Bill Text: MI SB0553 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Education; school districts; procedure for local school district to opt out of intermediate school district services; provide for. Amends secs. 681, 684, 687, 1711, 1724a & 1731 of 1976 PA 451 (MCL 380.681 et seq.) & adds sec. 640.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-10-08 - Referred To Committee On Education [SB0553 Detail]
Download: Michigan-2015-SB0553-Introduced.html
SENATE BILL No. 553
October 8, 2015, Introduced by Senator JONES and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 681, 684, 687, 1711, 1724a, and 1731 (MCL
380.681, 380.684, 380.687, 380.1711, 380.1724a, and 380.1731),
sections 681 and 684 as amended by 2007 PA 45, sections 687, 1724a,
and 1731 as amended by 2004 PA 415, and section 1711 as amended by
2008 PA 1, and by adding section 640.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 640. (1) Subject to subsection (2), the board of a
constituent district of an intermediate school district may adopt a
resolution to cease to participate in intermediate school district
services that are provided under this act or, except as otherwise
provided under this section, under the state school aid act of
1979. If the board of a constituent district adopts a resolution
under this section, all of the following apply:
(a) Subject to subdivision (e), the intermediate school
district shall cease to provide services to the constituent
district or pupils enrolled in the constituent district under this
act and the state school aid act of 1979.
(b) The constituent district shall assume and shall provide to
pupils enrolled in the constituent district all services that would
otherwise be provided by the intermediate school district under
this act and the state school aid act of 1979, and shall use funds
received from the intermediate school district under this section
for this purpose.
(c) The intermediate school district shall continue to levy
taxes authorized under sections 625a, 681, and 1724a, but, for each
levy and collection of those taxes, both of the following apply:
(i) Within 1 business day after receiving the proceeds from
the collection of those taxes, the intermediate school district
shall pay to the constituent district an amount equal to 80% of the
total amount of money the intermediate school district receives
from that collection that is attributable to property located
within that constituent district.
(ii) Within 5 business days after receiving the proceeds from
the collection of those taxes, the intermediate school district
shall refund to each person that pays taxes attributable to
property located within the constituent district an amount equal to
10% of the total amount of money the intermediate school district
receives from that collection that is attributable to that person.
The state treasurer shall prescribe procedures for the refund
required under this subparagraph.
(d) Within 1 business day after receipt of the money, the
intermediate school district shall pay to the constituent district
an amount equal to 90% of any money received by the intermediate
school district from state school aid or federal funding that is
attributable to the constituent district or to a pupil enrolled in
the constituent district. The superintendent of public instruction
shall prescribe standards and procedures for the payment required
under this subdivision.
(e) The intermediate school district shall continue to audit
enrollment and attendance data as provided under section 101 of the
state school aid act of 1979, MCL 388.1701.
(2) Before adopting a resolution under subsection (1), a board
shall hold at least 2 board meetings with proper notice indicating
that issue of adopting the resolution will be on the agenda at the
meeting.
Sec. 681. (1) An intermediate school district may establish an
area career and technical education program and operate the program
under sections 681 to 690 if approved by a majority of the
intermediate school electors of the intermediate school district
voting on the question. The election shall be called and conducted
in accordance with this act and the Michigan election law. The
establishment of the area career and technical education program
may be rescinded by the same process.
(2) The question of establishing an area career and technical
education program may be submitted to the intermediate school
electors of an intermediate school district at a regular school
election or at a special election held in each of the constituent
districts. Subject to section 641 of the Michigan election law, MCL
168.641, the intermediate school board shall determine the date of
the election and shall give notice to the school district filing
official at least 60 days in advance of the date the ballot
question is to be submitted to the intermediate school electors.
(3) The ballot for referring the question of adopting sections
681 to 690 and establishing an area career and technical education
program to the intermediate school electors of an intermediate
school district shall be substantially in the following form:
"Shall ____________ (legal name of intermediate school
district), state of Michigan, come under sections 681 to 690 of the
revised school code and establish an area career and technical
education program which is designed to encourage the operation of
area career and technical education programs if the annual property
tax levied for this purpose is limited to ______ mills?
Yes ( )
No ( )".
