Bill Text: MI SB0682 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Education; public school academies; contracts with educational management organization; require certain provisions. Amends secs. 503, 507, 523, 528, 553, 561, 1311e & 1311l of 1976 PA 451 (MCL 380.503 et seq.).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-11-30 - Referred To Committee On Education [SB0682 Detail]
Download: Michigan-2017-SB0682-Introduced.html
SENATE BILL No. 682
November 30, 2017, 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, 507, 523, 528, 553, 561, 1311e, and 1311l
(MCL 380.503, 380.507, 380.523, 380.528, 380.553, 380.561,
380.1311e, and 380.1311l), sections 503, 523, and 553 as amended by
2011 PA 277, sections 507, 528, and 561 as amended by 2016 PA 192,
section 1311e as amended by 2009 PA 205, and section 1311l as added
by 1999 PA 23.
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), 507(6), 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, 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 requirement that each member of the board of
directors must be a citizen of the United States.
(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)
student test of
educational progress (M-STEP) 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.
(q) A requirement that the board of directors of the public
school academy shall not contract with an educational management
organization that has any business affiliation with a charter
school developer, with a person with an ownership interest in or
responsible for the overall operation of a charter school
developer, or with a relative of a charter school developer, and a
requirement that any agreement with an educational management
organization must prohibit the educational management organization
from doing business with a charter school developer, with a person
with an ownership interest in or responsible for the overall
operation of a charter school developer, or with a relative of a
charter school developer, or with a business entity owned or
controlled by a charter school developer, by a person with an
ownership interest in or responsible for the overall operation of a
charter school developer, or by a relative of a charter school
developer. As used in this subdivision, "educational management
organization" means that term as defined in section 503c and
"charter school developer" means an individual or entity that
submitted the application for the contract to organize and operate
the public school academy under section 502(3) or that caused the
application to be submitted through an agent.
(r) A requirement that the public school academy must not
enter into or maintain a management agreement with an educational
management organization if an owner, member, officer, or employee
of the educational management organization has served on the board
of directors of a public school academy under this part, urban high
school academy under part 6c, school of excellence under part 6e,
or strict discipline academy under sections 1311b to 1311m at any
time during the immediately preceding 2-year period. As used in
this subdivision, "educational management organization" and
"management agreement" mean those terms as defined in section 503c.
(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. 507. (1) An authorizing body that issues a contract for a
public school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each public school
academy that it authorizes. The authorizing body shall ensure that
the board of directors includes representation from the local
community.
(d) Oversee each public school academy operating under a
contract issued by the authorizing body. The oversight shall be
sufficient to ensure that the board of directors is in compliance
with the terms of the contract and with applicable law.
(e) Develop and implement a process for holding a public
school academy accountable for meeting applicable academic
performance standards set forth in the contract and for
implementing corrective action for a public school academy that
does not meet those standards.
(f) Take necessary measures to ensure that the board of
directors of a public school academy operates independently of any
educational management company involved in the operations of the
public school academy.
(g) Oversee and ensure that the pupil admission process used
by the public school academy is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the public school
academy maintains and releases information as necessary to comply
with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for a public school academy is the
fiscal agent for the public school academy. A state school aid
payment for a public school academy shall be paid to the
authorizing body that is the fiscal agent for that public school
academy, and the authorizing body shall then forward the payment to
the public school academy. Within 30 days after a contract is
submitted to the department by an authorizing body under subsection
(1), the department shall issue a district code to the public
school academy for which the contract was issued. If the department
does not issue a district code within 30 days after a contract is
filed, the state treasurer shall assign a temporary district code
in order for the public school academy to receive funding under the
state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the public school academy to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the public school academy to comply with all
applicable law.
(c) Failure of the public school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) If an authorizing body determines that a public school
academy has failed to comply with a term of its contract that is
required under section 503(6)(q) or (r), the authorizing body shall
provide written notice to the public school academy of the
violation and order the public school academy to comply with that
contract term within 30 days after the issuance of the written
notice and order. If the public school academy does not comply with
that contract term within 30 days after the issuance of the written
notice and order, the authorizing body shall revoke the public
school academy's contract, effective at the end of the current
school year.
