HB-5392, As Passed House, April 26, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 5392

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending section 101 (MCL 388.1701), as amended by 2010 PA 110.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 101. (1) To be eligible to receive state aid under this

act, not later than the fifth Wednesday after the pupil membership

count day and not later than the fifth Wednesday after the

supplemental count day, each district superintendent shall submit

to the center and the intermediate superintendent, in the form and

manner prescribed by the center, the number of pupils enrolled and

in regular daily attendance in the district as of the pupil

membership count day and as of the supplemental count day, as

applicable, for the current school year. In addition, a district

maintaining school during the entire year, as provided under

section 1561 of the revised school code, MCL 380.1561, shall submit

to the center and the intermediate superintendent, in the form and

manner prescribed by the center, the number of pupils enrolled and

in regular daily attendance in the district for the current school

year pursuant to rules promulgated by the superintendent. Not later

than the seventh Wednesday after the pupil membership count day and

not later than the seventh Wednesday after the supplemental count

day, the district shall certify the data in a form and manner

prescribed by the center and file the certified data with the

intermediate superintendent. If a district fails to submit and

certify the attendance data, as required under this subsection, the

center shall notify the department and state aid due to be

distributed under this act shall be withheld from the defaulting

district immediately, beginning with the next payment after the

failure and continuing with each payment until the district

complies with this subsection. If a district does not comply with

this subsection by the end of the fiscal year, the district

forfeits the amount withheld. A person who willfully falsifies a

figure or statement in the certified and sworn copy of enrollment

shall be punished in the manner prescribed by section 161.

(2) To be eligible to receive state aid under this act, not

later than the twenty-fourth Wednesday after the pupil membership

count day and not later than the twenty-fourth Wednesday after the

supplemental count day, an intermediate district shall submit to

the center, in a form and manner prescribed by the center, the

audited enrollment and attendance data for the pupils of its

constituent districts and of the intermediate district. If an

intermediate district fails to submit the audited data as required

under this subsection, state aid due to be distributed under this

act shall be withheld from the defaulting intermediate district

immediately, beginning with the next payment after the failure and

continuing with each payment until the intermediate district

complies with this subsection. If an intermediate district does not

comply with this subsection by the end of the fiscal year, the

intermediate district forfeits the amount withheld.

(3) Except as otherwise provided in ~~subsection~~ subsections

(11), (12), and (13), all of the following apply to the provision

of pupil instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours and, beginning in 2010-

2011, the required minimum number of days of pupil instruction. For

2010-2011 and for 2011-2012, the required minimum number of days of

pupil instruction is 165. Beginning in 2012-2013, the required

minimum number of days of pupil instruction is 170. However,

beginning in 2010-2011, a district shall not provide fewer days of

pupil instruction than the district provided for 2009-2010. A

district may apply for a waiver under subsection (9) from the

requirements of this subdivision.

(b) Except as otherwise provided in this act, a district

failing to comply with the required minimum hours and days of pupil

instruction under this subsection shall forfeit from its total

state aid allocation an amount determined by applying a ratio of

the number of hours or days the district was in noncompliance in

relation to the required minimum number of hours and days under

this subsection. Not later than August 1, the board of each

district shall certify to the department the number of hours and,

beginning in 2010-2011, days of pupil instruction in the previous

school year. If the district did not provide at least the required

minimum number of hours and days of pupil instruction under this

subsection, the deduction of state aid shall be made in the

following fiscal year from the first payment of state school aid. A

district is not subject to forfeiture of funds under this

subsection for a fiscal year in which a forfeiture was already

imposed under subsection (6).

conferences shall not be counted as hours or days of pupil

instruction.

(d) If a collective bargaining agreement that provides a

complete school calendar is in effect for employees of a district

as of October 19, 2009, and if that school calendar is not in

compliance with this subsection, then this subsection does not

apply to that district until after the expiration of that

collective bargaining agreement.

(e) Except as otherwise provided in subdivision (f), a

district not having at least 75% of the district's membership in

attendance on any day of pupil instruction shall receive state aid

in that proportion of 1/180 that the actual percent of attendance

bears to the specified percentage.

(f) At the request of a district that operates a department-

approved alternative education program and that does not provide

instruction for pupils in all of grades K to 12, the superintendent

may grant a waiver from the requirements of subdivision (e). in

~~order to conduct a pilot study.~~ The waiver shall indicate that an

eligible district is subject to the proration provisions of

subdivision (e) only if the district does not have at least 50% of

the district's membership in attendance on any day of pupil

instruction. In order to be eligible for this waiver, a district

must maintain records to substantiate its compliance with the

following requirements: ~~during the pilot study:~~

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil's individual education plan.

(g) A waiver granted under subdivision (f) that is granted for

the 2011-2012 fiscal year or a subsequent fiscal year remains in

effect unless it is revoked by the superintendent. The

superintendent may revoke a waiver described in this subdivision

only for a violation of the waiver standards set forth in the pupil

accounting and auditing manuals or a violation of state law.

(h) ~~(g)~~ The superintendent shall promulgate rules for the

implementation of this subsection.