(4) Beginning in 1995, and subject to section 625b, the number
of mills of ad valorem property taxes an intermediate school board
may levy for area career and technical education program operating
purposes under sections 681 to 690 is limited to the following:
(a) If the intermediate school district did not levy any
millage in 1993 for area career and technical education program
operating purposes under sections 681 to 690, the intermediate
school board, with the approval of the intermediate school
electors, may levy not more than 1 mill for those purposes.
(b) If the intermediate school district levied millage in 1993
for area career and technical education program operating purposes
under sections 681 to 690, the intermediate school board, with the
approval of the intermediate school electors, may levy mills for
those purposes at a rate not to exceed 1.5 times the number of
mills authorized for those purposes in the intermediate school
district in 1993. Approval of the intermediate school electors is
not required for the levy under this subdivision of previously
authorized mills until that authorization expires.
(5) An intermediate school district that levies a tax for area
career and technical education program operating purposes shall not
use proceeds from the tax for any purpose other than area career
and technical education program operating purposes and making
payments to a constituent district or refunds to taxpayers as
required under section 640, and shall submit to the department of
treasury a copy of the audit report from the audit of the
intermediate school district conducted under section 622a. If the
department of treasury determines from the audit report that the
proceeds from the tax have been used for a purpose other than area
career and technical education program operating purposes, as
defined under subsection (7), or making payments to a constituent
district or refunds to taxpayers as required under section 640, the
department of treasury shall notify the intermediate school
district of that determination. If the intermediate school district
disputes the determination or claims that the situation has been
corrected, within 15 days after receipt of the determination the
intermediate school district may submit an appeal of the
determination to the department of treasury. Within 90 days after
receipt of the appeal, the department of treasury shall consider
the appeal and make a determination of whether the initial
determination was correct or incorrect and of whether the situation
has been corrected. If the department of treasury finds that the
initial determination was correct and that the situation has not
been corrected, then the department of treasury shall file a copy
of the report with the attorney general. The attorney general shall
review the report and, if the attorney general considers it
appropriate, shall commence or direct the prosecuting attorney for
the county in which the violations occurred to commence appropriate
proceedings against the intermediate school board or the official
or employee. These proceedings shall include at least a civil
action in a court of competent jurisdiction for the recovery of any
public money determined by the audit to have been illegally
expended and for the recovery of any public property determined by
the audit to have been converted or misappropriated.
(6) If the attorney general determines from a report filed
under subsection (5) that an intermediate school district has
misspent tax proceeds as described in subsection (5) and notifies
the intermediate school district of this determination, the
intermediate school district shall repay to its area career and
technical education program operating fund an amount equal to the
amount the department of treasury determined under subsection (5)
has been used for a purpose other than area career and technical
education program operating purposes. The intermediate school
district shall make this repayment from funds of the intermediate
school district that lawfully may be used for making such a
repayment.
(7) For the purposes of subsections (5) and (6), not later
than January 1, 2008, the department and the department of
treasury, in consultation with intermediate school districts, shall
develop and make available to intermediate school districts a
definition of area career and technical education program operating
purposes.
(8) An intermediate school district shall not hold more than 2
elections in a calendar year concerning the authorization of a
millage rate for area career and technical education program
operating purposes under sections 681 to 690.
(9) Within 30 days after receiving the audit results, an
intermediate school district shall publish the results of any audit
conducted concerning the area career and technical education
program on the intermediate school district's website. The results
shall remain posted on the website for at least 6 months.
Sec. 684. (1) An intermediate school board in which an area
career and technical education program has been established may
operate area career and technical education programs or may
contract with local school districts or with community colleges for
the operation of the programs or with a private degree-granting
postsecondary institution if the intermediate school district is
not within a community college district and if there existed on or
before July 1, 1992 a written agreement for the operation of such a
program. Area career and technical education programs operated
under sections 681 to 690 shall be submitted for review of the
representatives of the constituent districts of the intermediate
school district at an annual budget review meeting held on or
before June 1 under section 624.
