SB-0801, As Passed Senate, May 4, 2016

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 801

 

(As amended May 4, 2016)

 

 

 

 

 

 

 

 

     <<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,

 


Senate Bill No. 801 as amended May 4, 2016

 

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,


Senate Bill No. 801 as amended May 4, 2016

 

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.>>

 

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.

 

     (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 .75 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 .25 times the final audited count

 

from the supplemental count day for the immediately preceding

 

school year. However, for a district that is a community district


in its first year of operation, "membership" means the sum of the

 

product of .75 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 .25 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.

 

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. 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 .75 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 .25 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) A nonpublic part-time pupil enrolled in grades 1 to 12 in

 

accordance with section 166b shall be counted for no more than 0.5

 

of a full-time equated membership.


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

 

in membership in the community district.

 

     (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, 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) or (c), 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.

 

     (c) For pupils enrolled in the youth challenge program

 

maintaining a residential 11-month program, the fourth Wednesday in

 

August.

 

     (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


Senate Bill No. 801 as amended May 4, 2016

 

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 from the state school aid fund and the sum of

 

$45,900,000.00 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 <<$12,062,479,500.00>> from the state school aid fund, the

 

sum of $226,000,000.00 from the general fund, and an amount not to

 

exceed $100.00 from the drinking water reserve emergency fund. In

 

addition, all other available federal funds are appropriated each

 

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

 

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 2016-2017 an amount not to exceed

 

$2,000,000.00 $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. 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. In addition, from the funding

 

appropriated in section 11, there is allocated $100.00 from the

 

drinking 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 $950,000.00 to

 

augment staff for the purpose of providing additional early

 

childhood services and 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 on 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 early childhood 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 $6,400,000.00 to an intermediate district

 

described in subsection (3) to provide state early on services for

 

children described in subsection (1) who are less than 4 years of

 

age as of September 1, 2016. The department shall administer the

 

state early on services consistent with the definitions of services


contained in the early on Michigan state plan, except that all

 

children described in subsection (1) who are less than 4 years of

 

age as of September 1, 2016 shall be 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 an intermediate district

 

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, statewide standard reporting

 

requirements for education data approved by the department in

 

conjunction with the center shall be implemented. 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 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.

 

     (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 20f(6).

 

     (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) and except as otherwise

 

provided in this subsection, for a district that is formed or

 

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


Senate Bill No. 801 as amended May 4, 2016

 

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. For

 

a district that is formed or reconfigured after June 1, 2016 by

 

consolidation of 2 or more districts or by annexation and that

 

received a grant under section 22g for reimbursement of transition

 

costs, for the first 2 fiscal years after consolidation or

 

annexation, the resulting district's foundation allowance under

 

this section beginning after the effective date of the

 

consolidation or annexation shall be 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 $300.00. Beginning with the third

 

fiscal year that starts after the consolidation or annexation, the

 

resulting district's foundation allowance shall be calculated in

 

the same manner as provided under this subsection for a district

 

that is formed or reconfigured after June 1, 2002 and that did not

 

receive a grant under section 22g. <<

 

 


Senate Bill No. 801 as amended May 4, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                               >>

 

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 20f(6).

 

     (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 $27,000,000.00

 

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) The funding for this subsection is from the allocation

 

under subsection (1). A district is eligible for funding under this

 

subsection if it had a foundation allowance greater than $8,169.00

 

for the 2015-2016 fiscal year. The amount allocated to each

 

eligible district under this subsection shall be determined as

 

follows:

 

     (a) Subject to subdivision (b), the per-pupil allocation to

 

each district under this subsection 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 an eligible district's foundation allowance.

 

     (b) 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 subdivision (a), the total payment to the

 

district calculated under this subsection shall be the product of

 

the per-pupil allocation under subdivision (a) 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

 

subdivision (a), the total payment to the district calculated under

 

this subsection shall be the product of the difference between the

 

sum of the foundation allowance under section 20 plus the per-pupil

 

allocation under subdivision (a) 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 subdivision (a), there is no payment calculated

 

under this subsection for the district.

