Abed, Schor, Cochran, Driskell, Durhal and Rutledge and referred to the Committee on Education.

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 504a, 525, 553a, 557, and 1311h (MCL 380.504a,

 

380.525, 380.553a, 380.557, and 380.1311h), section 504a as amended

 

and section 525 as added by 2003 PA 179, section 553a as amended by

 

2011 PA 277, 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. 504a. (1) 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 subsection (2) and 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.

 

     (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.

 

     (2) If a public school academy leases real property, all of

 

the following apply to the lease transaction:

 

     (a) The board of directors of the public school academy shall

 

negotiate the terms of the lease and shall ensure that the terms of

 

the lease reflect the market conditions that exist at the time of

 

the lease, as determined by an appraisal conducted by an

 

independent real estate appraiser.

 

     (b) The board of directors shall not enter into a lease unless

 

it is reviewed and approved by the public school academy's

 

authorizing body. An authorizing body shall not approve a lease

 

that does not reflect market conditions as required under

 

subdivision (a).

 

     (c) The board of directors shall not lease real property from

 

an educational management organization with which the public school

 

academy has a management agreement as provided in section 503c or

 

from a real estate holding company that is affiliated with that

 

educational management organization. As used in this subdivision,

 

"educational management organization" and "management agreement"

 

mean those terms as defined in section 503c.

 

     Sec. 525. (1) 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 subsection (2) and 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.

 

     (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.

 

     (2) If an urban high school academy leases real property, all

 

of the following apply to the lease transaction:

 

     (a) The board of directors of the urban high school academy

 

shall negotiate the terms of the lease and shall ensure that the

 

terms of the lease reflect the market conditions that exist at the

 

time of the lease, as determined by an appraisal conducted by an

 

independent real estate appraiser.

 

     (b) The board of directors shall not enter into a lease unless

 

it is reviewed and approved by the urban high school academy's

 

authorizing body. An authorizing body shall not approve a lease

 

that does not reflect market conditions as required under

 

subdivision (a).

 

     (c) The board of directors shall not lease real property from

 

an educational management organization with which the urban high

 

school academy has a management agreement as provided in section

 

523c or from a real estate holding company that is affiliated with

 

that educational management organization. As used in this

 

subdivision, "educational management organization" and "management

 

agreement" mean those terms as defined in section 523c.

 

     Sec. 553a. (1) An authorizing body may issue a contract to

 

establish a school of excellence that is a cyber school. A cyber

 

school shall provide full-time instruction to pupils through online

 

learning or otherwise on a computer or other technology, and this

 

instruction and learning may occur remote from a school facility.

 

     (2) A contract for a school of excellence that is a cyber

 

school shall include all of the provisions required under section

 

553 and all of the following:

 

     (a) A requirement that a teacher who holds appropriate

 

certification according to state board rule will be responsible for

 

all of the following for each course in which a pupil is enrolled:

 

     (i) Improving learning by planned instruction.

 

     (ii) Diagnosing the pupil's learning needs.

 

     (iii) Assessing learning, assigning grades, and determining

 

advancement.

 

     (iv) Reporting outcomes to administrators and parents or legal

 

guardians.

 

     (b) A requirement that the cyber school will make educational

 

services available to pupils for a minimum of at least 1,098 hours

 

during a school year and will ensure that each pupil participates

 

in the educational program for at least 1,098 hours during a school

 

year.

 

     (3) Notwithstanding any other provision of this act or any

 

rule, if a school of excellence that is a cyber school is in

 

compliance with the requirements of subsection (2)(a) regarding a

 

certificated teacher, any other adult assisting with the oversight

 

of a pupil during the pupil's participation in the cyber school's

 

education program is not required to be a certificated teacher or

 

an employee of the school.

 

     (4) Notwithstanding any rule to the contrary, a cyber school

 

is not required to comply with any rule that would require a

 

pupil's physical presence or attendance in a classroom.

 

     (5) At the end of a cyber school's second complete school year

 

of operations, the authorizing body of a school of excellence that

 

is a cyber school shall submit to the superintendent of public

 

instruction and the legislature, in the form and manner prescribed

 

by the superintendent of public instruction, a report detailing the

 

operation of the cyber school, providing statistics of pupil

 

participation and academic performance, and making recommendations

 

for any further statutory or rule change related to cyber schools

 

and online learning in this state.

 

     (6) In making appropriations for state school aid for public

 

schools, the legislature shall ensure that the per pupil payment

 

for a school of excellence that is a cyber school, as calculated

 

under section 20 of the state school aid act of 1979, MCL 388.1620,

 

does not exceed 50% of the foundation allowance of the school

 

district in which the cyber school is located, as calculated under

 

section 20 of the state school aid act of 1979, MCL 388.1620.

 

     Sec. 557. (1) 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 subsection (2) and 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.

 

     (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.

 

     (2) If a school of excellence leases real property, all of the

 

following apply to the lease transaction:

 

     (a) The board of directors of the school of excellence shall

 

negotiate the terms of the lease and shall ensure that the terms of

 

the lease reflect the market conditions that exist at the time of

 

the lease, as determined by an appraisal conducted by an

 

independent real estate appraiser.

 

     (b) The board of directors shall not enter into a lease unless

 

it is reviewed and approved by the school of excellence's

 

authorizing body. An authorizing body shall not approve a lease

 

that does not reflect market conditions as required under

 

subdivision (a).

 

     (c) The board of directors shall not lease real property from

 

an educational management organization with which the school of

 

excellence has a management agreement as provided in section 553c

 

or from a real estate holding company that is affiliated with that

 

educational management organization. As used in this subdivision,

 

"educational management organization" and "management agreement"

 

mean those terms as defined in section 553c.

 

     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 Subject to subsection (2), 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 enter into binding legal agreements with persons or

 

entities as necessary for the operation, management, financing, and

 

maintenance of the strict discipline academy.

 

     (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) If a strict discipline academy leases real property, all

 

of the following apply to the lease transaction:

 

     (a) The board of directors of the strict discipline academy

 

shall negotiate the terms of the lease and shall ensure that the

 

terms of the lease reflect the market conditions that exist at the

 

time of the lease, as determined by an appraisal conducted by an

 

independent real estate appraiser.

 

     (b) The board of directors shall not enter into a lease unless

 

it is reviewed and approved by the strict discipline academy's

 

authorizing body. An authorizing body shall not approve a lease

 

that does not reflect market conditions as required under

 

subdivision (a).

 

     (c) The board of directors shall not lease real property from

 

an educational management organization with which the strict

 

discipline academy has a management agreement or from a real estate

 

holding company that is affiliated with that educational management

 

organization. As used in this subdivision:

 

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

 

enters into a management agreement with a strict discipline

 

academy.

 

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

 

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

 

legal entity.

 

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

 

comprehensive educational, administrative, management, or

 

instructional services or staff to a strict discipline academy.