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DRAFT 1 07/16/2015

CONFIDENTIAL
ADVISORY AND PRELIMINARY TO A FINAL DETERMINATION
(School Empowerment Zones)

DRAFT BILL No. ____

DRAFT BILL No. _____


________ ____, 2015, Introduced by Rep./Sen. _______________ and referred to the Committee on
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A bill to amend 1976 PA 451, entitled


"The revised school code,"
by amending sections 4, 5, 7, 11a, 502, 504, 507, 522, 524, 528,
552, 556, and 561 of the revised school code, (MCL 380.3, 380.4,
380.5, 380.7, 380.11a, 380.502, 380.504, 380.507, 380.522, 380.524,
380.528, 380.552, 380.556, 380.561, sections 4 and 5 as amended by

DRAFT BILL No. ____

2011 PA 232, section 7 as amended by 2007 PA 45, section 11a as


amended by 2010 PA 91, sections 502, 504, 507, 522, 524, 528, 556,
and 561 as amended by 2011 PA 277, section 552 as amended by 2012
PA 129, and by adding part 7C.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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Sec. 4. (1) "EDUCATION DISTRICT" MEANS A SCHOOL DISTRICT


ORGANIZED UNDER PART 2A.

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(2) "EDUCATION MANAGER" MEANS AN EDUCATION MANAGER APPOINTED


UNDER SECTION ___.
(3) (1) "Educational media center" means a program operated by

an intermediate school district and approved by the state board

SUPERINTENDENT OF PUBLIC INSTRUCTION that provides services to

local school districts or constituent districts under section 671.

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(4) "EMPOWERED DISTRICT" MEANS AN EDUCATION DISTRICT OR A


SCHOOL DISTRICT DEFINED UNDER PART 7C.
(5) "EMPOWERMENT ZONE" MEANS A SCHOOL EMPOWERMENT ZONE
ESTABLISHED UNDER PART 7C.
(6) "EMPOWERMENT ZONE SCHOOL" MEANS A PUBLIC SCHOOL BUILDING
LOCATED WITHIN AN EMPOWERMENT ZONE.
(7) "EMPOWERMENT ZONE SCHOOL BOARD" MEANS THE BOARD OR BOARD

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OF DIRECTORS OF A PUBLIC SCHOOL THAT OCCUPIES A SCHOOL BUILDING

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LOCATED WITHIN A SCHOOL EMPOWERMENT ZONE.

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(8) "HIGH-PERFORMING SCHOOL" MEANS A PUBLIC SCHOOL BUILDING


THAT SATISFIES ALL OF THE FOLLOWING:

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(i) IS LOCATED IN AN EMPOWERMENT ZONE.

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(ii) FOR A BUILDING THAT INCLUDES PUPILS IN SOME CONFIGURATION

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OF GRADES BETWEEN KINDERGARTEN AND 12TH GRADE, 80 PERCENT OR MORE

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OF THE PUPILS RECEIVED A SCORE OF PROFICIENT OR BETTER ON THE

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MICHIGAN STUDENT TEST OF EDUCATIONAL PROGRESS (M-STEP) MATHEMATICS

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AND READING TESTS OR ANY SUCCESSOR STATE ASSESSMENT.

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(iii) FOR A BUILDING THAT INCLUDES PUPILS IN GRADES 9 TO 12, 80%

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OR MORE OF THE PUPILS IN THE PRIOR YEAR FOR WHICH IS DATA IS

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AVAILABLE HAVE GONE ON TO A PUBLIC OR PRIVATE UNIVERSITY, A

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COMMUNITY COLLEGE, AN APPRENTICE OR SKILLED TRADES PROGRAM,

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MILITARY SERVICE, OR ANY OTHER TRAINING PROGRAM THAT RESULTS IN A


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MARKETABLE LABOR CERTIFICATE UPON COMPLETION, AS DETERMINED BY THE

EDUCATION MANAGER FOR THE BUILDING.

(iv) HAS 70 PERCENT OR MORE OF PUPILS THAT MEET THE INCOME

ELIGIBILITY CRITERIA FOR THE FEDERAL FREE OR REDUCED-PRICE LUNCH

PROGRAM, AS DETERMINED UNDER THE RICHARD B. RUSSELL NATIONAL SCHOOL

LUNCH ACT, 42 USC 1751 TO 1769I, BASED UPON INFORMATION REPORTED TO

THE DEPARTMENT.

(v) PARTICIPATES IN A ZONE ENROLLMENT PLAN UNDER PART 7C.

(9) (2) "Intermediate school board" means the board of an

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intermediate school district.


(10) (3) "Intermediate school district" means a corporate body
established under part 7.
(11) (4) "Intermediate school district election" means an

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election called by an intermediate school board and held on the

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date of the regular school elections of constituent districts or on

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a date determined by the intermediate school board under section

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642c of the Michigan election law, MCL 168.642c.

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(12) (5) "Intermediate school elector" means a person who is a

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school elector of a constituent district and who is registered in

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the city or township in which the person resides.

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(13) (6) "Intermediate superintendent" means the


superintendent of an intermediate school district.
Sec. 5. (1) "Local act school district" or "special act school

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district" means a district governed by a special or local act or

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chapter of a local act. "Local school district" and "local school

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district board" as used in article 3 include a local act school

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district and a local act school district board.

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(2) "LOCAL EDUCATION COMMISSION" MEANS THE BOARD OF AN


EMPOWERMENT ZONE.
(3) (2) "Membership" means the number of full-time equivalent

pupils in a public school as determined by the number of pupils

registered for attendance plus pupils received by transfer and

minus pupils lost as defined by rules promulgated by the state

boardSUPERINTENDENT OF PUBLIC INSTRUCTION.

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(4) (3) "Michigan election law" means the Michigan election


law, 1954 PA 116, MCL 168.1 to 168.992.
(5) (4) "Nonpublic school" means a private, denominational, or
parochial school.
(6) (5) "Objectives" means measurable pupil academic skills
and knowledge.
(7) "OPERATOR" MEANS A PARTNERSHIP, NONPROFIT OR BUSINESS

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CORPORATION, LABOR ORGANIZATION, OR ANY OTHER ASSOCIATION,

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CORPORATION, TRUST, OR OTHER LEGAL ENTITY, INCLUDING AN EDUCATIONAL

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MANAGEMENT ORGANIZATION UNDER SECTIONS 503, 523C AND 553C, THAT

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CONTRACTS WITH A PUBLIC SCHOOL ACADEMY OR EMPOWERMENT ZONE SCHOOL,

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AS APPLICABLE, TO MANAGE OR PROVIDE EDUCATIONAL SERVICES TO THE

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PUBLIC SCHOOL ACADEMY OR EMPOWERMENT ZONE SCHOOL.

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(8) (6) "Public school" means a public elementary or secondary

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educational entity or agency that is established under this act OR

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OTHER LAWS OF THIS STATE, has as its primary mission the teaching

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and learning of academic and vocational-technical skills and

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knowledge, and is operated by a school district, local act school

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district, special act school district, intermediate school

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district, school of excellence, public school academy corporation,

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strict discipline academy corporation, urban high school academy


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corporation, EMPOWERMENT ZONE SCHOOL, or by the department, or

state board, OR OTHER PUBLIC BODY. Public school also includes a

laboratory school or other elementary or secondary school that is

controlled and operated by a state public university described in

section 4, 5, or 6 of article VIII of the state constitution of

1963. PUBLIC SCHOOL DOES NOT INCLUDE A NONPUBLIC SCHOOL.

(9) (7) "Public school academy" means a public school academy

established under part 6a and, except as used in part 6a, also

includes an urban high school academy established under part 6c, a

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school of excellence established under part 6e, and a strict

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discipline academy established under sections 1311b to 1311m.

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(10) (8) "Pupil membership count day" of a school district

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means that term as defined in section 6 of the state school aid act

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of 1979, MCL 388.1606.

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(11) "RECONSTITUTE" OR "RECONSTITUTION" MEANS THE PROCESS BY

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WHICH AN AUTHORIZING BODY OR EDUCATION MANAGER REMOVES AN OPERATOR

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FROM, OR MAKES SIGNIFICANT CHANGES TO THE GOVERNANCE,

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ADMINISTRATION, MANAGEMENT, EDUCATIONAL PROGRAMMING, CURRICULA, OR

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INSTRUCTIONAL STAFFING OF A PUBLIC SCHOOL ACADEMY OR EMPOWERMENT

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ZONE SCHOOL, FOR THE PURPOSE OF IMPROVING THE EDUCATIONAL

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PERFORMANCE OF PUPILS ENROLLED IN THE PUBLIC SCHOOL ACADEMY OR

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EMPOWERMENT ZONE SCHOOL.

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(12) (9) "Regular school election" or "regular election" means

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the election held in a school district, local act school district,

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or intermediate school district to elect a school board member in

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the regular course of the terms of that office and held on the

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school district's regular election date as determined under section

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642c of the Michigan election law, MCL 168.642c.


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(13) "REMOVE AND REPLACE" MEANS THE PROCESS WITHIN AN

EMPOWERMENT ZONE BY WHICH AN EMPOWERMENT ZONE SCHOOL IS REMOVED

FROM A SCHOOL BUILDING AND REPLACED BY ANOTHER PUBLIC SCHOOL IN

THAT THE SCHOOL BUILDING TO DELIVER PUBLIC EDUCATIONAL SERVICES, AS

AUTHORIZED BY AN EDUCATION MANAGER UNDER PART 7C.

(14) (10) "Reorganized intermediate school district" means an

intermediate school district formed by consolidation or annexation

of 2 or more intermediate school districts under sections 701 and

702.

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(15) "REPLICATE" OR "REPLICATION" MEANS THE PROCESS USED BY A

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SCHOOL DISTRICT OR PUBLIC SCHOOL ACADEMY WITHIN AN EMPOWERMENT ZONE

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THAT SUBSTANTIALLY REPRODUCES THE SCHOOL FACILITIES, ACADEMIC

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PROGRAM, CURRICULA, OR AGE OR GRADE RANGE CONFIGURATION OF A HIGH-

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PERFORMING SCHOOL, AS APPROVED BY AN EDUCATION MANAGER UNDER PART

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7C.

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(16) (11) "Rule" means a rule promulgated under the

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

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24.328.

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Sec. 7. (1) "Valuation of a fractional school district" means

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the sum of the valuations of the fractions thereof, each of which

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shall be computed in the same manner as the valuation of a whole

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school district.

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(2) "Valuation of the state" means the equalized value as


determined by the state board of equalization.
(3) "Valuation of a whole school district" means the total

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assessed value of the property contained in the district as fixed

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by the township or city board of review, which in turn is

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proportionately increased or decreased to the basis of the


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valuation of the county containing the district as fixed by the

county board of equalization, and the result in turn

proportionately increased or decreased to the basis of the

valuation of the county containing the district as last fixed by

the state board of equalization, known as the "state equalized

valuation".

(4) "Vocational education" or "career and technical education"

means education designed to provide career development and the

knowledge and skills leading to technical employment or higher

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education in a technical field. Career and technical education

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programs include classroom and laboratory experiences and work-

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based instruction. The term includes guidance and counseling for a

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pupil related to the career for which the pupil is being educated

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and trained or designed to help the pupil benefit from the

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training. Allowable expenses related to career and technical

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education delivery include all instructional, support, and

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administrative costs associated with providing these activities,

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including, but not limited to, staff salaries, wages, and benefits

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for career and technical education programs only; information and

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awareness activities; acquisition and rental of real property;

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construction of buildings; acquisition of equipment and supplies;

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and maintenance, repair, and replacement of buildings, lands,

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equipment, and supplies.

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(5) "ZONE ACCOUNTABILITY PLAN" MEANS A PLAN DEVELOPED BY AN

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EDUCATION MANAGER TO MEASURE ACADEMIC GROWTH AND ACCOUNTABILITY OF

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AN EMPOWERMENT ZONE SCHOOL UNDER PART 7C.

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(6)

ZONE ENROLLMENT PLAN MEANS A PLAN DEVELOPED BY AN

EDUCATION MANAGER UNDER PART 7C FOR THE ENROLLMENT OF PUPILS IN

EMPOWERMENT ZONE SCHOOLS.

(7) "ZONE FACILITIES PLAN" MEANS A PLAN DEVELOPED BY AN

EDUCATION MANAGER UNDER PART 7C FOR THE USE OF SCHOOL BUILDINGS

WITHIN AN SCHOOL EMPOWERMENT ZONE AND THE REPURPOSING OF UNUSED OR

VACANT SCHOOL BUILDINGS UNDER PART 7C.

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Sec. 11a. (1) Beginning on July 1, 1996, each school district


formerly organized as a primary school district or as a school

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district of the fourth class, third class, or second class shall be

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a general powers school district under this act.

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(2) Beginning on July 1, 1996, a school district operating

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under a special or local act shall operate as a general powers

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school district under this act except to the extent that the

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special or local act is inconsistent with this act. Upon repeal of

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a special or local act that governs a school district, that school

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district shall become a general powers school district under this

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act.

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(3) SUBJECT TO PART 7C, A A general powers school district has

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all of the rights, powers, and duties expressly stated in this act;

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may exercise a power implied or incident to a power expressly

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stated in this act; and, except as OTHERWISE provided by law, may

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exercise a power incidental or appropriate to the performance of a

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function related to operation of the school district PUBLIC SCHOOLS

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AND THE PROVISION OF PUBLIC EDUCATION SERVICES in the interests of

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public elementary and secondary education in the school district,

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including, but not limited to, all of the following:

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(a) Educating pupils. In addition to educating pupils in

grades K-12, this function may include operation of preschool,

lifelong education, adult education, community education, training,

enrichment, and recreation programs for other persons. A SCHOOL

DISTRICT MAY DO EITHER OR BOTH OF THE FOLLOWING:

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(i) EDUCATE PUPILS BY DIRECTLY OPERATING 1 OR MORE PUBLIC


SCHOOLS ON ITS OWN.
(ii) CAUSE PUBLIC EDUCATION SERVICES TO BE PROVIDED TO
RESIDENTS OF THE SCHOOL DISTRICT THROUGH AN AGREEMENT, CONTRACT, OR

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OTHER COOPERATIVE AGREEMENT WITH ANOTHER PUBLIC ENTITY, INCLUDING,

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BUT NOT LIMITED TO, ANOTHER SCHOOL DISTRICT OR AN INTERMEDIATE

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SCHOOL DISTRICT.

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(b) Providing for the safety and welfare of pupils while at

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school or a school sponsored activity or while en route to or from

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school or a school sponsored activity.

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(c) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ACQUIRING,

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Acquiring, constructing, maintaining, repairing, renovating,

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disposing of, or conveying school property, facilities, equipment,

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technology, or furnishings.

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(d) SUBJECT TO PART 7C, HIRING, Hiring, contracting for,

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scheduling, supervising, or terminating employees, independent

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contractors, and others, INCLUDING, BUT NOT LIMITED TO, ANOTHER

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SCHOOL DISTRICT OR AN INTERMEDIATE SCHOOL DISTRICT, to carry out

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school district powers. A school district may indemnify its

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employees AND CONTRACTORS.

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(e) Receiving, accounting for, investing, or expending school

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district PUBLIC SCHOOL money; borrowing money and pledging school

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district PUBLIC SCHOOL funds for repayment; and qualifying for


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state school aid and other public or private money from local,

regional, state, or federal sources.

(4) A general powers school district may enter into

agreements, CONTRACTS, or OTHER cooperative arrangements with other

entities, public or private, INCLUDING, BUT NOT LIMITED TO, ANOTHER

SCHOOL DISTRICT OR INTERMEDIATE SCHOOL DISTRICT, or join

organizations as part of performing the functions of the school

district. An agreement, CONTRACT, or OTHER cooperative arrangement

that is entered into under this act is not required to comply with

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the provisions of the urban cooperation act of 1967, 1967 (Ex Sess)

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PA 7, MCL 124.501 to 124.512, as provided under section 503 of that

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act, MCL 124.503.

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(5) SUBJECT TO PART 7C, A A general powers school district is

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a body corporate and shall be governed by a school board. An act of

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a school board is not valid unless approved, at a meeting of the

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school board, by a majority vote of the members lawfully serving on

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the board.

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(6) The board of a general powers school district shall adopt

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bylaws. These bylaws may establish or change board procedures, the

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number of board officers, titles and duties of board officers, and

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any other matter related to effective and efficient functioning of

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the board. Regular meetings of the board shall be held at least

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once each month, at the time and place fixed by the bylaws. Special

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meetings may be called and held in the manner and for the purposes

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specified in the bylaws. Board procedures, bylaws, and policies in

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effect on the effective date of this section shall continue in

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effect until changed by action of the board.

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(7) The board of a school district shall be elected as

provided under this act and the Michigan election law. The number

of members of the board of a general powers school district shall

remain the same as for that school district before July 1, 1996

unless changed by the school electors of the school district at a

regular or special school election. A ballot question for changing

the number of board members may be placed on the ballot by action

of the board or by petition submitted by school electors as

provided under chapter XIV of the Michigan election law, MCL

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168.301 to 168.316.
(8) Members of the board of a general powers school district

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shall be elected by the school electors for terms of 4 or 6 years,

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as provided by the school district's bylaws. At each regular school

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election, members of the board shall be elected to fill the

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positions of those whose terms will expire. A term of office begins

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as provided in section 302 of the Michigan election law, MCL

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168.302, and continues until a successor is elected and qualified.

