SENATE BILL No. 618

 

 

September 7, 2011, Introduced by Senator PAVLOV and referred to the Committee on Education.

 

 

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 501, 502, 502a, 503, 504, 505, 507, 522, 523,

 

524, 528, 551, 552, 553, 553a, 556, 559, 561, and 1231 (MCL

 

380.501, 380.502, 380.502a, 380.503, 380.504, 380.505, 380.507,

 

380.522, 380.523, 380.524, 380.528, 380.551, 380.552, 380.553,

 

380.553a, 380.556, 380.559, 380.561, and 380.1231), section 501 as

 

amended and section 528 as added by 2003 PA 179, sections 502, 503,

 

504, 507, 522, 523, and 524 as amended and sections 502a, 551, 552,

 

553, 553a, 556, 559, and 561 as added by 2009 PA 205, section 505

 

as amended by 1994 PA 416, and section 1231 as amended by 2002 PA

 

735, and by adding section 1231a; and to repeal acts and parts of

 

acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 


     Sec. 501. (1) A public school academy is a public school under

 

section 2 of article VIII of the state constitution of 1963, is a

 

school district for the purposes of section 11 of article IX of the

 

state constitution of 1963 and for the purposes of section 1225 and

 

section 1351a, and is subject to the leadership and general

 

supervision of the state board over all public education under

 

section 3 of article VIII of the state constitution of 1963. A

 

public school academy is a body corporate and is a governmental

 

agency. The powers granted to a public school academy under this

 

part constitute the performance of essential public purposes and

 

governmental functions of this state.

 

     (2) As used in this part:

 

     (a) "Authorizing body" means any of the following that issues

 

a contract as provided in this part:

 

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

 

12.

 

     (ii) An intermediate school board.

 

     (iii) The board of a community college.

 

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

 

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

 

subparagraphs (i) to (iv) 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.

 

     (b) "Certificated teacher" means an individual who holds a

 

valid teaching certificate issued by the superintendent of public

 

instruction under section 1531.

 


     (c) "Community college" means a community college organized

 

under the community college act of 1966, 1966 PA 331, MCL 389.1 to

 

389.195, or a federal tribally controlled community college that is

 

recognized under the tribally controlled community college

 

assistance act of 1978, Public Law 95-471, 92 Stat. 1325, and is

 

determined by the department to meet the requirements for

 

accreditation by a recognized regional accrediting body.

 

     (d) "Contract" means the executive act taken by an authorizing

 

body that evidences the authorization of a public school academy

 

and that establishes, subject to the constitutional powers of the

 

state board and applicable law, the written instrument executed by

 

an authorizing body conferring certain rights, franchises,

 

privileges, and obligations on a public school academy, as provided

 

by this part, and confirming the status of a public school academy

 

as a public school in this state.

 

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

 

corporation, labor organization, or any other association,

 

corporation, trust, or other legal entity.

 

     (f) "State public university" means a state university

 

described in section 4, 5, or 6 of article VIII of the state

 

constitution of 1963.

 

     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.

 

     (c) The board of a community college. However, except as

 

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 150.

 

Further, the total number of contracts issued by any 1 state public

 

university shall not exceed 50% of the maximum combined total

 

number that may be issued under this subdivision.

 

     (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(4), 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.

 

     (c) The proposed articles of incorporation, which shall

 

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) For a public school academy authorized by a school

 

district, an assurance that employees of the public school 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 public school academies.

 

     (i) (j) 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 oversight shall be

 

sufficient to ensure that the authorizing body can certify that the

 

public school academy is in compliance with statute, rules, and the

 

terms of the contract.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 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.

 

     (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.

 

     (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.

 

     (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. 502a. If a public school academy operating under this

 

part meets the requirements of part 6e, 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 part 6e. If a board

 

of directors of a public school academy that meets the requirements

 

of part 6e is issued a contract to operate as a school of

 

excellence under part 6e, all of the following apply:

 

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

 

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

 

of excellence under part 6e upon the issuance of the contract under

 

part 6e 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 the

 

contract under part 6e or at another time as determined by the

 

authorizing body, but shall retain its corporate identity.

 

     (c) The conversion of a public school academy to a school of

 

excellence operating under part 6e 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 this part.

 

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

 

this part shall automatically terminate upon the issuance of a

 

contract under part 6e or at another time as determined by the

 

authorizing body.

 

     (e) If the authorizing body of the public school academy is

 

the governing board of a state university, then all of the

 

following apply to issuance of a new contract for a public school

 

academy under this part after the conversion:

 

     (i) For a period of 12 months after the contract is issued

 

under part 6e, that authorizing body is the only authorizing body

 


that may issue a new contract for a new public school academy to

 

fill the availability under section 502(d) 502(2)(d) that is

 

created by the conversion of the public school academy to a school

 

of excellence.

 

     (ii) If the board of directors of the public school academy

 

that is issued a contract to fill the availability under section

 

502(d) 502(2)(d) that is created by the conversion chooses to enter

 

into an agreement with an educational management organization to

 

manage or operate the public school academy, the board of directors

 

may give preference to an educational management organization that

 

has previously operated a school that met the criteria described in

 

section 552(4).

 

     (iii) At the time the contract is issued, the public school

 

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

 

graduation rate of over 75.5%, on average, for the most recent 3

 

school years for which the data are available, as determined by the

 

department.

 

     Sec. 503. (1) An authorizing body is not required to issue a

 

contract to any person or entity. Public school academy contracts

 

shall be issued on a competitive basis taking into consideration

 

the resources available for the proposed public school academy, the

 

population to be served by the proposed public school academy, the

 

educational goals to be achieved by the proposed public school

 

academy, and the applicant's track record, if any, in operating

 

public school academies or other public schools. However, 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(2), 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.

 

     (2) 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 15% 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 public

 

school academy, the authorizing body shall submit to the

 

superintendent of public instruction a copy of the contract. and of

 


the application under section 502.

 

     (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 public school academy subject to its

 

jurisdiction.

 

     (5) 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.

 

     (c) A description of the process for amending the contract

 

during the term of the contract.

 

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

 

contract.

 

     (e) For a public school academy authorized by a school

 

district, an agreement that employees of the public school 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 public school academies.

 


     (e) (f) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 507.

 

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

 

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

 

time the contract is issued for a public school academy under

 

section 502a, the public school academy shall not be located in a

 

school district that has a graduation rate of over 75.5%, on

 

average, for the most recent 3 school years for which the data are

 

available, as determined by the department.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) (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.

