December 12, 2017, Introduced by Rep. Yaroch and referred to the Committee on Local Government.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 1225 and 1280c (MCL 380.1225 and 380.1280c),
section 1225 as amended by 2016 PA 192 and section 1280c as amended
by 2011 PA 8.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1225. (1) Subject to restrictions of this section, a
school board or intermediate school board may borrow money and
issue notes of the school district or intermediate school district
for the borrowed money to secure funds for school operations or to
pay previous loans obtained for school operations under this or any
other statute. The school board or intermediate school board shall
pledge money to be received by it from state school aid for the
payment of notes issued under this section. A pledge of state
school aid by a school district or intermediate school district for
the payment of notes issued pursuant to this section is valid and
binding from the time when the pledge is made. A pledge made
pursuant to this section for the benefit of the holders of notes or
for the benefit of others is perfected without delivery, recording,
or notice. Notes issued pursuant to this section are full faith and
credit obligations of the school district or intermediate school
district and are payable from tax levies or from unencumbered funds
of the school district or intermediate school district in event of
the unavailability or insufficiency of state school aid for any
reason.
(2) A school district or intermediate school district for
which an emergency manager or a financial management team has been
appointed pursuant to the local financial stability and choice act,
2012 PA 436, MCL 141.1541 to 141.1575, or a school district or
intermediate school district that has an approved deficit
elimination plan or an enhanced deficit elimination plan required
under section 102 of the state school aid act of 1979, MCL
388.1702, may enter into an agreement with the Michigan finance
authority in accordance with section 17a(4) of the state school aid
act of 1979, MCL 388.1617a, providing for the direct payment on
behalf of the school district or intermediate school district to
the Michigan finance authority, or to a trustee designated by the
Michigan finance authority, of state school aid pledged and to be
used for the sole purpose of paying the principal of and interest
on the notes issued pursuant to this section and secured by state
school aid.
(3)
Notes issued under this section shall become are due
not
later than 372 days after the date on which they are issued, except
as otherwise provided in this section. Notes issued within a fiscal
year
shall must not exceed 70% of the difference between the total
state aid funds apportioned to the school district or intermediate
school district for that fiscal year and the portion already
received or pledged, except secondary pledges made under section
1356.
(4) A school district or intermediate school district that is
not able to redeem its notes within 372 days after the date on
which the notes were issued may enter into a multi-year agreement
with a lending institution to repay its obligation. A repayment
agreement
shall must not be executed without the prior approval of
an authorized representative of the state board or, for notes sold
to the Michigan finance authority only, without the approval of an
authorized representative of the department of treasury.
(5) During the last 4 months of a fiscal year, notes may be
issued pledging state school aid for the next succeeding fiscal
year. Except as otherwise provided in this subsection, the notes
shall
must not exceed 50% of the state school aid apportioned
to
the school district or intermediate school district for the next
succeeding fiscal year or, if the apportionment has not been made,
50% of the apportionment for the then current fiscal year. The
notes
shall must mature not later than 372 days after the date of
issuance.
(6) Notes issued under this section are subject to the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
Failure of a school district or intermediate school district to
receive state school aid does not affect the validity or
enforceability of a note issued under this section.
(7) A school board or intermediate school board, including,
but not limited to, the school board of a community district, may
make more than 1 borrowing under this section during a school year.
(8) In addition to other powers under this section, with the
approval of the state treasurer, a school board or intermediate
school board, including, but not limited to, the school board of a
community district, may obtain a line of credit to secure funds for
school operations or to pay previous loans obtained for school
operations under this or any other statute. The school board or
intermediate school board shall pledge not more than 30% of the
state school aid apportioned to the school district or intermediate
school district for that fiscal year for repayment of funds
received pursuant to a line of credit obtained under this
subsection. However, the school board or intermediate school board
shall not borrow against the line of credit an amount greater than
the difference, as of the date of the borrowing, between the total
state school aid funds apportioned to the school district or
intermediate school district for that fiscal year and the portion
already received or pledged, except secondary pledges made under
section 1356. To obtain approval for obtaining a line of credit
under this subsection, a school board or intermediate school board
shall apply to the state treasurer in the form and manner
prescribed by the state treasurer, and shall provide information as
requested by the state treasurer for evaluating the application.