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(9) The board of a general powers school district may submit

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to the school electors of the school district a question that is

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within the scope of the powers of the school electors and that the

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board considers proper for the management of the school system or

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the advancement of education in the school district. Upon the

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adoption of a question by the board, the board shall submit the

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question to the school electors by complying with section 312 of

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the Michigan election law, MCL 168.312.

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(10) A special election may be called by the board of a

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general powers school district as provided under chapter XIV of the

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Michigan election law, MCL 168.301 to 168.316.


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(11) Unless expressly provided in 1995 PA 289, the THE powers

of a school board or school district are not diminished by this

section or by 1995 PA 289.

(12) A school district operating a public library, public

museum, or community recreational facility as of July 1, 1996 may

continue to operate the public library, public museum, or community

recreational facility.

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(13) A school district may establish and administer


scholarships for its students or graduates to support their

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attendance at a postsecondary educational institution from funds

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the school district receives as a result of a compact entered into

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between this state and a federally recognized Indian tribe pursuant

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to the Indian gaming regulatory act, Public Law 100-497. A school

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district that establishes a scholarship program funded under this

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subsection shall ensure that the scholarship program provides for

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all of the following:

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(a) That a student or graduate is not eligible to be awarded a

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scholarship unless the student or graduate is enrolled in the

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school district for all of grades 9 to 12 and meets 1 of the

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following:

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(i) Is a resident of the school district for all of grades 9 to


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(ii) Was enrolled in the school district for the 2009-2010

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school year but was not a resident of the school district for that

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school year, and is enrolled in the school district continuously

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after that school year until graduation.

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(b) That the amount of a scholarship awarded to a student or

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graduate who was not enrolled in and a continuous resident of the


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school district for all of grades K to 12 shall be adjusted based

on length of enrollment and continuous residency or, for a student

or graduate described in subdivision (a)(ii), based on length of

enrollment.

(14) BEFORE OPENING A NEW PUBLIC SCHOOL BUILDING OR CHANGING

THE CONFIGURATION OF AGES OR GRADE RANGES AT A PUBLIC SCHOOL

BUILDING WITHIN A EMPOWERMENT ZONE, THE PUBLIC BODY SEEKING TO OPEN

OR OCCUPY THE BUILDING MUST FIRST OBTAIN APPROVAL FROM THE

EDUCATION MANAGER FOR THE EMPOWERMENT ZONE. A REQUEST FOR APPROVAL

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UNDER THIS SUBSECTION MUST BE SUBMITTED TO THE EDUCATION MANAGER

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WITHIN 10 DAYS OF APPROVAL BY PUBLIC BODY. WITHIN 30 DAYS OF

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RECEIPT, THE EDUCATION MANAGER SHALL APPROVE THE REQUEST AS

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CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES

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PLAN FOR THE EMPOWERMENT ZONE, OR DENY THE REQUEST AS INCONSISTENT

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WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE

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DECISION OF AN EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND

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NOT SUBJECT TO APPEAL.

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(15) CLOSURE OF A SCHOOL BUILDING WITHIN A EMPOWERMENT ZONE

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DOES NOT REQUIRE APPROVAL BY AN EDUCATION MANAGER. A PUBLIC SCHOOL

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BUILDING WITHIN A EMPOWERMENT ZONE THAT IS VOLUNTARILY CLOSED,

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CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C, OR CLOSED

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BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY PLAN,

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SHALL BE MADE AVAILABLE FOR USE BY THE EDUCATION MANAGER FOR THE

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EMPOWERMENT ZONE AT THE BEGINNING OF THE NEXT SCHOOL FISCAL YEAR

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AFTER THE CLOSURE.

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(16) A PUBLIC BODY OPERATING A PUBLIC SCHOOL WITHIN A

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EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF AN

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EDUCATION MANAGER TO OPERATE A SCHOOL BUILDING IN USE AS A PUBLIC


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SCHOOL ON THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS

SUBSECTION.

(17) A PUBLIC BODY OPERATING A HIGH-PERFORMING SCHOOL WITHIN A

EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF AN

EDUCATION MANAGER TO OPEN A NEW SCHOOL BUILDING IF THE EDUCATION

MANAGER DETERMINES THAT THE PUBLIC BODY IS OPENING THE NEW SCHOOL

BUILDING TO REPLICATE A HIGH-PERFORMING SCHOOL.

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(18) A PUBLIC BODY OPERATING A HIGH-PERFORMING SCHOOL WITHIN A


EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF AN

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EDUCATION MANAGER TO CHANGE THE AGE OR GRADE RANGE CONFIGURATION AT

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THE HIGH-PERFORMING SCHOOL.

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(19) THE ENROLLMENT AND ADMISSIONS PROCESS OF A EMPOWERMENT

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ZONE SCHOOL SHALL BE CONSISTENT WITH THE ZONE ENROLLMENT PLAN UNDER

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PART 7C.

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(4) IF AN EDUCATION DISTRICT IS AN EMPOWERED DISTRICT OR IS A

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EMPOWERMENT ZONE SCHOOL, AND THE EDUCATION DISTRICT SEEKS TO OPEN A

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NEW SCHOOL BUILDING OR CHANGE THE AGE OR GRADE RANGE CONFIGURATION

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AT ANY EDUCATION DISTRICT BUILDING, THE EDUCATION DISTRICT MUST

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OBTAIN THE APPROVAL OF THE EDUCATION MANAGER. WITHIN 10 BUSINESS

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DAYS FOLLOWING SCHOOL BOARD APPROVAL, A EDUCATION DISTRICT SHALL

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SUBMIT THE EDUCATION DISTRICT'S REQUEST TO THE EDUCATION MANAGER.

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WITHIN 30 DAYS OF RECEIPT, THE EDUCATION MANAGER SHALL, CONSISTENT

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WITH THE ZONE ACCOUNTABILITY PLAN AND THE ZONE FACILITIES PLAN,

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APPROVE OR DENY THE SCHOOL DISTRICT'S REQUEST. THE DECISION OF THE

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EDUCATION MANAGER IS FINAL AND NOT SUBJECT TO APPEAL.

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Sec. 502. (1) SUBJECT TO PART 7C, A A public school academy

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shall be organized and administered under the direction of a board

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of directors in accordance with this part and with bylaws adopted


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by the board of directors. A public school academy corporation

shall be organized under the nonprofit corporation act, 1982 PA

162, MCL 450.2101 to 450.3192, except that a public school academy

corporation is not required to comply with sections 170 to 177 of

1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified

under the state or federal constitution, a public school academy

shall not be organized by a church or other religious organization

and shall not have any organizational or contractual affiliation

with or constitute a church or other religious organization.

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(2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, Any ANY of

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the following may act as an authorizing body to issue a contract to

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organize and operate 1 or more public school academies under this

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part:

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(a) The board of a school district that operates grades K to

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12. However, the board of a school district shall not issue a

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contract for a public school academy to operate outside the school

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district's boundaries, and a public school academy authorized by

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the board of a school district shall not operate outside that

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school district's boundaries. FOR PURPOSES OF THIS PART, THE BOARD

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OF A SCHOOL DISTRICT DOES NOT INCLUDE A LOCAL EDUCATION COMMISSION.

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(b) An intermediate school board. However, the board of an

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intermediate school district shall not issue a contract for a

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public school academy to operate outside the intermediate school

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district's boundaries, and a public school academy authorized by

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the board of an intermediate school district shall not operate

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outside that intermediate school district's boundaries.

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(c) The board of a community college. However, except as


otherwise provided in this subdivision, the board of a community
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college shall not issue a contract for a public school academy to

operate in a school district organized as a school district of the

first class, a public school academy authorized by the board of a

community college shall not operate in a school district organized

as a school district of the first class, the board of a community

college shall not issue a contract for a public school academy to

operate outside the boundaries of the community college district,

and a public school academy authorized by the board of a community

college shall not operate outside the boundaries of the community

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college district. The board of a community college also may issue a

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contract for not more than 1 public school academy to operate on

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the grounds of an active or closed federal military installation

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located outside the boundaries of the community college district,

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or may operate a public school academy itself on the grounds of

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such a federal military installation, if the federal military

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installation is not located within the boundaries of any community

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college district and the community college has previously offered

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courses on the grounds of the federal military installation for at

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least 10 years.

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(d) The governing board of a state public university. However,

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the combined total number of contracts for public school academies

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issued by all state public universities shall not exceed 300

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through December 31, 2012 and shall not exceed 500 through December

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31, 2014. After December 31, 2014, there is no limit on the

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combined total number of contracts for public school academies that

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may be issued by all state public universities.

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(e) Two or more of the public agencies described in


subdivisions (a) to (d) exercising power, privilege, or authority
______'15

____

17

jointly pursuant to an interlocal agreement under the urban

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

124.512.

(3) To obtain a contract to organize and operate 1 or more

public school academies, 1 or more persons or an entity may apply

to an authorizing body described in subsection (2). The application

shall include at least all of the following:

(a) Identification of the applicant for the contract.

(b) Subject to the resolution adopted by the authorizing body

10

under section 503(5), a list of the proposed members of the board

11

of directors of the public school academy and a description of the

12

qualifications and method for appointment or election of members of

13

the board of directors.

14
15

(c) The proposed articles of incorporation, which shall


include at least all of the following:

16

(i) The name of the proposed public school academy.

17

(ii) The purposes for the public school academy corporation.

18

This language shall provide that the public school academy is

19

incorporated pursuant to this part and that the public school

20

academy corporation is a governmental entity.

21

(iii) The name of the authorizing body.

22

(iv) The proposed time when the articles of incorporation will

23
24
25
26
27

be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the public school
academy.

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____

18

1
2

(e) Documentation meeting the application requirements of the


authorizing body, including at least all of the following:

(i) The governance structure of the public school academy.

(ii) A copy of the educational goals of the public school

academy and the curricula to be offered and methods of pupil

assessment to be used by the public school academy. The educational

goals shall include demonstrated improved pupil academic

achievement for all groups of pupils. To the extent applicable, the

progress of the pupils in the public school academy shall be

10

assessed using at least a Michigan education assessment program

11

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

12

as applicable.

13

(iii) The admission policy and criteria to be maintained by the

14

public school academy. The admission policy and criteria shall

15

comply with section 504. This part of the application also shall

16

include a description of how the applicant will provide to the

17

general public adequate notice that a public school academy is

18

being created and adequate information on the admission policy,

19

criteria, and process.

20

(iv) The school calendar and school day schedule.

21

(v) The age or grade range of pupils to be enrolled.

22

(f) Descriptions of staff responsibilities and of the public

23
24

school academy's governance structure.


(g) For an application to the board of a school district, an

25

intermediate school board, or board of a community college,

26

identification of the local and intermediate school districts in

27

which the public school academy will be located.

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____

19

(h) An agreement that the public school academy will comply

with the provisions of this part and, subject to the provisions of

this part, with all other state law applicable to public bodies and

with federal law applicable to public bodies or school districts.

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

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

applicant may request the authorizing body to issue a contract

allowing the public school academy board of directors to operate

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

10

(4) An authorizing body shall oversee, or shall contract with

11

an intermediate school district, community college, or state public

12

university to oversee, each public school academy operating under a

13

contract issued by the authorizing body. The authorizing body is

14

responsible for overseeing compliance by the board of directors

15

with the contract and all applicable law. This subsection does not

16

relieve any other government entity of its enforcement or

17

supervisory responsibility.

18

(5) If the superintendent of public instruction finds that an

19

authorizing body is not engaging in appropriate continuing

20

oversight of 1 or more public school academies operating under a

21

contract issued by the authorizing body, the superintendent of

22

public instruction may suspend the power of the authorizing body to

23

issue new contracts to organize and operate public school

24

academies. A contract issued by the authorizing body during the

25

suspension is void. A contract issued by the authorizing body

26

before the suspension is not affected by the suspension.

27

(6) An authorizing body shall not charge a fee, or require

28

reimbursement of expenses, for considering an application for a


______'15

____

20

contract, for issuing a contract, or for providing oversight of a

contract for a public school academy in an amount that exceeds a

combined total of 3% of the total state school aid received by the

public school academy in the school year in which the fees or

expenses are charged. An authorizing body may provide other

services for a public school academy and charge a fee for those

services, but shall not require such an arrangement as a condition

to issuing the contract authorizing the public school academy.

(7) A public school academy shall be presumed to be legally

10

organized if it has exercised the franchises and privileges of a

11

public school academy for at least 2 years.

12

(8) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, An AN

13

authorizing body may enter into an intergovernmental agreement with

14

another authorizing body to issue public school academy contracts.

15

At a minimum, the agreement shall further the purposes set forth in

16

section 501, describe which authorizing body shall issue the

17

contract, and set forth which authorizing body will be responsible

18

for monitoring compliance by the board of directors of the public

19

school academy with the contract and all applicable law.

20

(9) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW PUBLIC

21

SCHOOL ACADEMY TO OPERATE WITHIN A EMPOWERMENT ZONE, THE

22

AUTHORIZING BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION

23

MANAGER FOR THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 10

24

BUSINESS DAYS OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY

25

SHALL SUBMIT ITS REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS

26

OF RECEIPT, THE EDUCATION MANAGER SHALL APPROVE OR DENY THE

27

REQUEST. THE DECISION OF THE EDUCATION MANAGER TO DENY AN

28

AUTHORIZING BODY'S REQUEST TO ISSUE A CONTRACT FOR A NEW PUBLIC


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____

21

SCHOOL ACADEMY WITHIN THE EMPOWERMENT ZONE UNDER THIS SUBSECTION IS

FINAL AND NOT SUBJECT TO APPEAL.

(10) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

APPROVAL OF AN EDUCATION MANAGER TO REVOKE OR TERMINATE AN EXISTING

PUBLIC SCHOOL ACADEMY CONTRACT.

(11) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

APPROVAL OF AN EDUCATION MANAGER TO REAUTHORIZE OR NOT REAUTHORIZE

AN EXISTING PUBLIC SCHOOL ACADEMY CONTRACT.

(12) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

10

APPROVAL OF AN EDUCATION MANAGER FOR THE MERGER OR CONSOLIDATION OF

11

2 OR MORE PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE EMPOWERMENT

12

ZONE.

13

(13) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A PUBLIC

14

SCHOOL ACADEMY THAT IS A HIGH-PERFORMING SCHOOL OPERATING WITHIN A

15

EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF THE

16

EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW CONTRACT

17

FOR A PUBLIC SCHOOL ACADEMY IF THE EDUCATION MANAGER DETERMINES

18

THAT THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO REPLICATE

19

THE HIGH-PERFORMING SCHOOL.

20

(14) A PUBLIC SCHOOL ACADEMY SCHOOL BUILDING THAT IS CLOSED BY

21

AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION, TERMINATION,

22

OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A PUBLIC SCHOOL

23

ACADEMY; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C; OR

24

CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY

25

PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE AVAILABLE FOR USE

26

BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE

27

BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT SCHOOL FISCAL

28

YEAR.
______'15

____

22

Sec. 504. (1) A public school academy may be located in all or

part of an existing public school building. EXCEPT AS OTHERWISE

PROVIDED IN THIS SECTION, A A public school academy shall not

operate at a site other than the site or sites requested for the

configuration of age or grade levels that will use the site or

sites, as specified in the contract. Under a contract AND EXCEPT AS

OTHERWISE PROVIDED IN THIS SECTION, an authorizing body may permit

a public school academy to operate the same configuration of age or

grade levels at more than 1 site, and a public school academy may

10

operate the same configuration of age or grade levels at more than

11

1 site, as long as the public school academy is operating in

12

compliance with its contract and is making measurable progress

13

toward meeting its educational goals. EXCEPT AS OTHERWISE PROVIDED

14

IN THIS SECTION, For FOR a contract for a new public school

15

academy, an authorizing body may permit a public school academy to

16

operate the same configuration of age or grade levels at more than

17

1 site, and a public school academy may operate the same

18

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

19

applicant for the proposed public school academy presents

20

documentation to the authorizing body demonstrating that the

21

applicant's proposed educational model has resulted in schools

22

making measurable progress toward meeting their education goals.

23

(2) A public school academy shall not charge tuition and shall

24

not discriminate in its pupil admissions policies or practices on

25

the basis of intellectual or athletic ability, measures of

26

achievement or aptitude, status as a student with a disability, or

27

any other basis that would be illegal if used by a school district.

28

However, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, a public


______'15

____

23

school academy may limit admission to pupils who are within a

particular range of age or grade level or on any other basis that

would be legal if used by a school district and may give enrollment

priority as provided in subsection (4).

