Bill Text: MI HB5918 | 2013-2014 | 97th Legislature | Introduced

Michigan House Bill 5918 (Prior Session Legislation)

Introduced

Bill Title: Education; public school academies; requirements and duties of authorizing body; revise. Amends secs. 502, 522, 552 & 1311d of 1976 PA 451 (MCL 380.502 et seq.).

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2014-11-12 - Printed Bill Filed 11/07/2014 [HB5918 Detail]

Download: Michigan-2013-HB5918-Introduced.html

HOUSE BILL No. 5918

November 6, 2014, Introduced by Reps. Nathan, Roberts, Brunner, Irwin and Lipton and referred to the Committee on Education.

A bill to amend 1976 PA 451, entitled

"The revised school code,"

by amending sections 502, 522, 552, and 1311d (MCL 380.502,

380.522, 380.552, and 380.1311d), sections 502 and 522 as amended

by 2011 PA 277, section 552 as amended by 2012 PA 129, and section

1311d as added by 1999 PA 23.

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 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.

(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.

(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.

(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.

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

determines 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~~ shall suspend the power of the

authorizing body to issue new contracts to organize and operate

public school academies under this part, urban high school

academies under part 6c, schools of excellence under part 6e, and

strict discipline academies under sections 1311b to 1311m. A

contract issued by the authorizing body during the ~~suspension~~

period in which the authorizing body was not engaging in

appropriate continuing oversight, as determined by the

superintendent of public instruction, is void. A contract issued by

the authorizing body before ~~the suspension~~ that period is not

affected by the suspension.

(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. The authorizing body shall provide to the

public school academy board of directors an accounting of the fees

and reimbursements collected under this subsection specifying how

the specific funds collected from that public school academy were

expended, including an itemized list of use and purpose. 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.

(7) At least annually, an authorizing body shall compile and

submit to the superintendent of public instruction and the state

board a compliance report showing the status of each public school

academy operating under a contract issued by the authorizing body

regarding compliance with the statutory and contractual

requirements for operating the public school academy. If the

superintendent of public instruction determines, after a review of

this report, that the authorizing body has an active contract with

a public school academy that is not in compliance with these

requirements, the superintendent of public instruction shall order

the authorizing body to return all of the fee collected under

subsection (6) from that public school academy to the school aid

fund.

(8) If the superintendent of public instruction suspends the

power of an authorizing body to issue new contracts to organize and

operate public school academies under this part, urban high school

academies under part 6c, schools of excellence under part 6e, and

strict discipline academies under sections 1311b to 1311m, as

provided under subsection (5), the authorizing body may petition

the state board to reinstate its power to issue new contracts to

organize and operate public school academies under this part, urban

high school academies under part 6c, schools of excellence under

part 6e, and strict discipline academies under sections 1311b to

1311m. If the state board finds that the suspension by the

superintendent of public instruction is not arbitrary or

capricious, the state board shall establish benchmarks that the

authorizing body must meet, as determined by the state board, to

have its power reinstated to issue new contracts to organize and

operate public school academies under this part, urban high school

academies under part 6c, schools of excellence under part 6e, and

strict discipline academies under sections 1311b to 1311m.

(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.

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 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.

(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.

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

determines 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~~ shall suspend the power of

the authorizing body to issue new contracts to organize and operate

public school academies under part 6a, urban high school academies

under this part, schools of excellence under part 6e, and strict

discipline academies under sections 1311b to 1311m. A contract

issued by the authorizing body during the ~~suspension~~ period in

which the authorizing body was not engaging in appropriate

continuing oversight, as determined by the superintendent of public

instruction, is void. A contract issued by the authorizing body

before ~~the suspension~~ that period is not affected by the

suspension.

(7) At least annually, an authorizing body shall compile and

submit to the superintendent of public instruction and the state

board a compliance report showing the status of each urban high

school academy operating under a contract issued by the authorizing

body regarding compliance with the statutory and contractual

requirements for operating the urban high school academy. If the

superintendent of public instruction determines, after a review of

this report, that the authorizing body has an active contract with

an urban high school academy that is not in compliance with these

requirements, the superintendent of public instruction shall order

the authorizing body to return all of the fee collected under

subsection (6) from that urban high school academy to the school

aid fund.