The state treasurer shall approve or disapprove an application and
notify the school board or intermediate school board within 20
business days after receiving a proper application. If the state
treasurer disapproves an application, the state treasurer shall
include the reasons for disapproval in the notification to the
school board or intermediate school board.
Sec. 1280c. (1) Beginning in 2010, not later than September 1
of each year, the superintendent of public instruction shall
publish a list identifying the public schools in this state that
the department has determined to be among the lowest achieving 5%
of all public schools in this state, as defined for the purposes of
the federal incentive grant program created under sections 14005
and 14006 of title XIV of the American recovery and reinvestment
act of 2009, Public Law 111-5.
(2) Except as otherwise provided in subsection (16), the
superintendent of public instruction shall issue an order placing
each public school that is included on the list under subsection
(1) under the supervision of the state school reform/redesign
officer described in subsection (9). Within 90 days after a public
school is placed under the supervision of the state school
reform/redesign officer under this section, the school board or
board of directors operating the public school shall submit a
redesign plan to the state school reform/redesign officer. For a
public
school operated by a school board, the redesign plan shall
must be developed with input from the local teacher bargaining unit
and
the local superintendent. The redesign plan shall must require
implementation of 1 of the 4 school intervention models that are
provided for the lowest achieving schools under the federal
incentive grant program created under sections 14005 and 14006 of
title XIV of the American recovery and reinvestment act of 2009,
Public Law 111-5, known as the "race to the top" grant program.
These models are the turnaround model, restart model, school
closure,
and transformation model. The redesign plan shall must
include an executed addendum to each applicable collective
bargaining agreement in effect for the public school that meets the
requirements of subsection (8).
(3) Within 30 days after receipt of a redesign plan for a
public school under subsection (2), the state school
reform/redesign officer shall issue an order approving,
disapproving, or making changes to the redesign plan. If the order
makes changes to the redesign plan, the school board or board of
directors has 30 days after the order to change the redesign plan
to incorporate those changes into the redesign plan and resubmit it
to the state school reform/redesign officer for approval or
disapproval.
(4) The state school reform/redesign officer shall not
disapprove a redesign plan that includes all of the elements
required under federal law for the school intervention model
included in the redesign plan. A school board or board of directors
may appeal disapproval of a redesign plan on this basis to the
superintendent of public instruction. The decision of the
superintendent of public instruction on the appeal is final.
(5) If the state school reform/redesign officer approves a
redesign plan under this section, the school board or board of
directors shall implement the redesign plan for the public school
beginning with the beginning of the next school year that begins
after the approval. The school board or board of directors shall
regularly submit monitoring reports to the state school
reform/redesign officer on the implementation and results of the
plan in the form and manner, and according to a schedule, as
determined by the state school reform/redesign officer.
(6) The state school reform/redesign school district is
created. The state school reform/redesign school district is a
school district for the purposes of section 11 of article IX of the
state constitution of 1963 and for receiving state school aid under
the state school aid act of 1979 and is subject to the leadership
and general supervision of the state board over all public
education under section 3 of article VIII of the state constitution
of 1963. The state school reform/redesign school district is a body
corporate and is a governmental agency. Except as otherwise
provided in subsection (7), if the state school reform/redesign
officer does not approve the redesign plan, or if the state school
reform/redesign officer determines that the redesign plan is not
achieving satisfactory results, the state school reform/redesign
officer shall issue an order placing the public school in the state
school reform/redesign school district, imposing for the public
school implementation of 1 of the 4 school intervention models
described in subsection (2) beginning with the beginning of the
next school year, and imposing an addendum to each applicable
collective bargaining agreement in effect for the public school as
necessary to implement the school intervention model and that meets
the requirements of subsection (8). All of the following apply to
the state school reform/redesign school district:
(a)
The state school reform/redesign school district shall
consist
consists of schools that are placed in the state school
reform/redesign school district.
