SENATE BILL No. 1358

 

 

November 8, 2012, 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 3, 4, 5, 6, 1260, and 1280c (MCL 380.3, 380.4,

 

380.5, 380.6, 380.1260, and 380.1280c), section 3 as amended by

 

2007 PA 45, sections 4 and 5 as amended by 2011 PA 232, section 6

 

as amended by 2009 PA 205, section 1260 as amended by 1995 PA 289,

 

and section 1280c as amended by 2011 PA 8, and by adding sections

 

1260a, 1701b, and 1701c and part 7c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) "Achievement authority" means that term as defined

 

in section 771.

 

     (2) "Achievement school" means a public school operated,

 

managed, authorized, established, or overseen by the achievement

 


authority, including, but not limited to, a public school under the

 

control of the achievement authority under section 1280c.

 

     (3) (1) "Area" as used in the phrase "area vocational-

 

technical education program" or "area career and technical

 

education program" means the geographical territory, within the

 

boundaries of a K to 12 school district, an intermediate school

 

district, or a community college district, that is designated by

 

the department as the service area for the operation of an area

 

vocational-technical education program.

 

     (4) (2) "Area vocational-technical education program", "area

 

career and technical education program", or "career and technical

 

education program" means a program of organized, systematic

 

instruction designed to prepare the following persons for useful

 

employment in recognized occupations:

 

     (a) Persons participating in career and technical education

 

readiness activities that lead to enrollment in a career and

 

technical education program in high school.

 

     (b) Persons enrolled in high school in a school district,

 

intermediate school district, public school academy, or nonpublic

 

school.

 

     (c) Persons who have completed or left high school and who are

 

available for full-time study in preparation for entering the labor

 

market.

 

     (d) Persons who have entered the labor market and who need

 

training or retraining to achieve stability or advancement in

 

employment.

 

     (5) (3) "Board" or "school board" means the governing body of

 


a local school district unless clearly otherwise stated.

 

     (6) (4) "Boarding school" means a place accepting for board,

 

care, and instruction 5 or more children under 16 years of age.

 

However, boarding school does not include a residential public

 

school established under part 6f.

 

     (7) (5) "Constituent district" means a local school district

 

the territory of which is entirely within and is an integral part

 

of an intermediate school district.

 

     Sec. 4. (1) "Education achievement system" means the

 

achievement authority and all achievement schools.

 

     (2) (1) "Educational media center" means a program operated by

 

an intermediate school district and approved by the state board

 

department that provides services to local school districts or

 

constituent districts under section 671.

 

     (3) (2) "Intermediate school board" means the board of an

 

intermediate school district.

 

     (4) (3) "Intermediate school district" means a corporate body

 

established under part 7.

 

     (5) (4) "Intermediate school district election" means an

 

election called by an intermediate school board and held on the

 

date of the regular school elections of constituent districts or on

 

a date determined by the intermediate school board under section

 

642c of the Michigan election law, MCL 168.642c.

 

     (6) (5) "Intermediate school elector" means a person who is a

 

school elector of a constituent district and who is registered in

 

the city or township in which the person resides.

 

     (7) (6) "Intermediate superintendent" means the superintendent

 


of an intermediate school district.

 

     Sec. 5. (1) "Local act school district" or "special act school

 

district" means a school district governed by a special or local

 

act or chapter of a local act. "Local school district" and "local

 

school district board" as used in article 3 include a local act

 

school district and a local act school district board.

 

     (2) "Membership" means the number of full-time equivalent

 

pupils in a public school as determined by the number of pupils

 

registered for attendance plus pupils received by transfer and

 

minus pupils lost as defined by rules promulgated by the state

 

board.superintendent of public instruction.

 

     (3) "Michigan election law" means the Michigan election law,

 

1954 PA 116, MCL 168.1 to 168.992.

 

     (4) "Nonpublic school" means a private, denominational, or

 

parochial school.

 

     (5) "Objectives" means measurable pupil academic skills and

 

knowledge.

 

     (6) "Public school" means a public elementary or secondary

 

educational entity or agency that is established under this act,

 

has as its primary mission the teaching and learning of academic

 

and vocational-technical skills and knowledge, and is operated by a

 

school district, local act school district, special act school

 

district, intermediate school district, school of excellence,

 

public school academy corporation, strict discipline academy

 

corporation, urban high school academy corporation, or by the

 

department or state board. Public school also includes a laboratory

 

school or other elementary or secondary school that is controlled

 


and operated by a state public university described in section 4,

 

5, or 6 of article VIII of the state constitution of 1963. Public

 

school also includes an achievement school.

 

     (7) "Public school academy" means a public school academy

 

established under part 6a and, except as used in part 6a, also

 

includes an urban high school academy established under part 6c, a

 

school of excellence established under part 6e, and a strict

 

discipline academy established under sections 1311b to 1311m.

 

     (8) "Pupil membership count day" of a school district, public

 

school academy, or the education achievement system means that term

 

as defined in section 6 of the state school aid act of 1979, MCL

 

388.1606.

 

     (9) "Regular school election" or "regular election" means the

 

election held in a school district, local act school district, or

 

intermediate school district to elect a school board member in the

 

regular course of the terms of that office and held on the school

 

district's regular election date as determined under section 642c

 

of the Michigan election law, MCL 168.642c.

 

     (10) "Reorganized intermediate school district" means an

 

intermediate school district formed by consolidation or annexation

 

of 2 or more intermediate school districts under sections 701 and

 

702.

 

     (11) "Rule" means a rule promulgated under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     Sec. 6. (1) "School district" or "local school district" means

 

a general powers school district organized under this act,

 

regardless of previous classification, or a school district of the

 


first class.

 

     (2) "School district filing official" means the school

 

district election coordinator as defined in section 4 of the

 

Michigan election law, MCL 168.4, or an authorized agent of the

 

school district election coordinator.

 

     (3) "School elector" means a person qualified as an elector

 

under section 492 of the Michigan election law, MCL 168.492, and

 

resident of the school district or intermediate school district on

 

or before the thirtieth day before the next ensuing regular or

 

special school election.

 

     (4) "School month" means a 4-week period of 5 days each unless

 

otherwise specified in the teacher's contract.

 

     (5) "School of excellence" means a school of excellence

 

established under part 6e.

 

     (6) "Special education building and equipment" means a

 

structure or portion of a structure or personal property accepted,

 

leased, purchased, or otherwise acquired, prepared, or used for

 

special education programs and services.

 

     (7) "Special education personnel" means persons engaged in and

 

having professional responsibility for students with a disability

 

in special education programs and services including, but not

 

limited to, teachers, aides, school social workers, diagnostic

 

personnel, physical therapists, occupational therapists,

 

audiologists, teachers of speech and language, instructional media-

 

curriculum specialists, mobility specialists, teacher consultants,

 

supervisors, and directors.

 

     (8) "Special education programs and services" means

 


educational and training services designed for students with a

 

disability and operated by local school districts, local act school

 

districts, intermediate school districts, the Michigan schools for

 

the deaf and blind, the department of community health, the

 

department of human services, or a combination of these, and

 

ancillary professional services for students with a disability

 

rendered by agencies approved by the state board. The programs

 

shall include vocational training, but need not include academic

 

programs of college or university level.

 

     (9) "Special school election" or "special election" means a

 

school district election to fill a vacancy on the school board or

 

submit a ballot question to the school electors that is held on a

 

regular election date established under section 641 of the Michigan

 

election law, MCL 168.641.

 

     (10) "State approved nonpublic school" means a nonpublic

 

school that complies with 1921 PA 302, MCL 388.551 to 388.558.

 

     (11) "State board" means the state board of education unless

 

clearly otherwise stated.