 

     (h) (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

 

increases in academic achievement for all groups of pupils as

 

measured by assessments and other objective criteria as a

 

significant 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.

 

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

 

law, including all of the following:

 

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

 


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

 

15.246.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.

 

     (7) 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.

 

     (8) 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. Property occupied

 

by a public school academy and used exclusively for educational

 

purposes is exempt from real and personal property taxes. 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.

 

     (9) 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.

 

     (10) 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. 504. (1) A public school academy may be located in all or

 

part of an existing public school building. A public school academy

 

shall not operate at a site other than the single site or sites

 

requested for the configuration of grades age or grade levels that

 

will use the site or sites, as specified in the application

 

required under section 502 and in the contract. In a contract, an

 

authorizing body may permit a public school academy to operate the

 

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

 

if this is included in the contract, a public school academy may

 

operate the same configuration of age or grade levels at more than

 


1 site.

 

     (2) A public school academy shall not charge tuition and shall

 

not discriminate in its pupil admissions policies or practices on

 

the basis of intellectual or athletic ability, measures of

 

achievement or aptitude, status as a student with a disability, or

 

any other basis that would be illegal if used by a school district.

 

However, a public school academy may limit admission to pupils who

 

are within a particular range of age or grade level or on any other

 

basis that would be legal if used by a school district and may give

 

enrollment priority as provided in subsection (4).

 

     (3) Except for a foreign exchange student who is not a United

 

States citizen, a public school academy shall not enroll a pupil

 

who is not a resident of this state. Enrollment For a public school

 

academy authorized by a school district or intermediate school

 

district, enrollment in the public school academy may be open to

 

all individuals who reside in this state who meet the admission

 

policy and shall be open to all pupils who reside within the

 

geographic boundaries , if any, of the that authorizing body as

 

described in section 502(2)(a) to (c) who meet the admission

 

policy. , except that admission to a public school academy

 

authorized by the board of a community college to operate, or

 

operated by the board of a community college, on the grounds of a

 

federal military installation, as described in section 502(2)(c),

 

shall be open to all pupils who reside in the county in which the

 

federal military installation is located. For a public school

 

academy authorized by a community college or a state public

 

university, enrollment shall be open to all pupils who reside in

 


this state who meet the admission policy. Subject to subsection

 

(4), if there are more applications to enroll in the public school

 

academy than there are spaces available, pupils shall be selected

 

to enroll using a random selection process. A public school academy

 

shall allow any pupil who was enrolled in the public school academy

 

in the immediately preceding school year to enroll in the public

 

school academy in the appropriate grade unless the appropriate

 

grade is not offered at that public school academy.

 

     (4) A public school academy may give enrollment priority to 1

 

or more of the following:

 

     (a) A sibling of a pupil enrolled in the public school

 

academy.

 

     (b) A pupil who transfers to the public school academy from

 

another public school academy pursuant to a matriculation agreement

 

between the public school academies academy and other public school

 

that provides for this enrollment priority, if all of the following

 

requirements are met:

 

     (i) Each public school academy that enters into the

 

matriculation agreement remains a separate and independent public

 

school. academy.

 

     (ii) The public school academy that gives the enrollment

 

priority selects at least 5% of its pupils for enrollment using a

 

random selection process.

 

     (iii) The matriculation agreement allows any pupil who was

 

enrolled at any time during elementary school in a public school

 

academy that is party to the matriculation agreement and who was

 

not expelled from the public school academy to enroll in the public

 


school academy giving enrollment priority under the matriculation

 

agreement.

 

     (c) A child of a person who is employed by or at the public

 

school academy or who is on the board of directors of the public

 

school academy. As used in this subdivision, "child" includes an

 

adopted child or a legal ward.

 

     (5) A public school academy may include any grade up to grade

 

12 or any configuration of those grades, including kindergarten and

 

early childhood education, as specified in its contract. If

 

specified in its contract, a public school academy may also operate

 

an adult basic education program, adult high school completion

 

program, or general education development testing preparation

 

program. The authorizing body may approve amendment of a contract

 

with respect to ages of pupils or grades offered.

 

     Sec. 505. (1) Except as otherwise provided by law, a public

 

school academy shall use certificated teachers according to state

 

board rule.

 

     (2) A public school academy operated authorized by a state

 

public university or community college may use noncertificated

 

individuals to teach as follows:

 

     (a) If the public school academy is operated authorized by a

 

state public university, the public school academy may use as a

 

classroom teacher in any grade a faculty member who is employed

 

full-time by the state public university and who has been granted

 

institutional tenure, or has been designated as being on tenure

 

track, by the state public university.

 

     (b) For a public school academy operated authorized by a

 


community college, the public school academy may use as a classroom

 

teacher a full-time member of the community college faculty who has

 

at least 5 years' experience at that community college in teaching

 

the subject matter that he or she is teaching at the public school

 

academy.

 

     (c) In any other situation in which a school district is

 

permitted under this act to use noncertificated teachers.

 

     (3) A public school academy may develop and implement new

 

teaching techniques or methods or significant revisions to known

 

teaching techniques or methods, and shall report those to the

 

authorizing body and state board to be made available to the

 

public. A public school academy may use any instructional technique

 

or delivery method that may be used by a school district.

 

     Sec. 507. (1) 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, which shall then forward the payment to the public school

 

academy. An authorizing body has the responsibility to oversee a

 

public school academy's compliance with the contract and all

 

applicable law. 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 has occurred:

 

     (a) Failure of the public school academy to abide by and meet

 

the educational goals set forth in the contract.

 

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

 

applicable law.

 


     (c) Failure of the public school academy to meet generally

 

accepted public sector accounting principles.

 

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

 

specified in the contract.

 

     (2) 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 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, and 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, 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

 

revoke the public school academy's contract and the public school

 

academy shall be closed, effective at the end of the current school

 

year.

 

     (3) Except for a contract issued by a school district pursuant

 

to a vote by the school electors on a ballot question under section

 

503(2), the decision of an authorizing body to revoke a contract

 

under this section is solely within the discretion of the

 

authorizing body, is final, and is not subject to review by a court

 

or any state agency.

 


     (4) An authorizing body that revokes a contract under this

 

section is not liable for that action to the public school academy,

 

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.An authorizing body that issues a

 

contract for a public school academy under this part shall do all

 

of the following:

 

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

 

contract comply with the requirements of this part.

 

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

 

department a copy of the contract.

 

     (c) Establish the method of selection, length of term, and

 

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

 

academy that it authorizes. The authorizing body shall ensure that

 

the board of directors includes representation from the local

 

community.

