SENATE BILL No. 159

 

 

February 6, 2013, Introduced by Senators MEEKHOF, JANSEN, SCHUITMAKER, HILDENBRAND, MOOLENAAR, PAVLOV, BOOHER, EMMONS, COLBECK, BRANDENBURG, PROOS, MARLEAU, JONES, WALKER, ROBERTSON and HUNE and referred to the Committee on Government Operations.

 

 

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 503, 523, 553, and 1311e (MCL 380.503,

 

380.523, 380.553, and 380.1311e), sections 503, 523, and 553 as

 

amended by 2011 PA 277 and section 1311e as amended by 2009 PA 205.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 503. (1) An authorizing body is not required to issue a

 

contract to any person or entity. Subject to subsection (2), public

 

school academy contracts shall be issued on a competitive basis. In

 

deciding whether to issue a contract for a proposed public school

 

academy, an authorizing body shall consider all of the following:

 

     (a) The resources available for the proposed public school

 

academy.

 

     (b) The population to be served by the proposed public school


 

academy.

 

     (c) The educational goals to be achieved by the proposed

 

public school academy.

 

     (d) The applicant's track record, if any, in organizing public

 

school academies or other public schools.

 

     (e) The graduation rate of a school district in which the

 

proposed public school academy is proposed to be located.

 

     (f) The population of a county in which the proposed public

 

school academy is proposed to be located.

 

     (g) The number of schools in the proximity of a proposed

 

location of the proposed public school academy that are on the list

 

under section 1280c(1) of 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.

 

     (h) The number of pupils on waiting lists of public school

 

academies in the proximity of a proposed location of the proposed

 

public school academy.

 

     (2) An authorizing body may give priority to a proposed public

 

school academy that is intended to replace a public school academy

 

that has been closed pursuant to section 507(5), that will operate

 

all of the same grade levels as the public school academy that has

 

been closed, and that will work toward operating all of grades 9 to

 

12 within 6 years after it begins operations unless a matriculation

 

agreement has been entered into with another public school that

 

provides grades 9 to 12.

 

     (3) If a person or entity applies to the board of a school

 

district for a contract to organize and operate 1 or more public


 

school academies within the boundaries of the school district and

 

the board does not issue the contract, the person or entity may

 

petition the board to place the question of issuing the contract on

 

the ballot to be decided by the school electors of the school

 

district. The petition shall contain all of the information

 

required to be in the contract application under section 502 and

 

shall be signed by a number of school electors of the school

 

district equal to at least 5% of the total number of school

 

electors of that school district. The petition shall be filed with

 

the school district filing official. If the board receives a

 

petition meeting the requirements of this subsection, the board

 

shall have the question of issuing the contract placed on the

 

ballot at its next regular school election held at least 60 days

 

after receiving the petition. If a majority of the school electors

 

of the school district voting on the question vote to issue the

 

contract, the board shall issue the contract.

 

     (4) Within 10 days after issuing a contract for a public

 

school academy, the authorizing body shall submit to the

 

superintendent of public instruction a copy of the contract.

 

     (5) 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 public school academy subject to its

 

jurisdiction. The resolution shall be written or amended as

 

necessary to include a requirement that each member of the board of

 

directors must be a citizen of the United States.

 

     (6) A contract issued to organize and administer a public

 

school academy shall contain at least all of the following:


 

     (a) The educational goals the public school academy is to

 

achieve and the methods by which it will be held accountable. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of a public school academy shall

 

be assessed using at least a Michigan education assessment program

 

(MEAP) test or the Michigan merit examination under section 1279g,

 

as applicable.

 

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

 

public school academy's compliance 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 507.

 

     (f) A description of and address for the proposed physical

 

plant in which the public school academy will be located. An

 

authorizing body may include a provision in the contract allowing

 

the board of directors of the public school academy to operate the

 

same configuration of age or grade levels at more than 1 site if

 

each configuration of age or grade levels and each site identified

 

in the contract are under the direction and control of the board of

 

directors.

 

     (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 renewal of the contract at the end of the term.

 

The standards for renewal shall include increases in 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 renew the contract.

 

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

 

board of directors of the public school academy, that the public

 

school academy will comply with the contract and all applicable

 

law.

