SB-0691, As Passed Senate, October 20, 2011

SUBSTITUTE FOR

SENATE BILL NO. 691

     A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending section 25 (MCL 388.1625), as amended by 2005 PA 155.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 25. (1) If a pupil is enrolled in an alternative

education program operated by an intermediate district or district

for the purpose of educating pupils who have been expelled from

school or referred from the court, or is enrolled in a strict

discipline academy for pupils who have been expelled or suspended

from school as described in section 1311g of the revised school

code, MCL 380.1311g, and if the pupil is counted in membership in

another intermediate district or district, the intermediate

district or district operating the alternative education program or

the strict discipline academy shall report the enrollment

information to the department and to the district in which the

pupil is counted in membership, and the intermediate district or

district in which the pupil is counted in membership shall pay to

the intermediate district or district operating the alternative

education program or to the strict discipline academy an amount

equal to the amount of the foundation allowance or per pupil

payment as calculated under section 20 for the intermediate

district or district in which the pupil is counted in membership,

prorated according to the number of days of the school year ending

in the fiscal year the pupil is educated in the alternative

education program or strict discipline academy compared to the

number of days of the school year ending in the fiscal year the

pupil was actually enrolled in the intermediate district or

district in which the pupil is counted in membership. The

foundation allowance or per pupil payment shall be adjusted by the

pupil's full-time equated status as affected by the membership

definition under section 6(4). If a an intermediate district or

district does not make the payment required under this section

within 30 days after receipt of the report, the department shall

calculate the amount owed, shall deduct that amount from the

remaining state school aid payments to the intermediate district or

district for that fiscal year under this act, and shall pay that

amount to the intermediate district or district operating the

alternative education program. or to the strict discipline academy.

The intermediate district or district in which the pupil is counted

in membership and the intermediate district or district operating

the alternative education program or strict discipline academy

shall provide to the department all information the department

requires to enforce this section.

     (2) If a pupil is enrolled in a strict discipline academy for

pupils who have been expelled or suspended from school as described

in section 1311g of the revised school code, MCL 380.1311g, and if

the pupil is counted in membership in another district or

intermediate district, the strict discipline academy shall report

the enrollment information to the department and to the district or

intermediate district in which the pupil is counted in membership.

Upon receipt of enrollment information under this subsection

indicating that a pupil has enrolled in a strict discipline academy

as described in this subsection, the department shall do both of

the following:

     (a) Adjust the membership calculation for the district or

intermediate district in which the pupil was counted in membership

so that the district's or intermediate district's membership is

prorated to allow the district or intermediate district to receive

the following amounts:

     (i) For each school day in which the pupil was enrolled in the

district, an amount equal to 1/180 of the foundation allowance or

per-pupil payment as calculated under section 20 for the district

or intermediate district. The foundation allowance or per-pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

     (ii) For each school day in which the pupil was enrolled in the

district or intermediate district, an amount equal to 1/180 of any

categorical aid under this act that is calculated on a per-pupil

basis.

     (b) Include all of the following in the calculation of state

school aid for the strict discipline academy, as applicable:

     (i) For each school day in which the pupil is enrolled in the

strict discipline academy, an amount equal to 1/180 of the per-

pupil payment as calculated under section 20 for the strict

discipline academy. The per-pupil payment shall be adjusted by the

pupil's full-time equated status as affected by the membership

definition under section 6(4).

     (ii) For each school day in which the pupil is enrolled in the

strict discipline academy, an amount equal to 1/180 of any

categorical aid under this act that is calculated on a per-pupil

basis and that would otherwise be paid to the strict discipline

academy if the pupil had been counted in membership in the strict

discipline academy.

     (3) The changes in calculation of state school aid required

under subsection (2) shall take effect as of the date that the

pupil enrolls in the strict discipline academy, and the department

shall base all subsequent payments under this act for the fiscal

year to the affected districts or intermediate districts and for

the strict discipline academy, as applicable, on this recalculation

of state school aid.

     (4) If a pupil enrolls in a strict discipline academy as

described in subsection (2), if adjustments are made in

calculations pursuant to subsection (2) due to that enrollment, and

if the pupil subsequently ceases to be enrolled in the strict

discipline academy, the strict discipline academy shall notify the

department of the last date of the pupil's enrollment in the strict

discipline academy and the number of days the pupil was enrolled in

the strict discipline academy.

     (5) If a pupil enrolls in a strict discipline academy as

described in subsection (2), the district or intermediate district

in which the pupil is counted in membership and the strict

discipline academy shall provide to the department all information

the department requires to comply with this section.

     (6) The changes in the requirements under this section that

are contained in subsections (2) to (5) apply beginning with

payments made for the 2011-2012 fiscal year.