(8) If the superintendent of public instruction suspends the

power of an authorizing body to issue new contracts to organize and

operate public school academies under part 6a, urban high school

academies under this part, schools of excellence under part 6e, and

strict discipline academies under sections 1311b to 1311m, as

provided under subsection (6), the authorizing body may petition

the state board to reinstate its power to issue new contracts to

organize and operate public school academies under part 6a, urban

high school academies under this part, schools of excellence under

part 6e, and strict discipline academies under sections 1311b to

1311m. If the state board finds that the suspension by the

superintendent of public instruction is not arbitrary or

capricious, the state board shall establish benchmarks that the

authorizing body must meet, as determined by the state board, to

have its power reinstated to issue new contracts to organize and

operate public school academies under part 6a, urban high school

academies under this part, schools of excellence under part 6e, and

strict discipline academies under sections 1311b to 1311m.

(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. The authorizing body shall provide to the

urban high school academy board of directors an accounting of the

fees and reimbursements collected under this subsection specifying

how the specific funds collected from that urban high school

academy were expended, including an itemized list of use and

purpose. 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. 552. (1) 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), 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 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.

(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.

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

determines 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~~ shall suspend the power of the

authorizing body to issue new contracts to organize and operate

public school academies under part 6a, urban high school academies

under part 6c, schools of excellence under this part, and strict

discipline academies under sections 1311b to 1311m. A contract

issued by the authorizing body during ~~the suspension~~ the period in

which the authorizing body was not engaging in appropriate

continuing oversight, as determined by the superintendent of public

instruction, is void. A contract issued by the authorizing body

before ~~the suspension~~ that period is not affected by the

suspension.

(10) If the superintendent of public instruction suspends the

power of an authorizing body to issue new contracts to organize and

operate public school academies under part 6a, urban high school

academies under part 6c, schools of excellence under this part, and

strict discipline academies under sections 1311b to 1311m, as

provided under subsection (9), the authorizing body may petition

the state board to reinstate its power to issue new contracts to

organize and operate public school academies under part 6a, urban

high school academies under part 6c, schools of excellence under

this part, and strict discipline academies under sections 1311b to

1311m. If the state board finds that the suspension by the

superintendent of public instruction is not arbitrary or

capricious, the state board shall establish benchmarks that the

authorizing body must meet, as determined by the state board, to

have its power reinstated to issue new contracts to organize and

operate public school academies under part 6a, urban high school

academies under part 6c, schools of excellence under this part, and

strict discipline academies under sections 1311b to 1311m.

(11) ~~(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 shall provide to the

school of excellence board of directors an accounting of the fees

and reimbursements collected under this subsection specifying how

the specific funds collected from that school of excellence were

expended, including an itemized list of use and purpose. 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.

(12) At least annually, an authorizing body shall compile and

submit to the superintendent of public instruction and the state

board a compliance report showing the status of each school of

excellence operating under a contract issued by the authorizing

body regarding compliance with the statutory and contractual

requirements for operating the school of excellence. If the

superintendent of public instruction determines, after a review of

this report, that the authorizing body has an active contract with

a school of excellence that is not in compliance with these

requirements, the superintendent of public instruction shall order

the authorizing body to return all of the fee collected under

subsection (11) from that school of excellence to the school aid

fund.

(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),~~

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

~~(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.~~

~~(c) Salaries and benefits for the online learning employees.~~

~~(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.~~

(19) ~~(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.

(20) ~~(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. 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 ~~1311~~l 1311m 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 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 ~~1311~~l:1311m:

(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 ~~1311~~l 1311m 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.~~the Michigan merit examination under section 1279g,

as applicable.

(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).~~1311g(3) to (5).

(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 ~~1311~~l 1311m 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.

(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.

(5) If the ~~state board finds~~ superintendent of public

instruction determines 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~~ shall suspend the power of the

authorizing body to issue new contracts to organize and operate

public school academies under part 6a, urban high school academies

under part 6c, schools of excellence under part 6e, and strict

discipline academies under sections 1311b to 1311m. A contract

issued by the authorizing body during the ~~suspension~~ period in

which the authorizing body was not engaging in appropriate

continuing oversight, as determined by the superintendent of public

instruction, is void. A contract issued by the authorizing body

before ~~the suspension~~ that period is not affected by the

suspension.

(6) If the superintendent of public instruction suspends the