September 7, 2011, Introduced by Senator ROBERTSON and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 3 and 5 (MCL 380.3 and 380.5), section 3 as
amended by 2007 PA 45 and section 5 as amended by 2009 PA 205, 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.
(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.
(b) An intermediate school board.
(c) The board of a community college.
(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.
(3) 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 the school district of the school to be converted for a
contract to organize and operate the school as a conversion school.
The applicant shall submit all of the following to the board of the
school district of the school to be converted:
(a) A petition requesting that the school be converted to a
conversion school signed by either or both of the following:
(i) At least 51% of the teachers employed by the school
district at the school to be converted.
(ii) At least 51% of the parents or legal guardians of the
pupils enrolled in the school to be converted.
(b) An application for a contract that meets the requirements
for an application under this section.
(4) If the board of a school district receives a petition
under subsection (3), the board shall consider the petition and act
to approve or deny the petition within 60 days after receiving the
petition. If the board acts to deny the petition, the board shall
issue a letter of denial to the applicant.
(5) If the board of the school district does not approve the
application for the contract submitted under subsection (3) within
60 days after the application and the supporting petition have been
submitted to the board, the applicant may submit an application to
another authorizing body. Another 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 contract that meets the requirements
for an application under this section.
(b) A copy of the petition submitted to the board of the
school district under subsection (3).
(c) A copy of the letter of denial under subsection (4) or
other information satisfactory to the authorizing body evidencing
that the applicant applied to the board of the school district for
a contract to organize and operate the school as a conversion
school as required under subdivision (b) and that the board of the
school district declined to grant the petition to issue the
contract within 60 days after the application and the supporting
petition have been submitted to the board.
(6) 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 demonstrated improved pupil academic achievement for all
groups of pupils and 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 504. 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) Descriptions of staff responsibilities and of the
conversion school's governance structure.
(g) The documentation required under subsection (3) or (5), as
applicable.
(h) 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.
(7) 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.
This subsection does not relieve any other government entity of its
enforcement or supervisory responsibility.
(8) If the superintendent of public instruction finds that an
authorizing body other than the school district that previously
operated the conversion school 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.
(9) 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.
(10) 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.
(11) 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, 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. Conversion school contracts 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 demonstrated improved pupil academic achievement for
all groups of pupils and specific goals for improvement in pupil
performance that must be met by the conversion school and a
provision that, if these performance improvement goals are not met,
the contract will be revoked and management of the school will be
returned to the school district. These goals shall include that, by
the last year of the contract, at least 80% of the conversion
school's pupils will graduate from high school or be determined to
be on track to graduate from high school and the conversion school
will have 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.
(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
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.
(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. Property occupied
by a conversion school and used exclusively for educational
purposes is exempt from real and personal property taxes. 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. 537. (1) If the conversion school is authorized by the
board of the school district, the conversion school shall be
located at the school that was converted; the board of the school
district shall continue to own the school building but shall allow
the educational management organization that is operating the
school to control the school building. The school district shall
not charge the conversion school rent for the facilities. However,
a conversion school shall assume the financial liability for all
utilities, maintenance, security, improvements, and other costs
necessary to maintain the facilities in at least the same condition
in which the conversion school originally acquired the facilities.
If the conversion school is authorized by another authorizing body,
the conversion school shall be located within the school district
that operated the school that was converted, and may be located at
the school that was converted pursuant to an agreement with the
school district. A conversion school and a school district may
enter into a contract or cooperative arrangement concerning general
liability insurance for the conversion school.
(2) 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.
(3) 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 (4) to (6), 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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. 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, 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 the property 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) If a conversion school is authorized by the
board of the school district that operated the school that was
converted, the school district is the employer of the employees
regularly working at the conversion school, but the conversion
school and employees of the conversion school are not subject to
collective bargaining agreements that apply to employees of the
school district employed in similar classifications in schools that
are not a conversion school. If the conversion school is authorized
by an authorizing body other than the board of the school district
that operated the school that was converted, then the school
district is not the employer of employees regularly working at that
conversion school and the school and those employees are not
subject to a collective bargaining agreement with the school
district.
(2) Except as otherwise provided by law, a conversion school
shall use certificated teachers according to state board rule.
(3) 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.
(4) 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.
(5) 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.
(6) 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 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 improved
pupil academic achievement for all groups of pupils or meet 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 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, 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) 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.
(7) 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 506, or appointing
a new board of directors or a trustee to take over operation of the
conversion school.
(8) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the public
school academy 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.
(9) 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.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No. 618.
(b) Senate Bill No. 619.
(c) Senate Bill No. 624.
(d) Senate Bill No. 621.