Bill Text: MI SB0461 | 2013-2014 | 97th Legislature | Introduced


Bill Title: Education; board members; certain requirements for charter school boards and board members; provide for. Amends secs. 503, 528 & 553 of 1976 PA 451 (MCL 380.503 et seq.).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-07-31 - Referred To Committee On Education [SB0461 Detail]

Download: Michigan-2013-SB0461-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 461

 

 

July 31, 2013, Introduced by Senator HOPGOOD and referred to the Committee on Education.

 

 

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 503, 528, and 553 (MCL 380.503, 380.528, and

 

380.553), as amended by 2011 PA 277.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 503. (1) An authorizing body is not required to issue a

 

contract to any person or entity. Subject to subsection (2), public

 

school academy contracts shall be issued on a competitive basis. In

 

deciding whether to issue a contract for a proposed public school

 

academy, an authorizing body shall consider all of the following:

 

     (a) The resources available for the proposed public school

 

academy.

 

     (b) The population to be served by the proposed public school

 

academy.


 

     (c) The educational goals to be achieved by the proposed

 

public school academy.

 

     (d) The applicant's track record, if any, in organizing public

 

school academies or other public schools.

 

     (e) The graduation rate of a school district in which the

 

proposed public school academy is proposed to be located.

 

     (f) The population of a county in which the proposed public

 

school academy is proposed to be located.

 

     (g) The number of schools in the proximity of a proposed

 

location of the proposed public school academy that are on the list

 

under section 1280c(1) of the public schools in this state that the

 

department has determined to be among the lowest achieving 5% of

 

all public schools in this state.

 

     (h) The number of pupils on waiting lists of public school

 

academies in the proximity of a proposed location of the proposed

 

public school academy.

 

     (2) An authorizing body may give priority to a proposed public

 

school academy that is intended to replace a public school academy

 

that has been closed pursuant to section 507(5), that will operate

 

all of the same grade levels as the public school academy that has

 

been closed, and that will work toward operating all of grades 9 to

 

12 within 6 years after it begins operations unless a matriculation

 

agreement has been entered into with another public school that

 

provides grades 9 to 12.

 

     (3) If a person or entity applies to the board of a school

 

district for a contract to organize and operate 1 or more public

 

school academies within the boundaries of the school district and


 

the board does not issue the contract, the person or entity may

 

petition the board to place the question of issuing the contract on

 

the ballot to be decided by the school electors of the school

 

district. The petition shall contain all of the information

 

required to be in the contract application under section 502 and

 

shall be signed by a number of school electors of the school

 

district equal to at least 5% of the total number of school

 

electors of that school district. The petition shall be filed with

 

the school district filing official. If the board receives a

 

petition meeting the requirements of this subsection, the board

 

shall have the question of issuing the contract placed on the

 

ballot at its next regular school election held at least 60 days

 

after receiving the petition. If a majority of the school electors

 

of the school district voting on the question vote to issue the

 

contract, the board shall issue the contract.

 

     (4) Within 10 days after issuing a contract for a public

 

school academy, the authorizing body shall submit to the

 

superintendent of public instruction a copy of the contract.

 

     (5) An authorizing body shall adopt a resolution establishing

 

the method of selection, length of term, quorum requirements, and

 

number of members of the board of directors of each public school

 

academy subject to its jurisdiction. The resolution shall be

 

written or amended as necessary to include a all of the following:

 

     (a) A requirement that each member of the board of directors

 

must be a citizen of the United States.

 

     (b) A limit on the term of service of a board member to a term

 

of not more than 5 consecutive years, with at least a 10-year


 

period before a member may serve an additional term.

 

     (c) A requirement of at least 7 members on a board of

 

directors, with at least 2 members being parents of pupils enrolled

 

in the public school academy.

 

     (d) A requirement of at least 5 members, including the

 

president of the board of directors, for a quorum, except in the

 

case of a vacancy.

 

     (e) A requirement that vacancies on the board of directors

 

must be filled within 90 days.

 

     (f) An attendance requirement that provides for both of the

 

following:

 

     (i) During any 12-month period, a board member must attend at

 

least 85% of all board functions, including, but not limited to,

 

monthly board meetings, scheduled board events, and special and

 

emergency board meetings.

