SB-0620, As Passed Senate, June 6, 2012

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 620

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 3, 5, and 1280c (MCL 380.3, 380.5, and

 

380.1280c), section 3 as amended by 2007 PA 45, section 5 as

 

amended by 2011 PA 232, and section 1280c as amended by 2011 PA 8,

 

and by adding part 6d.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 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.

 


     (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.

 

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

 

local school district unless clearly otherwise stated.

 

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

 

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

 

     (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.

 

     (6) "Conversion school" means a conversion school established

 

under part 6d.

 

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

 


district" means a 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.

 

     (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, conversion

 

school 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.

 

     (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

 

conversion school established under part 6d, a school of excellence

 

established under part 6e, and a strict discipline academy

 

established under sections 1311b to 1311l.

 

     (8) "Pupil membership count day" of a school district 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 642 or

 

642a of the Michigan election law, MCL 168.642 and 168.642a.

 

     (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.

 

PART 6D

 

CONVERSION SCHOOLS

 

     Sec. 531. (1) A conversion school is a public school under

 

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

 

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

 


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

 

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

 

supervision of the state board over all public education under

 

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

 

conversion school is a body corporate and is a governmental agency.

 

The powers granted to a conversion school under this part

 

constitute the performance of essential public purposes and

 

governmental functions of this state.

 

     (2) As used in this part:

 

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

 

a contract as provided in this part:

 

     (i) The board of a school district.

 

     (ii) An intermediate school board.

 

     (iii) The board of a community college.

 

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

 

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

 

subparagraphs (i) to (iv) exercising power, privilege, or authority

 

jointly pursuant to an interlocal agreement under the urban

 

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

 

124.512.

 

     (vi) Any of the public agencies described in subparagraphs (i)

 

to (v) acting jointly with the school district that previously

 

operated the school that is converted to a conversion school.

 

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

 

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

 

389.195, or a federal tribally controlled community college that is

 

recognized under the tribally controlled community college

 


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

 

determined by the department to meet the requirements for

 

accreditation by a recognized regional accrediting body.

 

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

 

body that evidences the authorization of a conversion school and

 

that establishes, subject to the constitutional powers of the state

 

board and applicable law, the written instrument executed by an

 

authorizing body conferring certain rights, franchises, privileges,

 

and obligations on a conversion school, as provided by this part,

 

and confirming the status of a conversion school as a public school

 

in this state.

 

     (d) "Conversion school" means a public school previously

 

operated by a school district that is converted to a conversion

 

school established and operated under this part.

 

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

 

enters into an agreement with the board of directors of a

 

conversion school to provide comprehensive educational,

 

administrative, management, or instructional services or staff to

 

the conversion school.

 

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

 

corporation, labor organization, or any other association,

 

corporation, trust, or other legal entity.

 

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

 

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

 

constitution of 1963.

 

     Sec. 533. (1) A conversion school shall be organized and

 

administered under the direction of a board of directors in

 


accordance with this part and with bylaws adopted by the board of

 

directors. A conversion school corporation shall be organized under

 

the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

 

450.3192, except that a conversion school corporation is not

 

required to comply with sections 170 to 177 of 1931 PA 327, MCL

 

450.170 to 450.177. To the extent disqualified under the state or

 

federal constitution, a conversion school shall not be organized by

 

a church or other religious organization and shall not have any

 

organizational or contractual affiliation with or constitute a

 

church or other religious organization.

 

     (2) Subject to subsection (3), any of the following may act as

 

an authorizing body to issue a contract to organize and operate a

 

conversion school under this part:

 

     (a) The board of a school district. However, the board of a

 

school district shall not issue a contract for a conversion school

 

to operate outside the school district's boundaries, and a

 

conversion school authorized by the board of a school district

 

shall not operate outside that school district's boundaries.

 

     (b) An intermediate school board. However, an intermediate

 

school board shall not issue a contract for a conversion school to

 

operate outside the intermediate school district's boundaries, and

 

a conversion school authorized by an intermediate school board

 

shall not operate outside that intermediate school district's

 

boundaries.

 

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

 

community college shall not issue a contract for a conversion

 

school to operate outside the boundaries of the community college

 


district, and a conversion school authorized by the board of a

 

community college shall not operate outside the boundaries of the

 

community college district.

 

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

 

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

 

subdivisions (a) to (d) exercising power, privilege, or authority

 

jointly pursuant to an interlocal agreement under the urban

 

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

 

124.512.

 

     (f) Any of the public agencies described in subdivisions (a)

 

to (e) acting jointly with the school district that previously

 

operated the public school that is to be converted to a conversion

 

school.

 

     (3) A public school operated by a school district may be

 

converted to and operated as a conversion school as provided under

 

this part pursuant to a parental petition under section 1280c. A

 

public school operated by a school district may not be converted to

 

a conversion school that is organized and operated under this part

 

unless the public school is on the list required under section

 

1280c 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. To obtain a contract to convert a

 

public school operated by a school district to a conversion school

 

that is organized and operated under this part, 1 or more persons

 

or an entity shall apply to an authorizing body for a contract to

 

organize and operate the school as a conversion school.

 

     (4) An authorizing body may issue a contract to organize and

 


operate a conversion school if all of the following are submitted

 

to that authorizing body:

 

     (a) An application for a conversion school contract that meets

 

the requirements for an application under subsection (5).

 

     (b) A copy of the parental petition submitted and certified

 

under section 1280c that recommends that restart option under that

 

section.

 

     (c) Evidence satisfactory to the authorizing body that the

 

public school to be converted is on the list required under section

 

1280c 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.

