Bill Text: MI SB1104 | 2013-2014 | 97th Legislature | Introduced

Michigan Senate Bill 1104 (Prior Session Legislation)

Introduced

Bill Title: Education; public school academies; increased oversight over charter schools, certificate of need for new charter schools, open bid process for contracted services, and procedures for removal of charter school board members; provide for. Amends secs. 502, 503, 503c, 522, 523c, 528, 552, 553, 553c, 1311d & 1311e of 1976 PA 451 (MCL 380.502 et seq.).

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2014-10-02 - Referred To Committee On Education [SB1104 Detail]

Download: Michigan-2013-SB1104-Introduced.html

SENATE BILL No. 1104

October 2, 2014, Introduced by Senators HOPGOOD, WHITMER, ANDERSON, GREGORY and HOOD and referred to the Committee on Education.

A bill to amend 1976 PA 451, entitled

"The revised school code,"

by amending sections 502, 503, 503c, 522, 523c, 528, 552, 553,

553c, 1311d, and 1311e (MCL 380.502, 380.503, 380.503c, 380.522,

380.523c, 380.528, 380.552, 380.553, 380.553c, 380.1311d, and

380.1311e), sections 502, 503, 522, 528, and 553 as amended and

sections 503c, 523c, and 553c as added by 2011 PA 277, section 552

as amended by 2012 PA 129, section 1311d as added by 1999 PA 23,

and section 1311e as amended by 2009 PA 205.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 502. (1) A public school academy shall be organized and

administered under the direction of a board of directors in

accordance with this part and with bylaws adopted by the board of

directors. A public school academy corporation shall be organized

under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

450.3192, except that a public school academy corporation is not

required to comply with sections 170 to 177 of 1931 PA 327, MCL

450.170 to 450.177. To the extent disqualified under the state or

federal constitution, a public school academy shall not be

organized by a church or other religious organization and shall not

have any organizational or contractual affiliation with or

constitute a church or other religious organization.

(2) ~~Any~~ Subject to subsections (4) and (5), any of the

following may act as an authorizing body to issue a contract to

organize and operate 1 or more public school academies under this

part:

(a) The board of a school district that operates grades K to

12. However, the board of a school district shall not issue a

contract for a public school academy to operate outside the school

district's boundaries, and a public school academy authorized by

the board of a school district shall not operate outside that

school district's boundaries.

(b) An intermediate school board. However, the board of an

intermediate school district shall not issue a contract for a

public school academy to operate outside the intermediate school

district's boundaries, and a public school academy authorized by

the board of an intermediate school district shall not operate

outside that intermediate school district's boundaries.

otherwise provided in this subdivision, the board of a community

college shall not issue a contract for a public school academy to

operate in a school district organized as a school district of the

first class, a public school academy authorized by the board of a

community college shall not operate in a school district organized

as a school district of the first class, the board of a community

college shall not issue a contract for a public school academy to

operate outside the boundaries of the community college district,

and a public school academy authorized by the board of a community

college shall not operate outside the boundaries of the community

college district. The board of a community college also may issue a

contract for not more than 1 public school academy to operate on

the grounds of an active or closed federal military installation

located outside the boundaries of the community college district,

or may operate a public school academy itself on the grounds of

such a federal military installation, if the federal military

installation is not located within the boundaries of any community

college district and the community college has previously offered

courses on the grounds of the federal military installation for at

least 10 years.

(d) The governing board of a state public university. However,

the combined total number of contracts for public school academies

issued by all state public universities shall not exceed ~~300~~

~~through December 31, 2012 and shall not exceed 500 through December~~

~~31, 2014. After December 31, 2014, there is no limit on the~~

~~combined total number of contracts for public school academies that~~

~~may be issued by all state public universities.~~the combined total

number of public school academies authorized by all state public

universities that are in operation during the 2014-2015 school

year.

(e) Two or more of the public agencies described in

subdivisions (a) to (d) exercising power, privilege, or authority

jointly pursuant to an interlocal agreement under the urban

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

124.512. However, if 1 or more of the public agencies that is party

to the interlocal agreement is a state public university, then the

issuance of the contract is subject to the limitation on the

combined total number of contracts for public school academies

issued by all state public universities under subdivision (d).

(3) To obtain a contract to organize and operate 1 or more

public school academies, 1 or more persons or an entity may apply

to an authorizing body described in subsection (2). The application

shall include at least all of the following:

(a) Identification of the applicant for the contract.

(b) Subject to the resolution adopted by the authorizing body

under section 503(5), a list of the proposed members of the board

of directors of the public school academy and a description of the

qualifications and method for appointment or election of members of

the board of directors.

include at least all of the following:

(i) The name of the proposed public school academy.

(ii) The purposes for the public school academy corporation.

This language shall provide that the public school academy is

incorporated pursuant to this part and that the public school

academy corporation is a governmental entity.

(iii) The name of the authorizing body.

(iv) The proposed time when the articles of incorporation will

be effective.

(v) Other matters considered expedient to be in the articles

of incorporation.

(d) A copy of the proposed bylaws of the public school

academy.

(e) Documentation meeting the application requirements of the

authorizing body, including at least all of the following:

(i) The governance structure of the public school academy.

(ii) A copy of the educational goals of the public school

academy and the curricula to be offered and methods of pupil

assessment to be used by the public school academy. The educational

goals shall include demonstrated improved pupil academic

achievement for all groups of pupils. To the extent applicable, the

progress of the pupils in the public school academy shall be

assessed using at least a Michigan education assessment program

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

as applicable.

(iii) The admission policy and criteria to be maintained by the

public school academy. The admission policy and criteria shall

comply with section 504. This part of the application also shall

include a description of how the applicant will provide to the

general public adequate notice that a public school academy is

being created and adequate information on the admission policy,

criteria, and process.

(iv) The school calendar and school day schedule.

(v) The age or grade range of pupils to be enrolled.

(f) Descriptions of staff responsibilities and of the public

school academy's governance structure.

(g) For an application to the board of a school district, an

intermediate school board, or board of a community college,

identification of the local and intermediate school districts in

which the public school academy will be located.

(h) An agreement that the public school academy will comply

with the provisions of this part and, subject to the provisions of

this part, with all other state law applicable to public bodies and

with federal law applicable to public bodies or school districts.

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

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

applicant may request the authorizing body to issue a contract

allowing the public school academy board of directors to operate

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

(j) The certificate of need issued by the state board under

subsection (4).

(4) An authorizing body shall not issue a contract to organize

and operate a public school academy under this part unless the

application is accompanied by a certificate of need issued by the

state board under this subsection. The state board shall promulgate

rules to develop and implement a process for issuing a certificate

of need for a new public school academy. The standards for issuing

a certificate of need shall include, but are not limited to, 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.

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.

(i) The number of public school options already available in

the proximity of a proposed location of the proposed public school

academy.

(j) The impact of the issuance of the contract on existing

public schools in the proximity of a proposed location of the

proposed public school academy.

(5) An authorizing body shall not issue a new contract to

organize and operate a public school academy under this part to an

existing public school academy, urban high school academy, school

of excellence, or strict discipline academy that has had its

contract with its previous authorizing body revoked, terminated, or

not renewed. The board of directors of a public school academy,

urban high school academy, school of excellence, or strict

discipline academy described in this subsection shall not apply for

a contract that would violate this subsection.

(6) ~~(4)~~ An authorizing body shall oversee, or shall contract

with an intermediate school district, community college, or state

public university to oversee, each public school academy operating

under a contract issued by the authorizing body. The authorizing

body is responsible for overseeing compliance by the board of

directors with the contract and all applicable law. This subsection

does not relieve any other government entity of its enforcement or

supervisory responsibility.