(6) (5)
Except for a public school academy
that is an
alternative school serving a special student population, if the
state school reform/redesign officer determines that a public
school academy site that has been operating for at least 4 years is
among the lowest achieving 5% of all public schools in this state
for the immediately preceding 3 school years, as determined under
section 1280c, not to include any individualized education plan
subgroup, the state school reform/redesign officer shall notify the
public school academy's authorizing body. Also, except for a public
school academy that is an alternative school serving a special
student population, after the accountability system under section
390 has been in effect in the community district for at least 3
full school years, if the state school reform/redesign officer
determines that a public school academy site located in a community
district has been assigned a grade of "F" under section 390 for the
immediately preceding 3 school years, and is not currently
undergoing reconstitution under this section, the state school
reform/redesign officer shall notify the public school academy's
authorizing
body. Subject to subsection (6), (7), if an authorizing
body receives notice from the state school reform/redesign officer
under this subsection, the authorizing body shall amend the public
school academy's contract to eliminate the public school academy's
authority to operate the existing age and grade levels at the site
and the public school academy shall cease operating the existing
age and grade levels at the site, effective at the end of the
current
school year. Subject to subsection (6), (7), if the public
school academy operates at only 1 site, and the authorizing body
receives notice from the state school reform/redesign officer under
this subsection, the authorizing body shall revoke the public
school academy's contract, effective at the end of the current
school year.
(7) (6)
For a public school academy or site
that is subject to
a notice to its authorizing body under this subsection, the state
school reform/redesign officer shall consider other public school
options available to pupils in the grade levels offered by the
public school academy or site who reside in the geographic area
served by the public school academy or site. If the state school
reform/redesign officer determines that closure of the public
school academy or site would result in an unreasonable hardship to
these pupils because there are insufficient other public school
options reasonably available for these pupils, the state school
reform/redesign officer may rescind the notice. If the state school
reform/redesign officer rescinds a notice subjecting a public
school academy or site to closure, the state school reform/redesign
officer shall do so before the end of the school year. If the state
school reform/redesign officer rescinds a notice subjecting a
public school academy or site to closure, the state school
reform/redesign officer shall require the public school academy or
site to implement a school improvement plan that includes measures
to increase pupil growth and improve pupil proficiency, with growth
and proficiency measured by performance on state assessments.
(8) (7)
Except as otherwise provided in
section 502 or 503,
the decision of an authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
court or any state agency. An authorizing body that issues, does
not issue, or reconstitutes a contract under this part, or that
terminates or revokes a contract under this section, is not liable
for that action to the public school academy, the public school
academy corporation, a pupil of the public school academy, the
parent or guardian of a pupil of the public school academy, or any
other person.
(9) (8)
Except as otherwise provided in
this section, before
an authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. An
authorizing body may reconstitute the public school academy in a
final attempt to improve student educational performance or to
avoid interruption of the educational process. An authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, canceling a contract with an educational management
organization, if any, withdrawing approval of a contract under
section 506, or appointing a new board of directors or a trustee to
take over operation of the public school academy.
(10) (9)
If an authorizing body revokes a
contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the public school academy under this part, shall return any
school aid funds held by the authorizing body that are attributable
to the affected pupils to the state treasurer for deposit into the
state school aid fund. The state treasurer shall distribute funds
to the public school in which the pupils enroll after the
revocation pursuant to a methodology established by the department
and the center for educational performance and information.
(11) (10)
Not more than 10 days after a
public school
academy's contract terminates or is revoked, the authorizing body
shall notify the superintendent of public instruction in writing of
the name of the public school academy whose contract has terminated
or been revoked and the date of contract termination or revocation.
Sec. 523. (1) An authorizing body is not required to issue a
contract to any entity. Urban high school academy contracts shall
be issued on a competitive basis taking into consideration the
resources available for the proposed urban high school academy, the
population to be served by the proposed urban high school academy,
and the educational goals to be achieved by the proposed urban high
school academy. In evaluating if an applicant is qualified, the
authorizing body shall examine the proposed performance standards,
proposed academic program, financial viability of the applicant,
and the ability of the proposed board of directors to meet the
contract goals and objectives. An authorizing body shall give
priority to applicants that demonstrate all of the following:
(a) The proposed school will operate at least all of grades 9
through 12 within 5 years after beginning operation.
(b) The proposed school will occupy a building or buildings
that are newly constructed or renovated after January 1, 2003.
(c) The proposed school has a stated goal of increasing high
school graduation rates.
(d) The proposed school has received commitments for financial
and educational support from the entity applying for the contract.
(e) The entity that submits the application for a contract has
net assets of at least $50,000,000.00.
