HOUSE BILL No. 5470


     November 29, 2001, Introduced by Reps. Bishop, Kowall, Vander Veen, Cassis, Julian, Kuipers and Raczkowski and referred to the Committee on
Appropriations.


        A bill to amend 1979 PA 94, entitled

   "The state school aid act of 1979,"

   by amending section 6 (MCL 388.1606), as amended by 2000 PA 297.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
           Sec. 6.  (1) "Center program" means a program operated by a

 2
      district or intermediate district for special education pupils

 3
      from several districts in programs for the autistically impaired,

 4
      trainable mentally impaired, severely mentally impaired, severely

 5
      multiply impaired, hearing impaired, physically and otherwise

 6
      health impaired, and visually impaired.  Programs for emotionally

 7
      impaired pupils housed in buildings that do not serve regular

 8
      education pupils also qualify.  Unless otherwise approved by the

 9
      department, a center program either shall serve all constituent

10
      districts within an intermediate district or shall serve several

11
      districts with less than 50% of the pupils residing in the


   05192'01                                                 TAV                                   2

 1
      operating district.  In addition, special education center

 2
      program pupils placed part-time in noncenter programs to comply

 3
      with the least restrictive environment provisions of section 612

 4
      of part B of the individuals with disabilities education act,

 5
      title VI of Public Law 91-230, 20 U.S.C. 1412, may be considered

 6
      center program pupils for pupil accounting purposes for the time

 7
      scheduled in either a center program or a noncenter program.

 8
           (2) "District pupil retention rate" means the proportion of

 9
      pupils who have not dropped out of school in the immediately pre-

10
      ceding school year and is equal to 1 minus the quotient of the

11
      number of pupils unaccounted for in the immediately preceding

12
      school year, as determined pursuant to subsection (3), divided by

13
      the pupils of the immediately preceding school year.

14
           (3) "District pupil retention report" means a report of the

15
      number of pupils, excluding migrant and adult, in the district

16
      for the immediately preceding school year, adjusted for those

17
      pupils who have transferred into the district, transferred out of

18
      the district, transferred to alternative programs, and have grad-

19
      uated, to determine the number of pupils who are unaccounted

20
      for.  The number of pupils unaccounted for shall be calculated as

21
      determined by the department.