(2) An intermediate school board may expend area career and
technical education funds for the operation of area career and
technical education programs for instructional, support, and
administrative costs associated with providing career and technical
education activities, including, but not limited to, staff
salaries, wages, and benefits for career and technical education
programs only; information and awareness activities; acquisition
and rental of real property; construction of buildings; acquisition
of
equipment and supplies; and maintenance, repair, and replacement
of buildings, lands, equipment, and supplies. An intermediate
school board also may expend area career and technical education
funds for making payments to a constituent district as required
under section 640. An intermediate school board shall not expend
area career and technical education funds for purposes other than
those set forth in sections 681 to 690. An intermediate school
board must obtain state approval to use state or federal career and
technical education funds. Expenditure of vocational education
millage revenue for the purposes allowed under this subsection
shall be determined by the intermediate school board. However, if
the millage revenue is commingled with state or federal funds, then
the intermediate school district must obtain state approval to use
the commingled funds. If an audit by or on behalf of the department
determines that an intermediate school board has expended area
career and technical education funds for a purpose other than those
set forth in sections 681 to 690, the intermediate school district
is subject to the measures under section 681(5) and (6).
(3) The intermediate school board shall ensure that all of the
following are met:
(a) The intermediate school board shall notify the department
at the time the area career and technical education program is
established.
(b) In order to be responsive to local workforce needs,
emerging technologies, and local demand occupations, the
intermediate school district shall establish a program advisory
committee pursuant to administrative guidelines established by the
office of career and technical preparation within the department.
At least a majority of the members of the program advisory
committee shall be representatives from business and industry.
(c) The program shall collect career and technical education
information data and distribute that data to the appropriate state
department or departments and to the program advisory committee.
(d) The intermediate school district shall submit its career
and technical education plan to the department in the form and
manner prescribed by the department.
(4) The department may monitor career and technical education
programs funded with state or federal funding based upon feedback
from the program advisory committee and predetermined state or
federal skills standards that include student outcomes.
(5) The department, in consultation with the appropriate
career and technical education professionals, shall develop a
process for expedited state approval of programs that recognize
local workforce needs, emerging technologies, and local demand
occupations.
(6) If there is a community college that offers career and
technical preparation programs within the intermediate school
district, the intermediate school board shall collaborate with the
community college to minimize duplication of programs.
(7) An area career and technical education program shall allow
participation by public school academy and nonpublic school pupils
to the same extent as pupils of constituent districts.
(8) An intermediate school board operating under sections 681
to 690 may expend funds received under section 683 for the costs of
a special election held to renew or increase the millage limit on
the annual property tax levied for area career and technical
education purposes.
(9) The treasurer of an intermediate school board shall pay
out area career and technical education funds on order of the
intermediate school board.
Sec. 687. (1) An intermediate school board in which an area
vocational-technical education program is established, by a
majority vote of the intermediate school electors voting on the
question at a regular school election or at a special election
called for that purpose, may borrow money and issue bonds of the
intermediate school district subject to the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821, to defray all or
part of the cost of purchasing, erecting, completing, remodeling,
improving, furnishing, refurnishing, equipping, or reequipping area
vocational-technical buildings and other facilities, or parts of
buildings and other facilities or additions to buildings and other
facilities; acquiring, preparing, developing, or improving sites,
or parts of sites or additions to sites, for area vocational-
technical buildings and other facilities; refunding all or part of
existing bonded indebtedness; or accomplishing a combination of the
foregoing purposes. An intermediate school district shall not issue
bonds under this part for an amount greater than 1.5% of the total
assessed valuation of the intermediate school district.
(2) A bond qualified under section 16 of article IX of the
state constitution of 1963 and implementing legislation shall not
be included for purposes of calculating the foregoing 1.5%
limitation.
(3) An intermediate school board may submit a proposal to
issue bonds of the intermediate school district, authorized under
this section, to the intermediate school electors at the same
election at which the intermediate school electors vote on the
establishment of an area vocational-technical education program. If
these questions are presented to the school electors at the same
election, the board shall include the bond proposal in the 60-day
notice given the boards of constituent districts. The establishment
of an area vocational-technical education program shall become
effective if approved by a majority of the intermediate school
electors voting on the question. The authority to issue bonds is
effective only if a majority of the intermediate school electors
approve both the establishment of the area vocational-technical
education program and the issuance of bonds.
(4) The ballot used in submitting the question of borrowing
money and issuing bonds under this section shall be in
substantially the following form:
"Shall ____________ (here state the legal name of the
intermediate school district designating the name of a district of
not less than 18,000 pupils or first class school district that has
elected not to come under this act as far as an area vocational-
technical education program is concerned) state of Michigan, borrow
the sum of not to exceed $______ and issue its bonds therefor, for
the purpose of ____________?
Yes ( )
No ( )".