 

     (5) The application for a contract to organize and operate a

 

conversion school shall include at least all of the following:

 

     (a) Identification of the applicant for the contract.

 

     (b) Subject to the resolution adopted by the authorizing body

 

under section 535(3), if any, a list of the proposed members of the

 

board of directors of the conversion school and a description of

 

the qualifications and method for appointment or election of

 

members of the board of directors.

 

     (c) The proposed articles of incorporation, which shall

 

include at least all of the following:

 

     (i) The name of the proposed conversion school.

 

     (ii) The purposes for the conversion school corporation. This

 

language shall provide that the conversion school is incorporated

 

pursuant to this part and that the conversion school corporation is

 

a governmental entity.

 


     (iii) The name of the authorizing body.

 

     (iv) The proposed time when the articles of incorporation will

 

be effective.

 

     (v) Other matters considered expedient to be in the articles

 

of incorporation.

 

     (d) A copy of the proposed bylaws of the conversion school.

 

     (e) Documentation meeting the application requirements of the

 

authorizing body, if any, including at least all of the following:

 

     (i) The governance structure of the conversion school.

 

     (ii) A copy of the educational goals of the conversion school

 

and the curricula to be offered and methods of pupil assessment to

 

be used by the conversion school. The educational goals shall

 

include making measurable progress toward improved pupil academic

 

achievement for all groups of pupils and toward meeting the

 

specific goals required to be in the contract under section

 

535(4)(a). To the extent applicable, the progress of the pupils in

 

the conversion school shall be assessed using at least a Michigan

 

education assessment program (MEAP) test or the Michigan merit

 

examination developed under section 1279g.

 

     (iii) The admission policy and criteria to be maintained by the

 

conversion school. The admission policy and criteria shall comply

 

with section 537. This part of the application also shall include a

 

description of how the applicant will provide to the general public

 

adequate notice that a conversion school is being created and

 

adequate information on the admission policy, criteria, and

 

process.

 

     (iv) The school calendar and school day schedule.

 


     (v) The age or grade range of pupils to be enrolled. A

 

conversion school shall include at least all of the grades that

 

were previously operated by the school that was converted.

 

     (f) The school year when the conversion school is to begin

 

operating. This school year must be a school year that begins at

 

least 9 months after the date that the petition and application are

 

submitted to the authorizing body under subsection (4). A

 

conversion school shall begin operating at the beginning of a

 

school year and may not begin operating during a school year that

 

has already begun.

 

     (g) Descriptions of staff responsibilities and of the

 

conversion school's governance structure.

 

     (h) The documentation required under subsection (4).

 

     (i) An agreement that the conversion school will comply with

 

the provisions of this part and, subject to the provisions of this

 

part, with all other state law applicable to public bodies and with

 

federal law applicable to public bodies or school districts.

 

     (6) An authorizing body shall oversee, or shall contract with

 

an intermediate school district, community college, or state public

 

university to oversee, the board of directors of each conversion

 

school operating under a contract issued by the authorizing body.

 

The authorizing body is responsible for overseeing compliance by

 

the board of directors with the contract and all applicable law.

 

     (7) If the superintendent of public instruction finds that an

 

authorizing body is not engaging in appropriate continuing

 

oversight of 1 or more boards of directors of conversion schools

 

operating under a contract issued by the authorizing body, the

 


superintendent of public instruction may suspend the power of the

 

authorizing body to issue new contracts to organize and operate

 

conversion schools. A contract issued by the authorizing body

 

during the suspension is void. A contract issued by the authorizing

 

body before the suspension is not affected by the suspension.

 

     (8) An authorizing body shall not charge a fee, or require

 

reimbursement of expenses, for considering an application for a

 

contract, for issuing a contract, or for providing oversight of a

 

contract for a conversion school in an amount that exceeds a

 

combined total of 3% of the total state school aid received by the

 

conversion school in the school year in which the fees or expenses

 

are charged. An authorizing body may provide other services for a

 

conversion school and charge a fee for those services, but shall

 

not require such an arrangement as a condition to issuing the

 

contract authorizing the conversion school.

 

     (9) A conversion school shall be presumed to be legally

 

organized if it has exercised the franchises and privileges of a

 

conversion school for at least 2 years.

 

     (10) An authorizing body may enter into an intergovernmental

 

agreement with another authorizing body to issue conversion school

 

contracts. At a minimum, the agreement shall further the purposes

 

set forth in section 531(1), describe which authorizing body shall

 

issue the contract, and set forth which authorizing body will be

 

responsible for monitoring compliance by the board of directors of

 

the conversion school with the contract and all applicable law.

 

     Sec. 535. (1) An authorizing body is not required to issue a

 

contract to any person or entity. A conversion school contract

 


shall be issued on a competitive basis taking into consideration

 

the resources available for the proposed conversion school, the

 

population to be served by the proposed conversion school, and the

 

educational goals to be achieved by the proposed conversion school.

 

     (2) Within 10 days after issuing a contract for a conversion

 

school, the authorizing body shall submit to the superintendent of

 

public instruction a copy of the contract.

 

     (3) An authorizing body shall adopt a resolution establishing

 

the method of selection, length of term, and number of members of

 

the board of directors of each conversion school subject to its

 

jurisdiction.