(7) ~~(5)~~ If the superintendent of public instruction finds that

an authorizing body is not engaging in appropriate continuing

oversight of 1 or more public school academies operating under a

contract issued by the authorizing body, the superintendent of

public instruction may suspend the power of the authorizing body to

issue new contracts to organize and operate public school

academies. A contract issued by the authorizing body during the

suspension is void. A contract issued by the authorizing body

before the suspension is not affected by the suspension. In

evaluating whether an authorizing body is engaging in appropriate

continuing oversight of 1 or more public school academies operating

under a contract issued by the authorizing body, the superintendent

of public instruction shall take into account all of the following:

(a) The academic performance of the public school academies

authorized by the authorizing body, including at least the ranking

of those schools on the department's "top-to-bottom" list and the

measures already implemented at the school to address student

improvement.

(b) New or reauthorized contracts that are submitted by the

authorizing body to the superintendent of public instruction with

more than 2 deficiencies.

authorized by the authorizing body, including at least the number

of those schools' websites that have an inactive or outdated

"transparency mitten" or do not have an updated budget.

(d) Fiscal responsibility demonstrated by the public school

academies authorized by the authorizing body, including at least

the number of late audits, audit findings, and deficits among those

schools.

(e) Assurances and verifications, as defined by the

superintendent of public instruction.

(8) ~~(6)~~ An authorizing body shall not charge a fee, or require

reimbursement of expenses, for considering an application for a

contract, for issuing a contract, or for providing oversight of a

contract for a public school academy in an amount that exceeds a

combined total of 3% of the total state school aid received by the

public school academy in the school year in which the fees or

expenses are charged. An authorizing body may provide other

services for a public school academy and charge a fee for those

services, but shall not require such an arrangement as a condition

to issuing the contract authorizing the public school academy.

(9) ~~(7)~~ A public school academy shall be presumed to be

legally organized if it has exercised the franchises and privileges

of a public school academy for at least 2 years.

(10) ~~(8)~~ An authorizing body may enter into an

intergovernmental agreement with another authorizing body to issue

public school academy contracts. At a minimum, the agreement shall

further the purposes set forth in section 501, describe which

authorizing body shall issue the contract, and set forth which

authorizing body will be responsible for monitoring compliance by

the board of directors of the public school academy with the

contract and all applicable law. However, if 1 of the parties to

the intergovernmental agreement is a state public university, then

the issuance of the contract is subject to the limitation on the

combined total number of contracts for public school academies

issued by all state public universities under subsection (2)(d).

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.

public school academy.

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

school academies or other public schools.

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

proposed public school academy is proposed to be located.

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

school academy is proposed to be located.

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

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

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

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

all public schools in this state.

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

academies in the proximity of a proposed location of the proposed

public school academy.

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

school academy that is intended to replace a public school academy

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

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

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

12 within 6 years after it begins operations unless a matriculation

agreement has been entered into with another public school that

provides grades 9 to 12.

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

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

school academies within the boundaries of the school district and

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

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

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

district. The petition shall contain all of the information

required to be in the contract application under section 502 and

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

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

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

the school district filing official. If the board receives a

petition meeting the requirements of this subsection, the board

shall have the question of issuing the contract placed on the

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

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

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

contract, the board shall issue the contract.

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

school academy, the authorizing body shall submit to the

superintendent of public instruction a copy of the contract.

(5) An authorizing body shall adopt a resolution establishing

the method of selection, length of term, 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. The resolution

shall also be written or amended as necessary to include a process

and standards for removal of a member of the board of directors.

The resolution shall provide that a member of the board of

directors may be removed only for gross neglect of duty or for

corrupt conduct in office, or for any other misfeasance,

malfeasance, or nonfeasance in office.

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

school academy shall contain at least all of the following:

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

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

educational goals shall include demonstrated improved pupil

academic achievement for all groups of pupils. To the extent

applicable, the pupil performance of a public school academy shall

be assessed using at least a Michigan education assessment program

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

as applicable.

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

public school academy's compliance with applicable law and its

performance in meeting its targeted educational objectives.

during the term of the contract.

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

contract.

(e) Procedures for revoking the contract and grounds for

revoking the contract, including at least the grounds listed in

section 507.

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

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

authorizing body may include a provision in the contract allowing

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

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

each configuration of age or grade levels and each site identified

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

directors.

(g) Requirements and procedures for financial audits. The

financial audits shall be conducted at least annually by a

certified public accountant in accordance with generally accepted

governmental auditing principles.

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

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

The standards for renewal shall include increases in academic

achievement for all groups of pupils as measured by assessments and

other objective criteria as the most important factor in the

decision of whether or not to renew the contract.

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

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

school academy will comply with the contract and all applicable

law.

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

school academy shall ensure compliance with the requirements of

1968 PA 317, MCL 15.321 to 15.330.

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

school academy shall prohibit specifically identified family

relationships between members of the board of directors,

individuals who have an ownership interest in or who are officers

or employees of an educational management organization involved in

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

public school academy. The contract shall identify the specific

prohibited relationships consistent with applicable law.

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

school academy shall make information concerning its operation and

management available to the public and to the authorizing body in

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

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

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

public and the authorizing body, in accordance with applicable law

and the contract, at least all of the following information

concerning the operation and management of the public school

academy:

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

the public school academy.

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

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

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

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

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

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

as they were submitted to the board of directors.

(iii) Quarterly financial reports submitted to the authorizing

body.

(iv) A current list of teachers and school administrators

working at the public school academy that includes their individual

salaries as submitted to the registry of educational personnel;

copies of the teaching or school administrator's certificates or

permits of current teaching and administrative staff; and evidence

of compliance with the criminal background and records checks and

unprofessional conduct check required under sections 1230, 1230a,

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

school academy.

(v) Curriculum documents and materials given to the

authorizing body.

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

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

equipment leases.

(viii) Copies of any management contracts or services contracts

approved by the board of directors.

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

those relating to fire safety, environmental matters, asbestos

inspection, boiler inspection, and food service.

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

financial audit under subdivision (g).

(xi) Any other information specifically required under this

act.

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

may disapprove any agreement between the board of directors of the

public school academy and an educational management organization

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

disapprove an agreement described in this subdivision only if the

agreement is contrary to the contract or applicable law.

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

school academy shall demonstrate all of the following to the

satisfaction of the authorizing body with regard to its pupil

admission process:

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

to advertise its enrollment openings.

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

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

enrollment times include some evening and weekend times.

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

school academy shall prohibit any individual from being employed by

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

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

those positions.

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

law, including all of the following:

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

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

15.246.

(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. 503c. (1) Beginning with management agreements described

in this section that are entered into or renewed after the

effective date of this section, if the board of directors of a

public school academy enters into or renews a management agreement

with an educational management organization to carry out the

operations of the public school academy, both of the following

apply:

(a) The management agreement shall require the educational

management organization to provide to the board of directors at

least annually all of the same information that a school district

is required to disclose under section 18(2) of the state school aid

act of 1979, MCL 388.1618, for the most recent school fiscal year

for which that information is available.

(b) Within 30 15 days after receiving the information under

subdivision (a), the board of directors shall make all of the

information it receives under subdivision (a) available through a

link on the public school academy's website homepage, in a form and

manner prescribed by the department.

