HOUSE BILL No. 4040

 

January 22, 2007, Introduced by Reps. Lemmons, Virgil Smith and Leland and referred to the Committee on Appropriations.

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 373 and 375 (MCL 380.373 and 380.375), as

 

amended by 2004 PA 303.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 373. (1) Beginning on March 26, 1999 or, if the

 

qualifying school district becomes a qualifying school district

 

after March 26, 1999, the date on which a school district becomes a

 

qualifying school district, the powers and duties of the elected

 

school board of the qualifying school district and of its secretary

 

and treasurer are suspended until the applicable date specified in

 

section 375. However, until the expiration of the current term of

 

each individual member serving as of the date the school district

 

becomes a qualifying school district, the members of the elected

 

school board of a qualifying school district may continue to meet


 

as an advisory board to provide input to the school reform board on

 

an advisory basis only. Notwithstanding section 417a or any board

 

policy, bylaw, or resolution to the contrary, these advisory board

 

members shall serve without compensation or reimbursement, and

 

funds of the qualifying school district shall not be used to staff

 

or otherwise support the advisory board in any way.

 

     (2) Beginning on March 26, 1999 or, if the qualifying school

 

district becomes a qualifying school district after March 26, 1999,

 

the date on which a school district becomes a qualifying school

 

district, and until appointment of a school reform board for a

 

qualifying school district under this part, all provisions of this

 

act that would otherwise apply to the school board of the

 

qualifying school district or to the school reform board or chief

 

executive officer apply to the mayor, and the mayor immediately may

 

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

 

board of the qualifying school district and in its secretary and

 

treasurer, and all powers and duties of the school reform board or

 

chief executive officer as provided under this part. Within 30 days

 

after appointing a school reform board under this part, the mayor

 

shall initiate a financial audit of the qualifying school district.

 

The mayor shall provide the results of this audit to the school

 

reform board.

 

     (3) Upon appointment of a school reform board for a qualifying

 

school district under this part, and until appointment of a chief

 

executive officer under section 374, all provisions of this act

 

that would otherwise apply to the school board of the qualifying

 

school district or to the chief executive officer apply to the


 

school reform board, and the school reform board immediately may

 

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

 

board of the qualifying school district and in its secretary and

 

treasurer, and all powers and duties of the chief executive officer

 

as provided under this part.

 

     (4) Upon appointment of a chief executive officer for a

 

qualifying school district under section 374, all provisions of

 

this act that would otherwise apply to the elected school board of

 

the qualifying school district apply to the chief executive

 

officer; the chief executive officer immediately may exercise all

 

the powers and duties otherwise vested by law in the elected school

 

board of the qualifying school district and in its secretary and

 

treasurer, and all additional powers and duties provided under this

 

part; and the chief executive officer accedes to all the rights,

 

duties, and obligations of the elected school board of the

 

qualifying school district. These powers, rights, duties, and

 

obligations include, but are not limited to, all of the following:

 

     (a) Authority over the expenditure of all school district

 

funds, including proceeds from bonded indebtedness and other funds

 

dedicated to capital projects.

 

     (b) Rights and obligations under collective bargaining

 

agreements and employment contracts entered into by the elected

 

school board, except for employment contracts of those employees

 

described in subsection (6).

 

     (c) Rights to prosecute and defend litigation.

 

     (d) Obligations under any judgments entered against the

 

elected school board.


 

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

 

law.

 

     (f) Authority to delegate any of the chief executive officer's

 

powers and duties to 1 or more designees, with proper supervision

 

by the school reform board.

 

     (5) In addition to his or her other powers, the chief

 

executive officer appointed under this part may terminate any

 

contract entered into by the elected school board of the qualifying

 

school district except for a collective bargaining agreement.

 

However, this subsection does not allow any termination or

 

diminishment of obligations to pay debt service on legally

 

authorized bonds. A contract terminated by a chief executive

 

officer under this subsection is void.

 

     (6) Beginning on March 26, 1999 or, if the qualifying school

 

district becomes a qualifying school district after March 26, 1999,

 

the date on which a school district becomes a qualifying school

 

district, and until appointment of a school reform board for a

 

qualifying school district under this part, each employee of the

 

qualifying school district whose position is not covered by a

 

collective bargaining agreement is employed at the will of the

 

mayor. Upon appointment of a school reform board for a qualifying

 

school district under this part, and until appointment of a chief

 

executive officer under section 374, each employee of the

 

qualifying school district whose position is not covered by a

 

collective bargaining agreement is employed at the will of the

 

school reform board. Upon appointment of a chief executive officer

 

for a qualifying school district under section 374, each employee


 

of the qualifying school district whose position is not covered by

 

a collective bargaining agreement is employed at the will of the

 

chief executive officer.