22
           (4) "Membership", except as otherwise provided in this act,

23
      means for  1999-2000 for a district, public school academy, uni-

24
      versity school, or intermediate district the sum of the product

25
      of .75 times the number of full-time equated pupils in grades K

26
      to 12 actually enrolled and in regular daily attendance on the

27
      pupil membership count day for the current school year, plus the



   05192'01                                   3

 1
      product of .25 times the final audited count from the

 2
      supplemental count day for the immediately preceding school

 3
      year.  Beginning in 2000-2001, membership means  2000-2001 for a

 4
      district, public school academy, university school, or intermedi-

 5
      ate district the sum of the product of .8 times the number of

 6
      full-time equated pupils in grades K to 12 actually enrolled and

 7
      in regular daily attendance on the pupil membership count day for

 8
      the current school year, plus the product of .2 times the final

 9
      audited count from the supplemental count day for the immediately

10
      preceding school year.  FOR 2001-2002, MEMBERSHIP MEANS FOR A

11
      DISTRICT, PUBLIC SCHOOL ACADEMY, UNIVERSITY SCHOOL, OR INTERMEDI-

12
      ATE DISTRICT THE SUM OF THE PRODUCT OF .9 TIMES THE NUMBER OF

13
      FULL-TIME EQUATED PUPILS IN GRADES K TO 12 ACTUALLY ENROLLED AND

14
      IN REGULAR DAILY ATTENDANCE ON THE PUPIL MEMBERSHIP COUNT DAY FOR

15
      THE CURRENT SCHOOL YEAR, PLUS THE PRODUCT OF .1 TIMES THE FINAL

16
      AUDITED COUNT FROM THE SUPPLEMENTAL COUNT DAY FOR THE IMMEDIATELY

17
      PRECEDING SCHOOL YEAR.  FOR 2002-2003 AND EACH SUCCEEDING FISCAL

18
      YEAR, MEMBERSHIP MEANS FOR A DISTRICT, PUBLIC SCHOOL ACADEMY,

19
      UNIVERSITY SCHOOL, OR INTERMEDIATE DISTRICT THE NUMBER OF

20
      FULL-TIME EQUATED PUPILS IN REGULAR DAILY ATTENDANCE ON THE PUPIL

21
      MEMBERSHIP COUNT DAY FOR THE CURRENT SCHOOL YEAR. All pupil

22
      counts used in this subsection are as determined by the depart-

23
      ment and calculated by adding the number of pupils registered for

24
      attendance plus pupils received by transfer and minus pupils lost

25
      as defined by rules promulgated by the superintendent, and as

26
      corrected by a subsequent department audit.  The amount of the

27
      foundation allowance for a pupil in membership is determined



   05192'01                                   4

 1
      under section 20.  In making the calculation of membership, all

 2
      of the following, as applicable, apply to determining the member-

 3
      ship of a district, public school academy, university school, or

 4
      intermediate district:

 5
           (a) Except as otherwise provided in this subsection, and

 6
      pursuant to subsection (6), a pupil shall be counted in member-

 7
      ship in the pupil's educating district or districts.  An individ-

 8
      ual pupil shall not be counted for more than a total of 1.0

 9
      full-time equated membership.

10
           (b) If a pupil is educated in a district other than the

11
      pupil's district of residence, if the pupil is not being educated

12
      as part of a cooperative education program, if the pupil's dis-

13
      trict of residence does not give the educating district its

14
      approval to count the pupil in membership in the educating dis-

15
      trict, and if the pupil is not covered by an exception specified

16
      in subsection (6) to the requirement that the educating district

17
      must have the approval of the pupil's district of residence to

18
      count the pupil in membership, the pupil shall not be counted in

19
      membership in any district.

20
           (c) A special education pupil educated by the intermediate

21
      district shall be counted in membership in the intermediate

22
      district.

23
           (d) A pupil placed by a court or state agency in an

24
      on-grounds program of a juvenile detention facility, a child

25
      caring institution, or a mental health institution, or a pupil

26
      funded under section 53a, shall be counted in membership in the





   05192'01                                   5

 1
      district or intermediate district approved by the department to

 2
      operate the program.

 3
           (e) A pupil enrolled in the Michigan schools for the deaf

 4
      and blind shall be counted in membership in the pupil's interme-

 5
      diate district of residence.

 6
           (f) A pupil enrolled in a vocational education program sup-

 7
      ported by a millage levied over an area larger than a single dis-

 8
      trict or in an area vocational-technical education program estab-

 9
      lished pursuant to section 690 of the revised school code,

10
      MCL 380.690, shall be counted only in the pupil's district of

11
      residence.

12
           (g) A pupil enrolled in a university school shall be counted

13
      in membership in the university school.

14
           (h) A pupil enrolled in a public school academy shall be

15
      counted in membership in the public school academy.

16
           (i) For a new district, university school, or public school

17
      academy beginning its operation after December 31, 1994, member-

18
      ship for the first 2 full or partial fiscal years of operation

19
      shall be determined as follows:

20
           (i) If operations begin before the pupil membership count

21
      day for the fiscal year, membership is the average number of

22
      full-time equated pupils in grades K to 12 actually enrolled and

23
      in regular daily attendance on the pupil membership count day for

24
      the current school year and on the supplemental count day for the

25
      current school year, as determined by the department and calcu-

26
      lated by adding the number of pupils registered for attendance on

27
      the pupil membership count day plus pupils received by transfer



   05192'01                                   6

 1
      and minus pupils lost as defined by rules promulgated by the

 2
      superintendent, and as corrected by a subsequent department

 3
      audit, plus the final audited count from the supplemental count

 4
      day for the current school year, and dividing that sum by 2.

 5
           (ii) If operations begin after the pupil membership count

 6
      day for the fiscal year and not later than the supplemental count

 7
      day for the fiscal year, membership is the final audited count of

 8
      the number of full-time equated pupils in grades K to 12 actually

 9
      enrolled and in regular daily attendance on the supplemental

10
      count day for the current school year.

11
           (j) If a district is the authorizing body for a public

12
      school academy, then, in the first school year in which pupils

13
      are counted in membership on the pupil membership count day in

14
      the public school academy, the determination of the district's

15
      membership shall exclude from the district's pupil count for the

16
      immediately preceding supplemental count day any pupils who are

17
      counted in the public school academy on that first pupil member-

18
      ship count day who were also counted in the district on the imme-

19
      diately preceding supplemental count day.