 

     (12) "Student with a disability" means that term as defined in

 

R 340.1702 of the Michigan administrative code.

 

     (13) "Department" means the department of education created

 

and operating under sections 300 to 305 of the executive

 

organization act of 1965, 1965 PA 380, MCL 16.400 to 16.405.

 

     (14) "State school aid" means allotments from the general

 

appropriating act for the purpose of aiding in the support of the

 

public schools of the state.

 

     (15) "The state school aid act of 1979" means the state school

 


aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772.388.1896.

 

     (16) "University school" means an instructional program

 

operated by a state public university and funded under section 23

 

of the state school aid act of 1979, MCL 388.1623, or a laboratory

 

school or teacher training school maintained by a state public

 

university under section 9 of 1963 (2nd Ex Sess) PA 48, MCL

 

390.559.

 

PART 7C

 

EDUCATION ACHIEVEMENT AUTHORITY

 

     Sec. 771. (1) To provide pupils with more opportunities for a

 

public education, as provided under section 2 of article VIII of

 

the state constitution of 1963, the achievement authority is

 

confirmed as part of this state's system of public schools, as

 

provided under this part, for the following purposes:

 

     (a) To provide innovative, flexible, transparent, safe,

 

efficient, and effective public educational services throughout the

 

state.

 

     (b) To design quality public elementary and secondary

 

education programs.

 

     (c) To improve public learning environments and pupil

 

achievement for all pupils, including, but not limited to,

 

educationally disadvantaged pupils.

 

     (d) To prepare public school pupils to compete globally in a

 

knowledge-based economy.

 

     (e) To develop a system of higher expectations for public

 

schools, pupils, and educators.

 

     (f) To expand flexibility and adaptability for pupil learning

 


models and styles.

 

     (g) To stimulate innovative public school teaching methods.

 

     (h) To create new professional opportunities for teachers

 

within a public school structure and educational programs

 

innovatively designed and managed by teachers directly engaged in

 

the provision of educational services.

 

     (i) To provide parents and pupils with greater public

 

educational choices both within and outside existing school

 

districts, including, but not limited to, the ability to select

 

globally-competitive public schools.

 

     (j) To facilitate the extension of technology and online

 

learning.

 

     (k) To encourage public and private commitment to the

 

innovative, flexible, transparent, safe, efficient, and effective

 

provision of public educational services throughout the state by

 

fostering public-private partnerships.

 

     (l) To renovate, repurpose, and construct public educational

 

buildings or buildings used for public educational services.

 

     (m) To remodel public educational buildings or buildings used

 

for public educational services, including energy conservation,

 

safety, and security improvements.

 

     (n) To acquire, improve, and develop sites, including athletic

 

and recreational facilities.

 

     (o) To furnish, refurnish, equip, and reequip public

 

educational facilities or facilities used for public educational

 

purposes.

 

     (p) To acquire, install, and upgrade technology access and

 


equipment in public educational facilities and facilities used for

 

public educational services, and to connect those facilities

 

technologically.

 

     (q) To provide for the safety and security of facilities,

 

personnel, and pupils.

 

     (r) To expand the number and types of public entities

 

permitted to operate, manage, authorize, establish, and oversee

 

public schools.

 

     (s) To provide new forms of public school governance.

 

     (t) All other purposes necessary or incidental to the purposes

 

described in this section.

 

     (2) As used in this part:

 

     (a) "Achievement authority" means the education achievement

 

authority, the public body corporate and special authority

 

initially created under section 5 of article III and section 28 of

 

article VII of the state constitution of 1963 and the urban

 

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

 

124.512, by an interlocal agreement effective August 11, 2011,

 

between the school district of the city of Detroit and the board of

 

regents of eastern Michigan university, a state public university.

 

     (b) "Authority board" means the authority board described in

 

section 773.

 

     (c) "Chancellor" means the chancellor of the achievement

 

authority described in section 774.

 

     (d) "Executive committee" means the executive committee of the

 

authority board described in section 773.

 

     (e) "The interlocal agreement" means the interlocal agreement

 


effective August 11, 2011, between the school district of the city

 

of Detroit and the board of regents of eastern Michigan university,

 

a state public university initially creating the achievement

 

authority.

 

     Sec. 772. (1) The achievement authority is confirmed under

 

this part to possess the powers, duties, rights, obligations,

 

functions, and responsibilities vested in the achievement authority

 

under all of the following:

 

     (a) The interlocal agreement.

 

     (b) Any transfer contract under 1967 (Ex Sess) PA 8, MCL

 

124.531 to 124.536, between the achievement authority and a school

 

district, including, but not limited to, the state reform district

 

under section 1280c.

 

     (c) The state school aid act of 1979, or any successor law

 

that provides state funding for the public schools of this state.

 

     (d) This act or any other law of this state.

 

     (2) Subject to the leadership and general supervision of the

 

state board over all public education, a school operated, managed,

 

authorized, established, or overseen by the achievement authority

 

is a public school under section 2 of article VIII of the state

 

constitution of 1963 and the achievement authority is a school

 

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

 

constitution of 1963.

 

     (3) The achievement authority is a public body corporate, is a

 

special authority, and is a governmental agency. The exercise by

 

the achievement authority of powers, duties, rights, obligations,

 

functions, and responsibilities vested in the achievement authority

 


under the interlocal agreement, under 1967 (Ex Sess) PA 8, MCL

 

124.531 to 124.536, under any transfer contract under that act to

 

which the achievement authority is a party, and under this part

 

constitutes the performance of essential public purposes and

 

governmental functions of this state.

 

     (4) The achievement authority shall only engage in tax-exempt

 

governmental functions carried out as a political subdivision of

 

this state under section 115 of the internal revenue code, 26 USC

 

115. The activities of the achievement authority are essential

 

governmental functions carried out by a political subdivision of

 

this state and are exempt from taxation by this state or a local

 

unit of government.

 

     (5) To the extent that any provisions of this part are

 

inconsistent with the provisions of the interlocal agreement or

 

with a transfer contract described in subsection (1)(b), the

 

provisions of this part are controlling.

 

     (6) Notwithstanding the withdrawal of a school district or a

 

state public university under the interlocal agreement, the

 

achievement authority shall continue to exist, operate, and possess

 

the powers, duties, rights, obligations, functions, and

 

responsibilities vested in the achievement authority under the

 

interlocal agreement and this act.

 

     Sec. 773. (1) Except as otherwise provided in this section,

 

the achievement authority shall have an authority board as set

 

forth in the interlocal agreement. If a vacancy arises on the

 

authority board for a position held by an authority board member

 

appointed by a state public university under the interlocal

 


agreement and at the time the vacancy arises the state public

 

university has withdrawn or is otherwise not a party to the

 

interlocal agreement, the member of the authority board who would

 

otherwise be appointed by the state public university under the

 

interlocal agreement instead shall be appointed by the governor. If

 

a vacancy arises on the authority board for a position held by a

 

member appointed by a school district under the interlocal

 

agreement and at the time the vacancy arises the school district

 

has withdrawn or is otherwise not a party to the interlocal

 

agreement, the member of the authority board who would otherwise be

 

appointed by the school district under the interlocal agreement

 

instead shall be appointed by the governor.