(2) Beginning with management agreements that are entered into

or renewed after the effective date of this subsection, if the

board of directors of a public school academy enters into or renews

a management agreement with an educational management organization

to carry out the operations of the public school academy, both of

the following apply:

(a) The management agreement shall not include the provision

of services that require competitive bidding under section 1267 or

the procurement of supplies, materials, and equipment that require

competitive bidding under section 1274.

(b) The public school academy shall not also enter into an

agreement with that educational management organization for

material and labor described in section 1267 or for the procurement

of supplies, materials, and equipment described in section 1274

without first obtaining competitive bids as prescribed under those

sections, as applicable.

(3) ~~(2)~~ As used in this section:

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

enters into a management agreement with a public school academy.

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

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

legal entity.

comprehensive educational, administrative, management, or

instructional services or staff to a public school academy.

(d) "School fiscal year" means the period that begins July 1

and ends June 30.

Sec. 522. (1) An urban high school academy shall be organized

and administered under the direction of a board of directors in

accordance with this part and with bylaws adopted by the board of

directors. An urban high school academy corporation shall be

organized under the nonprofit corporation act, 1982 PA 162, MCL

450.2101 to 450.3192, except that an urban high school academy

corporation is not required to comply with sections 170 to 177 of

1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified

under the state or federal constitution, an urban high school

academy shall not be organized by a church or other religious

organization and shall not have any organizational or contractual

affiliation with or constitute a church or other religious

organization.

(2) ~~The~~ Subject to subsections (5) and (6), the governing

board of a state public university may act as an authorizing body

to issue a contract for the organization and operation of an urban

high school academy under this part.

(3) A contract issued under this part shall be issued for an

initial term of 10 years. If the urban high school academy meets

the educational goals set forth in the contract and operates in

substantial compliance with this part, the authorizing body shall

automatically renew the contract for a subsequent 10-year term.

(4) To obtain a contract to organize and operate 1 or more

urban high school academies, an entity may apply to an authorizing

body described in subsection (2). The contract shall be issued to

an urban high school academy corporation designated by the entity

applying for the contract. The application shall include at least

all of the following:

(a) Name of the entity applying for the contract.

(b) Subject to the resolution adopted by the authorizing body

under section 528, a list of the proposed members of the board of

directors of the urban high school academy and a description of the

qualifications and method for appointment or election of members of

the board of directors.

include at least all of the following:

(i) The name of the proposed urban high school academy to which

the contract will be issued.

(ii) The purposes for the urban high school academy

corporation. This language shall provide that the urban high school

academy is incorporated pursuant to this part and that the urban

high school academy corporation is a governmental entity and

political subdivision of this state.

(iii) The name of the authorizing body.

(iv) The proposed time when the articles of incorporation will

be effective.

(v) Other matters considered expedient to be in the articles

of incorporation.

(d) A copy of the proposed bylaws of the urban high school

academy.

(e) Documentation meeting the application requirements of the

authorizing body, including at least all of the following:

(i) The governance structure of the urban high school academy.

(ii) A copy of the educational goals of the urban high school

academy and the curricula to be offered and methods of pupil

assessment to be used by the urban high school academy. The

educational goals shall include demonstrated improved pupil

academic achievement for all groups of pupils. To the extent

applicable, the progress of the pupils in the urban high school

academy shall be assessed using at least a Michigan education

assessment program (MEAP) test or the Michigan merit examination

under section 1279g, as applicable.

(iii) The admission policy and criteria to be maintained by the

urban high school academy. The admission policy and criteria shall

comply with section 524. This part of the application also shall

include a description of how the applicant will provide to the

general public adequate notice that an urban high school academy is

being created and adequate information on the admission policy,

criteria, and process.

(iv) The school calendar and school day schedule.

(v) The age or grade range of pupils to be enrolled.

(f) Descriptions of staff responsibilities and of the urban

high school academy's governance structure.

(g) A description of and address for the proposed building or

buildings in which the urban high school academy will be located,

and a financial commitment by the entity applying for the contract

to construct or renovate the building or buildings that will be

occupied by the urban high school academy that is issued the

contract.

(h) The certificate of need issued by the state board under

subsection (5).

(5) An authorizing body shall not issue a contract to organize

and operate an urban high school academy under this part unless the

application is accompanied by a certificate of need issued by the

state board under this subsection. The state board shall promulgate

rules to develop and implement a process for issuing a certificate

of need for a new urban high school academy. The standards for

issuing a certificate of need shall include, but are not limited

to, all of the following:

(a) The resources available for the proposed urban high school

academy.

(b) The population to be served by the proposed urban high

school academy.

high school academy.

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

high school academies or other public schools.

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

proposed urban high school academy is proposed to be located.

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

high school academy is proposed to be located.

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

location of the proposed urban high 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 urban high school

academies in the proximity of a proposed location of the proposed

urban high school academy.

(i) The number of public school options already available in

the proximity of a proposed location of the proposed urban high

school academy.

(j) The impact of the issuance of the contract on existing

public schools in the proximity of a proposed location of the

proposed urban high school academy.

(6) An authorizing body shall not issue a new contract to

organize and operate an urban high school academy under this part

to an existing public school academy that has had its contract with

its previous authorizing body revoked, terminated, or not renewed.

The board of directors of a public school academy described in this

subsection shall not apply for a contract that would violate this

subsection.

(7) ~~(5)~~ If a particular state public university issues a

contract that allows an urban high school academy to operate the

same configuration of grades at more than 1 site, as provided in

section 524(1), each of those sites shall be under the direction of

the board of directors that is a party to the contract.

(8) ~~(6)~~ If the superintendent of public instruction finds that

an authorizing body is not engaging in appropriate continuing

oversight of 1 or more urban high school academies operating under

a contract issued by the authorizing body, the superintendent of

public instruction may suspend the power of the authorizing body to

issue new contracts to organize and operate urban high school

academies. A contract issued by the authorizing body during the

suspension is void. A contract issued by the authorizing body

before the suspension is not affected by the suspension. In

evaluating whether an authorizing body is engaging in appropriate

continuing oversight of 1 or more urban high school academies

operating under a contract issued by the authorizing body, the

superintendent of public instruction shall take into account all of

the following:

(a) The academic performance of the urban high school

academies authorized by the authorizing body, including at least

the ranking of those schools on the department's "top-to-bottom"

list and the measures already implemented at the school to address

student improvement.

(b) New or reauthorized contracts that are submitted by the

authorizing body to the superintendent of public instruction with

more than 2 deficiencies.

academies authorized by the authorizing body, including at least

the number of those schools' websites that have an inactive or

outdated "transparency mitten" or do not have an updated budget.

(d) Fiscal responsibility demonstrated by the urban high

school academies authorized by the authorizing body, including at

least the number of late audits, audit findings, and deficits among

those schools.

(e) Assurances and verifications, as defined by the

superintendent of public instruction.

(9) ~~(7)~~ An authorizing body shall not charge a fee, or require

reimbursement of expenses, for considering an application for a

contract, for issuing a contract, or for providing oversight of a

contract for an urban high school academy in an amount that exceeds

a combined total of 3% of the total state school aid received by

the urban high school academy in the school year in which the fees

or expenses are charged. All of the following apply to this fee:

(a) An authorizing body may use this fee only for the

following purposes:

(i) Considering applications and issuing or administering

contracts.

(ii) Compliance monitoring and oversight of urban high school

academies.

(iii) Training for urban high school academy applicants,

administrators, and boards of directors.

(iv) Technical assistance to urban high school academies.

(v) Academic support to urban high school academies or to

pupils or graduates of urban high school academies.

(vi) Evaluation of urban high school academy performance.

(vii) Training of teachers, including supervision of teacher

interns.

