FIRST CONFERENCE REPORT

 

     The Committee of Conference on the matters of difference between the two Houses concerning

 

     Senate Bill No. 801, entitled

 

     A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 4, 6, 11, 11a, 11j, 11k, 11m, 15, 18, 19, 20, 20d, 20f, 20g, 21f, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25e, 25f, 25g, 26a, 26b, 26c, 31a, 31d, 31f, 31h, 32d, 32p, 35, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 55, 56, 61a, 61b, 62, 64b, 65, 67, 74, 81, 94, 94a, 95a, 98, 99c, 99h, 99s, 101, 102d, 104, 104b, 104c, 104d, 107, 147, 147a, 147c, 152a, 166b, 201, 201a, 202a, 203, 206, 207, 207a, 207b, 207c, 209, 210b, 212, 217, 219, 220, 222, 224, 225, 226, 229a, 230, 236, 236a, 236b, 236c, 237b, 238, 241, 246, 251, 252, 254, 256, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274, 274c, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284, 289, and 290 (MCL 388.1603, 388.1604, 388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1615, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1620f, 388.1620g, 388.1621f, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1623a, 388.1624, 388.1624a, 388.1624c, 388.1625e, 388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1631h, 388.1632d, 388.1632p, 388.1635, 388.1635a, 388.1639, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1655, 388.1656, 388.1661a, 388.1661b, 388.1662, 388.1664b, 388.1665, 388.1667, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1695a, 388.1698, 388.1699c, 388.1699h, 388.1699s, 388.1701, 388.1702d, 388.1704, 388.1704b, 388.1704c, 388.1704d, 388.1707, 388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1766b, 388.1801, 388.1801a, 388.1802a, 388.1803, 388.1806, 388.1807, 388.1807a, 388.1807b, 388.1807c, 388.1809, 388.1810b, 388.1812, 388.1817, 388.1819, 388.1820, 388.1822, 388.1824, 388.1825, 388.1826, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b, 388.1836c, 388.1837b, 388.1838, 388.1841, 388.1846, 388.1851, 388.1852, 388.1854, 388.1856, 388.1863, 388.1863a, 388.1864, 388.1865, 388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1874, 388.1874c, 388.1875, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, 388.1882, 388.1883, 388.1884, 388.1889, and 388.1890), sections 3, 203, 207, 212, 219, 220, 238, 251, and 254 as amended and section 237b as added by 2012 PA 201, sections 4, 6, 98, 107, 230, and 256 as amended by 2016 PA 56, sections 11, 21f, 31a, and 32d as amended by 2015 PA 139, sections 11a, 11j, 11k, 11m, 15, 20, 20d, 20f, 20g, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25e, 25f, 26a, 26b, 26c, 31d, 31f, 32p, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 64b, 74, 81, 94, 94a, 95a, 99h, 101, 104, 104b, 104c, 147, 147a, 147c, 152a, 201, 201a, 206, 207a, 207b, 207c, 209, 210b, 217, 222, 225, 226, 229a, 236, 236a, 236b, 236c, 241, 246, 252, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274, 276, 277, 278, 279, 280, 281, 282, 283, and 284 as amended and sections 25g, 31h, 35, 35a, 55, 61b, 65, 67, 99c, 99s, 102d, 104d, and 274c as added by 2015 PA 85, section 18 as amended by 2015 PA 114, sections 19, 202a, 224, and 275 as amended by 2014 PA 196, section 166b as amended by 2015 PA 222, and sections 289 and 290 as amended by 2013 PA 60, and by adding sections 11s, 21, 31j, 32q, 54b, 59, 61c, 61d, 61e, 63, 99t, 152b, 210e, and 286a; and to repeal acts and parts of acts.

 

     Recommends:

 

     First:  That the House recede from the Substitute of the House as passed by the House.

 

 

     Second:  That the Senate and House agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:

 

(attached)

 

     Third:  That the Senate and House agree to the title of the bill to read as follows:

 

     A bill to amend 1979 PA 94, entitled "An act to make appropriations to aid in the support of the public schools, the intermediate school districts, community colleges, and public universities of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts", by amending sections 3, 4, 6, 11, 11a, 11j, 11k, 11m, 11r, 15, 18, 19, 20, 20d, 20f, 20g, 21f, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25e, 25f, 25g, 26a, 26b, 26c, 31a, 31c, 31d, 31f, 31h, 32d, 32p, 35, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 55, 56, 61a, 61b, 62, 64b, 65, 67, 74, 81, 94, 94a, 98, 99h, 99s, 101, 102d, 104, 104b, 104c, 104d, 107, 147, 147a, 147c, 152a, 166, 166b, 201, 201a, 202a, 203, 206, 207, 207a, 207b, 207c, 209, 210b, 212, 217, 219, 220, 222, 223, 224, 225, 226, 229a, 230, 236, 236a, 236b, 236c, 237b, 241, 246, 251, 252, 254, 256, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274, 274c, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284, and 290 (MCL 388.1603, 388.1604, 388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611r, 388.1615, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1620f, 388.1620g, 388.1621f, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1623a, 388.1624, 388.1624a, 388.1624c, 388.1625e, 388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631c, 388.1631d, 388.1631f, 388.1631h, 388.1632d, 388.1632p, 388.1635, 388.1635a, 388.1639, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1655, 388.1656, 388.1661a, 388.1661b, 388.1662, 388.1664b, 388.1665, 388.1667, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1698, 388.1699h, 388.1699s, 388.1701, 388.1702d, 388.1704, 388.1704b, 388.1704c, 388.1704d, 388.1707, 388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1766, 388.1766b, 388.1801, 388.1801a, 388.1802a, 388.1803, 388.1806, 388.1807, 388.1807a, 388.1807b, 388.1807c, 388.1809, 388.1810b, 388.1812, 388.1817, 388.1819, 388.1820, 388.1822, 388.1823, 388.1824, 388.1825, 388.1826, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b, 388.1836c, 388.1837b, 388.1841, 388.1846, 388.1851, 388.1852, 388.1854, 388.1856, 388.1863, 388.1863a, 388.1864, 388.1865, 388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1874, 388.1874c, 388.1875, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, 388.1882, 388.1883, 388.1884, and 388.1890), section 3, 203, 207, 212, 219, 220, 223, 251, and 254 as amended and section 237b as added by 2012 PA 201, sections 4, 6, 98, 107, 230, and 256 as amended by 2016 PA 56, sections 11, 21f, 31a, and 32d as amended by 2015 PA 139, sections 11a, 11j, 11k, 11m, 11r, 15, 20, 20d, 20f, 20g, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25e, 25f, 26a, 26b, 26c, 31d, 31f, 32p, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 64b, 74, 81, 94, 94a, 99h, 101, 104, 104b, 104c, 147, 147a, 147c, 152a, 201, 201a, 206, 207a, 207b, 207c, 209, 210b, 217, 222, 225, 226, 229a, 236, 236a, 236b, 236c, 241, 246, 252, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274, 276, 277, 278, 279, 280, 281, 282, 283, and 284 as amended and sections 25g, 31c, 31h, 35, 35a, 55, 61b, 65, 67, 99s, 102d, 104d, and 274c as added by 2015 PA 85, section 18 as amended by 2015 PA 114, sections 19, 202a, 224, and 275 as amended by 2014 PA 196, section 166 as amended by 1996 PA 300, section 166b as amended by 2015 PA 222, and section 290 as amended by 2013 PA 60, and by adding sections 11o, 11s, 20m, 21, 21g, 31b, 31j, 32q, 54b, 61c, 63, 99t, 152b, 167a, 210e, 236d, and 286a; and to repeal acts and parts of acts.

 

 

 

_______________________                 ________________________

Dave Hildenbrand                        Al Pscholka

 

_______________________                 ________________________

Arlan B. Meekhof                        Tim Kelly

 

_______________________                 ________________________

Hoon-Yung Hopgood                       Harvey Santana

 

Conferees for the Senate                Conferees for the House

 

SUBSTITUTE FOR

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 801

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 3, 4, 6, 11, 11a, 11j, 11k, 11m, 11r, 15, 18,

 

19, 20, 20d, 20f, 20g, 21f, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c,

 

25e, 25f, 25g, 26a, 26b, 26c, 31a, 31c, 31d, 31f, 31h, 32d, 32p,

 

35, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 55, 56, 61a, 61b, 62,

 

64b, 65, 67, 74, 81, 94, 94a, 98, 99h, 99s, 101, 102d, 104, 104b,

 

104c, 104d, 107, 147, 147a, 147c, 152a, 166, 166b, 201, 201a, 202a,

 

203, 206, 207, 207a, 207b, 207c, 209, 210b, 212, 217, 219, 220,

 

222, 223, 224, 225, 226, 229a, 230, 236, 236a, 236b, 236c, 237b,

 

241, 246, 251, 252, 254, 256, 263, 263a, 264, 265, 265a, 267, 268,

 

269, 270, 274, 274c, 275, 276, 277, 278, 279, 280, 281, 282, 283,

 

284, and 290 (MCL 388.1603, 388.1604, 388.1606, 388.1611,

 

388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611r, 388.1615,

 


388.1618, 388.1619, 388.1620, 388.1620d, 388.1620f, 388.1620g,

 

388.1621f, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1623a,

 

388.1624, 388.1624a, 388.1624c, 388.1625e, 388.1625f, 388.1625g,

 

388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631c, 388.1631d,

 

388.1631f, 388.1631h, 388.1632d, 388.1632p, 388.1635, 388.1635a,

 

388.1639, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d,

 

388.1653a, 388.1654, 388.1655, 388.1656, 388.1661a, 388.1661b,

 

388.1662, 388.1664b, 388.1665, 388.1667, 388.1674, 388.1681,

 

388.1694, 388.1694a, 388.1698, 388.1699h, 388.1699s, 388.1701,

 

388.1702d, 388.1704, 388.1704b, 388.1704c, 388.1704d, 388.1707,

 

388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1766, 388.1766b,

 

388.1801, 388.1801a, 388.1802a, 388.1803, 388.1806, 388.1807,

 

388.1807a, 388.1807b, 388.1807c, 388.1809, 388.1810b, 388.1812,

 

388.1817, 388.1819, 388.1820, 388.1822, 388.1823, 388.1824,

 

388.1825, 388.1826, 388.1829a, 388.1830, 388.1836, 388.1836a,

 

388.1836b, 388.1836c, 388.1837b, 388.1841, 388.1846, 388.1851,

 

388.1852, 388.1854, 388.1856, 388.1863, 388.1863a, 388.1864,

 

388.1865, 388.1865a, 388.1867, 388.1868, 388.1869, 388.1870,

 

388.1874, 388.1874c, 388.1875, 388.1876, 388.1877, 388.1878,

 

388.1879, 388.1880, 388.1881, 388.1882, 388.1883, 388.1884, and

 

388.1890), sections 3, 203, 207, 212, 219, 220, 223, 251, and 254

 

as amended and section 237b as added by 2012 PA 201, sections 4, 6,

 

98, 107, 230, and 256 as amended by 2016 PA 56, sections 11, 21f,

 

31a, and 32d as amended by 2015 PA 139, sections 11a, 11j, 11k,

 

11m, 11r, 15, 20, 20d, 20f, 20g, 22a, 22b, 22d, 22g, 23a, 24, 24a,

 

24c, 25e, 25f, 26a, 26b, 26c, 31d, 31f, 32p, 39, 39a, 41, 51a, 51c,

 

51d, 53a, 54, 56, 61a, 62, 64b, 74, 81, 94, 94a, 99h, 101, 104,


104b, 104c, 147, 147a, 147c, 152a, 201, 201a, 206, 207a, 207b,

 

207c, 209, 210b, 217, 222, 225, 226, 229a, 236, 236a, 236b, 236c,

 

241, 246, 252, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274,

 

276, 277, 278, 279, 280, 281, 282, 283, and 284 as amended and

 

sections 25g, 31c, 31h, 35, 35a, 55, 61b, 65, 67, 99s, 102d, 104d,

 

and 274c as added by 2015 PA 85, section 18 as amended by 2015 PA

 

114, sections 19, 202a, 224, and 275 as amended by 2014 PA 196,

 

section 166 as amended by 1996 PA 300, section 166b as amended by

 

2015 PA 222, and section 290 as amended by 2013 PA 60, and by

 

adding sections 11o, 11s, 20m, 21, 21g, 31b, 31j, 32q, 54b, 61c,

 

63, 99t, 152b, 167a, 210e, 236d, and 286a; and to repeal acts and

 

parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) "Achievement authority" means the education

 

achievement authority, the public body corporate and special

 

authority initially created under section 5 of article III and

 

section 28 of article VII of the state constitution of 1963 and the

 

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

 

124.512, by an interlocal agreement effective August 11, 2011,

 

between the school district of the city of Detroit and the board of

 

regents of eastern Michigan university, Eastern Michigan

 

University, a state public university.

 

     (2) "Achievement school" means a public school within the

 

education achievement system operated, managed, authorized,

 

established, or overseen by the achievement authority.

 

     (3) "Average daily attendance", for the purposes of complying

 

with federal law, means 92% of the pupils counted in membership on


the pupil membership count day, as defined in section 6(7).

 

     (4) "Board" means the governing body of a district or public

 

school academy.

 

     (5) "Center" means the center for educational performance and

 

information created in section 94a.

 

     (6) "Community district" means a school district organized

 

under part 5b of the revised school code.

 

     (7) (6) "Cooperative education program" means a written

 

voluntary agreement between and among districts to provide certain

 

educational programs for pupils in certain groups of districts. The

 

written agreement shall be approved by all affected districts at

 

least annually and shall specify the educational programs to be

 

provided and the estimated number of pupils from each district who

 

will participate in the educational programs.

 

     (8) (7) "Department", except in section 107, means the

 

department of education.

 

     (9) (8) "District" means a local school district established

 

under the revised school code or, except in sections 6(4), 6(6),

 

13, 20, 22a, 31a, 51a(14), 105, 105c, and 166b, a public school

 

academy. Except in sections 6(4), 6(6), 6(8), 13, 20, 22a, 31a,

 

105, 105c, and 166b, district also includes the education

 

achievement system. Except in section 20, district also includes a

 

community district.

 

     (10) (9) "District of residence", except as otherwise provided

 

in this subsection, means the district in which a pupil's custodial

 

parent or parents or legal guardian resides. For a pupil described

 

in section 24b, the pupil's district of residence is the district


in which the pupil enrolls under that section. For a pupil

 

described in section 6(4)(d), the pupil's district of residence

 

shall be considered to be the district or intermediate district in

 

which the pupil is counted in membership under that section. For a

 

pupil under court jurisdiction who is placed outside the district

 

in which the pupil's custodial parent or parents or legal guardian

 

resides, the pupil's district of residence shall be considered to

 

be the educating district or educating intermediate district.

 

     (11) (10) "District superintendent" means the superintendent

 

of a district, the chief administrator of a public school academy,

 

or the chancellor of the achievement authority.

 

     Sec. 4. (1) "Education achievement system" means the

 

achievement authority and all achievement schools.

 

     (2) "Elementary pupil" means a pupil in membership in grades K

 

to 8 in a district not maintaining classes above the eighth grade

 

or in grades K to 6 in a district maintaining classes above the

 

eighth grade. For the purposes of calculating universal service

 

fund (e-rate) discounts, "elementary pupil" includes children

 

enrolled in a preschool program operated by a district in its

 

facilities.

 

     (3) "Extended school year" means an educational program

 

conducted by a district in which pupils must be enrolled but not

 

necessarily in attendance on the pupil membership count day in an

 

extended year program. The mandatory clock hours shall be completed

 

by each pupil not more than 365 calendar days after the pupil's

 

first day of classes for the school year prescribed. The department

 

shall prescribe pupil, personnel, and other reporting requirements


for the educational program.

 

     (4) "Fiscal year" means the state fiscal year that commences

 

October 1 and continues through September 30.

 

     (5) "High school equivalency certificate" means a certificate

 

granted for the successful completion of a high school equivalency

 

test.

 

     (6) "High school equivalency test" means a high school

 

equivalency test approved by the department under section 107.the

 

G.E.D. test developed by the GED Testing Service, the Test

 

Assessing Secondary Completion (TASC) developed by CTS/McGraw-Hill,

 

the HISET test developed by the Education Testing Service (ETS), or

 

another comparable test approved by the department of talent and

 

economic development.

 

     (7) "High school equivalency test preparation program" means a

 

program that has high school level courses in English language

 

arts, social studies, science, and mathematics and that prepares an

 

individual to successfully complete a high school equivalency test.

 

     (8) "High school pupil" means a pupil in membership in grades

 

7 to 12, except in a district not maintaining grades above the

 

eighth grade.

 

     Sec. 6. (1) "Center program" means a program operated by a

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health


impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

district or shall serve several districts with less than 50% of the

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

disabilities education act, 20 USC 1412, may be considered center

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

     (2) "District and high school graduation rate" means the

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

     (3) "District and high school graduation report" means a

 

report of the number of pupils, excluding adult education

 

participants, in the district for the immediately preceding school

 

year, adjusted for those pupils who have transferred into or out of

 

the district or high school, who leave high school with a diploma

 

or other credential of equal status.

 

     (4) "Membership", except as otherwise provided in this

 

article, means for a district, a public school academy, the

 

education achievement system, or an intermediate district the sum

 

of the product of .90 times the number of full-time equated pupils

 

in grades K to 12 actually enrolled and in regular daily attendance

 

on the pupil membership count day for the current school year, plus


the product of .10 times the final audited count from the

 

supplemental count day for the immediately preceding school year. A

 

district's, public school academy's, or intermediate district's

 

membership shall be adjusted as provided under section 25e for

 

pupils who enroll in the district, public school academy, or

 

intermediate district after the pupil membership count day in a

 

strict discipline academy operating under sections 1311b to 1311m

 

of the revised school code, MCL 380.1311b to 380.1311m. However,

 

for a district that is a community district in its first year of

 

operation, "membership" means the sum of the product of .90 times

 

the number of full-time equated pupils in grades K to 12 actually

 

enrolled and in regular daily attendance in the community district

 

on the pupil membership count day for the current school year, plus

 

the product of .10 times the final audited count from the

 

supplemental count day of pupils in grades K to 12 actually

 

enrolled and in regular daily attendance in a qualifying school

 

district as defined in section 5 of the revised school code, MCL

 

380.5, for the immediately preceding school year. All pupil counts

 

used in this subsection are as determined by the department and

 

calculated by adding the number of pupils registered for attendance

 

plus pupils received by transfer and minus pupils lost as defined

 

by rules promulgated by the superintendent, and as corrected by a

 

subsequent department audit. For the purposes of this section and

 

section 6a, for a school of excellence that is a cyber school, as

 

defined in section 551 of the revised school code, MCL 380.551, and

 

is in compliance with section 553a of the revised school code, MCL

 

380.553a, a pupil's participation in the cyber school's educational


program is considered regular daily attendance; for the education

 

achievement system, a pupil's participation in an online a virtual

 

educational program of the education achievement system or of an

 

achievement school is considered regular daily attendance; and for

 

a district a pupil's participation in an online a virtual course as

 

defined in section 21f is considered regular daily attendance. The

 

amount of the foundation allowance for a pupil in membership is

 

determined under section 20. In making the calculation of

 

membership, all of the following, as applicable, apply to

 

determining the membership of a district, a public school academy,

 

the education achievement system, or an intermediate district:

 

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

 

pursuant to subsection (6), a pupil shall be counted in membership

 

in the pupil's educating district or districts. An individual pupil

 

shall not be counted for more than a total of 1.0 full-time equated

 

membership.

 

     (b) If a pupil is educated in a district other than the

 

pupil's district of residence, if the pupil is not being educated

 

as part of a cooperative education program, if the pupil's district

 

of residence does not give the educating district its approval to

 

count the pupil in membership in the educating district, and if the

 

pupil is not covered by an exception specified in subsection (6) to

 

the requirement that the educating district must have the approval

 

of the pupil's district of residence to count the pupil in

 

membership, the pupil shall not be counted in membership in any

 

district.

 

     (c) A special education pupil educated by the intermediate


district shall be counted in membership in the intermediate

 

district.

 

     (d) A pupil placed by a court or state agency in an on-grounds

 

program of a juvenile detention facility, a child caring

 

institution, or a mental health institution, or a pupil funded

 

under section 53a, shall be counted in membership in the district

 

or intermediate district approved by the department to operate the

 

program.

 

     (e) A pupil enrolled in the Michigan schools for the deaf and

 

blind shall be counted in membership in the pupil's intermediate

 

district of residence.

 

     (f) A pupil enrolled in a career and technical education

 

program supported by a millage levied over an area larger than a

 

single district or in an area vocational-technical education

 

program established pursuant to section 690 of the revised school

 

code, MCL 380.690, shall be counted only in the pupil's district of

 

residence.

 

     (g) A pupil enrolled in a public school academy shall be

 

counted in membership in the public school academy.

 

     (h) A pupil enrolled in an achievement school shall be counted

 

in membership in the education achievement system.

 

     (i) For a new district or public school academy beginning its

 

operation after December 31, 1994, or for the education achievement

 

system or an achievement school, membership for the first 2 full or

 

partial fiscal years of operation shall be determined as follows:

 

     (i) If operations begin before the pupil membership count day

 

for the fiscal year, membership is the average number of full-time


equated pupils in grades K to 12 actually enrolled and in regular

 

daily attendance on the pupil membership count day for the current

 

school year and on the supplemental count day for the current

 

school year, as determined by the department and calculated by

 

adding the number of pupils registered for attendance on the pupil

 

membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent,

 

and as corrected by a subsequent department audit, plus the final

 

audited count from the supplemental count day for the current

 

school year, and dividing that sum by 2.