 

     (4) A contract issued to organize and administer a conversion

 

school shall contain at least all of the following:

 

     (a) The educational goals the conversion school is to achieve

 

and the methods by which it will be held accountable. These goals

 

shall include making measurable progress toward improved pupil

 

academic achievement for all groups of pupils and toward meeting

 

specific goals for improvement in pupil performance that must be

 

met by the conversion school. These goals shall include making

 

measurable progress toward at least 80% of the conversion school's

 

pupils graduating from high school or being determined to be on

 

track to graduate from high school and toward the conversion school

 

having at least 80% average attendance as determined by the

 

department. To the extent applicable, the pupil performance of a

 

conversion school shall be assessed using at least a Michigan

 

education assessment program (MEAP) test or the Michigan merit

 

examination developed under section 1279g.

 


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

 

compliance by the conversion school's board of directors with

 

applicable law and its performance in meeting its targeted

 

educational objectives.

 

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

 

during the term of the contract.

 

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

 

contract.

 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 543(4).

 

     (f) The address for the school that will be converted to the

 

conversion school.

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by a

 

certified public accountant in accordance with generally accepted

 

governmental auditing principles.

 

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

 

and standards for renewing a contract at the end of the term. The

 

term of an initial contract for a conversion school shall not

 

exceed 5 years from the beginning of the school year when the

 

conversion school is to begin operating, as contained in the

 

application for the contract under section 533. The standards for

 

renewing a contract shall include increases in pupil academic

 

achievement for all groups of pupils as measured by assessments and

 

other objective criteria as the most important factor in the

 

decision of whether or not to issue a new contract.

 


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

 

board of directors of the conversion school, that the conversion

 

school will comply with the contract and all applicable law.

 

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

 

conversion school shall ensure compliance with the requirements of

 

1968 PA 317, MCL 15.321 to 15.330.

 

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

 

conversion school shall prohibit specifically identified family

 

relationships between members of the board of directors,

 

individuals who have an ownership interest in or who are officers

 

or employees of an educational management organization involved in

 

the operation of the conversion school, and employees of the

 

conversion school. The contract shall identify the specific

 

prohibited relationships consistent with applicable law.

 

     (l) A requirement that the board of directors of the conversion

 

school shall make information concerning its operation and

 

management available to the public and to the authorizing body in

 

the same manner as is required by state law for school districts.

 

     (m) A requirement that the board of directors of the

 

conversion school shall collect, maintain, and make available to

 

the public and the authorizing body, in accordance with applicable

 

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

 

concerning the operation and management of the conversion school:

 

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

 

the conversion school.

 

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

 

directors of the conversion school, including name, address, and

 


term of office; copies of policies approved by the board of

 

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

 

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

 

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

 

as they were submitted to the board of directors.

 

     (iii) Quarterly financial reports submitted to the authorizing

 

body.

 

     (iv) A current list of teachers and school administrators

 

working at the conversion school that includes their individual

 

salaries as submitted to the registry of educational personnel;

 

copies of the teaching or school administrator's certificates or

 

permits of current teaching and administrative staff; and evidence

 

of compliance with the criminal background and records checks and

 

unprofessional conduct check required under sections 1230, 1230a,

 

and 1230b for all teachers and administrators working at the

 

conversion school.

 

     (v) Curriculum documents and materials given to the

 

authorizing body.

 

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

 

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

 

equipment leases.

 

     (viii) Copies of any management contracts or services contracts

 

approved by the board of directors.

 

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

 

those relating to fire safety, environmental matters, asbestos

 

inspection, boiler inspection, and food service.

 

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

 


financial audit under subdivision (g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (n) A requirement that the authorizing body must review and

 

may disapprove any agreement between the board of directors of the

 

conversion school and an educational management organization before

 

the agreement is final and valid. An authorizing body may

 

disapprove an agreement described in this subdivision only if the

 

agreement is contrary to the contract or applicable law.

 

     (o) A requirement that the board of directors of the

 

conversion school shall demonstrate all of the following to the

 

satisfaction of the authorizing body with regard to its pupil

 

admission process:

 

     (i) That the conversion school has made a reasonable effort to

 

advertise its enrollment openings.

 

     (ii) That the conversion school has made the following

 

additional efforts to recruit pupils who are eligible for special

 

education programs and services or English as a second language

 

services to apply for admission:

 

     (A) Reasonable efforts to advertise all enrollment openings to

 

organizations and media that regularly serve and advocate for

 

individuals with disabilities or children with limited English-

 

speaking ability within the boundaries of the intermediate school

 

district in which the conversion school is located.

 

     (B) Inclusion in all pupil recruitment materials of a

 

statement that appropriate special education services and English

 

as a second language services will be made available to pupils

 


attending the school as required by law.

 

     (iii) That the open enrollment period for the conversion school

 

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

 

include some evening and weekend times.

 

     (p) A requirement that the board of directors of the

 

conversion school shall prohibit any individual from being employed

 

by the conversion school in more than 1 full-time position and

 

simultaneously being compensated at a full-time rate for each of

 

those positions.

 

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

 

of the conversion school shall report to the authorizing body the

 

total compensation for each individual working at the conversion

 

school.

 

     (5) A conversion school shall comply with all applicable law,

 

including all of the following:

 

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

 

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

 

15.246.

 

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

 

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

 

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

 

     (f) Law concerning participation in state assessments, data

 

collection systems, state-level student growth models, state

 

accountability and accreditation systems, and other public

 

comparative data collection required for public schools.

 

     (6) A conversion school and its incorporators, board members,

 

officers, employees, and volunteers have governmental immunity as

 


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

 

body and its board members, officers, and employees are immune from

 

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

 

omission in authorizing a conversion school if the authorizing body

 

or the person acted or reasonably believed he or she acted within

 

the authorizing body's or the person's scope of authority.