(viii) Other purposes that assist the urban high school

academies or traditional public schools in achieving improved

academic performance.

(b) An authorizing body may provide other services for an

urban high school academy and charge a fee for those services, but

shall not require such an arrangement as a condition to issuing the

contract authorizing the urban high school academy.

(10) ~~(8)~~ An urban high school academy shall be presumed to be

legally organized if it has exercised the franchises and privileges

of an urban high school academy for at least 2 years.

Sec. 523c. (1) Beginning with management agreements described

in this section that are entered into or renewed after the

effective date of this section, if the board of directors of an

urban high school academy enters into or renews a management

agreement with an educational management organization to carry out

the operations of the urban high school academy, both of the

following apply:

(a) The management agreement shall require the educational

management organization to provide to the board of directors at

least annually all of the same information that a school district

is required to disclose under section 18(2) of the state school aid

act of 1979, MCL 388.1618, for the most recent school fiscal year

for which that information is available.

(b) Within 30 15 days after receiving the information under

subdivision (a), the board of directors shall make all of the

information it receives under subdivision (a) available through a

link on the urban high school academy's website homepage, in a form

and manner prescribed by the department.

(2) Beginning with management agreements that are entered into

or renewed after the effective date of this subsection, if the

board of directors of an urban high school academy enters into or

renews a management agreement with an educational management

organization to carry out the operations of the public school

academy, both of the following apply:

(a) The management agreement shall not include the provision

of services that require competitive bidding under section 1267 or

the procurement of supplies, materials, and equipment that require

competitive bidding under section 1274.

(b) The urban high school academy shall not also enter into an

agreement with the educational management organization for material

and labor described in section 1267 or for the procurement of

supplies, materials, and equipment described in section 1274

without first obtaining competitive bids as prescribed under those

sections, as applicable.

(3) ~~(2)~~ As used in this section:

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

enters into a management agreement with an urban high school

academy.

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

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

legal entity.

comprehensive educational, administrative, management, or

instructional services or staff to an urban high school academy.

(d) "School fiscal year" means the period that begins July 1

and ends June 30.

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.

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. The resolution shall also be written or amended as

necessary to include a process and standards for removal of a

member of the board of directors. The resolution shall provide that

a member of the board of directors may be removed only for gross

neglect of duty or for corrupt conduct in office, or for any other

misfeasance, malfeasance, or nonfeasance in office.

(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.

accepted public sector accounting principles and demonstrate sound

fiscal stewardship.

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

specified in the contract.

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

alternative school serving a special student population, if the

superintendent of public instruction determines that an urban high

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

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

as defined for the purposes of the federal incentive grant program

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

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

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

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

education plan subgroup, and is not currently undergoing

reconstitution under this section, the superintendent of public

instruction shall notify the urban high school academy's

authorizing body. If an authorizing body receives notice from the

superintendent of public instruction under this subsection, the

authorizing body shall amend the urban high school academy's

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

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

high school academy shall cease operating the existing age and

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

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

site, and the authorizing body receives notice from the

superintendent of public instruction under this subsection, the

authorizing body shall revoke the urban high school academy's

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

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

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

revoke a contract under this section, is solely within the

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

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

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

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

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

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

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

school academy, or any other person.

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

authorizing body revokes a contract, the authorizing body may

consider and take corrective measures to avoid revocation. An

authorizing body may reconstitute the urban high school academy in

a final attempt to improve student educational performance or to

avoid interruption of the educational process. An authorizing body

shall include a reconstituting provision in the contract that

identifies these corrective measures, including, but not limited

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

withdrawing approval to contract under section 527, or appointing a

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

urban high school academy.

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

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

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

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

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

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

held by the authorizing body that are attributable to the affected

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

fund. The state treasurer shall distribute funds to the public

school in which the pupils enroll after the revocation pursuant to

a methodology established by the department and the center for

educational performance and information.

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

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

1-year period following the revocation without the new contract

counting toward the maximum number of contracts that may be issued

under this part.

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

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

shall notify the superintendent of public instruction in writing of

the name of the urban high school academy whose contract has

terminated or been revoked and the date of contract termination or

revocation.

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

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

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

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

distributed in accordance with the following:

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

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

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

approve the dissolution of the urban high school academy

corporation, all in accordance with chapter 8 of the nonprofit

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

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

dissolution with the bureau of commercial services within 10

business days following board approval.

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. 552. (1) An Subject to subsections (8) and (9), an

authorizing body may issue contracts under this subsection to

organize and operate a school of excellence. All of the following

apply to the issuance of a contract by an authorizing body under

this subsection:

(a) The issuance of the contract must be approved by the

superintendent of public instruction. The superintendent of public

instruction shall approve issuance of a contract if he or she

determines that the proposed school of excellence is modeled after

a high-performing school or program.

(b) The first 5 contracts issued by all authorizing bodies

under this subsection shall be for schools of excellence that offer

1 or more of high school grades 9 to 12, or any combination of

those grades, as specified in the contract.

shall not be located in a school district that has a graduation

rate of over 75%, on average, for the most recent 3 school years

for which the data are available, as determined by the department.

(2) Subject to the limitations in this subsection and

subsection ~~(14),~~ (16), and subject to subsections (8) and (9), an

authorizing body may issue contracts under this subsection for 1 or

more schools of excellence that are cyber schools. ~~Until December~~

~~31, 2013, the combined total number of contracts that may be issued~~

~~by all statewide authorizing bodies under this subsection for~~

~~schools of excellence that are cyber schools shall not exceed 5.~~

Until December 31, 2014, the combined total number of contracts

that may be issued by all statewide authorizing bodies under this

subsection for schools of excellence that are cyber schools shall

not exceed 10. After December 31, 2014, the combined total number

of contracts issued by all statewide authorizing bodies under this

subsection for schools of excellence that are cyber schools shall

not exceed 15. The board of a school district, an intermediate

school board, the board of a community college that is not a

statewide authorizing body, or 2 or more public agencies acting

jointly as described in subsection (6)(e) may not act as the

authorizing body for more than 1 school of excellence that is a

cyber school. An authorizing body shall not issue a contract for a

school of excellence that is a cyber school unless the school of

excellence that is a cyber school meets all of the following

requirements:

(a) Is available for enrollment to all pupils in this state.

(b) Offers some configuration of or all of grades K to 12.

cyber school demonstrates experience in delivering a quality

education program that improves pupil academic achievement. In

determining whether this requirement is met, an authorizing body

shall refer to the standards for quality online learning

established by the national association of charter school

authorizers or other similar nationally recognized standards for

quality online learning.

(d) The enrollment in the school of excellence that is a cyber

school is limited to not more than 2,500 pupils in membership for

the first school year of operation of the school of excellence that

is a cyber school, not more than 5,000 pupils in membership for the

second school year of operation of the school of excellence that is

a cyber school, and not more than 10,000 pupils in membership for

the third and subsequent school years of operation of the school of

excellence that is a cyber school. As used in this subdivision,

"membership" means that term as defined in section 6 of the state

school aid act of 1979, MCL 388.1606.

(e) The school of excellence that is a cyber school offers

each pupil's family a computer and subsidizes the cost of internet

access.

(3) For a public school academy operating under part 6a that

meets the requirements of subsection (4), with the approval of its

authorizing body, the board of directors of the public school

academy may adopt a resolution choosing to convert the public

school academy to a school of excellence under this part. If the

board of directors of a public school academy that meets the

requirements of subsection (4) is issued a contract as a school of

excellence under this subsection, all the following apply:

(a) The public school academy shall cease to operate as a

public school academy under part 6a and shall operate as a school

of excellence upon the issuance of a contract or at another time as

determined by the authorizing body.