 

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

 

school academy 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 public

 

school academy 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 public school academy, and employees of the

 

public school academy. The contract shall identify the specific

 

prohibited relationships consistent with applicable law.

 

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

 

school academy 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 public

 

school academy 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 public school

 

academy:

 

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

 

the public school academy.

 

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

 

directors of the public school academy, 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 public school academy 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 public

 

school academy.


 

     (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

 

public school academy 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 public

 

school academy shall demonstrate all of the following to the

 

satisfaction of the authorizing body with regard to its pupil

 

admission process:

 

     (i) That the public school academy has made a reasonable effort

 

to advertise its enrollment openings.

 

     (ii) That the open enrollment period for the public school


 

academy 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 public

 

school academy shall prohibit any individual from being employed by

 

the public school academy in more than 1 full-time position and

 

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

 

those positions.

 

     (7) A public school academy 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.

 

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

 

1274.

 

     (e) (f) Laws 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.

 

     (8) A public school academy 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 public school academy 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.

 

     (9) A public school academy is exempt from all taxation on its

 

earnings and property. Instruments of conveyance to or from a

 

public school academy 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 public school academy may not levy

 

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

 

operation of 1 or more public school academies 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.

 

     (10) A public school academy may acquire by purchase, gift,

 

devise, lease, sublease, installment purchase agreement, land

 

contract, option, or by any other means, hold and own in its own

 

name buildings and other property for school purposes, and

 

interests therein, and other real and personal property, including,

 

but not limited to, interests in property subject to mortgages,

 

security interests, or other liens, necessary or convenient to

 

fulfill its purposes. For the purposes of condemnation, a public


 

school academy may proceed under the uniform condemnation

 

procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding

 

sections 6 to 9 of that act, MCL 213.56 to 213.59, or other

 

applicable statutes, but only with the express, written permission

 

of the authorizing body in each instance of condemnation and only

 

after just compensation has been determined and paid.

 

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

 

academy 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. 523. (1) An authorizing body is not required to issue a

 

contract to any entity. Urban high school academy contracts shall

 

be issued on a competitive basis taking into consideration the

 

resources available for the proposed urban high school academy, the

 

population to be served by the proposed urban high school academy,

 

and the educational goals to be achieved by the proposed urban high

 

school academy. In evaluating if an applicant is qualified, the

 

authorizing body shall examine the proposed performance standards,

 

proposed academic program, financial viability of the applicant,

 

and the ability of the proposed board of directors to meet the

 

contract goals and objectives. An authorizing body shall give

 

priority to applicants that demonstrate all of the following:

 

     (a) The proposed school will operate at least all of grades 9

 

through 12 within 5 years after beginning operation.

 

     (b) The proposed school will occupy a building or buildings

 

that are newly constructed or renovated after January 1, 2003.


 

     (c) The proposed school has a stated goal of increasing high

 

school graduation rates.

 

     (d) The proposed school has received commitments for financial

 

and educational support from the entity applying for the contract.

 

     (e) The entity that submits the application for a contract has

 

net assets of at least $50,000,000.00.

 

     (2) A contract issued to organize and administer an urban high

 

school academy shall contain at least all of the following:

 

     (a) The educational goals the urban high school academy is to

 

achieve and the methods by which it will be held accountable. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of an urban high school academy

 

shall be assessed using at least a Michigan education assessment

 

program (MEAP) test or the Michigan merit examination developed

 

under section 1279g, as applicable.

 

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

 

urban high school academy's compliance 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. An authorizing body may approve

 

amendment of the contract with respect to any provision contained

 

in the contract.

 

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

 

urban high school academy board of directors, that the urban high

 

school academy will comply with the contract and all applicable

 

law.


 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract.

 

     (f) A description of and address for the proposed building or

 

buildings in which the urban high school academy will be located.

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by an

 

independent certified public accountant in accordance with

 

generally accepted governmental auditing principles.

 

     (h) A requirement that the board of directors shall ensure

 

compliance with the requirements of 1968 PA 317, MCL 15.321 to

 

15.330.

 

     (i) A requirement that the board of directors 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

 

company involved in the operation of the urban high school academy,

 

and employees of the urban high school academy. The contract shall

 

identify the specific prohibited relationships consistent with

 

applicable law.

 

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

 

high school academy 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.