 

     (7) (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 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 used solely for paying outstanding debt of a

 

dissolved school district and that the payment be made from,

 

considered to be a part of, and counted against 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. 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. 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 as being among the lowest achieving 5% of all public

 

schools in this state.

 

     (2) Districts are 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


Senate Bill No. 801 as amended May 4, 2016

 

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 agrees to appear in person before the house

 

and senate appropriations subcommittees responsible for school aid

 

and provide a quarterly report concerning the district's use of

 

funds to increase pupil achievement.

<<(d) 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 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).

 

     (4) From the allocation in subsection (1), in addition to the

 

supplemental payments calculated under subsection (3), 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.

 

     (5) At least twice a year, the state school reform/redesign

 

officer shall provide a report on the activities of the state

 

school reform office to the senate and house appropriations

 

subcommittees responsible for the school aid and department

 

budgets.

 

     (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.To be eligible to receive funding for a pupil

 

enrolled in a virtual course under 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 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 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 requirements 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 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.


     (8) (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.

 

     (9) (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.

 

     (10) (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 enrolled in

 

more than 2 virtual courses in an academic term, semester, or

 

trimester taken at a location other than a school facility.

 

     (11) (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.

 

     (12) (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

 

department shall establish the minimum requirements to count the

 

pupil in pupil membership.

 

     (13) (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. 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 for 2015-2016

 

$5,202,300,000.00 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 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. $3,639,485,800.00 from

 

the state school aid fund money appropriated in section 11, and an

 

amount not to exceed $180,414,200.00 from the general fund money

 

appropriated in section 11. 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 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, 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 $6,500,000.00 for competitive assistance grants to

 

districts and intermediate districts, as provided under this

 

section.

 

     (2) From the amount allocated under subsection (1), there is

 

allocated for 2016-2017 an amount not to exceed $1,000,000.00 for

 

grants to districts or intermediate districts for the cost of a


feasibility study exploring the possibility of dissolution,

 

consolidation, or annexation.

 

     (3) From the amount allocated under subsection (1), there is

 

allocated for 2016-2017 an amount not to exceed $3,000,000.00 for

 

grants to districts or intermediate districts that meet at least 1

 

of the following:

 

     (a) The district or intermediate district has contracted for a

 

feasibility study exploring dissolution, consolidation, or

 

annexation and the feasibility study indicates that dissolution,

 

consolidation, or annexation would be in the best interests of the

 

districts or intermediate districts involved.

 

     (b) The state treasurer has declared that the potential for

 

fiscal stress exists for the district or intermediate district, as

 

provided under section 1219(3) of the revised school code, MCL

 

380.1219.

 

     (c) The state treasurer has determined that the district or

 

intermediate district is subject to rapidly deteriorating financial

 

circumstances and the state treasurer has required the district or

 

intermediate district to submit an enhanced deficit elimination

 

plan to the department of treasury under section 1220(5) of the

 

revised school code, MCL 380.1220.

 

     (4) (2) Funds received under this section subsection (3) may

 

be used for reimbursement of transition costs associated with the

 

dissolution, consolidation, or annexation of districts or

 

intermediate districts. Grant funding under subsection (3) 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.

 

     (5) From the amount allocated under subsection (1), 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.

 

     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 for 2015-2016

 

$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

 

$1,732,400.00 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.

 

     (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 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, the educating

 

district or intermediate district 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 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 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 in which the pupil is enrolled

 

and is in attendance so that the district's or intermediate

 

district's membership is increased to allow the district or


intermediate district 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 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 multiplied by the foundation allowance or

 

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

 

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).