 

     (ii) Failure to meet this attendance requirement constitutes a

 

vacating of the office of board member.

 

     (6) A contract issued to organize and administer a public

 

school academy shall contain at least all of the following:

 

     (a) The educational goals the public school academy is to

 

achieve and the methods by which it will be held accountable. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of a public school academy shall

 

be assessed using at least a Michigan education assessment program

 

(MEAP) test or the Michigan merit examination under section 1279g,

 

as applicable.


 

     (b) A description of the method to be used to monitor the

 

public school academy's compliance with applicable law and its

 

performance in meeting its targeted educational objectives.

 

     (c) A description of the process for amending the contract

 

during the term of the contract.

 

     (d) All of the matters set forth in the application for the

 

contract.

 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 507.

 

     (f) A description of and address for the proposed physical

 

plant in which the public school academy will be located. An

 

authorizing body may include a provision in the contract allowing

 

the board of directors of the public school academy to operate the

 

same configuration of age or grade levels at more than 1 site if

 

each configuration of age or grade levels and each site identified

 

in the contract are under the direction and control of the board of

 

directors.

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by a

 

certified public accountant in accordance with generally accepted

 

governmental auditing principles.

 

     (h) The term of the contract and a description of the process

 

and standards for renewal of the contract at the end of the term.

 

The standards for renewal shall include increases in academic

 

achievement for all groups of pupils as measured by assessments and

 

other objective criteria as the most important factor in the


 

decision of whether or not to renew the contract.

 

     (i) A certification, signed by an authorized member of the

 

board of directors of the public school academy, that the public

 

school academy will comply with the contract and all applicable

 

law.

 

     (j) A requirement that the board of directors of the public

 

school academy shall ensure compliance with the requirements of

 

1968 PA 317, MCL 15.321 to 15.330.

 

     (k) A requirement that the board of directors of the public

 

school academy shall prohibit specifically identified family

 

relationships between members of the board of directors,

 

individuals who have an ownership interest in or who are officers

 

or employees of an educational management organization involved in

 

the operation of the public school academy, and employees of the

 

public school academy. The contract shall identify the specific

 

prohibited relationships consistent with applicable law.

 

     (l) A requirement that the board of directors of the public

 

school academy shall make information concerning its operation and

 

management available to the public and to the authorizing body in

 

the same manner as is required by state law for school districts.

 

     (m) A requirement that the board of directors of the public

 

school academy shall collect, maintain, and make available to the

 

public and the authorizing body, in accordance with applicable law

 

and the contract, at least all of the following information

 

concerning the operation and management of the public school

 

academy:

 

     (i) A copy of the contract issued by the authorizing body for


 

the public school academy.

 

     (ii) A list of currently serving members of the board of

 

directors of the public school academy, including name, address,

 

and term of office; copies of policies approved by the board of

 

directors; board meeting agendas and minutes; a copy of the budget

 

approved by the board of directors and of any amendments to the

 

budget; and copies of bills paid for amounts of $10,000.00 or more

 

as they were submitted to the board of directors.

 

     (iii) Quarterly financial reports submitted to the authorizing

 

body.

 

     (iv) A current list of teachers and school administrators

 

working at the public school academy that includes their individual

 

salaries as submitted to the registry of educational personnel;

 

copies of the teaching or school administrator's certificates or

 

permits of current teaching and administrative staff; and evidence

 

of compliance with the criminal background and records checks and

 

unprofessional conduct check required under sections 1230, 1230a,

 

and 1230b for all teachers and administrators working at the public

 

school academy.

 

     (v) Curriculum documents and materials given to the

 

authorizing body.

 

     (vi) Proof of insurance as required by the contract.

 

     (vii) Copies of facility leases or deeds, or both, and of any

 

equipment leases.

 

     (viii) Copies of any management contracts or services contracts

 

approved by the board of directors.

 

     (ix) All health and safety reports and certificates, including


 

those relating to fire safety, environmental matters, asbestos

 

inspection, boiler inspection, and food service.

 

     (x) Any management letters issued as part of the annual

 

financial audit under subdivision (g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (n) A requirement that the authorizing body must review and

 

may disapprove any agreement between the board of directors of the

 

public school academy and an educational management organization

 

before the agreement is final and valid. An authorizing body may

 

disapprove an agreement described in this subdivision only if the

 

agreement is contrary to the contract or applicable law.