 

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

 

high school academy 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 urban high school

 

academy:

 

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

 

the urban high school academy.

 

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

 

directors of the urban high school academy, including name,

 

address, and term of office; copies of policies approved by the

 

board of directors; board meeting agendas and minutes; 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 working at the urban high

 

school academy that includes their individual salaries as submitted

 

to the registry of educational personnel; copies of the teaching

 

certificates or permits of current teaching 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 urban

 

high school academy.

 

     (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.

 

     (l) A requirement that the authorizing body must review and may

 

disapprove any agreement between the board of directors and an

 

educational management company 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.

 

     (m) A requirement that the board of directors shall

 

demonstrate all of the following to the satisfaction of the

 

authorizing body with regard to its pupil admission process:

 

     (i) That the urban high school academy has made a reasonable

 

effort to advertise its enrollment openings.

 

     (ii) That the urban high school academy has made the following

 

additional efforts to recruit pupils who are eligible for special

 

education programs and 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 within the boundaries of the

 

intermediate school district in which the urban high school academy


 

is located.

 

     (B) Inclusion in all pupil recruitment materials of a

 

statement that appropriate special education services will be made

 

available to pupils attending the school as required by law.

 

     (iii) That the open enrollment period for the urban high school

 

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

 

enrollment times include some evening and weekend times.

 

     (n) A requirement that the board of directors shall prohibit

 

any individual from being employed by the urban high school academy

 

in more than 1 full-time position and simultaneously being

 

compensated at a full-time rate for each of those positions.

 

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

 

shall report to the authorizing body the total compensation for

 

each individual working at the urban high school academy.

 

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

 

and standards for renewal of the contract at the end of the term.

 

The standards for renewal shall include increases in 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 renew the contract.

 

     (3) An urban high school academy 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.


 

     (d) (e) 1978 PA 566, MCL 15.181 to 15.185.

 

     (e) (f) 1968 PA 317, MCL 15.321 to 15.330.

 

     (f) (g) The uniform budgeting and accounting act, 1968 PA 2,

 

MCL 141.421 to 141.440a.

 

     (g) (h) The revised municipal finance act, 2001 PA 34, MCL

 

141.2101 to 141.2821.

 

     (h) (i) The federal no child left behind act of 2001, Public

 

Law 107-110, 115 Stat. 1425.

 

     (i) (j) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, 1274,

 

and 1280.

 

     (j) (k) Laws 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.

 

     (4) An urban high school academy 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 any acts or omissions in authorizing or oversight of an urban

 

high school academy 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.

 

     (5) An urban high school academy is exempt from all taxation

 

on its earnings and property. 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 an urban high 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. Instruments of conveyance to or from

 

an urban high school academy are exempt from all taxation,

 

including taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. An

 

urban high school academy may not levy ad valorem property taxes or

 

any other tax for any purpose.

 

     (6) An urban high school academy may acquire by purchase,

 

gift, devise, lease, sublease, installment purchase agreement, land

 

contract, option, or any other means, hold, and own in its own name

 

buildings and other property for school purposes, and interests

 

therein, and other real and personal property, including, but not

 

limited to, interests in property subject to mortgages, security

 

interests, or other liens, necessary or convenient to fulfill its

 

purposes. For the purposes of condemnation, an urban high school

 

academy may proceed under the uniform condemnation procedures act,

 

1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of that

 

act, MCL 213.56 to 213.59, or other applicable statutes, but only

 

with the express, written permission of the authorizing body in

 

each instance of condemnation and only after just compensation has

 

been determined and paid.

 

     Sec. 553. (1) An authorizing body is not required to issue a

 

contract to any person or entity. Schools of excellence contracts

 

shall be issued on a competitive basis taking into consideration


 

the resources available for the proposed school of excellence, the

 

population to be served by the proposed school of excellence, the

 

educational goals to be achieved by the proposed school of

 

excellence, and the applicant's track record, if any, in operating

 

public school academies or other public schools.