 

     (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, 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 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

 

that received an adjustment in its membership calculation under

 

subsection (3), if any, and the educating district or intermediate

 

district 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 center shall determine the number of pupils who did

 

not reside in this state as of the 2015-2016 2016-2017 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 2016-2017 supplemental count day. The center

 

shall further determine the number of pupils who were counted in

 

membership for the 2015-2016 2016-2017 pupil membership count day

 

but who left this state before the 2015-2016 2016-2017 supplemental

 

count day. 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" means the


district or intermediate district 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.

 

     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 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 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 for 2015-2016

 

$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 for 2015-2016

 

$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, plus the amount of a district's per-pupil

 

allocation under section 20f(6), 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 20f(6), 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 district that is a community district

 

and that first enrolled 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, in

 

the community district, or in 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 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, the community district's, or the education

 

achievement system'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. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 for 2015-2016 for

 

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 for 2015-2016

 

$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

 

when they were educated in their resident district high school

 

program before its closure in 2013.

 

     Sec. 31j. (1) From the general fund money appropriated in

 

section 11, there is allocated an amount not to exceed $500,000.00

 

for 2016-2017 for a pilot project to support districts in the

 

purchase of locally grown fruits and vegetables as described in

 

this section.

 

     (2) The department shall provide funding to prosperity regions

 

2, 4, and 6 for the pilot project described under this section.

 

From the funding identified in subsection (1), funding retained by

 

the prosperity regions for administration of the project shall not

 

exceed 10%, and funding retained by the department for

 

administration shall not exceed 6%.

 

     (3) The department shall develop and implement a competitive


grant program for districts within the identified prosperity

 

regions to assist in paying for the costs incurred by the district

 

to purchase or increase purchases of whole or minimally processed

 

fruits, vegetables, and legumes grown in this state. The maximum

 

amount that may be drawn down on a grant to a district shall be

 

based on the number of meals served by the school district during

 

the previous school year under the Richard B. Russell national

 

school lunch act, 42 USC 1751 to 1769. The department shall

 

collaborate with the Michigan department of agriculture and rural

 

development to provide training to newly participating schools and

 

electronic information on Michigan agriculture.

 

     (4) The goals of the pilot project include improving daily

 

nutrition and eating habits for children through the school

 

settings while investing in Michigan's agricultural and related

 

food business economy.

 

     (5) A district that receives a grant under this section shall

 

use those funds for the costs incurred by the school district to

 

purchase whole or minimally processed fruits, vegetables, and

 

legumes that meet all of the following:

 

     (a) Are purchased on or after the date the district received

 

notification from the department of the amount to be distributed to

 

the district under this subsection, including purchases made to

 

launch meals in September 2016 for the 2016-2017 school year.

 

     (b) Are grown in this state and, if MINIMALLY processed, are

 

also processed in this state.

 

     (c) Are used for meals that are served as part of the United

 

States Department of Agriculture's child nutrition programs.


     (6) For Michigan-grown fruits, vegetables, and legumes that

 

satisfy the requirements of subsection (5), matching reimbursements

 

shall be made in an amount not to exceed 10 cents for every school

 

meal that is served as part of the United States Department of

 

Agriculture's child nutrition programs and that uses Michigan-grown

 

fruits, vegetables, and legumes.

 

     (7) A district that receives a grant for reimbursement under

 

this section shall use the grant to purchase whole or minimally

 

processed fruits, vegetables, and legumes that are grown in this

 

state and, if minimally processed, are also processed in this

 

state.

 

     (8) In awarding grants under this section, the department

 

shall work in conjunction with prosperity region offices, in

 

consultation with Michigan-based farm to school resource

 

organizations, to develop scoring criteria that assess an

 

applicant's ability to procure Michigan-grown products, prepare and

 

menu Michigan-grown products, promote and market Michigan-grown

 

products, and submit letters of intent from districts on plans for

 

educational activities that promote the goals of the program.