 

     (ii) If operations begin after the pupil membership count day

 

for the fiscal year and not later than the supplemental count day

 

for the fiscal year, membership is the final audited count of the

 

number of full-time equated pupils in grades K to 12 actually

 

enrolled and in regular daily attendance on the supplemental count

 

day for the current school year.

 

     (j) If a district is the authorizing body for a public school

 

academy, then, in the first school year in which pupils are counted

 

in membership on the pupil membership count day in the public

 

school academy, the determination of the district's membership

 

shall exclude from the district's pupil count for the immediately

 

preceding supplemental count day any pupils who are counted in the

 

public school academy on that first pupil membership count day who

 

were also counted in the district on the immediately preceding

 

supplemental count day.

 

     (k) In a district, a public school academy, the education

 

achievement system, or an intermediate district operating an


extended school year program approved by the superintendent, a

 

pupil enrolled, but not scheduled to be in regular daily attendance

 

on a pupil membership count day, shall be counted.

 

     (l) To be counted in membership, a pupil shall meet the

 

minimum age requirement to be eligible to attend school under

 

section 1147 of the revised school code, MCL 380.1147, or shall be

 

enrolled under subsection (3) of that section, and shall be less

 

than 20 years of age on September 1 of the school year except as

 

follows:

 

     (i) A special education pupil who is enrolled and receiving

 

instruction in a special education program or service approved by

 

the department, who does not have a high school diploma, and who is

 

less than 26 years of age as of September 1 of the current school

 

year shall be counted in membership.

 

     (ii) A pupil who is determined by the department to meet all

 

of the following may be counted in membership:

 

     (A) Is enrolled in a public school academy or an alternative

 

education high school diploma program, that is primarily focused on

 

educating homeless pupils with extreme barriers to education, such

 

as being homeless as defined under 42 USC 11302.

 

     (B) Had dropped out of school. for more than 1 year and has

 

re-entered school.

 

     (C) Is less than 22 years of age as of September 1 of the

 

current school year.

 

     (D) Is considered to be homeless under 42 USC 11302, or was

 

counted in membership under this subparagraph in 2014-2015.

 

     (iii) If a child does not meet the minimum age requirement to


be eligible to attend school for that school year under section

 

1147 of the revised school code, MCL 380.1147, but will be 5 years

 

of age not later than December 1 of that school year, the district

 

may count the child in membership for that school year if the

 

parent or legal guardian has notified the district in writing that

 

he or she intends to enroll the child in kindergarten for that

 

school year.

 

     (m) An individual who has obtained achieved a high school

 

diploma shall not be counted in membership. An individual who has

 

achieved a high school equivalency certificate shall not be counted

 

in membership unless the individual is a student with a disability

 

as defined in R 340.1702 of the Michigan administrative code. An

 

individual participating in a job training program funded under

 

former section 107a or a jobs program funded under former section

 

107b, administered by the Michigan strategic fund, department of

 

talent and economic development, or participating in any successor

 

of either of those 2 programs, shall not be counted in membership.

 

     (n) If a pupil counted in membership in a public school

 

academy or the education achievement system is also educated by a

 

district or intermediate district as part of a cooperative

 

education program, the pupil shall be counted in membership only in

 

the public school academy or the education achievement system

 

unless a written agreement signed by all parties designates the

 

party or parties in which the pupil shall be counted in membership,

 

and the instructional time scheduled for the pupil in the district

 

or intermediate district shall be included in the full-time equated

 

membership determination under subdivision (q) and section 101.


However, for pupils receiving instruction in both a public school

 

academy or the education achievement system and in a district or

 

intermediate district but not as a part of a cooperative education

 

program, the following apply:

 

     (i) If the public school academy or the education achievement

 

system provides instruction for at least 1/2 of the class hours

 

required under section 101, the public school academy or the

 

education achievement system shall receive as its prorated share of

 

the full-time equated membership for each of those pupils an amount

 

equal to 1 times the product of the hours of instruction the public

 

school academy or the education achievement system provides divided

 

by the number of hours required under section 101 for full-time

 

equivalency, and the remainder of the full-time membership for each

 

of those pupils shall be allocated to the district or intermediate

 

district providing the remainder of the hours of instruction.

 

     (ii) If the public school academy or the education achievement

 

system provides instruction for less than 1/2 of the class hours

 

required under section 101, the district or intermediate district

 

providing the remainder of the hours of instruction shall receive

 

as its prorated share of the full-time equated membership for each

 

of those pupils an amount equal to 1 times the product of the hours

 

of instruction the district or intermediate district provides

 

divided by the number of hours required under section 101 for full-

 

time equivalency, and the remainder of the full-time membership for

 

each of those pupils shall be allocated to the public school

 

academy or the education achievement system.

 

     (o) An individual less than 16 years of age as of September 1


of the current school year who is being educated in an alternative

 

education program shall not be counted in membership if there are

 

also adult education participants being educated in the same

 

program or classroom.

 

     (p) The department shall give a uniform interpretation of

 

full-time and part-time memberships.

 

     (q) The number of class hours used to calculate full-time

 

equated memberships shall be consistent with section 101. In

 

determining full-time equated memberships for pupils who are

 

enrolled in a postsecondary institution, a pupil shall not be

 

considered to be less than a full-time equated pupil solely because

 

of the effect of his or her postsecondary enrollment, including

 

necessary travel time, on the number of class hours provided by the

 

district to the pupil.

 

     (r) Full-time equated memberships for pupils in kindergarten

 

shall be determined by dividing the number of instructional hours

 

scheduled and provided per year per kindergarten pupil by the same

 

number used for determining full-time equated memberships for

 

pupils in grades 1 to 12. However, to the extent allowable under

 

federal law, for a district or public school academy that provides

 

evidence satisfactory to the department that it used federal title

 

I money in the 2 immediately preceding school fiscal years to fund

 

full-time kindergarten, full-time equated memberships for pupils in

 

kindergarten shall be determined by dividing the number of class

 

hours scheduled and provided per year per kindergarten pupil by a

 

number equal to 1/2 the number used for determining full-time

 

equated memberships for pupils in grades 1 to 12. The change in the


counting of full-time equated memberships for pupils in

 

kindergarten that took effect for 2012-2013 is not a mandate.

 

     (s) For a district, a public school academy, or the education

 

achievement system that has pupils enrolled in a grade level that

 

was not offered by the district, the public school academy, or the

 

education achievement system in the immediately preceding school

 

year, the number of pupils enrolled in that grade level to be

 

counted in membership is the average of the number of those pupils

 

enrolled and in regular daily attendance on the pupil membership

 

count day and the supplemental count day of the current school

 

year, as determined by the department. Membership shall be

 

calculated by adding the number of pupils registered for attendance

 

in that grade level on the pupil membership count day plus pupils

 

received by transfer and minus pupils lost as defined by rules

 

promulgated by the superintendent, and as corrected by subsequent

 

department audit, plus the final audited count from the

 

supplemental count day for the current school year, and dividing

 

that sum by 2.

 

     (t) A pupil enrolled in a cooperative education program may be

 

counted in membership in the pupil's district of residence with the

 

written approval of all parties to the cooperative agreement.

 

     (u) If, as a result of a disciplinary action, a district

 

determines through the district's alternative or disciplinary

 

education program that the best instructional placement for a pupil

 

is in the pupil's home or otherwise apart from the general school

 

population, if that placement is authorized in writing by the

 

district superintendent and district alternative or disciplinary


education supervisor, and if the district provides appropriate

 

instruction as described in this subdivision to the pupil at the

 

pupil's home or otherwise apart from the general school population,

 

the district may count the pupil in membership on a pro rata basis,

 

with the proration based on the number of hours of instruction the

 

district actually provides to the pupil divided by the number of

 

hours required under section 101 for full-time equivalency. For the

 

purposes of this subdivision, a district shall be considered to be

 

providing appropriate instruction if all of the following are met:

 

     (i) The district provides at least 2 nonconsecutive hours of

 

instruction per week to the pupil at the pupil's home or otherwise

 

apart from the general school population under the supervision of a

 

certificated teacher.

 

     (ii) The district provides instructional materials, resources,

 

and supplies that are comparable to those otherwise provided in the

 

district's alternative education program.

 

     (iii) Course content is comparable to that in the district's

 

alternative education program.

 

     (iv) Credit earned is awarded to the pupil and placed on the

 

pupil's transcript.

 

     (v) If a pupil was enrolled in a public school academy on the

 

pupil membership count day, if the public school academy's contract

 

with its authorizing body is revoked or the public school academy

 

otherwise ceases to operate, and if the pupil enrolls in a district

 

or the education achievement system within 45 days after the pupil

 

membership count day, the department shall adjust the district's or

 

the education achievement system's pupil count for the pupil


membership count day to include the pupil in the count.

 

     (w) For a public school academy that has been in operation for

 

at least 2 years and that suspended operations for at least 1

 

semester and is resuming operations, membership is the sum of the

 

product of .90 times the number of full-time equated pupils in

 

grades K to 12 actually enrolled and in regular daily attendance on

 

the first pupil membership count day or supplemental count day,

 

whichever is first, occurring after operations resume, plus the

 

product of .10 times the final audited count from the most recent

 

pupil membership count day or supplemental count day that occurred

 

before suspending operations, as determined by the superintendent.

 

     (x) If a district's membership for a particular fiscal year,

 

as otherwise calculated under this subsection, would be less than

 

1,550 pupils and the district has 4.5 or fewer pupils per square

 

mile, as determined by the department, and if the district does not

 

receive funding under section 22d(2), the district's membership

 

shall be considered to be the membership figure calculated under

 

this subdivision. If a district educates and counts in its

 

membership pupils in grades 9 to 12 who reside in a contiguous

 

district that does not operate grades 9 to 12 and if 1 or both of

 

the affected districts request the department to use the

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

number of pupils per square mile for each of the districts for the

 

purposes of this subdivision. The membership figure calculated

 

under this subdivision is the greater of the following:

 

     (i) The average of the district's membership for the 3-fiscal-


year period ending with that fiscal year, calculated by adding the

 

district's actual membership for each of those 3 fiscal years, as

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

     (ii) The district's actual membership for that fiscal year as

 

otherwise calculated under this subsection.

 

     (y) Full-time equated memberships for special education pupils

 

who are not enrolled in kindergarten but are enrolled in a

 

classroom program under R 340.1754 of the Michigan administrative

 

code shall be determined by dividing the number of class hours

 

scheduled and provided per year by 450. Full-time equated

 

memberships for special education pupils who are not enrolled in

 

kindergarten but are receiving early childhood special education

 

services under R 340.1755 or R 340.1862 of the Michigan

 

administrative code shall be determined by dividing the number of

 

hours of service scheduled and provided per year per-pupil by 180.

 

     (z) A pupil of a district that begins its school year after

 

Labor Day who is enrolled in an intermediate district program that

 

begins before Labor Day shall not be considered to be less than a

 

full-time pupil solely due to instructional time scheduled but not

 

attended by the pupil before Labor Day.

 

     (aa) For the first year in which a pupil is counted in

 

membership on the pupil membership count day in a middle college

 

program, the membership is the average of the full-time equated

 

membership on the pupil membership count day and on the

 

supplemental count day for the current school year, as determined

 

by the department. If a pupil described in this subdivision was


counted in membership by the operating district on the immediately

 

preceding supplemental count day, the pupil shall be excluded from

 

the district's immediately preceding supplemental count for the

 

purposes of determining the district's membership.

 

     (bb) A district, a public school academy, or the education

 

achievement system that educates a pupil who attends a United

 

States Olympic Education Center may count the pupil in membership

 

regardless of whether or not the pupil is a resident of this state.

 

     (cc) A pupil enrolled in a district other than the pupil's

 

district of residence pursuant to section 1148(2) of the revised

 

school code, MCL 380.1148, shall be counted in the educating

 

district or the education achievement system.

 

     (dd) For a pupil enrolled in a dropout recovery program that

 

meets the requirements of section 23a, the pupil shall be counted

 

as 1/12 of a full-time equated membership for each month that the

 

district operating the program reports that the pupil was enrolled

 

in the program and was in full attendance. However, if the special

 

membership counting provisions under this subdivision and the

 

operation of the other membership counting provisions under this

 

subsection result in a pupil being counted as more than 1.0 FTE in

 

a fiscal year, the payment made for the pupil under sections 22a

 

and 22b shall not be based on more than 1.0 FTE for that pupil, and

 

any portion of an FTE for that pupil that exceeds 1.0 shall instead

 

be paid under section 25g. The district operating the program shall

 

report to the center the number of pupils who were enrolled in the

 

program and were in full attendance for a month not later than the

 

tenth day of the next month. 30 days after the end of the month. A


district shall not report a pupil as being in full attendance for a

 

month unless both of the following are met:

 

     (i) A personalized learning plan is in place on or before the

 

first school day of the month for the first month the pupil

 

participates in the program.

 

     (ii) The pupil meets the district's definition under section

 

23a of satisfactory monthly progress for that month or, if the

 

pupil does not meet that definition of satisfactory monthly

 

progress for that month, the pupil did meet that definition of

 

satisfactory monthly progress in the immediately preceding month

 

and appropriate interventions are implemented within 10 school days

 

after it is determined that the pupil does not meet that definition

 

of satisfactory monthly progress.

 

     (ee) A pupil participating in an online a virtual course under

 

section 21f shall be counted in membership in the district

 

enrolling the pupil.

 

     (ff) If a public school academy that is not in its first or

 

second year of operation closes at the end of a school year and

 

does not reopen for the next school year, the department shall

 

adjust the membership count of the district or the education

 

achievement system in which a former pupil of the public school

 

academy enrolls and is in regular daily attendance for the next

 

school year to ensure that the district or the education

 

achievement system receives the same amount of membership aid for

 

the pupil as if the pupil were counted in the district or the

 

education achievement system on the supplemental count day of the

 

preceding school year.


     (gg) If a special education pupil is expelled under section

 

1311 or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a, and is not in attendance on the pupil membership count

 

day because of the expulsion, and if the pupil remains enrolled in

 

the district and resumes regular daily attendance during that

 

school year, the district's membership shall be adjusted to count

 

the pupil in membership as if he or she had been in attendance on

 

the pupil membership count day.

 

     (hh) A pupil enrolled in a community district shall be counted

 

in membership in the community district. For a community district

 

in its first fiscal year of operations only, until the department

 

is able to calculate the community district's membership, the

 

department shall consider the community district's membership to be

 

the same as the membership for the immediately preceding fiscal

 

year for a district with the same boundaries as the community

 

district that had membership for that fiscal year.

 

     (5) "Public school academy" means that term as defined in

 

section 5 of the revised school code, MCL 380.5.

 

     (6) "Pupil" means a person in membership in a public school. A

 

district must have the approval of the pupil's district of

 

residence to count the pupil in membership, except approval by the

 

pupil's district of residence is not required for any of the

 

following:

 

     (a) A nonpublic part-time pupil enrolled in grades K to 12 in

 

accordance with section 166b.

 

     (b) A pupil receiving 1/2 or less of his or her instruction in

 

a district other than the pupil's district of residence.


     (c) A pupil enrolled in a public school academy or the

 

education achievement system.

 

     (d) A pupil enrolled in a district other than the pupil's

 

district of residence under an intermediate district schools of

 

choice pilot program as described in section 91a or former section

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

     (e) A pupil enrolled in a district other than the pupil's

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

     (f) A pupil who has made an official written complaint or

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

the pupil's district of residence that the pupil has been the

 

victim of a criminal sexual assault or other serious assault, if

 

the official complaint either indicates that the assault occurred

 

at school or that the assault was committed by 1 or more other

 

pupils enrolled in the school the pupil would otherwise attend in

 

the district of residence or by an employee of the district of

 

residence. A person who intentionally makes a false report of a

 

crime to law enforcement officials for the purposes of this

 

subdivision is subject to section 411a of the Michigan penal code,

 

1931 PA 328, MCL 750.411a, which provides criminal penalties for

 

that conduct. As used in this subdivision:

 

     (i) "At school" means in a classroom, elsewhere on school

 

premises, on a school bus or other school-related vehicle, or at a

 

school-sponsored activity or event whether or not it is held on


school premises.

 

     (ii) "Serious assault" means an act that constitutes a felony

 

violation of chapter XI of the Michigan penal code, 1931 PA 328,

 

MCL 750.81 to 750.90h, or that constitutes an assault and

 

infliction of serious or aggravated injury under section 81a of the

 

Michigan penal code, 1931 PA 328, MCL 750.81a.

 

     (g) A pupil whose district of residence changed after the

 

pupil membership count day and before the supplemental count day

 

and who continues to be enrolled on the supplemental count day as a

 

nonresident in the district in which he or she was enrolled as a

 

resident on the pupil membership count day of the same school year.

 

     (h) A pupil enrolled in an alternative education program

 

operated by a district other than his or her district of residence

 

who meets 1 or more of the following:

 

     (i) The pupil has been suspended or expelled from his or her

 

district of residence for any reason, including, but not limited

 

to, a suspension or expulsion under section 1310, 1311, or 1311a of

 

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

 

     (ii) The pupil had previously dropped out of school.

 

     (iii) The pupil is pregnant or is a parent.

 

     (iv) The pupil has been referred to the program by a court.

 

     (i) A pupil enrolled in the Michigan Virtual School, for the

 

pupil's enrollment in the Michigan Virtual School.

 

     (j) A pupil who is the child of a person who works at the

 

district or who is the child of a person who worked at the district

 

as of the time the pupil first enrolled in the district but who no

 

longer works at the district due to a workforce reduction. As used


in this subdivision, "child" includes an adopted child, stepchild,

 

or legal ward.

 

     (k) An expelled pupil who has been denied reinstatement by the

 

expelling district and is reinstated by another school board under

 

section 1311 or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a.

 

     (l) A pupil enrolled in a district other than the pupil's

 

district of residence in a middle college program if the pupil's

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

     (m) A pupil enrolled in a district other than the pupil's

 

district of residence who attends a United States Olympic Education

 

Center.

 

     (n) A pupil enrolled in a district other than the pupil's

 

district of residence pursuant to section 1148(2) of the revised

 

school code, MCL 380.1148.

 

     (o) A pupil who enrolls in a district other than the pupil's

 

district of residence as a result of the pupil's school not making

 

adequate yearly progress under the no child left behind act of

 

2001, Public Law 107-110, or the every student succeeds act, Public

 

Law 114-95.

 

     However, except for pupils enrolled in the youth challenge

 

program at the site at which the youth challenge program operated

 

for 2015-2016, if a district educates pupils who reside in another

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating


district must have the approval of that other district to count

 

those pupils in membership.

 

     (7) "Pupil membership count day" of a district or intermediate

 

district means:

 

     (a) Except as provided in subdivision (b), the first Wednesday

 

in October each school year or, for a district or building in which

 

school is not in session on that Wednesday due to conditions not

 

within the control of school authorities, with the approval of the

 

superintendent, the immediately following day on which school is in

 

session in the district or building.

 

     (b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

     (i) Fourth Wednesday in July.

 

     (ii) First Wednesday in October.

 

     (iii) Second Wednesday in February.

 

     (iv) Fourth Wednesday in April.

 

     (8) "Pupils in grades K to 12 actually enrolled and in regular

 

daily attendance" means pupils in grades K to 12 in attendance and

 

receiving instruction in all classes for which they are enrolled on

 

the pupil membership count day or the supplemental count day, as

 

applicable. Except as otherwise provided in this subsection, a

 

pupil who is absent from any of the classes in which the pupil is

 

enrolled on the pupil membership count day or supplemental count

 

day and who does not attend each of those classes during the 10

 

consecutive school days immediately following the pupil membership

 

count day or supplemental count day, except for a pupil who has

 

been excused by the district, shall not be counted as 1.0 full-time


equated membership. A pupil who is excused from attendance on the

 

pupil membership count day or supplemental count day and who fails

 

to attend each of the classes in which the pupil is enrolled within

 

30 calendar days after the pupil membership count day or

 

supplemental count day shall not be counted as 1.0 full-time

 

equated membership. In addition, a pupil who was enrolled and in

 

attendance in a district, an intermediate district, a public school

 

academy, or the education achievement system before the pupil

 

membership count day or supplemental count day of a particular year

 

but was expelled or suspended on the pupil membership count day or

 

supplemental count day shall only be counted as 1.0 full-time

 

equated membership if the pupil resumed attendance in the district,

 

intermediate district, public school academy, or education

 

achievement system within 45 days after the pupil membership count

 

day or supplemental count day of that particular year. Pupils not

 

counted as 1.0 full-time equated membership due to an absence from

 

a class shall be counted as a prorated membership for the classes

 

the pupil attended. For purposes of this subsection, "class" means

 

a period of time in 1 day when pupils and a certificated teacher or

 

legally qualified substitute teacher are together and instruction

 

is taking place.

 

     (9) "Rule" means a rule promulgated pursuant to the

 

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

 

24.328.

 

     (10) "The revised school code" means 1976 PA 451, MCL 380.1 to

 

380.1852.

 

     (11) "School district of the first class", "first class school


district", and "district of the first class" mean, for the purposes

 

of this article only, a district that had at least 40,000 pupils in

 

membership for the immediately preceding fiscal year.

 

     (12) "School fiscal year" means a fiscal year that commences

 

July 1 and continues through June 30.

 

     (13) "State board" means the state board of education.

 

     (14) "Superintendent", unless the context clearly refers to a

 

district or intermediate district superintendent, means the

 

superintendent of public instruction described in section 3 of

 

article VIII of the state constitution of 1963.