(2) A contract issued to organize and administer an urban high
school academy shall contain at least all of the following:
(a) The educational goals the urban high 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 an urban high school academy
shall
be assessed using at least a Michigan education assessment
program
(MEAP) student test of
educational progress (M-STEP) or the
Michigan merit examination developed under section 1279g, as
applicable.
(b) A description of the method to be used to monitor the
urban high 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. An authorizing body may approve
amendment of the contract with respect to any provision contained
in the contract.
(d) A certification, signed by an authorized member of the
urban high school academy board of directors, that the urban high
school academy will comply with the contract and all applicable
law.
(e) Procedures for revoking the contract and grounds for
revoking the contract.
(f) A description of and address for the proposed building or
buildings in which the urban high school academy will be located.
(g) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by an
independent certified public accountant in accordance with
generally accepted governmental auditing principles.
(h) A requirement that the board of directors shall ensure
compliance with the requirements of 1968 PA 317, MCL 15.321 to
15.330.
(i) 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
company involved in the operation of the urban high school academy,
and employees of the urban high school academy. The contract shall
identify the specific prohibited relationships consistent with
applicable law.
(j) A requirement that the board of directors of the urban
high 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.
(k) A requirement that the board of directors of the urban
high 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 urban high school
academy:
(i) A copy of the contract issued by the authorizing body for
the urban high school academy.
(ii) A list of currently serving members of the board of
directors of the urban high school academy, 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 working at the urban high
school academy that includes their individual salaries as submitted
to the registry of educational personnel; copies of the teaching
certificates or permits of current teaching 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 urban
high 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.
(l) A requirement that the authorizing body must review and
may disapprove any agreement between the board of directors and an
educational management company 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.
(m) 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 urban high school academy has made a reasonable
effort to advertise its enrollment openings.
(ii) That the urban high school academy has made the following
additional efforts to recruit pupils who are eligible for special
education programs and 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 within the boundaries of the
intermediate school district in which the urban high school academy
is located.
(B) Inclusion in all pupil recruitment materials of a
statement that appropriate special education services will be made
available to pupils attending the school as required by law.
(iii) That the open enrollment period for the urban high
school academy is for a duration of at least 2 weeks and that the
enrollment times include some evening and weekend times.
(n) A requirement that the board of directors shall prohibit
any individual from being employed by the urban high school academy
in more than 1 full-time position and simultaneously being
compensated at a full-time rate for each of those positions.
(o) A requirement that, if requested, the board of directors
shall report to the authorizing body the total compensation for
each individual working at the urban high school academy.
(p) 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.
(q) A requirement that the board of directors of the urban
high school academy shall not contract with an educational
management organization that has any business affiliation with a
charter school developer, with a person with an ownership interest
in or responsible for the overall operation of a charter school
developer, or with a relative of a charter school developer, and a
requirement that any agreement with an educational management
organization must prohibit the educational management organization
from doing business with a charter school developer, with a person
with an ownership interest in or responsible for the overall
operation of a charter school developer, or with a relative of a
charter school developer, or with a business entity owned or
controlled by a charter school developer, by a person with an
ownership interest in or responsible for the overall operation of a
charter school developer, or by a relative of a charter school
developer. As used in this subdivision, "educational management
organization" means that term as defined in section 523c and
"charter school developer" means an individual or entity that
submitted the application for the contract to organize and operate
the urban high school academy under section 522(4) or that caused
the application to be submitted through an agent.
(r) A requirement that the urban high school academy must not
enter into or maintain a management agreement with an educational
management organization if an owner, member, officer, or employee
of the educational management organization has served on the board
of directors of a public school academy under part 6a, urban high
school academy under this part, school of excellence under part 6e,
or strict discipline academy under sections 1311b to 1311m at any
time during the immediately preceding 2-year period. As used in
this subdivision, "educational management organization" and
"management agreement" mean those terms as defined in section 523c.
(3) An urban high 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) 1978 PA 566, MCL 15.181 to 15.185.
(f) 1968 PA 317, MCL 15.321 to 15.330.
(g) The uniform budgeting and accounting act, 1968 PA 2, MCL
141.421 to 141.440a.
(h) The revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(i) The federal no child left behind act of 2001, Public Law
107-110, 115 Stat. 1425.
(j) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, 1274, and
1280.
(k) 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.
(4) An urban high 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 any acts or omissions in authorizing or oversight of an urban
high 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.