 

     (9) The department shall give preference to districts that

 

propose educational activities that meet 1 or more of the

 

following: promote healthy food activities; have clear educational

 

objectives; involve parents or the community; and connect to a

 

school's farm-to-school procurement activities.

 

     (10) In awarding grants, the department shall also consider

 

all of the following: the percentage of children who qualify for

 

free or reduced price school meals under the Richard B. Russell


national school lunch act, 42 USC 1751 to 1769; the variety of

 

school sizes and geographic locations within the identified

 

prosperity regions; and existing or future collaboration

 

opportunities between more than 1 district in a prosperity region.

 

     (11) As a condition of receiving a grant under this section, a

 

district shall provide or direct its vendors to provide to

 

prosperity region offices copies of monthly receipts that show the

 

quantity of different Michigan-grown fruits, vegetables, and

 

legumes purchased, the amount of money spent on each of these

 

products, and the name and Michigan location of the farm that grew

 

the products. The district shall also provide to the prosperity

 

region monthly lunch numbers and lunch participation rates, and

 

calendars or monthly menus noting when and how Michigan-grown

 

products were used in meals. The district and school food service

 

director or directors also shall agree to respond to brief online

 

surveys and to provide a report that shows the percentage

 

relationship of Michigan spending compared to total food spending.

 

Not later than March 1, 2017, each prosperity region office shall

 

submit a report to the department on expected outcomes and related

 

measurements for economic development and children's nutrition and

 

readiness to learn based on progress so far. The report shall

 

include at least all of the following:

 

     (a) The extent to which farmers and related businesses,

 

including distributors and processors, see an increase in market

 

opportunities and income generation through sales of Michigan or

 

local products to districts. All of the following apply for

 

purposes of this subdivision:


     (i) The data used to determine the amount of this increase

 

shall be the total dollar amount of Michigan or local fruits,

 

vegetables, and legumes purchased by schools, along with the number

 

of different types of products purchased; school food purchasing

 

trends identified along with products that are of new and growing

 

interest among food service directors; the number of businesses

 

impacted; and the percentage of total food budget spent on

 

Michigan-grown fruits, vegetables, and legumes.

 

     (ii) The prosperity region office shall use purchasing data

 

collected for the project and surveys of school food service

 

directors on the impact and success of the project as the source

 

for the data described in subparagraph (i).

 

     (b) The ability to which pupils can access a variety of

 

healthy Michigan-grown foods through schools and increase their

 

consumption of those foods. All of the following apply for purposes

 

of this subdivision:

 

     (i) The data used to determine whether this subparagraph is

 

met shall be the number of pupils exposed to Michigan-grown fruits,

 

vegetables, and legumes at schools; the variety of products served;

 

new items taste-tested or placed on menus; and the increase in

 

pupil willingness to try new local, healthy foods.

 

     (ii) The prosperity region office shall use purchasing data

 

collected for the project, meal count and enrollment numbers,

 

school menu calendars, and surveys of school food service directors

 

as the source for the data described in subparagraph (i).

 

     (12) The department shall compile the reports provided by

 

prosperity region offices under subsection (11) into 1 legislative


report. The department shall provide this report not later than

 

April 1, 2017 to the house and senate subcommittees responsible for

 

school aid, the house and senate fiscal agencies, and the state

 

budget director.

 

     Sec. 32d. (1) From the funds appropriated in section 11, there

 

is allocated to eligible intermediate districts and consortia of

 

intermediate districts for great start readiness programs an amount

 

not to exceed $243,600,000.00 for 2015-2016. 2016-2017. Funds

 

allocated under this section for great start readiness programs

 

shall be used to provide part-day, school-day, or GSRP/head start

 

blended comprehensive free compensatory classroom programs designed

 

to improve the readiness and subsequent achievement of

 

educationally disadvantaged children who meet the participant

 

eligibility and prioritization guidelines as defined by the

 

department. For a child to be eligible to participate in a program

 

under this section, the child shall be at least 4, but less than 5,

 

years of age as of the date specified for determining a child's

 

eligibility to attend school under section 1147 of the revised

 

school code, MCL 380.1147.September 1 of the school year in which

 

the program is offered and shall meet those eligibility and

 

prioritization guidelines.