 

     (7) A conversion school is exempt from all taxation on its

 

earnings and property. Instruments of conveyance to or from a

 

conversion school are exempt from all taxation including taxes

 

imposed by 1966 PA 134, MCL 207.501 to 207.513. Unless the property

 

is already fully exempt from real and personal property taxes under

 

the general property tax act, 1893 PA 206, MCL 211.1 to 211.155,

 

property occupied by a public school academy and used exclusively

 

for educational purposes is exempt from real and personal property

 

taxes levied for school operating purposes under section 1211, to

 

the extent exempted under that section, and from real and personal

 

property taxes levied under the state education tax act, 1993 PA

 

331, MCL 211.901 to 211.906. A conversion school may not levy ad

 

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

 

operation of 1 or more conversion schools by a school district or

 

intermediate school district does not affect the ability of the

 

school district or intermediate school district to levy ad valorem

 

property taxes or another tax.

 

     (8) If a school district or intermediate school district

 

applies for and obtains a contract to operate 1 or more conversion

 

schools under this part, the power of the school district or

 

intermediate school district to levy taxes for any purpose under

 


this act is not affected by the operation of a conversion school by

 

the school district or intermediate school district. Revenue from

 

taxes levied by a school district or intermediate school district

 

under this act or bonds issued by a school district or intermediate

 

school district under this act may be used to support the operation

 

or facilities of a conversion school operated by the school

 

district or intermediate school district in the same manner as that

 

revenue may be used under this act by the school district or

 

intermediate school district to support school district or

 

intermediate school district operations and facilities. This

 

section does not authorize a school district or intermediate school

 

district to levy taxes or to issue bonds for any purpose that is

 

not otherwise authorized under this act.

 

     (9) An agreement, mortgage, loan, or other instrument of

 

indebtedness entered into by a conversion school and a third party

 

does not constitute an obligation, either general, special, or

 

moral, of this state or an authorizing body. 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 an authorizing body, may not

 

be pledged for the payment of any conversion school bond, note,

 

agreement, mortgage, loan, or other instrument of indebtedness.

 

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

 

on an authorizing body for any debt incurred by a conversion

 

school.

 

     (11) A member of the board of directors of a conversion school

 

is a public officer and shall, before entering upon the duties of

 

the office, take the constitutional oath of office for public

 


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

 

1963.

 

     Sec. 536. A conversion school shall begin operating at the

 

beginning of a school year and may not begin operating during a

 

school year that has already begun.

 

     Sec. 537. (1) A conversion school shall not charge tuition and

 

shall not discriminate in its pupil admissions policies or

 

practices on the basis of intellectual or athletic ability,

 

measures of achievement or aptitude, status as a student with a

 

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

 

school district. However, a conversion school may limit admission

 

to pupils who are within a particular range of age or grade level

 

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

 

district.

 

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

 

States citizen, a conversion school shall not enroll a pupil who is

 

not a resident of this state. For a conversion school authorized by

 

a school district or intermediate school district, enrollment in

 

the conversion school may be open to all individuals who reside in

 

this state who meet the admission policy and shall be open to all

 

pupils who reside within the geographic boundaries, if any, of the

 

authorizing body as described in section 533(2)(a) and (b) who meet

 

the admission policy. For a conversion school authorized by a

 

community college or a state public university, enrollment shall be

 

open to all pupils who reside in this state who meet the admission

 

policy. Subject to subsections (3) to (5), if there are more

 

applications to enroll in the conversion school than there are

 


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

 

selection process.

 

     (3) A conversion school shall give enrollment priority to a

 

pupil who was previously enrolled in the school that was converted

 

or who resides in the attendance area for that school as

 

established by the school district as of the time the petition was

 

submitted under section 1280c.

 

     (4) A conversion school may give enrollment priority to 1 or

 

more of the following:

 

     (a) A sibling of a pupil enrolled in the conversion school.

 

     (b) A pupil who transfers to the conversion school from

 

another public school pursuant to a matriculation agreement between

 

the conversion school and other public school that provides for

 

this enrollment priority, if all of the following requirements are

 

met:

 

     (i) Each public school that enters into the matriculation

 

agreement remains a separate and independent public school.

 

     (ii) The conversion school that gives the enrollment priority

 

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

 

selection process.

 

     (iii) The matriculation agreement allows any pupil who was

 

enrolled at any time during elementary school in a public school

 

that is party to the matriculation agreement and who was not

 

expelled from the public school to enroll in the conversion school

 

giving enrollment priority under the matriculation agreement.

 

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

 

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

 


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

 

adopted child or a legal ward.

 

     (5) A conversion school shall allow any pupil who was enrolled

 

in the conversion school in the immediately preceding school year

 

to enroll in the conversion school in the appropriate grade unless

 

the appropriate grade is not offered at that conversion school.

 

     (6) A conversion school may include any grade up to grade 12

 

or any configuration of those grades, including kindergarten and

 

early childhood education, as specified in its contract. A

 

conversion school shall include all of the grades that were

 

previously operated by the school that was converted. If specified

 

in its contract, a conversion school may also operate an adult

 

basic education program, adult high school completion program, or

 

general education development testing preparation program. The

 

authorizing body may approve amendment of a contract with respect

 

to ages of pupils or grades offered.

 

     Sec. 538. (1) A conversion school shall be located within the

 

same attendance area of the school district that previously

 

operated the school that was converted, as that attendance area

 

existed at the time the petition was submitted under section 1280c,

 

and may be located at the school building that was converted

 

pursuant to this section.