(4) Except as otherwise provided in this subsection, the first

6 days or the equivalent number of hours for which pupil

instruction is not provided because of conditions not within the

control of school authorities, such as severe storms, fires,

epidemics, utility power unavailability, water or sewer failure, or

health conditions as defined by the city, county, or state health

authorities, shall be counted as hours and days of pupil

instruction. With the approval of the superintendent of public

instruction, the department shall count as hours and days of pupil

instruction for a fiscal year not more than 6 additional days or

the equivalent number of additional hours for which pupil

instruction is not provided in a district after April 1 of the

applicable school year due to unusual and extenuating occurrences

resulting from conditions not within the control of school

authorities such as those conditions described in this subsection.

Subsequent such hours or days shall not be counted as hours or days

of pupil instruction.

(5) A district shall not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) Not later than April 15 of each fiscal year, the board of

each district shall certify to the department the planned number of

hours and days of pupil instruction in the district for the school

year ending in the fiscal year. In addition to any other penalty or

forfeiture under this section, if at any time the department

determines that 1 or more of the following has occurred in a

district, the district shall forfeit in the current fiscal year

beginning in the next payment to be calculated by the department a

proportion of the funds due to the district under this act that is

equal to the proportion below the required minimum number of hours

and days of pupil instruction under subsection (3), as specified in

the following:

(a) The district fails to operate its schools for at least the

required minimum number of hours and days of pupil instruction

under subsection (3) in a school year, including hours and days

counted under subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours and days of pupil instruction under subsection (3) in a

school year, including hours and days counted under subsection (4).

(7) In providing the minimum number of hours and days of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, shall be considered to be pupil instruction time for

the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a junior reserve officer training corps (JROTC) program shall be

considered to be pupil instruction time regardless of whether the

instructor is a certificated teacher if all of the following are

met:

(i) The instructor has met all of the requirements established

by the United States department of defense and the applicable

branch of the armed services for serving as an instructor in the

junior reserve officer training corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) Except as otherwise provided in ~~subsection~~ subsections

(11), (12), and (13), the department shall apply the guidelines

under subsection (7) in calculating the full-time equivalency of

pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent may waive for a district the minimum

number of hours and days of pupil instruction requirement of

subsection (3) for a department-approved alternative education

program or another innovative program approved by the department,

including a 4-day school week. If a district applies for and

receives a waiver under this subsection and complies with the terms

of the waiver, ~~for the fiscal year covered by the waiver~~ the

district is not subject to forfeiture under this section for the

specific program covered by the waiver. If the district does not

comply with the terms of the waiver, the amount of the forfeiture

shall be calculated based upon a comparison of the number of hours

and days of pupil instruction actually provided to the minimum

number of hours and days of pupil instruction required under

subsection (3). Pupils enrolled in a department-approved

alternative education program under this subsection shall be

reported to the center in a form and manner determined by the

center. A waiver granted under this subsection that is granted for

the 2011-2012 fiscal year or a subsequent fiscal year remains in

effect unless it is revoked by the superintendent. The

superintendent may revoke a waiver described in this subdivision

only for a violation of the waiver standards set forth in the pupil

accounting and auditing manuals or a violation of state law.

(10) A district may count up to 38 hours of qualifying

professional development for teachers as hours of pupil

instruction. Professional development provided online is allowable

and encouraged, as long as the instruction has been approved by the

district. The department shall issue a list of approved online

professional development providers, which shall include the

Michigan virtual university. However, if a collective bargaining

agreement that provides more than 38 but not more than 51 hours of

professional development for teachers is in effect for employees of

a district as of October 1, 2006, then until the fiscal year that

begins after the expiration of that collective bargaining agreement

a district may count up to 51 hours of qualifying professional

development for teachers as hours of pupil instruction. A district

that elects to use this exception shall notify the department of

its election. As used in this subsection, "qualifying professional

development" means professional development that is focused on 1 or

more of the following:

(a) Achieving or improving adequate yearly progress as defined

under the no child left behind act of 2001, Public Law 107-110.

(b) Achieving accreditation or improving a school's

accreditation status under section 1280 of the revised school code,

MCL 380.1280.

the no child left behind act of 2001, Public Law 107-110.

(d) Integrating technology into classroom instruction.

(e) Maintaining teacher certification.

(11) Subsections (3), (7), and (8) do not apply to a school of

excellence that is a cyber school, as defined in section 551 of the

revised school code, MCL 380.551, and is in compliance with section

553a of the revised school code, MCL 380.553a.

(12) Notwithstanding any rule to the contrary, subsections

(3), (7), and (8) do not apply to a program that provides online or

other distance learning and meets all of the following:

(a) The program is approved by the district's board or board

of directors or by the intermediate district's board for the

purpose of awarding credit that meets the requirements of Michigan

grade level content expectations or the curriculum prescribed by

the Michigan merit standard, and the credits earned for

satisfactory completion of online courses or other credit-earning

activities is comparable to credits earned for a high school

diploma or grade progression in the district's or intermediate

district's traditional program setting. The board approval shall

allow the program director to comply with this requirement.

(b) The primary method of delivery for instruction is online

or other virtual learning. Technology using interactive television

may also serve as an appropriate means of instructional delivery.