 

     (15) "Supplemental count day" means the day on which the

 

supplemental pupil count is conducted under section 6a.

 

     (16) "Tuition pupil" means a pupil of school age attending

 

school in a district other than the pupil's district of residence

 

for whom tuition may be charged to the district of residence.

 

Tuition pupil does not include a pupil who is a special education

 

pupil, a pupil described in subsection (6)(c) to (o), or a pupil

 

whose parent or guardian voluntarily enrolls the pupil in a

 

district that is not the pupil's district of residence. A pupil's

 

district of residence shall not require a high school tuition

 

pupil, as provided under section 111, to attend another school

 

district after the pupil has been assigned to a school district.

 

     (17) "State school aid fund" means the state school aid fund

 

established in section 11 of article IX of the state constitution

 

of 1963.

 

     (18) "Taxable value" means the taxable value of property as

 

determined under section 27a of the general property tax act, 1893


PA 206, MCL 211.27a.

 

     (19) "Textbook" means a book, electronic book, or other

 

instructional print or electronic resource that is selected and

 

approved by the governing board of a district or, for an

 

achievement school, by the chancellor of the achievement authority

 

and that contains a presentation of principles of a subject, or

 

that is a literary work relevant to the study of a subject required

 

for the use of classroom pupils, or another type of course material

 

that forms the basis of classroom instruction.

 

     (20) "Total state aid" or "total state school aid" means the

 

total combined amount of all funds due to a district, intermediate

 

district, or other entity under all of the provisions of this

 

article.

 

     Sec. 11. (1) For the fiscal year ending September 30, 2015,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,814,097,400.00 from the state school aid fund, the sum of

 

$18,000,000.00 from the MPSERS retirement obligation reform reserve

 

fund created under section 147b, and the sum of $33,700,000.00 from

 

the general fund. For the fiscal year ending September 30, 2016,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$12,078,985,100.00 $11,905,439,300.00 from the state school aid

 

fund and the sum of $45,900,000.00 $55,100,000.00 from the general

 

fund. For the fiscal year ending September 30, 2017, there is

 

appropriated for the public schools of this state and certain other

 

state purposes relating to education the sum of $12,052,309,300.00


from the state school aid fund, the sum of $218,900,000.00 from the

 

general fund, an amount not to exceed $72,000,000.00 from the

 

community district education trust fund created under section 12 of

 

the Michigan trust fund act, 2000 PA 489, MCL 12.262, and an amount

 

not to exceed $100.00 from the water emergency reserve fund. In

 

addition, all other available federal funds are appropriated each

 

fiscal year for the fiscal years ending September 30, 2015 2016 and

 

September 30, 2016.2017.

 

     (2) The appropriations under this section shall be allocated

 

as provided in this article. Money appropriated under this section

 

from the general fund shall be expended to fund the purposes of

 

this article before the expenditure of money appropriated under

 

this section from the state school aid fund.

 

     (3) Any general fund allocations under this article that are

 

not expended by the end of the state fiscal year are transferred to

 

the school aid stabilization fund created under section 11a.

 

     Sec. 11a. (1) The school aid stabilization fund is created as

 

a separate account within the state school aid fund established by

 

section 11 of article IX of the state constitution of 1963.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the school aid stabilization fund. The

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

for a fiscal year that remains in the state school aid fund as of

 

the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid


stabilization fund.

 

     (c) Money appropriated to the school aid stabilization fund.

 

     (3) Money available in the school aid stabilization fund may

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

shall be expended only for purposes for which state school aid fund

 

money may be expended.

 

     (4) The state treasurer shall direct the investment of the

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

     (5) Money in the school aid stabilization fund at the close of

 

a fiscal year shall remain in the school aid stabilization fund and

 

shall not lapse to the unreserved school aid fund balance or the

 

general fund.

 

     (6) If the maximum amount appropriated under section 11 from

 

the state school aid fund for a fiscal year exceeds the amount

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 

stabilization fund to the state school aid fund an amount equal to

 

the projected shortfall as determined by the department of

 

treasury, but not to exceed available money in the school aid

 

stabilization fund. If the money in the school aid stabilization

 

fund is insufficient to fully fund an amount equal to the projected

 

shortfall, the state budget director shall notify the legislature

 

as required under section 296(2) and state payments in an amount

 

equal to the remainder of the projected shortfall shall be prorated


in the manner provided under section 296(3).

 

     (7) For 2015-2016, 2016-2017, in addition to the

 

appropriations in section 11, there is appropriated from the school

 

aid stabilization fund to the state school aid fund the amount

 

necessary to fully fund the allocations under this article.

 

     Sec. 11j. From the appropriation in section 11, there is

 

allocated an amount not to exceed $126,500,000.00 $10,500,000.00

 

for 2015-2016 and there is allocated an amount not to exceed

 

$126,500,000.00 for 2016-2017 for payments to the school loan bond

 

redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 296

 

or any other provision of this act, funds allocated under this

 

section are not subject to proration and shall be paid in full.

 

     Sec. 11k. For 2015-2016, 2016-2017, there is appropriated from

 

the general fund to the school loan revolving fund an amount equal

 

to the amount of school bond loans assigned to the Michigan finance

 

authority, not to exceed the total amount of school bond loans held

 

in reserve as long-term assets. As used in this section, "school

 

loan revolving fund" means that fund created in section 16c of the

 

shared credit rating act, 1985 PA 227, MCL 141.1066c.

 

     Sec. 11m. From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $0.00 and there is

 

allocated for 2015-2016 an amount not to exceed $2,000,000.00

 

$1,000,000.00 and there is allocated for 2016-2017 an amount not to

 

exceed $3,000,000.00 for fiscal year cash-flow borrowing costs

 

solely related to the state school aid fund established by section

 

11 of article IX of the state constitution of 1963.


     Sec. 11o. (1) From the general fund appropriation in section

 

11, there is allocated $9,200,000.00 for 2015-2016 to an

 

intermediate district for the purpose of providing state early

 

childhood services described in this section to children who reside

 

within the boundaries of a constituent district with the majority

 

of its territory located within the boundaries of a city for which

 

an executive proclamation of emergency is issued during the fiscal

 

year under the emergency management act, 1976 PA 390, MCL 30.401 to

 

30.421.

 

     (2) From the allocation under subsection (1), there is

 

allocated an amount not to exceed $8,300,000.00 for state early

 

intervention services provided to children less than 5 years of age

 

as of September 1, 2015. The intermediate district shall use the

 

funds to provide state early intervention services that are similar

 

to the services described in the early on Michigan state plan, as

 

approved by the department.

 

     (3) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $650,000.00 to provide summer great start

 

readiness programs and related services, as approved by the

 

department.

 

     (4) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $250,000.00 to a constituent district

 

described in subsection (1) that has an agreement with a

 

postsecondary institution to provide summer early childhood

 

programs similar to great start readiness programs, as approved by

 

the department.

 

     (5) The funds allocated under this section are a work project


appropriation, and any unexpended funds for 2015-2016 are carried

 

forward into 2016-2017. The purpose of the work project is to

 

provide early childhood services described in this section. The

 

estimated completion date of the work project is September 30,

 

2018.

 

     Sec. 11r. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $4,000,000.00 to be

 

deposited into the distressed districts emergency grant fund

 

created under this section for the purpose of funding grants under

 

this section.

 

     (2) The distressed districts emergency grant fund is created

 

as a separate account within the state school aid fund. The state

 

treasurer may receive money or other assets from any source for

 

deposit into the distressed districts emergency grant fund. The

 

state treasurer shall direct the investment of the distressed

 

districts emergency grant fund and shall credit to the distressed

 

districts emergency grant fund interest and earnings from the fund.

 

     (3) Subject to subsection (4), and except as otherwise

 

provided under subsection (8), a district is eligible to receive a

 

grant from the distressed districts emergency grant fund if either

 

of the following applies:

 

     (a) The district has adopted a resolution authorizing the

 

voluntary dissolution of the district approved by the state

 

treasurer under section 12 of the revised school code, MCL 380.12,

 

but the dissolution has not yet taken effect under that section.

 

     (b) The district is a receiving district under section 12 of

 

the revised school code, MCL 380.12, and the district enrolls


pupils who were previously enrolled in a district that was

 

dissolved under section 12 of the revised school code, MCL 380.12,

 

in the immediately preceding school year.

 

     (4) A district receiving funds under section 20g is not

 

eligible to receive funds under this section.

 

     (5) The amount of a grant under this section shall be

 

determined by the state treasurer after consultation with the

 

superintendent of public instruction, but shall not exceed the

 

estimated amount of remaining district costs in excess of available

 

revenues, including, but not limited to, payroll, benefits,

 

retirement system contributions, pupil transportation, food

 

services, special education, building security, and other costs

 

necessary to allow the district to operate schools directly and

 

provide public education services until the end of the current

 

school fiscal year. For a district that meets the eligibility

 

criteria under subsection (3)(b), the amount of the grant shall be

 

determined in the same manner as transition costs under section

 

20g.

 

     (6) Before disbursing funds under this section, the state

 

treasurer shall notify the house and senate appropriations

 

subcommittees on school aid and the house and senate fiscal

 

agencies. The notification shall include, but not be limited to,

 

the district receiving funds under this section, the amount of the

 

funds awarded under this section, an explanation of the district

 

conditions that necessitate funding under this section, and the

 

intended use of funds disbursed under this section.

 

     (7) Money Except as otherwise provided in subsection (8),


money in the distressed districts emergency grant fund at the close

 

of a fiscal year shall remain in the distressed districts emergency

 

grant fund and shall not lapse to the state school aid fund or to

 

the general fund.

 

     (8) For 2014-2015 only, for a district that is a strict

 

discipline academy established under sections 1311b to 1311m of the

 

revised school code, MCL 380.1311b to 380.1311m, that serves at

 

least 340 pupils as reported on the line labeled "State Aid

 

Membership" in the May 2015 state aid financial status report, and

 

that services a program that provided pupil accounting information

 

to the department for the October 2013 data collection on the

 

department form entitled "ANNUAL SURVEY OF CHILDREN IN LOCAL

 

INSTITUTIONS FOR NEGLECTED OR DELINQUENT CHILDREN OR IN

 

CORRECTIONAL INSTITUTIONS (Title I of P.L. 107-110)", but for which

 

the information was not correctly compiled by the department, the

 

department shall award a grant to that district under this

 

subsection from the funding allocated under subsection (1) to

 

compensate the district for the loss in federal funding that

 

occurred as a result of the department's incorrect compilation. The

 

amount of the grant under this subsection for this purpose shall be

 

$178,000.00 for the amount lost for the 2014-2015 school year.

 

     (8) For 2015-2016 only, an amount not to exceed $2,800,000.00

 

shall be lapsed from the distressed districts emergency grant fund

 

to the state school aid fund.

 

     Sec. 11s. (1) From the general fund appropriation in section

 

11, there is allocated $10,142,500.00 for 2016-2017 for the purpose

 

of providing services and programs to children who reside within


the boundaries of a district with the majority of its territory

 

located within the boundaries of a city for which an executive

 

proclamation of emergency is issued in the current or immediately

 

preceding fiscal year under the emergency management act, 1976 PA

 

390, MCL 30.401 to 30.421. From the funding appropriated in section

 

11, there is allocated $100.00 from the water emergency reserve

 

fund for the purposes of this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

to a district with the majority of its territory located within the

 

boundaries of a city in which an executive proclamation of

 

emergency is issued in the current or immediately preceding fiscal

 

year and that has at least 5,000 pupils in membership for the

 

current fiscal year, an amount not to exceed $1,292,500.00 for the

 

purpose of employing school nurses and school social workers. The

 

district shall provide a report to the department in a form,

 

manner, and frequency approved by the department. The department

 

shall provide a copy of that report to the governor, the house and

 

senate school aid subcommittees, the house and senate fiscal

 

agencies, and the state budget director within 5 days after

 

receipt. The report shall provide at least the following

 

information:

 

     (a) How many personnel were hired using the funds allocated

 

under this subsection.

 

     (b) A description of the services provided to pupils by those

 

personnel.

 

     (c) How many pupils received each type of service identified

 

in subdivision (b).


     (d) Any other information the department considers necessary

 

to ensure that the children described in subsection (1) received

 

appropriate levels and types of services.

 

     (3) From the allocation in subsection (1), there is allocated

 

to an intermediate district that has a constituent district

 

described in subsection (2) an amount not to exceed $1,195,000.00

 

to augment staff for the purpose of providing additional early

 

childhood services and for nutritional services to children

 

described in subsection (1), regardless of location of school of

 

attendance. The early childhood services to be provided under this

 

subsection are state early intervention services as described in

 

subsection (4) and early literacy services. In addition, funds

 

allocated under this subsection may also be expended to provide

 

informational resources to parents, educators, and the community,

 

and to coordinate services with other local agencies. The

 

intermediate district shall provide a report to the department in a

 

form, manner, and frequency approved by the department. The

 

department shall provide a copy of that report to the governor, the

 

house and senate school aid subcommittees, the house and senate

 

fiscal agencies, and the state budget director within 5 days after

 

receipt. The report shall provide at least the following

 

information:

 

     (a) How many personnel were hired using the funds appropriated

 

in this subsection.

 

     (b) A description of the services provided to children by

 

those personnel.

 

     (c) What types of additional nutritional services were


provided.

 

     (d) How many children received each type of service identified

 

in subdivisions (b) and (c).

 

     (e) What types of informational resources and coordination

 

efforts were provided.

 

     (f) Any other information the department considers necessary

 

to ensure that the children described in subsection (1) received

 

appropriate levels and types of services.

 

     (4) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $6,155,000.00 to intermediate districts

 

described in subsection (3) to provide state early intervention

 

services for children described in subsection (1) who are less than

 

4 years of age as of September 1, 2016. The intermediate district

 

shall use these funds to provide state early intervention services

 

that are similar to the services described in the early on Michigan

 

state plan, including ensuring that all children described in

 

subsection (1) who are less than 4 years of age as of September 1,

 

2016 are assessed and evaluated at least twice annually.

 

     (5) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $1,500,000.00 to intermediate districts

 

described in subsection (3) to enroll children described in

 

subsection (1) in school-day great start readiness programs,

 

regardless of household income eligibility requirements contained

 

in section 39. The department shall administer this funding

 

consistent with all other provisions of the great start readiness

 

programs contained in section 32d and section 39.

 

     (6) In addition to other funding allocated and appropriated in


this section, there is appropriated an amount not to exceed

 

$15,000,000.00 for 2016-2017 for state restricted contingency

 

funds. These contingency funds are not available for expenditure

 

until they have been transferred to a section within this article

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     Sec. 15. (1) If a district or intermediate district fails to

 

receive its proper apportionment, the department, upon satisfactory

 

proof that the district or intermediate district was entitled

 

justly, shall apportion the deficiency in the next apportionment.

 

Subject to subsections (2) and (3), if a district or intermediate

 

district has received more than its proper apportionment, the

 

department, upon satisfactory proof, shall deduct the excess in the

 

next apportionment. Notwithstanding any other provision in this

 

article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education

 

transportation, may be recovered from any payment made under this

 

article other than a special education or special education

 

transportation payment, from the proceeds of a loan to the district

 

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

 

141.942, or from the proceeds of millage levied or pledged under

 

section 1211 of the revised school code, MCL 380.1211. State aid

 

overpayments made in special education or special education

 

transportation payments may be recovered from subsequent special

 

education or special education transportation payments, from the

 

proceeds of a loan to the district under the emergency municipal

 

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds


of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211.

 

     (2) If the result of an audit conducted by or for the

 

department affects the current fiscal year membership, affected

 

payments shall be adjusted in the current fiscal year. A deduction

 

due to an adjustment made as a result of an audit conducted by or

 

for the department, or as a result of information obtained by the

 

department from the district, an intermediate district, the

 

department of treasury, or the office of auditor general, shall be

 

deducted from the district's apportionments when the adjustment is

 

finalized. At the request of the district and upon the district

 

presenting evidence satisfactory to the department of the hardship,

 

the department may grant up to an additional 4 years for the

 

adjustment and may advance payments to the district otherwise

 

authorized under this article if the district would otherwise

 

experience a significant hardship in satisfying its financial

 

obligations. For a district that is a strict discipline academy

 

established under sections 1311b to 1311m of the revised school

 

code, MCL 380.1311b to 380.1311m, and that claimed a hardship in

 

2014-2015 because of an overpayment caused by a miscalculation of

 

its pupil membership for 2013-2014, the department shall consider

 

the amount of repayment made by the district as of the effective

 

date of the amendatory act that added this sentence to constitute

 

full repayment and the district is not required to continue making

 

repayment for the overpayment that occurred in 2013-2014.

 

     (3) If, based on an audit by the department or the

 

department's designee or because of new or updated information


received by the department, the department determines that the

 

amount paid to a district or intermediate district under this

 

article for the current fiscal year or a prior fiscal year was

 

incorrect, the department shall make the appropriate deduction or

 

payment in the district's or intermediate district's allocation in

 

the next apportionment after the adjustment is finalized. The

 

deduction or payment shall be calculated according to the law in

 

effect in the fiscal year in which the incorrect amount was paid.

 

If the district does not receive an allocation for the fiscal year

 

or if the allocation is not sufficient to pay the amount of any

 

deduction, the amount of any deduction otherwise applicable shall

 

be satisfied from the proceeds of a loan to the district under the

 

emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942,

 

or from the proceeds of millage levied or pledged under section

 

1211 of the revised school code, MCL 380.1211, as determined by the

 

department.

 

     (4) The department may conduct audits, or may direct audits by

 

designee of the department, for the current fiscal year and the

 

immediately preceding 3 fiscal years of all records related to a

 

program for which a district or intermediate district has received

 

funds under this article.

 

     (5) Expenditures made by the department under this article

 

that are caused by the write-off of prior year accruals may be

 

funded by revenue from the write-off of prior year accruals.

 

     (6) In addition to funds appropriated in section 11 for all

 

programs and services, there is appropriated for 2014-2015 and for

 

2015-2016 2016-2017 for obligations in excess of applicable


appropriations an amount equal to the collection of overpayments,

 

but not to exceed amounts available from overpayments.

 

     Sec. 18. (1) Except as provided in another section of this

 

article, each district or other entity shall apply the money

 

received by the district or entity under this article to salaries

 

and other compensation of teachers and other employees, tuition,

 

transportation, lighting, heating, ventilation, water service, the

 

purchase of textbooks, other supplies, and any other school

 

operating expenditures defined in section 7. However, not more than

 

20% of the total amount received by a district under sections 22a

 

and 22b or received by an intermediate district under section 81

 

may be transferred by the board to either the capital projects fund

 

or to the debt retirement fund for debt service. The money shall

 

not be applied or taken for a purpose other than as provided in

 

this section. The department shall determine the reasonableness of

 

expenditures and may withhold from a recipient of funds under this

 

article the apportionment otherwise due upon a violation by the

 

recipient.

 

     (2) A district or intermediate district shall adopt an annual

 

budget in a manner that complies with the uniform budgeting and

 

accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days

 

after a district board adopts its annual operating budget for the

 

following school fiscal year, or after a district board adopts a

 

subsequent revision to that budget, the district shall make all of

 

the following available through a link on its website homepage, or

 

may make the information available through a link on its

 

intermediate district's website homepage, in a form and manner


prescribed by the department:

 

     (a) The annual operating budget and subsequent budget

 

revisions.

 

     (b) Using data that have already been collected and submitted

 

to the department, a summary of district expenditures for the most

 

recent fiscal year for which they are available, expressed in the

 

following 2 pie charts:

 

     (i) A chart of personnel expenditures, broken into the

 

following subcategories:

 

     (A) Salaries and wages.

 

     (B) Employee benefit costs, including, but not limited to,

 

medical, dental, vision, life, disability, and long-term care

 

benefits.

 

     (C) Retirement benefit costs.

 

     (D) All other personnel costs.

 

     (ii) A chart of all district expenditures, broken into the

 

following subcategories:

 

     (A) Instruction.

 

     (B) Support services.

 

     (C) Business and administration.

 

     (D) Operations and maintenance.

 

     (c) Links to all of the following:

 

     (i) The current collective bargaining agreement for each

 

bargaining unit.

 

     (ii) Each health care benefits plan, including, but not

 

limited to, medical, dental, vision, disability, long-term care, or

 

any other type of benefits that would constitute health care


services, offered to any bargaining unit or employee in the

 

district.

 

     (iii) The audit report of the audit conducted under subsection

 

(4) for the most recent fiscal year for which it is available.

 

     (iv) The bids required under section 5 of the public employees

 

health benefits act, 2007 PA 106, MCL 124.75.

 

     (v) The district's written policy governing procurement of

 

supplies, materials, and equipment.

 

     (vi) The district's written policy establishing specific

 

categories of reimbursable expenses, as described in section

 

1254(2) of the revised school code, MCL 380.1254.

 

     (vii) Either the district's accounts payable check register

 

for the most recent school fiscal year or a statement of the total

 

amount of expenses incurred by board members or employees of the

 

district that were reimbursed by the district for the most recent

 

school fiscal year.

 

     (d) The total salary and a description and cost of each fringe

 

benefit included in the compensation package for the superintendent

 

of the district and for each employee of the district whose salary

 

exceeds $100,000.00.

 

     (e) The annual amount spent on dues paid to associations.

 

     (f) The annual amount spent on lobbying or lobbying services.

 

As used in this subdivision, "lobbying" means that term as defined

 

in section 5 of 1978 PA 472, MCL 4.415.

 

     (g) Any deficit elimination plan or enhanced deficit

 

elimination plan the district was required to submit under the

 

revised school code.