(5) An urban high school academy 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 an urban high 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. Instruments of conveyance to or from
an urban high school academy are exempt from all taxation,
including taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. An
urban high school academy may not levy ad valorem property taxes or
any other tax for any purpose.
(6) An urban high school academy may acquire by purchase,
gift, devise, lease, sublease, installment purchase agreement, land
contract, option, or 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, an urban high 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.
Sec. 528. (1) An authorizing body that issues a contract for
an urban high school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Adopt a resolution establishing the method of selection,
length of term, and number of members of the board of directors of
each urban high school academy that it authorizes. The resolution
shall be written or amended as necessary to include a requirement
that each member of the board of directors must be a citizen of the
United States.
(d) Oversee the operations of each urban high school academy
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the urban high school
academy is in compliance with the terms of the contract and with
applicable law. An authorizing body may enter into an agreement
with 1 or more other authorizing bodies to oversee an urban high
school academy operating under a contract issued by the authorizing
body.
(e) Develop and implement a process for holding an urban high
school academy board of directors accountable for meeting
applicable academic performance standards set forth in the contract
and for implementing corrective action for an urban high school
academy that does not meet those standards.
(f) Take necessary measures to ensure that an urban high
school academy board of directors operates independently of any
educational management company involved in the operations of the
urban high school academy.
(g) Oversee and ensure that the pupil admission process used
by the urban high school academy is operated in a fair and open
manner and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the urban high
school academy maintains and releases information as necessary to
comply with applicable law.
(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) If an authorizing body determines that an urban high
school academy has failed to comply with a term of its contract
that is required under section 523(2)(q) or (r), the authorizing
body shall provide written notice to the urban high school academy
of the violation and order the urban high school academy to comply
with that contract term within 30 days after the issuance of the
written notice and order. If the urban high school academy does not
comply with that contract term within 30 days after the issuance of
the written notice and order, the authorizing body shall revoke the
urban high school academy's contract, effective at the end of the
current school year.
(6) (5)
Except for an urban high school
academy that is an
alternative school serving a special student population, if the
state school reform/redesign officer determines that an urban high
school academy site that has been operating for at least 4 years is
among the lowest achieving 5% of all public schools in this state
for the immediately preceding 3 school years, as determined under
section 1280c, not to include any individualized education plan
subgroup, the state school reform/redesign officer shall notify the
urban high school academy's authorizing body. Also, except for an
urban high school academy that is an alternative school serving a
special student population, after the accountability system under
section 390 has been in effect in the community district for at
least 3 full school years, if the state school reform/redesign
officer determines that an urban high school academy site located
in a community district has been assigned a grade of "F" under
section 390 for the immediately preceding 3 school years, and is
not currently undergoing reconstitution under this section, the
state school reform/redesign officer shall notify the urban high
school
academy's authorizing body. Subject to subsection (6), (7),
if an authorizing body receives notice from the state school
reform/redesign officer under this subsection, the authorizing body
shall amend the urban high school academy's contract to eliminate
the urban high school academy's authority to operate the existing
age and grade levels at the site and the urban high school academy
shall cease operating the existing age and grade levels at the
site, effective at the end of the current school year. Subject to
subsection
(6), (7), if the urban high school academy operates at
only 1 site, and the authorizing body receives notice from the
state school reform/redesign officer under this subsection, the
authorizing body shall revoke the urban high school academy's
contract, effective at the end of the current school year.
(7) (6)
For an urban high school academy or
site that is
subject to a notice to its authorizing body under this subsection,
the state school reform/redesign officer shall consider other
public school options available to pupils in the grade levels
offered by the urban high school academy or site who reside in the
geographic area served by the urban high school academy or site. If
the state school reform/redesign officer determines that closure of
the urban high school academy or site would result in an
unreasonable hardship to these pupils because there are
insufficient other public school options reasonably available for
these pupils, the state school reform/redesign officer may rescind
the notice. If the state school reform/redesign officer rescinds a
notice subjecting an urban high school academy or site to closure,
the state school reform/redesign officer shall do so before the end
of the school year. If the state school reform/redesign officer
rescinds a notice subjecting an urban high school academy or site
to closure, the state school reform/redesign officer shall require
the urban high school academy or site to implement a school
improvement plan that includes measures to increase pupil growth
and improve pupil proficiency, with growth and proficiency measured
by performance on state assessments.