(5) An intermediate school district shall not use the proceeds
from bonds issued or refunded under this section or levy a tax to
repay bonds issued or refunded under this section for any purpose
other than facilities used for area vocational-technical education
purposes. If a facility is to be used during regular school hours
for purposes other than providing area vocational-technical
education programs and services, proceeds from bonds issued or
refunded under this section or from millage levied to repay bonds
issued or refunded under this section shall be used only for that
portion of the facility that is used for providing area vocational-
technical education programs and services.
(6) For bonds that are issued under this section after the
effective date of section 640, both of the following apply:
(a) The school electors of a constituent district that has in
effect a resolution adopted under section 640 are not eligible to
vote on the question of issuing bonds under this section or levying
a tax to repay those bonds.
(b) The intermediate school district shall not levy a tax to
repay the bonds on property that is located in a constituent
district that has in effect a resolution adopted under section 640.
Sec. 1711. (1) The intermediate school board shall do all of
the following:
(a) Develop, establish, and continually evaluate and modify in
cooperation with its constituent districts, a plan for special
education that provides for the delivery of special education
programs and services designed to develop the maximum potential of
each student with a disability of whom the intermediate school
board is required to maintain a record under subdivision (f). The
plan shall coordinate the special education programs and services
operated or contracted for by the constituent districts and shall
be submitted to the superintendent of public instruction for
approval.
(b) Contract for the delivery of a special education program
or service, in accordance with the intermediate school district
plan in compliance with section 1701. Under the contract the
intermediate school board may operate special education programs or
services and furnish transportation services and room and board.
(c) Employ or engage special education personnel in accordance
with the intermediate school district plan, and appoint a director
of special education meeting the qualifications and requirements of
the rules promulgated by the superintendent of public instruction.
(d) Accept and use available funds or contributions from
governmental or private sources for the purpose of providing
special education programs and services consistent with this
article.
(e) Lease, purchase, or otherwise acquire vehicles, sites,
buildings, or portions thereof, and equip them for its special
education staff, programs, and services.
(f) Maintain a record of each student with a disability under
26 years of age, who is a resident of 1 of its constituent
districts and who has not graduated from high school, and the
special education programs or services in which the student with a
disability
is participating on the fourth Friday after Labor day
Day
and Friday before Memorial day. Day. The
sole basis for
determining the local school district in which a student with a
disability is a resident shall be the rules promulgated by the
superintendent of public instruction notwithstanding the provisions
of section 1148. The records shall be maintained in accordance with
rules promulgated by the superintendent of public instruction.
(g) Have the authority to place in appropriate special
education programs or services a student with a disability for whom
a constituent district is required to provide special education
programs or services under section 1751.
(h) Investigate special education programs and services
operated or contracted for by the intermediate school board or
constituent district boards and report in writing failures to
comply with the provisions of a contract, statute, or rule
governing the special education programs and services or with the
intermediate school district plan, to the local school district
board and to the superintendent of public instruction.
(i) Operate the special education programs or services or
contract for the delivery of special education programs or services
by local school district boards, in accordance with section 1702,
as if a local school district under section 1751. The contract
shall provide for items stated in section 1751 and shall be
approved by the superintendent of public instruction. The
intermediate school board shall contract for the transportation, or
room and board, or both, or persons participating in the program or
service as if a local school district board under sections 1756 and
1757.
(j) Receive the report of a parent or guardian or, with the
consent of a parent or guardian, receive the report of a licensed
physician, registered nurse, social worker, or school or other
appropriate professional personnel whose training and relationship
to students with a disability provide competence to judge them and
who in good faith believes that a person under 26 years of age
examined by the professional is or may be a student with a
disability, and immediately evaluate the person pursuant to rules
promulgated by the superintendent of public instruction. A person
making or filing this report or a local school district board shall
not incur liability to a person by reason of filing the report or
seeking the evaluation, unless lack of good faith is proven.
(k) Evaluate pupils in accordance with section 1311.
(2) The intermediate school board may expend up to 10% of the
annual budget but not to exceed $12,500.00, for special education
programs approved by the intermediate school board without having
to secure the approval of the superintendent of public instruction.
(3) If a constituent district of an intermediate school
district has in effect a resolution adopted under section 640, that
constituent district shall directly perform the functions otherwise
required under this part to be performed by the intermediate school
district on behalf of pupils or residents of the constituent
district and shall use funds received from the intermediate school
district under section 640 for this purpose.