 

     (2) Except as otherwise provided in this section, the

 

achievement authority shall have an executive committee of the

 

authority board as set forth in the interlocal agreement. If a

 

vacancy arises on the executive committee for a position held by an

 

executive committee member appointed by a state public university

 

under the interlocal agreement and at the time the vacancy arises

 

the state public university has withdrawn or is otherwise not a

 

party to the interlocal agreement, the member of the executive

 

committee who would otherwise be appointed by the state public

 

university under the interlocal agreement instead shall be

 

appointed by the governor. If a vacancy arises on the executive

 

committee for a position held by a member appointed by a school

 

district under the interlocal agreement and at the time the vacancy

 

arises the school district has withdrawn or is otherwise not a

 

party to the interlocal agreement, the member of the executive

 


committee who would otherwise be appointed by the school district

 

under the interlocal agreement instead shall be appointed by the

 

governor.

 

     (3) Beginning January 1, 2014, the achievement authority shall

 

be governed by an authority board appointed as follows:

 

     (a) Five members appointed by the governor with the advice and

 

consent of the senate.

 

     (b) One member appointed by the governor from among a list of

 

3 nominees submitted by the senate majority leader.

 

     (c) One member appointed by the governor from among a list of

 

3 nominees submitted by the speaker of the house of

 

representatives.

 

     (4) The governor shall appoint the members of the authority

 

board appointed under subsection (3) in time for those members to

 

take office on January 1, 2014. Members of the authority board

 

shall serve for terms of 4 years or until a successor is appointed,

 

whichever is later, except that of the members first appointed by

 

the governor under subsection (3)(a), 1 shall serve for 1 year, 2

 

shall serve for 2 years, and 2 shall serve for 3 years. If a

 

vacancy occurs on the authority board among the members appointed

 

under subsection (3), the governor shall make an appointment for

 

the unexpired term in the same manner as the original appointment.

 

     (5) Effective January 1, 2014, the authority board appointed

 

under subsection (3) has all of the powers and duties under this

 

act previously vested in the authority board appointed under

 

subsection (1) and the executive committee appointed under

 

subsection (2).

 


     (6) Except as provided in subsection (5), the executive

 

committee shall adopt ethics policies governing the conduct of

 

members of the authority board, members of the executive committee,

 

and the officers and employees of the achievement authority. The

 

policies shall be no less stringent than those provided for public

 

officers and employees under 1973 PA 196, MCL 15.341 to 15.348. A

 

member of the authority board, a member of the executive committee,

 

or an officer or employee of the achievement authority is

 

considered to be a public servant under 1968 PA 317, MCL 15.321 to

 

15.330, and is subject to any other applicable laws with respect to

 

conflicts of interest. Except as provided in subsection (5), the

 

executive committee shall establish policies and procedures

 

requiring disclosure of familial or business relationships that may

 

give rise to a conflict of interest.

 

     (7) A member of the authority board or the executive committee

 

is under a fiduciary duty to conduct business in the best interests

 

of the achievement authority, including the safekeeping and use of

 

all achievement authority money and assets for the benefit of the

 

achievement authority. A member of the authority board or the

 

executive committee shall discharge his or her duties in good

 

faith, with the care an ordinarily prudent individual in a like

 

position would exercise under similar circumstances.

 

     (8) A member of the authority board or the executive committee

 

shall not receive compensation for the performance of his or her

 

duties. Subject to subsection (6), a member of the authority board

 

or the executive committee may engage in private or public

 

employment, or in any profession or business. A member of the

 


authority board or the executive committee may be reimbursed by the

 

achievement authority for actual and necessary expenses incurred in

 

the discharge of his or her official duties.

 

     (9) Before beginning the duties of his or her office, a member

 

of the authority board, a member of the executive committee, or the

 

chancellor shall take and subscribe to the constitutional oath of

 

office under section 1 of article XI of the state constitution of

 

1963. The oath of office shall be filed with the secretary of

 

state.

 

     (10) The governor may remove from office a member of the

 

authority board, a member of the executive committee, or the

 

chancellor for gross neglect of duty or for corrupt conduct in

 

office, or for any other misfeasance or malfeasance in office, and

 

shall report the reasons for the removal to the legislature.

 

     Sec. 774. (1) The chief executive of the achievement authority

 

is the chancellor. Subject to subsection (3), the chancellor shall

 

be appointed as provided in the interlocal agreement. If a vacancy

 

arises in the office of chancellor and at the time the vacancy

 

arises there is no state public university or school district that

 

is a party to the interlocal agreement, a chancellor shall be

 

appointed by the executive committee.

 

     (2) Subject to subsection (3), the chancellor shall administer

 

all programs, funds, personnel, facilities, contracts, and all

 

other administrative and academic functions of the achievement

 

authority, subject to oversight by the executive committee as

 

provided in the interlocal agreement. The chancellor shall continue

 

to perform the duties described in this subsection even if there is

 


no state public university or school district that is a party to

 

the interlocal agreement.

 

     (3) Effective January 1, 2014, the chancellor shall be

 

appointed by the authority board and shall fulfill the functions

 

and duties under subsection (2) under the oversight of the

 

authority board.

 

     Sec. 775. (1) The powers of the achievement authority shall

 

include all of the following:

 

     (a) The shared powers, privileges, or authority that the

 

parties to the interlocal agreement share in common, to the fullest

 

extent permitted by the urban cooperation act of 1967, 1967 (Ex

 

Sess) PA 7, MCL 124.501 to 124.512. The achievement authority

 

retains all of these powers, privileges, and authority even if a

 

state public university or school district withdraws from or is

 

otherwise not a party to the interlocal agreement.

 

     (b) Specific powers of the achievement authority set forth in

 

the interlocal agreement. The achievement authority retains all of

 

these powers even if a state public university or school district

 

withdraws from or is otherwise not a party to the interlocal

 

agreement.

 

     (c) Powers, functions, or responsibilities transferred to the

 

authority under 1967 (Ex Sess) PA 8, MCL 124.531 to 124.536. The

 

achievement authority retains all of these powers, functions, and

 

responsibilities even if a state public university or school

 

district withdraws from or is otherwise not a party to the

 

interlocal agreement.

 

     (d) Any powers, duties, rights, obligations, functions, and

 


responsibilities vested in the achievement authority under this act

 

or other laws of this state.

 

     (e) The authorization to do all other things necessary or

 

convenient to achieve the objectives and purposes of the

 

achievement authority under this act or other laws that relate to

 

the objectives and purposes of the achievement authority. The

 

enumeration of a power, duty, right, obligation, function, or

 

responsibility of the achievement authority in this part shall not

 

be construed as a limitation upon the achievement authority. This

 

part shall be construed liberally to fully effectuate the

 

legislative intent and the purposes of this part as complete and

 

independent authority for the performance of each and every act and

 

thing authorized in this part and all powers, duties, rights,

 

obligations, functions, and responsibilities vested in the

 

authority under this part shall be broadly interpreted to

 

effectuate the intent and purposes.

 

     (2) In addition to the powers set forth in subsection (1), the

 

achievement authority may enter into agreements or cooperative

 

arrangements with other entities, public or private, or join

 

organizations as part of performing the functions of the

 

achievement authority.

 

     (3) The achievement authority may acquire property, or rights

 

or interests in property, by gift, devise, transfer, exchange,

 

condemnation, lease, purchase, or otherwise from a person or entity

 

on terms and conditions and in a manner the achievement authority

 

considers proper. Property acquired by the achievement authority by

 

purchase may be by purchase contract, lease purchase agreement,

 


installment sales contract, land contract, or otherwise. The

 

achievement authority may acquire property or rights or interests

 

in property for any purpose as the achievement authority determines

 

is necessary to achieve the purposes of the achievement authority.

 

The achievement authority may hold and own in its name any property

 

acquired by the achievement authority or conveyed to the

 

achievement authority by a person or entity. All deeds, mortgages,

 

contracts, leases, purchases, or other agreements regarding

 

property of the achievement authority shall be approved by the

 

executive committee and executed in the name of the achievement

 

authority. For purposes of condemnation, the achievement authority

 

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 law, but only with the

 

express permission of the executive committee in each instance of

 

condemnation and only after just compensation has been determined

 

and paid.