 

     (2) If a person or entity applies to the board of a school

 

district for a contract to organize and operate 1 or more schools

 

of excellence within the boundaries of the school district and the

 

board does not issue the contract, the person or entity may

 

petition the board to place the question of issuing the contract on

 

the ballot to be decided by the school electors of the school

 

district. The petition shall contain all of the information

 

required to be in the contract application under section 552 and

 

shall be signed by a number of school electors of the school

 

district equal to at least 5% of the total number of school

 

electors of that school district. The petition shall be filed with

 

the school district filing official. If the board receives a

 

petition meeting the requirements of this subsection, the board

 

shall have the question of issuing the contract placed on the

 

ballot at its next regular school election held at least 60 days

 

after receiving the petition. If a majority of the school electors

 

of the school district voting on the question vote to issue the

 

contract, the board shall issue the contract.

 

     (3) Within 10 days after issuing a contract for a school of

 

excellence, the authorizing body shall submit to the superintendent

 

of public instruction a copy of the contract.

 

     (4) 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 school of excellence subject to its

 

jurisdiction. The resolution shall be written or amended as

 

necessary to include a requirement that each member of the board of

 

directors must be a citizen of the United States.

 

     (5) A contract issued to organize and administer a school of

 

excellence shall contain at least all of the following:

 

     (a) The educational goals the school of excellence is to

 

achieve and the methods by which it will be held accountable. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of a school of excellence shall

 

be assessed using at least a Michigan education assessment program

 

(MEAP) test or the Michigan merit examination under section 1279g,

 

as applicable.

 

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

 

school of excellence's compliance 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 561.

 

     (f) A description of and address for the proposed physical

 

plant in which the school of excellence will be located. An


 

authorizing body may include a provision in the contract allowing

 

the board of directors of the school of excellence to operate the

 

same configuration of age or grade levels at more than 1 site if

 

each configuration of age or grade levels and each site identified

 

in the contract are under the direction and control of the board of

 

directors.

 

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

 

school of excellence board of directors, that the school of

 

excellence will comply with the contract and all applicable law.

 

     (i) A requirement that the board of directors shall ensure

 

compliance with the requirements of 1968 PA 317, MCL 15.321 to

 

15.330.

 

     (j) A requirement that the board of directors 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 school of excellence,

 

and employees of the school of excellence. The contract shall

 

identify the specific prohibited relationships consistent with

 

applicable law.

 

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

 

excellence 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.

 

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

 

excellence 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 school of

 

excellence:

 

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

 

the school of excellence.

 

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

 

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

 

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

 

directors; board meeting agendas and minutes; 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 school of excellence 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 school

 

of excellence.


 

     (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.

 

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

 

may disapprove any agreement between the board of directors 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

 

contract or applicable law.

 

     (n) A requirement that the board of directors shall

 

demonstrate all of the following to the satisfaction of the

 

authorizing body with regard to its pupil admission process:

 

     (i) That the school of excellence has made a reasonable effort

 

to advertise its enrollment openings.

 

     (ii) That the school of excellence 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 school of excellence 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 school of

 

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

 

enrollment times include some evening and weekend times.

 

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

 

any individual from being employed by the school of excellence in

 

more than 1 full-time position and simultaneously being compensated

 

at a full-time rate for each of those positions.

 

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

 

shall report to the authorizing body the total compensation for

 

each individual working at the school of excellence.

 

     (6) A school of excellence 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.

 

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

 

1274.

 

     (e) (f) Laws 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.

 

     (7) A school of excellence 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 school of excellence 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.

 

     (8) A school of excellence is exempt from all taxation on its

 

earnings and property. 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

 

school of excellence 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. Instruments of conveyance to or from a school of

 

excellence are exempt from all taxation including taxes imposed by


 

1966 PA 134, MCL 207.501 to 207.513. A school of excellence may not

 

levy ad valorem property taxes or another tax for any purpose.

 

However, operation of 1 or more schools of excellence 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.

 

     (9) A school of excellence may acquire by purchase, gift,

 

devise, lease, sublease, installment purchase agreement, land

 

contract, option, or by any other means, hold, and own in its own

 

name buildings and other property for school purposes, and

 

interests therein, and other real and personal property, including,

 

but not limited to, interests in property subject to mortgages,

 

security interests, or other liens, necessary or convenient to

 

fulfill its purposes. For the purposes of condemnation, a school of

 

excellence may proceed under the uniform condemnation procedures

 

act, 1980 PA 87, MCL 213.51 to 213.75, excluding sections 6 to 9 of

 

that act, MCL 213.56 to 213.59, or other applicable statutes, but

 

only with the express, written permission of the authorizing body

 

in each instance of condemnation and only after just compensation

 

has been determined and paid.