     (h) Identification of all credit cards maintained by the

 

district as district credit cards, the identity of all individuals

 

authorized to use each of those credit cards, the credit limit on

 

each credit card, and the dollar limit, if any, for each

 

individual's authorized use of the credit card.

 

     (i) Costs incurred for each instance of out-of-state travel by

 

the school administrator of the district that is fully or partially

 

paid for by the district and the details of each of those instances

 

of out-of-state travel, including at least identification of each

 

individual on the trip, destination, and purpose.

 

     (3) For the information required under subsection (2)(a),

 

(2)(b)(i), and (2)(c), an intermediate district shall provide the

 

same information in the same manner as required for a district

 

under subsection (2).

 

     (4) For the purposes of determining the reasonableness of

 

expenditures, whether a district or intermediate district has

 

received the proper amount of funds under this article, and whether

 

a violation of this article has occurred, all of the following

 

apply:

 

     (a) The department shall require that each district and

 

intermediate district have an audit of the district's or

 

intermediate district's financial and pupil accounting records

 

conducted at least annually, and at such other times as determined

 

by the department, at the expense of the district or intermediate

 

district, as applicable. The audits must be performed by a

 

certified public accountant or by the intermediate district

 

superintendent, as may be required by the department, or in the


case of a district of the first class by a certified public

 

accountant, the intermediate superintendent, or the auditor general

 

of the city. A district or intermediate district shall retain these

 

records for the current fiscal year and from at least the 3

 

immediately preceding fiscal years.

 

     (b) If a district operates in a single building with fewer

 

than 700 full-time equated pupils, if the district has stable

 

membership, and if the error rate of the immediately preceding 2

 

pupil accounting field audits of the district is less than 2%, the

 

district may have a pupil accounting field audit conducted

 

biennially but must continue to have desk audits for each pupil

 

count. The auditor must document compliance with the audit cycle in

 

the pupil auditing manual. As used in this subdivision, "stable

 

membership" means that the district's membership for the current

 

fiscal year varies from the district's membership for the

 

immediately preceding fiscal year by less than 5%.

 

     (c) A district's or intermediate district's annual financial

 

audit shall include an analysis of the financial and pupil

 

accounting data used as the basis for distribution of state school

 

aid.

 

     (d) The pupil and financial accounting records and reports,

 

audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 

published by the department.

 

     (e) All of the following shall be done not later than November

 

1 each year for reporting the prior fiscal year data:

 

     (i) A district shall file the annual financial audit reports


with the intermediate district and the department.

 

     (ii) The intermediate district shall file the annual financial

 

audit reports for the intermediate district with the department.

 

     (iii) The intermediate district shall enter the pupil

 

membership audit reports for its constituent districts and for the

 

intermediate district, for the pupil membership count day and

 

supplemental count day, in the Michigan student data system.

 

     (f) The annual financial audit reports and pupil accounting

 

procedures reports shall be available to the public in compliance

 

with the freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (g) Not later than January 31 of each year, the department

 

shall notify the state budget director and the legislative

 

appropriations subcommittees responsible for review of the school

 

aid budget of districts and intermediate districts that have not

 

filed an annual financial audit and pupil accounting procedures

 

report required under this section for the school year ending in

 

the immediately preceding fiscal year.

 

     (5) By November 1 each fiscal year, each district and

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

 

consistent with the district's or intermediate district's audited

 

financial statements and consistent with accounting manuals and

 

charts of accounts approved and published by the department. For an

 

intermediate district, the report shall also contain the website

 

address where the department can access the report required under

 

section 620 of the revised school code, MCL 380.620. The department


shall ensure that the prescribed Michigan public school accounting

 

manual chart of accounts includes standard conventions to

 

distinguish expenditures by allowable fund function and object. The

 

functions shall include at minimum categories for instruction,

 

pupil support, instructional staff support, general administration,

 

school administration, business administration, transportation,

 

facilities operation and maintenance, facilities acquisition, and

 

debt service; and shall include object classifications of salary,

 

benefits, including categories for active employee health

 

expenditures, purchased services, supplies, capital outlay, and

 

other. Districts shall report the required level of detail

 

consistent with the manual as part of the comprehensive annual

 

financial report.

 

     (6) By September 30 of each year, each district and

 

intermediate district shall file with the department the special

 

education actual cost report, known as "SE-4096", on a form and in

 

the manner prescribed by the department.

 

     (7) By October 7 of each year, each district and intermediate

 

district shall file with the center the transportation expenditure

 

report, known as "SE-4094", on a form and in the manner prescribed

 

by the center.

 

     (8) The department shall review its pupil accounting and pupil

 

auditing manuals at least annually and shall periodically update

 

those manuals to reflect changes in this article.

 

     (9) If a district that is a public school academy purchases

 

property using money received under this article, the public school

 

academy shall retain ownership of the property unless the public


school academy sells the property at fair market value.

 

     (10) If a district or intermediate district does not comply

 

with subsections (4), (5), (6), and (7), or if the department

 

determines that the financial data required under subsection (5)

 

are not consistent with audited financial statements, the

 

department shall withhold all state school aid due to the district

 

or intermediate district under this article, beginning with the

 

next payment due to the district or intermediate district, until

 

the district or intermediate district complies with subsections

 

(4), (5), (6), and (7). If the district or intermediate district

 

does not comply with subsections (4), (5), (6), and (7) by the end

 

of the fiscal year, the district or intermediate district forfeits

 

the amount withheld.

 

     (11) If a district or intermediate district does not comply

 

with subsection (2), the department may withhold up to 10% of the

 

total state school aid due to the district or intermediate district

 

under this article, beginning with the next payment due to the

 

district or intermediate district, until the district or

 

intermediate district complies with subsection (2). If the district

 

or intermediate district does not comply with subsection (2) by the

 

end of the fiscal year, the district or intermediate district

 

forfeits the amount withheld.

 

     (12) Not later than November 1, 2015, 2016, if a district or

 

intermediate district offers online virtual learning under section

 

21f, the district or intermediate district shall submit to the

 

department a report that details the per-pupil costs of operating

 

the online virtual learning by vendor type. The report shall


include at least all of the following information concerning the

 

operation of online virtual learning for the school fiscal year

 

ending June 30, 2015:2016:

 

     (a) The name of the district operating the online virtual

 

learning and of each district that enrolled students in the online

 

virtual learning.

 

     (b) The total number of students enrolled in the online

 

virtual learning and the total number of membership pupils enrolled

 

in the online virtual learning.

 

     (c) For each pupil who is enrolled in a district other than

 

the district offering online virtual learning, the name of that

 

district.

 

     (d) The district in which the pupil was enrolled before

 

enrolling in the district offering online virtual learning.

 

     (e) The number of participating students who had previously

 

dropped out of school.

 

     (f) The number of participating students who had previously

 

been expelled from school.

 

     (g) The total cost to enroll a student in the program. This

 

cost shall be reported on a per-pupil, per-course, per-semester or

 

trimester basis by vendor type. The total shall include costs

 

broken down by cost for content development, content licensing,

 

training, online virtual instruction and instructional support,

 

personnel, hardware and software, payment to each online virtual

 

learning provider, and other costs associated with operating online

 

virtual learning.

 

     (h) The name of each online virtual education provider


contracted by the district and the state in which each online

 

virtual education provider is headquartered.

 

     (13) Not later than March 31, 2016, 2017, the department shall

 

submit to the house and senate appropriations subcommittees on

 

state school aid, the state budget director, and the house and

 

senate fiscal agencies a report summarizing the per-pupil costs by

 

vendor type of online virtual courses available under section 21f.

 

     (14) As used in subsections (12) and (13), "vendor type" means

 

the following:

 

     (a) Online Virtual courses provided by the Michigan Virtual

 

University.

 

     (b) Online Virtual courses provided by a school of excellence

 

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

 

school code, MCL 380.551.

 

     (c) Online Virtual courses provided by third party vendors not

 

affiliated with a Michigan public school.

 

     (d) Online Virtual courses created and offered by a district

 

or intermediate district.

 

     (15) An allocation to a district or another entity under this

 

article is contingent upon the district's or entity's compliance

 

with this section.

 

     Sec. 19. (1) A district or intermediate district shall comply

 

with all applicable reporting requirements specified in state and

 

federal law. Data provided to the center, in a form and manner

 

prescribed by the center, shall be aggregated and disaggregated as

 

required by state and federal law. In addition, a district or

 

intermediate district shall cooperate with all measures taken by


the center to establish and maintain a statewide P-20 longitudinal

 

data system.

 

     (2) Each district shall furnish to the center not later than 5

 

weeks after the pupil membership count day and by June 30 of the

 

school fiscal year ending in the fiscal year, in a manner

 

prescribed by the center, the information necessary for the

 

preparation of the district and high school graduation report. This

 

information shall meet requirements established in the pupil

 

auditing manual approved and published by the department. The

 

center shall calculate an annual graduation and pupil dropout rate

 

for each high school, each district, and this state, in compliance

 

with nationally recognized standards for these calculations. The

 

center shall report all graduation and dropout rates to the senate

 

and house education committees and appropriations committees, the

 

state budget director, and the department not later than 30 days

 

after the publication of the list described in subsection (6).

 

     (3) By the first business day in December and by June 30 of

 

each year, a district shall furnish to the center, in a manner

 

prescribed by the center, information related to educational

 

personnel as necessary for reporting required by state and federal

 

law.

 

     (4) By June 30 of each year, a district shall furnish to the

 

center, in a manner prescribed by the center, information related

 

to safety practices and criminal incidents as necessary for

 

reporting required by state and federal law.

 

     (5) If a district or intermediate district fails to meet the

 

requirements of this section, the department shall withhold 5% of


the total funds for which the district or intermediate district

 

qualifies under this article until the district or intermediate

 

district complies with all of those subsections. If the district or

 

intermediate district does not comply with all of those subsections

 

by the end of the fiscal year, the department shall place the

 

amount withheld in an escrow account until the district or

 

intermediate district complies with all of those subsections.

 

     (6) Before publishing a list of school or district

 

accountability designations as required by the no child left behind

 

act of 2001, Public Law 107-110, or the every student succeeds act,

 

Public Law 114-95, the department shall allow a school or district

 

to appeal that determination. The department shall consider and act

 

upon the appeal within 30 days after it is submitted and shall not

 

publish the list until after all appeals have been considered and

 

decided.

 

     (7) It is the intent of the legislature to implement not later

 

than Beginning in 2016-2017, the department shall implement

 

statewide standard reporting requirements for education data

 

approved by the department in conjunction with the center. The

 

department shall work with the center, intermediate districts,

 

districts, and other interested stakeholders to develop

 

recommendations on the implementation of implement this policy

 

change. A district or intermediate district shall implement the

 

statewide standard reporting requirements not later than 2014-2015

 

2017-2018 or when a district or intermediate district updates its

 

education data reporting system, whichever is later.

 

     Sec. 20. (1) For 2015-2016, 2016-2017, both of the following


apply:

 

     (a) The basic foundation allowance is $8,169.00.$8,229.00.

 

     (b) The minimum foundation allowance is $7,391.00.$7,511.00.

 

     (2) The amount of each district's foundation allowance shall

 

be calculated as provided in this section, using a basic foundation

 

allowance in the amount specified in subsection (1).

 

     (3) Except as otherwise provided in this section, the amount

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

     (a) Except as otherwise provided in this subdivision, for a

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was at least equal to the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year, but less than the basic foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

a foundation allowance in an amount equal to the sum of the

 

district's foundation allowance for the immediately preceding state

 

fiscal year plus the difference between twice the dollar amount of

 

the adjustment from the immediately preceding state fiscal year to

 

the current state fiscal year made in the basic foundation

 

allowance and [(the difference between the basic foundation

 

allowance for the current state fiscal year and basic foundation

 

allowance for the immediately preceding state fiscal year minus

 

$23.00) $20.00) times (the difference between the district's

 

foundation allowance for the immediately preceding state fiscal

 

year and the minimum foundation allowance for the immediately


preceding state fiscal year) divided by the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year]. However, the foundation allowance for a

 

district that had less than the basic foundation allowance for the

 

immediately preceding state fiscal year shall not exceed the basic

 

foundation allowance for the current state fiscal year. For the

 

purposes of this subdivision, for 2015-2016, the minimum foundation

 

allowance for the immediately preceding state fiscal year shall be

 

considered to be $7,251.00.

 

     (b) Except as otherwise provided in this subsection, for a

 

district that in the immediately preceding state fiscal year had a

 

foundation allowance in an amount equal to the amount of the basic

 

foundation allowance for the immediately preceding state fiscal

 

year, the district shall receive a foundation allowance for 2015-

 

2016 2016-2017 in an amount equal to the basic foundation allowance

 

for 2015-2016.2016-2017.

 

     (c) For a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was greater than the

 

basic foundation allowance for the immediately preceding state

 

fiscal year, the district's foundation allowance is an amount equal

 

to the sum of the district's foundation allowance for the

 

immediately preceding state fiscal year plus the lesser of the

 

increase in the basic foundation allowance for the current state

 

fiscal year, as compared to the immediately preceding state fiscal

 

year, or the product of the district's foundation allowance for the

 

immediately preceding state fiscal year times the percentage


increase in the United States consumer price index in the calendar

 

year ending in the immediately preceding fiscal year as reported by

 

the May revenue estimating conference conducted under section 367b

 

of the management and budget act, 1984 PA 431, MCL 18.1367b.

 

     (d) For a district that has a foundation allowance that is not

 

a whole dollar amount, the district's foundation allowance shall be

 

rounded up to the nearest whole dollar.

 

     (e) For a district that received a payment under section 22c

 

as that section was in effect for 2014-2015, the district's 2014-

 

2015 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2014-2015

 

foundation allowance as otherwise calculated under this section

 

plus the per-pupil amount of the district's equity payment for

 

2014-2015 under section 22c as that section was in effect for 2014-

 

2015.

 

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

 

portion of a district's foundation allowance is an amount equal to

 

the district's foundation allowance or the basic foundation

 

allowance for the current state fiscal year, whichever is less,

 

minus the local portion of the district's foundation allowance

 

divided by the district's membership excluding special education

 

pupils. For a district described in subsection (3)(c), the state

 

portion of the district's foundation allowance is an amount equal

 

to $6,962.00 plus the difference between the district's foundation

 

allowance for the current state fiscal year and the district's

 

foundation allowance for 1998-99, minus the local portion of the

 

district's foundation allowance divided by the district's


membership excluding special education pupils. For a district that

 

has a millage reduction required under section 31 of article IX of

 

the state constitution of 1963, the state portion of the district's

 

foundation allowance shall be calculated as if that reduction did

 

not occur. For a receiving district, if school operating taxes

 

continue to be levied on behalf of a dissolved district that has

 

been attached in whole or in part to the receiving district to

 

satisfy debt obligations of the dissolved district under section 12

 

of the revised school code, MCL 380.12, the taxable value per

 

membership pupil of property in the receiving district used for the

 

purposes of this subsection does not include the taxable value of

 

property within the geographic area of the dissolved district. For

 

a community district, if school operating taxes continue to be

 

levied by a qualifying school district under section 12b of the

 

revised school code, MCL 380.12b, with the same geographic area as

 

the community district, the taxable value per membership pupil of

 

property in the community district to be used for the purposes of

 

this subsection does not include the taxable value of property

 

within the geographic area of the community district.

 

     (5) The allocation calculated under this section for a pupil

 

shall be based on the foundation allowance of the pupil's district

 

of residence. For a pupil enrolled pursuant to section 105 or 105c

 

in a district other than the pupil's district of residence, the

 

allocation calculated under this section shall be based on the

 

lesser of the foundation allowance of the pupil's district of

 

residence or the foundation allowance of the educating district.

 

For a pupil in membership in a K-5, K-6, or K-8 district who is


enrolled in another district in a grade not offered by the pupil's

 

district of residence, the allocation calculated under this section

 

shall be based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

greater than the foundation allowance of the pupil's district of

 

residence. The calculation under this subsection shall take into

 

account a district's per-pupil allocation under section 20m.

 

     (6) Except as otherwise provided in this subsection, for

 

pupils in membership, other than special education pupils, in a

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

whichever is less. For pupils in membership, other than special

 

education pupils, in a public school academy that is a cyber school

 

and is authorized by a school district, the allocation calculated

 

under this section is an amount per membership pupil other than

 

special education pupils in the public school academy equal to the

 

foundation allowance of the district that authorized the public

 

school academy or the state maximum public school academy

 

allocation, whichever is less. However, a public school academy

 

that had an allocation under this subsection before 2009-2010 that

 

was equal to the sum of the local school operating revenue per

 

membership pupil other than special education pupils for the

 

district in which the public school academy is located and the

 

state portion of that district's foundation allowance shall not


have that allocation reduced as a result of the 2010 amendment to

 

this subsection. Notwithstanding section 101, for a public school

 

academy that begins operations after the pupil membership count

 

day, the amount per membership pupil calculated under this

 

subsection shall be adjusted by multiplying that amount per

 

membership pupil by the number of hours of pupil instruction

 

provided by the public school academy after it begins operations,

 

as determined by the department, divided by the minimum number of

 

hours of pupil instruction required under section 101(3). The

 

result of this calculation shall not exceed the amount per

 

membership pupil otherwise calculated under this subsection.

 

     (7) Except as otherwise provided in this subsection, for

 

pupils attending an achievement school and in membership in the

 

education achievement system, other than special education pupils,

 

the allocation calculated under this section is an amount per

 

membership pupil other than special education pupils equal to the

 

foundation allowance of the district in which the achievement

 

school is located, not to exceed the basic foundation allowance.

 

Notwithstanding section 101, for an achievement school that begins

 

operation after the pupil membership count day, the amount per

 

membership pupil calculated under this subsection shall be adjusted

 

by multiplying that amount per membership pupil by the number of

 

hours of pupil instruction provided by the achievement school after

 

it begins operations, as determined by the department, divided by

 

the minimum number of hours of pupil instruction required under

 

section 101(3). The result of this calculation shall not exceed the

 

amount per membership pupil otherwise calculated under this


subsection. For the purposes of this subsection, if a public school

 

is transferred from a district to the state school reform/redesign

 

district or the achievement authority under section 1280c of the

 

revised school code, MCL 380.1280c, that public school is

 

considered to be an achievement school within the education

 

achievement system and not a school that is part of a district, and

 

a pupil attending that public school is considered to be in

 

membership in the education achievement system and not in

 

membership in the district that operated the school before the

 

transfer.

 

     (8) Except as otherwise provided in this subsection, for

 

pupils in membership, other than special education pupils, in a

 

community district, the allocation calculated under this section is

 

an amount per membership pupil other than special education pupils

 

in the community district equal to the foundation allowance of the

 

qualifying school district, as described in section 12b of the

 

revised school code, MCL 380.12b, that is located within the same

 

geographic area as the community district.

 

     (9) (8) Subject to subsection (4), for a district that is

 

formed or reconfigured after June 1, 2002 by consolidation of 2 or

 

more districts or by annexation, the resulting district's

 

foundation allowance under this section beginning after the

 

effective date of the consolidation or annexation shall be the

 

lesser of the sum of the average of the foundation allowances of

 

each of the original or affected districts, calculated as provided

 

in this section, weighted as to the percentage of pupils in total

 

membership in the resulting district who reside in the geographic


area of each of the original or affected districts plus $100.00 or

 

the highest foundation allowance among the original or affected

 

districts. This subsection does not apply to a receiving district

 

unless there is a subsequent consolidation or annexation that

 

affects the district. The calculation under this subsection shall

 

take into account a district's per-pupil allocation under section

 

20m.

 

     (10) (9) Each fraction used in making calculations under this

 

section shall be rounded to the fourth decimal place and the dollar

 

amount of an increase in the basic foundation allowance shall be

 

rounded to the nearest whole dollar.

 

     (11) (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

     (12) (11) To assist the legislature in determining the basic

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

management and budget act, 1984 PA 431, MCL 18.1367b, shall

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

     (a) The pupil membership factor shall be computed by dividing

 

the estimated membership in the school year ending in the current

 

state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district

 

membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue


estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

later than 7 days after the conclusion of the revenue conference.

 

     (b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

year, adjusted for any change in the rate or base of a tax the

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

the rate or base of a tax the proceeds of which are deposited in

 

that fund. If a consensus revenue factor is not determined at the

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

later than 7 days after the conclusion of the revenue conference.

 

     (c) The index shall be calculated by multiplying the pupil

 

membership factor by the revenue adjustment factor. If a consensus

 

index is not determined at the revenue estimating conference, the

 

principals of the revenue estimating conference shall report their

 

estimates to the house and senate subcommittees responsible for

 

school aid appropriations not later than 7 days after the


conclusion of the revenue conference.

 

     (13) (12) Payments to districts, public school academies, or

 

the education achievement system shall not be made under this

 

section. Rather, the calculations under this section shall be used

 

to determine the amount of state payments under section 22b.

 

     (14) (13) If an amendment to section 2 of article VIII of the

 

state constitution of 1963 allowing state aid to some or all

 

nonpublic schools is approved by the voters of this state, each

 

foundation allowance or per-pupil payment calculation under this

 

section may be reduced.

 

     (15) (14) As used in this section:

 

     (a) "Certified mills" means the lesser of 18 mills or the

 

number of mills of school operating taxes levied by the district in

 

1993-94.

 

     (b) "Combined state and local revenue" means the aggregate of

 

the district's state school aid received by or paid on behalf of

 

the district under this section and the district's local school

 

operating revenue.