(3) Except for a foreign exchange student who is not a United

States citizen, a public school academy shall not enroll a pupil

who is not a resident of this state. EXCEPT AS OTHERWISE PROVIDED

IN THIS SECTION, For FOR a public school academy authorized by a

school district, intermediate school district, or community

10

college, enrollment in the public school academy may be open to all

11

individuals who reside in this state who meet the admission policy

12

and shall be open to all pupils who reside within the geographic

13

boundaries of that authorizing body who meet the admission policy,

14

except that admission to a public school academy authorized by the

15

board of a community college to operate, or operated by the board

16

of a community college, on the grounds of a federal military

17

installation, as described in section 502(2)(c), shall be open to

18

all pupils who reside in the county in which the federal military

19

installation is located. EXCEPT AS OTHERWISE PROVIDED IN THIS

20

SECTION, For FOR a public school academy authorized by a state

21

public university, enrollment shall be open to all pupils who

22

reside in this state who meet the admission policy. Subject to

23

subsection (4) AND SUBSECTION (10), if there are more applications

24

to enroll in the public school academy than there are spaces

25

available, pupils shall be selected to enroll using a random

26

selection process. A public school academy shall allow any pupil

27

who was enrolled in the public school academy in the immediately

28

preceding school year to enroll in the public school academy in the


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____

24

appropriate grade unless the appropriate grade is not offered at

that public school academy.

3
4

(4) A public school academy may give enrollment priority to 1


or more of the following:

5
6

(a) A sibling of a pupil enrolled in the public school


academy.

(b) A pupil who transfers to the public school academy from

another public school pursuant to a matriculation agreement between

the public school academy and other public school that provides for

10

this enrollment priority, if all of the following requirements are

11

met:

12
13

(i) Each public school that enters into the matriculation


agreement remains a separate and independent public school.

14

(ii) The public school academy that gives the enrollment

15

priority selects at least 5% of its pupils for enrollment using a

16

random selection process.

17

(iii) The matriculation agreement allows any pupil who was

18

enrolled at any time during elementary school in a public school

19

that is party to the matriculation agreement and who was not

20

expelled from the public school to enroll in the public school

21

academy giving enrollment priority under the matriculation

22

agreement.

23

(c) A child of a person who is employed by or at the public

24

school academy or who is on the board of directors of the public

25

school academy. As used in this subdivision, "child" includes an

26

adopted child or a legal ward.

27
28

(5) A public school academy may include any grade up to grade


12 or any configuration of those grades, including kindergarten and
______'15

____

25

early childhood education, as specified in its contract. If

specified in its contract, a public school academy may also operate

an adult basic education program, adult high school completion

program, or general education development testing preparation

program. SUBJECT TO PART 7C, The THE authorizing body may approve

amendment of a contract with respect to ages of pupils or grades

offered.

8
9

(6) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A


PUBLIC SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE SCHOOL, AN

10

AUTHORIZING BODY SHALL NOT APPROVE A PUBLIC SCHOOL ACADEMY TO ADD

11

ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE OR

12

GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE

13

EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A PUBLIC

14

SCHOOL ACADEMY'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE PUBLIC

15

SCHOOL ACADEMYS AUTHORIZING BODY SHALL SUBMIT THE ADDITIONAL SITE

16

REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE

17

EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE REQUEST AS

18

CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES

19

PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL SITE REQUEST

20

AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE

21

FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER THIS

22

SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.

23

(7) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, AN

24

AUTHORIZING BODY THAT ISSUES A CONTRACT TO A PUBLIC SCHOOL ACADEMY

25

OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO OBTAIN THE

26

APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL SITE IF THE

27

EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE ADDITION

28

SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE IS FOR


______'15

____

26

THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS

SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE AN ADDITIONAL

SITE REQUEST FOR A PUBLIC SCHOOL ACADEMY.

(8) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A

PUBLIC SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE SCHOOL, AN

AUTHORIZING BODY SHALL NOT PERMIT A PUBLIC SCHOOL ACADEMY TO CHANGE

THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE PUBLIC

SCHOOL ACADEMY WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR

THE SCHOOL EMPOWERMENT ZONE IN WHICH THE PUBLIC SCHOOL ACADEMY IS

10

LOCATED. WITHIN 10 BUSINESS DAYS AFTER A PUBLIC SCHOOL ACADEMY'S

11

APPROVAL OF AN AGE OR GRADE RANGE CHANGE REQUEST, THE AUTHORIZING

12

BODY FOR THE PUBLIC SCHOOL ACADEMY SHALL SUBMIT THE PUBLIC SCHOOL

13

ACADEMY'S AGE OR GRADE RANGE CHANGE REQUEST TO THE EDUCATION

14

MANAGER. WITHIN 30 DAYS OF RECEIPT, THE EDUCATION MANAGER SHALL

15

APPROVE THE REQUEST AS CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN

16

AND ZONE FACILITIES PLAN FOR THE EMPOWERMENT ZONE OR DENY THE

17

REQUEST AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE

18

FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER THIS

19

SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.

20

(9) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A PUBLIC

21

SCHOOL ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED

22

TO OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE THE

23

CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING SCHOOL.

24

NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE

25

AN AGE OR GRADE RANGE REQUEST FOR A PUBLIC SCHOOL ACADEMY.

26

(10) FOR A PUBLIC SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE

27

SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT AND

28

ADMISSIONS PROCESS OF THE PUBLIC SCHOOL ACADEMY INCORPORATED INTO


______'15

____

27

THE CONTRACT FOR THE PUBLIC SCHOOL ACADEMY IS CONSISTENT WITH ZONE

ENROLLMENT PLAN UNDER PART 7C.

Sec. 507. (1) An authorizing body that issues a contract for a

public school academy under this part shall do all of the

following:

6
7
8
9
10

(a) Ensure that the contract and the application for the
contract comply with the requirements of this part AND PART 7C.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and

11

number of members of the board of directors of each public school

12

academy that it authorizes. The authorizing body shall ensure that

13

the board of directors includes representation from the local

14

community.

15

(d) Oversee each public school academy operating under a

16

contract issued by the authorizing body. The oversight shall be

17

sufficient to ensure that the board of directors is in compliance

18

with the terms of the contract and with applicable law.

19

(e) Develop and implement a process for holding a public

20

school academy accountable for meeting applicable academic

21

performance standards set forth in the contract and for

22

implementing corrective action for a public school academy that

23

does not meet those standards.

24

(f) Take necessary measures to ensure that the board of

25

directors of a public school academy operates independently of any

26

educational management company involved in the operations of the

27

public school academy.

______'15

____

28

(g) Oversee and ensure that the pupil admission process used

by the public school academy is operated in a fair and open manner

and is in compliance with the contract ,this part AND PART 7C.

(h) Ensure that the board of directors of the public school

academy maintains and releases information as necessary to comply

with applicable law.

(2) An authorizing body may enter into an agreement with 1 or

more other authorizing bodies to carry out any function of an

authorizing body under this act.

10

(3) The authorizing body for a public school academy is the

11

fiscal agent for the public school academy. A state school aid

12

payment for a public school academy shall be paid to the

13

authorizing body that is the fiscal agent for that public school

14

academy, and the authorizing body shall then forward the payment to

15

the public school academy. Within 30 days after a contract is

16

submitted to the department by an authorizing body under subsection

17

(1), the department shall issue a district code to the public

18

school academy for which the contract was issued. If the department

19

does not issue a district code within 30 days after a contract is

20

filed, the state treasurer shall assign a temporary district code

21

in order for the public school academy to receive funding under the

22

state school aid act of 1979.

23

(4) A contract issued under this part may be revoked by the

24

authorizing body if the authorizing body determines that 1 or more

25

of the following have occurred:

26

(a) Failure of the public school academy to demonstrate

27

improved pupil academic achievement for all groups of pupils or

28

meet the educational goals set forth in the contract.


______'15

____

29

1
2
3

(b) Failure of the public school academy to comply with all


applicable law.
(c) Failure of the public school academy to meet generally

accepted public sector accounting principles and demonstrate sound

fiscal stewardship.

6
7

(d) The existence of 1 or more other grounds for revocation as


specified in the contract.

(5) Except for a public school academy that is an alternative

school serving a special student population, if the superintendent

10

of public instruction STATE SCHOOL REFORM/REDESIGN OFFICER

11

determines that a public school academy site that has been

12

operating for at least 4 years is among the lowest achieving 5% of

13

all public schools in this state FOR 3 CONSECUTIVE YEARS, as

14

defined IN SECTION 1280C, for the purposes of the federal incentive

15

grant program created under sections 14005 and 14006 of title XIV

16

of the American recovery and reinvestment act of 2009, Public Law

17

111-5, is in year 2 of restructuring sanctions under the no child

18

left behind act of 2001, Public Law 107-110, not to include the ANY

19

individualized education plan subgroup, and is not currently

20

undergoing reconstitution under this section, the superintendent of

21

public instruction STATE SCHOOL REFORM/REDESIGN OFFICER shall

22

notify the public school academy's authorizing body. If an

23

authorizing body receives notice from the superintendent of public

24

instruction STATE SCHOOL REFORM/REDESIGN OFFICER under this

25

subsection, the authorizing body shall amend the public school

26

academy's contract to eliminate the public school academy's

27

authority to operate the existing age and grade levels at the site

28

and the public school academy shall cease operating the existing
______'15

____

30

age and grade levels at the site, effective at the end of the

current school year. If the public school academy operates at only

1 site, and the authorizing body receives notice from the

superintendent of public instruction STATE SCHOOL REFORM/REDESIGN

OFFICER under this subsection, the authorizing body shall revoke

the public school academy's contract, effective at the end of the

current school year.

8
9

(6) FOR A PUBLIC SCHOOL ACADEMY THAT IS A SCHOOL EMPOWERMENT


ZONE SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN

10

AUTHORIZING BODY SHALL PERMIT AN EDUCATION MANAGER TO RECONSTITUTE

11

THE PUBLIC SCHOOL ACADEMY IF THE PUBLIC SCHOOL ACADEMY IS LISTED ON

12

THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR THREE

13

CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A

14

RECONSTITUTION PROVISION IN THE CONTRACT FOR THE PUBLIC SCHOOL

15

ACADEMY THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT

16

LIMITED TO, 1 OR MORE OF THE FOLLOWING:

17
18

(A) AUTOMATIC CANCELLATION OF A CONTRACT WITH AN EDUCATIONAL


MANAGEMENT ORGANIZATION.

19

(B) WITHDRAWAL OF APPROVAL OF A CONTRACT UNDER SECTION 506.

20

(C) AUTHORIZING AN EDUCATION MANAGER TO CONDUCT ON BEHALF OF

21

THE PUBLIC SCHOOL ACADEMY BOARD OF DIRECTORS A REQUEST FOR PROPOSAL

22

PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES FOR THE

23

PUBLIC SCHOOL ACADEMY.

24

(D) IF THE BUILDING IS SUBJECT TO A SUPERINTENDENT'S CLOSURE

25

ORDER UNDER PART 7C, A REQUEST FOR PROPOSAL PROCESS TO REMOVE AND

26

REPLACE, OR APPOINTING A NEW BOARD OF DIRECTORS OR A TRUSTEE TO

27

TAKE OVER OPERATION OF THE PUBLIC SCHOOL ACADEMY.

______'15

____

31

(7) NOTHING IN THIS SECTION PROHIBITS AN AUTHORIZING BODY FROM

RECONSTITUTING A PUBLIC SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE

SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS THAT

A PUBLIC SCHOOL ACADEMY IS LISTED ON THE LOWEST ACHIEVING SCHOOLS

LIST UNDER SECTION 1280C.

(6)(8) EXCEPT AS PROVIDED IN SECTION 502, The THE decision of

an authorizing body to issue, not issue, or reconstitute a contract

under this part, or to terminate or revoke a contract under this

section, is solely within the discretion of the authorizing body,

10

is final, and is not subject to review by a court or any state

11

agency. An authorizing body that issues, does not issue, or

12

reconstitutes a contract under this part, or that terminates or

13

revokes a contract under this section, is not liable for that

14

action to the public school academy, the public school academy

15

corporation, a pupil of the public school academy, the parent or

16

guardian of a pupil of the public school academy, or any other

17

person.

18

(7) (11) Except as otherwise provided in subsection (5),

19

before EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE an

20

authorizing body revokes OR ELECTS NOT TO REISSUE a contract, the

21

authorizing body may consider and take corrective measures to avoid

22

revocation. An authorizing body may reconstitute the public school

23

academy in a final attempt to improve student educational

24

performance or to avoid interruption of the educational process. An

25

authorizing body shall include a reconstituting provision in the

26

contract that identifies these corrective measures, including, but

27

not limited to, canceling a contract with an educational management

28

organization, if any, withdrawing approval of a contract under


______'15

____

32

section 506, or appointing a new board of directors or a trustee to

take over operation of the public school academy.

(8) (12) If an authorizing body revokes a contract, the

authorizing body shall work with a school district or another

public school, or with a combination of these entities, to ensure a

smooth transition for the affected pupils. If the revocation occurs

during the school year, the authorizing body, as the fiscal agent

for the public school academy under this part, shall return any

school aid funds held by the authorizing body that are attributable

10

to the affected pupils to the state treasurer for deposit into the

11

state school aid fund. The state treasurer shall distribute funds

12

to the public school in which the pupils enroll after the

13

revocation pursuant to a methodology established by the department

14

and the center for educational performance and information.

15

(9) (13) Not more than 10 days after a public school academy's

16

contract terminates or is revoked, the authorizing body shall

17

notify the superintendent of public instruction in writing of the

18

name of the public school academy whose contract has terminated or

19

been revoked and the date of contract termination or revocation.

20

Sec. 522.(1) SUBJECT TO PART 7C, An AN urban high school

21

academy shall be organized and administered under the direction of

22

a board of directors in accordance with this part and with bylaws

23

adopted by the board of directors. An urban high school academy

24

corporation shall be organized under the nonprofit corporation act,

25

1982 PA 162, MCL 450.2101 to 450.3192, except that an urban high

26

school academy corporation is not required to comply with sections

27

170 to 177 of 1931 PA 327, MCL 450.170 to 450.177. To the extent

28

disqualified under the state or federal constitution, an urban high


______'15

____

33

school academy shall not be organized by a church or other

religious organization and shall not have any organizational or

contractual affiliation with or constitute a church or other

religious organization.

(2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, The THE

governing board of a state public university may act as an

authorizing body to issue a contract for the organization and

operation of an urban high school academy under this part.

(3) A contract issued under this part shall be issued for an

10

initial term of 10 years. If the urban high school academy meets

11

the educational goals set forth in the contract and operates in

12

substantial compliance with this part, the authorizing body shall

13

automatically renew the contract for a subsequent 10-year term.

14

(4) To obtain a contract to organize and operate 1 or more

15

urban high school academies, an entity may apply to an authorizing

16

body described in subsection (2). The contract shall be issued to

17

an urban high school academy corporation designated by the entity

18

applying for the contract. The application shall include at least

19

all of the following:

20

(a) Name of the entity applying for the contract.

21

(b) Subject to the resolution adopted by the authorizing body

22

under section 528, a list of the proposed members of the board of

23

directors of the urban high school academy and a description of the

24

qualifications and method for appointment or election of members of

25

the board of directors.

26
27

(c) The proposed articles of incorporation, which shall


include at least all of the following:

______'15

____

34

1
2
3

(i) The name of the proposed urban high school academy to which
the contract will be issued.
(ii) The purposes for the urban high school academy

corporation. This language shall provide that the urban high school

academy is incorporated pursuant to this part and that the urban

high school academy corporation is a governmental entity and

political subdivision of this state.

(iii) The name of the authorizing body.

(iv) The proposed time when the articles of incorporation will

10
11
12
13
14
15
16

be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the urban high school
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:

17

(i) The governance structure of the urban high school academy.

18

(ii) A copy of the educational goals of the urban high school

19

academy and the curricula to be offered and methods of pupil

20

assessment to be used by the urban high school academy. The

21

educational goals shall include demonstrated improved pupil

22

academic achievement for all groups of pupils. To the extent

23

applicable, the progress of the pupils in the urban high school

24

academy shall be assessed using at least a Michigan education

25

assessment program (MEAP) test or the Michigan merit examination

26

under section 1279g, as applicable.

27
28

(iii) The admission policy and criteria to be maintained by the


urban high school academy. The admission policy and criteria shall
______'15

____

35

comply with section 524. This part of the application also shall

include a description of how the applicant will provide to the

general public adequate notice that an urban high school academy is

being created and adequate information on the admission policy,

criteria, and process.

(iv) The school calendar and school day schedule.

(v) The age or grade range of pupils to be enrolled.

(f) Descriptions of staff responsibilities and of the urban

9
10

high school academy's governance structure.


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

11

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

12

and a financial commitment by the entity applying for the contract

13

to construct or renovate the building or buildings that will be

14

occupied by the urban high school academy that is issued the

15

contract.

16

(5) If a particular state public university issues a contract

17

that allows an urban high school academy to operate the same

18

configuration of grades at more than 1 site, as provided in section

19

524(1), each of those sites shall be under the direction of the

20

board of directors that is a party to the contract.

21

(6) If the superintendent of public instruction finds that an

22

authorizing body is not engaging in appropriate continuing

23

oversight of 1 or more urban high school academies operating under

24

a contract issued by the authorizing body, the superintendent of

25

public instruction may suspend the power of the authorizing body to

26

issue new contracts to organize and operate urban high school

27

academies. A contract issued by the authorizing body during the

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____

36

suspension is void. A contract issued by the authorizing body

before the suspension is not affected by the suspension.

(7) An authorizing body shall not charge a fee, or require

reimbursement of expenses, for considering an application for a

contract, for issuing a contract, or for providing oversight of a

contract for an urban high school academy in an amount that exceeds

a combined total of 3% of the total state school aid received by

the urban high school academy in the school year in which the fees

or expenses are charged. All of the following apply to this fee:

10
11
12
13
14
15
16
17

(a) An authorizing body may use this fee only for the
following purposes:
(i) Considering applications and issuing or administering
contracts.
(ii) Compliance monitoring and oversight of urban high school
academies.
(iii) Training for urban high school academy applicants,
administrators, and boards of directors.