(8) (7)
Except as otherwise provided in
section 522, the
decision of an authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
court or any state agency. An authorizing body that issues, does
not issue, or reconstitutes a contract under this part, or that
terminates or revokes a contract under this section, is not liable
for that action to the urban high school academy, the urban high
school academy corporation, a pupil of the urban high school
academy, the parent or guardian of a pupil of the urban high school
academy, or any other person.
(9) (8)
Except as otherwise provided in
this section, before
an authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. An
authorizing body may reconstitute the urban high school academy in
a final attempt to improve student educational performance or to
avoid interruption of the educational process. An authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, removing 1 or more members of the board of directors,
withdrawing approval to contract under section 527, or appointing a
new board of directors or a trustee to take over operation of the
urban high school academy.
(10) (9)
If an authorizing body revokes a
contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the urban high school academy under this part, shall return any
school aid funds held by the authorizing body that are attributable
to the affected pupils to the state treasurer for deposit into the
state school aid fund. The state treasurer shall distribute funds
to the public school in which the pupils enroll after the
revocation pursuant to a methodology established by the department
and the center for educational performance and information.
(11) (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.
(12) (11)
If an urban high school academy's
contract
terminates or is revoked, title to all real and personal property,
interest in real or personal property, and other assets owned by
the urban high school academy shall revert to the state. This
property shall be distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of an urban high school academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the urban high school academy
corporation, all in accordance with chapter 8 of the nonprofit
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.
(b) The urban high school academy shall file a certificate of
dissolution with the department of licensing and regulatory affairs
within 10 business days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the urban high school academy
board of directors shall provide a copy of the board of directors'
plan of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the urban high school academy's winding up of the dissolved
corporation in accordance with the plan of distribution of assets
approved or provided under subdivision (c).
(e) As part of the plan of distribution of assets, the urban
high school academy board of directors shall designate the director
of the department of technology, management, and budget, or his or
her designee, to dispose of all real property of the urban high
school academy corporation in accordance with the directives
developed for disposition of surplus land and facilities under
section 251 of the management and budget act, 1984 PA 431, MCL
18.1251.
(f) If the board of directors of an urban high school academy
fails to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the urban high
school academy board of directors and appoint a trustee to carry
out the board's plan of distribution of assets. Upon appointment,
the trustee shall have all the rights, powers, and privileges under
law that the urban high school academy board of directors had
before being suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any urban high school academy debt secured by the property or
interest in property, whether real or personal, the urban high
school academy board of directors, or a trustee appointed under
this section, shall forward any remaining money to the state
treasurer. Following receipt, the state treasurer, or his or her
designee, shall deposit this remaining money in the state school
aid fund.
Sec. 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, 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 requirement that each member of the board of
directors must be a citizen of the United States.
(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)
student test of
educational progress (M-STEP) 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.
(q) A requirement that the board of directors of the school of
excellence shall not contract with an educational management
organization that has any business affiliation with a charter
school developer, with a person with an ownership interest in or
responsible for the overall operation of a charter school
developer, or with a relative of a charter school developer, and a
requirement that any agreement with an educational management
organization must prohibit the educational management organization
from doing business with a charter school developer, with a person
with an ownership interest in or responsible for the overall
operation of a charter school developer, or with a relative of a
charter school developer, or with a business entity owned or
controlled by a charter school developer, by a person with an
ownership interest in or responsible for the overall operation of a
charter school developer, or by a relative of a charter school
developer. As used in this subdivision, "educational management
organization" means that term as defined in section 553c and
"charter school developer" means an individual or entity that
submitted the application for the contract to organize and operate
the school of excellence under section 552(7) or that caused the
application to be submitted through an agent.
(r) A requirement that the school of excellence must not enter
into or maintain a management agreement with an educational
management organization if an owner, member, officer, or employee
of the educational management organization has served on the board
of directors of a public school academy under part 6a, urban high
school academy under part 6c, school of excellence under this part,
or strict discipline academy under sections 1311b to 1311m at any
time during the immediately preceding 2-year period. As used in
this subdivision, "educational management organization" and
"management agreement" mean those terms as defined in section 553c.
(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.
Sec. 561. (1) If an authorizing body issues a contract for a
school of excellence under this part, the authorizing body shall do
all of the following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
number of members of the board of directors of each school of
excellence that it authorizes. The authorizing body shall ensure
that the board of directors includes representation from the local
community.