 

     (o) A requirement that the board of directors of the public

 

school academy shall demonstrate all of the following to the

 

satisfaction of the authorizing body with regard to its pupil

 

admission process:

 

     (i) That the public school academy has made a reasonable effort

 

to advertise its enrollment openings.

 

     (ii) That the open enrollment period for the public school

 

academy is for a duration of at least 2 weeks and that the

 

enrollment times include some evening and weekend times.

 

     (p) A requirement that the board of directors of the public

 

school academy shall prohibit any individual from being employed by

 

the public school academy in more than 1 full-time position and

 

simultaneously being compensated at a full-time rate for each of

 

those positions.

 

     (7) A public school academy shall comply with all applicable


 

law, including all of the following:

 

     (a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (b) The freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.

 

     (f) Laws concerning participation in state assessments, data

 

collection systems, state level student growth models, state

 

accountability and accreditation systems, and other public

 

comparative data collection required for public schools.

 

     (8) A public school academy and its incorporators, board

 

members, officers, employees, and volunteers have governmental

 

immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An

 

authorizing body and its board members, officers, and employees are

 

immune from civil liability, both personally and professionally,

 

for an act or omission in authorizing a public school academy if

 

the authorizing body or the person acted or reasonably believed he

 

or she acted within the authorizing body's or the person's scope of

 

authority.

 

     (9) A public school academy is exempt from all taxation on its

 

earnings and property. Instruments of conveyance to or from a

 

public school academy are exempt from all taxation including taxes

 

imposed by 1966 PA 134, MCL 207.501 to 207.513. Unless the property

 

is already fully exempt from real and personal property taxes under

 

the general property tax act, 1893 PA 206, MCL 211.1 to 211.155,

 

property occupied by a public school academy and used exclusively


 

for educational purposes is exempt from real and personal property

 

taxes levied for school operating purposes under section 1211, to

 

the extent exempted under that section, and from real and personal

 

property taxes levied under the state education tax act, 1993 PA

 

331, MCL 211.901 to 211.906. A public school academy may not levy

 

ad valorem property taxes or another tax for any purpose. However,

 

operation of 1 or more public school academies by a school district

 

or intermediate school district does not affect the ability of the

 

school district or intermediate school district to levy ad valorem

 

property taxes or another tax.

 

     (10) A public school academy may acquire by purchase, gift,

 

devise, lease, sublease, installment purchase agreement, land

 

contract, option, or by any other means, hold and own in its own

 

name buildings and other property for school purposes, and

 

interests therein, and other real and personal property, including,

 

but not limited to, interests in property subject to mortgages,

 

security interests, or other liens, necessary or convenient to

 

fulfill its purposes. For the purposes of condemnation, a public

 

school academy may proceed under the uniform condemnation

 

procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding

 

sections 6 to 9 of that act, MCL 213.56 to 213.59, or other

 

applicable statutes, but only with the express, written permission

 

of the authorizing body in each instance of condemnation and only

 

after just compensation has been determined and paid.

 

     (11) A member of the board of directors of a public school

 

academy is a public officer and shall, before entering upon the

 

duties of the office, take the constitutional oath of office for


 

public officers under section 1 of article XI of the state

 

constitution of 1963.

 

     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, quorum requirements, 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 all of the following:

 

     (i) A requirement that each member of the board of directors

 

must be a citizen of the United States.

 

     (ii) A limit on the term of service of a board member to a term

 

of not more than 5 consecutive years, with at least a 10-year

 

period before a member may serve an additional term.

 

     (iii) A requirement of at least 7 members on a board of

 

directors, with at least 2 members being parents of pupils enrolled

 

in the urban high school academy.

 

     (iv) A requirement of at least 5 members, including the

 

president of the board of directors, for a quorum, except in the

 

case of a vacancy.

 

     (v) A requirement that vacancies on the board of directors

 

must be filled within 90 days.


 

     (vi) An attendance requirement that provides for both of the

 

following:

 

     (A) During any 12-month period, a board member must attend at

 

least 85% of all board functions, including, but not limited to,

 

monthly board meetings, scheduled board events, and special and

 

emergency board meetings.