(b) The public school academy shall be considered to be a

school of excellence for all purposes upon the issuance of a

contract or at another time as determined by the authorizing body,

but shall retain its corporate identity.

a school of excellence operating under this part shall not impair

any agreement, mortgage, loan, bond, note or other instrument of

indebtedness, or any other agreement entered into by a public

school academy while it was operating under part 6a.

(d) The contract issued to the public school academy under

part 6a shall automatically terminate upon the issuance of a

contract or at another time as determined by the authorizing body.

(4) Subsection (3) applies to a public school academy that is

determined by the department to meet all of the following, as

applicable:

(a) If the public school academy operates only some or all of

grades K to 8, meets at least 1 of the following:

(i) On average over a 3-year period, at least 90% of the pupils

enrolled in the public school academy achieved a score of

proficient or better on the Michigan education assessment program

mathematics and reading tests or successor state assessment

program.

(ii) On average over a 3-year period, at least 70% of the

pupils enrolled in the public school academy achieved a score of

proficient or better on the Michigan education assessment program

mathematics and reading tests or successor state assessment program

and at least 50% of the pupils enrolled in the public school

academy met the income eligibility criteria for the federal free or

reduced-price lunch program, as determined under the Richard B.

Russell national school lunch act, 42 USC 1751 to 1769i, and

reported to the department.

(b) If the public school academy operates grades 9 to 12, at

least 80% of the school's pupils graduate from high school or are

determined by the department to be on track to graduate from high

school, the school has at least 80% average attendance, and the

school has at least an 80% postsecondary enrollment rate.

(5) A school of excellence shall be organized and administered

under the direction of a board of directors in accordance with this

part and with bylaws adopted by the board of directors. A school of

excellence shall be organized under the nonprofit corporation act,

1982 PA 162, MCL 450.2101 to 450.3192, except that a school of

excellence is not required to comply with sections 170 to 177 of

1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified

under the state or federal constitution, a school of excellence

shall not be organized by a church or other religious organization

and shall not have any organizational or contractual affiliation

with or constitute a church or other religious organization.

(6) ~~Any~~ Subject to subsections (8) and (9), any of the

following may act as an authorizing body to issue a contract to

organize and operate 1 or more schools of excellence under this

part:

(a) The board of a school district that operates grades K to

12. However, except as otherwise provided in this subdivision, the

board of a school district shall not issue a contract for a school

of excellence to operate outside the school district's boundaries,

and a school of excellence authorized by the board of a school

district shall not operate outside that school district's

boundaries. If the board of a school district issues a contract for

a school of excellence that is a cyber school, the contract may

authorize the school of excellence that is a cyber school to

operate outside that school district's boundaries.

(b) An intermediate school board. However, except as otherwise

provided in this subdivision, the board of an intermediate school

district shall not issue a contract for a school of excellence to

operate outside the intermediate school district's boundaries, and

a school of excellence authorized by the board of an intermediate

school district shall not operate outside that intermediate school

district's boundaries. If the board of an intermediate school

district issues a contract for a school of excellence that is a

cyber school, the contract may authorize the school of excellence

that is a cyber school to operate outside that intermediate school

district's boundaries.

provided in this subdivision, the board of a community college

shall not issue a contract for a school of excellence to operate

outside the boundaries of the community college district, and a

school of excellence authorized by the board of a community college

shall not operate outside the boundaries of the community college

district. If the board of a community college issues a contract for

a school of excellence that is a cyber school, the contract may

authorize the school of excellence that is a cyber school to

operate outside the boundaries of the community college district.

The board of a community college also may issue a contract for not

more than 1 school of excellence to operate on the grounds of an

active or closed federal military installation located outside the

boundaries of the community college district, or may operate a

school of excellence itself on the grounds of such a federal

military installation, if the federal military installation is not

located within the boundaries of any community college district and

the community college has previously offered courses on the grounds

of the federal military installation for at least 10 years.

(d) The governing board of a state public university.

(e) Two or more of the public agencies described in

subdivisions (a) to (d) exercising power, privilege, or authority

jointly pursuant to an interlocal agreement under the urban

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

124.512.

(7) To obtain a contract to organize and operate 1 or more

schools of excellence, 1 or more persons or an entity may apply to

an authorizing body described in this section. The application

shall include at least all of the following:

(a) Identification of the applicant for the contract.

(b) Subject to the resolution adopted by the authorizing body

under section 553(4), a list of the proposed members of the board

of directors of the school of excellence and a description of the

qualifications and method for appointment or election of members of

the board of directors.

include at least all of the following:

(i) The name of the proposed school of excellence.

(ii) The purposes for the school of excellence corporation.

This language shall provide that the school of excellence is

incorporated pursuant to this part and that the school of

excellence is a governmental entity.

(iii) The name of the authorizing body.

(iv) The proposed time when the articles of incorporation will

be effective.

(v) Other matters considered expedient to be in the articles

of incorporation.

(d) A copy of the proposed bylaws of the school of excellence.

(e) Documentation meeting the application requirements of the

authorizing body, including at least all of the following:

(i) The governance structure of the school of excellence.

(ii) A copy of the educational goals of the school of

excellence and the curricula to be offered and methods of pupil

assessment to be used by the school of excellence. The educational

goals shall include demonstrated improved pupil academic

achievement for all groups of pupils. To the extent applicable, the

progress of the pupils in the school of excellence shall be

assessed using at least a Michigan education assessment program

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

as applicable.

(iii) The admission policy and criteria to be maintained by the

school of excellence. The admission policy and criteria shall

comply with section 556. This part of the application also shall

include a description of how the applicant will provide to the

general public adequate notice that a school of excellence is being

created and adequate information on the admission policy, criteria,

and process.

(iv) Except for a school of excellence that is a cyber school,

the school calendar and school day schedule.

(v) The age or grade range of pupils to be enrolled.

(f) Descriptions of staff responsibilities and of the school

of excellence governance structure.

(g) For an application to the board of a school district, an

intermediate school board, or board of a community college,

identification of the school district and intermediate school

district in which the school of excellence will be located.

(h) An agreement that the school of excellence will comply

with the provisions of this part and, subject to the provisions of

this part, with all other state law applicable to public bodies and

with federal law applicable to public bodies or school districts.

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

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

applicant may request the authorizing body to issue a 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.

(j) The certificate of need issued by the state board under

subsection (8).

(8) An authorizing body shall not issue a contract to organize

and operate a school of excellence under this part unless the

application is accompanied by a certificate of need issued by the

state board under this subsection. The state board shall promulgate

rules to develop and implement a process for issuing a certificate

of need for a new school of excellence. The standards for issuing a

certificate of need shall include, but are not limited to, all of

the following:

(a) The resources available for the proposed school of

excellence.

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

excellence.

school of excellence.

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

schools of excellence or other public schools.

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

proposed school of excellence is proposed to be located.

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

excellence is proposed to be located.

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

proposed location of the proposed school of excellence 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 schools of

excellence and public school academies in the proximity of a

proposed location of the proposed school of excellence.

(i) The number of public school options already available in

the proximity of a proposed location of the proposed school of

excellence.

(j) The impact of the issuance of the contract on existing

public schools in the proximity of a proposed location of the

proposed school of excellence.

(9) An authorizing body shall not issue a new contract to

organize and operate a school of excellence under this part to an

existing public school academy that has had its contract with its

previous authorizing body revoked, terminated, or not renewed. The

board of directors of a public school academy described in this

subsection shall not apply for a contract that would violate this

subsection.