18

(iv) Technical assistance to urban high school academies.

19

(v) Academic support to urban high school academies or to

20

pupils or graduates of urban high school academies.

21

(vi) Evaluation of urban high school academy performance.

22

(vii) Training of teachers, including supervision of teacher

23
24

interns.
(viii) Other purposes that assist the urban high school

25

academies or traditional public schools in achieving improved

26

academic performance.

27
28

(b) An authorizing body may provide other services for an


urban high school academy and charge a fee for those services, but
______'15

____

37

shall not require such an arrangement as a condition to issuing the

contract authorizing the urban high school academy.

(8) An urban high school academy shall be presumed to be

legally organized if it has exercised the franchises and privileges

of an urban high school academy for at least 2 years.

(9) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW URBAN

HIGH SCHOOL ACADEMY TO OPERATE WITHIN A EMPOWERMENT ZONE, THE

AUTHORIZING BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION

MANAGER FOR THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 10

10

BUSINESS DAYS OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY

11

SHALL SUBMIT ITS REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS

12

OF RECEIPT, THE EDUCATION MANAGER SHALL APPROVE OR DENY THE

13

REQUEST. THE DECISION OF THE EDUCATION MANAGER TO DENY AN

14

AUTHORIZING BODY'S REQUEST TO ISSUE A CONTRACT FOR A NEW URBAN HIGH

15

SCHOOL ACADEMY WITHIN THE EMPOWERMENT ZONE UNDER THIS SUBSECTION IS

16

FINAL AND NOT SUBJECT TO APPEAL.

17

(10) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

18

APPROVAL OF AN EDUCATION MANAGER TO REVOKE OR TERMINATE AN EXISTING

19

URBAN HIGH SCHOOL ACADEMY CONTRACT.

20

(11) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

21

APPROVAL OF AN EDUCATION MANAGER TO REAUTHORIZE OR NOT REAUTHORIZE

22

AN EXISTING URBAN HIGH SCHOOL ACADEMY CONTRACT.

23

(12) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

24

APPROVAL OF AN EDUCATION MANAGER FOR THE MERGER OR CONSOLIDATION OF

25

2 OR MORE PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE EMPOWERMENT

26

ZONE.

27
28

(13) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A URBAN


HIGH SCHOOL ACADEMY THAT IS A HIGH-PERFORMING SCHOOL OPERATING
______'15

____

38

WITHIN A EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF

THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW

CONTRACT FOR A URBAN HIGH SCHOOL ACADEMY IF THE EDUCATION MANAGER

DETERMINES THAT THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO

REPLICATE THE HIGH-PERFORMING SCHOOL.

(14) A URBAN HIGH SCHOOL ACADEMY SCHOOL BUILDING THAT IS

CLOSED BY AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION,

TERMINATION, OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A URBAN

HIGH SCHOOL ACADEMY; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER

10

PART 7C; OR CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE

11

ACCOUNTABILITY PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE

12

AVAILABLE FOR USE BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE

13

IN WHICH THE BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT

14

SCHOOL FISCAL YEAR.

15

Sec. 524. (1) An urban high school academy may be located in

16

all or part of an existing public school building. EXCEPT AS

17

OTHERWISE PROVIDED IN THIS SECTION, An AN urban high school academy

18

shall not operate at a site other than the site or sites, requested

19

for the configuration of age or grade levels that will use the site

20

or sites, as specified in the contract. Under a contract AND EXCEPT

21

AS OTHERWISE PROVIDED IN THIS SECTION, an authorizing body may

22

permit an urban high school academy to operate the same

23

configuration of age or grade levels at more than 1 site, and an

24

urban high school academy may operate the same configuration of age

25

or grade levels at more than 1 site, as long as the urban high

26

school academy is operating in compliance with its contract and is

27

making measurable progress toward meeting its educational goals.

28

EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, For FOR a contract


______'15

____

39

for a new urban high school academy, an authorizing body may permit

an urban high school academy to operate the same configuration of

age or grade levels at more than 1 site, and an urban high school

academy may operate the same configuration of age or grade levels

at more than 1 site, if the applicant for the proposed urban high

school academy presents documentation to the authorizing body

demonstrating that the applicant's proposed educational model has

resulted in schools making measurable progress toward meeting their

educational goals.

10

(2) An urban high school academy shall not charge tuition.

11

Except as otherwise provided in this section, an urban high school

12

academy shall not discriminate in its pupil admissions policies or

13

practices on the basis of intellectual or athletic ability,

14

measures of achievement or aptitude, status as a handicapped

15

person, or any other basis that would be illegal if used by a

16

school district. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,

17

However, an urban high school academy may limit admission to pupils

18

who are within a particular range of age or grade level or on any

19

other basis that would be legal if used by a school district and

20

may give enrollment priority as provided in subsection (4).

21

(3) Except for a foreign exchange student who is not a United

22

States citizen, an urban high school academy shall not enroll a

23

pupil who is not a resident of this state. EXCEPT AS OTHERWISE

24

PROVIDED IN THIS SECTION, Enrollment ENROLLMENT in an urban high

25

school academy shall be open to all pupils who reside in this state

26

who meet the admission policy. Subject to subsection (4) AND

27

SUBSECTION (11), if there are more applications to enroll in the

28

urban high school academy than there are spaces available, pupils
______'15

____

40

shall be selected to attend using a random selection process. An

urban high school academy shall allow any pupil who was enrolled in

the urban high school academy in the immediately preceding school

year to enroll in the urban high school academy in the appropriate

grade unless the appropriate grade is not offered at that urban

high school academy.

7
8
9
10
11

(4) An urban high school academy may give enrollment priority


to 1 or more of the following:
(a) A sibling of a pupil enrolled in the urban high school
academy.
(b) A child of a person who is employed by or at the urban

12

high school academy or who is on the board of directors of the

13

urban high school academy. As used in this subdivision, "child"

14

includes an adopted child or a legal ward.

15

(5) Subject to the terms of the contract authorizing the urban

16

high school academy, an urban high school academy shall include at

17

least grades 9 through 12 within 5 years after beginning operations

18

and may include other grades or any configuration of those grades,

19

including kindergarten and early childhood education, as specified

20

in its contract. If specified in its contract, an urban high school

21

academy may also operate an adult basic education program, adult

22

high school completion program, or general education development

23

testing preparation program.

24

(6) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A URBAN

25

HIGH SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE SCHOOL, AN

26

AUTHORIZING BODY SHALL NOT APPROVE A URBAN HIGH SCHOOL ACADEMY TO

27

ADD ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE

28

OR GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR


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____

41

THE EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A URBAN

HIGH SCHOOL ACADEMY'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE

URBAN HIGH SCHOOL ACADEMYS AUTHORIZING BODY SHALL SUBMIT THE

ADDITIONAL SITE REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF

RECEIPT, THE EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE

REQUEST AS CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE

FACILITIES PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL

SITE REQUEST AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND

ZONE FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER

10
11

THIS SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.


(7) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, AN

12

AUTHORIZING BODY THAT ISSUES A CONTRACT TO A URBAN HIGH SCHOOL

13

ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO

14

OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL

15

SITE IF THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE

16

ADDITION SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE

17

IS FOR THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS

18

SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE AN ADDITIONAL

19

SITE REQUEST FOR A URBAN HIGH SCHOOL ACADEMY.

20

(8) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A URBAN

21

HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE SCHOOL, AN

22

AUTHORIZING BODY SHALL NOT PERMIT A URBAN HIGH SCHOOL ACADEMY TO

23

CHANGE THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE

24

URBAN HIGH SCHOOL ACADEMY WITHOUT THE APPROVAL OF THE EDUCATION

25

MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE URBAN HIGH SCHOOL

26

ACADEMY IS LOCATED. WITHIN 10 BUSINESS DAYS AFTER A URBAN HIGH

27

SCHOOL ACADEMY'S APPROVAL OF AN AGE OR GRADE RANGE CHANGE REQUEST,

28

THE AUTHORIZING BODY FOR THE URBAN HIGH SCHOOL ACADEMY SHALL SUBMIT
______'15

____

42

THE URBAN HIGH SCHOOL ACADEMY'S AGE OR GRADE RANGE CHANGE REQUEST

TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE EDUCATION

MANAGER SHALL, APPROVE THE REQUEST AS CONSISTENT WITH THE ZONE

ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN FOR THE EMPOWERMENT

ZONE OR DENY THE REQUEST AS INCONSISTENT WITH THE ZONE

ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE DECISION OF AN

EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND NOT SUBJECT TO

APPEAL.

(9) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A URBAN

10

HIGH SCHOOL ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT

11

REQUIRED TO OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE

12

THE CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING

13

SCHOOL. NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO

14

APPROVE AN AGE OR GRADE RANGE REQUEST FOR A URBAN HIGH SCHOOL

15

ACADEMY.

16

(10) FOR A URBAN HIGH SCHOOL ACADEMY THAT IS AN EMPOWERMENT

17

ZONE SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT

18

AND ADMISSIONS PROCESS OF THE URBAN HIGH SCHOOL ACADEMY

19

INCORPORATED INTO THE CONTRACT FOR THE PUBLIC SCHOOL ACADEMY IS

20

CONSISTENT WITH ZONE ENROLLMENT PLAN UNDER PART 7C.

21

Sec. 528. (1) An authorizing body that issues a contract for

22

an urban high school academy under this part shall do all of the

23

following:

24
25
26
27

(a) Ensure that the contract and the application for the
contract comply with the requirements of this part AND PART 7C.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.

______'15

____

43

(c) Adopt a resolution establishing the method of selection,

length of term, and number of members of the board of directors of

each urban high school academy that it authorizes. The resolution

shall be written or amended as necessary to include a requirement

that each member of the board of directors must be a citizen of the

United States.

(d) Oversee the operations of each urban high school academy

operating under a contract issued by the authorizing body. The

oversight shall be sufficient to ensure that the urban high school

10

academy is in compliance with the terms of the contract and with

11

applicable law. An authorizing body may enter into an agreement

12

with 1 or more other authorizing bodies to oversee an urban high

13

school academy operating under a contract issued by the authorizing

14

body.

15

(e) Develop and implement a process for holding an urban high

16

school academy board of directors accountable for meeting

17

applicable academic performance standards set forth in the contract

18

and for implementing corrective action for an urban high school

19

academy that does not meet those standards.

20

(f) Take necessary measures to ensure that an urban high

21

school academy board of directors operates independently of any

22

educational management company involved in the operations of the

23

urban high school academy.

24

(g) Oversee and ensure that the pupil admission process used

25

by the urban high school academy is operated in a fair and open

26

manner and is in compliance with the contract and , this part AND

27

PART 7C.

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____

44

(h) Ensure that the board of directors of the urban high

school academy maintains and releases information as necessary to

comply with applicable law.

(2) An authorizing body may enter into an agreement with 1 or

more other authorizing bodies to carry out any function of an

authorizing body under this act.

(3) The authorizing body for an urban high school academy is

the fiscal agent for the urban high school academy. A state school

aid payment for an urban high school academy shall be paid to the

10

authorizing body that is the fiscal agent for that urban high

11

school academy, which shall then forward the payment to the urban

12

high school academy. Within 30 days after a contract is submitted

13

to the department by an authorizing body under subsection (1), the

14

department shall issue a district code to the urban high school

15

academy for which the contract was issued. If the department does

16

not issue a district code within 30 days after a contract is filed,

17

the state treasurer shall assign a temporary district code in order

18

for the urban high school academy to receive funding under the

19

state school aid act of 1979.

20

(4) A contract issued under this part may be revoked by the

21

authorizing body that issued the contract if the authorizing body

22

determines that 1 or more of the following have occurred:

23

(a) Failure of the urban high school academy to demonstrate

24

improved pupil academic achievement for all groups of pupils or

25

meet the educational goals set forth in the contract.

26
27

(b) Failure of the urban high school academy to comply with


all applicable law.

______'15

____

45

(c) Failure of the urban high school academy to meet generally

accepted public sector accounting principles and demonstrate sound

fiscal stewardship.

4
5
6

(d) The existence of 1 or more other grounds for revocation as


specified in the contract.
(5) Except for an urban high school academy that is an

alternative school serving a special student population, if the

superintendent of public instruction STATE SCHOOL REFORM/REDESIGN

OFFICER determines that an urban high school academy site that has

10

been operating for at least 4 years is among the lowest achieving

11

5% of all public schools in this state FOR 3 CONSECUTIVE YEARS, as

12

defined IN SECTION 1280C, for the purposes of the federal incentive

13

grant program created under sections 14005 and 14006 of title XIV

14

of the American recovery and reinvestment act of 2009, Public Law

15

111-5, is in year 2 of restructuring sanctions under the no child

16

left behind act of 2001, Public Law 107-110, not to include the ANY

17

individualized education plan subgroup, and is not currently

18

undergoing reconstitution under this section, the superintendent of

19

public instruction STATE SCHOOL REFORM/REDESIGN OFFICER shall

20

notify the urban high school academy's authorizing body. If an

21

authorizing body receives notice from the superintendent of public

22

instruction STATE SCHOOL REFORM/REDESIGN OFFICER under this

23

subsection, the authorizing body shall amend the urban high school

24

academy's contract to eliminate the urban high school academy's

25

authority to operate the existing age and grade levels at the site

26

and the urban high school academy shall cease operating the

27

existing age and grade levels at the site, effective at the end of

28

the current school year. If the urban high school academy operates
______'15

____

46

at only 1 site, and the authorizing body receives notice from the

superintendent of public instruction STATE SCHOOL REFORM/REDESIGN

OFFICER under this subsection, the authorizing body shall revoke

the urban high school academy's contract, effective at the end of

the current school year.

(6) FOR A URBAN HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE

SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN

AUTHORIZING BODY SHALL PERMIT AN EDUCATION MANAGER TO RECONSTITUTE

THE URBAN HIGH SCHOOL ACADEMY IF THE URBAN HIGH SCHOOL ACADEMY IS

10

LISTED ON THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR

11

THREE CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A

12

RECONSTITUTION PROVISION IN THE CONTRACT FOR THE URBAN HIGH SCHOOL

13

ACADEMY THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT

14

LIMITED TO, 1 OR MORE OF THE FOLLOWING:

15
16

(A) AUTOMATIC CANCELLATION OF A CONTRACT WITH AN EDUCATIONAL


MANAGEMENT ORGANIZATION.

17

(B) WITHDRAWAL OF APPROVAL OF A CONTRACT UNDER SECTION 506.

18

(C) AUTHORIZING AN EDUCATION MANAGER TO CONDUCT ON BEHALF OF

19

THE URBAN HIGH SCHOOL ACADEMY BOARD OF DIRECTORS A REQUEST FOR

20

PROPOSAL PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES

21

FOR THE URBAN HIGH SCHOOL ACADEMY.

22

(D) IF THE BUILDING IS SUBJECT TO A SUPERINTENDENT'S CLOSURE

23

ORDER UNDER PART 7C, A REQUEST FOR PROPOSAL PROCESS TO REMOVE AND

24

REPLACE, OR APPOINTING A NEW BOARD OF DIRECTORS OR A TRUSTEE TO

25

TAKE OVER OPERATION OF THE URBAN HIGH SCHOOL ACADEMY.

26

(7) NOTHING IN THIS SECTION PROHIBITS AN AUTHORIZING BODY FROM

27

RECONSTITUTING A URBAN HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT

28

ZONE SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS
______'15

____

47

THAT A URBAN HIGH SCHOOL ACADEMY IS LISTED ON THE LOWEST ACHIEVING

SCHOOLS LIST UNDER SECTION 1280C.

(6) (8) EXCEPT AS PROVIDED IN SECTION 522, The THE decision

of an authorizing body to issue, not issue, or reconstitute a

contract under this part, or to terminate or revoke a contract

under this section, is solely within the discretion of the

authorizing body, is final, and is not subject to review by a court

or any state agency. An authorizing body that issues, does not

issue, or reconstitutes a contract under this part, or that

10

terminates or revokes a contract under this section, is not liable

11

for that action to the urban high school academy, the urban high

12

school academy corporation, a pupil of the urban high school

13

academy, the parent or guardian of a pupil of the urban high school

14

academy, or any other person.

15

(7) (9) Except as otherwise provided in subsection (5), before

16

EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE an authorizing

17

body revokes OR ELECTS NOT TO REISSURE a contract, the authorizing

18

body may consider and take corrective measures to avoid revocation.

19

An authorizing body may reconstitute the urban high school academy

20

in a final attempt to improve student educational performance or to

21

avoid interruption of the educational process. An authorizing body

22

shall include a reconstituting provision in the contract that

23

identifies these corrective measures, including, but not limited

24

to, removing 1 or more members of the board of directors,

25

withdrawing approval to contract under section 527, or appointing a

26

new board of directors or a trustee to take over operation of the

27

urban high school academy.