 

     (2) Funds allocated under subsection (1) shall be allocated to

 

intermediate districts or consortia of intermediate districts based

 

on the formula in section 39. An intermediate district or

 

consortium of intermediate districts receiving funding under this

 

section shall act as the fiduciary for the great start readiness

 

programs. In order to be eligible to receive funds allocated under


this subsection from an intermediate district or consortium of

 

intermediate districts, a district, a consortium of districts, or a

 

public or private for-profit or nonprofit legal entity or agency

 

shall comply with this section and section 39.

 

     (3) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2015-2016 2016-

 

2017 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in great start readiness

 

programs.

 

     (4) To be eligible for funding under this section, a program

 

shall prepare children for success in school through comprehensive

 

part-day, school-day, or GSRP/head start blended programs that

 

contain all of the following program components, as determined by

 

the department:

 

     (a) Participation in a collaborative recruitment and

 

enrollment process to assure that each child is enrolled in the

 

program most appropriate to his or her needs and to maximize the

 

use of federal, state, and local funds.

 

     (b) An age-appropriate educational curriculum that is in

 

compliance with the early childhood standards of quality for

 

prekindergarten children adopted by the state board.

 

     (c) Nutritional services for all program participants

 

supported by federal, state, and local resources as applicable.

 

     (d) Physical and dental health and developmental screening

 

services for all program participants.

 

     (e) Referral services for families of program participants to


community social service agencies, including mental health

 

services, as appropriate.

 

     (f) Active and continuous involvement of the parents or

 

guardians of the program participants.

 

     (g) A plan to conduct and report annual great start readiness

 

program evaluations and continuous improvement plans using criteria

 

approved by the department.

 

     (h) Participation in a school readiness advisory committee

 

convened as a workgroup of the great start collaborative that

 

provides for the involvement of classroom teachers, parents or

 

guardians of program participants, and community, volunteer, and

 

social service agencies and organizations, as appropriate. The

 

advisory committee annually shall review and make recommendations

 

regarding the program components listed in this subsection. The

 

advisory committee also shall make recommendations to the great

 

start collaborative regarding other community services designed to

 

improve all children's school readiness.

 

     (i) The ongoing articulation of the kindergarten and first

 

grade programs offered by the program provider.

 

     (j) Participation in this state's great start to quality

 

process with a rating of at least 3 stars.

 

     (5) An application for funding under this section shall

 

provide for the following, in a form and manner determined by the

 

department:

 

     (a) Ensure compliance with all program components described in

 

subsection (4).

 

     (b) Except as otherwise provided in this subdivision, ensure


that at least 90% of the children participating in an eligible

 

great start readiness program for whom the intermediate district is

 

receiving funds under this section are children who live with

 

families with a household income that is equal to or less than 250%

 

of the federal poverty level. If the intermediate district

 

determines that all eligible children are being served and that

 

there are no children on the waiting list under section 39(1)(d)

 

who live with families with a household income that is equal to or

 

less than 250% of the federal poverty level, the intermediate

 

district may then enroll children who live with families with a

 

household income that is equal to or less than 300% of the federal

 

poverty level. The enrollment process shall consider income and

 

risk factors, such that children determined with higher need are

 

enrolled before children with lesser need. For purposes of this

 

subdivision, all age-eligible children served in foster care or who

 

are experiencing homelessness or who have individualized education

 

plans recommending placement in an inclusive preschool setting

 

shall be considered to live with families with household income

 

equal to or less than 250% of the federal poverty level regardless

 

of actual family income and shall be prioritized for enrollment

 

within the lowest quintile.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. A lead teacher must

 

have a valid teaching certificate with an early childhood (ZA or

 