 

     (2) If a conversion school intends to use the school building

 

that was converted as provided under subsection (1), the conversion

 

school shall send a letter of intent to the superintendent of

 

public instruction and to the school district that owns the school

 

building. Subject to subsection (4), within 10 days after receipt

 


of the letter of intent, the school district that owns the school

 

building shall lease the school building to the conversion school

 

for $1.00 per year for as long as the school building is used for

 

classroom instruction by the conversion school or for a shorter

 

term at the option of the conversion school.

 

     (3) If during the term of the lease under subsection (2) the

 

conversion school leasing the school building closes or ceases

 

using the school building for classroom instruction, the school

 

district that owns the school building, with the approval of the

 

superintendent of public instruction, may reenter and repossess the

 

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

 

the school building.

 

     (4) A school district shall not lease a school building under

 

this section if the lease would unconstitutionally impair a bond,

 

note, security, or uncontested legal obligation of the school

 

district.

 

     (5) During the term of a lease under this section, the

 

conversion 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 conversion school leased the school

 

building.

 

     (6) A conversion school leasing a school building pursuant to

 

this section and the school district may enter into a contract or

 

cooperative arrangement concerning general liability insurance for

 


the conversion school.

 

     (7) A school building leased by a conversion school pursuant

 

to this section shall be considered to be in continuous use as a

 

public school.

 

     Sec. 539. In addition to other powers set forth in this part,

 

a conversion school may take action to carry out the purposes for

 

which it was incorporated under this part, including, but not

 

limited to, all of the following:

 

     (a) To sue and be sued in its name.

 

     (b) Subject to section 535(9), to acquire, hold, and own in

 

its own name real and personal property, or interests in real or

 

personal property, for educational purposes by purchase, gift,

 

grant, devise, bequest, lease, sublease, installment purchase

 

agreement, land contract, option, or condemnation, and subject to

 

mortgages, security interests, or other liens; and to sell or

 

convey property owned by the conversion school as the interests of

 

the conversion school require.

 

     (c) To receive, disburse, and pledge funds for lawful

 

purposes.

 

     (d) To enter into binding legal agreements with persons or

 

entities as necessary for the operation, management, financing, and

 

maintenance of the conversion school.

 

     (e) To incur temporary debt in accordance with section 1225.

 

     (f) To solicit and accept any grants or gifts for educational

 

purposes and to establish or permit to be established on its behalf

 

1 or more nonprofit corporations the purpose of which is to assist

 

the conversion school in the furtherance of its public purposes.

 


     (g) To 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 money and issuance of bonds by a conversion school is

 

not subject to section 1351a(4) or section 1351(2) to (4). Bonds

 

issued under this section shall be full faith and credit

 

obligations of the conversion school, pledging the general funds or

 

any other money available for such a purpose. Bonds issued under

 

this section are subject to the revised municipal finance act, 2001

 

PA 34, MCL 141.2101 to 141.2821.

 

     Sec. 541. (1) Except as otherwise provided by law, a

 

conversion school shall use certificated teachers according to

 

state board rule.

 

     (2) A conversion school authorized by a state public

 

university or community college may use noncertificated individuals

 

to teach as follows:

 

     (a) If the conversion school is authorized by a state public

 

university, the conversion school may use as a classroom teacher in

 

any grade a faculty member who is employed full-time by the state

 

public university and who has been granted institutional tenure, or

 

has been designated as being on tenure track, by the state public

 

university.

 

     (b) For a conversion school authorized by a community college,

 

the conversion school may use as a classroom teacher a full-time

 

member of the community college faculty who has at least 5 years'

 

experience at that community college in teaching the subject matter

 

that he or she is teaching at the conversion school.

 


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

 

permitted under this act to use noncertificated teachers.

 

     (3) A conversion school may develop and implement new teaching

 

techniques or methods or significant revisions to known teaching

 

techniques or methods, and shall report those to the authorizing

 

body and state board to be made available to the public. A

 

conversion school may use any instructional technique or delivery

 

method that may be used by a school district.

 

     (4) A conversion school, with the approval of the authorizing

 

body, may employ or contract with personnel as necessary for the

 

operation of the conversion school, prescribe their duties, and fix

 

their compensation.

 

     (5) If the board of directors of a conversion school provides

 

medical, optical, or dental benefits to employees and their

 

dependents, the board of directors shall provide those benefits in

 

accordance with the public employees health benefit act, 2007 PA

 

106, MCL 124.71 to 124.85, and shall comply with that act.

 

     Sec. 543. (1) An authorizing body that issues a contract for a

 

conversion school under this part shall do all of the following:

 

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

 

contract comply with the requirements of this part.

 

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

 

department a copy of the contract.

 

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

 

number of members of the board of directors of each conversion

 

school that it authorizes. The authorizing body shall ensure that

 

the board of directors includes representation from the local

 


community.

 

     (d) Oversee the operations of the board of directors of each

 

conversion school operating under a contract issued by the

 

authorizing body. The oversight shall be sufficient to ensure that

 

the board of directors is in compliance with the terms of the

 

contract and with applicable law.

 

     (e) Develop and implement a process for holding the board of

 

directors of a conversion school accountable for meeting applicable

 

academic performance standards set forth in the contract and for

 

implementing corrective action for a conversion school that does

 

not meet those standards.

 

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

 

directors of a conversion school operates independently of any

 

educational management company involved in the operations of the

 

conversion school.

 

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

 

by the conversion school is operated in a fair and open manner and

 

is in compliance with the contract and this part.

 

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

 

school maintains and releases information as necessary to comply

 

with applicable law.

 

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

 

more other authorizing bodies to carry out any function of an

 

authorizing body under this act.