Sec. 1724a. (1) Beginning in 1995, and subject to section
625b, the board of an intermediate school district may levy ad
valorem property taxes for special education purposes under
sections 1722 to 1729 at a rate not to exceed 1.75 times the number
of mills of those taxes authorized in the intermediate school
district in 1993. All or part of the millage levied under this
section may be renewed as provided in this article. Approval of the
intermediate school electors is not required for the levy under
this section of previously authorized mills until that
authorization expires.
(2) An intermediate school district that levies a tax for
special education operating purposes shall not use proceeds from
the tax for any purpose other than special education operating
purposes and for making payments to a constituent district or
refunds to taxpayers as required under section 640 and shall submit
to the department of treasury a copy of the audit report from the
audit of the intermediate school district conducted under section
622a. If the department of treasury determines from the audit
report that the proceeds from the tax have been used for a purpose
other than special education operating purposes, as defined under
subsection (4), or making payments to a constituent district or
refunds to taxpayers as required under section 640, the department
of treasury shall notify the intermediate school district of that
determination. If the intermediate school district disputes the
determination or claims that the situation has been corrected,
within 15 days after receipt of the determination the intermediate
school district may submit an appeal of the determination to the
department of treasury. Within 90 days after receipt of the appeal,
the department of treasury shall consider the appeal and make a
determination of whether the initial determination was correct or
incorrect and of whether the situation has been corrected. If the
department of treasury finds that the initial determination was
correct and that the situation has not been corrected, then the
department of treasury shall file a copy of the report with the
attorney general. The attorney general shall review the report and,
if the attorney general considers it appropriate, shall commence or
direct the prosecuting attorney for the county in which the
violations occurred to commence appropriate proceedings against the
intermediate school board or the official or employee. These
proceedings shall include at least a civil action in a court of
competent jurisdiction for the recovery of any public money
determined by the audit to have been illegally expended and for the
recovery of any public property determined by the audit to have
been converted or misappropriated.
(3) If the attorney general determines from a report filed
under subsection (2) that an intermediate school district has
misspent tax proceeds as described in subsection (2) and notifies
the intermediate school district of this determination, the
intermediate school district shall repay to its special education
operating fund an amount equal to the amount the department of
treasury determined under subsection (2) has been used for a
purpose other than special education operating purposes or making
payments to a constituent district or refunds to taxpayers as
required under section 640. The intermediate school district shall
make this repayment from funds of the intermediate school district
that lawfully may be used for making such a repayment.
(4) For the purposes of subsections (2) and (3), the
department and the department of treasury, in consultation with
intermediate school districts, shall develop and make available to
intermediate school districts a definition of special education
operating purposes.
(5) An intermediate district shall not hold more than 2
elections in a calendar year concerning the authorization of a
millage rate for special education purposes under sections 1722 to
1729.
Sec. 1731. (1) An intermediate school district may borrow
money and issue bonds of the intermediate school district subject
to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821, to defray all or part of the costs of purchasing,
erecting, completing, remodeling, improving, furnishing,
refurnishing, equipping, or reequipping buildings for special
education facilities; acquiring, preparing, developing, or
improving sites, or parts of sites or additions to sites, for
buildings and other special education facilities; refunding all or
part of existing bonded indebtedness; or the accomplishment of a
combination of these purposes.
(2) An intermediate school district shall not issue bonds for
purposes of purchasing, erecting, completing, remodeling,
improving, furnishing, refurnishing, equipping, or reequipping
buildings for special education for an amount greater than 1.5% of
the total assessed valuation of the intermediate school district.
(3) An intermediate school district shall not use the proceeds
from bonds issued or refunded under this section or levy a tax to
repay bonds issued or refunded under this section for any purpose
other than facilities used for special education purposes. If a
facility is to be used during regular school hours for purposes
other than providing special education programs and services,
proceeds from bonds issued or refunded under this section or from
millage levied to repay bonds issued or refunded under this section
shall be used only for that portion of the facility that is used
for providing special education programs and services.
(4) For bonds that are issued under this section after the
effective date of section 640, both of the following apply:
(a) The school electors of a constituent district that has in
effect a resolution adopted under section 640 are not eligible to
vote on the question of issuing bonds under this section or levying
a tax to repay those bonds.
(b) The intermediate school district shall not levy a tax to
repay the bonds on property that is located in a constituent
district that has in effect a resolution adopted under section 640.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