 

     (c) "Combined state and local revenue per membership pupil"

 

means the district's combined state and local revenue divided by

 

the district's membership excluding special education pupils.

 

     (d) "Current state fiscal year" means the state fiscal year

 

for which a particular calculation is made.

 

     (e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.


     (f) "Immediately preceding state fiscal year" means the state

 

fiscal year immediately preceding the current state fiscal year.

 

     (g) "Local portion of the district's foundation allowance"

 

means an amount that is equal to the difference between (the sum of

 

the product of the taxable value per membership pupil of all

 

property in the district that is nonexempt property times the

 

district's certified mills and, for a district with certified mills

 

exceeding 12, the product of the taxable value per membership pupil

 

of property in the district that is commercial personal property

 

times the certified mills minus 12 mills) and (the quotient of the

 

product of the captured assessed valuation under tax increment

 

financing acts times the district's certified mills divided by the

 

district's membership excluding special education pupils).

 

     (h) "Local school operating revenue" means school operating

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211. For a receiving district, if school operating taxes are

 

to be levied on behalf of a dissolved district that has been

 

attached in whole or in part to the receiving district to satisfy

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, local school operating revenue

 

does not include school operating taxes levied within the

 

geographic area of the dissolved district.

 

     (i) "Local school operating revenue per membership pupil"

 

means a district's local school operating revenue divided by the

 

district's membership excluding special education pupils.

 

     (j) "Maximum public school academy allocation", except as

 

otherwise provided in this subdivision, means the maximum per-pupil


allocation as calculated by adding the highest per-pupil allocation

 

among all public school academies for the immediately preceding

 

state fiscal year plus the difference between twice the amount of

 

the difference between the basic foundation allowance for the

 

current state fiscal year and the basic foundation allowance for

 

the immediately preceding state fiscal year and [(the amount of the

 

difference between the basic foundation allowance for the current

 

state fiscal year and the basic foundation allowance for the

 

immediately preceding state fiscal year minus $23.00) $20.00) times

 

(the difference between the highest per-pupil allocation among all

 

public school academies for the immediately preceding state fiscal

 

year and the minimum foundation allowance for the immediately

 

preceding state fiscal year) divided by the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year]. For the purposes of this subdivision, for 2015-

 

2016, 2016-2017, the maximum public school academy allocation is

 

$7,391.00.$7,511.00.

 

     (k) "Membership" means the definition of that term under

 

section 6 as in effect for the particular fiscal year for which a

 

particular calculation is made.

 

     (l) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a

 

public school academy.

 

     (m) "Principal residence", "qualified agricultural property",


"qualified forest property", "supportive housing property",

 

"industrial personal property", and "commercial personal property"

 

mean those terms as defined in section 1211 of the revised school

 

code, MCL 380.1211.

 

     (n) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

     (o) "School operating purposes" means the purposes included in

 

the operation costs of the district as prescribed in sections 7 and

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

 

     (p) "School operating taxes" means local ad valorem property

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211, and retained for school operating purposes.

 

     (q) "Tax increment financing acts" means 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, the local development financing

 

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

     (r) "Taxable value per membership pupil" means taxable value,

 

as certified by the county treasurer and reported to the

 

department, for the calendar year ending in the current state

 

fiscal year divided by the district's membership excluding special

 

education pupils for the school year ending in the current state

 

fiscal year.


     Sec. 20d. In making the final determination required under

 

former section 20a of a district's combined state and local revenue

 

per membership pupil in 1993-94 and in making calculations under

 

section 20 for 2015-2016, 2016-2017, the department and the

 

department of treasury shall comply with all of the following:

 

     (a) For a district that had combined state and local revenue

 

per membership pupil in the 1994-95 state fiscal year of $6,500.00

 

or more and served as a fiscal agent for a state board designated

 

area vocational education center in the 1993-94 school year, total

 

state school aid received by or paid on behalf of the district

 

pursuant to this act in 1993-94 shall exclude payments made under

 

former section 146 and under section 147 on behalf of the

 

district's employees who provided direct services to the area

 

vocational education center. Not later than June 30, 1996, the

 

department shall make an adjustment under this subdivision to the

 

district's combined state and local revenue per membership pupil in

 

the 1994-95 state fiscal year and the department of treasury shall

 

make a final certification of the number of mills that may be

 

levied by the district under section 1211 of the revised school

 

code, MCL 380.1211, as a result of the adjustment under this

 

subdivision.

 

     (b) If a district had an adjustment made to its 1993-94 total

 

state school aid that excluded payments made under former section

 

146 and under section 147 on behalf of the district's employees who

 

provided direct services for intermediate district center programs

 

operated by the district under article 5, if nonresident pupils

 

attending the center programs were included in the district's


membership for purposes of calculating the combined state and local

 

revenue per membership pupil for 1993-94, and if there is a signed

 

agreement by all constituent districts of the intermediate district

 

that an adjustment under this subdivision shall be made, the

 

foundation allowances for 1995-96 and 1996-97 of all districts that

 

had pupils attending the intermediate district center program

 

operated by the district that had the adjustment shall be

 

calculated as if their combined state and local revenue per

 

membership pupil for 1993-94 included resident pupils attending the

 

center program and excluded nonresident pupils attending the center

 

program.

 

     Sec. 20f. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $18,000,000.00 for 2015-2016

 

2016-2017 for payments to eligible districts under this section.

 

     (2) The funding under this subsection is from the allocation

 

under subsection (1). A district is eligible for funding under this

 

subsection if the district received a payment under this section as

 

it was in effect for 2013-2014. A district was eligible for funding

 

in 2013-2014 if the sum of the following was less than $5.00:

 

     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2012-2013 to

 

2013-2014.

 

     (b) The district's equity payment per membership pupil under

 

section 22c for 2013-2014.

 

     (c) The quotient of the district's allocation under section

 

147a for 2012-2013 divided by the district's membership pupils for

 

2012-2013 minus the quotient of the district's allocation under


section 147a for 2013-2014 divided by the district's membership

 

pupils for 2013-2014.

 

     (3) The amount allocated to each eligible district under

 

subsection (2) is an amount per membership pupil equal to the

 

amount per membership pupil the district received under this

 

section in 2013-2014.

 

     (4) The funding under this subsection is from the allocation

 

under subsection (1). A district is eligible for funding under this

 

subsection for 2015-2016 2016-2017 if the sum of the following is

 

less than $25.00:

 

     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under section 22j from 2014-2015 to 2015-2016.

 

     (d) The quotient of the district's allocation under section

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (5) The amount allocated to each eligible district under

 

subsection (4) is an amount per membership pupil equal to $25.00

 

minus the sum of the following:

 

     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2014-2015 to


2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under section 22j from 2014-2015 to 2015-2016.

 

     (d) The quotient of the district's allocation under section

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (6) If the allocation under subsection (1) is insufficient to

 

fully fund payments under subsections (3) and (5) as otherwise

 

calculated under this section, the department shall prorate

 

payments under this section on an equal per-pupil basis.

 

     Sec. 20g. (1) From the money appropriated under section 11,

 

there is allocated an amount not to exceed $2,200,000.00 for 2015-

 

2016 $1,200,000.00 each fiscal year for 2015-2016 and for 2016-2017

 

for grants to eligible districts that first received payments under

 

this section in 2013-2014 for transition costs related to the

 

enrollment of pupils who were previously enrolled in a district

 

that was dissolved under section 12 of the revised school code, MCL

 

380.12, allocated as provided under subsection (3). Payments under

 

this section shall continue for a total of 4 fiscal years following

 

the dissolution of a district, after which the payments shall

 

cease.

 

     (2) A receiving school district, as that term is defined in

 

section 12 of the revised school code, MCL 380.12, is an eligible


district under this section.

 

     (3) The amount allocated to each eligible district under this

 

section is an amount equal to the product of the number of

 

membership pupils enrolled in the eligible district who were

 

previously enrolled in the dissolved school district in the school

 

year immediately preceding the dissolution, or who reside in the

 

geographic area of the dissolved school district and are entering

 

kindergarten, times 10.0% of the lesser of the foundation allowance

 

of the eligible district as calculated under section 20 or the

 

basic foundation allowance under section 20(1).

 

     (4) It is the intent of the legislature that an amount not to

 

exceed $660,000.00 be lapsed from the $2,500,000.00 that was

 

available for a qualifying intermediate district under this section

 

as it was in effect for the 2013-2014 fiscal year. In addition to

 

the money allocated under subsection (1), from the funds

 

appropriated in section 11, there is allocated for 2016-2017 an

 

amount not to exceed $660,000.00 to a qualifying intermediate

 

district for paying outstanding debt of a dissolved school

 

district. For purposes of this subsection, an intermediate district

 

is a qualifying intermediate district if it is required to perform

 

the functions and satisfy the responsibilities of a dissolved

 

school district under section 12(3) of the revised school code, MCL

 

380.12, if the authorization for that dissolved school district to

 

levy mills for school operating purposes under section 1211 of the

 

revised school code, MCL 380.1211, was not renewed after the school

 

district was dissolved, and if the intermediate district is located

 

in a county with a population of less than 250,000.


     (5) (4) As used in this section, "dissolved school district"

 

means a school district that has been declared dissolved under

 

section 12 of the revised school code, 1976 PA 451, MCL 380.12.

 

     Sec. 20m. (1) Foundation allowance supplemental payments for

 

2016-2017 to districts that in the 2015-2016 fiscal year had a

 

foundation allowance greater than $8,169.00 shall be calculated

 

under this section.

 

     (2) The per-pupil allocation to each district under this

 

section shall be the difference between the dollar amount of the

 

adjustment from the immediately preceding state fiscal year to the

 

current state fiscal year in the basic foundation allowance minus

 

the dollar amount of the adjustment from the immediately preceding

 

fiscal year to the current state fiscal year in a qualifying

 

district's foundation allowance.

 

     (3) If a district's local revenue per pupil does not exceed

 

the sum of its foundation allowance under section 20 plus the per-

 

pupil allocation under subsection (2), the total payment to the

 

district calculated under this section shall be the product of the

 

per-pupil allocation under subsection (2) multiplied by the

 

district's membership excluding special education pupils. If a

 

district's local revenue per pupil exceeds the foundation allowance

 

under section 20 but does not exceed the sum of the foundation

 

allowance under section 20 plus the per-pupil allocation under

 

subsection (2), the total payment to the district calculated under

 

this section shall be the product of the difference between the sum

 

of the foundation allowance under section 20 plus the per-pupil

 

allocation under subsection (2) minus the local revenue per pupil


multiplied by the district's membership excluding special education

 

pupils. If a district's local revenue per pupil exceeds the sum of

 

the foundation allowance under section 20 plus the per-pupil

 

allocation under subsection (2), there is no payment calculated

 

under this section for the district.

 

     (4) Payments to districts shall not be made under this

 

section. Rather, the calculations under this section shall be made

 

and used to determine the amount of state payments under section

 

22b.

 

     Sec. 21. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $5,000,000.00 for 2016-2017 to

 

make supplemental payments to eligible districts that are

 

identified under section 1280c of the revised school code, MCL

 

380.1280c, as being among the lowest achieving 5% of all public

 

schools in this state.

 

     (2) A district is eligible to receive the supplemental

 

payments calculated under this section for 3 consecutive fiscal

 

years if all of the following conditions are met:

 

     (a) The state school reform/redesign officer has appointed a

 

chief executive officer to take control of 1 or more public schools

 

in the district, as provided for in section 1280c(7) of the revised

 

school code, MCL 380.1280c, and there is at least 1 high school

 

operated by the district.

 

     (b) As determined by the school reform office, an intervention

 

agreement meeting at least the following criteria has been executed

 

by the state school reform/redesign officer and the district. The

 

intervention agreement shall include, but is not limited to:


     (i) The rights and responsibilities of the chief executive

 

officer. However, the intervention agreement shall not mitigate the

 

authority of the chief executive officer prescribed in applicable

 

statute including financial and employment authority.

 

     (ii) The allocation of supplemental payments under this

 

section.

 

     (iii) The compensation for the chief executive officer.

 

     (iv) The role of the district's board and officers during the

 

intervention term.

 

     (v) Termination and renewal rights of the school reform

 

office.

 

     (vi) Liability provisions for the chief executive officer.

 

     (vii) A dispute resolution process.

 

     (viii) The length of the term of the agreement.

 

     (ix) Other provisions as determined by the school reform

 

office for successful implementation of the chief executive officer

 

intervention.

 

     (c) The district has not entered into and is not currently

 

operating under a local government option under the local financial

 

stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575, or

 

a successor act.

 

     (3) The state school reform/redesign officer, at least

 

annually, shall appear in person before the house and senate

 

appropriations subcommittees responsible for school aid to provide

 

an update on the yearly progress of schools under the control of a

 

chief executive officer. In addition, the state school

 

reform/redesign officer shall provide a quarterly report concerning


the chief executive officer's use of funds to increase pupil

 

achievement.

 

     (4) The supplemental payment provided to a district under this

 

section shall be calculated by multiplying the district's

 

foundation allowance by 20% of the high school's membership for the

 

prior fiscal year. The same dollar amount shall continue to be

 

available to the district for a maximum of 3 years, subject to the

 

conditions specified in subsection (2).

 

     (5) From the allocation in subsection (1), in addition to the

 

supplemental payments calculated under subsection (4), there is

 

allocated an amount sufficient to pay for the appointment of chief

 

executive officers by the state school reform/redesign officer, as

 

provided for in section 1280c(7) of the revised school code, MCL

 

380.1280c.

 

     (6) For the purposes of this section, a high school is a

 

school that operates exclusively all of grades 9 to 12.

 

     Sec. 21f. (1) A pupil enrolled in a district in any of grades

 

6 to 12 is eligible to enroll in an online course as provided for

 

in this section. A primary district shall enroll an eligible pupil

 

in virtual courses in accordance with the provisions of this

 

section. A primary district shall not offer a virtual course to an

 

eligible pupil unless the virtual course is published in the

 

primary district's catalog of board-approved courses or in the

 

statewide catalog of virtual courses maintained by the Michigan

 

Virtual University pursuant to section 98. The primary district

 

shall also provide on its publicly accessible website a link to the

 

statewide catalog of virtual courses maintained by the Michigan


Virtual University. Unless the pupil is at least age 18 or is an

 

emancipated minor, a pupil shall not be enrolled in a virtual

 

course without the consent of the pupil's parent or legal guardian.

 

     (2) With the consent of the pupil's parent or legal guardian,

 

a Subject to subsection (3), a primary district shall enroll an

 

eligible pupil in up to 2 online virtual courses as requested by

 

the pupil during an academic term, semester, or trimester. Unless

 

the pupil is newly enrolled in the pupil's primary district, the

 

request for online course enrollment must be made in the academic

 

term, semester, trimester, or summer preceding the enrollment. A

 

district may not establish additional requirements that would

 

prohibit a pupil from taking an online course. If a pupil has

 

demonstrated previous success with online courses and the school

 

leadership and the pupil's parent or legal guardian determine that

 

it is in the best interest of the pupil, a pupil may be enrolled in

 

more than 2 online courses in a specific academic term, semester,

 

or trimester. Consent of the pupil's parent or legal guardian is

 

not required if the pupil is at least age 18 or is an emancipated

 

minor.

 

     (3) An eligible pupil may enroll in an online course published

 

in the pupil's primary district's catalog of online courses

 

described in subsection (7)(a) or the statewide catalog of online

 

courses maintained by the Michigan Virtual University pursuant to

 

section 98.

 

     (3) A pupil may be enrolled in more than 2 virtual courses in

 

a specific academic term, semester, or trimester if all of the

 

following conditions are met:


     (a) The primary district has determined that it is in the best

 

interest of the pupil.

 

     (b) The pupil agrees with the recommendation of the primary

 

district.

 

     (c) The primary district, in collaboration with the pupil, has

 

developed an education development plan, in a form and manner

 

specified by the department, that is kept on file by the district.

 

     (4) A providing district or community college shall determine

 

whether or not it has capacity to accept applications for

 

enrollment from nonresident applicants in online courses and may

 

use that limit as the reason for refusal to enroll an applicant. If

 

the number of nonresident applicants eligible for acceptance in an

 

online a virtual course does not exceed the capacity of the

 

providing district or community college provider to provide the

 

online virtual course, the providing district or community college

 

provider shall accept for enrollment all of the nonresident

 

applicants eligible for acceptance. If the number of nonresident

 

applicants exceeds the providing district's or community college's

 

provider's capacity to provide the online virtual course, the

 

providing district or community college provider shall use a random

 

draw system, subject to the need to abide by state and federal

 

antidiscrimination laws and court orders. A primary district that

 

is also a provider shall determine whether or not it has the

 

capacity to accept applications for enrollment from nonresident

 

applicants in virtual courses and may use that limit as the reason

 

for refusal to enroll a nonresident applicant.

 

     (5) A primary district may not establish additional


requirements beyond those specified in this subsection that would

 

prohibit a pupil from taking a virtual course. A pupil's primary

 

district may deny the pupil enrollment in an online course if any

 

of the following apply, as determined by the district:

 

     (a) The pupil is enrolled in any of grades K to 5.

 

     (b) (a) The pupil has previously gained the credits that would

 

be provided from the completion of the online virtual course.

 

     (c) (b) The online virtual course is not capable of generating

 

academic credit.

 

     (d) (c) The online virtual course is inconsistent with the

 

remaining graduation requirements or career interests of the pupil.

 

     (d) The pupil does not possess the prerequisite knowledge and

 

skills to be successful in the online course or has demonstrated

 

failure in previous online coursework in the same subject.

 

     (e) The pupil has not completed the prerequisite coursework

 

for the requested virtual course or has not demonstrated

 

proficiency in the prerequisite course content.

 

     (f) The pupil has failed a previous virtual course in the same

 

subject during the 2 most recent academic years.

 

     (g) (e) The online virtual course is of insufficient quality

 

or rigor. A primary district that denies a pupil enrollment request

 

for this reason shall make a reasonable effort to assist the pupil

 

to find an alternative course enroll the pupil in a virtual course

 

in the same or a similar subject that the primary district

 

determines is of acceptable rigor and quality.

 

     (h) (f) The cost of the online virtual course exceeds the

 

amount identified in subsection (10), (9), unless the pupil or the


pupil's parent or legal guardian agrees to pay the cost that

 

exceeds this amount.

 

     (i) (g) The online course enrollment request does for a

 

virtual course enrollment did not occur within the same timelines

 

established by the primary district for enrollment and schedule

 

changes for regular courses.

 

     (j) The request for a virtual course enrollment was not made

 

in the academic term, semester, trimester, or summer preceding the

 

enrollment. This subdivision does not apply to a request made by a

 

pupil who is newly enrolled in the primary district.

 

     (6) If a pupil is denied enrollment in an online a virtual

 

course by the pupil's primary district, the primary district shall

 

provide written notification to the pupil of the denial, the reason

 

or reasons for the denial pursuant to subsection (5), and a

 

description of the appeal process. The pupil may appeal the denial

 

by submitting a letter to the superintendent of the intermediate

 

district in which the pupil's primary district is located. The

 

letter of appeal shall include the reason provided by the primary

 

district for not enrolling the pupil and the reason why the pupil

 

is claiming that the enrollment should be approved. The

 

intermediate district superintendent or designee shall respond to

 

the appeal within 5 days after it is received. If the intermediate

 

district superintendent or designee determines that the denial of

 

enrollment does not meet 1 or more of the reasons specified in

 

subsection (5), the primary district shall allow enroll the pupil

 

to enroll in the online virtual course.

 

     (7) To provide an online a virtual course to an eligible pupil


under this section, the providing district or intermediate district

 

a provider shall do all of the following:

 

     (a) Provide the Michigan Virtual University with the course

 

syllabus in a form and method prescribed by the Michigan Virtual

 

University for inclusion in a statewide online course catalog. The

 

district or intermediate district shall also provide on its

 

publicly accessible website a link to the course syllabi for all of

 

the online courses offered by the district or intermediate district

 

and a link to the statewide catalog of online courses maintained by

 

the Michigan Virtual University. Ensure that the virtual course has

 

been published in the pupil's primary district's catalog of board-

 

approved courses or published in the statewide catalog of virtual

 

courses maintained by the Michigan Virtual University.

 

     (b) Assign to each pupil a teacher of record and provide the

 

primary district with the personal personnel identification code

 

assigned by the center for the teacher of record. If the provider

 

is a community college, the virtual course must be taught by an

 

instructor employed by or contracted through the providing

 

community college.

 

     (c) Offer the online virtual course on an open entry and exit

 

method, or aligned to a semester, trimester, or accelerated

 

academic term format.

 

     (d) If the virtual course is offered to eligible pupils in

 

more than 1 district, the following additional requirements must

 

also be met:

 

     (i) Provide the Michigan Virtual University with a course

 

syllabus that meets the definition under subsection (14)(g) in a


form and manner prescribed by the Michigan Virtual University for

 

inclusion in a statewide catalog of virtual courses.

 

     (ii) (d) Not later than October 1 , 2015, of each fiscal year,

 

provide the Michigan Virtual University with the number of

 

enrollments in each online an aggregated count of enrollments for

 

each virtual course the district or intermediate district provided

 

provider delivered to pupils pursuant to this section in during the

 

immediately preceding school year, and the number of enrollments in

 

which the pupil earned 60% or more of the total course points for

 

each online virtual course.

 

     (8) To provide an online course under this section, a

 

community college shall do all of the following:

 

     (a) Provide the Michigan Virtual University with the course

 

syllabus in a form and method prescribed by the Michigan Virtual

 

University for inclusion in a statewide online course catalog.