(d) Oversee the operations of each school of excellence
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the school of
excellence is in compliance with the terms of the contract and with
applicable law. This subdivision does not relieve any other
governmental entity of its enforcement or supervisory
responsibility.
(e) Develop and implement a process for holding a school of
excellence board of directors accountable for meeting applicable
academic performance standards set forth in the contract and for
implementing corrective action for a school of excellence that does
not meet those standards.
(f) Take necessary measures to ensure that a school of
excellence board of directors operates independently of any
educational management organization involved in the operations of
the school of excellence.
(g) Oversee and ensure that the pupil admission process used
by the school of excellence is operated in a fair and open manner
and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the school of
excellence maintains and releases information as necessary to
comply with applicable law.
(2) The authorizing body may enter into an agreement with 1 or
more authorizing bodies, as defined under part 6a, to carry out any
function of the authorizing body under subsection (1)(a) to (h).
(3) The authorizing body for a school of excellence is the
fiscal agent for the school of excellence. A state school aid
payment for a school of excellence shall be paid to the authorizing
body as the fiscal agent for that school of excellence, and the
authorizing body shall then forward the payment to the school of
excellence. Within 30 days after a contract is submitted to the
department by the authorizing body under subsection (1), the
department shall issue a district code to the school of excellence
for which the contract was issued. If the department does not issue
a district code within 30 days after a contract is filed, the state
treasurer shall assign a temporary district code in order for the
school of excellence to receive funding under the state school aid
act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body if the authorizing body determines that 1 or more
of the following have occurred:
(a) Failure of the school of excellence to demonstrate
improved pupil academic achievement for all groups of pupils or
meet the educational goals set forth in the contract.
(b) Failure of the school of excellence to comply with all
applicable law.
(c) Failure of the school of excellence to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) If an authorizing body determines that a school of
excellence has failed to comply with a term of its contract that is
required under section 553(5)(q) or (r), the authorizing body shall
provide written notice to the school of excellence of the violation
and order the school of excellence to comply with that contract
term within 30 days after the issuance of the written notice and
order. If the school of excellence does not comply with that
contract term within 30 days after the issuance of the written
notice and order, the authorizing body shall revoke the school of
excellence's contract, effective at the end of the current school
year.
(6) (5)
Except for a school of excellence
that is an
alternative school serving a special student population, if the
state school reform/redesign officer determines that a school of
excellence site that has been operating for at least 4 years is
among the lowest achieving 5% of all public schools in this state
for the immediately preceding 3 school years, as determined under
section 1280c, not to include any individualized education plan
subgroup, the state school reform/redesign officer shall notify the
school of excellence's authorizing body. Also, except for a school
of excellence that is an alternative school serving a special
student population, after the accountability system under section
390 has been in effect in the community district for at least 3
full school years, if the state school reform/redesign officer
determines that a school of excellence site located in a community
district has been assigned a grade of "F" under section 390 for the
immediately preceding 3 school years, and is not currently
undergoing reconstitution under this section, the state school
reform/redesign officer shall notify the school of excellence's
authorizing
body. Subject to subsection (6), (7), if an authorizing
body receives notice from the state school reform/redesign officer
under this subsection, the authorizing body shall amend the school
of excellence's contract to eliminate the school of excellence's
authority to operate the existing age and grade levels at the site
and the school of excellence shall cease operating the existing age
and grade levels at the site, effective at the end of the current
school
year. Subject to subsection (6), (7), if the school of
excellence operates at only 1 site or is a cyber school, and the
authorizing body receives notice from the state school
reform/redesign officer under this subsection, the authorizing body
shall revoke the school of excellence's contract, effective at the
end of the current school year.
(7) (6)
For a school of excellence or site
that is subject to
a notice to its authorizing body under this subsection, the state
school reform/redesign officer shall consider other public school
options available to pupils in the grade levels offered by the
school of excellence or site who reside in the geographic area
served by the school of excellence or site. If the state school
reform/redesign officer determines that closure of the school of
excellence or site would result in an unreasonable hardship to
these pupils because there are insufficient other public school
options reasonably available for these pupils, the state school
reform/redesign officer may rescind the notice. If the state school
reform/redesign officer rescinds a notice subjecting a school of
excellence or site to closure, the state school reform/redesign
officer shall do so before the end of the school year. If the state
school reform/redesign officer rescinds a notice subjecting a
school of excellence or site to closure, the state school
reform/redesign officer shall require the school of excellence or
site to implement a school improvement plan that includes measures
to increase pupil growth and improve pupil proficiency, with growth
and proficiency measured by performance on state assessments.