20
           (k) In a district, public school academy, university school,

21
      or intermediate district operating an extended school year pro-

22
      gram approved by the superintendent, a pupil enrolled, but not

23
      scheduled to be in regular daily attendance on a pupil membership

24
      count day, shall be counted.

25
           (l) Pupils to be counted in membership shall be not less

26
      than 5 years of age on December 1 and less than 20 years of age

27
      on September 1 of the school year except a special education



   05192'01                                   7

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      pupil who is enrolled and receiving instruction in a special

 2
      education program approved by the department and not having a

 3
      high school diploma who is less than 26 years of age as of

 4
      September 1 of the current school year shall be counted in

 5
      membership.

 6
           (m) An individual who has obtained a high school diploma

 7
      shall not be counted in membership.  An individual who has

 8
      obtained a general education development (G.E.D.)  certificate

 9
      shall not be counted in membership.  An individual participating

10
      in a job training program funded under former section 107a or a

11
      jobs program funded under former section 107b, administered by

12
      the Michigan strategic fund or the department of career develop-

13
      ment, or participating in any successor of either of those 2 pro-

14
      grams, shall not be counted in membership.

15
           (n) If a pupil counted in membership in a public school

16
      academy is also educated by a district or intermediate district

17
      as part of a cooperative education program, the pupil shall be

18
      counted in membership only in the public school academy, and the

19
      instructional time scheduled for the pupil in the district or

20
      intermediate district shall be included in the full-time equated

21
      membership determination under subdivision (q).  However, for

22
      pupils receiving instruction in both a public school academy and

23
      in a district or intermediate district but not as a part of a

24
      cooperative education program, the following apply:

25
           (i) If the public school academy provides instruction for at

26
      least 1/2 of the class hours specified in subdivision (q), the

27
      public school academy shall receive as its prorated share of the



   05192'01                                   8

 1
      full-time equated membership for each of those pupils an amount

 2
      equal to 1 times the product of the hours of instruction the

 3
      public school academy provides divided by the number of hours

 4
      specified in subdivision (q) for full-time equivalency, and the

 5
      remainder of the full-time membership for each of those pupils

 6
      shall be allocated to the district or intermediate district pro-

 7
      viding the remainder of the hours of instruction.

 8
           (ii) If the public school academy provides instruction for

 9
      less than 1/2 of the class hours specified in subdivision (q),

10
      the district or intermediate district providing the remainder of

11
      the hours of instruction shall receive as its prorated share of

12
      the full-time equated membership for each of those pupils an

13
      amount equal to 1 times the product of the hours of instruction

14
      the district or intermediate district provides divided by the

15
      number of hours specified in subdivision (q) for full-time equiv-

16
      alency, and the remainder of the full-time membership for each of

17
      those pupils shall be allocated to the public school academy.

18
           (o) An individual less than 16 years of age as of September

19
      1 of the current school year who is being educated in an alterna-

20
      tive education program shall not be counted in membership if

21
      there are also adult education participants being educated in the

22
      same program or classroom.

23
           (p) The department shall give a uniform interpretation of

24
      full-time and part-time memberships.

25
           (q) The number of class hours used to calculate full-time

26
      equated memberships shall be consistent with section  101(3)

27
      101.  In determining full-time equated memberships for pupils who



   05192'01                                   9

 1
      are enrolled in a postsecondary institution, a pupil shall not be

 2
      considered to be less than a full-time equated pupil solely

 3
      because of the effect of his or her postsecondary enrollment,

 4
      including necessary travel time, on the number of class hours

 5
      provided by the district to the pupil.

 6
           (r) Full-time equated memberships for pupils in kindergarten

 7
      shall be determined by dividing the number of class hours sched-

 8
      uled and provided per year per kindergarten pupil by a number

 9
      equal to 1/2 the number used for determining full-time equated

10
      memberships for pupils in grades 1 to 12.