(10) ~~(8)~~ An authorizing body shall oversee, or shall contract

with an intermediate school district, community college, or state

public university to oversee, each school of excellence operating

under a contract issued by the authorizing body. The authorizing

body is responsible for overseeing compliance by the board of

directors with the contract and all applicable law. This subsection

does not relieve any other government entity of its enforcement or

supervisory responsibility.

(11) ~~(9)~~ If the superintendent of public instruction finds

that an authorizing body is not engaging in appropriate continuing

oversight of 1 or more schools of excellence operating under a

contract issued by the authorizing body, the superintendent of

public instruction may suspend the power of the authorizing body to

issue new contracts to organize and operate schools of excellence.

A contract issued by the authorizing body during the suspension is

void. A contract issued by the authorizing body before the

suspension is not affected by the suspension. In evaluating whether

an authorizing body is engaging in appropriate continuing oversight

of 1 or more schools of excellence operating under a contract

issued by the authorizing body, the superintendent of public

instruction shall take into account all of the following:

(a) The academic performance of the schools of excellence and

other public school academies authorized by the authorizing body,

including at least the ranking of those schools on the department's

"top-to-bottom" list and the measures already implemented at the

school to address student improvement.

(b) New or reauthorized contracts that are submitted by the

authorizing body to the superintendent of public instruction with

more than 2 deficiencies.

other public school academies authorized by the authorizing body,

including at least the number of those schools' websites that have

an inactive or outdated "transparency mitten" or do not have an

updated budget.

(d) Fiscal responsibility demonstrated by the schools of

excellence and other public school academies authorized by the

authorizing body, including at least the number of late audits,

audit findings, and deficits among those schools.

(e) Assurances and verifications, as defined by the

superintendent of public instruction.

(12) ~~(10)~~ An authorizing body shall not charge a fee, or

require reimbursement of expenses, for considering an application

for a contract, for issuing a contract, or for providing oversight

of a contract for a school of excellence in an amount that exceeds

a combined total of 3% of the total state school aid received by

the school of excellence in the school year in which the fees or

expenses are charged. The authorizing body may provide other

services for a school of excellence and charge a fee for those

services, but shall not require such an arrangement as a condition

to issuing the contract authorizing the school of excellence.

(13) ~~(11)~~ A school of excellence shall be presumed to be

legally organized if it has exercised the franchises and privileges

of a public school academy for at least 2 years.

(14) ~~(12)~~ A member of the board of directors of a school of

excellence 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.

(15) ~~(13)~~ A school of excellence that is a cyber school may

make available to other public schools for purchase any of the

course offerings that the cyber school offers to its own pupils.

~~(14) If the department determines that the combined total~~

~~statewide final audited membership for all pupils in membership in~~

~~schools of excellence that are cyber schools for the 2012-2013~~

~~state fiscal year exceeds a number equal to 1% of the combined~~

~~total statewide final audited membership for all pupils in~~

~~membership in public schools for the 2011-2012 state fiscal year,~~

~~then all of the following apply:~~

~~(a) An authorizing body may not issue a new contract for a new~~

~~school of excellence that is a cyber school to begin operations in~~

~~the 2013-2014 school year.~~

~~(b) A school of excellence that is a cyber school may not~~

~~enroll any new pupils in the school of excellence that is a cyber~~

~~school in the 2013-2014 school year.~~

(16) ~~(15)~~ Beginning July 1, 2013, if the department determines

that the combined total statewide final audited membership for all

pupils in membership in schools of excellence that are cyber

schools for a state fiscal year exceeds a number equal to 2% of the

combined total statewide final audited membership for all pupils in

membership in public schools for the 2011-2012 state fiscal year,

then all of the following apply:

(a) Subject to subdivision (c), an authorizing body may not

issue a new contract for a new school of excellence that is a cyber

school to begin operations in a school year that begins after that

determination is made.

(b) Subject to subdivision (c), a school of excellence that is

a cyber school may not enroll any new pupils in the school of

excellence that is a cyber school in a school year that begins

after that determination is made.

statewide final audited membership for all pupils in membership in

schools of excellence that are cyber schools for a state fiscal

year does not exceed a number equal to 2% of the combined total

statewide final audited membership for all pupils in membership in

public schools for the 2011-2012 state fiscal year, then

subdivisions (a) and (b) do not apply for a school year that begins

after that determination is made unless the department makes a new

determination that the membership limits under this subsection have

been exceeded.

(17) ~~(16)~~ For the purposes of ~~subsections (14) and (15), not~~

~~later than July 1, 2012, and~~ subsection (16), by not later than

July 1 of each year, ~~thereafter,~~ the department shall determine the

percentage of the combined total statewide final audited membership

for all pupils in membership in public schools that are pupils in

membership in schools of excellence that are cyber schools for the

state fiscal year that includes that July 1.

(18) ~~(17)~~ As used in this section:

(a) "Membership" means that term as defined in section 6 of

the state school aid act of 1979, MCL 388.1606.

(b) "Statewide authorizing body" means the governing board of

a state public university or the board of a federal tribally

controlled community college that is recognized under the tribally

controlled colleges and universities assistance act of 1978, 25 USC

1801 to 1852, and is determined by the department to meet the

requirements for accreditation by a recognized regional accrediting

body.

(19) ~~(18)~~ Not later than October 1, 2012, If a district, an

intermediate school district, a public school academy, or the

education achievement system offers online learning, the board or

board of directors of the district, intermediate school district,

or public school academy, or the education achievement system,

shall submit to the department a report that details the per-pupil

costs of operating the online learning. The report shall include,

on a per-pupil basis, at least all of the following costs:

(a) Textbooks, instructional materials, and supplies,

including electronic instructional material.

(b) Computer and other electronic equipment, including

internet and telephone access.

(d) Purchased courses and curricula.

(e) Fees associated with oversight and regulation.

(f) Travel costs associated with school activities and

testing.

(g) Facilities costs.

(h) Costs associated with special education.

~~(19) Not later than December 31, 2012, the department shall~~

~~issue a report to the legislature including the following:~~

~~(a) A review of the data submitted under subsection (14).~~

~~(b) A comparison with costs of substantially similar programs~~

~~in other states and relevant national research on the costs of~~

~~online learning.~~

~~(c) Any conclusions concerning factors or characteristics of~~

~~online learning programs that make a difference in the costs of~~

~~operating the programs.~~

(20) The board of directors of a school of excellence that is

a cyber school, or the board of a school district, intermediate

school district, or public school academy that operates an online

or other distance learning program, shall submit a monthly report

to the department, in the form and manner prescribed by the

department, that reports the number of pupils enrolled in the

school of excellence that is a cyber school, or in the online or

other distance learning program, during the immediately preceding

month.

(21) The board of directors of a school of excellence that is

a cyber school shall ensure that, when a pupil enrolls in the

school of excellence that is a cyber school, the pupil and his or

her parent or legal guardian are provided with a parent-student

orientation. If the pupil is at least age 18 or is an emancipated

minor, the orientation may be provided to just the pupil.

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. The resolution

shall also be written or amended as necessary to include a process

and standards for removal of a member of the board of directors.

The resolution shall provide that a member of the board of

directors may be removed only for gross neglect of duty or for

corrupt conduct in office, or for any other misfeasance,

malfeasance, or nonfeasance in office.

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

excellence shall contain at least all of the following:

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

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

educational goals shall include demonstrated improved pupil

academic achievement for all groups of pupils. To the extent

applicable, the pupil performance of a school of excellence shall

be assessed using at least a Michigan education assessment program

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

as applicable.