______'15

____

48

(8) (10) If an authorizing body revokes a contract, the

authorizing body shall work with a school district or another

public school, or with a combination of these entities, to ensure a

smooth transition for the affected pupils. If the revocation occurs

during the school year, the authorizing body, as the fiscal agent

for the urban high school academy under this part, shall return any

school aid funds held by the authorizing body that are attributable

to the affected pupils to the state treasurer for deposit into the

state school aid fund. The state treasurer shall distribute funds

10

to the public school in which the pupils enroll after the

11

revocation pursuant to a methodology established by the department

12

and the center for educational performance and information.

13

(9) If an authorizing body revokes a contract issued under

14

this part, the authorizing body may issue a new contract within the

15

1-year period following the revocation without the new contract

16

counting toward the maximum number of contracts that may be issued

17

under this part.

18

(10) (11) Not more than 10 days after an urban high school

19

academy's contract terminates or is revoked, the authorizing body

20

shall notify the superintendent of public instruction in writing of

21

the name of the urban high school academy whose contract has

22

terminated or been revoked and the date of contract termination or

23

revocation.

24

(11) (12) If an urban high school academy's contract

25

terminates or is revoked, title to all real and personal property,

26

interest in real or personal property, and other assets owned by

27

the urban high school academy shall revert to the state. This

28

property shall be distributed in accordance with the following:


______'15

____

49

(a) Within 30 days following the termination or revocation,

the board of directors of an urban high school academy shall hold a

public meeting to adopt a plan of distribution of assets and to

approve the dissolution of the urban high school academy

corporation, all in accordance with chapter 8 of the nonprofit

corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.

(b) The urban high school academy shall file a certificate of

dissolution with the bureau of commercial services within 10

business days following board approval.

10

(c) Simultaneously with the filing of the certificate of

11

dissolution under subdivision (b), the urban high school academy

12

board of directors shall provide a copy of the board of directors'

13

plan of distribution of assets to the state treasurer for approval.

14

Within 30 days, the state treasurer, or his or her designee, shall

15

review and approve the board of directors' plan of distribution of

16

assets. If the proposed plan of distribution of assets is not

17

approved within 30 days, the state treasurer, or his or her

18

designee, shall provide the board of directors with an acceptable

19

plan of distribution of assets.

20

(d) The state treasurer, or his or her designee, shall monitor

21

the urban high school academy's winding up of the dissolved

22

corporation in accordance with the plan of distribution of assets

23

approved or provided under subdivision (c).

24

(e) As part of the plan of distribution of assets, the urban

25

high school academy board of directors shall designate the director

26

of the department of technology, management, and budget, or his or

27

her designee, to dispose of all real property of the urban high

28

school academy corporation in accordance with the directives


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50

developed for disposition of surplus land and facilities under

section 251 of the management and budget act, 1984 PA 431, MCL

18.1251.

(f) If the board of directors of an urban high school academy

fails to take any necessary action under this section, the state

treasurer, or his or her designee, may suspend the urban high

school academy board of directors and appoint a trustee to carry

out the board's plan of distribution of assets. Upon appointment,

the trustee shall have all the rights, powers, and privileges under

10

law that the urban high school academy board of directors had

11

before being suspended.

12

(g) Following the sale of the real or personal property or

13

interests in the real or personal property, and after payment of

14

any urban high school academy debt secured by the property or

15

interest in property, whether real or personal, the urban high

16

school academy board of directors, or a trustee appointed under

17

this section, shall forward any remaining money to the state

18

treasurer. Following receipt, the state treasurer, or his or her

19

designee, shall deposit this remaining money in the state school

20

aid fund.

21

Sec. 552. (1) SUBJECT TO SUBSECTION (22), An AN authorizing

22

body may issue contracts under this subsection to organize and

23

operate a school of excellence. All of the following apply to the

24

issuance of a contract by an authorizing body under this

25

subsection:

26

(a) The issuance of the contract must be approved by the

27

superintendent of public instruction. The superintendent of public

28

instruction shall approve issuance of a contract if he or she


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51

determines that the proposed school of excellence is modeled after

a high-performing school or program.

(b) The first 5 contracts issued by all authorizing bodies

under this subsection shall be for schools of excellence that offer

1 or more of high school grades 9 to 12, or any combination of

those grades, as specified in the contract.

(c) A school of excellence authorized under this subsection

shall not be located in a school district that has a graduation

rate of over 75%, on average, for the most recent 3 school years

10
11

for which the data are available, as determined by the department.


(2) Subject to the limitations in this subsection, and

12

subsection (14) AND SUBSECTION (22), an authorizing body may issue

13

contracts under this subsection for 1 or more schools of excellence

14

that are cyber schools. Until December 31, 2013, the combined total

15

number of contracts that may be issued by all statewide authorizing

16

bodies under this subsection for schools of excellence that are

17

cyber schools shall not exceed 5. Until December 31, 2014, the

18

combined total number of contracts that may be issued by all

19

statewide authorizing bodies under this subsection for schools of

20

excellence that are cyber schools shall not exceed 10. After

21

December 31, 2014, the combined total number of contracts issued by

22

all statewide authorizing bodies under this subsection for schools

23

of excellence that are cyber schools shall not exceed 15. The board

24

of a school district, an intermediate school board, the board of a

25

community college that is not a statewide authorizing body, or 2 or

26

more public agencies acting jointly as described in subsection

27

(6)(e) may not act as the authorizing body for more than 1 school

28

of excellence that is a cyber school. An authorizing body shall not


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52

issue a contract for a school of excellence that is a cyber school

unless the school of excellence that is a cyber school meets all of

the following requirements:

(a) Is available for enrollment to all pupils in this state.

(b) Offers some configuration of or all of grades K to 12.

(c) The entity applying for the school of excellence that is a

cyber school demonstrates experience in delivering a quality

education program that improves pupil academic achievement. In

determining whether this requirement is met, an authorizing body

10

shall refer to the standards for quality online learning

11

established by the national association of charter school

12

authorizers or other similar nationally recognized standards for

13

quality online learning.

14

(d) The enrollment in the school of excellence that is a cyber

15

school is limited to not more than 2,500 pupils in membership for

16

the first school year of operation of the school of excellence that

17

is a cyber school, not more than 5,000 pupils in membership for the

18

second school year of operation of the school of excellence that is

19

a cyber school, and not more than 10,000 pupils in membership for

20

the third and subsequent school years of operation of the school of

21

excellence that is a cyber school. As used in this subdivision,

22

"membership" means that term as defined in section 6 of the state

23

school aid act of 1979, MCL 388.1606.

24

(e) The school of excellence that is a cyber school offers

25

each pupil's family a computer and subsidizes the cost of internet

26

access.

27
28

(3) For a public school academy operating under part 6a that


meets the requirements of subsection (4), with the approval of its
______'15

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53

authorizing body, the board of directors of the public school

academy may adopt a resolution choosing to convert the public

school academy to a school of excellence under this part. If the

board of directors of a public school academy that meets the

requirements of subsection (4) is issued a contract as a school of

excellence under this subsection, all the following apply:

(a) The public school academy shall cease to operate as a

public school academy under part 6a and shall operate as a school

of excellence upon the issuance of a contract or at another time as

10
11

determined by the authorizing body.


(b) The public school academy shall be considered to be a

12

school of excellence for all purposes upon the issuance of a

13

contract or at another time as determined by the authorizing body,

14

but shall retain its corporate identity.

15

(c) The conversion of a public school academy under part 6a to

16

a school of excellence operating under this part shall not impair

17

any agreement, mortgage, loan, bond, note or other instrument of

18

indebtedness, or any other agreement entered into by a public

19

school academy while it was operating under part 6a.

20

(d) The contract issued to the public school academy under

21

part 6a shall automatically terminate upon the issuance of a

22

contract or at another time as determined by the authorizing body.

23

(4) Subsection (3) applies to a public school academy that is

24

determined by the department to meet all of the following, as

25

applicable:

26
27

(a) If the public school academy operates only some or all of


grades K to 8, meets at least 1 of the following:

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54

(i) On average over a 3-year period, at least 90% of the pupils

enrolled in the public school academy achieved a score of

proficient or better on the Michigan education assessment program

mathematics and reading tests or successor state assessment

program.

(ii) On average over a 3-year period, at least 70% of the

pupils enrolled in the public school academy achieved a score of

proficient or better on the Michigan education assessment program

mathematics and reading tests or successor state assessment program

10

and at least 50% of the pupils enrolled in the public school

11

academy met the income eligibility criteria for the federal free or

12

reduced-price lunch program, as determined under the Richard B.

13

Russell national school lunch act, 42 USC 1751 to 1769i, and

14

reported to the department.

15

(b) If the public school academy operates grades 9 to 12, at

16

least 80% of the school's pupils graduate from high school or are

17

determined by the department to be on track to graduate from high

18

school, the school has at least 80% average attendance, and the

19

school has at least an 80% postsecondary enrollment rate.

20

(5) A school of excellence shall be organized and administered

21

under the direction of a board of directors in accordance with this

22

part and with bylaws adopted by the board of directors. A school of

23

excellence shall be organized under the nonprofit corporation act,

24

1982 PA 162, MCL 450.2101 to 450.3192, except that a school of

25

excellence is not required to comply with sections 170 to 177 of

26

1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified

27

under the state or federal constitution, a school of excellence

28

shall not be organized by a church or other religious organization


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____

55

and shall not have any organizational or contractual affiliation

with or constitute a church or other religious organization.

(6) SUBJECT TO SUBSECTION (22), Any ANY of the following may

act as an authorizing body to issue a contract to organize and

operate 1 or more schools of excellence under this part:

(a) The board of a school district that operates grades K to

12. However, except as otherwise provided in this subdivision, the

board of a school district shall not issue a contract for a school

of excellence to operate outside the school district's boundaries,

10

and a school of excellence authorized by the board of a school

11

district shall not operate outside that school district's

12

boundaries. If the board of a school district issues a contract for

13

a school of excellence that is a cyber school, the contract may

14

authorize the school of excellence that is a cyber school to

15

operate outside that school district's boundaries. FOR PURPOSES OF

16

THIS PART, THE BOARD OF A SCHOOL DISTRICT DOES NOT INCLUDE A LOCAL

17

EDUCATION COMMISSION.

18

(b) An intermediate school board. However, except as otherwise

19

provided in this subdivision, the board of an intermediate school

20

district shall not issue a contract for a school of excellence to

21

operate outside the intermediate school district's boundaries, and

22

a school of excellence authorized by the board of an intermediate

23

school district shall not operate outside that intermediate school

24

district's boundaries. If the board of an intermediate school

25

district issues a contract for a school of excellence that is a

26

cyber school, the contract may authorize the school of excellence

27

that is a cyber school to operate outside that intermediate school

28

district's boundaries.
______'15

____

56

(c) The board of a community college. Except as otherwise

provided in this subdivision, the board of a community college

shall not issue a contract for a school of excellence to operate

outside the boundaries of the community college district, and a

school of excellence authorized by the board of a community college

shall not operate outside the boundaries of the community college

district. If the board of a community college issues a contract for

a school of excellence that is a cyber school, the contract may

authorize the school of excellence that is a cyber school to

10

operate outside the boundaries of the community college district.

11

The board of a community college also may issue a contract for not

12

more than 1 school of excellence to operate on the grounds of an

13

active or closed federal military installation located outside the

14

boundaries of the community college district, or may operate a

15

school of excellence itself on the grounds of such a federal

16

military installation, if the federal military installation is not

17

located within the boundaries of any community college district and

18

the community college has previously offered courses on the grounds

19

of the federal military installation for at least 10 years.

20

(d) The governing board of a state public university.

21

(e) Two or more of the public agencies described in

22

subdivisions (a) to (d) exercising power, privilege, or authority

23

jointly pursuant to an interlocal agreement under the urban

24

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

25

124.512.

26
27

(7) To obtain a contract to organize and operate 1 or more


schools of excellence, 1 or more persons or an entity may apply to

______'15

____

57

an authorizing body described in this section. The application

shall include at least all of the following:

(a) Identification of the applicant for the contract.

(b) Subject to the resolution adopted by the authorizing body

under section 553(4), a list of the proposed members of the board

of directors of the school of excellence and a description of the

qualifications and method for appointment or election of members of

the board of directors.

9
10

(c) The proposed articles of incorporation, which shall


include at least all of the following:

11

(i) The name of the proposed school of excellence.

12

(ii) The purposes for the school of excellence corporation.

13

This language shall provide that the school of excellence is

14

incorporated pursuant to this part and that the school of

15

excellence is a governmental entity.

16

(iii) The name of the authorizing body.

17

(iv) The proposed time when the articles of incorporation will

18
19
20

be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.

21

(d) A copy of the proposed bylaws of the school of excellence.

22

(e) Documentation meeting the application requirements of the

23

authorizing body, including at least all of the following:

24

(i) The governance structure of the school of excellence.

25

(ii) A copy of the educational goals of the school of

26

excellence and the curricula to be offered and methods of pupil

27

assessment to be used by the school of excellence. The educational

28

goals shall include demonstrated improved pupil academic


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58

achievement for all groups of pupils. To the extent applicable, the

progress of the pupils in the school of excellence shall be

assessed using at least a Michigan education assessment program

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

as applicable.

(iii) The admission policy and criteria to be maintained by the

school of excellence. The admission policy and criteria shall

comply with section 556. This part of the application also shall

include a description of how the applicant will provide to the

10

general public adequate notice that a school of excellence is being

11

created and adequate information on the admission policy, criteria,

12

and process.

13
14

(iv) Except for a school of excellence that is a cyber school,


the school calendar and school day schedule.

15

(v) The age or grade range of pupils to be enrolled.

16

(f) Descriptions of staff responsibilities and of the school

17
18

of excellence governance structure.


(g) For an application to the board of a school district, an

19

intermediate school board, or board of a community college,

20

identification of the school district and intermediate school

21

district in which the school of excellence will be located.

22

(h) An agreement that the school of excellence will comply

23

with the provisions of this part and, subject to the provisions of

24

this part, with all other state law applicable to public bodies and

25

with federal law applicable to public bodies or school districts.

26

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

27

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

28

applicant may request the authorizing body to issue a contract


______'15

____

59

allowing the board of directors of the school of excellence to

operate the same configuration of age or grade levels at more than

1 site.

(8) An authorizing body shall oversee, or shall contract with

an intermediate school district, community college, or state public

university to oversee, each school of excellence operating under a

contract issued by the authorizing body. The authorizing body is

responsible for overseeing compliance by the board of directors

with the contract and all applicable law. This subsection does not

10

relieve any other government entity of its enforcement or

11

supervisory responsibility.

12

(9) If the superintendent of public instruction finds that an

13

authorizing body is not engaging in appropriate continuing

14

oversight of 1 or more schools of excellence operating under a

15

contract issued by the authorizing body, the superintendent of

16

public instruction may suspend the power of the authorizing body to

17

issue new contracts to organize and operate schools of excellence.

18

A contract issued by the authorizing body during the suspension is

19

void. A contract issued by the authorizing body before the

20

suspension is not affected by the suspension.

21

(10) An authorizing body shall not charge a fee, or require

22

reimbursement of expenses, for considering an application for a

23

contract, for issuing a contract, or for providing oversight of a

24

contract for a school of excellence in an amount that exceeds a

25

combined total of 3% of the total state school aid received by the

26

school of excellence in the school year in which the fees or

27

expenses are charged. The authorizing body may provide other

28

services for a school of excellence and charge a fee for those


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60

services, but shall not require such an arrangement as a condition

to issuing the contract authorizing the school of excellence.

(11) A school of excellence shall be presumed to be legally

organized if it has exercised the franchises and privileges of a

public school academy for at least 2 years.

(12) A member of the board of directors of a school of

excellence is a public officer and shall, before entering upon the

duties of the office, take the constitutional oath of office for

public officers under section 1 of article XI of the state

10

constitution of 1963.

11

(13) A school of excellence that is a cyber school may make

12

available to other public schools for purchase any of the course

13

offerings that the cyber school offers to its own pupils.

14

(14) If the department determines that the combined total

15

statewide final audited membership for all pupils in membership in

16

schools of excellence that are cyber schools for the 2012-2013

17

state fiscal year exceeds a number equal to 1% of the combined

18

total statewide final audited membership for all pupils in

19

membership in public schools for the 2011-2012 state fiscal year,

20

then all of the following apply:

21

(a) An authorizing body may not issue a new contract for a new

22

school of excellence that is a cyber school to begin operations in

23

the 2013-2014 school year.

24

(b) A school of excellence that is a cyber school may not

25

enroll any new pupils in the school of excellence that is a cyber

26

school in the 2013-2014 school year.

27
28

(15) Beginning July 1, 2013, if the department determines that


the combined total statewide final audited membership for all
______'15

____

61

pupils in membership in schools of excellence that are cyber

schools for a state fiscal year exceeds a number equal to 2% of the

combined total statewide final audited membership for all pupils in

membership in public schools for the 2011-2012 state fiscal year,

then all of the following apply:

(a) Subject to subdivision (c), an authorizing body may not

issue a new contract for a new school of excellence that is a cyber

school to begin operations in a school year that begins after that

determination is made.

10

(b) Subject to subdivision (c), a school of excellence that is

11

a cyber school may not enroll any new pupils in the school of

12

excellence that is a cyber school in a school year that begins

13

after that determination is made.