(b) The state school reform/redesign officer shall act as the
superintendent of the state school reform/redesign school district.
With respect to schools placed in the state school reform/redesign
school district, the state school reform/redesign officer has all
of the powers and duties described in this section; all of the
provisions of this act that would otherwise apply to the school
board that previously operated a school placed in the state school
reform/redesign school district apply to the state school
reform/redesign officer with respect to that school, except those
relating to taxation or borrowing; except as otherwise provided in
this section, the state school reform/redesign officer may exercise
all the powers and duties otherwise vested by law in the school
board that previously operated a school placed in the state school
reform/redesign school district and in its officers, except those
relating to taxation or borrowing, and may exercise all additional
powers and duties provided under this section; and, except as
otherwise provided in this section, the state school
reform/redesign officer accedes to all the rights, duties, and
obligations of the school board with respect to that school. These
powers, rights, duties, and obligations include, but are not
limited to, all of the following:
(i) Authority over the expenditure of all funds attributable
to pupils at that school, including that portion of proceeds from
bonded indebtedness and other funds dedicated to capital projects
that would otherwise be apportioned to that school by the school
board that previously operated the school according to the terms of
the bond issue or financing documents.
(ii) Subject to subsection (8), rights and obligations under
collective bargaining agreements and employment contracts entered
into by the school board for employees at the school.
(iii) Rights to prosecute and defend litigation.
(iv) Rights and obligations under statute, rule, and common
law.
(v) Authority to delegate any of the state school
reform/redesign officer's powers and duties to 1 or more designees,
with proper supervision by the state school reform/redesign
officer.
(vi) Power to terminate any contract or portion of a contract
entered into by the school board that applies to that school.
However, this subsection does not allow any termination or
diminishment of obligations to pay debt service on legally
authorized bonds and does not allow a collective bargaining
agreement to be affected except as provided under subsection (8). A
contract terminated by the state school reform/redesign officer
under this subsection is void.
(7) If the state school reform/redesign officer determines
that better educational results are likely to be achieved by
appointing a chief executive officer to take control of multiple
public schools, the state school reform/redesign officer may make a
recommendation to the superintendent of public instruction for
appointment of a chief executive officer to take control over those
multiple schools. If the superintendent of public instruction
appoints a chief executive officer to take control of multiple
public schools under this subsection, the chief executive officer
shall impose for those public schools implementation of 1 of the 4
school intervention models described in subsection (2) and impose
an addendum to each applicable collective bargaining agreement in
effect for those public schools as necessary to implement the
school intervention model and that meets the requirements of
subsection (8). With respect to those public schools, the chief
executive officer has all of the same powers and duties that the
state school reform/redesign officer has for public schools placed
in the state school reform/redesign school district under
subsection (6). The chief executive officer shall regularly submit
monitoring reports to the state school reform/redesign officer on
the implementation and results of the intervention model in the
form and manner, and according to a schedule, as determined by the
state school reform/redesign officer. The chief executive officer
shall exercise any other powers or duties over the public schools
as may be directed by the superintendent of public instruction.
(8) An addendum to a collective bargaining agreement under
this
section shall must provide for any of the following that are
necessary for the applicable school intervention model to be
implemented at each affected public school:
(a) That any contractual or other seniority system that would
otherwise
be applicable shall does not apply at the public school.
This subdivision does not allow unilateral changes in pay scales or
benefits.
(b) That any contractual or other work rules that are
impediments
to implementing the redesign plan shall do not apply at
the public school. This subdivision does not allow unilateral
changes in pay scales or benefits.
(c) That the state school reform/redesign officer shall direct
the expenditure of all funds attributable to pupils at the public
school and the principal or other school leader designated by the
state school reform/redesign officer shall have full autonomy and
control over curriculum and discretionary spending at the public
school.