 

     (3) The authorizing body for a conversion school is the fiscal

 

agent for the conversion school. A state school aid payment for a

 

conversion school shall be paid to the authorizing body that is the

 


fiscal agent for that conversion school, and the authorizing body

 

shall then forward the payment to the conversion school. Within 30

 

days after a contract is submitted to the department by an

 

authorizing body under subsection (1), the department shall issue a

 

district code to the conversion school for which the contract was

 

issued. If the department does not issue a district code within 30

 

days after a contract is filed, the state treasurer shall assign a

 

temporary district code in order for the conversion school to

 

receive funding under the state school aid act of 1979.

 

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

 

authorizing body if the authorizing body determines that 1 or more

 

of the following have occurred:

 

     (a) Failure of the conversion school to demonstrate measurable

 

progress toward improved pupil academic achievement for all groups

 

of pupils or toward meeting the educational goals set forth in the

 

contract.

 

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

 

applicable law.

 

     (c) Failure of the conversion school to meet generally

 

accepted public sector accounting principles and demonstrate sound

 

fiscal stewardship.

 

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

 

specified in the contract.

 

     (5) Except for a conversion school that is an alternative

 

school serving a special student population, if the superintendent

 

of public instruction determines that a conversion school site that

 

has been operating for at least 4 years is on the list required

 


under section 1280c 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, is in year 2 of

 

restructuring sanctions under the no child left behind act of 2001,

 

Public Law 107-110, not to include the individualized education

 

plan subgroup, and is not currently undergoing reconstitution under

 

this section, the superintendent of public instruction shall notify

 

the conversion school's authorizing body. If an authorizing body

 

receives notice from the superintendent of public instruction under

 

this subsection, the authorizing body shall amend the conversion

 

school's contract to eliminate the conversion school's authority to

 

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

 

conversion school shall cease operating the existing age and grade

 

levels at the site, effective at the end of the current school

 

year. If the conversion school operates at only 1 site, and the

 

authorizing body receives notice from the superintendent of public

 

instruction under this subsection, the authorizing body shall

 

revoke the conversion school's contract, effective at the end of

 

the current school year.

 

     (6) If, during the last school year before the expiration of

 

the conversion school's initial contract with an authorizing body,

 

a conversion school is on the list required under section 1280c

 

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, the board of directors of the conversion

 

school shall not seek to renew the contract with that authorizing

 

body or to obtain a new contract from that authorizing body.

 


     (7) The decision of an authorizing body to issue, not issue,

 

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

 

revoke a contract under this section, is solely within the

 

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

 

review by a court or any state agency. An authorizing body that

 

issues, does not issue, or reconstitutes a contract under this

 

part, or that terminates or revokes a contract under this section,

 

is not liable for that action to the conversion school, the

 

conversion school corporation, a pupil of the conversion school,

 

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

 

other person.

 

     (8) Except as otherwise provided in subsection (5), before an

 

authorizing body revokes a contract, the authorizing body may

 

consider and take corrective measures to avoid revocation. An

 

authorizing body may reconstitute the conversion school in a final

 

attempt to improve pupil educational performance or to avoid

 

interruption of the educational process. An authorizing body shall

 

include a reconstituting provision in the contract that identifies

 

these corrective measures, including, but not limited to, canceling

 

a contract with an educational management organization, if any,

 

withdrawing approval of a contract under section 541(4), or

 

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

 

operation of the conversion school.

 

     (9) If an authorizing body revokes a contract, the authorizing

 

body shall work with the school district that operated the school

 

that was converted, the state school reform/redesign officer, or

 

another school district or public school, or with a combination of

 


these entities, to ensure a smooth transition for the affected

 

pupils. If at the time of revocation the conversion school is on

 

the list required under section 1280c 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

 

and was in continuous operation in the same school building as was

 

occupied by the school that was converted, the state school

 

reform/redesign officer shall implement a new restructuring model

 

in that school building under section 1280c. If the revocation

 

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

 

agent for the conversion school under this part, shall return any

 

school aid funds held by the authorizing body that are attributable

 

to the affected pupils to the state treasurer for deposit into the

 

state school aid fund. The state treasurer shall distribute funds

 

to the public school in which the pupils enroll after the

 

revocation pursuant to a methodology established by the department

 

and the center for educational performance and information.

 

     (10) Not more than 10 days after a conversion school's

 

contract terminates or is revoked, the authorizing body shall

 

notify the superintendent of public instruction in writing of the

 

name of the conversion school whose contract has terminated or been

 

revoked and the date of contract termination or revocation.

 

     Sec. 1280c. (1) Beginning in 2010, 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 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.

 

     (2) Except as otherwise provided in subsection (16), within 7

 

days after publishing the list under subsection (1), 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

 

officer described in subsection (9). Within Subject to subsections

 

(17) to (26), within 90 days after a public school is placed under

 

the supervision of the state school reform/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 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 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. These models are the turnaround model,

 

restart model, school closure, and transformation model. 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).

 

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

 


public school under subsection (2), the state school

 

reform/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 officer for approval or

 

disapproval.

 

     (4) The state school reform/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 final.

 

     (5) If the state school reform/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 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 officer.

 

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

 

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

 

corporate and is a governmental agency. Except as otherwise

 

provided in subsection (7) and in subsection (25), if the state

 

school reform/redesign officer does not approve the redesign plan,

 

or if the state school reform/redesign officer determines that the

 

redesign plan is not achieving satisfactory results, the state

 

school reform/redesign officer shall issue an order placing the

 

public school in the state school reform/redesign school district,

 

imposing for the public school implementation of 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). All of the following

 

apply to the state school reform/redesign school district:

 

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

 

consist of schools that are placed in the state school

 

reform/redesign school district.