 

     (d) Oversee each public school academy operating under a

 

contract issued by the authorizing body. The oversight shall be

 

sufficient to ensure that the board of directors is in compliance

 

with the terms of the contract and with applicable law.

 

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

 

school academy accountable for meeting applicable academic

 

performance standards set forth in the contract and for

 

implementing corrective action for a public school academy that

 

does not meet those standards.

 

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

 

directors of a public school academy operates independently of any

 


educational management company involved in the operations of the

 

public school academy.

 

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

 

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

 

and is in compliance with the contract and this part.

 

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

 

academy maintains and releases information as necessary to comply

 

with applicable law.

 

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

 

more other authorizing bodies to carry out any function of an

 

authorizing body under this act.

 

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

 

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

 

payment for a public school academy shall be paid to the

 

authorizing body that is the fiscal agent for that public school

 

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

 

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

 

submitted to the department by an authorizing body under subsection

 

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

 

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

 

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

 

filed, the state treasurer shall assign a temporary district code

 

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

 

state school aid act of 1979.

 

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

 

authorizing body if the authorizing body determines that 1 or more

 

of the following have occurred:

 


     (a) Failure of the public school academy to demonstrate

 

improved pupil academic achievement for all groups of pupils or

 

meet the educational goals set forth in the contract.

 

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

 

applicable law.

 

     (c) Failure of the public school academy to meet generally

 

accepted public sector accounting principles and demonstrate sound

 

fiscal stewardship.

 

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

 

specified in the contract.

 

     (5) 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 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 than 10 days after a public school academy's

 

contract terminates or is revoked, the authorizing body shall

 

notify the superintendent of public instruction in writing of the

 

name of the public school academy whose contract has terminated or

 

been revoked and the date of contract termination or revocation.

 

     Sec. 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. Subject

 

to section 524(1), not more than 15 contracts may be issued under

 

this part. A contract issued under this part shall be for an urban

 

high school academy that will be located in a county with a

 

population of at least 1,000,000. An urban high school academy

 

authorized under this part shall not operate outside the boundaries

 

of a county with a population of at least 1,000,000.

 

     (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

 

terms.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.

 

     (c) The proposed articles of incorporation, which shall

 

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 an assessment instrument

 

developed under section 1279.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 state board 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

 

state board by unanimous vote 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.

 

     (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.

 

     (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. 523. (1) An authorizing body is not required to issue a

 

contract to any entity. Urban high school academy contracts shall

 

be issued on a competitive basis taking into consideration the

 

resources available for the proposed urban high school academy, the

 

population to be served by the proposed urban high school academy,

 

and the educational goals to be achieved by the proposed urban high

 

school academy. In evaluating if an applicant is qualified, the

 

authorizing body shall examine the proposed performance standards,

 

proposed academic program, financial viability of the applicant,

 

and the ability of the proposed board of directors to meet the

 


contract goals and objectives. An authorizing body shall give

 

priority to applicants that demonstrate all of the following:

 

     (a) The proposed school will operate at least all of grades 9

 

through 12 within 3 5 years after beginning operation.

 

     (b) The proposed school will occupy a building or buildings

 

that are newly constructed or renovated after January 1, 2003.

 

     (c) The proposed school has a stated goal of increasing high

 

school graduation rates.

 

     (d) The proposed school has received commitments for financial

 

and educational support from the entity applying for the contract.

 

     (e) The entity that submits the application for a contract has

 

net assets of at least $50,000,000.00.

 

     (2) A contract issued to organize and administer an urban high

 

school academy shall contain at least all of the following:

 

     (a) The educational goals the urban high school academy is to

 

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

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of an urban high school academy

 

shall be assessed using at least a Michigan education assessment

 

program (MEAP) test or the Michigan merit examination developed

 

under section 1279g, as applicable.

 

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

 

urban high school academy's compliance with applicable law and its

 

performance in meeting its targeted educational objectives.

 

     (c) A description of the process for amending the contract

 

during the term of the contract. An authorizing body may approve

 


amendment of the contract with respect to any provision contained

 

in the contract.

 

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

 

urban high school academy board of directors, that the urban high

 

school academy will comply with the contract and all applicable

 

law.

 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract.

 

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

 

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

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by an

 

independent certified public accountant in accordance with

 

generally accepted governmental auditing principles.

 

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

 

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

 

15.330.

 

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

 

specifically identified family relationships between members of the

 

board of directors, individuals who have an ownership interest in

 

or who are officers or employees of an educational management

 

company involved in the operation of the urban high school academy,

 

and employees of the urban high school academy. The contract shall

 

identify the specific prohibited relationships consistent with

 

applicable law.

 

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

 

high school academy shall make information concerning its operation

 


and management available to the public and to the authorizing body

 

in the same manner as is required by state law for school

 

districts.

 

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

 

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

 

the public and the authorizing body, in accordance with applicable

 

law and the contract, at least all of the following information

 

concerning the operation and management of the urban high school

 

academy:

 

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

 

the urban high school academy.

 

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

 

directors of the urban high school academy, including name,

 

address, and term of office; copies of policies approved by the

 

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

 

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

 

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

 

more as they were submitted to the board of directors.

 

     (iii) Quarterly financial reports submitted to the authorizing

 

body.

 

     (iv) A current list of teachers working at the urban high

 

school academy that includes their individual salaries as submitted

 

to the registry of educational personnel; copies of the teaching

 

certificates or permits of current teaching staff; and evidence of

 

compliance with the criminal background and records checks and

 

unprofessional conduct check required under sections 1230, 1230a,

 

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

 


high school academy.

 

     (v) Curriculum documents and materials given to the

 

authorizing body.

 

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

 

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

 

equipment leases.

 

     (viii) Copies of any management contracts or services contracts

 

approved by the board of directors.

 

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

 

those relating to fire safety, environmental matters, asbestos

 

inspection, boiler inspection, and food service.

 

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

 

financial audit under subdivision (g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (l) A requirement that the authorizing body must review and may

 

disapprove any agreement between the board of directors and an

 

educational management company before the agreement is final and

 

valid. An authorizing body may disapprove an agreement described in

 

this subdivision only if the agreement is contrary to the contract

 

or applicable law.

 

     (m) A requirement that the board of directors shall

 

demonstrate all of the following to the satisfaction of the

 

authorizing body with regard to its pupil admission process:

 

     (i) That the urban high school academy has made a reasonable

 

effort to advertise its enrollment openings. in a newspaper of

 

general circulation in the intermediate school district in which

 


the urban high school academy is located.