 

     (b) Offer the online course on an open entry and exit method,

 

or aligned to a semester, trimester, or accelerated academic term

 

format.

 

     (c) Ensure ensure that each online course it provides under

 

this section generates postsecondary credit.

 

     (d) Beginning with October 1, 2016, and by October 1 of each

 

year thereafter, provide the Michigan Virtual University with the

 

number of enrollments in each online course the community college

 

provided to pupils pursuant to this section in the immediately

 

preceding school year, and the number of enrollments in which the

 

pupil earned 60% or more of the total course points for each online

 

course.


     (e) Be taught by an instructor employed by or contracted

 

through the community college.

 

     (9) For any online virtual course a pupil enrolls in under

 

this section, the pupil's primary district must assign to the pupil

 

a mentor to monitor the pupil's progress during the online course

 

and shall supply the providing district provider with the mentor's

 

contact information.

 

     (10) For a pupil enrolled in 1 or more online virtual courses,

 

published in the pupil's primary district's catalog of online

 

courses under subsection (7) or in the statewide catalog of online

 

courses maintained by the Michigan Virtual University, the primary

 

district shall use foundation allowance or per-pupil funds

 

calculated under section 20 to pay for the expenses associated with

 

the online virtual course or courses. A primary district is not

 

required to pay toward the cost of an online a virtual course an

 

amount that exceeds 6.67% of the minimum foundation allowance for

 

the current fiscal year as calculated under section 20.

 

     (11) An online A virtual learning pupil shall have the same

 

rights and access to technology in his or her primary district's

 

school facilities as all other pupils enrolled in the pupil's

 

primary district. The department shall establish standards for

 

hardware, software, and internet access for pupils who are enrolled

 

in more than 2 virtual courses in an academic term, semester, or

 

trimester taken at a location other than a school facility.

 

     (12) If a pupil successfully completes an online a virtual

 

course, as determined by the pupil's primary district, the pupil's

 

primary district shall grant appropriate academic credit for


completion of the course and shall count that credit toward

 

completion of graduation and subject area requirements. A pupil's

 

school record and transcript shall identify the online virtual

 

course title as it appears in the online virtual course syllabus.

 

     (13) The enrollment of a pupil in 1 or more online virtual

 

courses shall not result in a pupil being counted as more than 1.0

 

full-time equivalent pupils under this article. The minimum

 

requirements to count the pupil in membership are those established

 

by the pupil accounting manual as it was in effect for the 2015-

 

2016 school year or as subsequently amended by the department if

 

the department notifies the legislature about the proposed

 

amendment at least 60 days before the amendment becomes effective.

 

     (14) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under this

 

section shall not be transferred under the pupil transfer process

 

under section 25e.

 

     (14) (15) As used in this section:

 

     (a) "Instructor" means an individual who is employed by or

 

contracted through a community college.

 

     (b) (a) "Mentor" means a professional employee of the primary

 

district who monitors the pupil's progress, ensures the pupil has

 

access to needed technology, is available for assistance, and

 

ensures access to the teacher of record. A mentor may also serve as

 

the teacher of record if the primary district is the provider for

 

the virtual course and the mentor meets the requirements under

 

subdivision (g).(e).

 

     (b) "Online course" means a course of study that is capable of


generating a credit or a grade, that is provided in an interactive

 

Internet-connected learning environment, in which pupils are

 

separated from their teachers by time or location, or both, and, if

 

the course is provided by a district or intermediate district, in

 

which a teacher who holds a valid Michigan teaching certificate

 

that qualifies the teacher to teach the course is responsible for

 

providing instruction, determining appropriate instructional

 

methods for each pupil, diagnosing learning needs, assessing pupil

 

learning, prescribing intervention strategies, reporting outcomes,

 

and evaluating the effects of instruction and support strategies.

 

     (c) "Online course syllabus" means a document that includes

 

all of the following:

 

     (i) The state academic standards addressed in an online

 

course.

 

     (ii) The online course content outline.

 

     (iii) The online course required assessments.

 

     (iv) The online course prerequisites.

 

     (v) Expectations for actual instructor contact time with the

 

online learning pupil and other pupil-to-instructor communications.

 

     (vi) Academic support available to the online learning pupil.

 

     (vii) The online course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing

 

the online content.

 

     (ix) The name of the institution or organization providing the

 

online instructor.

 

     (x) The course titles assigned by the district or intermediate

 

district and the course titles and course codes from the National


Center for Education Statistics (NCES) school codes for the

 

exchange of data (SCED).

 

     (xi) The number of eligible nonresident pupils that will be

 

accepted by the district or intermediate district in the online

 

course.

 

     (xii) The results of the online course quality review using

 

the guidelines and model review process published by the Michigan

 

Virtual University.

 

     (d) "Online learning pupil" means a pupil enrolled in 1 or

 

more online courses.

 

     (c) (e) "Primary district" means the district that enrolls the

 

pupil and reports the pupil as a full-time equated pupil for pupil

 

membership purposes.

 

     (d) (f) "Providing district" "Provider" means the district,

 

intermediate district, or community college that the primary

 

district pays to provide the online virtual course or the Michigan

 

Virtual University if it is providing the virtual course.

 

     (e) (g) "Teacher of record" means a teacher who holds a valid

 

Michigan teaching certificate; who, if applicable, is endorsed in

 

the subject area and grade of the online course; and is responsible

 

for providing instruction, determining instructional methods for

 

each pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 

evaluating the effects of instruction and support strategies. meets

 

all of the following:

 

     (i) Holds a valid Michigan teaching certificate or a teaching

 

permit recognized by the department.


     (ii) If applicable, is endorsed in the subject area and grade

 

of the virtual course.

 

     (iii) Is responsible for providing instruction, determining

 

instructional methods for each pupil, diagnosing learning needs,

 

assessing pupil learning, prescribing intervention strategies and

 

modifying lessons, reporting outcomes, and evaluating the effects

 

of instruction and support strategies.

 

     (iv) Has a personnel identification code provided by the

 

center.

 

     (v) If the provider is a community college, is an instructor

 

employed by or contracted through the providing community college.

 

     (f) "Virtual course" means a course of study that is capable

 

of generating a credit or a grade and that is provided in an

 

interactive learning environment where the majority of the

 

curriculum is delivered using the Internet and in which pupils may

 

be separated from their instructor or teacher of record by time or

 

location, or both.

 

     (g) "Virtual course syllabus" means a document that includes

 

all of the following:

 

     (i) An alignment document detailing how the course meets

 

applicable state standards or, if the state does not have state

 

standards, nationally recognized standards.

 

     (ii) The virtual course content outline.

 

     (iii) The virtual course required assessments.

 

     (iv) The virtual course prerequisites.

 

     (v) Expectations for actual instructor or teacher of record

 

contact time with the virtual learning pupil and other


communications between a pupil and the instructor or teacher of

 

record.

 

     (vi) Academic support available to the virtual learning pupil.

 

     (vii) The virtual course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing

 

the virtual content.

 

     (ix) The name of the institution or organization providing the

 

instructor or teacher of record.

 

     (x) The course titles assigned by the provider and the course

 

titles and course codes from the National Center for Education

 

Statistics (NCES) school codes for the exchange of data (SCED).

 

     (xi) The number of eligible pupils that will be accepted by

 

the provider in the virtual course. A primary district that is also

 

the provider may limit the enrollment to those pupils enrolled in

 

the primary district.

 

     (xii) The results of the virtual course quality review using

 

the guidelines and model review process published by the Michigan

 

Virtual University.

 

     (h) "Virtual learning pupil" means a pupil enrolled in 1 or

 

more virtual courses.

 

     Sec. 21g. (1) From the general fund appropriation in section

 

11, there is allocated an amount not to exceed $500,000.00 for

 

2016-2017 for a grant to a public-private partnership, led by the

 

Michigan Center of Innovation in Education, a Michigan-based

 

nonprofit organization that is exempt from federal taxes under

 

section 501(c)(3) of the internal revenue code, 26 USC 501(c)(3),

 

in partnership with the Michigan Association of Intermediate School


Administrators, and in coordination with the department and the

 

center, to develop and pilot a competency-based transcript and

 

marketplace to provide enhanced choice to pupils and parents for

 

the completion of the requirements for a high school diploma under

 

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

 

revised school code, MCL 380.1278a and 380.1278b.

 

     (2) The partnership under subsection (1) shall do all of the

 

following:

 

     (a) Establish an articulation framework for Michigan academic,

 

technical, and global competencies of prekindergarten through high

 

school diploma requirements, including providing for career and

 

technical and dual enrollment opportunities.

 

     (b) Establish assessment criteria for measuring these

 

competencies and awarding universally recognized credentials,

 

micro-credentials, credits, and micro-credits for demonstrated

 

competencies independent of state-administered assessments.

 

     (c) Identify a means of accrediting education service

 

providers as competency-based credentialing organizations to

 

facilitate any-time, any-pace, any-way, any-place learning such

 

that credentials, micro-credentials, credits, and micro-credits can

 

be earned inside and outside traditional classroom settings.

 

     (d) Develop and pilot a pupil-owned transcript that satisfies

 

postsecondary institution requirements for admission and allows

 

pupils to accumulate credentials, micro-credentials, credits, and

 

micro-credits required for high school graduation, postsecondary

 

matriculation, and early career success.

 

     (e) Establish and pilot a marketplace of accredited education


service providers to provide enhanced choice for pupils and parents

 

when selecting credentials, micro-credentials, credits, and micro-

 

credits needed to satisfy Michigan high school diploma

 

requirements, including career and technical and dual enrollment

 

opportunities.

 

     (3) Accredited education service providers shall include, but

 

are not limited to, the following:

 

     (a) Districts and public career and technical programs.

 

     (b) Preschool, after-school, and other qualifying programs.

 

     (c) Museums, historical societies, science centers, and other

 

community education organizations.

 

     (d) Business and civic organizations and other institutions

 

providing internship and apprenticeship opportunities.

 

     (e) Community colleges, trade schools, and universities

 

offering dual enrollment opportunities.

 

     (4) The transcript and marketplace shall do all of the

 

following:

 

     (a) Use Michigan-specific academic standards when defining

 

academic competencies.

 

     (b) Use industry standards for the competency assessment.

 

     (c) Use industry standards for articulating and transcripting

 

of credentials, micro-credentials, credits, and micro-credits.

 

     (d) Offer its services at no cost to pupils or parents.

 

     (5) Not more than 50% of the funds awarded to a grantee under

 

this section shall be initially distributed to the grantee. To

 

receive the remaining distribution of funds, the grantee shall

 

provide to the department a progress report on the development and


piloting of the competency-based transcript and marketplace

 

described in this section, and the department shall only release

 

the remaining funds if, upon review of this progress report, the

 

department determines that sufficient progress has been made by the

 

grantee.

 

     (6) Upon completion of the pilot described in this section,

 

the grantee shall provide a report to the house and senate

 

appropriations subcommittees on school aid detailing the project's

 

expenditures, pupils served, successes and challenges, and

 

feasibility for expanding the project statewide.

 

     Sec. 22a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $5,377,000,000.00 for 2014-2015

 

and an amount not to exceed $5,281,700,000.00 $5,260,000,000.00 for

 

2015-2016 and an amount not to exceed $5,205,000,000.00 for 2016-

 

2017 for payments to districts and qualifying public school

 

academies to guarantee each district and qualifying public school

 

academy an amount equal to its 1994-95 total state and local per

 

pupil revenue for school operating purposes under section 11 of

 

article IX of the state constitution of 1963. Pursuant to section

 

11 of article IX of the state constitution of 1963, this guarantee

 

does not apply to a district in a year in which the district levies

 

a millage rate for school district operating purposes less than it

 

levied in 1994. However, subsection (2) applies to calculating the

 

payments under this section. Funds allocated under this section

 

that are not expended in the state fiscal year for which they were

 

allocated, as determined by the department, may be used to

 

supplement the allocations under sections 22b and 51c in order to


fully fund those calculated allocations for the same fiscal year.

 

     (2) To ensure that a district receives an amount equal to the

 

district's 1994-95 total state and local per pupil revenue for

 

school operating purposes, there is allocated to each district a

 

state portion of the district's 1994-95 foundation allowance in an

 

amount calculated as follows:

 

     (a) Except as otherwise provided in this subsection, the state

 

portion of a district's 1994-95 foundation allowance is an amount

 

equal to the district's 1994-95 foundation allowance or $6,500.00,

 

whichever is less, minus the difference between the sum of the

 

product of the taxable value per membership pupil of all property

 

in the district that is nonexempt property times the district's

 

certified mills and, for a district with certified mills exceeding

 

12, the product of the taxable value per membership pupil of

 

property in the district that is commercial personal property times

 

the certified mills minus 12 mills and the quotient of the ad

 

valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership. For

 

a district that has a millage reduction required under section 31

 

of article IX of the state constitution of 1963, the state portion

 

of the district's foundation allowance shall be calculated as if

 

that reduction did not occur. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, taxable

 

value per membership pupil of all property in the receiving


district that is nonexempt property and taxable value per

 

membership pupil of property in the receiving district that is

 

commercial personal property do not include property within the

 

geographic area of the dissolved district; ad valorem property tax

 

revenue of the receiving district captured under tax increment

 

financing acts does not include ad valorem property tax revenue

 

captured within the geographic boundaries of the dissolved district

 

under tax increment financing acts; and certified mills do not

 

include the certified mills of the dissolved district.

 

     (b) For a district that had a 1994-95 foundation allowance

 

greater than $6,500.00, the state payment under this subsection

 

shall be the sum of the amount calculated under subdivision (a)

 

plus the amount calculated under this subdivision. The amount

 

calculated under this subdivision shall be equal to the difference

 

between the district's 1994-95 foundation allowance minus $6,500.00

 

and the current year hold harmless school operating taxes per

 

pupil. If the result of the calculation under subdivision (a) is

 

negative, the negative amount shall be an offset against any state

 

payment calculated under this subdivision. If the result of a

 

calculation under this subdivision is negative, there shall not be

 

a state payment or a deduction under this subdivision. The taxable

 

values per membership pupil used in the calculations under this

 

subdivision are as adjusted by ad valorem property tax revenue

 

captured under tax increment financing acts divided by the

 

district's membership. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving


district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, ad valorem

 

property tax revenue captured under tax increment financing acts do

 

not include ad valorem property tax revenue captured within the

 

geographic boundaries of the dissolved district under tax increment

 

financing acts.

 

     (3) Beginning in 2003-2004, for pupils in membership in a

 

qualifying public school academy, there is allocated under this

 

section to the authorizing body that is the fiscal agent for the

 

qualifying public school academy for forwarding to the qualifying

 

public school academy an amount equal to the 1994-95 per pupil

 

payment to the qualifying public school academy under section 20.

 

     (4) A district or qualifying public school academy may use

 

funds allocated under this section in conjunction with any federal

 

funds for which the district or qualifying public school academy

 

otherwise would be eligible.

 

     (5) Except as otherwise provided in this subsection, for a

 

district that is formed or reconfigured after June 1, 2000 by

 

consolidation of 2 or more districts or by annexation, the

 

resulting district's 1994-95 foundation allowance under this

 

section beginning after the effective date of the consolidation or

 

annexation shall be the average of the 1994-95 foundation

 

allowances of each of the original or affected districts,

 

calculated as provided in this section, weighted as to the

 

percentage of pupils in total membership in the resulting district

 

in the state fiscal year in which the consolidation takes place who

 

reside in the geographic area of each of the original districts. If


an affected district's 1994-95 foundation allowance is less than

 

the 1994-95 basic foundation allowance, the amount of that

 

district's 1994-95 foundation allowance shall be considered for the

 

purpose of calculations under this subsection to be equal to the

 

amount of the 1994-95 basic foundation allowance. This subsection

 

does not apply to a receiving district unless there is a subsequent

 

consolidation or annexation that affects the district.

 

     (6) Payments under this section are subject to section 25f.

 

     (7) As used in this section:

 

     (a) "1994-95 foundation allowance" means a district's 1994-95

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

in 1993 PA 336 and as amended by 1994 PA 283.

 

     (b) "Certified mills" means the lesser of 18 mills or the

 

number of mills of school operating taxes levied by the district in

 

1993-94.

 

     (c) "Current state fiscal year" means the state fiscal year

 

for which a particular calculation is made.

 

     (d) "Current year hold harmless school operating taxes per

 

pupil" means the per pupil revenue generated by multiplying a

 

district's 1994-95 hold harmless millage by the district's current

 

year taxable value per membership pupil. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

taxable value per membership pupil does not include the taxable


value of property within the geographic area of the dissolved

 

district.

 

     (e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

     (f) "Hold harmless millage" means, for a district with a 1994-

 

95 foundation allowance greater than $6,500.00, the number of mills

 

by which the exemption from the levy of school operating taxes on a

 

homestead, qualified agricultural property, qualified forest

 

property, supportive housing property, industrial personal

 

property, commercial personal property, and property occupied by a

 

public school academy could be reduced as provided in section 1211

 

of the revised school code, MCL 380.1211, and the number of mills

 

of school operating taxes that could be levied on all property as

 

provided in section 1211(2) of the revised school code, MCL

 

380.1211, as certified by the department of treasury for the 1994

 

tax year. For a receiving district, if school operating taxes are

 

to be levied on behalf of a dissolved district that has been

 

attached in whole or in part to the receiving district to satisfy

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

     (g) "Homestead", "qualified agricultural property", "qualified

 

forest property", "supportive housing property", "industrial

 

personal property", and "commercial personal property" mean those


terms as defined in section 1211 of the revised school code, MCL

 

380.1211.

 

     (h) "Membership" means the definition of that term under

 

section 6 as in effect for the particular fiscal year for which a

 

particular calculation is made.

 

     (i) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a

 

public school academy.

 

     (j) "Qualifying public school academy" means a public school

 

academy that was in operation in the 1994-95 school year and is in

 

operation in the current state fiscal year.

 

     (k) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

     (l) "School operating taxes" means local ad valorem property

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211, and retained for school operating purposes as defined in

 

section 20.

 

     (m) "Tax increment financing acts" means 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, the local development financing

 

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.


     (n) "Taxable value per membership pupil" means each of the

 

following divided by the district's membership:

 

     (i) For the number of mills by which the exemption from the

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, supportive

 

housing property, industrial personal property, commercial personal

 

property, and property occupied by a public school academy may be

 

reduced as provided in section 1211 of the revised school code, MCL

 

380.1211, the taxable value of homestead, qualified agricultural

 

property, qualified forest property, supportive housing property,

 

industrial personal property, commercial personal property, and

 

property occupied by a public school academy for the calendar year

 

ending in the current state fiscal year. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

mills do not include mills within the geographic area of the

 

dissolved district.

 

     (ii) For the number of mills of school operating taxes that

 

may be levied on all property as provided in section 1211(2) of the

 

revised school code, MCL 380.1211, the taxable value of all

 

property for the calendar year ending in the current state fiscal

 

year. For a receiving district, if school operating taxes are to be

 

levied on behalf of a dissolved district that has been attached in

 

whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the


revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

     Sec. 22b. (1) From the appropriation in section 11, For

 

discretionary nonmandated payments to districts under this section,

 

there is allocated from the appropriation in section 11 an amount

 

not to exceed $3,692,000,000.00 for 2015-2016, and there is

 

allocated for 2016-2017 an amount not to exceed $3,440,000,000.00

 

for 2014-2015 and an amount not to exceed $3,728,000,000.00 for

 

2015-2016 for discretionary nonmandated payments to districts under

 

this section. Funds $3,828,000,000.00 from the state school aid

 

fund and general fund appropriations in section 11 and an amount

 

not to exceed $72,000,000.00 from the community district education

 

trust fund appropriation in section 11. Except for money allocated

 

from the community district trust fund, money allocated under this

 

section that are is not expended in the state fiscal year for which

 

they were it was allocated, as determined by the department, may be

 

used to supplement the allocations under sections 22a and 51c in

 

order to fully fund those calculated allocations for the same

 

fiscal year.

 

     (2) Subject to subsection (3) and section 296, the allocation

 

to a district under this section shall be an amount equal to the

 

sum of the amounts calculated under sections 20, 20m, 51a(2),

 

51a(3), and 51a(11), minus the sum of the allocations to the

 

district under sections 22a and 51c.

 

     (3) In order to receive an allocation under subsection (1),

 

each district shall do all of the following:


     (a) Comply with section 1280b of the revised school code, MCL

 

380.1280b.

 

     (b) Comply with sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b.

 

     (c) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

     (d) Comply with section 1230g of the revised school code, MCL

 

380.1230g.

 

     (e) Comply with section 21f.

 

     (4) Districts are encouraged to use funds allocated under this

 

section for the purchase and support of payroll, human resources,

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

     (5) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state related to commercial or industrial property tax appeals,

 

including, but not limited to, appeals of classification, that

 

impact revenues dedicated to the state school aid fund.

 

     (6) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this


section.

 

     (7) It is the intent of the legislature that all

 

constitutional obligations of this state have been fully funded

 

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

 

an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

amount as may be necessary to satisfy the claim before making any

 

payments to districts under subsection (2). If funds are escrowed,

 

the escrowed funds are a work project appropriation and the funds

 

are carried forward into the following fiscal year. The purpose of

 

the work project is to provide for any payments that may be awarded

 

to districts as a result of litigation. The work project shall be

 

completed upon resolution of the litigation.

 

     (8) If the local claims review board or a court of competent

 

jurisdiction makes a final determination that this state is in

 

violation of section 29 of article IX of the state constitution of

 

1963 regarding state payments to districts, the state budget

 

director shall use work project funds under subsection (7) or

 

allocate from the discretionary funds for nonmandated payments

 

under this section the amount as may be necessary to satisfy the

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

     (9) If a claim is made in court that challenges the

 

legislative determination of the adequacy of funding for this


state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

an expedited review of the claim by the local claims review board.