 

     (4) The achievement authority may, without the approval of a

 

local unit of government in which property held by the achievement

 

authority is located, control, hold, manage, maintain, operate,

 

repair, lease as lessor, secure, prevent the waste or deterioration

 

of, demolish, and take all other actions necessary to preserve the

 

value of, the property in which the achievement authority has a

 

right or interest. The achievement authority may take or perform

 

all of the following with respect to property owned or under the

 

control of the achievement authority:

 

     (a) Grant or acquire a license, easement, or option with

 


respect to property as the achievement authority determines is

 

necessary to achieve the purposes of the achievement authority.

 

     (b) Fix, charge, and collect rents, fees, and charges for use

 

of property or for services provided by the achievement authority.

 

     (c) Take any action, provide any notice, or institute any

 

proceeding required to clear or quiet title to property to

 

establish ownership by, and vest title to property in, the

 

achievement authority. This subdivision does not apply to property

 

owned by a school district or public school academy.

 

     (d) Remediate environmental contamination.

 

     (5) On terms and conditions, and in a manner and for an amount

 

of monetary or other consideration the achievement authority

 

considers proper, fair, and valuable, the achievement authority may

 

convey, sell, transfer, exchange, lease as lessor, or otherwise

 

dispose of property or rights or interests in property owned by the

 

achievement authority to any person or entity. The transfer and use

 

of property under this section shall be considered a necessary

 

public purpose and for the benefit of the public.

 

     (6) Property of the achievement authority is public property

 

devoted to an essential public and governmental function and

 

purpose. Property of the achievement authority is exempt from all

 

taxation. Instruments of conveyance to or from the achievement

 

authority are exempt from all taxation, including, but not limited

 

to, taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. A

 

document, including, but not limited to, a deed, evidencing the

 

transfer of 1 or more parcels of property to the achievement

 

authority by this state, a school district, or other political

 


subdivision of this state may be recorded with the register of

 

deeds office in the county in which the property is located without

 

the payment of a fee. The achievement authority may not levy ad

 

valorem property taxes or another tax for any purpose. However, the

 

operation, management, authorization, establishment, or oversight

 

of 1 or more schools by the achievement authority within 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.

 

     (7) The achievement authority may establish on its behalf 1 or

 

more nonprofit corporations with the purpose of assisting the

 

achievement authority in the furtherance of its public purposes.

 

     (8) The achievement authority may receive, disburse, and

 

pledge money for lawful purposes.

 

     (9) The achievement authority may incur temporary debt in

 

accordance with section 1225.

 

     (10) The achievement authority may borrow money and issue

 

bonds in accordance with section 1351a and in accordance with part

 

VI of the revised municipal finance act, 2001 PA 34, MCL 141.2601

 

to 141.2613, except that the borrowing of the money and issuance of

 

bonds by the achievement authority is not subject to section

 

1351(2) to (4) or section 1351a(4). Bonds issued under this

 

subsection are subject to the revised municipal finance act, 2001

 

PA 34, MCL 141.2101 to 141.2821.

 

     (11) Bonds issued under this section shall be full faith and

 

credit obligations of the achievement authority pledging the

 

general funds of the achievement authority or any other money

 


available for this purpose. An agreement, mortgage, loan, or other

 

instrument of indebtedness entered into by the achievement

 

authority does not constitute an obligation, either general,

 

special, or moral, of this state or of a party to the interlocal

 

agreement. The full faith and credit or the taxing power of this

 

state or any agency of this state, or the full faith and credit of

 

a party to the interlocal agreement, may not be pledged for the

 

payment of any achievement authority bond, note, agreement,

 

mortgage, loan, or other instrument of indebtedness.

 

     (12) This part does not impose any liability on this state or

 

on a party to the interlocal agreement for any debt incurred by the

 

achievement authority.

 

     (13) The achievement authority or an achievement school may do

 

all of the following:

 

     (a) Educate pupils. In addition to educating pupils in grades

 

K-12, this function may include operation of preschool, lifelong

 

education, adult education, community education, training,

 

enrichment, and recreation programs for other persons.

 

     (b) Provide for the safety and welfare of pupils while at

 

school or a school-sponsored activity or while en route to or from

 

school or a school-sponsored activity.

 

     (c) Employ or contract with personnel as necessary for the

 

purposes of this part, prescribe their duties, and fix their

 

compensation, including, but not limited to, hiring, contracting

 

for, scheduling, supervising, or terminating employees, independent

 

contractors, and others to carry out the powers of the achievement

 

authority, and indemnifying employees or independent contractors.

 


     (d) Implement and maintain a method of compensation for its

 

employees or independent contractors that is consistent with the

 

purposes of this part, including, but not limited to, a method of

 

compensation based on performance, accomplishments, and assignment

 

in a subject area or school that is difficult to find employees to

 

staff.

 

     (e) Use as a classroom teacher in any grade an adjunct

 

instructor authorized under section 1233c, a faculty member

 

employed by a state public university who has experience in

 

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

 

achievement school, or a faculty member employed by a community

 

college who has at least 5 years of experience in teaching the

 

subject matter that he or she is teaching at the achievement

 

school.

 

     (f) Use a noncertificated teacher in any other situation in

 

which a school district or other public school is authorized under

 

this act to use a noncertificated teacher.

 

     (g) Develop and implement new teaching techniques or methods

 

or significant revisions to known teaching techniques or methods.

 

     (h) Use any instructional technique or delivery method that

 

may be used by a school district or other public school under this

 

act.

 

     (14) Except as otherwise provided by law, an achievement

 

school shall use certificated teachers according to superintendent

 

of public instruction rule.

 

     Sec. 776. (1) The achievement authority shall develop,

 

maintain, and make publicly available a single, searchable

 


financial data website on the internet consistent with the

 

requirements of the interlocal agreement. The website shall contain

 

only information that is a public record or that is not

 

confidential or otherwise protected from public disclosure under

 

state or federal law. The authority shall, to the extent

 

practicable, update the financial data contained on the website at

 

least monthly and provide the data in a structured format that may

 

be downloaded. The website shall include a method by which a user

 

of the website may provide feedback concerning the organization or

 

utility of the website. The achievement authority shall archive the

 

financial data on the website, which shall remain accessible and

 

searchable on the website for at least 5 years. The website shall

 

allow the public to search financial data included on the website

 

at no cost and shall aggregate all of the following information:

 

     (a) The amount and source of money received by the achievement

 

authority.

 

     (b) The money expended by the achievement authority, including

 

all of the following for each expenditure:

 

     (i) The name and principal location or address of the

 

individual or entity receiving money, except that information

 

concerning a payment to an employee of the achievement authority

 

shall identify the individual employee by position and business

 

address only.

 

     (ii) The amount of money expended.

 

     (iii) The funding source of the money.

 

     (iv) The name of the budget program or activity receiving the

 

money.

 


     (v) A description of the planned use of the money.

 

     (2) Subject only to the requirements of state and federal law,

 

the achievement authority shall seek to provide maximum public

 

access, through its website, to information concerning the programs

 

and plans of the achievement authority.

 

     Sec. 777. The achievement authority may issue or release an

 

opinion, report, data, or research materials regarding the

 

academic, financial, and compliance performance of a vendor,

 

contractor, or educational service provider providing educational

 

services in a public school within the education achievement

 

system. In taking an action described in this section, the

 

achievement authority has governmental immunity as provided in

 

section 7 of 1964 PA 170, MCL 691.1407.