(9) The superintendent of public instruction shall hire a
state school reform/redesign officer to carry out the functions
under this section and as otherwise prescribed by law. The state
school
reform/redesign officer shall must
be chosen solely on the
basis of his or her competence and experience in educational reform
and redesign. The state school reform/redesign officer is exempt
from civil service. The state school reform/redesign officer is
responsible directly to the superintendent of public instruction to
ensure that the purposes of this section are carried out, and
accordingly the position of state school reform/redesign officer
should be a position within the department that is exempt from the
classified state civil service. The department shall request that
the civil service commission establish the position of state school
reform/redesign officer as a position that is exempt from the
classified state civil service.
(10) If the state school reform/redesign officer imposes the
restart model for a public school in the state school
reform/redesign school district, or a chief executive officer under
subsection (7) imposes the restart model for multiple public
schools under that subsection, all of the following apply:
(a) The state school reform/redesign officer or chief
executive officer shall enter into an agreement with an educational
management organization to manage and operate the public school or
schools. The state school reform/redesign officer or chief
executive officer shall provide sufficient oversight to ensure that
the public school or schools will be operated according to all of
the requirements for a restart model.
(b) There shall be considered to be no collective bargaining
agreement in effect that applies to employees working at the public
school or schools under this model at the time of imposition of the
model.
(11) If the state school reform/redesign officer imposes the
turnaround model for a public school in the state school
reform/redesign school district, or a chief executive officer under
subsection (7) imposes the turnaround model for multiple public
schools under that subsection, all of the following apply:
(a) A collective bargaining agreement that applies to
employees working at the public school or schools under this model
at the time of imposition of the model, and any successor
collective bargaining agreement, continues to apply with respect to
pay scales and benefits.
(b) Subject to any addendum to the collective bargaining
agreement that applies to the public school or schools, an employee
who is working at the public school or schools and who was
previously employed in the same school district that previously
operated that school shall continue to retain and accrue seniority
rights in that school district according to the collective
bargaining agreement that applies to employees of that school
district.
(12) If more than 9 public schools operated by a school
district are on the list under subsection (1), the transformation
model may not be implemented for more than 50% of those schools.
(13) If the state school reform/redesign officer determines
that a public school that is subject to the measures under
subsection (6) or (7) has made significant improvement in pupil
achievement and should be released from the measures that have been
imposed under subsection (6) or (7), the state school
reform/redesign officer may recommend this to the superintendent of
public instruction. If the superintendent of public instruction
agrees with the determination and recommendation, the
superintendent of public instruction may release the public school
from the measures that have been imposed under subsection (6) or
(7).
(14) At least annually, the state school reform/redesign
officer shall submit a report to the standing committees of the
senate and house of representatives having jurisdiction over
education legislation on the progress being made in improving pupil
proficiency due to the measures under this section.
(15)
As soon as practicable after the federal department of
education
Department of Education has adopted the final work rules
and formula for identifying the lowest achieving 5% of all public
schools in this state for the purposes of the federal incentive
grant program created under sections 14005 and 14006 of title XIV
of the American recovery and reinvestment act of 2009, Public Law
111-5, known as the "race to the top" grant program, the department
shall post all of the following on its website:
(a) The federal work rules and formula.
(b) A list of the public schools in this state that have been
identified for these purposes as being among the lowest achieving
5% of all public schools in this state. The department shall update
this list as it considers appropriate.
(16) If a school that is included on the list under subsection
(1) is operated by a school district in which an emergency manager
or
a financial management team is in place
under the local
government
and school district fiscal accountability act, local
financial stability and choice act, 2012 PA 436, MCL 141.1541 to
141.1575, then the superintendent of public instruction shall not
issue an order placing the school under the supervision of the
state school reform/redesign officer.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5337 (request no.
03826'17) of the 99th Legislature is enacted into law.