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

school of excellence's compliance with applicable law and its

performance in meeting its targeted educational objectives.

during the term of the contract.

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

contract.

(e) Procedures for revoking the contract and grounds for

revoking the contract, including at least the grounds listed in

section 561.

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

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

authorizing body may include a provision in the contract allowing

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

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

each configuration of age or grade levels and each site identified

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

directors.

(g) Requirements and procedures for financial audits. The

financial audits shall be conducted at least annually by a

certified public accountant in accordance with generally accepted

governmental auditing principles.

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

school of excellence board of directors, that the school of

excellence will comply with the contract and all applicable law.

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

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

15.330.

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

specifically identified family relationships between members of the

board of directors, individuals who have an ownership interest in

or who are officers or employees of an educational management

organization involved in the operation of the school of excellence,

and employees of the school of excellence. The contract shall

identify the specific prohibited relationships consistent with

applicable law.

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

excellence shall make information concerning its operation and

management available to the public and to the authorizing body in

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

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

excellence shall collect, maintain, and make available to the

public and the authorizing body, in accordance with applicable law

and the contract, at least all of the following information

concerning the operation and management of the school of

excellence:

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

the school of excellence.

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

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

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

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

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

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

as they were submitted to the board of directors.

(iii) Quarterly financial reports submitted to the authorizing

body.

(iv) A current list of teachers and school administrators

working at the school of excellence that includes their individual

salaries as submitted to the registry of educational personnel;

copies of the teaching or school administrator's certificates or

permits of current teaching and administrative staff; and evidence

of compliance with the criminal background and records checks and

unprofessional conduct check required under sections 1230, 1230a,

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

of excellence.

(v) Curriculum documents and materials given to the

authorizing body.

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

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

equipment leases.

(viii) Copies of any management contracts or services contracts

approved by the board of directors.

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

those relating to fire safety, environmental matters, asbestos

inspection, boiler inspection, and food service.

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

financial audit under subdivision (g).

(xi) Any other information specifically required under this

act.

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

may disapprove any agreement between the board of directors and an

educational management organization before the agreement is final

and valid. An authorizing body may disapprove an agreement

described in this subdivision only if the agreement is contrary to

contract or applicable law.

(n) A requirement that the board of directors shall

demonstrate all of the following to the satisfaction of the

authorizing body with regard to its pupil admission process:

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

to advertise its enrollment openings.

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

additional efforts to recruit pupils who are eligible for special

education programs and services or English as a second language

services to apply for admission:

(A) Reasonable efforts to advertise all enrollment openings to

organizations and media that regularly serve and advocate for

individuals with disabilities or children with limited English-

speaking ability within the boundaries of the intermediate school

district in which the school of excellence is located.

(B) Inclusion in all pupil recruitment materials of a

statement that appropriate special education services and English

as a second language services will be made available to pupils

attending the school as required by law.

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

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

enrollment times include some evening and weekend times.

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

any individual from being employed by the school of excellence in

more than 1 full-time position and simultaneously being compensated

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

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

shall report to the authorizing body the total compensation for

each individual working at the school of excellence.

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

law, including all of the following:

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

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

15.246.

(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. 553c. (1) Beginning with management agreements described

in this section that are entered into or renewed after the

effective date of this section, if the board of directors of a

school of excellence enters into or renews a management agreement

with an educational management organization to carry out the

operations of the school of excellence, both of the following

apply:

(a) The management agreement shall require the educational

management organization to provide to the board of directors at

least annually all the same information that a school district is

required to disclose under section 18(2) of the state school aid

act of 1979, MCL 388.1618, for the most recent school fiscal year

for which that information is available.

(b) Within 30 15 days after receiving the information under

subdivision (a), the board of directors shall make all of the

information it receives under subdivision (a) available through a

link on the school of excellence's website homepage, in a form and

manner prescribed by the department.

(2) Beginning with management agreements that are entered into

or renewed after the effective date of this subsection, if the

board of directors of a school of excellence enters into or renews

a management agreement with an educational management organization

to carry out the operations of the school of excellence, both of

the following apply:

(a) The management agreement shall not include the provision

of services that require competitive bidding under section 1267 or

the procurement of supplies, materials, and equipment that require

competitive bidding under section 1274.

(b) The school of excellence shall not also enter into an

agreement with that educational management organization for

material and labor described in section 1267 or for the procurement

of supplies, materials, and equipment described in section 1274

without first obtaining competitive bids as prescribed under those

sections, as applicable.

(3) ~~(2)~~ As used in this section:

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

enters into a management agreement with a school of excellence.

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

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

legal entity.

comprehensive educational, administrative, management, or

instructional services or staff to a school of excellence.

(d) "School fiscal year" means the period that begins July 1

and ends June 30.

Sec. 1311d. (1) A strict discipline academy shall be organized

and administered under the direction of a board of directors in

accordance with sections 1311b to 1311l and with bylaws adopted by

the board of directors. A strict discipline academy corporation

created to operate a strict discipline academy shall be organized

under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

450.3192, except that the strict discipline academy corporation is

not required to comply with sections 170 to 177 of 1931 PA 327, MCL

450.170 to 450.177. To the extent disqualified under the state or

federal constitution, a strict discipline academy shall not be

organized by a church or other religious organization and shall not

have any organizational or contractual affiliation with or

constitute a church or other religious organization.

(2) ~~Any~~ Subject to subsections (4) and (5), any of the

following may act as an authorizing body to issue a contract to

organize and operate 1 or more strict discipline academies under

sections 1311b to 1311l:

(a) The board of a school district that operates grades K to

12. However, the board of a school district shall not issue a

contract for a strict discipline academy to operate outside the

school district's boundaries, and a strict discipline academy

authorized by the board of a school district shall not operate

outside that school district's boundaries.

(b) An intermediate school board. However, the board of an

intermediate school district shall not issue a contract for a

strict discipline academy to operate outside the intermediate

school district's boundaries, and a strict discipline academy

authorized by the board of an intermediate school district shall

not operate outside that intermediate school district's boundaries.

otherwise provided in this subdivision, the board of a community

college shall not issue a contract for a strict discipline academy

to operate in a school district organized as a school district of

the first class, a strict discipline academy authorized by the

board of a community college shall not operate in a school district

organized as a school district of the first class, the board of a

community college shall not issue a contract for a strict

discipline academy to operate outside the boundaries of the

community college district, and a strict discipline academy

authorized by the board of a community college shall not operate

outside the boundaries of the community college district. The board

of a community college also may issue a contract for not more than

1 strict discipline academy to operate on the grounds of an active

or closed federal military installation located outside the

boundaries of the community college district, or may operate a

strict discipline academy itself on the grounds of such a federal

military installation, if the federal military installation is not

located within the boundaries of any community college district and

the community college has previously offered courses on the grounds

of the federal military installation for at least 10 years.

(d) The governing board of a state public university.

(3) To obtain a contract to organize and operate 1 or more

strict discipline academies, 1 or more persons or an entity may

apply to an authorizing body described in subsection (2). The

application shall include at least all of the following:

(a) Identification of the applicant for the contract.

(b) Subject to the resolution adopted by the authorizing body

under section 1311e, a list of the proposed members of the board of

directors of the strict discipline academy and a description of the

qualifications and method for appointment or election of members of

the board of directors.

include at least all of the following:

(i) The name of the proposed strict discipline academy.