 

If the claim exceeds $10,000,000.00, this state may remove the

 

action to the court of appeals, and the court of appeals shall have

 

and shall exercise jurisdiction over the claim.

 

     (10) If payments resulting from a final determination by the

 

local claims review board or a court of competent jurisdiction that

 

there has been a violation of section 29 of article IX of the state

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX Medicaid funds is

 

filed against this state, then, for the purpose of addressing

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

money from the funds otherwise allocated under this section, up to

 

a maximum of 50% of the amount allocated in subsection (1). If

 

funds are placed in escrow under this subsection, those funds are a

 

work project appropriation and the funds are carried forward into

 

the following fiscal year. The purpose of the work project is to

 

provide for any payments that may be awarded to districts as a

 

result of the litigation. The work project shall be completed upon

 

resolution of the litigation. In addition, this state reserves the

 

right to terminate future federal title XIX Medicaid reimbursement


payments to districts if the amount or allocation of reimbursed

 

funds is challenged in the lawsuit. As used in this subsection,

 

"title XIX" means title XIX of the social security act, 42 USC 1396

 

to 1396v.

 

     (12) Payments under this section are subject to section 25g.

 

     Sec. 22d. (1) From the appropriation in section 11, an amount

 

not to exceed $5,000,000.00 is allocated for 2015-2016 2016-2017

 

for supplemental payments to rural districts under this section.

 

     (2) From the allocation under subsection (1), there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$957,300.00 for payments under this subsection to districts that

 

meet all of the following:

 

     (a) Operates grades K to 12.

 

     (b) Has fewer than 250 pupils in membership.

 

     (c) Each school building operated by the district meets at

 

least 1 of the following:

 

     (i) Is located in the Upper Peninsula at least 30 miles from

 

any other public school building.

 

     (ii) Is located on an island that is not accessible by bridge.

 

     (3) The amount of the additional funding to each eligible

 

district under subsection (2) shall be determined under a spending

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential


financial needs of each eligible district, and develop and agree on

 

a spending plan that distributes the available funding under

 

subsection (2) to the eligible districts based on those financial

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

allocated under subsection (2) and shall be paid to the eligible

 

districts in the same manner as payments under section 22b.

 

     (4) Subject to subsection (6), from the allocation in

 

subsection (1), there is allocated for 2015-2016 2016-2017 an

 

amount not to exceed $4,042,700.00 for payments under this

 

subsection to districts that have 7.3 or fewer pupils per square

 

mile as determined by the department.

 

     (5) The funds allocated under subsection (4) shall be

 

allocated on an equal per-pupil basis.

 

     (6) A district receiving funds allocated under subsection (2)

 

is not eligible for funding allocated under subsection (4).

 

     Sec. 22g. (1) From the funds appropriated in section 11, there

 

is allocated for 2015-2016 2016-2017 only an amount not to exceed

 

$5,000,000.00 $500,000.00 for competitive assistance grants to

 

districts and intermediate districts.

 

     (2) Funds received under this section may be used for

 

reimbursement of transition costs associated with the dissolution,

 

consolidation, or annexation of districts or intermediate

 

districts. Grant funding shall be available for dissolutions,

 

consolidations, or annexations that occur on or after June 1, 2015.


2016. Districts may spend funds allocated under this section over 3

 

fiscal years.

 

     (3) In addition to the amount allocated under subsection (1),

 

from the funds appropriated in section 11, there is allocated for

 

2016-2017 an amount not to exceed $2,500,000.00 for grants to

 

districts or intermediate districts that received a grant under

 

this section as it was in effect for 2015-2016 for reimbursement of

 

remaining transition costs associated with a dissolution,

 

consolidation, or annexation that was approved during 2015-2016 by

 

the school electors of the applicable district or intermediate

 

district.

 

     Sec. 23a. (1) A dropout recovery program operated by a

 

district qualifies for the special membership counting provisions

 

of section 6(4)(dd) and the hours and day of pupil instruction

 

exemption under section 101(12) if the dropout recovery program

 

meets all of the following:

 

     (a) Enrolls only eligible pupils.

 

     (b) Provides an advocate. An advocate may serve in that role

 

for more than 1 pupil but no more than 50 pupils. An advocate may

 

be employed by the district or may be provided by an education

 

management organization that is partnering with the district.

 

Before an individual is assigned to be an advocate for a pupil in

 

the dropout recovery program, the district shall comply with

 

sections 1230 and 1230a of the revised school code, MCL 380.1230

 

and 380.1230a, with respect to that individual.

 

     (c) Develops a written learning plan.

 

     (d) Monitors the pupil's progress against the written learning


plan.

 

     (e) Requires each pupil to make satisfactory monthly progress,

 

as defined by the district under subsection (2).

 

     (f) Reports the pupil's progress results to the partner

 

district at least monthly.

 

     (g) The program may be operated on or off a district school

 

campus, but may be operated using distance learning online only if

 

the program provides a computer and Internet access for each

 

eligible pupil participating in the program.

 

     (h) Is operated throughout the entire calendar year.

 

     (i) If the district partners with an education management

 

organization for the program, the education management organization

 

has a dropout recovery program partnership relationship with at

 

least 1 other district.

 

     (2) A district operating a dropout recovery program under this

 

section shall adopt a definition of satisfactory monthly progress

 

that is consistent with the definition of that term under

 

subsection (3).

 

     (3) As used in this section:

 

     (a) "Advocate" means an adult available to meet in person with

 

assigned pupils, as needed, to conduct social interventions, to

 

proctor final examinations, and to provide academic and social

 

support to pupils enrolled in the district's dropout recovery

 

program.

 

     (b) "Education management organization" means a private

 

provider that operates 1 or more other dropout recovery programs

 

that meet the requirements of this section in partnership with 1 or


more districts.

 

     (c) "Eligible pupil" means a pupil who has been expelled from

 

school under the mandatory expulsion provisions in section 1311 or

 

1311a of the revised school code, MCL 380.1311 and 380.1311a, a

 

pupil who has been suspended or expelled from school under a local

 

policy, a pupil who is referred by a court, a pupil who is pregnant

 

or is a parent, a pupil who was previously a dropout, or a pupil

 

who is determined by the district to be at risk of dropping out.

 

     (d) "Satisfactory monthly progress" means an amount of

 

progress that is measurable on a monthly basis and that, if

 

continued for a full 12 months, would result in the same amount of

 

academic credit being awarded to the pupil as would be awarded to a

 

general education pupil completing a full school year. Satisfactory

 

monthly progress may include a lesser required amount of progress

 

for the first 2 months a pupil participates in the program.

 

     (e) "Teacher of record" means a teacher who holds a valid

 

Michigan teaching certificate; who, if applicable, is endorsed in

 

the subject area and grade of the course; and is responsible for

 

providing instruction, determining instructional methods for each

 

pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 

evaluating the effects of instruction and support strategies.

 

     (f) (e) "Written learning plan" means a written plan developed

 

in conjunction with the advocate that includes the plan start and

 

end dates, courses to be taken, credit to be earned for each

 

course, teacher of record for each course, and advocate name and

 

contact information.


     Sec. 24. (1) From the appropriation in section 11, there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$8,000,000.00 for payments to the educating district or

 

intermediate district for educating pupils assigned by a court or

 

the department of health and human services to reside in or to

 

attend a juvenile detention facility or child caring institution

 

licensed by the department of health and human services and

 

approved by the department to provide an on-grounds education

 

program. The amount of the payment under this section to a district

 

or intermediate district shall be calculated as prescribed under

 

subsection (2).

 

     (2) The total amount allocated under this section shall be

 

allocated by paying to the educating district or intermediate

 

district an amount equal to the lesser of the district's or

 

intermediate district's added cost or the department's approved

 

per-pupil allocation for the district or intermediate district. For

 

the purposes of this subsection:

 

     (a) "Added cost" means 100% of the added cost each fiscal year

 

for educating all pupils assigned by a court or the department of

 

health and human services to reside in or to attend a juvenile

 

detention facility or child caring institution licensed by the

 

department of health and human services or the department of

 

licensing and regulatory affairs and approved by the department to

 

provide an on-grounds education program. Added cost shall be

 

computed by deducting all other revenue received under this article

 

for pupils described in this section from total costs, as approved

 

by the department, in whole or in part, for educating those pupils


in the on-grounds education program or in a program approved by the

 

department that is located on property adjacent to a juvenile

 

detention facility or child caring institution. Costs reimbursed by

 

federal funds are not included.

 

     (b) "Department's approved per-pupil allocation" for a

 

district or intermediate district shall be determined by dividing

 

the total amount allocated under this section for a fiscal year by

 

the full-time equated membership total for all pupils approved by

 

the department to be funded under this section for that fiscal year

 

for the district or intermediate district.

 

     (3) A district or intermediate district educating pupils

 

described in this section at a residential child caring institution

 

may operate, and receive funding under this section for, a

 

department-approved on-grounds educational program for those pupils

 

that is longer than 181 days, but not longer than 233 days, if the

 

child caring institution was licensed as a child caring institution

 

and offered in 1991-92 an on-grounds educational program that was

 

longer than 181 days but not longer than 233 days and that was

 

operated by a district or intermediate district.

 

     (4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     Sec. 24a. From the appropriation in section 11, there is

 

allocated an amount not to exceed $2,189,800.00 $1,301,000.00 for

 

2015-2016 and there is allocated an amount not to exceed

 

$1,328,100.00 for 2016-2017 for payments to intermediate districts

 

for pupils who are placed in juvenile justice service facilities

 

operated by the department of health and human services. Each


intermediate district shall receive an amount equal to the state

 

share of those costs that are clearly and directly attributable to

 

the educational programs for pupils placed in facilities described

 

in this section that are located within the intermediate district's

 

boundaries. The intermediate districts receiving payments under

 

this section shall cooperate with the department of health and

 

human services to ensure that all funding allocated under this

 

section is utilized by the intermediate district and department of

 

health and human services for educational programs for pupils

 

described in this section. Pupils described in this section are not

 

eligible to be funded under section 24. However, a program

 

responsibility or other fiscal responsibility associated with these

 

pupils shall not be transferred from the department of health and

 

human services to a district or intermediate district unless the

 

district or intermediate district consents to the transfer.

 

     Sec. 24c. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,497,400.00 for 2015-2016

 

$1,632,400.00 for 2016-2017 for payments to districts for pupils

 

who are enrolled in a nationally administered community-based

 

education and youth mentoring program, known as the youth challenge

 

program, that is administered by the department of military and

 

veterans affairs. Both of the following apply to a district

 

receiving payments under this section:

 

     (a) The district shall contract with the department of

 

military and veterans affairs to ensure that all funding allocated

 

under this section is utilized by the district and the department

 

of military and veterans affairs for the youth challenge program.


     (b) The district may retain for its administrative expenses an

 

amount not to exceed 3% of the amount of the payment the district

 

receives under this section.

 

     Sec. 25e. (1) The pupil membership transfer application and

 

pupil transfer process administered by the center under this

 

section shall be used for processing pupil transfers associated

 

with strict discipline academies.

 

     (2) If a pupil counted in membership for the pupil membership

 

count day transfers from a district or intermediate district to

 

enroll in another district or intermediate district a strict

 

discipline academy after the pupil membership count day and before

 

the supplemental count day and, due to the pupil's enrollment and

 

attendance status as of the pupil membership count day, the pupil

 

was not counted in membership in the educating district or

 

intermediate district, strict discipline academy, the educating

 

district or intermediate district strict discipline academy may

 

report the enrollment and attendance information to the center

 

through the pupil transfer process within 30 days after the

 

transfer or within 30 days after the pupil membership count

 

certification date, whichever is later. Pupil transfers may be

 

submitted no earlier than the first day after the certification

 

deadline for the pupil membership count day and before the

 

supplemental count day. Upon receipt of the transfer information

 

under this subsection indicating that a pupil has enrolled and is

 

in attendance in an educating district or intermediate district

 

strict discipline academy as described in this subsection, the

 

pupil transfer process shall do the following:


     (a) Notify the district in which the pupil was previously

 

enrolled.

 

     (b) Notify both the pupil auditing staff of the intermediate

 

district in which the educating district strict discipline academy

 

is located and the pupil auditing staff of the intermediate

 

district in which the district that previously enrolled the pupil

 

is located. The pupil auditing staff shall investigate a

 

representative sample based on required audit sample sizes in the

 

pupil auditing manual and may deny the pupil membership transfer.

 

     (c) Aggregate the districtwide changes and notify the

 

department for use in adjusting the state aid payment system.

 

     (3) The department shall do all of the following:

 

     (a) Adjust the membership calculation for each district or

 

intermediate district in which the pupil was previously counted in

 

membership or that previously received an adjustment in its

 

membership calculation under this section due to a change in the

 

pupil's enrollment and attendance so that the district's or

 

intermediate district's membership is prorated to allow the

 

district or intermediate district to receive for each school day,

 

as determined by the financial calendar furnished by the center, in

 

which the pupil was enrolled and in attendance in the district or

 

intermediate district an amount equal to 1/105 of a full-time

 

equated membership claimed in the fall pupil membership count. The

 

district or intermediate district shall receive a prorated

 

foundation allowance in an amount equal to the product of the

 

adjustment under this subdivision for the district or intermediate

 

district multiplied by the foundation allowance or per-pupil


payment as calculated under section 20 for the district or

 

intermediate district. The foundation allowance or per-pupil

 

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

 

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

 

     (b) Adjust the membership calculation for the educating

 

district or intermediate district strict discipline academy in

 

which the pupil is enrolled and is in attendance so that the

 

district's or intermediate district's strict discipline academy's

 

membership is increased to allow the district or intermediate

 

district strict discipline academy to receive an amount equal to

 

the difference between the full-time equated membership claimed in

 

the fall pupil membership count and the sum of the adjustments

 

calculated under subdivision (a) for each district or intermediate

 

district in which the pupil was previously enrolled and in

 

attendance. The educating district or intermediate district strict

 

discipline academy shall receive a prorated foundation allowance in

 

an amount equal to the product of the adjustment under this

 

subdivision for the educating district or intermediate district

 

strict discipline academy multiplied by the foundation allowance or

 

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

 

district or intermediate district. strict discipline academy. The

 

foundation allowance or per-pupil payment shall be adjusted by the

 

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

 

definition under section 6(4).

 

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

 

under subsection (3) shall take effect as of the date that the

 

pupil becomes enrolled and in attendance in the educating district


or intermediate district, strict discipline academy, and the

 

department shall base all subsequent payments under this article

 

for the fiscal year to the affected districts or intermediate

 

districts on this recalculation of state school aid.

 

     (5) If a pupil enrolls in an educating district or

 

intermediate district strict discipline academy as described in

 

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

 

pupil is counted in membership or another educating district or

 

intermediate district strict discipline academy that received an

 

adjustment in its membership calculation under subsection (3), if

 

any, and the educating district or intermediate district strict

 

discipline academy shall provide to the center and the department

 

all information they require to comply with this section.

 

     (6) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under section

 

21f shall not be counted or transferred under the pupil transfer

 

process under this section.

 

     (7) The It is the intent of the legislature that the center

 

shall determine the number of pupils who did not reside in this

 

state as of the 2015-2016 2018-2019 pupil membership count day but

 

who newly enrolled in a district or intermediate district after

 

that pupil membership count day and before the 2015-2016 2018-2019

 

supplemental count day. The It is the intent of the legislature

 

that the center shall further determine the number of pupils who

 

were counted in membership for the 2015-2016 2018-2019 pupil

 

membership count day but who left this state before the 2015-2016

 

2018-2019 supplemental count day. The In 2019-2020, the center


shall provide a report to the senate and house appropriations

 

subcommittees on state school aid, and to the senate and house

 

fiscal agencies, detailing the number of pupils transferring in

 

from another state or transferring out from this state between the

 

pupil membership count day and supplemental count day as described

 

in this subsection. The center shall include in the report a

 

discussion of benefits and obstacles to developing a pupil

 

enrollment process for pupils who newly enroll in a district or

 

intermediate district after the pupil membership count day and

 

before the supplemental count day, and developing a process for

 

deducting pupils who were counted on the pupil membership count day

 

and transfer out of this state before the supplemental count day.

 

     (8) As used in this section:

 

     (a) "Educating district or intermediate district" strict

 

discipline academy" means the district or intermediate district

 

strict discipline academy in which a pupil enrolls after the pupil

 

membership count day or after an adjustment was made in another

 

district's or intermediate district's membership calculation under

 

this section due to the pupil's enrollment and attendance.

 

     (b) "Pupil" means that term as defined under section 6 and

 

also children receiving early childhood special education programs

 

and services.

 

     (c) "Strict discipline academy" means a strict discipline

 

academy operating under sections 1311b to 1311m of the revised

 

school code, MCL 380.1311b to 380.1311m.

 

     Sec. 25f. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to


exceed $1,000,000.00 for 2015-2016 $750,000.00 for 2016-2017 for

 

payments to strict discipline academies established under sections

 

1311b to 1311m of the revised school code, MCL 380.1311b to

 

380.1311m, as provided under this section.

 

     (2) In order to receive funding under this section, a strict

 

discipline academy shall first comply with section 25e and use the

 

pupil transfer process under that section for changes in enrollment

 

as prescribed under that section.

 

     (3) The total amount allocated to a strict discipline academy

 

under this section is an amount equal to the lesser of the strict

 

discipline academy's added cost or the department's approved per-

 

pupil allocation for the strict discipline academy. However, the

 

sum of the amounts received by a strict discipline academy under

 

this section and under section 24 shall not exceed the product of

 

the strict discipline academy's per-pupil allocation calculated

 

under section 20 multiplied by the strict discipline academy's

 

full-time equated membership. The department shall allocate funds

 

to strict discipline academies under this section on a monthly

 

basis. For the purposes of this subsection:

 

     (a) "Added cost" means 100% of the added cost each fiscal year

 

for educating all pupils enrolled and in regular daily attendance

 

at a strict discipline academy. Added cost shall be computed by

 

deducting all other revenue received under this article for pupils

 

described in this subsection from total costs, as approved by the

 

department, in whole or in part, for educating those pupils in a

 

strict discipline academy. The department shall include all costs

 

including, but not limited to, educational costs, insurance,


management fees, technology costs, legal fees, auditing fees,

 

interest, pupil accounting costs, and any other administrative

 

costs necessary to operate the program or to comply with statutory

 

requirements. Costs reimbursed by federal funds are not included.

 

     (b) "Department's approved per-pupil allocation" for a strict

 

discipline academy shall be determined by dividing the total amount

 

allocated under this subsection for a fiscal year by the full-time

 

equated membership total for all pupils approved by the department

 

to be funded under this subsection for that fiscal year for the

 

strict discipline academy.

 

     (4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     (5) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsection (3), payments under

 

this section shall be prorated on an equal per-pupil basis.

 

     (6) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 25g. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $1,000,000.00 for 2015-2016 $750,000.00 for 2016-2017 for

 

the purposes of this section. If the operation of the special

 

membership counting provisions under section 6(4)(dd) and the other

 

membership counting provisions under section 6(4) result in a pupil

 

being counted as more than 1.0 FTE in a fiscal year, then the

 

payment made for the pupil under sections 22a and 22b shall not be

 

based on more than 1.0 FTE for that pupil, and that portion of the

 

FTE that exceeds 1.0 shall be paid under this section in an amount


equal to that portion multiplied by the educating district's

 

foundation allowance or per-pupil payment calculated under section

 

20.

 

     (2) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     (3) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsection (1), payments under

 

this section shall be prorated on an equal per-pupil basis.

 

     (4) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 26a. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $26,300,000.00 $20,000,000.00 for

 

2015-2016 and there is allocated an amount not to exceed

 

$20,000,000.00 for 2016-2017 to reimburse districts and

 

intermediate districts pursuant to section 12 of the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied

 

in 2015. 2016. The allocations shall be made not later than 60 days

 

after the department of treasury certifies to the department and to

 

the state budget director that the department of treasury has

 

received all necessary information to properly determine the

 

amounts due to each eligible recipient.

 

     Sec. 26b. (1) From the appropriation in section 11, there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$4,276,800.00 $4,405,100.00 for payments to districts, intermediate

 

districts, and community college districts for the portion of the

 

payment in lieu of taxes obligation that is attributable to

 

districts, intermediate districts, and community college districts


pursuant to section 2154 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2154.

 

     (2) If the amount appropriated under this section is not

 

sufficient to fully pay obligations under this section, payments

 

shall be prorated on an equal basis among all eligible districts,

 

intermediate districts, and community college districts.

 

     Sec. 26c. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $610,000.00 $278,000.00 for 2015-

 

2016 and there is allocated an amount not to exceed $1,000,000.00

 

for 2016-2017 to the promise zone fund created in subsection (3).

 

     (2) Funds allocated to the promise zone fund under this

 

section shall be used solely for payments to eligible districts and

 

intermediate districts that have a promise zone development plan

 

approved by the department of treasury under section 7 of the

 

Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

 

     (3) The promise zone fund is created as a separate account

 

within the state school aid fund to be used solely for the purposes

 

of the Michigan promise zone authority act, 2008 PA 549, MCL

 

390.1661 to 390.1679. All of the following apply to the promise

 

zone fund:

 

     (a) The state treasurer shall direct the investment of the

 

promise zone fund. The state treasurer shall credit to the promise

 

zone fund interest and earnings from fund investments.