(8) (7)
Except for a contract issued by a
school district
pursuant to a vote by the school electors on a ballot question
under section 553(2), and except as otherwise provided in section
552, the decision of the authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
court or any other state agency. If the authorizing body issues,
does not issue, or reconstitutes a contract under this part, or
terminates or revokes a contract under this section, the
authorizing body is not liable for that action to the school of
excellence, the school of excellence corporation, a pupil of the
school of excellence, the parent or guardian of a pupil of the
school of excellence, or any other person.
(9) (8)
Except as otherwise provided in
this section, before
the authorizing body revokes a contract, the authorizing body may
consider and take corrective measures to avoid revocation. The
authorizing body may reconstitute the school of excellence in a
final attempt to improve student educational performance or to
avoid interruption of the educational process. The authorizing body
shall include a reconstituting provision in the contract that
identifies these corrective measures, including, but not limited
to, canceling a contract with an educational management
organization, if any, withdrawing approval to contract under
section 560, or appointing a new board of directors or a trustee to
take over operation of the school of excellence.
(10) (9)
If the authorizing body revokes a
contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the school of excellence under this part, shall return any
school aid funds held by the authorizing body that are attributable
to the affected pupils to the state treasurer for deposit into the
state school aid fund. The state treasurer shall distribute funds
to the public school in which the pupils enroll after the
revocation pursuant to a methodology established by the department
and the center for educational performance and information.
(11) (10) Not more than 10 days after a school of
excellence's
contract terminates or is revoked, the authorizing body shall
notify the superintendent of public instruction in writing of the
name of the school of excellence whose contract has terminated or
been revoked and the date of contract termination or revocation.
(12) (11)
If a school of excellence's
contract terminates or
is revoked, title to all real and personal property, interest in
real or personal property, and other assets owned by the school of
excellence shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of a school of excellence shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the school of excellence corporation,
all in accordance with chapter 8 of the nonprofit corporation act,
1982 PA 162, MCL 450.2801 to 450.2864.
(b) The school of excellence shall file a certificate of
dissolution with the department of licensing and regulatory affairs
within 10 business days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the school of excellence board
of directors shall provide a copy of the board of directors' plan
of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the school of excellence's winding up of the dissolved corporation
in accordance with the plan of distribution of assets approved or
provided under subdivision (c).
(e) As part of the plan of distribution of assets, the school
of excellence board of directors shall designate the director of
the department of technology, management, and budget, or his or her
designee, to dispose of all real property of the school of
excellence corporation in accordance with the directives developed
for disposition of surplus land and facilities under section 251 of
the management and budget act, 1984 PA 431, MCL 18.1251.
(f) If the board of directors of a school of excellence fails
to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the school of
excellence board of directors and appoint a trustee to carry out
the board's plan of distribution of assets. Upon appointment, the
trustee shall have all the rights, powers, and privileges under law
that the school of excellence board of directors had before being
suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any school of excellence debt secured by the property or interest
in property, whether real or personal, the school of excellence
board of directors, or a trustee appointed under this section,
shall forward any remaining money to the state treasurer. Following
receipt, the state treasurer, or his or her designee, shall deposit
this remaining money in the state school aid fund.
Sec. 1311e. (1) An authorizing body is not required to issue a
contract to any person or entity. Contracts for strict discipline
academies shall be issued on a competitive basis taking into
consideration the resources available for the proposed strict
discipline academy, the population to be served by the proposed
strict discipline academy, and the educational goals to be achieved
by the proposed strict discipline academy.
(2) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more strict
discipline 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 1311d and
shall be signed by a number of school electors of the school
district equal to at least 15% of the total number of school
electors of that school district. The petition shall be filed with
the secretary of the board. If the board receives a petition
meeting the requirements of this subsection, the board shall place
the question of issuing the contract on the ballot at its next
annual 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 strict
discipline academy, the board of the authorizing body shall submit
to the state board a copy of the contract and of the application
under section 1311d.
(4) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, and number of members of
the board of directors of each strict discipline academy subject to
its jurisdiction.