ZS) endorsement or a bachelor's or higher degree in child

 

development or early child development childhood education with


specialization in preschool teaching. However, if an applicant

 

demonstrates to the department that it is unable to fully comply

 

with this subparagraph after making reasonable efforts to comply,

 

teachers who have significant but incomplete training in early

 

childhood education or child development may be used if the

 

applicant provides to the department, and the department approves,

 

a plan for each teacher to come into compliance with the standards

 

in this subparagraph. A teacher's compliance plan must be completed

 

within 2 years of the date of employment. Progress toward

 

completion of the compliance plan shall consist of at least 2

 

courses per calendar year.

 

     (ii) Paraprofessionals possessing proper training in early

 

childhood development, education, including an associate's degree

 

in early childhood education or child development or the

 

equivalent, or a child development associate (CDA) credential.

 

However, if an applicant demonstrates to the department that it is

 

unable to fully comply with this subparagraph after making

 

reasonable efforts to comply, the applicant may use

 

paraprofessionals who have completed at least 1 course that earns

 

college credit in early childhood education or child development if

 

the applicant provides to the department, and the department

 

approves, a plan for each paraprofessional to come into compliance

 

with the standards in this subparagraph. A paraprofessional's

 

compliance plan must be completed within 2 years of the date of

 

employment. Progress toward completion of the compliance plan shall

 

consist of at least 2 courses or 60 clock hours of training per

 

calendar year.


     (d) Include a program budget that contains only those costs

 

that are not reimbursed or reimbursable by federal funding, that

 

are clearly and directly attributable to the great start readiness

 

program, and that would not be incurred if the program were not

 

being offered. Eligible costs include transportation costs. The

 

program budget shall indicate the extent to which these funds will

 

supplement other federal, state, local, or private funds. Funds

 

received under this section shall not be used to supplant any

 

federal funds received by the applicant to serve children eligible

 

for a federally funded preschool program that has the capacity to

 

serve those children.

 

     (6) For a grant recipient that enrolls pupils in a school-day

 

program funded under this section, each child enrolled in the

 

school-day program shall be counted as 2 children served by the

 

program described in section 39 for purposes of determining the

 

number of children to be served and for determining the amount of

 

the grant award. A grant award shall not be increased solely on the

 

basis of providing a school-day program.

 

     (7) For a grant recipient that enrolls pupils in a GSRP/head

 

start blended program, the grant recipient shall ensure that all

 

head start and GSRP policies and regulations are applied to the

 

blended slots, with adherence to the highest standard from either

 

program, to the extent allowable under federal law.

 

     (8) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall designate an

 

early childhood coordinator, and may provide services directly or

 

may contract with 1 or more districts or public or private for-


profit or nonprofit providers that meet all requirements of

 

subsection (4).subsections (4) and (5).

 

     (9) Funds received under this section may be retained for

 

administrative services as follows:

 

     (a) For the portion of the total grant amount for which

 

services are provided directly by an intermediate district or

 

consortium of intermediate districts, the intermediate district or

 

consortium of intermediate districts may retain an amount equal to

 

not more than 7% of that portion of the grant amount.

 

     (b) For the portion of the total grant amount for which

 

services are contracted, the intermediate district or consortium of

 

intermediate districts receiving the grant may retain an amount

 

equal to not more than 4% of that portion of the grant amount and

 

the subrecipients engaged by the intermediate district to provide

 

program services may retain for administrative services an amount

 

equal to not more than 4% of that portion of the grant amount.

 

     (9) An intermediate district or consortium of intermediate

 

districts may retain for administrative services provided by the

 

intermediate district or consortium of intermediate districts an

 

amount not to exceed 4% of the grant amount. Expenses incurred by

 

subrecipients engaged by the intermediate district or consortium of

 

intermediate districts for directly running portions of the program

 

shall be considered program costs or a contracted program fee for