14

(c) If the department determines that the combined total

15

statewide final audited membership for all pupils in membership in

16

schools of excellence that are cyber schools for a state fiscal

17

year does not exceed a number equal to 2% of the combined total

18

statewide final audited membership for all pupils in membership in

19

public schools for the 2011-2012 state fiscal year, then

20

subdivisions (a) and (b) do not apply for a school year that begins

21

after that determination is made unless the department makes a new

22

determination that the membership limits under this subsection have

23

been exceeded.

24

(16) For the purposes of subsections (14) and (15), not later

25

than July 1, 2012, and by not later than July 1 of each year

26

thereafter, the department shall determine the percentage of the

27

combined total statewide final audited membership for all pupils in

28

membership in public schools that are pupils in membership in


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____

62

schools of excellence that are cyber schools for the state fiscal

year that includes that July 1.

(17) As used in this section:

(a) "Membership" means that term as defined in section 6 of

the state school aid act of 1979, MCL 388.1606.

(b) "Statewide authorizing body" means the governing board of

a state public university or the board of a federal tribally

controlled community college that is recognized under the tribally

controlled colleges and universities assistance act of 1978, 25 USC

10

1801 to 1852, and is determined by the department to meet the

11

requirements for accreditation by a recognized regional accrediting

12

body.

13

(18) Not later than October 1, 2012, If a district, an

14

intermediate school district, a public school academy, or the

15

education achievement system offers online learning, the board or

16

board of directors of the district, intermediate school district,

17

or public school academy, or the education achievement system,

18

shall submit to the department a report that details the per-pupil

19

costs of operating the online learning. The report shall include,

20

on a per-pupil basis, at least all of the following costs:

21

(a) Textbooks, instructional materials, and supplies,

22
23
24

including electronic instructional material.


(b) Computer and other electronic equipment, including
internet and telephone access.

25

(c) Salaries and benefits for the online learning employees.

26

(d) Purchased courses and curricula.

27

(e) Fees associated with oversight and regulation.

______'15

____

63

1
2

(f) Travel costs associated with school activities and


testing.

(g) Facilities costs.

(h) Costs associated with special education.

(19) Not later than December 31, 2012, the department shall

issue a report to the legislature including the following:

(a) A review of the data submitted under subsection (14).

(b) A comparison with costs of substantially similar programs

9
10
11

in other states and relevant national research on the costs of


online learning.
(c) Any conclusions concerning factors or characteristics of

12

online learning programs that make a difference in the costs of

13

operating the programs.

14

(20) The board of directors of a school of excellence that is

15

a cyber school, or the board of a school district, intermediate

16

school district, or public school academy that operates an online

17

or other distance learning program, shall submit a monthly report

18

to the department, in the form and manner prescribed by the

19

department, that reports the number of pupils enrolled in the

20

school of excellence that is a cyber school, or in the online or

21

other distance learning program, during the immediately preceding

22

month.

23

(21) The board of directors of a school of excellence that is

24

a cyber school shall ensure that, when a pupil enrolls in the

25

school of excellence that is a cyber school, the pupil and his or

26

her parent or legal guardian are provided with a parent-student

27

orientation. If the pupil is at least age 18 or is an emancipated

28

minor, the orientation may be provided to just the pupil.


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____

64

(22) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW SCHOOL

OF EXCELLENCE TO OPERATE WITHIN A EMPOWERMENT ZONE, THE AUTHORIZING

BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION MANAGER FOR

THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 10 BUSINESS DAYS

OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY SHALL SUBMIT ITS

REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE

EDUCATION MANAGER SHALL APPROVE OR DENY THE REQUEST. THE DECISION

OF THE EDUCATION MANAGER TO DENY AN AUTHORIZING BODY'S REQUEST TO

ISSUE A CONTRACT FOR A NEW SCHOOL OF EXCELLENCE WITHIN THE

10

EMPOWERMENT ZONE UNDER THIS SUBSECTION IS FINAL AND NOT SUBJECT TO

11

APPEAL.

12

(23) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

13

APPROVAL OF AN EDUCATION MANAGER TO REVOKE OR TERMINATE AN EXISTING

14

SCHOOL OF EXCELLENCE CONTRACT.

15

(24) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

16

APPROVAL OF AN EDUCATION MANAGER TO REAUTHORIZE OR NOT REAUTHORIZE

17

AN EXISTING SCHOOL OF EXCELLENCE CONTRACT.

18

(25) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE

19

APPROVAL OF AN EDUCATION MANAGER FOR THE MERGER OR CONSOLIDATION OF

20

2 OR MORE PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE EMPOWERMENT

21

ZONE.

22

(26) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A SCHOOL OF

23

EXCELLENCE THAT IS A HIGH-PERFORMING SCHOOL OPERATING WITHIN A

24

EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF THE

25

EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW CONTRACT

26

FOR A SCHOOL OF EXCELLENCE IF THE EDUCATION MANAGER DETERMINES THAT

27

THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO REPLICATE THE

28

HIGH-PERFORMING SCHOOL.
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____

65

(27) A SCHOOL OF EXCELLENCE SCHOOL BUILDING THAT IS CLOSED BY

AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION, TERMINATION,

OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A SCHOOL OF

EXCELLENCE; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C;

OR CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY

PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE AVAILABLE FOR USE

BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE

BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT SCHOOL FISCAL

YEAR.

10

Sec. 556. (1) A school of excellence may be located in all or

11

part of an existing public school building. EXCEPT AS OTHERWISE

12

PROVIDED IN THIS SECTION, A A school of excellence, other than a

13

cyber school operated under section 553a, shall not operate at a

14

site other than the site or sites requested for the configuration

15

of age or grade levels that will use the site or sites, as

16

specified in the contract. Under a contract AND EXCEPT AS OTHERWISE

17

PROVIDED IN THIS SECTION, an authorizing body may permit a school

18

of excellence to operate the same configuration of age or grade

19

levels at more than 1 site, and a school of excellence may operate

20

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

21

as long as the school of excellence is operating in compliance with

22

its contract and is making measurable progress toward meeting its

23

educational goals. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,

24

For FOR a contract for a new school of excellence, an authorizing

25

body may permit a school of excellence to operate the same

26

configuration of age or grade levels at more than 1 site, and a

27

school of excellence may operate the same configuration of age or

28

grade levels at more than 1 site, if the applicant for the proposed
______'15

____

66

school of excellence presents documentation to the authorizing body

demonstrating that the applicant's proposed educational model has

resulted in schools making measurable progress toward meeting their

educational goals.

(2) A school of excellence shall not charge tuition and shall

not discriminate in its pupil admissions policies or practices on

the basis of intellectual or athletic ability, measures of

achievement or aptitude, status as a student with a disability, or

any other basis that would be illegal if used by a school district.

10

EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, However, a school of

11

excellence may limit admission to pupils who are within a

12

particular range of age or grade level or on any other basis that

13

would be legal if used by a school district and may give enrollment

14

priority as provided in subsection (4).

15

(3) Except for a foreign exchange student who is not a United

16

States citizen, a school of excellence shall not enroll a pupil who

17

is not a resident of this state. EXCEPT AS OTHERWISE PROVIDED IN

18

THIS SECTION, For FOR a school of excellence authorized by a school

19

district, intermediate school district, or community college,

20

enrollment in the school of excellence may be open to all

21

individuals who reside in this state who meet the admission policy

22

and shall be open to all pupils who reside within the geographic

23

boundaries of that authorizing body who meet the admission policy,

24

except that admission to a school of excellence authorized by the

25

board of a community college to operate, or operated by the board

26

of a community college, on the grounds of a federal military

27

installation, as described in section 552(6)(c), shall be open to

28

all pupils who reside in the county in which the federal military
______'15

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67

installation is located. EXCEPT AS OTHERWISE PROVIDED IN THIS

SECTION, For FOR a school of excellence authorized by a state

public university, enrollment shall be open to all pupils who

reside in this state who meet the admission policy. EXCEPT AS

OTHERWISE PROVIDED IN THIS SECTION, If IF there are more

applications to enroll in the school of excellence than there are

spaces available, pupils shall be selected to attend using a random

selection process. A school of excellence shall allow any pupil who

was enrolled in the school of excellence in the immediately

10

preceding school year to enroll in the school of excellence in the

11

appropriate grade unless the appropriate grade is not offered at

12

that school of excellence.

13
14

(4) A school of excellence may give enrollment priority to 1


or more of the following:

15

(a) A sibling of a pupil enrolled in the school of excellence.

16

(b) A pupil who transfers to the school of excellence from

17

another public school pursuant to a matriculation agreement between

18

the school of excellence and another public school that provides

19

for this enrollment priority, if all of the following requirements

20

are met:

21

(i) Each school of excellence or other public school that

22

enters into the matriculation agreement remains a separate and

23

independent public school.

24

(ii) The school of excellence that gives the enrollment

25

priority selects at least 5% of its pupils for enrollment using a

26

random selection process.

27
28

(iii) The matriculation agreement allows any pupil who was


enrolled at any time during elementary school in a public school
______'15

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68

that is party to the matriculation agreement and who was not

expelled from the public school to enroll in the school of

excellence giving enrollment priority under the matriculation

agreement.

(c) A child of a person who is employed by or at the school of

excellence or who is on the board of directors of the school of

excellence. As used in this subdivision, "child" includes an

adopted child or a legal ward.

(5) Subject to subsection (6), a school of excellence may

10

include any grade up to grade 12 or any configuration of those

11

grades, including kindergarten and early childhood education, as

12

specified in its contract. If specified in its contract, a school

13

of excellence may also operate an adult basic education program,

14

adult high school completion program, or general education

15

development testing preparation program. SUBJECT TO PART 7C, The

16

THE authorizing body may approve amendment of a contract with

17

respect to ages of pupils or grades offered.

18

(6) In addition to any other grade levels it operates, a

19

school of excellence shall work toward operating all of grades 9 to

20

12 within 6 years after it begins operations, unless a

21

matriculation agreement has been reached with another public school

22

that provides grades 9 to 12.

23

(7) If a school of excellence is a cyber school and its

24

authorizing body is a school district or intermediate school

25

district, the school of excellence shall give enrollment priority

26

to pupils who reside in the school district or intermediate school

27

district that is the authorizing body.

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69

(8) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A

SCHOOL OF EXCELLENCE THAT IS AN EMPOWERMENT ZONE SCHOOL, AN

AUTHORIZING BODY SHALL NOT APPROVE A SCHOOL OF EXCELLENCE TO ADD

ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE OR

GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE

EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A SCHOOL OF

EXCELLENCE'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE SCHOOL OF

EXCELLENCES AUTHORIZING BODY SHALL SUBMIT THE ADDITIONAL SITE

REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE

10

EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE REQUEST AS

11

CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES

12

PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL SITE REQUEST

13

AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE

14

FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER THIS

15

SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.

16

(9) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, AN

17

AUTHORIZING BODY THAT ISSUES A CONTRACT TO A SCHOOL OF EXCELLENCE

18

OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO OBTAIN THE

19

APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL SITE IF THE

20

EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE ADDITION

21

SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE IS FOR

22

THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS

23

SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE AN ADDITIONAL

24

SITE REQUEST FOR A SCHOOL OF EXCELLENCE.

25

(10) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A

26

SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE SCHOOL, AN

27

AUTHORIZING BODY SHALL NOT PERMIT A SCHOOL OF EXCELLENCE TO CHANGE

28

THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE SCHOOL OF


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70

EXCELLENCE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE

EMPOWERMENT ZONE IN WHICH THE SCHOOL OF EXCELLENCE IS LOCATED.

WITHIN 10 BUSINESS DAYS AFTER A SCHOOL OF EXCELLENCE'S APPROVAL OF

AN AGE OR GRADE RANGE CHANGE REQUEST, THE AUTHORIZING BODY FOR THE

SCHOOL OF EXCELLENCE SHALL SUBMIT THE SCHOOL OF EXCELLENCE'S AGE OR

GRADE RANGE CHANGE REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS

OF RECEIPT, THE EDUCATION MANAGER SHALL, APPROVE THE REQUEST AS

CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES

PLAN FOR THE EMPOWERMENT ZONE OR DENY THE REQUEST AS INCONSISTENT

10

WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE

11

DECISION OF AN EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND

12

NOT SUBJECT TO APPEAL.

13

(11) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A SCHOOL

14

OF EXCELLENCE OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO

15

OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE THE

16

CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING SCHOOL.

17

NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE

18

AN AGE OR GRADE RANGE REQUEST FOR A SCHOOL OF EXCELLENCE.

19

(12) FOR A SCHOOL OF EXCELLENCE THAT IS AN EMPOWERMENT ZONE

20

SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT AND

21

ADMISSIONS PROCESS OF THE SCHOOL OF EXCELLENCE INCORPORATED INTO

22

THE CONTRACT FOR THE SCHOOL OF EXCELLENCE IS CONSISTENT WITH ZONE

23

ENROLLMENT PLAN UNDER PART 7C.

24

Sec. 561. (1) If an authorizing body issues a contract for a

25

school of excellence under this part, the authorizing body shall do

26

all of the following:

27
28

(a) Ensure that the contract and the application for the
contract comply with the requirements of this part AND PART 7C.
______'15

____

71

1
2
3

(b) Within 10 days after issuing the contract, submit to the


department a copy of the contract.
(c) Establish the method of selection, length of term, and

number of members of the board of directors of each school of

excellence that it authorizes. The authorizing body shall ensure

that the board of directors includes representation from the local

community.

8
9

(d) Oversee the operations of each school of excellence


operating under a contract issued by the authorizing body. The

10

oversight shall be sufficient to ensure that the school of

11

excellence is in compliance with the terms of the contract and with

12

applicable law. This subdivision does not relieve any other

13

governmental entity of its enforcement or supervisory

14

responsibility.

15

(e) Develop and implement a process for holding a school of

16

excellence board of directors accountable for meeting applicable

17

academic performance standards set forth in the contract and for

18

implementing corrective action for a school of excellence that does

19

not meet those standards.

20

(f) Take necessary measures to ensure that a school of

21

excellence board of directors operates independently of any

22

educational management organization involved in the operations of

23

the school of excellence.

24

(g) Oversee and ensure that the pupil admission process used

25

by the school of excellence is operated in a fair and open manner

26

and is in compliance with the contract and , this part AND PART 7C.

______'15

____

72

(h) Ensure that the board of directors of the school of

excellence maintains and releases information as necessary to

comply with applicable law.

(2) The authorizing body may enter into an agreement with 1 or

more authorizing bodies, as defined under part 6a, to carry out any

function of the authorizing body under subsection (1)(a) to (h).

(3) The authorizing body for a school of excellence is the

fiscal agent for the school of excellence. A state school aid

payment for a school of excellence shall be paid to the authorizing

10

body as the fiscal agent for that school of excellence, and the

11

authorizing body shall then forward the payment to the school of

12

excellence. Within 30 days after a contract is submitted to the

13

department by the authorizing body under subsection (1), the

14

department shall issue a district code to the school of excellence

15

for which the contract was issued. If the department does not issue

16

a district code within 30 days after a contract is filed, the state

17

treasurer shall assign a temporary district code in order for the

18

school of excellence to receive funding under the state school aid

19

act of 1979.

20

(4) A contract issued under this part may be revoked by the

21

authorizing body if the authorizing body determines that 1 or more

22

of the following have occurred:

23

(a) Failure of the school of excellence to demonstrate

24

improved pupil academic achievement for all groups of pupils or

25

meet the educational goals set forth in the contract.

26
27

(b) Failure of the school of excellence to comply with all


applicable law.

______'15

____

73

(c) Failure of the school of excellence to meet generally

accepted public sector accounting principles and demonstrate sound

fiscal stewardship.

4
5
6

(d) The existence of 1 or more other grounds for revocation as


specified in the contract.
(5) Except for a school of excellence that is an alternative

school serving a special student population, if the superintendent

of public instruction STATE SCHOOL REFORM/REDESIGN OFFICER

determines that a school of excellence site that has been operating

10

for at least 4 years is among the lowest achieving 5% of all public

11

schools in this state FOR 3 CONSECUTIVE YEARS, as defined IN

12

SECTION 1280C, for the purposes of the federal incentive grant

13

program created under sections 14005 and 14006 of title XIV of the

14

American recovery and reinvestment act of 2009, Public Law 111-5,

15

is in year 2 of restructuring sanctions under the no child left

16

behind act of 2001, Public Law 107-110, not to include the ANY

17

individualized education plan subgroup, and is not currently

18

undergoing reconstitution under this section, the superintendent of

19

public instruction STATE SCHOOL REFORM/REDESIGN OFFICER shall

20

notify the school of excellence's authorizing body. If an

21

authorizing body receives notice from the superintendent of public

22

instruction STATE SCHOOL REFORM/REDESIGN OFFICER under this

23

subsection, the authorizing body shall amend the school of

24

excellence's contract to eliminate the school of excellence's

25

authority to operate the existing age and grade levels at the site

26

and the school of excellence shall cease operating the existing age

27

and grade levels at the site, effective at the end of the current

28

school year. If the school of excellence operates at only 1 site or


______'15

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74

is a cyber school, and the authorizing body receives notice from

the superintendent of public instruction STATE SCHOOL

REFORM/REDESIGN OFFICER under this subsection, the authorizing body

shall revoke the school of excellence's contract, effective at the

end of the current school year.