11
           (s) For a district, university school, or public school

12
      academy that has pupils enrolled in a grade level that was not

13
      offered by the district, university school, or public school

14
      academy in the immediately preceding school year, the number of

15
      pupils enrolled in that grade level to be counted in membership

16
      is the average of the number of those pupils enrolled and in reg-

17
      ular daily attendance on the pupil membership count day and the

18
      supplemental count day of the current school year, as determined

19
      by the department.  Membership shall be calculated by adding the

20
      number of pupils registered for attendance in that grade level on

21
      the pupil membership count day plus pupils received by transfer

22
      and minus pupils lost as defined by rules promulgated by the

23
      superintendent, and as corrected by subsequent department audit,

24
      plus the final audited count from the supplemental count day for

25
      the current school year, and dividing that sum by 2.

26
           (t) A pupil enrolled in a cooperative education program may

27
      be counted in membership in the pupil's district of residence



   05192'01                                  10

 1
      with the written approval of all parties to the cooperative

 2
      agreement.

 3
           (u) If, as a result of a disciplinary action, a district

 4
      determines through the district's alternative or disciplinary

 5
      education program that the best instructional placement for a

 6
      pupil is in the pupil's home, if that placement is authorized in

 7
      writing by the district superintendent and district alternative

 8
      or disciplinary education supervisor, and if the district pro-

 9
      vides appropriate instruction as described in this subdivision to

10
      the pupil at the pupil's home, the district may count the pupil

11
      in membership on a pro rata basis, with the proration based on

12
      the number of hours of instruction the district actually provides

13
      to the pupil divided by the number of hours specified in

14
      subdivision (q) for full-time equivalency.  For the purposes of

15
      this subdivision, a district shall be considered to be providing

16
      appropriate instruction if all of the following are met:

17
           (i) The district provides at least 2 nonconsecutive hours of

18
      instruction per week to the pupil at the pupil's home under the

19
      supervision of a certificated teacher.

20
           (ii) The district provides instructional materials,

21
      resources, and supplies, except computers, that are comparable to

22
      those otherwise provided in the district's alternative education

23
      program.

24
           (iii) Course content is comparable to that in the district's

25
      alternative education program.

26
           (iv) Credit earned is awarded to the pupil and placed on the

27
      pupil's transcript.



   05192'01                                  11

 1
           (v) A pupil enrolled in an alternative or disciplinary

 2
      education program described in section 25 shall be counted in

 3
      membership in the district or public school academy that expelled

 4
      the pupil.

 5
           (w) If a pupil was enrolled in a public school academy on

 6
      the pupil membership count day, if the public school academy's

 7
      contract with its authorizing body is revoked, and if the pupil

 8
      enrolls in a district within 45 days after the pupil membership

 9
      count day, the department shall adjust the district's pupil count

10
      for the pupil membership count day to include the pupil in the

11
      count.

12
           (x) For  1999-2000, for a public school academy that has

13
      been in operation for at least 2 years and that suspended opera-

14
      tions for at least 1 semester and is resuming operations, member-

15
      ship is the sum of the product of .75 times the number of

16
      full-time equated pupils in grades K to 12 actually enrolled and

17
      in regular daily attendance on the first pupil membership count

18
      day or supplemental count day, whichever is first, occurring

19
      after operations resume, plus the product of .25 times the final

20
      audited count from the most recent pupil membership count day or

21
      supplemental count day that occurred before suspending opera-

22
      tions, as determined by the superintendent.  Beginning in

23
      2000-2001, for  a public school academy that has been in opera-

24
      tion for at least 2 years and that suspended operations for at

25
      least 1 semester and is resuming operations, membership is the

26
      sum of the product of .8 times the number of full-time equated

27
      pupils in grades K to 12 actually enrolled and in regular daily



   05192'01                                  12

 1
      attendance on the first pupil membership count day or

 2
      supplemental count day, whichever is first, occurring after oper-

 3
      ations resume, plus the product of .2 times the final audited

 4
      count from the most recent pupil membership count day or supple-

 5
      mental count day that occurred before suspending operations, as

 6
      determined by the superintendent.

 7
           (y) For 2000-2001 only, if a district's membership for a

 8
      particular  THAT fiscal year, as otherwise calculated under this

 9
      subsection, would be less than 1,550 pupils, the district's mem-

10
      bership for that fiscal year shall be considered to be the

11
      greater of the following:

12
           (i) The average of the district's membership for the

13
      3-fiscal-year period ending with that fiscal year, calculated by

14
      adding the district's actual membership for that fiscal year, as

15
      otherwise calculated under this subsection, plus the district's

16
      membership for each of the 2 immediately preceding fiscal years,

17
      and dividing the sum of those 3 membership figures by 3.