 

     (b) The state school reform/redesign officer shall act as the

 

superintendent of the state school reform/redesign school district.

 

With respect to schools placed in the state school reform/redesign

 

school district, the state school reform/redesign officer has all

 

of the powers and duties described in this section; all of the

 


provisions of this act that would otherwise apply to the school

 

board that previously operated a school placed in the state school

 

reform/redesign school district apply to the state school

 

reform/redesign officer with respect to that school, except those

 

relating to taxation or borrowing; except as otherwise provided in

 

this section, the state school reform/redesign officer may exercise

 

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

 

board that previously operated a school placed in the state school

 

reform/redesign school district and in its officers, except those

 

relating to taxation or borrowing, and may exercise all additional

 

powers and duties provided under this section; and, except as

 

otherwise provided in this section, the state school

 

reform/redesign officer accedes to all the rights, duties, and

 

obligations of the school board with respect to that school. These

 

powers, rights, duties, 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 that previously operated the school according to the terms of

 

the bond issue or financing documents.

 

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

 

collective bargaining agreements and employment contracts entered

 

into by the school board 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 powers and duties to 1 or more designees,

 

with proper supervision by the state school reform/redesign

 

officer.

 

     (vi) Power to terminate any contract or portion of a contract

 

entered into by the school board that applies to that 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

 

under this subsection is void.

 

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

 

that better educational results are likely to be achieved by

 

appointing a chief executive officer to take control of multiple

 

public schools, the state school reform/redesign officer may make a

 

recommendation to the superintendent of public instruction for

 

appointment of a chief executive officer to take control over those

 

multiple schools. If the superintendent of public instruction

 

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). With respect to those public schools, the chief

 

executive officer has all of the same powers and duties that the

 

state school reform/redesign officer has for public schools placed

 

in the state school reform/redesign school district under

 

subsection (6). The chief executive officer shall regularly submit

 

monitoring reports to the state school reform/redesign officer 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. The chief executive officer

 

shall exercise any other powers or duties over the public schools

 

as may be directed by the superintendent of public instruction.

 

     (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.

 

     (c) That the state school reform/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 officer shall have full autonomy and

 


control over curriculum and discretionary spending at the public

 

school.

 

     (9) The superintendent of public instruction shall hire a

 

state school reform/redesign officer to carry out the functions

 

under this section and as otherwise prescribed by law. The state

 

school reform/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 officer is exempt from

 

civil service. The state school reform/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 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 officer as a position that is exempt from the

 

classified state civil service.

 

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

 

restart model for a public school in the state school

 

reform/redesign school district, or a chief executive officer under

 

subsection (7) imposes the restart model for multiple public

 

schools under that subsection, all of the following apply:

 

     (a) The state school reform/redesign officer 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 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.

 

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

 

turnaround model for a public school in the state school

 

reform/redesign school district, or a chief executive officer under

 

subsection (7) imposes the turnaround model for multiple public

 

schools under that subsection, all of the following apply:

 

     (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.

 


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

 

that a public school that is subject to the measures under

 

subsection (6) or (7) has made significant improvement in pupil

 

achievement and should be released from the measures that have been

 

imposed under subsection (6) or (7), the state school

 

reform/redesign officer 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).

 

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

 

officer shall submit a report to 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.

 

     (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, 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.

 

     (16) If a 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, 2011 PA 4, MCL 141.1501 to 141.1531, then the

 

superintendent of public instruction shall not issue an order

 

placing the school under the supervision of the state school

 

reform/redesign officer. However, if a parental petition meeting

 

the requirements of subsections (18) and (19) has been submitted

 

and is certified by the department, the emergency manager and the

 

state school reform/redesign officer shall implement the school

 

intervention model and redesign plan recommended in the parental

 

petition with the emergency manager acting in the capacity of the

 

school board.

 

     (17) Within 7 days after a public school is placed under the

 

supervision of the state school reform/redesign officer under

 

subsection (2), the school board or board of directors operating

 

the public school shall issue a written notification to the parent

 

or legal guardian of each pupil enrolled in the public school and

 

shall publish this notification on its internet website homepage.

 

This notification shall include all of the following:

 

     (a) An explanation that the public school has been placed

 

under the supervision of the state school reform/redesign officer

 

due to its pupil performance and that, unless a petition is

 

submitted to the department by the parents of the pupils at the

 

school recommending a school intervention model, the school board

 


or board of directors will work with the state school

 

reform/redesign officer to adopt and implement a school

 

intervention model and redesign plan for the school, as provided

 

under this section.

 

     (b) An explanation of each school intervention model that is

 

available as an option to the school board or board of directors

 

and to the parents and legal guardians.

 

     (c) An explanation of the process, requirements, and timeline

 

for eligible parents and legal guardians to submit a parental

 

petition to the department to recommend a school intervention model

 

under subsection (18). This explanation shall include a description

 

of who is an eligible parent or legal guardian, the percentage of

 

eligible parents and legal guardians that must sign a parental

 

petition for it to be effective under subsection (18), the actual

 

total number that would be required to meet that percentage, and

 

the deadline and process for submitting the parental petition.

 

     (d) A description of the consequences of a school intervention

 

model recommended by a parental petition under this subsection

 

compared to the consequences of a redesign plan implemented under

 

subsection (2), including the different consequences with regard to

 

being placed in the state school reform/redesign school district.