 

     (B) Failure to meet this attendance requirement constitutes a

 

vacating of the office of board member.

 

     (d) Oversee the operations of each urban high school academy

 

operating under a contract issued by the authorizing body. The

 

oversight shall be sufficient to ensure that the urban high school

 

academy is in compliance with the terms of the contract and with

 

applicable law. An authorizing body may enter into an agreement

 

with 1 or more other authorizing bodies to oversee an urban high

 

school academy operating under a contract issued by the authorizing

 

body.

 

     (e) Develop and implement a process for holding an urban high

 

school academy board of directors accountable for meeting

 

applicable academic performance standards set forth in the contract

 

and for implementing corrective action for an urban high school

 

academy that does not meet those standards.

 

     (f) Take necessary measures to ensure that an urban high

 

school academy board of directors operates independently of any

 

educational management company involved in the operations of the

 

urban high school academy.

 

     (g) Oversee and ensure that the pupil admission process used

 

by the urban high school academy is operated in a fair and open


 

manner and is in compliance with the contract and this part.

 

     (h) Ensure that the board of directors of the urban high

 

school academy maintains and releases information as necessary to

 

comply with applicable law.

 

     (2) An authorizing body may enter into an agreement with 1 or

 

more other authorizing bodies to carry out any function of an

 

authorizing body under this act.

 

     (3) The authorizing body for an urban high school academy is

 

the fiscal agent for the urban high school academy. A state school

 

aid payment for an urban high school academy shall be paid to the

 

authorizing body that is the fiscal agent for that urban high

 

school academy, which shall then forward the payment to the urban

 

high school academy. Within 30 days after a contract is submitted

 

to the department by an authorizing body under subsection (1), the

 

department shall issue a district code to the urban high school

 

academy for which the contract was issued. If the department does

 

not issue a district code within 30 days after a contract is filed,

 

the state treasurer shall assign a temporary district code in order

 

for the urban high school academy to receive funding under the

 

state school aid act of 1979.

 

     (4) A contract issued under this part may be revoked by the

 

authorizing body that issued the contract if the authorizing body

 

determines that 1 or more of the following have occurred:

 

     (a) Failure of the urban high school academy to demonstrate

 

improved pupil academic achievement for all groups of pupils or

 

meet the educational goals set forth in the contract.

 

     (b) Failure of the urban high school academy to comply with


 

all applicable law.

 

     (c) Failure of the urban high school academy to meet generally

 

accepted public sector accounting principles and demonstrate sound

 

fiscal stewardship.

 

     (d) The existence of 1 or more other grounds for revocation as

 

specified in the contract.

 

     (5) Except for an urban high school academy that is an

 

alternative school serving a special student population, if the

 

superintendent of public instruction determines that an urban high

 

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

 

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

 

as defined for the purposes of the federal incentive grant program

 

created under sections 14005 and 14006 of title XIV of the American

 

recovery and reinvestment act of 2009, Public Law 111-5, is in year

 

2 of restructuring sanctions under the no child left behind act of

 

2001, Public Law 107-110, not to include the individualized

 

education plan subgroup, and is not currently undergoing

 

reconstitution under this section, the superintendent of public

 

instruction shall notify the urban high school academy's

 

authorizing body. If an authorizing body receives notice from the

 

superintendent of public instruction under this subsection, the

 

authorizing body shall amend the urban high school academy's

 

contract to eliminate the urban high school academy's authority to

 

operate the existing age and grade levels at the site and the urban

 

high school academy shall cease operating the existing age and

 

grade levels at the site, effective at the end of the current

 

school year. If the urban high school academy operates at only 1


 

site, and the authorizing body receives notice from the

 

superintendent of public instruction under this subsection, the

 

authorizing body shall revoke the urban high school academy's

 

contract, effective at the end of the current school year.

 

     (6) The decision of an authorizing body to issue, not issue,

 

or reconstitute a contract under this part, or to terminate or

 

revoke a contract under this section, is solely within the

 

discretion of the authorizing body, is final, and is not subject to

 

review by a court or any state agency. An authorizing body that

 

issues, does not issue, or reconstitutes a contract under this

 

part, or that terminates or revokes a contract under this section,

 

is not liable for that action to the urban high school academy, the

 

urban high school academy corporation, a pupil of the urban high

 

school academy, the parent or guardian of a pupil of the urban high

 

school academy, or any other person.