 

     (7) Not later than 90 days after the initial appointment of a

 

chief executive officer under this part, and at least annually

 

thereafter, the chief executive officer with the approval of the

 

school reform board shall develop and submit to the school district

 

accountability board created in section 376 a school district

 

improvement plan that includes at least detailed academic,

 

financial, capital, and operational goals and benchmarks for

 

improvement and a description of strategies to be used to

 

accomplish those goals and benchmarks. The plan also shall include

 

an assessment of available resources and recommendations concerning

 

additional resources or changes in statute or rule, if any, needed

 

to meet those goals and benchmarks. The plan also shall include an

 

evaluation of local school governance issues, including criteria

 

for establishing building-level governance.

 

     (8) A chief executive officer with the approval of the school

 

reform board for the qualifying school district shall submit an

 

annual report to the mayor, governor, school district

 

accountability board created in section 376, and legislature and

 

shall make the annual report available to the community in the

 

qualifying school district. The annual report shall contain at

 

least all of the following:

 

     (a) A summary of the initiatives that have been implemented to

 

improve school quality in the qualifying school district.

 

     (b) Measurements that may be useful in determining


 

improvements in school quality in the qualifying school district.

 

These measurements shall indicate changes from baseline data from

 

the school year before the appointment of the school reform board,

 

and shall include at least all of the following:

 

     (i) Standardized test scores of pupils.

 

     (ii) Dropout rates.

 

     (iii) Daily attendance figures.

 

     (iv) Enrollment figures.

 

     (v) High school completion and other pertinent completion

 

rates.

 

     (vi) Changes made in course offerings.

 

     (vii) Proportion of school district resources devoted to direct

 

educational services.

 

     (c) A description of long-term performance goals that may

 

include statewide averages or comparable measures of long-term

 

improvement.

 

     (9) A school reform board may organize and establish community

 

assistance teams to work with the school reform board to implement

 

a cohesive, full service community school program addressing the

 

needs and concerns of the qualifying school district's population.

 

The school reform board may delegate to a community assistance team

 

the authority to devise and implement family, community, cultural,

 

and recreational activities to assure that the academic mission of

 

the schools is successful. The community assistance teams may also

 

develop parental involvement activities that focus on the

 

encouragement of voluntary parenting education, enhancing parent

 

and family involvement in education, and promoting adult and family


 

literacy.

 

     (10) The Except as otherwise provided in section 375(2), the

 

mayor, superintendent of public instruction, state board, school

 

district accountability board created in section 376, this state,

 

the city in which a qualifying school district is located, a school

 

reform board established under this part, or a chief executive

 

officer or other officer appointed under section 374 is not liable

 

for any obligation of or claim against a qualifying school district

 

resulting from an action taken under this part.

 

     Sec. 375. (1) After the expiration of 5 years after the

 

initial appointment of a school reform board in a qualifying school

 

district under this part, all of the following apply:

 

     (a) The question under section 410 shall be presented to the

 

school electors of the school district as provided in that section.

 

Effective on the next January 1 occurring at least 1 year after

 

that question is presented to the school electors under section

 

410, the school district shall be governed by the system of school

 

board governance or combined chief executive officer and school

 

board governance, as applicable, as in effect in the school

 

district as a result of that ballot question.

 

     (b) Effective on the next January 1 occurring at least 1 year

 

after the question under section 410 is presented to the school

 

electors, the powers of the school reform board established for the

 

qualifying school district under this part, of the chief executive

 

officer appointed under this part, and of all other officers

 

appointed under this part cease. This subdivision does not prohibit

 

the chief executive officer from serving as the interim chief


 

executive officer under section 420, and does not prohibit the

 

chief executive officer from retaining an officer or employee

 

appointed or hired by the chief executive officer.

 

     (c) Effective on the next January 1 occurring at least 1 year

 

after the question under section 410 is presented to the school

 

electors, the provisions of this part, other than subsection (2),

 

do not apply to that qualifying school district.

 

     (2) If a qualifying school district has an operating deficit

 

as of the next January 1 occurring at least 1 year after the

 

question under section 410 is presented to the school electors,

 

this state shall assume responsibility for that operating deficit.

 

The legislature shall appropriate sufficient funds to the school

 

district to allow the school district to eliminate the operating

 

deficit. This subsection applies to a school district in which the

 

question under section 410 is presented to the school electors in

 

2004 or later.