Bill Text: MI HB4539 | 2015-2016 | 98th Legislature | Introduced

Michigan House Bill 4539 (Prior Session Legislation)

Introduced

Bill Title: Education; public school academies; certain requirements for charter schools and authorizing bodies upon termination or revocation of contract; provide for. Amends secs. 507, 528, 561 & 1311l of 1976 PA 451 (MCL 380.507 et seq.).

Spectrum: Partisan Bill (Democrat 21-0)

Status: (Introduced - Dead) 2015-05-05 - Printed Bill Filed 05/01/2015 [HB4539 Detail]

Download: Michigan-2015-HB4539-Introduced.html

HOUSE BILL No. 4539

April 30, 2015, Introduced by Reps. Brunner, Faris, Cochran, Liberati, Chang, Plawecki, Smiley, Geiss, Kivela, LaVoy, Irwin, Wittenberg, Guerra, Greig, Love, Singh, Clemente, Neeley, Derek Miller, Driskell and Sarah Roberts and referred to the Committee on Education.

A bill to amend 1976 PA 451, entitled

"The revised school code,"

by amending sections 507, 528, 561, and 1311l (MCL 380.507, 380.528,

380.561, and 380.1311l), sections 507, 528, and 561 as amended by

2011 PA 277 and section 1311l as added by 1999 PA 23.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 507. (1) An authorizing body that issues a contract for a

public school academy under this part shall do all of the

following:

(a) Ensure that the contract and the application for the

contract comply with the requirements of this part.

(b) Within 10 days after issuing the contract, submit to the

department a copy of the contract.

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

academy that it authorizes. The authorizing body shall ensure that

the board of directors includes representation from the local

community.

(d) Oversee each public school academy operating under a

contract issued by the authorizing body. The oversight shall be

sufficient to ensure that the board of directors is in compliance

with the terms of the contract and with applicable law.

(e) Develop and implement a process for holding a public

school academy accountable for meeting applicable academic

performance standards set forth in the contract and for

implementing corrective action for a public school academy that

does not meet those standards.

(f) Take necessary measures to ensure that the board of

directors of a public school academy operates independently of any

educational management company involved in the operations of the

public school academy.

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

by the public school academy is operated in a fair and open manner

and is in compliance with the contract and this part.

(h) Ensure that the board of directors of the public school

academy maintains and releases information as necessary to comply

with applicable law.

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

more other authorizing bodies to carry out any function of an

authorizing body under this act.

(3) The authorizing body for a public school academy is the

fiscal agent for the public school academy. A state school aid

payment for a public school academy shall be paid to the

authorizing body that is the fiscal agent for that public school

academy, and the authorizing body shall then forward the payment to

the public school academy. Within 30 days after a contract is

submitted to the department by an authorizing body under subsection

(1), the department shall issue a district code to the public

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

does not issue a district code within 30 days after a contract is

filed, the state treasurer shall assign a temporary district code

in order for the public school academy to receive funding under the

state school aid act of 1979.

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

authorizing body if the authorizing body determines that 1 or more

of the following have occurred:

(a) Failure of the public school academy to demonstrate

improved pupil academic achievement for all groups of pupils or

meet the educational goals set forth in the contract.

(b) Failure of the public school academy to comply with all

applicable law.

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 a public school academy that is an alternative

school serving a special student population, if the superintendent

of public instruction determines that a public school academy site

that has been operating for at least 4 years is ~~among~~ on the list

under section 1280c(1) of 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 public 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 public school

academy's contract to eliminate the public school academy's

authority to operate the existing age and grade levels at the site

and the public school academy shall cease operating the existing

age and grade levels at the site, effective at the end of the

current school year. If the public 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 public 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 public school academy, the

public school academy corporation, a pupil of the public school

academy, the parent or guardian of a pupil of the public school

academy, or any other person.

(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 public school academy in a

final attempt to improve student educational performance or to

avoid interruption of the educational process. An authorizing body

shall include a reconstituting provision in the contract that

identifies these corrective measures, including, but not limited

to, canceling a contract with an educational management

organization, if any, withdrawing approval of a contract under

section 506, or appointing a new board of directors or a trustee to

take over operation of the public school academy.

(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 public

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

held by the authorizing body that are attributable to the affected

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

fund. The state treasurer shall distribute funds to the public

school in which the pupils enroll after the revocation pursuant to

a methodology established by the department and the center for

educational performance and information.

(9) Not ~~more~~ later than 10 days after a public school

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

shall notify the superintendent of public instruction in writing of

the name of the public school academy whose contract has terminated

or been revoked and the date of contract termination or revocation.