 

     (7) Except as otherwise provided in subsection (5), before an

 

authorizing body revokes a contract, the authorizing body may

 

consider and take corrective measures to avoid revocation. An

 

authorizing body may reconstitute the urban high school academy in

 

a final attempt to improve student educational performance or to

 

avoid interruption of the educational process. An authorizing body

 

shall include a reconstituting provision in the contract that

 

identifies these corrective measures, including, but not limited

 

to, removing 1 or more members of the board of directors,

 

withdrawing approval to contract under section 527, or appointing a

 

new board of directors or a trustee to take over operation of the

 

urban high school academy.


 

     (8) If an authorizing body revokes a contract, the authorizing

 

body shall work with a school district or another public school, or

 

with a combination of these entities, to ensure a smooth transition

 

for the affected pupils. If the revocation occurs during the school

 

year, the authorizing body, as the fiscal agent for the urban high

 

school academy under this part, shall return any school aid funds

 

held by the authorizing body that are attributable to the affected

 

pupils to the state treasurer for deposit into the state school aid

 

fund. The state treasurer shall distribute funds to the public

 

school in which the pupils enroll after the revocation pursuant to

 

a methodology established by the department and the center for

 

educational performance and information.

 

     (9) If an authorizing body revokes a contract issued under

 

this part, the authorizing body may issue a new contract within the

 

1-year period following the revocation without the new contract

 

counting toward the maximum number of contracts that may be issued

 

under this part.

 

     (10) Not more than 10 days after an urban high school

 

academy's contract terminates or is revoked, the authorizing body

 

shall notify the superintendent of public instruction in writing of

 

the name of the urban high school academy whose contract has

 

terminated or been revoked and the date of contract termination or

 

revocation.

 

     (11) If an urban high school academy's contract terminates or

 

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

 

real or personal property, and other assets owned by the urban high

 

school academy shall revert to the state. This property shall be


 

distributed in accordance with the following:

 

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

 

the board of directors of an urban high school academy shall hold a

 

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

 

approve the dissolution of the urban high school academy

 

corporation, all in accordance with chapter 8 of the nonprofit

 

corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.

 

     (b) The urban high school academy shall file a certificate of

 

dissolution with the bureau of commercial services 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. 553. (1) An authorizing body is not required to issue a

 

contract to any person or entity. Schools of excellence contracts

 

shall be issued on a competitive basis taking into consideration

 

the resources available for the proposed school of excellence, the

 

population to be served by the proposed school of excellence, the


 

educational goals to be achieved by the proposed school of

 

excellence, and the applicant's track record, if any, in operating

 

public school academies or other public schools.

 

     (2) If a person or entity applies to the board of a school

 

district for a contract to organize and operate 1 or more schools

 

of excellence within the boundaries of the school district and the

 

board does not issue the contract, the person or entity may

 

petition the board to place the question of issuing the contract on

 

the ballot to be decided by the school electors of the school

 

district. The petition shall contain all of the information

 

required to be in the contract application under section 552 and

 

shall be signed by a number of school electors of the school

 

district equal to at least 5% of the total number of school

 

electors of that school district. The petition shall be filed with

 

the school district filing official. If the board receives a

 

petition meeting the requirements of this subsection, the board

 

shall have the question of issuing the contract placed on the

 

ballot at its next regular school election held at least 60 days

 

after receiving the petition. If a majority of the school electors

 

of the school district voting on the question vote to issue the

 

contract, the board shall issue the contract.

 

     (3) Within 10 days after issuing a contract for a school of

 

excellence, the authorizing body shall submit to the superintendent

 

of public instruction a copy of the contract.

 

     (4) An authorizing body shall adopt a resolution establishing

 

the method of selection, length of term, quorum requirements, and

 

number of members of the board of directors of each school of


 

excellence subject to its jurisdiction. The resolution shall be

 

written or amended as necessary to include a all of the following:

 

     (a) A requirement that each member of the board of directors

 

must be a citizen of the United States.