 

     (ii) That the urban high school academy has made the following

 

additional efforts to recruit pupils who are eligible for special

 

education programs and services to apply for admission:

 

     (A) Reasonable efforts to advertise all enrollment openings to

 

organizations and media that regularly serve and advocate for

 

individuals with disabilities within the boundaries of the

 

intermediate school district in which the urban high school academy

 

is located.

 

     (B) Inclusion in all pupil recruitment materials of a

 

statement that appropriate special education services will be made

 

available to pupils attending the school as required by law.

 

     (iii) That the open enrollment period for the urban high school

 

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

 

enrollment times include some evening and weekend times.

 

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

 

any individual from being employed by the urban high school academy

 

in more than 1 full-time position and simultaneously being

 

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

 

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

 

shall report to the authorizing body the total compensation for

 

each individual working at the urban high school academy.

 

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

 

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

 

The standards for renewal shall include student growth increases in

 

academic achievement for all groups of pupils as measured by

 

assessments and other objective criteria as a significant the most

 


important factor in the decision of whether or not to renew the

 

contract.

 

     (3) An urban high school academy shall comply with all

 

applicable law, including all of the following:

 

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

 

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

 

15.246.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (e) 1978 PA 566, MCL 15.181 to 15.185.

 

     (f) 1968 PA 317, MCL 15.321 to 15.330.

 

     (g) The uniform budgeting and accounting act, 1968 PA 2, MCL

 

141.421 to 141.440a.

 

     (h) The revised municipal finance act, 2001 PA 34, MCL

 

141.2101 to 141.2821.

 

     (i) The federal no child left behind act of 2001, Public Law

 

107-110, 115 Stat. 1425.

 

     (j) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, 1274, and

 

1280.

 

     (4) An urban high school academy and its incorporators, board

 

members, officers, employees, and volunteers have governmental

 

immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An

 

authorizing body and its board members, officers, and employees are

 

immune from civil liability, both personally and professionally,

 

for any acts or omissions in authorizing or oversight of an urban

 

high school academy if the authorizing body or the person acted or

 

reasonably believed he or she acted within the authorizing body's

 


or the person's scope of authority.

 

     (5) An urban high school academy is exempt from all taxation

 

on its earnings and property. Property occupied by an urban high

 

school academy and used exclusively for educational purposes is

 

exempt from real and personal property taxes. Instruments of

 

conveyance to or from an urban high school academy are exempt from

 

all taxation, including taxes imposed by 1966 PA 134, MCL 207.501

 

to 207.513. An urban high school academy may not levy ad valorem

 

property taxes or any other tax for any purpose.

 

     (6) An urban high school academy may acquire by purchase,

 

gift, devise, lease, sublease, installment purchase agreement, land

 

contract, option, or any other means, hold, and own in its own name

 

buildings and other property for school purposes, and interests

 

therein, and other real and personal property, including, but not

 

limited to, interests in property subject to mortgages, security

 

interests, or other liens, necessary or convenient to fulfill its

 

purposes. For the purposes of condemnation, an urban high school

 

academy may proceed under the uniform condemnation procedures act,

 

1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of that

 

act, MCL 213.56 to 213.59, or other applicable statutes, but only

 

with the express, written permission of the authorizing body in

 

each instance of condemnation and only after just compensation has

 

been determined and paid.

 

     Sec. 524. (1) An urban high school academy may be located in

 

all or part of an existing public school building. Except as

 

otherwise provided in this subsection, an urban high school academy

 

shall not operate at a site other than the single site requested

 


for the configuration of grades that will use the site, as

 

specified in the contract. However, an authorizing body may include

 

a provision in the contract allowing an urban high school academy

 

to operate the same configuration of grades at more than 1 site. If

 

an urban high school academy operates the same configuration of

 

grades at more than 1 site, each of those sites shall be considered

 

to be operated under a separate contract, and the operation shall

 

be equivalent to the issuance of a contract, for the purposes of

 

the limitation in section 522(2) on the number of contracts that

 

may be issued under this part. For the purposes of this subsection,

 

if an urban high school academy operates classes at more than 1

 

location, the urban high school academy shall be considered to be

 

operating at a single site if all of the locations are within a 1-

 

mile radius of the urban high school academy's central

 

administrative office and if the total number of pupils enrolled in

 

any particular grade at all of the locations does not exceed 135.

 

     (2) An urban high school academy shall not charge tuition.

 

Except as otherwise provided in this section, an urban high school

 

academy shall not discriminate in its pupil admissions policies or

 

practices on the basis of intellectual or athletic ability,

 

measures of achievement or aptitude, status as a handicapped

 

person, or any other basis that would be illegal if used by a

 

school district. However, an urban high school academy may limit

 

admission to pupils who are within a particular range of age or

 

grade level or on any other basis that would be legal if used by a

 

school district and may give enrollment priority as provided in

 

subsection (4).

 


     (3) Except for a foreign exchange student who is not a United

 

States citizen, an urban high school academy shall not enroll a

 

pupil who is not a resident of this state. Enrollment in an urban

 

high school academy shall be open to all pupils who reside in this

 

state who meet the admission policy. Subject to subsection (4), if

 

there are more applications to enroll in the urban high school

 

academy than there are spaces available, pupils shall be selected

 

to attend using a random selection process. An urban high school

 

academy shall allow any pupil who was enrolled in the urban high

 

school academy in the immediately preceding school year to enroll

 

in the urban high school academy in the appropriate grade unless

 

the appropriate grade is not offered at that urban high school

 

academy.

 

     (4) An urban high school academy may give enrollment priority

 

to 1 or more of the following:

 

     (a) A sibling of a pupil enrolled in the urban high school

 

academy.

 

     (b) A child of a person who is employed by or at the urban

 

high school academy or who is on the board of directors of the

 

urban high school academy. As used in this subdivision, "child"

 

includes an adopted child or a legal ward.

 

     (5) Subject to the terms of the contract authorizing the urban

 

high school academy, an urban high school academy shall include at

 

least grades 9 through 12 within 5 years after beginning operations

 

and may include other grades or any configuration of those grades,

 

including kindergarten and early childhood education, as specified

 

in its contract. If specified in its contract, an urban high school

 


academy may also operate an adult basic education program, adult

 

high school completion program, or general education development

 

testing preparation program.

 

     Sec. 528. (1) An authorizing body that issues a contract for

 

an urban high school academy under this part shall do all of the

 

following:

 

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

 

contract comply with the requirements of this part.