(5) A contract issued to organize and administer a strict
discipline academy shall contain at least all of the following:
(a) The educational goals the strict discipline academy is to
achieve and the methods by which it will be held accountable. To
the extent applicable, the pupil performance of a strict discipline
academy
shall be assessed using at least a Michigan education
assessment
program (MEAP) student test of
educational progress (M-
STEP) or the Michigan merit examination developed under section
1279g, as applicable.
(b) A description of the method to be used to monitor the
strict discipline 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) For a strict discipline academy authorized by a school
district, an agreement that employees of the strict discipline
academy will be covered by the collective bargaining agreements
that apply to employees of the school district employed in similar
classifications in schools that are not strict discipline
academies.
(f) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 1311l.
(g) A description of and address for the proposed physical
plant in which the strict discipline academy will be located.
(h) 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.
(i) 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 student growth as measured
by assessments and other objective criteria as a significant factor
in the decision of whether or not to renew the contract.
(j) A requirement that the board of directors of the strict
discipline academy shall not contract with an educational
management organization that has any business affiliation with a
charter school developer, with a person with an ownership interest
in or responsible for the overall operation of a charter school
developer, or with a relative of a charter school developer, and a
requirement that any agreement with an educational management
organization must prohibit the educational management organization
from doing business with a charter school developer, with a person
with an ownership interest in or responsible for the overall
operation of a charter school developer, or with a relative of a
charter school developer, or with a business entity owned or
controlled by a charter school developer, by a person with an
ownership interest in or responsible for the overall operation of a
charter school developer, or by a relative of a charter school
developer. As used in this subdivision, "educational management
organization" means an entity that enters into a management
agreement with a strict discipline academy and "charter school
developer" means an individual or entity that submitted the
application for the contract to organize and operate the public
school academy under section 1311d(3) or that caused the
application to be submitted through an agent.
(k) A requirement that the strict discipline academy must not
enter into or maintain a management agreement with an educational
management organization if an owner, member, officer, or employee
of the educational management organization has served on the board
of directors of a public school academy under part 6a, urban high
school academy under part 6c, school of excellence under part 6e,
or strict discipline academy under sections 1311b to 1311m at any
time during the immediately preceding 2-year period. As used in
this subdivision, "educational management organization" means an
entity that enters into a management agreement with a strict
discipline academy, and "management agreement" means an agreement
to provide comprehensive educational, administrative, management,
or instructional services or staff to a strict discipline academy.
(6) A strict discipline 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) Except for part 6a, all provisions of this act that
explicitly apply to public school academies established under part
6a.
(7) A strict discipline 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 any acts or omissions in authorizing a strict discipline
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.
(8) A strict discipline academy is exempt from all taxation on
its earnings and property. Instruments of conveyance to or from a
strict discipline academy are exempt from all taxation including
taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. A strict
discipline academy may not levy ad valorem property taxes or any
other tax for any purpose. However, operation of 1 or more strict
discipline 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
any other tax.
(9) A strict discipline 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 strict
discipline 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.
Sec. 1311l. (1) The authorizing body for a strict discipline
academy is the fiscal agent for the strict discipline academy. A
state school aid payment for a strict discipline academy shall be
paid to the authorizing body that is the fiscal agent for that
strict discipline academy, which shall then forward the payment to
the strict discipline academy. An authorizing body has the
responsibility to oversee a strict discipline academy's compliance
with the contract and all applicable law. A contract issued under
sections 1311b to 1311l may be revoked by the authorizing body that
issued the contract if the authorizing body determines that 1 or
more of the following has occurred:
(a) Failure of the strict discipline academy to abide by and
meet the educational goals set forth in the contract.
(b) Failure of the strict discipline academy to comply with
all applicable law.
(c) Failure of the strict discipline academy to meet generally
accepted public sector accounting principles.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(2) If an authorizing body determines that a strict discipline
academy has failed to comply with a term of its contract that is
required under section 1311e(5)(j) or (k), the authorizing body
shall provide written notice to the strict discipline academy of
the violation and order the strict discipline academy to comply
with that contract term within 30 days after the issuance of the
written notice and order. If the strict discipline academy does not
comply with that contract term within 30 days after the issuance of
the written notice and order, the authorizing body shall revoke the
strict discipline academy's contract, effective at the end of the
current school year.
(3) (2)
The decision of an authorizing body
to 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 revokes a contract
under this section is not liable for that action to the strict
discipline academy, strict discipline academy corporation, a pupil
of the strict discipline academy, the parent or guardian of a pupil
of the strict discipline academy, or any other person.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