 

     (b) Money in the promise zone fund at the close of a fiscal

 

year shall remain in the promise zone fund and shall not lapse to

 

the general fund.

 

     (4) Subject to subsection (2), the state treasurer may make


payments from the promise zone fund to eligible districts and

 

intermediate districts pursuant to the Michigan promise zone

 

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

 

for the purposes of a promise zone authority created under that

 

act.

 

     Sec. 31a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2015-2016 2016-

 

2017 an amount not to exceed $389,695,500.00 for payments to

 

eligible districts, eligible public school academies, and the

 

education achievement system for the purposes of ensuring that

 

pupils are proficient in reading by the end of grade 3 and that

 

high school graduates are career and college ready and for the

 

purposes under subsections (7) and (8).

 

     (2) For a district or public school academy, or the education

 

achievement system, to be eligible to receive funding under this

 

section, other than funding under subsection (7) or (8), the sum of

 

the district's or public school academy's or the education

 

achievement system's combined state and local revenue per

 

membership pupil in the current state fiscal year, as calculated

 

under section 20, must be less than or equal to the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

     (3) For a district or public school academy that operates

 

grades K to 3, or the education achievement system, to be eligible

 

to receive funding under this section, other than funding under

 

subsection (7) or (8), the district or public school academy, or

 

the education achievement system, must implement, for at least


grades K to 3, a multi-tiered system of supports that is an

 

evidence-based model that uses data-driven problem solving to

 

integrate academic and behavioral instruction and that uses

 

intervention delivered to all pupils in varying intensities based

 

on pupil needs. This multi-tiered system of supports must provide

 

at least all of the following essential elements:

 

     (a) Implements effective instruction for all learners.

 

     (b) Intervenes early.

 

     (c) Provides a multi-tiered model of instruction and

 

intervention that provides the following:

 

     (i) A core curriculum and classroom interventions available to

 

all pupils that meet the needs of most pupils.

 

     (ii) Targeted group interventions.

 

     (iii) Intense individual interventions.

 

     (d) Monitors pupil progress to inform instruction.

 

     (e) Uses data to make instructional decisions.

 

     (f) Uses assessments including universal screening,

 

diagnostics, and progress monitoring.

 

     (g) Engages families and the community.

 

     (h) Implements evidence-based, scientifically validated,

 

instruction and intervention.

 

     (i) Implements instruction and intervention practices with

 

fidelity.

 

     (j) Uses a collaborative problem-solving model.

 

     (4) Except as otherwise provided in this subsection, an

 

eligible district or eligible public school academy or the

 

education achievement system shall receive under this section for


each membership pupil in the district or public school academy or

 

the education achievement system who met the income eligibility

 

criteria for free breakfast, lunch, or milk, as determined under

 

the Richard B. Russell national school lunch act, 42 USC 1751 to

 

1769, and as reported to the department in the form and manner

 

prescribed by the department not later than the fifth Wednesday

 

after the pupil membership count day of the immediately preceding

 

fiscal year and adjusted not later than December 31 of the

 

immediately preceding fiscal year, an amount per pupil equal to

 

11.5% of the sum of the district's foundation allowance or the

 

public school academy's or the education achievement system's per

 

pupil amount calculated under section 20 plus the amount of the

 

district's per-pupil allocation under section 20m, not to exceed

 

the basic foundation allowance under section 20 for the current

 

state fiscal year, or of the public school academy's or the

 

education achievement system's per membership pupil amount

 

calculated under section 20 for the current state fiscal year.

 

However, a public school academy that began operations as a public

 

school academy, or an achievement school that began operations as

 

an achievement school, or a community district that first enrolls

 

pupils, after the pupil membership count day of the immediately

 

preceding school year shall receive under this section for each

 

membership pupil in the public school academy, or in the education

 

achievement system, or in the community district who met the income

 

eligibility criteria for free breakfast, lunch, or milk, as

 

determined under the Richard B. Russell national school lunch act

 

and as reported to the department not later than the fifth


Wednesday after the pupil membership count day of the current

 

fiscal year and adjusted not later than December 31 of the current

 

fiscal year, an amount per pupil equal to 11.5% of the public

 

school academy's, or the education achievement system's, or the

 

community district's per membership pupil amount calculated under

 

section 20 for the current state fiscal year.

 

     (5) Except as otherwise provided in this section, a district

 

or public school academy, or the education achievement system,

 

receiving funding under this section shall use that money only to

 

provide instructional programs and direct noninstructional

 

services, including, but not limited to, medical, mental health, or

 

counseling services, for at-risk pupils; for school health clinics;

 

and for the purposes of subsection (6), (7), (8), or (11). In

 

addition, a district that is a school district of the first class

 

or a district or public school academy in which at least 50% of the

 

pupils in membership met the income eligibility criteria for free

 

breakfast, lunch, or milk in the immediately preceding state fiscal

 

year, as determined and reported as described in subsection (4), or

 

the education achievement system if it meets this requirement, may

 

use not more than 20% of the funds it receives under this section

 

for school security. A district, the public school academy, or the

 

education achievement system shall not use any of that money for

 

administrative costs. The instruction or direct noninstructional

 

services provided under this section may be conducted before or

 

after regular school hours or by adding extra school days to the

 

school year.

 

     (6) A district or public school academy that receives funds


under this section and that operates a school breakfast program

 

under section 1272a of the revised school code, MCL 380.1272a, or

 

the education achievement system if it operates a school breakfast

 

program, shall use from the funds received under this section an

 

amount, not to exceed $10.00 per pupil for whom the district or

 

public school academy or the education achievement system receives

 

funds under this section, necessary to pay for costs associated

 

with the operation of the school breakfast program.

 

     (7) From the funds allocated under subsection (1), there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$3,557,300.00 $5,557,300.00 to support child and adolescent health

 

centers. These grants shall be awarded for 5 consecutive years

 

beginning with 2003-2004 in a form and manner approved jointly by

 

the department and the department of health and human services.

 

Each grant recipient shall remain in compliance with the terms of

 

the grant award or shall forfeit the grant award for the duration

 

of the 5-year period after the noncompliance. To continue to

 

receive funding for a child and adolescent health center under this

 

section a grant recipient shall ensure that the child and

 

adolescent health center has an advisory committee and that at

 

least one-third of the members of the advisory committee are

 

parents or legal guardians of school-aged children. A child and

 

adolescent health center program shall recognize the role of a

 

child's parents or legal guardian in the physical and emotional

 

well-being of the child. Funding under this subsection shall be

 

used to support child and adolescent health center services

 

provided to children up to age 21. If any funds allocated under


this subsection are not used for the purposes of this subsection

 

for the fiscal year in which they are allocated, those unused funds

 

shall be used that fiscal year to avoid or minimize any proration

 

that would otherwise be required under subsection (12) for that

 

fiscal year. In addition to the funds otherwise allocated under

 

this subsection, from the money allocated in subsection (1), there

 

is allocated an amount not to exceed $2,000,000.00 for 2015-2016

 

only for child and adolescent health centers to increase access to

 

nurses and behavioral health services in schools, using 3 existing

 

school clinics as hubs for services and using mobile teams to serve

 

satellite school sites.

 

     (8) From the funds allocated under subsection (1), there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$5,150,000.00 for the state portion of the hearing and vision

 

screenings as described in section 9301 of the public health code,

 

1978 PA 368, MCL 333.9301. A local public health department shall

 

pay at least 50% of the total cost of the screenings. The frequency

 

of the screenings shall be as required under R 325.13091 to R

 

325.13096 and R 325.3271 to R 325.3276 of the Michigan

 

administrative code. Funds shall be awarded in a form and manner

 

approved jointly by the department and the department of health and

 

human services. Notwithstanding section 17b, payments to eligible

 

entities under this subsection shall be paid on a schedule

 

determined by the department.

 

     (9) Each district or public school academy receiving funds

 

under this section and the education achievement system shall

 

submit to the department by July 15 of each fiscal year a report,


not to exceed 10 pages, on the usage by the district or public

 

school academy or the education achievement system of funds under

 

this section, which report shall include a brief description of

 

each program conducted or services performed by the district or

 

public school academy or the education achievement system using

 

funds under this section, the amount of funds under this section

 

allocated to each of those programs or services, the total number

 

of at-risk pupils served by each of those programs or services, and

 

the data necessary for the department and the department of health

 

and human services to verify matching funds for the temporary

 

assistance for needy families program. If a district or public

 

school academy or the education achievement system does not comply

 

with this subsection, the department shall withhold an amount equal

 

to the August payment due under this section until the district or

 

public school academy or the education achievement system complies

 

with this subsection. If the district or public school academy or

 

the education achievement system does not comply with this

 

subsection by the end of the state fiscal year, the withheld funds

 

shall be forfeited to the school aid fund.

 

     (10) In order to receive funds under this section, a district

 

or public school academy or the education achievement system shall

 

allow access for the department or the department's designee to

 

audit all records related to the program for which it receives

 

those funds. The district or public school academy or the education

 

achievement system shall reimburse the state for all disallowances

 

found in the audit.

 

     (11) Subject to subsections (6), (7), and (8), a district may


use up to 100% of the funds it receives under this section to

 

implement schoolwide reform in schools with 40% or more of their

 

pupils identified as at-risk pupils by providing supplemental

 

instructional or noninstructional services consistent with the

 

school improvement plan.

 

     (12) If necessary, and before any proration required under

 

section 296, the department shall prorate payments under this

 

section by reducing the amount of the per pupil payment under this

 

section by a dollar amount calculated by determining the amount by

 

which the amount necessary to fully fund the requirements of this

 

section exceeds the maximum amount allocated under this section and

 

then dividing that amount by the total statewide number of pupils

 

who met the income eligibility criteria for free breakfast, lunch,

 

or milk in the immediately preceding fiscal year, as described in

 

subsection (4).

 

     (13) If a district is formed by consolidation after June 1,

 

1995, and if 1 or more of the original districts were not eligible

 

before the consolidation for an additional allowance under this

 

section, the amount of the additional allowance under this section

 

for the consolidated district shall be based on the number of

 

pupils described in subsection (1) enrolled in the consolidated

 

district who reside in the territory of an original district that

 

was eligible before the consolidation for an additional allowance

 

under this section. In addition, if a district is dissolved

 

pursuant to section 12 of the revised school code, MCL 380.12, the

 

intermediate district to which the dissolved school district was

 

constituent shall determine the estimated number of pupils that


meet the income eligibility criteria for free breakfast, lunch, or

 

milk, as described under subsection (4), enrolled in each of the

 

other districts within the intermediate district and provide that

 

estimate to the department for the purposes of distributing funds

 

under this section within 60 days after the school district is

 

declared dissolved.

 

     (14) As used in this section, "at-risk pupil" means a pupil

 

for whom the district has documentation that the pupil meets any of

 

the following criteria:

 

     (a) Is a victim of child abuse or neglect.

 

     (b) Is a pregnant teenager or teenage parent.

 

     (c) Has a family history of school failure, incarceration, or

 

substance abuse.

 

     (d) For pupils for whom the results of the state summative

 

assessment have been received, is a pupil who did not achieve

 

proficiency on the English language arts, mathematics, science, or

 

social studies content area assessment.

 

     (e) Is a pupil who is at risk of not meeting the district's

 

core academic curricular objectives in English language arts or

 

mathematics, as demonstrated on local assessments.

 

     (f) The pupil is enrolled in a priority or priority-successor

 

school, as defined in the elementary and secondary education act of

 

2001 flexibility waiver approved by the United States Department of

 

Education.

 

     (g) In the absence of state or local assessment data, the

 

pupil meets at least 2 of the following criteria, as documented in

 

a form and manner approved by the department:


     (i) The pupil is eligible for free or reduced price breakfast,

 

lunch, or milk.

 

     (ii) The pupil is absent more than 10% of enrolled days or 10

 

school days during the school year.

 

     (iii) The pupil is homeless.

 

     (iv) The pupil is a migrant.

 

     (v) The pupil is an English language learner.

 

     (vi) The pupil is an immigrant who has immigrated within the

 

immediately preceding 3 years.

 

     (vii) The pupil did not complete high school in 4 years and is

 

still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

     (15) Beginning in 2018-2019, if a district, public school

 

academy, or the education achievement system does not demonstrate

 

to the satisfaction of the department that at least 50% of at-risk

 

pupils are reading at grade level proficient in English language

 

arts by the end of grade 3 as measured by the state assessment for

 

the immediately preceding school year and demonstrate to the

 

satisfaction of the department improvement over each of the 3

 

immediately preceding school years in the percentage of at-risk

 

pupils that are career- and college-ready as determined by

 

proficiency on the English language arts, mathematics, and science

 

content area assessments on the grade 11 summative assessment under

 

section 1279g(2)(a) of the revised school code, MCL 380.1279g, the

 

district, public school academy, or education achievement system

 

shall ensure all of the following:

 

     (a) The district, public school academy, or the education


achievement system shall determine the proportion of total at-risk

 

pupils that represents the number of pupils in grade 3 that are not

 

reading at grade level proficient in English language arts by the

 

end of grade 3, and the district, public school academy, or the

 

education achievement system shall expend that same proportion

 

multiplied by 1/2 of its total at-risk funds under this section on

 

tutoring and other methods of improving grade 3 reading levels.

 

English language arts proficiency.

 

     (b) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at-risk

 

pupils that represent the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on the

 

English language arts, mathematics, and science content area

 

assessments on the grade 11 summative assessment under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

 

district, public school academy, or the education achievement

 

system shall expend that same proportion multiplied by 1/2 of its

 

total at-risk funds under this section on tutoring and other

 

activities to improve scores on the college entrance examination

 

portion of the Michigan merit examination.

 

     (16) As used in subsection (15), "total at-risk pupils" means

 

the sum of the number of pupils in grade 3 that are not reading at

 

grade level proficient in English language arts by the end of third

 

grade as measured on the state assessment and the number of pupils

 

in grade 11 that are not career- and college-ready as measured by

 

the student's score on the English language arts, mathematics, and

 

science content area assessments on the grade 11 summative


assessment under section 1279g(2)(a) of the revised school code,

 

MCL 380.1279g.

 

     (17) A district or public school academy that receives funds

 

under this section or the education achievement system may use

 

funds received under this section to provide an anti-bullying or

 

crisis intervention program.

 

     (18) The department shall collaborate with the department of

 

health and human services to prioritize assigning Pathways to

 

Potential Success coaches to elementary schools that have a high

 

percentage of pupils in grades K to 3 who are not reading at grade

 

level.

 

     Sec. 31b. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $1,500,000.00 for 2016-2017 for

 

grants to at-risk districts for implementing a year-round

 

instructional program for at least 1 of its schools.

 

     (2) The department shall select districts for grants under

 

this section from among applicant districts that meet both of the

 

following:

 

     (a) The district meets 1 or both of the following:

 

     (i) Is eligible in 2016-2017 for the community eligibility

 

option for free and reduced price lunch under 42 USC 1759a.

 

     (ii) At least 50% of the pupils in membership in the district

 

met the income eligibility criteria for free breakfast, lunch, or

 

milk in the immediately preceding state fiscal year, as determined

 

under the Richard B. Russell national school lunch act, 42 USC 1751

 

to 1769i.

 

     (b) The board of the district has adopted a resolution stating


that the district will implement for the first time a year-round

 

instructional calendar that will begin in 2017-2018 for at least 1

 

school operated by the district and committing to providing the

 

year-round instructional calendar in each of those schools for at

 

least 3 school years.

 

     (3) A district seeking a grant under this section shall apply

 

to the department in the form and manner prescribed by the

 

department not later than December 1, 2016. The department shall

 

select districts for grants and make notification not later than

 

February 1, 2017.

 

     (4) The department shall award grants under this section on a

 

competitive basis, but shall give priority based solely on

 

consideration of the following criteria:

 

     (a) Giving priority to districts that, as of June 30, 2016,

 

had lower general fund balances as a percentage of revenues.

 

     (b) Giving priority to districts that operate at least 1

 

school that has been identified by the department as either a

 

priority school or a focus school.

 

     (c) Ensuring that grant funding includes both rural and urban

 

districts.

 

     (5) The amount of a grant under this section to any 1 district

 

shall not exceed $750,000.00.

 

     (6) A grant payment under this section to a district shall be

 

used for necessary modifications to instructional facilities and

 

other nonrecurring costs of preparing for the operation of a year-

 

round instructional program as approved by the department.

 

     (7) A district receiving a grant under this section is not


required to provide more than the minimum number of days and hours

 

of pupil instruction prescribed under section 101, but shall spread

 

at least those minimum amounts of pupil instruction over the entire

 

year in each of its schools in which a year-round instructional

 

calendar is implemented. The district shall commit to providing the

 

year-round instructional calendar in each of those schools for at

 

least 3 school years.

 

     (8) For a district receiving a grant under this section,

 

excessive heat is considered to be a condition not within the

 

control of school authorities for the purpose of days or hours

 

being counted as days or hours of pupil instruction under section

 

101(4).

 

     (9) Notwithstanding section 17b, grant payments to districts

 

under this section shall be paid on a schedule determined by the

 

department.

 

     Sec. 31c. (1) from the funds appropriated in section 11, there

 

is allocated an amount not to exceed $1,000,000.00 for 2015-2016

 

$3,000,000.00 for 2016-2017 for programs intended to improve public

 

safety, reduce the number of youth involved in gang-related

 

activity, and increase high school graduation rates.

 

     (2) The department shall award grants to districts that form

 

partnerships with nonprofit organizations, law enforcement, and

 

other community resources to provide programs that divert young

 

adults from gang-related criminal activity.

 

     (3) Grants awarded under this section may include, but are not

 

limited to, grants for any of the following activities:

 

     (a) Employment training and placement programs.


     (b) Counseling services.

 

     (c) Assistance to program participants in accessing community

 

resources for continuing education, court advocacy, and health

 

care.

 

     (d) Outreach programs to educate participants and their

 

families.

 

     (4) Each grant recipient under this section shall partner with

 

a university to collect data necessary to evaluate the

 

effectiveness of programs in reducing violent crime and gang-

 

related activity in the community and provide a report on this

 

evaluation to the senate and house appropriations subcommittees on

 

school aid not later than December 1, 2017.

 

     Sec. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 for 2015-2016

 

2016-2017 for the purpose of making payments to districts and other

 

eligible entities under this section.

 

     (2) The amounts allocated from state sources under this

 

section shall be used to pay the amount necessary to reimburse

 

districts for 6.0127% of the necessary costs of the state mandated

 

portion of the school lunch programs provided by those districts.

 

The amount due to each district under this section shall be

 

computed by the department using the methods of calculation adopted

 

by the Michigan supreme court in the consolidated cases known as

 

Durant v State of Michigan, Michigan supreme court docket no.

 

104458-104492.

 

     (3) The payments made under this section include all state

 

payments made to districts so that each district receives at least


6.0127% of the necessary costs of operating the state mandated

 

portion of the school lunch program in a fiscal year.

 

     (4) The payments made under this section to districts and

 

other eligible entities that are not required under section 1272a

 

of the revised school code, MCL 380.1272a, to provide a school

 

lunch program shall be in an amount not to exceed $10.00 per

 

eligible pupil plus 5 cents for each free lunch and 2 cents for

 

each reduced price lunch provided, as determined by the department.

 

     (5) From the federal funds appropriated in section 11, there

 

is allocated for 2015-2016 2016-2017 all available federal funding,

 

estimated at $510,000,000.00 for the national school lunch program

 

and all available federal funding, estimated at $3,200,000.00 for

 

the emergency food assistance program.

 

     (6) Notwithstanding section 17b, payments to eligible entities

 

other than districts under this section shall be paid on a schedule

 

determined by the department.

 

     (7) In purchasing food for a school lunch program funded under

 

this section, preference shall be given to food that is grown or

 

produced by Michigan businesses if it is competitively priced and

 

of comparable quality.

 

     Sec. 31f. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $5,625,000.00 $2,500,000.00 for

 

2015-2016 and there is allocated an amount not to exceed

 

$2,500,000.00 for 2016-2017 for the purpose of making payments to

 

districts to reimburse for the cost of providing breakfast.

 

     (2) The funds allocated under this section for school

 

breakfast programs shall be made available to all eligible


applicant districts that meet all of the following criteria:

 

     (a) The district participates in the federal school breakfast

 

program and meets all standards as prescribed by 7 CFR parts 220

 

and 245.

 

     (b) Each breakfast eligible for payment meets the federal

 

standards described in subdivision (a).

 

     (3) The payment for a district under this section is at a per

 

meal rate equal to the lesser of the district's actual cost or 100%

 

of the statewide average cost of a breakfast served, as determined

 

and approved by the department, less federal reimbursement,

 

participant payments, and other state reimbursement. The statewide

 

average cost shall be determined by the department using costs as

 

reported in a manner approved by the department for the preceding

 

school year.

 

     (4) Notwithstanding section 17b, payments under this section

 

may be made pursuant to an agreement with the department.

 

     (5) In purchasing food for a school breakfast program funded

 

under this section, preference shall be given to food that is grown

 

or produced by Michigan businesses if it is competitively priced

 

and of comparable quality.

 

     Sec. 31h. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2015-2016 2016-

 

2017 for the purpose of providing funding to a district that

 

educates high school pupils from another district that voluntarily

 

closed its high school program in 2013. The funding under this

 

section is intended to be for the first second of 2 years, unless

 

it is determined that the federal elementary and secondary


education act allows federal title I funds that previously

 

supported the high school pupils in their resident district to

 

instead be provided to the educating district. Funding under this

 

section shall be used to support the additional costs of educating

 

high school pupils in a manner that is similar to the way title I

 

funds provided additional support to the education of those pupils