(10) If a public 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 public 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 a public school academy shall hold a

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

approve the dissolution of the public 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 public school academy shall file a certificate of

dissolution with the director of the department of licensing and

regulatory affairs within 10 business days following board

approval.

dissolution under subdivision (b), the public 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 public 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 public

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 public 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 a public school academy fails

to take any necessary action under this section, the state

treasurer, or his or her designee, may suspend the public 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 public 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 public school academy debt secured by the property or interest

in property, whether real or personal, the public 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.

(h) The authorizing body for the public school academy shall

take custody of all student records of the public school academy,

shall maintain these records in the same manner as required by law

for a school district, and shall ensure that these records are

transferred to the school in which a pupil enrolls after the

termination or revocation in the manner prescribed by law.

(11) If an authorizing body revokes a public school academy

contract, not later than 90 days after the contract is revoked the

authorizing body shall submit a contract revocation report to the

superintendent of public instruction and shall post the contract

revocation report on its website. The contract revocation report

shall be submitted in the form and manner prescribed by the

superintendent of public instruction and shall include at least all

of the following:

(a) Identification of the name and location of the public

school academy, the effective date of the revocation, and the

reasons for the revocation.

(b) A description of the measures taken under subsection (8)

to ensure a smooth transition for the affected pupils.

subsection (10).

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.

(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~~ on the list under section 1280c(1) of 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~~ director of the

department of licensing and regulatory affairs 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.

(h) The authorizing body for the urban high school academy

shall take custody of all student records of the urban high school

academy, shall maintain these records in the same manner as

required by law for a school district, and shall ensure that these

records are transferred to the school in which a pupil enrolls

after the termination or revocation in the manner prescribed by

law.

(12) If an authorizing body revokes an urban high school

academy contract, not later than 90 days after the contract is

revoked the authorizing body shall submit a contract revocation

report to the superintendent of public instruction and shall post

the contract revocation report on its website. The contract

revocation report shall be submitted in the form and manner

prescribed by the superintendent of public instruction and shall

include at least all of the following:

(a) Identification of the name and location of the urban high

school academy, the effective date of the revocation, and the

reasons for the revocation.

(b) A description of the measures taken under subsection (8)

to ensure a smooth transition for the affected pupils.

subsection (11).

Sec. 561. (1) If an authorizing body issues a contract for a

school of excellence under this part, the authorizing body shall do

all of the following:

(a) Ensure that the contract and the application for the

contract comply with the requirements of this part.

(b) Within 10 days after issuing the contract, submit to the

department a copy of the contract.

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

excellence that it authorizes. The authorizing body shall ensure

that the board of directors includes representation from the local

community.

(d) Oversee the operations of each school of excellence

operating under a contract issued by the authorizing body. The

oversight shall be sufficient to ensure that the school of

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

applicable law. This subdivision does not relieve any other

governmental entity of its enforcement or supervisory

responsibility.

(e) Develop and implement a process for holding a school of

excellence board of directors accountable for meeting applicable

academic performance standards set forth in the contract and for

implementing corrective action for a school of excellence that does

not meet those standards.

(f) Take necessary measures to ensure that a school of

excellence board of directors operates independently of any

educational management organization involved in the operations of

the school of excellence.

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

by the school of excellence is operated in a fair and open manner

and is in compliance with the contract and this part.

(h) Ensure that the board of directors of the school of

excellence maintains and releases information as necessary to

comply with applicable law.

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

more authorizing bodies, as defined under part 6a, to carry out any

function of the authorizing body under subsection (1)(a) to (h).

(3) The authorizing body for a school of excellence is the

fiscal agent for the school of excellence. A state school aid

payment for a school of excellence shall be paid to the authorizing

body as the fiscal agent for that school of excellence, and the

authorizing body shall then forward the payment to the school of

excellence. Within 30 days after a contract is submitted to the

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

department shall issue a district code to the school of excellence

for which the contract was issued. If the department does not issue

a district code within 30 days after a contract is filed, the state

treasurer shall assign a temporary district code in order for the

school of excellence to receive funding under the state school aid

act of 1979.

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

authorizing body if the authorizing body determines that 1 or more

of the following have occurred:

(a) Failure of the school of excellence to demonstrate

improved pupil academic achievement for all groups of pupils or

meet the educational goals set forth in the contract.

(b) Failure of the school of excellence to comply with all

applicable law.

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 a school of excellence that is an alternative

school serving a special student population, if the superintendent

of public instruction determines that a school of excellence site