 

     Sec. 1311e. (1) An authorizing body is not required to issue a

 

contract to any person or entity. Contracts for strict discipline

 

academies shall be issued on a competitive basis taking into

 

consideration the resources available for the proposed strict

 

discipline academy, the population to be served by the proposed

 

strict discipline academy, and the educational goals to be achieved

 

by the proposed strict discipline academy.


 

     (2) If a person or entity applies to the board of a school

 

district for a contract to organize and operate 1 or more strict

 

discipline academies within the boundaries of the school district

 

and the board does not issue the contract, the person or entity may

 

petition the board to place the question of issuing the contract on

 

the ballot to be decided by the school electors of the school

 

district. The petition shall contain all of the information

 

required to be in the contract application under section 1311d and

 

shall be signed by a number of school electors of the school

 

district equal to at least 15% of the total number of school

 

electors of that school district. The petition shall be filed with

 

the secretary of the board. If the board receives a petition

 

meeting the requirements of this subsection, the board shall place

 

the question of issuing the contract on the ballot at its next

 

annual school election held at least 60 days after receiving the

 

petition. If a majority of the school electors of the school

 

district voting on the question vote to issue the contract, the

 

board shall issue the contract.

 

     (3) Within 10 days after issuing a contract for a strict

 

discipline academy, the board of the authorizing body shall submit

 

to the state board a copy of the contract and of the application

 

under section 1311d.

 

     (4) 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 strict discipline academy subject to

 

its jurisdiction.

 

     (5) A contract issued to organize and administer a strict


 

discipline academy shall contain at least all of the following:

 

     (a) The educational goals the strict discipline academy is to

 

achieve and the methods by which it will be held accountable. To

 

the extent applicable, the pupil performance of a strict discipline

 

academy shall be assessed using at least a Michigan education

 

assessment program (MEAP) test or the Michigan merit examination

 

developed under section 1279g, as applicable.

 

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

 

strict discipline academy's compliance 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) For a strict discipline academy authorized by a school

 

district, an agreement that employees of the strict discipline

 

academy will be covered by the collective bargaining agreements

 

that apply to employees of the school district employed in similar

 

classifications in schools that are not strict discipline

 

academies.

 

     (f) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 1311l.

 

     (g) A description of and address for the proposed physical

 

plant in which the strict discipline academy will be located.

 

     (h) 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.

 

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

 

and standards for renewal of the contract at the end of the term.

 

The standards for renewal shall include student growth as measured

 

by assessments and other objective criteria as a significant factor

 

in the decision of whether or not to renew the contract.

 

     (6) A strict discipline academy 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.

 

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

 

1274.

 

     (e) (f) Except for part 6a, all provisions of this act that

 

explicitly apply to public school academies established under part

 

6a.

 

     (7) A strict discipline academy 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 any acts or omissions in authorizing a strict discipline

 

academy 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.

 

     (8) A strict discipline academy is exempt from all taxation on

 

its earnings and property. Instruments of conveyance to or from a

 

strict discipline academy are exempt from all taxation including

 

taxes imposed by 1966 PA 134, MCL 207.501 to 207.513. A strict

 

discipline academy may not levy ad valorem property taxes or any

 

other tax for any purpose. However, operation of 1 or more strict

 

discipline academies 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

 

any other tax.

 

     (9) A strict discipline academy may acquire by purchase, gift,

 

devise, lease, sublease, installment purchase agreement, land

 

contract, option, or by any other means, hold and own in its own

 

name buildings and other property for school purposes, and

 

interests therein, and other real and personal property, including,

 

but not limited to, interests in property subject to mortgages,

 

security interests, or other liens, necessary or convenient to

 

fulfill its purposes. For the purposes of condemnation, a strict

 

discipline academy may proceed under the uniform condemnation

 

procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding

 

sections 6 to 9 of that act, MCL 213.56 to 213.59, or other

 

applicable statutes, but only with the express, written permission

 

of the authorizing body in each instance of condemnation and only

 

after just compensation has been determined and paid.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 157                                      


 

          of the 97th Legislature is enacted into law.