 

     Sec. 778. (1) The achievement authority, an achievement

 

school, the chancellor, a member of the authority board, a member

 

of the executive committee, and employees, officers, and volunteers

 

of the achievement authority or of an achievement school have

 

governmental immunity as provided in section 7 of 1964 PA 170, MCL

 

691.1407. The achievement authority, an achievement school, the

 

chancellor, a member of the authority board, a member of the

 

executive committee, and employees, officers, and volunteers of the

 

achievement authority or of an achievement school are immune from

 

civil liability, both personally and professionally, for an act or

 

omission under this part if the person or entity acted or had a

 

reasonable belief to be acting within the person's or entity's

 

scope of authority.

 

     (2) The parties to the interlocal agreement and each of their

 


governing board members, officers, authorized representatives, and

 

employees have governmental immunity as provided in section 7 of

 

1964 PA 170, MCL 691.1407, and are immune from liability, both

 

personally and professionally, for any acts or omissions involved

 

in creating the achievement authority, entering into the interlocal

 

agreement, or implementing the interlocal agreement.

 

     (3) The achievement authority is authorized to indemnify and

 

pay the costs and liabilities of the parties to the interlocal

 

agreement arising from or in any way connected with the interlocal

 

agreement, as provided in the interlocal agreement.

 

     Sec. 779. (1) Except as otherwise provided in this part, the

 

achievement authority shall comply, and shall ensure that an

 

achievement school complies, as if the achievement authority were a

 

local school district and the achievement school were a school

 

operated by a local school district, with sections 1134, 1135,

 

1137, 1137a, 1138, 1139, 1146, 1153, 1230 to 1230h, 1263(3), 1267,

 

1274, 1278 to 1278b, 1285a, 1306, 1309 to 1311a, 1312, 1317, 1535a,

 

and 1539b.

 

     (2) If the achievement authority provides medical, optical, or

 

dental benefits to employees of the achievement authority and their

 

dependents, the achievement authority shall provide those benefits

 

in accordance with the public employee health benefit act, 2007 PA

 

106, MCL 124.71 to 124.85, and the publicly funded health insurance

 

contribution act, 2011 PA 152, MCL 15.561 to 15.569, and shall

 

comply with those acts.

 

     Sec. 780. (1) The achievement authority may enter into an

 

agreement with a school district or public school academy to

 


provide services to the school district or public school academy or

 

to pupils of the school district or public school academy, or for

 

the school district or public school academy to provide services to

 

the achievement authority or pupils of an achievement school. The

 

services may be provided on a cooperative basis. The achievement

 

authority may charge the school district or public school academy,

 

or a school district or public school academy may charge the

 

achievement authority, for services described in this subsection.

 

     (2) The achievement authority may contract with a qualified

 

provider for energy conservation improvements to public school

 

facilities in the same manner as a school district under section

 

1274a.

 

     (3) The achievement authority may grant high school credit in

 

a foreign language or American sign language to a pupil enrolled in

 

high school who has demonstrated proficiency in the foreign

 

language or American sign language outside of a public or nonpublic

 

high school curriculum. Proficiency may be demonstrated by a

 

competency test or other criteria established by the achievement

 

authority.

 

     Sec. 1260. (1) The policy of this state is to provide for the

 

optimum use of buildings and other assets that are paid for with

 

public funds and are intended to be used for school purposes.

 

     (2) (1) Unless approved by the state board, superintendent of

 

public instruction, a school board or intermediate school board

 

shall not impose any deed restriction prohibiting, or otherwise

 

prohibit, property sold or transferred by the school board or

 

intermediate school board from being used for any lawful public

 


education purpose. Any deed restriction or other prohibition in

 

effect as of the effective date of this subsection is void.

 

     (3) (2) If a school board or intermediate school board offers

 

property of the school board or intermediate school board for lease

 

or rent, the school board or intermediate school board shall not

 

refuse to lease or rent the property to a person solely because the

 

person intends to use the property for an educational purpose, if

 

the intent of the person is to use the property for a lawful

 

educational purpose.

 

     (4) In order to continue the operation of school buildings as

 

public schools, if a school district has an emergency financial

 

manager under the local government fiscal responsibility act, 1990

 

PA 72, MCL 141.1201 to 141.1291, or an emergency manager under the

 

local government and school district fiscal responsibility act,

 

2011 PA 4, MCL 141.1501 to 141.1531, or a successor law to 2011 PA

 

4, the emergency financial manager or emergency manager shall do

 

all the following:

 

     (a) Promptly inventory all buildings being used or previously

 

used as a school by the school district.

 

     (b) For each of those buildings, promptly make 1 of the

 

following determinations with respect to the building:

 

     (i) The building will be used for school purposes by the school

 

district.

 

     (ii) The building can be redeployed for use as a school

 

building by 1 or more eligible public schools or can be used as a

 

school building and is available for purchase or lease by a

 

nonpublic school.

 


     (iii) The building is unsuitable for use as a school building.

 

     (c) If the emergency financial manager or emergency manager

 

has determined that 1 or more of the school buildings of the school

 

district may be redeployed as provided under subdivision (b)(ii),

 

advise the superintendent of public instruction, the chancellor of

 

the achievement authority, and any other person who has requested

 

to receive the notice, that 1 or more school buildings in the

 

school district are available for redeployment under this section

 

for continuing use as a school building.

 

     (5) The title to a school building redeployed under this

 

section shall remain with the school district, but the management,

 

maintenance, and operation of the building as a school shall be

 

performed by the eligible public school to which the school

 

building is redeployed. An action under this section shall not

 

affect a security interest in the school building of a creditor or

 

bondholder of the school district.

 

     (6) In order to facilitate optimum use of assets of school

 

districts described in subsection (4), an emergency financial

 

manager or emergency manager shall apply hoteling concepts to the

 

extent appropriate.

 

     (7) As used in this section:

 

     (a) "Eligible public school" means a public school academy,

 

the authorizing body for a public school academy, the achievement

 

authority, an achievement school, or a university school.

 

     (b) "Hoteling" means making a school building available for

 

use by multiple educational and community institutions, including,

 

but not limited to, use of a single building and all available

 


classrooms, laboratories, computer and distance learning

 

technology, auditoria, or gymnasiums, by 1 or more eligible public

 

schools or nonpublic schools.

 

     (c) "Redeploy" means the process by which a school building

 

owned by a school district is made available for use by an eligible

 

public school using the process described in section 1260a.

 

     Sec. 1260a. (1) Each school district shall inform the

 

department whenever a school building that was previously used for

 

classroom instruction is closed, unused, or unoccupied.

 

Additionally, at least annually, each school district shall provide

 

a list of closed, unused, or unoccupied buildings to the department

 

by the date set by the department. The department shall maintain a

 

list of closed, unused, or unoccupied school buildings and make the

 

list available on the department's website. The department shall

 

update the list each year before August 31.

 

     (2) The board of a school district that owns a school building

 

that is placed on the department's list under subsection (1) shall

 

maintain the school building in a condition that is suitable for

 

use as a school building.

 

     (3) If the board of the school district that owns a school

 

building that is placed on the department's list under subsection

 

(1) indicates the school building may be reclaimed for classroom

 

instruction during the 2-year period after the school building

 

appears for the first time on the department's list under

 

subsection (1), then the department shall designate that school

 

building as "unavailable" until 2 years after the school building

 

first appears on the list. If a school district reclaims a school

 


building identified as unavailable, the school district shall reuse

 

the school building for classroom instruction within 1 year after

 

the school building is reclaimed. If a reclaimed school building

 

remains unused for classroom instruction after the expiration of 1

 

year after being reclaimed, the school district shall place the

 

school building on the department's list under subsection (1) and

 

may not again reclaim the school building unless the school

 

building is not being used for classroom instruction by an eligible

 

school and the school district demonstrates to the satisfaction of

 

the superintendent of public instruction that it has a legitimate

 

need to reclaim the school building based on enrollment growth in

 

the school district.