 

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

 

department a copy of the contract.

 

     (c) Adopt a resolution establishing the method of selection,

 

length of term, and number of members of the board of directors of

 

each urban high school academy that it authorizes.

 

     (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 abide by and

 

demonstrate improved pupil academic achievement for all groups of

 

pupils or meet the educational goals set forth in the contract.

 

     (b) Failure of the urban high school academy to comply with

 

all applicable law.

 

     (c) Failure of the urban high school academy to meet generally

 

accepted public sector accounting principles and demonstrate sound

 

fiscal stewardship.

 

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

 

specified in the contract.

 

     (5) 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) (5) The decision of an authorizing body to issue, reissue,

 

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, reissue, or reconstitute

 

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) (6) Before Except as otherwise provided in subsection (5),

 

before an authorizing body revokes a contract, the authorizing body

 

shall may consider and take corrective measures to avoid

 

revocation. An authorizing body shall 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 525 for an agreement described in section 1320, 527, or

 

appointing a new board of directors or a trustee to take over

 

operation of the urban high school academy.

 

     (8) (7) 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 received 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) (8) 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) (9) 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) (10) If an urban high school academy's contract

 

terminates or is revoked, title to all real and personal property,

 

interest in real or personal property, and other assets owned by

 

the urban high school academy shall revert to the state. This

 

property shall be distributed in accordance with the following:

 

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

 

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

 

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

 

approve the dissolution of the urban high school academy

 

corporation, all in accordance with chapter 8 of the nonprofit

 

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

 

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

 

dissolution with the department of consumer and industry services

 

bureau of commercial services within 10 business days following

 

board approval.

 

     (c) Simultaneously with the filing of the certificate of

 

dissolution under subdivision (b), the urban high school academy

 

board of directors shall provide a copy of the board of directors'

 

plan of distribution of assets to the state treasurer for approval.

 

Within 30 days, the state treasurer, or his or her designee, shall

 

review and approve the board of directors' plan of distribution of

 

assets. If the proposed plan of distribution of assets is not

 

approved within 30 days, the state treasurer, or his or her

 


designee, shall provide the board of directors with an acceptable

 

plan of distribution of assets.

 

     (d) The state treasurer, or his or her designee, shall monitor

 

the urban high school academy's winding up of the dissolved

 

corporation in accordance with the plan of distribution of assets

 

approved or provided under subdivision (c).

 

     (e) As part of the plan of distribution of assets, the urban

 

high school academy board of directors shall designate the director

 

of the department of techonology, 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. 551. (1) A school of excellence is a public school under

 

section 2 of article VIII of the state constitution of 1963, is a

 

school district for the purposes of section 11 of article IX of the

 

state constitution of 1963 and for the purposes of section 1225 and

 

section 1351a, and is subject to the leadership and general

 

supervision of the state board over all public education under

 

section 3 of article VIII of the state constitution of 1963. A

 

school of excellence is a body corporate and is a governmental

 

agency. The powers granted to a school of excellence under this

 

part constitute the performance of essential public purposes and

 

governmental functions of this state.

 

     (2) As used in this part:

 

     (a) "Authorizing body" means any of the following that issues

 

a contract as provided in this part:

 

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

 

12.

 

     (ii) An intermediate school board.

 

     (iii) The board of a community college.

 

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

 

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

 

subparagraphs (i) to (iv) 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.

 

     (b) "Certificated teacher" means an individual who holds a

 

valid teaching certificate issued by the superintendent of public

 

instruction under section 1531.

 

     (c) "Community college" means a community college organized

 

under the community college act of 1966, 1966 PA 331, MCL 389.1 to

 

389.195, or a federal tribally controlled community college that is

 

recognized under the tribally controlled community college

 

assistance act of 1978, Public Law 95-471, and is determined by the

 

department to meet the requirements for accreditation by a

 

recognized regional accrediting body.

 

     (d) "Contract" means the executive act taken by an authorizing

 

body that evidences the authorization of a school of excellence and

 

that establishes, subject to the constitutional powers of the state

 

board and applicable law, the written instrument executed by an

 

authorizing body conferring certain rights, franchises, privileges,

 

and obligations on a school of excellence, as provided by this

 

part, and confirming the status of a school of excellence as a

 

public school in this state.

 

     (e) "Cyber school" means a school of excellence established

 

under this part that has been issued a contract to be organized and

 

operated as a cyber school under section 552(2) and that provides

 

full-time instruction to pupils through online learning or

 

otherwise on a computer or other technology, which instruction and

 

learning may be remote from a school facility.

 

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

 

enters into an agreement with the governing board of a public

 


school to provide comprehensive educational, administrative,

 

management, or instructional services or staff to the public

 

school.

 

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

 

corporation, labor organization, or any other association,

 

corporation, trust, or other legal entity.

 

     (h) "State public university" means a state university

 

described in section 4, 5, or 6 of article VIII of the state

 

constitution of 1963.

 

     Sec. 552. (1) Except as otherwise provided in subsections (2)

 

and (3), not more than a combined total of 10 contracts to organize

 

and operate a school of excellence may be issued by all authorizing

 

bodies under this subsection. All of the following apply to a

 

contract issued 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) A contract may not be issued under this subsection after

 

January 1, 2015.

 

     (c) 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.

 

     (d) A school of excellence authorized under this subsection

 

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) A combined total of 2 contracts may be issued by all

 

authorizing bodies under this subsection for schools of excellence

 

that are cyber schools and that meet all of the following

 

additional requirements:

 

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

 

who were previously enrolled in a public school.

 

     (b) Offer all of grades K to 12.

 

     (c) The entity applying for the school of excellence that is a

 

cyber school demonstrates experience in serving urban and at-risk

 

student populations through an educational model involving a

 

significant cyber component.

 

     (d) Has an initial enrollment in the school of excellence that

 

is a cyber school that does not exceed 400 pupils.

 

     (e) In the second and subsequent years of operation under the

 

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

 

enrollment to exceed 400 pupils by adding 1 pupil for each pupil

 

who becomes enrolled in the school of excellence who is identified

 

as a dropout in the Michigan student data system maintained by the

 

center for educational performance and information. The school of

 

excellence that is a cyber school shall annually account for the

 

number of pupils it enrolls who are identified as a dropout in the

 

Michigan student data system and report that information to the

 

department, in a form and manner determined by the superintendent

 

of public instruction. The school of excellence shall maintain its

 

ratio of pupils who are identified as a dropout. Maximum enrollment

 


at a school of excellence that is a cyber school shall not exceed

 

1,000 pupils.