(6) FOR A SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE

SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN

AUTHORIZING BODY SHALL PERMIT AN EDUCATION MANAGER TO RECONSTITUTE

THE SCHOOL OF EXCELLENCE IF THE SCHOOL OF EXCELLENCE IS LISTED ON

10

THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR THREE

11

CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A

12

RECONSTITUTION PROVISION IN THE CONTRACT FOR THE SCHOOL OF

13

EXCELLENCE THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT

14

LIMITED TO, 1 OR MORE OF THE FOLLOWING:

15
16

(A) AUTOMATIC CANCELLATION OF A CONTRACT WITH AN EDUCATIONAL


MANAGEMENT ORGANIZATION.

17

(B) WITHDRAWAL OF APPROVAL OF A CONTRACT UNDER SECTION 506.

18

(C) AUTHORIZING AN EDUCATION MANAGER TO CONDUCT ON BEHALF OF

19

THE SCHOOL OF EXCELLENCE BOARD OF DIRECTORS A REQUEST FOR PROPOSAL

20

PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES FOR THE

21

SCHOOL OF EXCELLENCE.

22

(D) IF THE BUILDING IS SUBJECT TO A SUPERINTENDENT'S CLOSURE

23

ORDER UNDER PART 7C, A REQUEST FOR PROPOSAL PROCESS TO REMOVE AND

24

REPLACE, OR APPOINTING A NEW BOARD OF DIRECTORS OR A TRUSTEE TO

25

TAKE OVER OPERATION OF THE SCHOOL OF EXCELLENCE.

26

(7) NOTHING IN THIS SECTION PROHIBITS AN AUTHORIZING BODY FROM

27

RECONSTITUTING A SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE

28

SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS THAT
______'15

____

75

A SCHOOL OF EXCELLENCE IS LISTED ON THE LOWEST ACHIEVING SCHOOLS

LIST UNDER SECTION 1280C.

(6) (8) Except AS PROVIDED IN SECTION 552 AND EXCEPT for a

contract issued by a school district pursuant to a vote by the

school electors on a ballot question under section 553(2), the

decision of the authorizing body to issue, not issue, or

reconstitute a contract under this part, or to terminate or revoke

a contract under this section, is solely within the discretion of

the authorizing body, is final, and is not subject to review by a

10

court or any other state agency. If the authorizing body issues,

11

does not issue, or reconstitutes a contract under this part, or

12

terminates or revokes a contract under this section, the

13

authorizing body is not liable for that action to the school of

14

excellence, the school of excellence corporation, a pupil of the

15

school of excellence, the parent or guardian of a pupil of the

16

school of excellence, or any other person.

17

(7) (9) Except as otherwise provided in subsection (5), before

18

EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE the

19

authorizing body revokes OR ELECTS NOT TO REISSUE a contract, the

20

authorizing body may consider and take corrective measures to avoid

21

revocation. The authorizing body may reconstitute the school of

22

excellence in a final attempt to improve student educational

23

performance or to avoid interruption of the educational process.

24

The authorizing body shall include a reconstituting provision in

25

the contract that identifies these corrective measures, including,

26

but not limited to, canceling a contract with an educational

27

management organization, if any, withdrawing approval to contract

______'15

____

76

under section 560, or appointing a new board of directors or a

trustee to take over operation of the school of excellence.

(8) (10) If the authorizing body revokes a contract, the

authorizing body shall work with a school district or another

public school, or with a combination of these entities, to ensure a

smooth transition for the affected pupils. If the revocation occurs

during the school year, the authorizing body, as the fiscal agent

for the school of excellence under this part, shall return any

school aid funds held by the authorizing body that are attributable

10

to the affected pupils to the state treasurer for deposit into the

11

state school aid fund. The state treasurer shall distribute funds

12

to the public school in which the pupils enroll after the

13

revocation pursuant to a methodology established by the department

14

and the center for educational performance and information.

15

(9) (11) Not more than 10 days after a school of excellence's

16

contract terminates or is revoked, the authorizing body shall

17

notify the superintendent of public instruction in writing of the

18

name of the school of excellence whose contract has terminated or

19

been revoked and the date of contract termination or revocation.

20

(10) (12) If a school of excellence's contract terminates or

21

is revoked, title to all real and personal property, interest in

22

real or personal property, and other assets owned by the school of

23

excellence shall revert to the state. This property shall be

24

distributed in accordance with the following:

25

(a) Within 30 days following the termination or revocation,

26

the board of directors of a school of excellence shall hold a

27

public meeting to adopt a plan of distribution of assets and to

28

approve the dissolution of the school of excellence corporation,


______'15

____

77

all in accordance with chapter 8 of the nonprofit corporation act,

1982 PA 162, MCL 450.2801 to 450.2864.

(b) The school of excellence shall file a certificate of

dissolution with the bureau of commercial services within 10

business days following board approval.

(c) Simultaneously with the filing of the certificate of

dissolution under subdivision (b), the school of excellence board

of directors shall provide a copy of the board of directors' plan

of distribution of assets to the state treasurer for approval.

10

Within 30 days, the state treasurer, or his or her designee, shall

11

review and approve the board of directors' plan of distribution of

12

assets. If the proposed plan of distribution of assets is not

13

approved within 30 days, the state treasurer, or his or her

14

designee, shall provide the board of directors with an acceptable

15

plan of distribution of assets.

16

(d) The state treasurer, or his or her designee, shall monitor

17

the school of excellence's winding up of the dissolved corporation

18

in accordance with the plan of distribution of assets approved or

19

provided under subdivision (c).

20

(e) As part of the plan of distribution of assets, the school

21

of excellence board of directors shall designate the director of

22

the department of technology, management, and budget, or his or her

23

designee, to dispose of all real property of the school of

24

excellence corporation in accordance with the directives developed

25

for disposition of surplus land and facilities under section 251 of

26

the management and budget act, 1984 PA 431, MCL 18.1251.

27
28

(f) If the board of directors of a school of excellence fails


to take any necessary action under this section, the state
______'15

____

78

treasurer, or his or her designee, may suspend the school of

excellence board of directors and appoint a trustee to carry out

the board's plan of distribution of assets. Upon appointment, the

trustee shall have all the rights, powers, and privileges under law

that the school of excellence board of directors had before being

suspended.

(g) Following the sale of the real or personal property or

interests in the real or personal property, and after payment of

any school of excellence debt secured by the property or interest

10

in property, whether real or personal, the school of excellence

11

board of directors, or a trustee appointed under this section,

12

shall forward any remaining money to the state treasurer. Following

13

receipt, the state treasurer, or his or her designee, shall deposit

14

this remaining money in the state school aid fund.

15

PART 7C

16

EMPOWERMENT ZONES

17

SEC. 771. (1) A EMPOWERMENT ZONE IS A BODY CORPORATE AND SHALL

18

BE GOVERNED BY THIS PART AND BY THOSE PROVISIONS OF ARTICLES 2, 3,

19

AND 4 APPLICABLE TO EMPOWERMENT ZONES, LOCAL EDUCATION COMMISSIONS,

20

EMPOWERMENT ZONE SCHOOLS, EMPOWERMENT ZONE SCHOOL BOARDS AND

21

EDUCATION MANAGERS.

22

(2) A EMPOWERMENT ZONE IS A SCHOOL DISTRICT FOR THE PURPOSE OF

23

RECEIVING AID FROM THE STATE SCHOOL AID FUND UNDER SECTION 11 OF

24

ARTICLE IX OF THE STATE CONSTITUTION OF 1963.

25
26
27
28

(3) EACH EMPOWERMENT ZONE SHALL EMPLOY A EMPOWERMENT ZONE


EDUCATION MANAGER.
SEC. 772. (1) A EMPOWERMENT ZONE HAS ALL OF THE RIGHTS,
POWERS, AND DUTIES EXPRESSLY STATED IN THIS ACT; MAY EXERCISE A
______'15

____

79

POWER IMPLIED OR INCIDENT TO ANY POWER EXPRESSLY STATED IN THIS

ACT; AND, EXCEPT AS PROVIDED BY LAW, MAY EXERCISE A POWER

INCIDENTAL OR APPROPRIATE TO THE PERFORMANCE OF ANY FUNCTION

RELATED TO THE OPERATION OF THE EMPOWERMENT ZONE IN THE INTERESTS

OF PUBLIC ELEMENTARY AND SECONDARY EDUCATION LOCATED WITHIN A

EMPOWERMENT ZONE CREATED UNDER THIS PART, INCLUDING, IMPLEMENTATION

OF THE FOLLOWING:

(A) A ZONE ACCOUNTABILITY PLAN.

(B) A ZONE FACILITIES PLAN.

10

(C) A ZONE ENROLLMENT PLAN.

11

(D) HIRING OR CONTRACTING WITH PERSONNEL AS NECESSARY FOR THE

12

EDUCATION MANAGER TO CARRY OUT THE ZONE ACCOUNTABILITY PLAN, ZONE

13

FACILITIES PLAN, AND ZONE ENROLLMENT PLAN, OR ANY REQUEST FOR

14

PROPOSAL PROCESS AUTHORIZED UNDER THIS PART. A EMPOWERMENT ZONE MAY

15

INDEMNIFY ITS EMPLOYEES.

16

(E) PROCURING APPROPRIATE GOODS AND SERVICES IN KINDS AND

17

AMOUNTS NECESSARY TO CARRY OUT THE PURPOSES OF THE EMPOWERMENT

18

ZONE.

19

(F) PROCURING INSURANCE FOR THE EMPOWERMENT ZONE, LOCAL

20

EDUCATION COMMISSION AND ITS EMPLOYEES AND CONTRACTORS IN TYPES AND

21

AMOUNTS NECESSARY TO OPERATE THE EMPOWERMENT ZONE.

22

(G) RECEIVING, ACCOUNTING FOR, INVESTING, OR EXPENDING

23

EMPOWERMENT ZONE MONEY; BORROWING MONEY AND PLEDGING EMPOWERMENT

24

ZONE FUNDS FOR REPAYMENT; AND QUALIFYING FOR STATE SCHOOL AID AND

25

OTHER PUBLIC OR PRIVATE MONEY FROM LOCAL, REGIONAL, STATE, OR

26

FEDERAL SOURCES.

27
28

(H) ADMINISTERING A RECONSTITUTION REQUEST FOR PROPOSAL


PROCESS.
______'15

____

80

1
2
3

(I) ADMINISTERING A REMOVE AND REPLACE REQUEST FOR PROPOSAL


PROCESS.
(2) A EMPOWERMENT ZONE MAY ENTER INTO AGREEMENTS OR

COOPERATIVE ARRANGEMENTS WITH OTHER PUBLIC SCHOOLS, AUTHORIZING

BODIES AND OTHER ENTITIES, PUBLIC OR PRIVATE, OR JOIN ORGANIZATIONS

AS PART OF PERFORMING THE FUNCTIONS OF THE EMPOWERMENT ZONE. AN

AGREEMENT OR COOPERATIVE ARRANGEMENT THAT IS ENTERED INTO UNDER

THIS PART IS NOT REQUIRED TO COMPLY WITH THE PROVISIONS OF THE

URBAN COOPERATION ACT OF 1967, 1967 (EX SESS) PA 7, MCL 124.501 TO

10

124.512, AS PROVIDED UNDER SECTION 503 OF THAT ACT, MCL 124.503.

11

(3) UNLESS OTHERWISE EXPRESSLY PROVIDED IN THIS ACT, A

12

EMPOWERMENT ZONE SHALL NOT DIRECTLY OPERATE A PUBLIC SCHOOL OR

13

PROVIDE EDUCATIONAL SERVICES TO ANY PUPIL ATTENDING A EMPOWERMENT

14

ZONE SCHOOL.

15

(4) A EMPOWERMENT ZONE, LOCAL EDUCATION COMMISSION,

16

EMPOWERMENT ZONE SCHOOL BOARD, EDUCATION MANAGER, EMPOWERMENT ZONE

17

EMPLOYEES, CONTRACTORS AND AGENTS SHALL TREAT ALL EMPOWERMENT ZONE

18

SCHOOLS, AND PUPILS ATTENDING EMPOWERMENT ZONE SCHOOLS, FAIRLY AND

19

EQUALLY AND SHALL NOT MAKE DECISIONS THAT FAVOR ONE EMPOWERMENT

20

ZONE SCHOOL OR PUPIL OVER ANOTHER EMPOWERMENT ZONE SCHOOL OR PUPIL,

21

OR THAT DISADVANTAGE OR DISCRIMINATE AGAINST ONE TYPE OF

22

EMPOWERMENT ZONE SCHOOL OR PUPIL.

23

SEC. 773. (1) A EMPOWERMENT ZONE SHALL BE ORGANIZED TO OPERATE

24

WITHIN THE GEOGRAPHICAL BOUNDARIES OF AN EMPOWERED DISTRICT AND THE

25

CONTIGUOUS BOUNDARIES OF THE EMPOWERED DISTRICT INCLUDED WITHIN THE

26

EMPOWERMENT ZONE UNDER THIS PART. A EMPOWERMENT ZONE IS

27

AUTOMATICALLY FORMED FOR AN EDUCATION DISTRICT AND THE CONTIGUOUS

28

BOUNDARIES OF THE EDUCATION DISTRICT INCLUDED WITHIN THE


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____

81

EMPOWERMENT ZONE FOR THE EDUCATION DISTRICT UNDER THIS PART AND FOR

A SCHOOL DISTRICT AND THE CONTIGUOUS BOUNDARIES OF THE SCHOOL

DISTRICT INCLUDED WITHIN THE EMPOWERMENT ZONE FOR THE SCHOOL

DISTRICT UNDER THIS PART UPON THE DESIGNATION OF THE SCHOOL

DISTRICT AS AN EMPOWERED DISTRICT UNDER THIS SECTION.

6
7

(2) A SCHOOL DISTRICT OTHER THAN AN EDUCATION DISTRICT BECOMES


AN EMPOWERED DISTRICT IF ANY OF THE FOLLOWING OCCURS:

(A) THE SUPERINTENDENT OF PUBLIC INSTRUCTION, THE STATE

TREASURER, OR THE STATE SCHOOL REFORM/REDESIGN OFFICER DETERMINES

10

THAT SCHOOL DISTRICT IS NOT FINANCIALLY VIABLE AND IS UNABLE TO

11

EDUCATE PUPILS IN GRADES K-12 RESIDING IN THE SCHOOL DISTRICT BY

12

OPERATING SCHOOLS FOR A FULL SCHOOL YEAR AND PROVIDING THE REQUIRED

13

NUMBER OF INSTRUCTIONAL HOURS UNDER THIS ACT AND THE STATE SCHOOL

14

AID ACT OF 1979. AS USED IN THIS SUBDIVISION "FINANCIALLY VIABLE"

15

MEANS THAT A SCHOOL DISTRICT HAS THE FINANCIAL RESOURCES TO CARRY

16

OUT AT LEAST THE EDUCATIONAL PROGRAM REQUIRED BY LAW AND PAY ITS

17

EXISTING DEBTS AS THEY BECOME DUE TAKING INTO CONSIDERATION THE

18

PROJECTED ENROLLMENT, CASH FLOW, REVENUES, AND BORROWING CAPABILITY

19

OF THE SCHOOL DISTRICT.