 

     (b) A limit on the term of service of a board member to a term

 

of not more than 5 consecutive years, with at least a 10-year

 

period before a member may serve an additional term.

 

     (c) A requirement of at least 7 members on a board of

 

directors, with at least 2 members being parents of pupils enrolled

 

in the school of excellence.

 

     (d) A requirement of at least 5 members, including the

 

president of the board of directors, for a quorum, except in the

 

case of a vacancy.

 

     (e) A requirement that vacancies on the board of directors

 

must be filled within 90 days.

 

     (f) An attendance requirement that provides for both of the

 

following:

 

     (i) During any 12-month period, a board member must attend at

 

least 85% of all board functions, including, but not limited to,

 

monthly board meetings, scheduled board events, and special and

 

emergency board meetings.

 

     (ii) Failure to meet this attendance requirement constitutes a

 

vacating of the office of board member.

 

     (5) A contract issued to organize and administer a school of

 

excellence shall contain at least all of the following:

 

     (a) The educational goals the school of excellence is to

 

achieve and the methods by which it will be held accountable. The


 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of a school of excellence shall

 

be assessed using at least a Michigan education assessment program

 

(MEAP) test or the Michigan merit examination under section 1279g,

 

as applicable.

 

     (b) A description of the method to be used to monitor the

 

school of excellence's compliance with applicable law and its

 

performance in meeting its targeted educational objectives.

 

     (c) A description of the process for amending the contract

 

during the term of the contract.

 

     (d) All of the matters set forth in the application for the

 

contract.

 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 561.

 

     (f) A description of and address for the proposed physical

 

plant in which the school of excellence will be located. An

 

authorizing body may include a provision in the contract allowing

 

the board of directors of the school of excellence to operate the

 

same configuration of age or grade levels at more than 1 site if

 

each configuration of age or grade levels and each site identified

 

in the contract are under the direction and control of the board of

 

directors.

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by a

 

certified public accountant in accordance with generally accepted


 

governmental auditing principles.

 

     (h) A certification, signed by an authorized member of the

 

school of excellence board of directors, that the school of

 

excellence will comply with the contract and all applicable law.

 

     (i) A requirement that the board of directors shall ensure

 

compliance with the requirements of 1968 PA 317, MCL 15.321 to

 

15.330.

 

     (j) A requirement that the board of directors shall prohibit

 

specifically identified family relationships between members of the

 

board of directors, individuals who have an ownership interest in

 

or who are officers or employees of an educational management

 

organization involved in the operation of the school of excellence,

 

and employees of the school of excellence. The contract shall

 

identify the specific prohibited relationships consistent with

 

applicable law.

 

     (k) A requirement that the board of directors of the school of

 

excellence shall make information concerning its operation and

 

management available to the public and to the authorizing body in

 

the same manner as is required by state law for school districts.

 

     (l) A requirement that the board of directors of the school of

 

excellence shall collect, maintain, and make available to the

 

public and the authorizing body, in accordance with applicable law

 

and the contract, at least all of the following information

 

concerning the operation and management of the school of

 

excellence:

 

     (i) A copy of the contract issued by the authorizing body for

 

the school of excellence.


 

     (ii) A list of currently serving members of the board of

 

directors of the school of excellence, including name, address, and

 

term of office; copies of policies approved by the board of

 

directors; board meeting agendas and minutes; copy of the budget

 

approved by the board of directors and of any amendments to the

 

budget; and copies of bills paid for amounts of $10,000.00 or more

 

as they were submitted to the board of directors.

 

     (iii) Quarterly financial reports submitted to the authorizing

 

body.

 

     (iv) A current list of teachers and school administrators

 

working at the school of excellence that includes their individual

 

salaries as submitted to the registry of educational personnel;

 

copies of the teaching or school administrator's certificates or

 

permits of current teaching and administrative staff; and evidence

 

of compliance with the criminal background and records checks and

 

unprofessional conduct check required under sections 1230, 1230a,

 

and 1230b for all teachers and administrators working at the school

 

of excellence.

 

     (v) Curriculum documents and materials given to the

 

authorizing body.

 

     (vi) Proof of insurance as required by the contract.

 

     (vii) Copies of facility leases or deeds, or both, and of any

 

equipment leases.

 

     (viii) Copies of any management contracts or services contracts

 

approved by the board of directors.