For a district or intermediate district located where broadband

access is severely limited for the purposes of the online learning,

offline computer-based delivery of instruction and alternative

means of providing teacher-pupil interaction may be used with the

approval of the department and appropriate documentation as

required by the department.

all of the following:

(i) Is facilitated by a highly qualified certificated teacher.

(ii) Is approved by the district's board or board of directors

or by the intermediate district's board.

(iii) Generates credit toward the pupil's high school diploma or

grade progression.

(iv) The course content is aligned with the Michigan grade

level content expectations or the curriculum prescribed by the

Michigan merit standard under sections 1278a and 1278b of the

revised school code, MCL 380.1278a and 380.1278b.

(d) Each pupil enrolled in the program is required to

construct, with a mentor or a school counselor, a class schedule

that details the credits anticipated to be earned by a

predetermined course of study over the school year or a learning

plan that includes the number of credits to be earned through other

credit-earning activities comparable to credits earned for a high

school diploma or grade progression in the district's or

intermediate district's traditional program setting. Each pupil's

class schedule or learning plan shall be made current within 4

weeks of each pupil membership count day, supplemental count day,

and June 30 of each year that the pupil was enrolled. Upon request,

the district or intermediate district shall make the class schedule

or learning plan for each pupil available to the pupil accounting

auditor within 5 business days of the request.

(e) The program shall use the following academic measures, as

appropriate:

(i) Grade-appropriate Michigan education assessment program

(MEAP) assessment examinations.

(ii) The Michigan merit examination.

(iii) The MIAccess assessments developed by the department.

(f) The district or intermediate district pays any associated

tuition charges or fees for the online courses and other credit-

earning activities in the program on behalf of each pupil, and also

meets the following:

(i) The district or intermediate district offers to provide a

computer for each pupil enrolled in the program. The computer must

include internet capacity and appropriate software configuration

for use by the pupil in the home for the length of time that the

pupil is enrolled in the program.

(ii) The district or intermediate district offers to provide

broadband internet for a pupil enrolled in the program. The

broadband internet capacity shall be a minimum of 1 Mbps up/ 3 Mbps

down for use in the home for the length of time that the pupil is

enrolled in the seat time waiver program. For a district or

intermediate district located where broadband access is severely

limited for the purposes of the online learning, offline computer-

based delivery of instruction and alternative means of providing

teacher-pupil interaction may be used with the approval of the

department and appropriate documentation as required by the

department.

(g) The district or intermediate district identifies the

teacher of record for each pupil.

(h) A certificated teacher employed by the district or

intermediate district is assigned to each pupil to serve as the

mentor for the pupil. The mentor shall be available for assistance

and to monitor the pupil's progress. The mentor shall meet with or

have 2-way interaction with the pupil at least weekly.

(13) The department shall apply the following guidelines in

calculating the full-time equivalency of a pupil in a program under

subsection (12):

(a) The pupil shall have a course-specific class schedule, or

a learning plan that includes the number of credits to be earned

through the other credit-earning activities comparable to credits

earned for a high school diploma or grade progression in the

district's or intermediate district's traditional program setting,

in effect as of the most recent pupil membership count day or

supplemental count day, and the pupil shall log into at least 1

program-sponsored, online course on each pupil membership count day

or supplemental count day. Upon request, the district or

intermediate district shall provide the course-specific class

schedule and the login and other online activity reports to the

pupil accounting auditor within 5 business days of the request.

(b) Participation shall be measured by logging into at least 1

program-sponsored online course or credit-earning activity on each

pupil membership count day or supplemental count day and for 9

additional calendar days during the 30-calendar day count period

and documented weekly 2-way interaction between the on-site mentor

and pupil for each week of the count period. Except as otherwise

provided in this subsection, a pupil who does not log in on the

pupil membership count day or supplemental count day and who does

not log in during the 10 consecutive calendar days immediately

following the pupil membership count day or supplemental count day,

except for a pupil who has been excused by the district, shall not

be counted as 1.0 full-time equated membership. A pupil who is

excused from attendance on the pupil membership count day or

supplemental count day and who fails to log in within 30 calendar

days after the pupil membership count day or supplemental count day

shall not be counted as 1.0 full-time equated membership. Pupils

not counted as 1.0 full-time equated membership due to a failure to

membership for the classes for which the pupil logged in.

The district or intermediate district shall keep a login record and

documentation of weekly interaction during the count period for

each pupil and, upon request shall make these available to the

pupil accounting auditor within 5 business days of the request.

schedule or learning plan under subdivision (a) and shall generate

that portion of a full-time equivalency that a comparable on-site

course offered by the district or intermediate district would

generate.

(14) ~~(12)~~ The department shall study the actual costs of

providing distance learning or other alternative instructional

delivery that is being used in this state and shall report on its

findings to the house and senate fiscal agencies and the office of

the state budget not later than September 10, 2012. Upon request by

the department, a school of excellence described in subsection

(11), the Michigan virtual university, or a school that receives a

seat time waiver from the department under this section shall

submit to the department any data requested by the department for

the purposes of this study.

Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. 619 of the 96th Legislature is enacted into

law.