 

     (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.

 

     (c) The conversion of a public school academy under part 6a to

 

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, 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.

 

     (b) An intermediate school board. However, 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.

 

     (c) The board of a community college. 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. 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.

 

     (c) The proposed articles of incorporation, which shall

 


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) For a school of excellence authorized by a school

 

district, an assurance that employees of the school of excellence

 

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 schools of excellence.

 

     (i) (j) 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 oversight shall be

 

sufficient to ensure that the authorizing body can certify that the

 

school of excellence is in compliance with statute, rules, and the

 

terms of the contract.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 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.

 

     (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. All of the following apply to this fee:

 


     (a) The 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 schools of

 

excellence.

 

     (iii) Training for school of excellence applicants,

 

administrators, and boards of directors.

 

     (iv) Technical assistance to schools of excellence.

 

     (v) Academic support to schools of excellence or to pupils of

 

schools of excellence.

 

     (vi) Evaluation of school of excellence performance.

 

     (vii) Training of teachers.

 

     (viii) Other purposes that assist the school of excellence or

 

traditional public schools in achieving improved academic

 

performance.

 

     (b) 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.

 

     (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.

 

     (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.

 

     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 15% 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. and of the

 

application under section 552.

 

     (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.

 

     (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.

 

     (c) A description of the process for amending the contract

 

during the term of the contract.

 

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

 

contract.

 

     (e) For a school of excellence authorized by a school

 

district, an agreement that employees of the school of excellence

 


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 schools of excellence.

 

     (e) (f) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 561.

 

     (f) (g) 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) (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.

 

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

 

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

 

15.330.

 

     (j) (k) 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) (l) 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) (m) 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 (h).(g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (m) (n) 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) (o) 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) (p) 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) (q) 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.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.

 

     (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. Property occupied by a school of excellence

 

and used exclusively for educational purposes is exempt from real

 

and personal property taxes. 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. 553a. (1) An authorizing body may issue a contract to

 

establish a school of excellence that is a cyber school. A cyber

 

school shall provide full-time instruction to pupils through online

 

learning or otherwise on a computer or other technology, and this

 

instruction and learning may occur remote from a school facility.

 

     (2) A contract for a school of excellence that is a cyber

 

school shall include all of the provisions required under section

 

553 and all of the following:

 

     (a) A requirement that a teacher who holds appropriate

 


certification according to state board rule will be responsible for

 

all of the following for each course in which a pupil is enrolled:

 

     (i) Improving learning by planned instruction.

 

     (ii) Diagnosing the pupil's learning needs.

 

     (iii) Assessing learning, assigning grades, and determining

 

advancement.

 

     (iv) Reporting outcomes to administrators and parents or legal

 

guardians.

 

     (b) A requirement that the cyber school will make educational

 

services available to pupils for a minimum of at least 1,098 hours

 

during a school year and will ensure that each pupil participates

 

in the educational program for at least 1,098 hours during a school

 

year.

 

     (3) Notwithstanding any other provision of this act or any

 

rule, if a school of excellence that is a cyber school is in

 

compliance with the requirements of subsection (2)(a) regarding a

 

certificated teacher, any other adult assisting with the oversight

 

of a pupil during the pupil's participation in the cyber school's

 

education program is not required to be a certificated teacher or

 

an employee of the school.

 

     (4) Notwithstanding any rule to the contrary, a cyber school

 

is not required to comply with any rule that would require a

 

pupil's physical presence or attendance in a classroom.

 

     (5) At the end of a cyber school's second full school year of

 

operations, the authorizing body of a school of excellence that is

 

a cyber school shall submit to the superintendent of public

 

instruction and the legislature, in the form and manner prescribed

 


by the superintendent of public instruction, a report detailing the

 

operation of the cyber school, providing statistics of pupil

 

participation and academic performance, and making recommendations

 

for any further statutory or rule change related to cyber schools

 

and online learning in this state.

 

     Sec. 556. (1) A school of excellence may be located in all or

 

part of an existing public school building. A school of excellence,

 

other than a cyber school operated under section 553a, shall not

 

operate at a site other than the single site or sites requested for

 

the configuration of grades age or grade levels that will use the

 

site or sites, as specified in the application required under

 

section 552 and in the contract. In a contract, an authorizing body

 

may permit a school of excellence to operate the same configuration

 

of age or grade levels at more than site, and if this is included

 

in the contract, a school of excellence may operate the same

 

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

 

     (2) A school of excellence shall not charge tuition and shall

 

not discriminate in its pupil admissions policies or practices on

 

the basis of intellectual or athletic ability, measures of

 

achievement or aptitude, status as a student with a disability, or

 

any other basis that would be illegal if used by a school district.

 

However, a school of excellence may limit admission to pupils who

 

are within a particular range of age or grade level or on any other

 

basis that would be legal if used by a school district and may give

 

enrollment priority as provided in subsection (4).

 

     (3) Except for a foreign exchange student who is not a United

 

States citizen, a school of excellence shall not enroll a pupil who

 


is not a resident of this state. Enrollment in the school of

 

excellence may be open to all individuals who reside In this state

 

who meet the admission policy and shall be open to all pupils who

 

reside within the geographic boundaries , if any, of the that

 

authorizing body as described in section 552(6)(a) to (c) who meet

 

the admission policy. , except that admission to a school of

 

excellence authorized by the board of a community college to

 

operate, or operated by the board of a community college, on the

 

grounds of a federal military installation, as described in section

 

552(6)(c), shall be open to all pupils who reside in the county in

 

which the federal military installation is located. For a school of

 

excellence authorized by a community college or a state public

 

university, enrollment shall be open to all pupils who reside in

 

this state who meet the admission policy. If there are more

 

applications to enroll in the school of excellence than there are

 

spaces available, pupils shall be selected to attend using a random

 

selection process. A school of excellence shall allow any pupil who

 

was enrolled in the school of excellence in the immediately

 

preceding school year to enroll in the school of excellence in the

 

appropriate grade unless the appropriate grade is not offered at

 

that school of excellence.

 

     (4) A school of excellence may give enrollment priority to 1

 

or more of the following:

 

     (a) A sibling of a pupil enrolled in the public school of

 

excellence.

 

     (b) A pupil who transfers to the school of excellence from

 

another public school pursuant to a matriculation agreement between

 


the school of excellence and another public school that provides

 

for this enrollment priority, if all of the following requirements

 

are met:

 

     (i) Each school of excellence or other public school that

 

enters into the matriculation agreement remains a separate and

 

independent public school.