 

     (ix) All health and safety reports and certificates, including

 

those relating to fire safety, environmental matters, asbestos


 

inspection, boiler inspection, and food service.

 

     (x) Any management letters issued as part of the annual

 

financial audit under subdivision (g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (m) A requirement that the authorizing body must review and

 

may disapprove any agreement between the board of directors and an

 

educational management organization before the agreement is final

 

and valid. An authorizing body may disapprove an agreement

 

described in this subdivision only if the agreement is contrary to

 

contract or applicable law.

 

     (n) A requirement that the board of directors shall

 

demonstrate all of the following to the satisfaction of the

 

authorizing body with regard to its pupil admission process:

 

     (i) That the school of excellence has made a reasonable effort

 

to advertise its enrollment openings.

 

     (ii) That the school of excellence has made the following

 

additional efforts to recruit pupils who are eligible for special

 

education programs and services or English as a second language

 

services to apply for admission:

 

     (A) Reasonable efforts to advertise all enrollment openings to

 

organizations and media that regularly serve and advocate for

 

individuals with disabilities or children with limited English-

 

speaking ability within the boundaries of the intermediate school

 

district in which the school of excellence is located.

 

     (B) Inclusion in all pupil recruitment materials of a

 

statement that appropriate special education services and English


 

as a second language services will be made available to pupils

 

attending the school as required by law.

 

     (iii) That the open enrollment period for the school of

 

excellence is for a duration of at least 2 weeks and that the

 

enrollment times include some evening and weekend times.

 

     (o) A requirement that the board of directors shall prohibit

 

any individual from being employed by the school of excellence in

 

more than 1 full-time position and simultaneously being compensated

 

at a full-time rate for each of those positions.

 

     (p) A requirement that, if requested, the board of directors

 

shall report to the authorizing body the total compensation for

 

each individual working at the school of excellence.

 

     (6) A school of excellence shall comply with all applicable

 

law, including all of the following:

 

     (a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (b) The freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.

 

     (f) Laws concerning participation in state assessments, data

 

collection systems, state level student growth models, state

 

accountability and accreditation systems, and other public

 

comparative data collection required for public schools.

 

     (7) A school of excellence and its incorporators, board

 

members, officers, employees, and volunteers have governmental

 

immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An


 

authorizing body and its board members, officers, and employees are

 

immune from civil liability, both personally and professionally,

 

for an act or omission in authorizing a school of excellence if the

 

authorizing body or the person acted or reasonably believed he or

 

she acted within the authorizing body's or the person's scope of

 

authority.

 

     (8) A school of excellence is exempt from all taxation on its

 

earnings and property. Unless the property is already fully exempt

 

from real and personal property taxes under the general property

 

tax act, 1893 PA 206, MCL 211.1 to 211.155, property occupied by a

 

school of excellence and used exclusively for educational purposes

 

is exempt from real and personal property taxes levied for school

 

operating purposes under section 1211, to the extent exempted under

 

that section, and from real and personal property taxes levied

 

under the state education tax act, 1993 PA 331, MCL 211.901 to

 

211.906. Instruments of conveyance to or from a school of

 

excellence are exempt from all taxation including taxes imposed by

 

1966 PA 134, MCL 207.501 to 207.513. A school of excellence may not

 

levy ad valorem property taxes or another tax for any purpose.

 

However, operation of 1 or more schools of excellence by a school

 

district or intermediate school district does not affect the

 

ability of the school district or intermediate school district to

 

levy ad valorem property taxes or another tax.

 

     (9) A school of excellence may acquire by purchase, gift,

 

devise, lease, sublease, installment purchase agreement, land

 

contract, option, or by any other means, hold, and own in its own

 

name buildings and other property for school purposes, and


 

interests therein, and other real and personal property, including,

 

but not limited to, interests in property subject to mortgages,

 

security interests, or other liens, necessary or convenient to

 

fulfill its purposes. For the purposes of condemnation, a school of

 

excellence may proceed under the uniform condemnation procedures

 

act, 1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of

 

that act, MCL 213.56 to 213.59, or other applicable statutes, but

 

only with the express, written permission of the authorizing body

 

in each instance of condemnation and only after just compensation

 

has been determined and paid.

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