18
           (ii) The district's actual membership as otherwise calcu-

19
      lated under this subsection.

20
           (5) "Public school academy" means a public school academy or

21
      strict discipline academy operating under the revised school

22
      code.

23
           (6) "Pupil" means a person in membership in a public

24
      school.  A district must have the approval of the pupil's dis-

25
      trict of residence to count the pupil in membership, except

26
      approval by the pupil's district of residence shall not be

27
      required for any of the following:



   05192'01                                  13

 1
           (a) A nonpublic part-time pupil enrolled in grades 1 to 12

 2
      in accordance with section 166b.

 3
           (b) A pupil receiving 1/2 or less of his or her instruction

 4
      in a district other than the pupil's district of residence.

 5
           (c) A pupil enrolled in a public school academy or univer-

 6
      sity school.

 7
           (d) A pupil enrolled in a district other than the pupil's

 8
      district of residence under an intermediate district schools of

 9
      choice pilot program as described in section 91a or former

10
      section 91 if the intermediate district and its constituent dis-

11
      tricts have been exempted from section 105.

12
           (e) A pupil enrolled in a district other than the pupil's

13
      district of residence but within the same intermediate district

14
      if the educating district enrolls nonresident pupils in accord-

15
      ance with section 105.

16
           (f) A pupil enrolled in a district other than the pupil's

17
      district of residence if the pupil has been continuously enrolled

18
      in the educating district since a school year in which the pupil

19
      enrolled in the educating district under section 105 or 105c and

20
      in which the educating district enrolled nonresident pupils in

21
      accordance with section 105 or 105c.

22
           (g) A nonresident  pupil who has made an official written

23
      complaint or whose parent or legal guardian has made an official

24
      written complaint to law enforcement officials and to school

25
      officials of the pupil's district of residence that the pupil has

26
      been the victim of a criminal sexual assault or other serious

27
      assault, if the official complaint either indicates that the



   05192'01                                  14

 1
      assault occurred at school or that the assault was committed by 1

 2
      or more other pupils enrolled in the school the  nonresident

 3
      pupil would otherwise attend in the district of residence or by

 4
      an employee of the district of residence.  A person who inten-

 5
      tionally makes a false report of a crime to law enforcement offi-

 6
      cials for the purposes of this subdivision is subject to section

 7
      411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, which

 8
      provides criminal penalties for that conduct.  As used in this

 9
      subdivision:

10
           (i) "At school" means in a classroom, elsewhere on school

11
      premises, on a school bus or other school-related vehicle, or at

12
      a school-sponsored activity or event whether or not it is held on

13
      school premises.

14
           (ii) "Serious assault" means an act that constitutes a

15
      felony violation of chapter XI of the Michigan penal code, 1931

16
      PA 328, MCL 750.81 to 750.90g, or that constitutes an assault and

17
      infliction of serious or aggravated injury under section 81a of

18
      the Michigan penal code, 1931 PA 328, MCL 750.81a.

19
           (h) A pupil enrolled in a district located in a contiguous

20
      intermediate district, as described in section 105c, if the edu-

21
      cating district enrolls those nonresident pupils in accordance

22
      with section 105c.

23
           (i) A pupil whose district of residence changed after the

24
      pupil membership count day and before the supplemental count day

25
      and who continues to be enrolled on the supplemental count day as

26
      a nonresident in the district in which he or she was enrolled as





   05192'01                                  15

 1
      a resident on the pupil membership count day of the same school

 2
      year.

 3
           (j) A pupil enrolled in an alternative education program

 4
      operated by a district other than his or her district of resi-

 5
      dence who meets 1 or more of the following:

 6
           (i) The pupil has been suspended or expelled from his or her

 7
      district of residence for any reason, including, but not limited

 8
      to, a suspension or expulsion under section 1310, 1311, or 1311a

 9
      of the revised school code, MCL 380.1310, 380.1311, and

10
      380.1311a.

11
           (ii) The pupil had previously dropped out of school.