 

     (4) If an eligible public school intends to use a school

 

building on the list created under subsection (1), the eligible

 

public school shall send a letter of intent to the superintendent

 

of public instruction. The superintendent of public instruction

 

shall notify the school district that owns the school building of

 

the letter of intent. Subject to subsection (7), within 63 days

 

after receipt of the letter of intent, the school district that

 

owns the school building shall lease the school building to the

 

eligible public school under subsection (5) or sell the school

 

building to the eligible public school under subsection (6).

 

     (5) If the school district that owns a school building that is

 

on the list under subsection (1) receives a letter of intent under

 

subsection (4), the school district shall lease the school building

 

to the eligible public school for fair market value for as long as

 

the school building is used for classroom instruction by the

 


eligible public school academy or for another term at the option of

 

the eligible public school. The eligible public school shall begin

 

to use the school building for classroom instruction not later than

 

2 years after leasing the school building. If the school building

 

is not used for classroom instruction within 2 years after it is

 

leased, the school building shall be placed on the department's

 

list under subsection (1). If during the term of the lease the

 

eligible school leasing the school building closes or ceases using

 

the school building for classroom instruction, the school building

 

shall be placed on the department's list under subsection (1).

 

     (6) If the school district that owns a school building that is

 

on the list under subsection (1) and receives a notice of intent

 

under subsection (4) determines to sell the school building to the

 

eligible public school, the school district shall sell the school

 

building to the eligible public school for fair market value. The

 

eligible public school shall begin to use the school building for

 

classroom instruction not later than 2 years after acquiring the

 

school building. If the school building is not used for classroom

 

instruction within 2 years after it is acquired, this state may

 

exercise a right of reversion for the school building, terminating

 

the eligible public school's estate in the school building, and the

 

school building then shall be placed on the department's list under

 

subsection (1). If after acquiring a school building under this

 

subsection the eligible public school that acquired the school

 

building closes or ceases using the school building for classroom

 

instruction, this state may exercise a right of reversion for the

 

school building, terminating the eligible public school's estate in

 


the school building, and the school building then shall be placed

 

on the department's list under subsection (1). If the eligible

 

public school disputes this state's exercise of its right of

 

reversion and fails to promptly deliver possession of the school

 

building to this state, the attorney general, on behalf of this

 

state, may bring an action to quiet title to, and regain possession

 

of, the school building.

 

     (7) A school district shall not lease or sell a school

 

building under this section if the lease or sale would

 

unconstitutionally impair a bond, note, security, or uncontested

 

legal obligation of the school district.

 

     (8) During the term of a lease under subsection (5), the

 

eligible public school leasing the school building is responsible

 

for the direct expenses related to the school building leased,

 

including utilities, insurance, maintenance, repairs, and

 

remodeling. The school district that owns the school building is

 

responsible for any debt incurred for or liens that attached to the

 

school building before the eligible public school leased the school

 

building.

 

     (9) If a school building appears on the department's list

 

under subsection (1) for at least 48 months, the school district

 

that owns the school building may sell or otherwise dispose of the

 

school building in any manner the school board considers

 

appropriate.

 

     (10) A school building acquired and occupied by an eligible

 

public school pursuant to this section shall be considered to have

 

been in continuous use as a public school.

 


     (11) As used in this section, "eligible public school" means a

 

public school academy, the authorizing body for a public school

 

academy, the achievement authority, or a university school.

 

     Sec. 1280c. (1) Beginning in 2010, not Not later than

 

September 1 of each year, the superintendent of public instruction

 

shall publish a list identifying the public schools in this state

 

that the department has determined to be among the lowest achieving

 

5% of all public schools in this state, as defined by the United

 

States department of education for the purposes of the a 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, or as defined under an alternative definition

 

approved by the United States secretary of education.

 

     (2) Except as otherwise provided in subsection (16), (19), the

 

superintendent of public instruction shall issue an order placing

 

each public school that is included on the list under subsection

 

(1) under the supervision of the state school reform/redesign

 

redesign officer described in subsection (9). (12). Within 90 days

 

after a public school is placed under the supervision of the state

 

school reform/redesign redesign officer under this section, the

 

school board or board of directors operating the public school

 

shall submit a redesign plan to the state school reform/redesign

 

redesign officer. For a public school operated by a school board,

 

the redesign plan shall be developed with input from the local

 

teacher bargaining unit and the local superintendent. The redesign

 

plan shall directly address the reasons the public school is among

 

the lowest achieving schools by incorporating measures to improve

 


pupil performance in those subject areas in which the pupils are

 

failing to adequately achieve. The redesign plan shall require

 

implementation of 1 of the 4 school intervention models that are

 

provided for the lowest achieving schools under 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, known as the "race to the top" grant program, a

 

school intervention model under the federal incentive grant program

 

created under 20 USC 6303(g), or another intervention model that is

 

approved under federal law. These models are include the turnaround

 

model, restart model, school closure, and transformation model, and

 

other intervention models that are approved under federal law. The

 

redesign plan shall include an executed addendum to each applicable

 

collective bargaining agreement in effect for the public school

 

that meets the requirements of subsection (8).(11).

 

     (3) Within 30 days after receipt of a redesign plan for a

 

public school under subsection (2), the state school

 

reform/redesign redesign officer shall issue an order approving,

 

disapproving, or making changes to the redesign plan. If the order

 

makes changes to the redesign plan, the school board or board of

 

directors has 30 days after the order to change the redesign plan

 

to incorporate those changes into the redesign plan and resubmit it

 

to the state school reform/redesign redesign officer for approval

 

or disapproval.

 

     (4) The state school reform/redesign redesign officer shall

 

not disapprove a redesign plan that includes all of the elements

 

required under federal law for the school intervention model

 


included in the redesign plan. A school board or board of directors

 

may appeal disapproval of a redesign plan on this basis to the

 

superintendent of public instruction. The decision of the

 

superintendent of public instruction on the appeal is a final

 

administrative determination.

 

     (5) If the state school reform/redesign redesign officer

 

approves a redesign plan under this section, the school board or

 

board of directors shall implement the redesign plan for the public

 

school beginning with the beginning of the next school year that

 

begins after the approval. The school board or board of directors

 

shall regularly submit monitoring reports to the state school

 

reform/redesign redesign officer on the implementation and results

 

of the plan in the form and manner, and according to a schedule, as

 

determined by the state school reform/redesign redesign officer.

 

Beginning in 2012, not later than October 1 of each year, if a

 

public school has been on the list under subsection (1) for 3

 

consecutive years, the superintendent of public instruction shall

 

notify the state school redesign officer.

 

     (6) The state school reform/redesign school reform district is

 

created. The state school reform/redesign school reform district is

 

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

 

the state constitution of 1963, and for receiving state school aid

 

under the state school aid act of 1979, and for functioning as a

 

political subdivision that is a party to a contract transferring

 

the powers, duties, rights, obligations, functions, and

 

responsibilities of the state reform district to a special

 

authority under 1967 (Ex Sess) PA 8, MCL 124.531 to 124.536, 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. The state school reform/redesign

 

school reform district is a body corporate and is a governmental

 

agency. Except as otherwise provided in subsection (7), if The

 

powers, duties, rights, obligations, functions, and

 

responsibilities of the state reform district are transferred to

 

and vested in and under the control of the achievement authority.