 

     (ii) The public school of excellence that gives the enrollment

 

priority selects at least 5% of its pupils for enrollment using a

 

random selection process.

 

     (iii) The matriculation agreement allows any pupil who was

 

enrolled at any time during elementary school in a school of

 

excellence public school that is party to the matriculation

 

agreement and who was not expelled from the school of excellence

 

public school to enroll in the public school of excellence giving

 

enrollment priority under the matriculation agreement.

 

     (c) A child of a person who is employed by or at the school of

 

excellence or who is on the board of directors of the school of

 

excellence. As used in this subdivision, "child" includes an

 

adopted child or a legal ward.

 

     (5) Subject to subsection (6), a school of excellence may

 

include any grade up to grade 12 or any configuration of those

 

grades, including kindergarten and early childhood education, as

 

specified in its contract. If specified in its contract, a school

 

of excellence may also operate an adult basic education program,

 

adult high school completion program, or general education

 

development testing preparation program. The authorizing body may

 

approve amendment of a contract with respect to ages of pupils or

 


grades offered.

 

     (6) In addition to any other grade levels it operates, a

 

school of excellence shall work toward operating all of grades 9 to

 

12 within 6 years after it begins operations, unless a

 

matriculation agreement has been reached with another public school

 

that provides grades 9 to 12.

 

     (7) If a school of excellence is a cyber school and its

 

authorizing body is a school district or intermediate school

 

district, the school of excellence shall give enrollment priority

 

to pupils who reside in the school district or intermediate school

 

district that is the authorizing body.

 

     Sec. 559. (1) Except as otherwise provided by law, and except

 

as otherwise provided under section 553a for a cyber school, a

 

school of excellence shall use certificated teachers according to

 

state board rule.

 

     (2) A school of excellence operated authorized by a state

 

public university or community college may use noncertificated

 

individuals to teach as follows:

 

     (a) If the school of excellence is operated authorized by a

 

state public university, the school of excellence may use as a

 

classroom teacher in any grade a faculty member who is employed

 

full-time by the state public university and who has been granted

 

institutional tenure, or has been designated as being on tenure

 

track, by the state public university.

 

     (b) For a school of excellence operated authorized by a

 

community college, the school of excellence may use as a classroom

 

teacher a full-time member of the community college faculty who has

 


at least 5 years' experience at that community college in teaching

 

the subject matter that he or she is teaching at the school of

 

excellence.

 

     (c) In any other situation in which a school district is

 

permitted under this act to use noncertificated teachers.

 

     (3) A school of excellence may develop and implement new

 

teaching techniques or methods or significant revisions to known

 

teaching techniques or methods, and shall report those to the

 

authorizing body and state board to be made available to the

 

public. A school of excellence may use any instructional technique

 

or delivery method that may be used by a school district.

 

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

 

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

 

all of the following:

 

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

 

contract comply with the requirements of this part.

 

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

 

department a copy of the contract.

 

     (c) Establish the method of selection, length of term, and

 

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

 

excellence that it authorizes. The authorizing body shall ensure

 

that the board of directors includes representation from the local

 

community.

 

     (d) Oversee the operations of each school of excellence

 

operating under a contract issued by the authorizing body. The

 

oversight shall be sufficient to ensure that the school of

 

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

 


applicable law. This subdivision does not relieve any other

 

governmental entity of its enforcement or supervisory

 

responsibility.

 

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

 

excellence board of directors accountable for meeting applicable

 

academic performance standards set forth in the contract and for

 

implementing corrective action for a school of excellence that does

 

not meet those standards.

 

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

 

excellence board of directors operates independently of any

 

educational management organization involved in the operations of

 

the school of excellence.

 

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

 

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

 

and is in compliance with the contract and this part.

 

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

 

excellence maintains and releases information as necessary to

 

comply with applicable law.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

authorizing body shall then forward the payment to the school of

 

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

 


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

 

department shall issue a district code to the school of excellence

 

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

 

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

 

treasurer shall assign a temporary district code in order for the

 

school of excellence to receive funding under the state school aid

 

act of 1979.

 

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

 

authorizing body if the authorizing body determines that 1 or more

 

of the following have occurred:

 

     (a) Failure of the school of excellence to abide by and

 

demonstrate improved pupil academic achievement for all groups of

 

pupils or meet the educational goals set forth in the contract.

 

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

 

applicable law.

 

     (c) Failure of the school of excellence to meet generally

 

accepted public sector accounting principles and demonstrate sound

 

fiscal stewardship.

 

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

 

specified in the contract.

 

     (5) 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

 

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, and 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 school of excellence's authorizing body. If an authorizing body

 

receives notice from the superintendent of public instruction under

 

this subsection, the authorizing body shall revoke amend the school

 

of excellence's contract to eliminate the school of excellence's

 

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

 

and the school of excellence shall be closed, cease operating the

 

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

 

the current school year. If the school of excellence operates at

 

only 1 site or is a cyber school, and the authorizing body receives

 

notice from the superintendent of public instruction under this

 

subsection, the authorizing body shall revoke the school of

 

excellence's contract, effective at the end of the current school

 

year.

 

     (6) Except for a contract issued by a school district pursuant

 

to a vote by the school electors on a ballot question under section

 

553(2), the decision of the authorizing body to issue, reissue, not

 

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

 

or revoke a contract under this section, is solely within the

 

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

 

review by a court or any other state agency. If the authorizing

 

body issues, does not issue, reissue, or reconstitute or

 

reconstitutes a contract under this part, or terminates or revokes

 


a contract under this section, the authorizing body is not liable

 

for that action to the school of excellence, the school of

 

excellence corporation, a pupil of the school of excellence, the

 

parent or guardian of a pupil of the school of excellence, or any

 

other person.

 

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

 

authorizing body revokes a contract, the authorizing body shall may

 

consider and take corrective measures to avoid revocation. The

 

authorizing body may reconstitute the school of excellence in a

 

final attempt to improve student educational performance or to

 

avoid interruption of the educational process. The authorizing body

 

shall include a reconstituting provision in the contract that

 

identifies these corrective measures, including, but not limited

 

to, canceling a contract with an educational management

 

organization, if any, withdrawing approval to contract under

 

section 557, 560, or appointing a new board of directors or a

 

trustee to take over operation of the school of excellence.