12
           (iii) The pupil is pregnant or is a parent.

13
           (iv) The pupil has been referred to the program by a court.

14
           (k) A pupil enrolled in the Michigan virtual high school,

15
      for the pupil's enrollment in the Michigan virtual high school.

16
           However, if a district that is not a first class district

17
      educates pupils who reside in a first class district and if the

18
      primary instructional site for those pupils is located within the

19
      boundaries of the first class district, the educating district

20
      must have the approval of the first class district to count those

21
      pupils in membership.  As used in this subsection, "first class

22
      district" means a district organized as a school district of the

23
      first class under the revised school code.

24
           (7) "Pupil membership count day" of a district or intermedi-

25
      ate district means:

26
           (a) Except as provided in subdivision (b), the fourth

27
      Wednesday in September each school year.



   05192'01                                  16

 1
           (b) For a district or intermediate district maintaining

 2
      school during the entire school year, the following days:

 3
           (i) Fourth Wednesday in July.

 4
           (ii) Fourth Wednesday in September.

 5
           (iii) Second Wednesday in February.

 6
           (iv) Fourth Wednesday in April.

 7
           (8) "Pupils in grades K to 12 actually enrolled and in regu-

 8
      lar daily attendance" means pupils in grades K to 12 in

 9
      attendance and receiving instruction in all classes for which

10
      they are enrolled on the pupil membership count day or the sup-

11
      plemental count day, as applicable.  A pupil who is absent from

12
      any of the classes in which the pupil is enrolled on the pupil

13
      membership count day or supplemental count day and who does not

14
      attend each of those classes during the 10 consecutive school

15
      days immediately following the pupil membership count day or sup-

16
      plemental count day, except for a pupil who has been excused by

17
      the district, shall not be counted as 1.0 full-time equated

18
      membership.  In addition, a pupil who is excused from attendance

19
      on the pupil membership count day or supplemental count day and

20
      who fails to attend each of the classes in which the pupil is

21
      enrolled within 30 calendar days after the pupil membership count

22
      day or supplemental count day shall not be counted as 1.0

23
      full-time equated membership.  Pupils not counted as 1.0

24
      full-time equated membership due to an absence from a class shall

25
      be counted as a prorated membership for the classes the pupil

26
      attended.  For purposes of this subsection, "class" means a

27
      period of time in 1 day when pupils and a certificated teacher or



   05192'01                                  17

 1
      legally qualified substitute teacher are together and instruction

 2
      is taking place.

 3
           (9) "Rule" means a rule promulgated pursuant to the adminis-

 4
      trative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 5
      24.328.

 6
           (10) "The revised school code" means 1976 PA 451, MCL 380.1

 7
      to 380.1852.

 8
           (11) "School fiscal year" means a fiscal year that commences

 9
      July 1 and continues through June 30.

10
           (12) "State board" means the state board of education.

11
           (13) "Superintendent", unless the context clearly refers to

12
      a district or intermediate district superintendent, means the

13
      superintendent of public instruction described in section 3 of

14
      article VIII of the state constitution of 1963.

15
           (14) "Supplemental count day" means the day on which the

16
      supplemental pupil count is conducted under section 6a.

17
           (15) "Tuition pupil" means a pupil of school age attending

18
      school in a district other than the pupil's district of residence

19
      for whom tuition may be charged.  Tuition pupil does not include

20
      a pupil who is a special education pupil or a pupil described in

21
      subsection (6)(d) to (k).  A pupil's district of residence shall

22
      not require a high school tuition pupil, as provided under sec-

23
      tion 111, to attend another school district after the pupil has

24
      been assigned to a school district.

25
           (16) "State school aid fund" means the state school aid fund

26
      established in section 11 of article IX of the state constitution

27
      of 1963.



   05192'01                                  18

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           (17) "Taxable value" means the taxable value of property as

 2
      determined under section 27a of the general property tax act,

 3
      1893 PA 206, MCL 211.27a.

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           (18) "Total state aid" or "total state school aid" means the

 5
      total combined amount of all funds due to a district, intermedi-

 6
      ate district, or other entity under all of the provisions of this

 7
      act.

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           (19) "University school" means an instructional program

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      operated by a public university under section 23 that meets the

10
      requirements of section 23.




































   05192'01          Final page.                            TAV