(ii) The purposes for the strict discipline academy corporation

that will operate the strict discipline academy. This language

shall provide that the strict discipline academy is established

pursuant to sections 1311b to 1311l and that the strict discipline

academy corporation is a governmental entity.

(iii) The name of the authorizing body.

(iv) The proposed time when the articles of incorporation will

be effective.

(v) Other matters considered expedient to be in the articles

of incorporation.

(d) A copy of the proposed bylaws of the strict discipline

academy.

(e) Documentation meeting the application requirements of the

authorizing body, including at least all of the following:

(i) The governance structure of the strict discipline academy.

(ii) A copy of the educational goals of the strict discipline

academy and the curricula to be offered and methods of pupil

assessment to be used by the strict discipline academy. To the

extent applicable, the progress of the pupils in the strict

discipline academy shall be assessed using at least a Michigan

education assessment program (MEAP) test or an assessment

instrument developed under section 1279 for a state-endorsed high

school diploma.

(iii) The admission policy and criteria to be maintained by the

strict discipline academy. The admission policy and criteria shall

comply with section 1311g. This part of the application also shall

include a description of how the applicant will provide to the

general public adequate notice that a strict discipline academy is

being created and adequate information on the admission policy,

criteria, and process.

(iv) The school calendar and school day schedule.

(v) The age or grade range of pupils to be enrolled.

(vi) The type of pupils to be enrolled in the strict discipline

academy, as described in section 1311g(3) and (4).

(f) Descriptions of staff responsibilities and of the strict

discipline academy's governance structure.

(g) For an application to the board of a school district, an

intermediate school board, or board of a community college,

identification of the local and intermediate school districts in

which the strict discipline academy will be located.

(h) An agreement that the strict discipline academy will

comply with the provisions of sections 1311b to 1311l and, subject

to the provisions of these sections, with all other state law

applicable to public bodies and with federal law applicable to

public bodies or school districts.

(i) For a strict discipline academy authorized by a school

district, an assurance that employees of the strict discipline

academy will be covered by the collective bargaining agreements

that apply to other employees of the school district employed in

similar classifications in schools that are not strict discipline

academies.

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

plant in which the strict discipline academy will be located.

(k) The certificate of need issued by the state board under

subsection (4).

(4) An authorizing body shall not issue a contract to organize

and operate a strict discipline academy under this part unless the

application is accompanied by a certificate of need issued by the

state board under this subsection. The state board shall promulgate

rules to develop and implement a process for issuing a certificate

of need for a new strict discipline academy. The standards for

issuing a certificate of need shall include, but are not limited

to, all of the following:

(a) The resources available for the proposed strict discipline

academy.

(b) The population to be served by the proposed strict

discipline academy.

strict discipline academy.

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

discipline academies or other public schools.

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

proposed strict discipline academy is proposed to be located.

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

discipline academy is proposed to be located.

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

location of the proposed strict discipline 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 strict discipline

academies in the proximity of a proposed location of the proposed

strict discipline academy.

(i) The number of public school options already available in

the proximity of a proposed location of the proposed strict

discipline academy.

(j) The impact of the issuance of the contract on existing

public schools in the proximity of a proposed location of the

proposed strict discipline academy.

(5) An authorizing body shall not issue a new contract to

organize and operate a strict discipline academy under this part to

an existing public school academy that has had its contract with

its previous authorizing body revoked, terminated, or not renewed.

The board of directors of a public school academy described in this

subsection shall not apply for a contract that would violate this

subsection.

(6) ~~(4)~~ An authorizing body shall oversee, or shall contract

with an intermediate school district, community college, or state

public university to oversee, each strict discipline academy

operating under a contract issued by the authorizing body. The

oversight shall be sufficient to ensure that the authorizing body

can certify that the strict discipline academy is in compliance

with statute, rules, and the terms of the contract.

(7) ~~(5)~~ If the state board finds that an authorizing body is

not engaging in appropriate continuing oversight of 1 or more

strict discipline academies operating under a contract issued by

the authorizing body, the state board may suspend the power of the

authorizing body to issue new contracts to organize and operate

strict discipline academies. A contract issued by the authorizing

body during the suspension is void. A contract issued by the

authorizing body before the suspension is not affected by the

suspension. In evaluating whether an authorizing body is engaging

in appropriate continuing oversight of 1 or more strict discipline

academies operating under a contract issued by the authorizing

body, the superintendent of public instruction shall take into

account all of the following:

(a) The academic performance of the strict discipline

academies and other public school academies authorized by the

authorizing body, including at least the ranking of those schools

on the department's "top-to-bottom" list and the measures already

implemented at the school to address student improvement.

(b) New or reauthorized contracts that are submitted by the

authorizing body to the superintendent of public instruction with

more than 2 deficiencies.

academies and other public school academies authorized by the

authorizing body, including at least the number of those schools'

websites that have an inactive or outdated "transparency mitten" or

do not have an updated budget.

(d) Fiscal responsibility demonstrated by the strict

discipline academies and other public school academies authorized

by the authorizing body, including at least the number of late

audits, audit findings, and deficits among those schools.

(e) Assurances and verifications, as defined by the

superintendent of public instruction.

(8) ~~(6)~~ An authorizing body shall not charge a fee, or require

reimbursement of expenses, for considering an application for a

contract, for issuing a contract, or for providing oversight of a

contract for a strict discipline academy in an amount that exceeds

a combined total of 3% of the total state school aid received by

the strict discipline academy in the school year in which the fees

or expenses are charged. An authorizing body may provide other

services for a strict discipline academy and charge a fee for those

services, but shall not require such an arrangement as a condition

to issuing the contract authorizing the strict discipline academy.

(9) ~~(7)~~ A strict discipline academy shall be presumed to be

legally organized if it has exercised the franchises and privileges

of a strict discipline academy for at least 2 years.

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. The resolution shall also be written or amended

as necessary to include a process and standards for removal of a

member of the board of directors. The resolution shall provide that

a member of the board of directors may be removed only for gross

neglect of duty or for corrupt conduct in office, or for any other

misfeasance, malfeasance, or nonfeasance in office.

(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) test 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.

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.

(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.

(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.

(10) Beginning with management agreements that are entered

into or renewed after the effective date of this subsection, if the

board of directors of a strict discipline academy enters into or

renews a management agreement with an educational management

organization to carry out the operations of the strict discipline

academy, all of the following apply:

(a) The management agreement shall require the educational

management organization to provide to the board of directors at

least annually all of the same information that a school district

is required to disclose under section 18(2) of the state school aid

act of 1979, MCL 388.1618, for the most recent school fiscal year

for which that information is available.

(b) Within 15 days after receiving the information under

subdivision (a), the board of directors shall make all of the

information it receives under subdivision (a) available through a

link on the strict discipline academy's website homepage, in a form

and manner prescribed by the department.

of services that require competitive bidding under section 1267 or

the procurement of supplies, materials, and equipment that require

competitive bidding under section 1274.

(d) The strict discipline academy shall not also enter into an

agreement with that educational management organization for

material and labor described in section 1267 or for the procurement

of supplies, materials, and equipment described in section 1274

without first obtaining competitive bids as prescribed under those

sections, as applicable.

(11) As used in subsection (10):

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

enters into a management agreement with a strict discipline

academy.

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

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

legal entity.

comprehensive educational, administrative, management, or

instructional services or staff to a strict discipline academy.

(d) "School fiscal year" means the period that begins July 1

and ends June 30.

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Bill Text: MI SB1104 | 2013-2014 | 97th Legislature | Introduced

Michigan Senate Bill 1104 (Prior Session Legislation)

SENATE BILL No. 1104

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