 

The achievement authority may perform the functions of the

 

department as the state education agency for a school placed within

 

the state reform district and under the control of the achievement

 

authority under this section to the full extent permitted under

 

federal law. The achievement authority is entitled to receive

 

federal funds otherwise payable to the department for the

 

performance of the functions to the full extent permitted under

 

federal law.

 

     (7) If any of the following occur, the state school

 

reform/redesign redesign officer does not approve shall issue an

 

order placing the public school in the state reform district and

 

under the control of the achievement authority:

 

     (a) The state school redesign officer receives notice under

 

subsection (5) from the superintendent of public instruction that a

 

public school has been on the list required under subsection (1)

 

for 3 consecutive years.

 

     (b) The state school redesign officer disapproves the redesign

 

plan , or if the submitted under subsection (2).

 

     (c) The state school reform/redesign redesign officer

 


determines that the redesign plan is not achieving satisfactory

 

results. ,

 

     (8) If the state school reform/redesign redesign officer shall

 

issue issues an order under subsection (7) placing the public

 

school in the state school reform/redesign school reform district

 

and under the control of the achievement authority, imposing for

 

the public school implementation of the chancellor shall impose 1

 

of the 4 school intervention models described in subsection (2)

 

beginning with the beginning of the next school year. , and

 

imposing an addendum to each applicable collective bargaining

 

agreement in effect for the public school as necessary to implement

 

the school intervention model and that meets the requirements of

 

subsection (8). Subject to subsection (15), if at any time after a

 

public school is placed in the state reform district and under the

 

control of the achievement authority the chancellor determines that

 

a redesign plan previously adopted for a public school under this

 

section is not achieving satisfactory results, the chancellor may

 

adopt for the public school an alternative school intervention

 

model described in subsection (2) or an alternative school

 

intervention model not prohibited by federal law that the

 

chancellor determines has a greater likelihood of improving

 

educational outcomes for the public school.

 

     (9) All of the following apply to the state school

 

reform/redesign school reform district under the control of the

 

achievement authority:

 

     (a) The state school reform/redesign school reform district

 

shall consist of schools that are placed in the state school

 


reform/redesign school reform district and under the control of the

 

achievement authority under this section.

 

     (b) The state school reform/redesign officer chancellor shall

 

act as the superintendent of the state school reform/redesign

 

school reform district. With respect to schools placed in the state

 

school reform/redesign school reform district and under the control

 

of the achievement authority, the state school reform/redesign

 

officer chancellor has all of the powers, and duties, rights,

 

obligations, functions, and responsibilities described in this

 

section; except as otherwise provided in this act, all of the

 

provisions of this act that are not inconsistent with part 7c and

 

would otherwise apply to the school board or other school officers

 

that previously operated a public school placed in the state school

 

reform/redesign school reform district and under the control of the

 

achievement authority apply to the state school reform/redesign

 

officer chancellor with respect to that public school, except those

 

relating to taxation or borrowing; except as otherwise provided in

 

this section, the state school reform/redesign officer chancellor

 

may exercise all the powers and duties otherwise vested by law in

 

the school board or other school officers that previously operated

 

a public school placed in the state school reform/redesign school

 

reform district, and in its officers, except those relating to

 

taxation or borrowing, and may exercise all additional powers, and

 

duties, rights, obligations, functions, and responsibilities

 

provided under this section; law, and, except as otherwise provided

 

in this section, act, the state school reform/redesign officer

 

chancellor accedes to all the powers, rights, duties, functions,

 


responsibilities, and obligations of the school board and other

 

local school officers with respect to that public school that are

 

not inconsistent with part 7c. These powers, rights, duties,

 

functions, responsibilities, and obligations include, but are not

 

limited to, all of the following:

 

     (i) Authority over the expenditure of all funds attributable to

 

pupils at that school, including that portion of proceeds from

 

bonded indebtedness and other funds dedicated to capital projects

 

that would otherwise be apportioned to that school by the school

 

board or other school officers that previously operated the school

 

according to the terms of the bond issue or financing documents.

 

     (ii) Subject to subsection (8), (11), rights and obligations

 

under collective bargaining agreements and employment contracts

 

entered into by the school board or other school officers for

 

employees at the school.

 

     (iii) Rights to prosecute and defend litigation.

 

     (iv) Rights and obligations under statute, rule, and common

 

law.

 

     (v) Authority to delegate any of the state school

 

reform/redesign officer's chancellor's powers, and duties, rights,

 

obligations, functions, and responsibilities to 1 or more

 

designees, with proper supervision by the state school

 

reform/redesign officer.chancellor.

 

     (vi) Power Subject to subsection (14), power to terminate or

 

modify any contract or portion of a contract entered into by the

 

school board or other school officer that previously operated that

 

public school that applies to that public school. However, this

 


subsection does not allow any termination or diminishment of

 

obligations to pay debt service on legally authorized bonds. and

 

does not allow a collective bargaining agreement to be affected

 

except as provided under subsection (8). A contract terminated by

 

the state school reform/redesign officer chancellor under this

 

subsection is void.

 

     (10) (7) If the state school reform/redesign officer

 

chancellor determines that better educational results are likely to

 

be achieved by appointing a chief executive officer to take control

 

of multiple public schools that have been placed in the state

 

reform district and under the control of the achievement authority,

 

the state school reform/redesign officer may make a recommendation

 

to the superintendent of public instruction for appointment of

 

chancellor may appoint a chief executive officer to take control

 

over those multiple schools. If the superintendent of public

 

instruction chancellor appoints a chief executive officer to take

 

control of multiple public schools under this subsection, the chief

 

executive officer shall impose for those public schools

 

implementation of 1 of the 4 school intervention models described

 

in subsection (2). and impose an addendum to each applicable

 

collective bargaining agreement in effect for those public schools

 

as necessary to implement the school intervention model and that

 

meets the requirements of subsection (8). Subject to subsection

 

(15), if at any time after a public school is placed under the

 

control of a chief executive officer under this subsection the

 

chief executive officer determines that an intervention model

 

previously adopted for a public school under this subsection is not

 


achieving satisfactory results, the chief executive officer may

 

adopt for the public school an alternative school intervention

 

model described in subsection (2) or an alternative school

 

intervention model not prohibited by federal law that the

 

chancellor determines has a greater likelihood of improving

 

educational outcomes for the public school. With respect to those a

 

public schools school placed under the control of a chief executive

 

officer under this subsection, the chief executive officer has all

 

of the same powers, and duties, rights, obligations, functions, and

 

responsibilities that the state school reform/redesign officer

 

chancellor has for public schools placed in the state school

 

reform/redesign school reform district and under the control of the

 

achievement authority under subsection (6) (7), subject to

 

supervision by the chancellor. The chief executive officer shall

 

regularly submit monitoring reports to the state school

 

reform/redesign officer chancellor on the implementation and

 

results of the intervention model in the form and manner, and

 

according to a schedule, as determined by the state school

 

reform/redesign officer. chancellor. The chief executive officer

 

shall exercise any other powers or duties over the public schools

 

school as may be directed by the superintendent of public

 

instruction.chancellor.

 

     (8) An addendum to a collective bargaining agreement under

 

this section shall provide for any of the following that are

 

necessary for the applicable school intervention model to be

 

implemented at each affected public school:

 

     (a) That any contractual or other seniority system that would

 


otherwise be applicable shall not apply at the public school. This

 

subdivision does not allow unilateral changes in pay scales or

 

benefits.

 

     (b) That any contractual or other work rules that are

 

impediments to implementing the redesign plan shall not apply at

 

the public school. This subdivision does not allow unilateral

 

changes in pay scales or benefits.