 

     (18) Within 90 days after a public school is placed under the

 

supervision of the state school reform/redesign officer under

 

subsection (2), a parental petition may be submitted to the

 

department recommending a single school intervention model to be

 

implemented for the public school in a redesign plan. Within 30

 

days of receiving a parental petition, the department shall do both

 


of the following:

 

     (a) Forward a copy of the petition to the school board or

 

board of directors operating the public school, the intermediate

 

school district in which the public school is located, and the

 

state school reform/redesign officer.

 

     (b) Examine the petition to determine if it contains the

 

number of valid signatures required under subsection (19) and a

 

single school intervention model to be implemented for the public

 

school in a redesign plan.

 

     (19) If the department certifies that a parental petition

 

submitted under subsection (18) has been submitted within the

 

applicable time limit, contains the valid signatures of at least

 

60% of the eligible parents or legal guardians, or of at least 51%

 

of the eligible parents or legal guardians and at least 60% of the

 

eligible teachers, and recommends a school intervention model that

 

may be implemented for the public school in a redesign plan under

 

this section, then all of the following apply:

 

     (a) The department shall notify the person submitting the

 

parental petition and the school board or board of directors

 

operating the public school that the petition has been certified.

 

     (b) If the school intervention model that is recommended in

 

the petition is a restructuring option other than the restart

 

model, the school board or board of directors shall work with the

 

state school reform/redesign officer to implement the recommended

 

school intervention model in a redesign plan for the following

 

school year. However, if the school board or board of directors has

 

already adopted and has implemented or is in the process of

 


implementing a redesign plan at the time the petition is submitted,

 

the school board or board of directors and the state school

 

reform/redesign officer shall incorporate elements of the parental

 

petition to the extent that those elements are consistent with the

 

redesign plan that has already been adopted.

 

     (c) If the school intervention model that is recommended in

 

the petition is the restart model, and if the public school is not

 

a public school academy, the parents and legal guardians may submit

 

to an authorizing body an application for a contract to operate the

 

public school as a conversion school as provided under part 6d. If

 

a contract to operate the public school as a conversion school is

 

obtained under part 6d, then the public school shall be operated as

 

a conversion school under part 6d beginning in the following school

 

year. If the parental petition recommended the restart model but an

 

application for a contract to operate the public school as a

 

conversion school under part 6d is not submitted or if the

 

applicants are unable to obtain a contract to operate the public

 

school as a conversion school within 60 days after the petition is

 

certified, or if the public school is a public school academy, then

 

all of the following apply:

 

     (i) The school board or board of directors shall work with the

 

state school reform/redesign officer to implement the restart model

 

for the following school year in the manner provided under

 

subsection (10).

 

     (ii) If the school board or board of directors does not

 

implement the restart model, the state school reform/redesign

 

officer shall issue an order placing the public school in the state

 


school reform/redesign school district, imposing for the public

 

school implementation of 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).

 

     (20) If the department determines not to certify a parental

 

petition submitted under subsection (18) because the petition

 

either does not contain a sufficient number of valid signatures of

 

the eligible parents or legal guardians or does not recommend a

 

single school intervention model that may be implemented under this

 

section, then the department shall notify the person submitting the

 

parental petition and the school board or board of directors

 

operating the public school that the department has determined not

 

to certify the parental petition and the reasons for the

 

determination. This determination may be appealed as a final

 

decision or order in a contested case as provided under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (21) The eligible parents and legal guardians for a public

 

school may create a parental advisory committee to work with the

 

school board or board of directors and with the state school

 

reform/redesign officer to implement the recommended school

 

intervention model and redesign plan under subsection (19)(b).

 

     (22) The superintendent of public instruction shall promulgate

 

rules to implement subsections (17) to (21). The rules shall

 


address at least the form and content of a parental petition, the

 

process for submission of a parental petition to the department,

 

and a process for notifying the person submitting the parental

 

petition.

 

     (23) A person who circulates or otherwise seeks to obtain

 

signatures on a parental petition under this section shall not

 

offer or provide any money, gift, or other compensation in exchange

 

for a signature on the parental petition. A person shall not coerce

 

or intimidate another person with respect to signing or declining

 

to sign a parental petition under this section.

 

     (24) If the school board or board of directors finds that

 

there is reason to believe that there may be fraud or a violation

 

of subsection (23) in connection with the signatures on a parental

 

petition submitted under this section, the school board or board of

 

directors shall refer its findings to the appropriate county

 

prosecutor for possible criminal action.

 

     (25) If a school board or board of directors implements the

 

school intervention model that is recommended in a parental

 

petition under subsection (18) and included in the redesign plan

 

under subsection (19)(b) or if a contract is obtained under part 6d

 

to operate the public school as a conversion school, as described

 

in subsection (19)(c), the state school reform/redesign officer may

 

not issue an order placing the public school in the state school

 

reform/redesign school district until after the expiration of 5

 

years after the beginning of the first school year in which the

 

school intervention model is implemented or the public school is

 

operated as a conversion school under part 6d.

 


     (26) As used in this section:

 

     (a) "Eligible parent or legal guardian" means the parent or

 

legal guardian of a pupil enrolled in the public school that is the

 

subject of the parental petition if the pupil is enrolled in the

 

public school on the first day of the applicable school year, or

 

becomes enrolled in the public school after the first day of the

 

applicable school year but before submission of the parental

 

petition under subsection (18), and the pupil remains enrolled in

 

the public school at the time the parental petition is submitted

 

under subsection (18).

 

     (b) "Eligible teacher" means a teacher employed and working

 

full time at the public school to be converted at the time the

 

parental petition is submitted under subsection (18).