 

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

 

authorizing body shall work with a school district or another

 

public school, or with a combination of these entities, to ensure a

 

smooth transition for the affected pupils. If the revocation occurs

 

during the school year, the authorizing body, as the fiscal agent

 

for the school of excellence under this part, shall return any

 

school aid funds received 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 than 10 days after a school of excellence's

 

contract terminates or is revoked, the authorizing body shall

 

notify the superintendent of public instruction in writing of the

 

name of the school of excellence whose contract has terminated or

 

been revoked and the date of contract termination or revocation.

 

     (10) If a school of excellence's contract terminates or is

 

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

 

or personal property, and other assets owned by the school of

 

excellence shall revert to the state. This property shall be

 

distributed in accordance with the following:

 

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

 

the board of directors of a school of excellence shall hold a

 

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

 

approve the dissolution of the school of excellence corporation,

 

all in accordance with chapter 8 of the nonprofit corporation act,

 

1982 PA 162, MCL 450.2801 to 450.2864.

 

     (b) The school of excellence shall file a certificate of

 

dissolution with the department of energy, labor, and economic

 

growth bureau of commercial services within 10 business days

 

following board approval.

 

     (c) Simultaneously with the filing of the certificate of

 

dissolution under subdivision (b), the school of excellence board

 

of directors shall provide a copy of the board of directors' plan

 

of distribution of assets to the state treasurer for approval.

 


Within 30 days, the state treasurer, or his or her designee, shall

 

review and approve the board of directors' plan of distribution of

 

assets. If the proposed plan of distribution of assets is not

 

approved within 30 days, the state treasurer, or his or her

 

designee, shall provide the board of directors with an acceptable

 

plan of distribution of assets.

 

     (d) The state treasurer, or his or her designee, shall monitor

 

the school of excellence's winding up of the dissolved corporation

 

in accordance with the plan of distribution of assets approved or

 

provided under subdivision (c).

 

     (e) As part of the plan of distribution of assets, the school

 

of excellence board of directors shall designate the director of

 

the department of technology, management, and budget, or his or her

 

designee, to dispose of all real property of the school of

 

excellence corporation in accordance with the directives developed

 

for disposition of surplus land and facilities under section 251 of

 

the management and budget act, 1984 PA 431, MCL 18.1251.

 

     (f) If the board of directors of a school of excellence fails

 

to take any necessary action under this section, the state

 

treasurer, or his or her designee, may suspend the school of

 

excellence board of directors and appoint a trustee to carry out

 

the board's plan of distribution of assets. Upon appointment, the

 

trustee shall have all the rights, powers, and privileges under law

 

that the school of excellence board of directors had before being

 

suspended.

 

     (g) Following the sale of the real or personal property or

 

interests in the real or personal property, and after payment of

 


any school of excellence debt secured by the property or interest

 

in property, whether real or personal, the school of excellence

 

board of directors, or a trustee appointed under this section,

 

shall forward any remaining money to the state treasurer. Following

 

receipt, the state treasurer, or his or her designee, shall deposit

 

this remaining money in the state school aid fund.

 

     Sec. 1231. (1) The Except as otherwise provided in section

 

1231a, the board of a school district shall hire and contract with

 

qualified teachers. Contracts with teachers shall be in writing and

 

signed on behalf of the school district by a majority of the board,

 

by the president and secretary of the board, or by the

 

superintendent of schools or an authorized representative of the

 

board. The contracts shall specify the wages agreed upon.

 

     (2) A teacher's contract shall be filed with the secretary of

 

the board and a duplicate copy of the contract shall be furnished

 

to the teacher.

 

     (3) Except as otherwise provided under this act, a contract

 

with a teacher is not valid unless the person holds a valid

 

teaching certificate at the time the contractual period begins. A

 

contract shall terminate if the certificate expires by limitation

 

and is not renewed immediately or if it is suspended or revoked by

 

proper legal authority.

 

     (4) The board of a school district, after a teacher has been

 

employed at least 2 consecutive years by the board, may enter into

 

a continuing contract with a certificated teacher.

 

     (5) As used in this section, "teacher" does not include a

 

substitute teacher.

 


     Sec. 1231a. (1) The board of a school district may enter into

 

a contract with a person or entity to furnish qualified teachers to

 

the school district as necessary to carry out the operations of the

 

school district.

 

     (2) A contract entered into under this section shall include

 

the following provisions:

 

     (a) Assurance that the person or entity will furnish the

 

school district with qualified teachers in accordance with this act

 

and rules promulgated under this act.

 

     (b) Assurance that the person or entity will not furnish to

 

the school district any teacher who, if employed directly by the

 

school district, would be ineligible for employment by the school

 

district as a teacher under this act.

 

     (c) A description of the level of compensation and fringe

 

benefits to be provided to employees of the person or entity who

 

are assigned to the school district as teachers.

 

     (d) A description of the type and amounts of insurance

 

coverage to be secured and maintained by the person or entity and

 

the school district under the contract.

 

     (e) Assurance that the person or entity, before assigning an

 

individual to serve as a teacher in the school, will comply with

 

sections 1230 and 1230a with respect to that individual to the same

 

extent as if the person or entity were a school district employing

 

the individual as a teacher and will provide the board of the

 

school district with the criminal history record information

 

obtained under section 1230 and with the results of the criminal

 

records check under section 1230a. The department of state police

 


shall provide information to a person or entity requesting

 

information under this subdivision to the same extent as if the

 

person or entity were a school district making the request under

 

section 1230 or 1230a.

 

     (3) A school district that contracts with a person or entity

 

to furnish teachers under this section may purchase liability

 

insurance to indemnify and protect the school district and the

 

person or entity against losses or liabilities incurred by the

 

school district and person or entity arising out of any claim for

 

personal injury or property damage caused by the school district or

 

its officers, employees, or agents. A school district may pay

 

premiums for the insurance out of its operating funds. The

 

existence of any policy of insurance indemnifying the school

 

district and person or entity against liability for damages is not

 

a waiver of any defense otherwise available to the school district

 

in the defense of the claim.

 

     (4) As used in this section, "entity" means a partnership,

 

nonprofit or business corporation, labor organization, limited

 

liability company, or any other association, corporation, trust, or

 

other legal entity.

 

     Enacting section 1. Section 501a of the revised school code,

 

1976 PA 451, MCL 380.501a, is repealed.

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 96th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 620.                                   

 

            

 


     (b) Senate Bill No. 619.                                      

 

           

 

     (c) Senate Bill No. 624.                                        

 

            

 

     (d) Senate Bill No. 621.