 

     (11) (c) That For a public school operating under a redesign

 

plan approved by the state school redesign officer, the state

 

school reform/redesign redesign officer shall direct the

 

expenditure of all funds attributable to pupils at the public

 

school and the principal or other school leader designated by the

 

state school reform/redesign redesign officer shall have full

 

autonomy and control over curriculum and discretionary spending at

 

the public school. For a public school operating under the control

 

of the achievement authority under subsections (7) to (9), the

 

chancellor shall direct the expenditure of all funds attributable

 

to pupils at the public school and shall have full autonomy and

 

control over curriculum and discretionary spending at the public

 

school. For a public school operating under subsection (10), the

 

chief executive officer shall direct the expenditure of all funds

 

attributable to pupils at the public school and shall have full

 

autonomy and control over curriculum and discretionary spending at

 

the public school.

 

     (12) (9) The superintendent of public instruction governor

 

shall hire appoint a state school reform/redesign redesign officer

 

to carry out the functions of the state redesign officer under this

 


section and as otherwise prescribed by law. The state school

 

reform/redesign redesign officer shall be chosen solely on the

 

basis of his or her competence and experience in educational reform

 

and redesign. The state school reform/redesign redesign officer is

 

exempt from civil service. The state school reform/redesign

 

redesign officer is responsible directly to the superintendent of

 

public instruction to ensure that the purposes of this section are

 

carried out, and accordingly the position of state school

 

reform/redesign redesign officer should be a position within the

 

department that is exempt from the classified state civil service.

 

The department shall request that the civil service commission

 

establish the position of state school reform/redesign redesign

 

officer as a position that is exempt from the classified state

 

civil service.

 

     (13) (10) If the state school reform/redesign officer

 

chancellor imposes the restart model for a public school in the

 

state school reform/redesign school reform district and under the

 

control of the achievement authority, or a chief executive officer

 

under subsection (7) (10) imposes the restart model for multiple a

 

public schools school under that subsection, all of the following

 

apply:

 

     (a) The state school reform/redesign officer chancellor or

 

chief executive officer shall enter into an agreement with an

 

educational management organization to manage and operate the

 

public school or schools. The state school reform/redesign officer

 

chancellor or chief executive officer shall provide sufficient

 

oversight to ensure that the public school or schools will be

 


operated according to all of the requirements for a restart model.

 

     (b) There shall be considered to be no collective bargaining

 

agreement in effect that applies to employees working at the public

 

school or schools under this model at the time of imposition of the

 

model.

 

     (14) (11) If the state school reform/redesign officer

 

chancellor imposes the turnaround model for a public school in the

 

state school reform/redesign school reform district and under the

 

control of the achievement authority, or a chief executive officer

 

under subsection (7) (10) imposes the turnaround model for multiple

 

a public schools school under that subsection, all of the following

 

apply:

 

     (a) A a collective bargaining agreement that applies to

 

employees working at the public school or schools under this model

 

at the time of imposition of the model, and any successor

 

collective bargaining agreement, continues to apply with respect to

 

pay scales and benefits.

 

     (b) Subject to any addendum to the collective bargaining

 

agreement that applies to the public school or schools, an employee

 

who is working at the public school or schools and who was

 

previously employed in the same school district that previously

 

operated that school shall continue to retain and accrue seniority

 

rights in that school district according to the collective

 

bargaining agreement that applies to employees of that school

 

district.

 

     (12) If more than 9 public schools operated by a school

 

district are on the list under subsection (1), the transformation

 


model may not be implemented for more than 50% of those schools.

 

     (15) If under subsection (8) the chancellor imposes an

 

alternative school intervention model not prohibited by federal law

 

that the chancellor determines has a greater likelihood of

 

improving educational outcomes for a public school under that

 

subsection, or if under subsection (10) a chief executive officer

 

imposes an alternative school intervention model not prohibited by

 

federal law that the chancellor determines has a greater likelihood

 

of improving educational outcomes for a public school under that

 

subsection, all of the following apply:

 

     (a) The chancellor or chief executive officer shall determine

 

the most effective mechanism for the management and operation of

 

the public school or schools and the provision of educational

 

services in a manner that complies with part 7c.

 

     (b) A collective bargaining agreement applicable to employees

 

working at the public school before the imposition of the

 

alternative school intervention model shall not apply to personnel

 

at the public school after the imposition of the alternative school

 

intervention model.

 

     (c) An employee working at the public school after the

 

imposition of the alternative school intervention model who was

 

previously employed by the school district other than the state

 

reform district that previously operated the public school shall

 

not accrue seniority rights in the school district or accrue

 

creditable service under the public school employees retirement act

 

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, while working at the

 

public school after the imposition of the alternative school

 


intervention model, and any compensation or remuneration paid for

 

work at the public school after the imposition of the alternative

 

school intervention model shall not constitute compensation or

 

remuneration paid for services performed as a public school

 

employee under the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1301 to 38.1437.

 

     (16) (13) If the state school reform/redesign officer

 

chancellor determines that a public school that is subject to the

 

measures under subsection (6) or (7) has been placed in the state

 

reform district and under the control of the achievement authority

 

under subsections (7) to (9), or that is under the control of a

 

chief executive officer under subsection (10), has made significant

 

improvement in pupil achievement and should be released from the

 

measures that have been imposed under subsection (6) or (7), this

 

section, the state school reform/redesign officer chancellor may

 

recommend this to the superintendent of public instruction. If the

 

superintendent of public instruction agrees with the determination

 

and recommendation, the superintendent of public instruction may

 

release the public school from the measures that have been imposed

 

under subsection (6) or (7).this section and the public school

 

shall no longer be within the state reform district or subject to

 

the control of the state school redesign officer or the chancellor.

 

     (17) (14) At least annually, the state school reform/redesign

 

redesign officer and the chancellor shall submit a report to the

 

governor, the superintendent of public instruction, and the

 

standing committees of the senate and house of representatives

 

having jurisdiction over education legislation on the progress

 


being made in improving pupil proficiency due to the measures under

 

this section.

 

     (18) (15) As soon as practicable after the federal department

 

of education has adopted the final work rules and formula for

 

identifying the lowest achieving 5% of all public schools in this

 

state 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, known as

 

the "race to the top" grant program, and under 20 USC 6303(g), the

 

department shall post all of the following on its website:

 

     (a) The federal work rules and formula.

 

     (b) A list of the public schools in this state that have been

 

identified for these purposes as being among the lowest achieving

 

5% of all public schools in this state. The department shall update

 

this list as it considers appropriate.each year when the new list

 

for that year is published under subsection (1).

 

     (19) (16) If a public school that is included on the list

 

under subsection (1) is operated by a school district in which an

 

emergency manager is in place under the local government and school

 

district fiscal accountability act, 1990 PA 72, MCL 141.1201 to

 

141.1291, then the superintendent of public instruction shall not

 

issue an order placing the school under the supervision of the

 

state school reform/redesign redesign officer.

 

     (20) The board of a school district or board of directors of a

 

public school academy shall not take any action that is

 

inconsistent with or interferes with the powers and duties under

 

this act of the education achievement authority, the state reform

 


district, the state redesign officer, the chancellor, or a chief

 

executive officer under this section.

 

     (21) As used in this section:

 

     (a) "Achievement authority" means the education achievement

 

authority described in part 7c.

 

     (b) "Chancellor" means the chancellor of the achievement

 

authority.

 

     Sec. 1701b. For the purposes of ensuring that a student with a

 

disability enrolled in an achievement school is provided with

 

special education programs and services, the achievement authority

 

is considered to be a local school district under this article.

 

     Sec. 1701c. For the purposes of ensuring that a student with a

 

disability enrolled in a university school is provided with special

 

education programs and services, the university school is

 

considered to be a local school district under this article.