20
21
22
23
24

(B) THE SCHOOL BOARD OF A SCHOOL DISTRICT ADOPTS A RESOLUTION


DESIGNATING THE SCHOOL DISTRICT AS AN EMPOWERED DISTRICT.
(C) THE SCHOOL DISTRICT IS DESIGNATED AS AN EMPOWERED DISTRICT
UNDER SUBSECTION (3).
(3) A SCHOOL DISTRICT RESIDENT MAY FILE A WRITTEN REQUEST WITH

25

THE BOARD OF THE SCHOOL DISTRICT TO DESIGNATE THE SCHOOL DISTRICT

26

AS AN EMPOWERED DISTRICT. IF THE SCHOOL DISTRICT BOARD DOES NOT

27

APPROVE THE REQUEST TO DESIGNATE THE SCHOOL DISTRICT AS AN

28

EMPOWERED DISTRICT, SCHOOL DISTRICT ELECTORS MAY PETITION THE BOARD


______'15

____

82

TO SUBMIT THE QUESTION OF DESIGNATING THE SCHOOL DISTRICT AS AN

EMPOWERED DISTRICT TO THE ELECTORS OF THE SCHOOL DISTRICT. A

PETITION UNDER THIS SUBSECTION SHALL INCLUDE A WRITTEN REQUEST TO

DESIGNATE THE SCHOOL DISTRICT AS AN EMPOWERED DISTRICT AND MUST BE

SIGNED BY A NUMBER OF SCHOOL ELECTORS OF THE SCHOOL DISTRICT EQUAL

TO AT LEAST 5% OF THE TOTAL NUMBER OF SCHOOL ELECTORS OF THAT

SCHOOL DISTRICT. THE PETITION SHALL BE FILED WITH THE SCHOOL

DISTRICT FILING OFFICIAL. IF THE BOARD RECEIVES A PETITION

SATISFYING THE REQUIREMENTS OF THIS SUBSECTION, THE BOARD SHALL

10

HAVE THE QUESTION OF DESIGNATING THE SCHOOL DISTRICT AS AN

11

EMPOWERED DISTRICT PLACED ON THE BALLOT AT ITS NEXT REGULAR SCHOOL

12

ELECTION HELD AT LEAST 60 DAYS AFTER RECEIVING THE PETITION. IF A

13

MAJORITY OF THE SCHOOL ELECTORS OF THE SCHOOL DISTRICT VOTING ON

14

THE QUESTION VOTE IF FAVOR OF DESIGNATING THE SCHOOL DISTRICT AS AN

15

EDUCATION SCHOOL DISTRICT, THE SUPERINTENDENT OF PUBLIC INSTRUCTION

16

SHALL ISSUE AN ORDER ORGANIZING THE EMPOWERMENT ZONE FOR THE

17

EMPOWERED DISTRICT AND ITS CONTIGUOUS AREAS UNDER THIS PART WITHIN

18

30 DAYS AFTER THE VOTE IS CERTIFIED.

19

(4) IF A EMPOWERMENT ZONE IS CREATED UNDER SUBSECTION (2), ALL

20

OF THE FOLLOWING SCHOOL BUILDINGS SHALL BE CONSIDERED EMPOWERMENT

21

ZONE SCHOOLS SUBJECT TO THE POWERS OF AN EDUCATION MANAGER FOR THE

22

EMPOWERMENT ZONE UNDER THIS PART:

23

(A) FOR AN EMPOWERED DISTRICT THAT IS AN EDUCATION DISTRICT,

24

ALL PUBLIC SCHOOL BUILDINGS OF THE EDUCATION DISTRICT, ALL SCHOOL

25

BUILDINGS OF ANY PUBLIC SCHOOL ACADEMY LOCATED WITHIN THE

26

GEOGRAPHICAL BOUNDARIES OF THE EDUCATION DISTRICT, AND ALL SCHOOL

27

BUILDINGS OF A SCHOOL DISTRICT, OR ANY PUBLIC SCHOOL ACADEMY

28

LOCATED IN THAT SCHOOL DISTRICT, WITH A CONTIGUOUS BOUNDARY LINE


______'15

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83

WITH THE EDUCATION DISTRICT AND WHOSE PUPIL MEMBERSHIP COUNT AFTER

THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SECTION,

AS OF THE MOST RECENT PUPIL MEMBERSHIP COUNT, INCLUDES MORE THAN

FIFTY PERCENT OF ITS PUPILS WHO ARE RESIDENTS OF THE EDUCATION

SCHOOL DISTRICT. A SCHOOL DISTRICT THAT HAS A CONTIGUOUS BOUNDARY

LINE WITH THE EDUCATION DISTRICT, AND THAT INCLUDES MORE THAN FIFTY

PERCENT OF ITS PUPILS RESIDING IN THE EDUCATION DISTRICT, IS

SUBJECT TO THE EMPOWERMENT ZONE ACCOUNTABILITY PLAN BUT IS NOT

SUBJECT TO CLOSE AND REPLACE BY THE EDUCATION MANAGER FOR THE

10
11

EMPOWERMENT ZONE.
(B) FOR AN EMPOWERED DISTRICT THAT IS NOT AN EDUCATION

12

DISTRICT, ALL SCHOOL BUILDINGS OF THAT EMPOWERED DISTRICT, ALL

13

SCHOOL BUILDINGS OF ANY PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE

14

GEOGRAPHICAL BOUNDARIES OF THE EMPOWERED DISTRICT, AND ALL SCHOOL

15

BUILDINGS OF ANOTHER SCHOOL DISTRICT, OR ANY PUBLIC SCHOOL ACADEMY

16

LOCATED IN THAT OTHER SCHOOL DISTRICT, THAT HAS A CONTIGUOUS

17

BOUNDARY LINE WITH THE EMPOWERED DISTRICT AND WHOSE PUPIL

18

MEMBERSHIP COUNT AFTER THE EFFECTIVE DATE OF THE AMENDATORY ACT

19

THAT ADDED THIS SECTION, AS OF THE MOST RECENT PUPIL MEMBERSHIP

20

COUNT, INCLUDES MORE THAN FIFTY PERCENT OF ITS PUPILS WHO ARE

21

RESIDENTS OF THE EMPOWERED DISTRICT. A SCHOOL DISTRICT THAT HAS A

22

CONTIGUOUS BOUNDARY LINE WITH THE EMPOWERED DISTRICT SHALL, AND

23

THAT INCLUDES MORE THAN FIFTY PERCENT OF ITS PUPILS RESIDING IN THE

24

EMPOWERED DISTRICT, IS SUBJECT TO THE EMPOWERMENT ZONE

25

ACCOUNTABILITY PLAN BUT IS NOT SUBJECT TO CLOSE AND REPLACE BY THE

26

EDUCATION MANAGER.

27
28

(C) A SCHOOL BUILDING OCCUPIED BY THE EDUCATION ACHIEVEMENT


AUTHORITY, AND ANY SCHOOL BUILDING OCCUPIED BY A PUBLIC SCHOOL
______'15

____

84

ACADEMY AUTHORIZED BY THE EDUCATIONAL ACHIEVEMENT AUTHORITY, IS A

EMPOWERMENT ZONE SCHOOL.

SEC. 774. A EMPOWERMENT ZONE IS A BODY CORPORATE GOVERNED BY A

BOARD, TO BE KNOWN AS "THE LOCAL EDUCATION COMMISSION OF THE

____________ SCHOOL EMPOWERMENT ZONE," AND UNDER THAT NAME MAY SUE

AND BE SUED.

SEC. 775. (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A

EMPOWERMENT ZONE SHALL BE UNDER THE SUPERVISION AND CONTROL OF A

LOCAL EDUCATION COMMISSION COMPOSED OF 5 MEMBERS APPOINTED UNDER

10

THIS PART AND THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE WHO

11

SHALL SERVE AS AN EX OFFICIO, NO-VOTING MEMBER OF THE LOCAL

12

EDUCATION COMMISSION.

13

(2) WITHIN 30 DAYS OF THE ISSUANCE OF THE CREATION OF A

14

EMPOWERMENT ZONE, THE MAYOR OF THE LARGEST CITY WITHIN THE

15

EMPOWERMENT ZONE SHALL APPOINT 2 MEMBERS OF THE LOCAL EDUCATION

16

COMMISSION FOR THE EMPOWERMENT ZONE AND THE GOVERNOR SHALL APPOINT

17

3 MEMBERS. OF THE INITIAL APPOINTMENTS, UNDER THIS SUBSECTION, 1

18

MEMBER APPOINTED BY THE MAYOR SHALL BE APPOINTED FOR A TERM OF 3

19

YEARS, 1 MEMBER APPOINTED BY THE MAYOR SHALL BE APPOINTED FOR A

20

TERM OF 2 YEARS, 1 MEMBER APPOINTED BY THE GOVERNOR SHALL BE

21

APPOINTED FOR A TERM OF 2 YEARS, 1 MEMBER APPOINTED BY THE GOVERNOR

22

SHALL BE APPOINTED FOR A TERM OF 3 YEARS, AND 1 MEMBER APPOINTED BY

23

THE GOVERNOR SHALL BE APPOINTED FOR A TERM OF 4 YEARS. AFTER THE

24

EXPIRATION OF THE INITIAL TERMS, MEMBERS SHALL BE APPOINTED FOR A

25

TERM OF 4 YEARS. A VACANCY IN THE OFFICE OF A MEMBER OF A LOCAL

26

EDUCATION COMMISSION SHALL BE FILLED IN THE SAME MANNER AS THE

27

ORIGINAL APPOINTMENT WITHIN 30 DAYS OF THE VACANCY. A VACANCY

28

ARISING BEFORE THE END OF A TERM SHALL BE FILLED FOR THE BALANCE OF
______'15

____

85

THE UNEXPIRED TERM. NOTWITHSTANDING ANY CONTRACT, BYLAW, CHARTER OR

ORDINANCE, AN APPOINTMENT BY A MAYOR UNDER THIS SUBSECTION IS NOT

SUBJECT TO APPROVAL OR DISAPPROVAL BY ANY OTHER PUBLIC BODY OR

OFFICER. IF A MAYOR FAILS TO MAKE AN APPOINTMENT WITHIN THE TIME

REQUIRED UNDER THIS SUBSECTION, THE GOVERNOR SHALL INSTEAD MAKE THE

APPOINTMENT.

(4) A LOCAL EDUCATION COMMISSION MEMBER IS A PUBLIC OFFICER

AND SHALL, BEFORE ENTERING UPON THE DUTIES OF THE OFFICE, TAKE THE

CONSTITUTIONAL OATH OF OFFICE FOR PUBLIC OFFICERS UNDER SECTION 1

10
11
12
13

OF ARTICLE XI OF THE STATE CONSTITUTION OF 1963.


(5) A MEMBER OF A LOCAL EDUCATION COMMISSION MAY ADMINISTER
OATHS FOR QUALIFYING BOARD MEMBERS.
SEC. 776. (1) SUBJECT TO SUBSECTIONS (2),(3) AND (4), ANY

14

INDIVIDUAL RESIDING IN THE EMPOWERMENT ZONE IS ELIGIBLE FOR

15

APPOINTMENT TO MEMBERSHIP ON THE LOCAL EDUCATION COMMISSION.

16

(2) A MEMBER OF THE BOARD OF AN SCHOOL DISTRICT, INTERMEDIATE

17

SCHOOL DISTRICT, OR PUBLIC SCHOOL ACADEMY IS INELIGIBLE TO SERVE AS

18

A MEMBER OF THE LOCAL EDUCATION COMMISSION.

19

(3) A MEMBER OF THE GOVERNING BOARD OR ANY OTHER OFFICER OR

20

EMPLOYEE OF A COUNTY, CITY, TOWNSHIP, OR VILLAGE LOCATED WITHIN THE

21

EMPOWERMENT ZONE IS INELIGIBLE TO SERVE AS A MEMBER OF THE LOCAL

22

EDUCATION COMMISSION.

23

(4) THE GOVERNOR MAY APPOINT AN INDIVIDUAL AS A MEMBER OF A

24

LOCAL EDUCATION COMMISSION WHO DOES NOT RESIDE IN THE EMPOWERMENT

25

ZONE IF THAT PERSON IS A RESIDENT OF THIS STATE.

26
27

SEC. 777. (1) A LOCAL EDUCATION COMMISSION SHALL MEET NOT LESS
THAN ANNUALLY. THE FIRST ORGANIZATIONAL MEETING OF A LOCAL

______'15

____

86

EDUCATION COMMISSION SHALL BE HELD WITHIN 30 DAYS AFTER THE LAST

APPOINTMENT OF A MEMBER UNDER SECTION 775.

(2) A NEWLY-FORMED LOCAL EDUCATION COMMISSION SHALL ORGANIZE

ITSELF BY ELECTING A CHAIRPERSON, A VICE-CHAIRPERSON, A SECRETARY,

AND A TREASURER. UNTIL JULY 1, 2017, THE CHAIRPERSON AND VICE-

CHAIRPERSON SHALL BE DESIGNATED BY THE MAYOR OF THE LARGEST CITY

WITHIN THE EMPOWERMENT ZONE, BUT THE SECRETARY AND TREASURER SHALL

BE SELECTED BY THE LOCAL EDUCATION COMMISSION. IF THE MAYOR FAILS

TO DESIGNATE A CHAIRPERSON OR A VICE-CHAIRPERSON, THE CHAIRPERSON

10
11

AND VICE-CHAIRPERSON SHALL BE DESIGNATED BY THE GOVERNOR.


(3) THE OFFICERS OF A LOCAL EDUCATION COMMISSION SHALL PERFORM

12

DUTIES PROVIDED BY LAW AND PRESCRIBED BY THE POLICIES AND

13

REGULATIONS OF THE LOCAL EDUCATION COMMISSION NOT INCONSISTENT WITH

14

THIS PART OR OTHER LAWS OF THIS STATE.

15

SEC. 778. (1) THE GOVERNOR MAY REMOVE ANY MEMBER OF A LOCAL

16

EDUCATION COMMISSION FROM OFFICE FOR GROSS NEGLECT OF DUTY, CORRUPT

17

CONDUCT IN OFFICE, OR ANY OTHER MISFEASANCE OR MALFEASANCE IN

18

OFFICE.

19

(2) A PERSON REMOVED FROM OFFICE UNDER THIS SECTION IS NOT

20

ELIGIBLE FOR APPOINTMENT TO A PUBLIC SCHOOL BOARD FOR A PERIOD OF 3

21

YEARS FROM THE DATE OF REMOVAL.

22

SEC. 779. (1) A LOCAL EDUCATION COMMISSION MEMBER SHALL SERVE

23

ON A VOLUNTARY BASIS AND RECEIVE NO COMPENSATION FOR THEIR SERVICE

24

AS A LOCAL EDUCATION COMMISSION MEMBER, BUT MAY BE REIMBURSED FOR

25

REASONABLE EXPENSES.

26

(2) A EMPOWERMENT ZONE AND ITS BOARD MEMBERS, OFFICERS,

27

EMPLOYEES, AND VOLUNTEERS HAVE GOVERNMENTAL IMMUNITY AS PROVIDED IN

28

SECTION 7 OF 1964 PA 170, MCL 691.1407. A EMPOWERMENT ZONE AND ITS


______'15

____

87

BOARD MEMBERS, OFFICERS, AND EMPLOYEES ARE IMMUNE FROM CIVIL

LIABILITY, BOTH PERSONALLY AND PROFESSIONALLY, FOR AN ACT OR

OMISSION IN CARRYING OUT THE FUNCTIONS OF A EMPOWERMENT ZONE IF THE

EMPOWERMENT ZONE OR THE PERSON ACTED OR REASONABLY BELIEVED HE OR

SHE ACTED WITHIN THE EMPOWERMENT ZONE'S OR THE PERSON'S SCOPE OF

AUTHORITY.

SEC. 780. A EMPOWERMENT ZONE IS EXEMPT FROM ALL TAXATION ON

ITS EARNINGS AND PROPERTY. INSTRUMENTS OF CONVEYANCE TO OR FROM A

EMPOWERMENT ZONE ARE EXEMPT FROM ALL TAXATION INCLUDING TAXES

10

IMPOSED BY 1966 PA 134, MCL 207.501 TO 207.513. UNLESS THE PROPERTY

11

IS ALREADY FULLY EXEMPT FROM REAL AND PERSONAL PROPERTY TAXES UNDER

12

THE GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.1 TO 211.155,

13

PROPERTY OCCUPIED BY A EMPOWERMENT ZONE AND USED EXCLUSIVELY FOR

14

EDUCATIONAL PURPOSES IS EXEMPT FROM REAL AND PERSONAL PROPERTY

15

TAXES LEVIED FOR SCHOOL OPERATING PURPOSES UNDER SECTION 1211, TO

16

THE EXTENT EXEMPTED UNDER THAT SECTION, AND FROM REAL AND PERSONAL

17

PROPERTY TAXES LEVIED UNDER THE STATE EDUCATION TAX ACT, 1993 PA

18

331, MCL 211.901 TO 211.906. A EMPOWERMENT ZONE MAY NOT LEVY AD

19

VALOREM PROPERTY TAXES OR ANOTHER TAX FOR ANY PURPOSE. HOWEVER,

20

OPERATION OF AN EMPOWERMENT ZONE DOES NOT AFFECT THE ABILITY OF ANY

21

SCHOOL DISTRICT OR INTERMEDIATE SCHOOL DISTRICT TO LEVY AD VALOREM

22

PROPERTY TAXES OR ANOTHER TAX.

23

SEC 781. (1) THE LOCAL EDUCATION COMMISSION SHALL SELECT

24

FINANCIAL INSTITUTIONS FOR THE DEPOSIT OF SCHOOL FUNDS. THE LOCAL

25

EDUCATION COMMISSION SHALL KEEP A SET OF CODED ACCOUNTS TO BE

26

APPROVED BY THE SUPERINTENDENT OF PUBLIC INSTRUCTION AND SHALL HAVE

27

ITS BOOKS AUDITED AT LEAST ANNUALLY BY A CERTIFIED PUBLIC

28

ACCOUNTANT.
______'15

____

88

(2) THE TREASURER OF A EMPOWERMENT ZONE, IF AUTHORIZED BY

RESOLUTION OF THE LOCAL EDUCATION COMMISSION, MAY INVEST FUNDS

THROUGH A FINANCIAL INSTITUTION THAT IS NOT INELIGIBLE TO BE A

DEPOSITORY OF SURPLUS FUNDS BELONGING TO THIS STATE UNDER SECTION 6

OF 1855 PA 105, MCL 21.146.

(3) AS USED IN THIS SECTION, "FINANCIAL INSTITUTION" MEANS A

STATE OR NATIONALLY CHARTERED BANK OR A STATE OR FEDERALLY

CHARTERED SAVINGS AND LOAN ASSOCIATION, SAVINGS BANK, OR CREDIT

UNION WHOSE DEPOSITS ARE INSURED BY AN AGENCY OF THE UNITED STATES

10

GOVERNMENT AND THAT MAINTAINS A PRINCIPAL OFFICE OR BRANCH OFFICE

11

LOCATED IN THIS STATE UNDER THE LAWS OF THIS STATE OR THE UNITED

12

STATES.

13
14

SEC. 782. A EMPOWERMENT ZONE AND ITS LOCAL EDUCATION


COMMISSION SHALL COMPLY WITH ALL OF THE FOLLOWING:

15

(A) THE OPEN MEETINGS ACT, 1976 PA 267, MCL 15.261 TO 15.275.

16

(B) THE FREEDOM OF INFORMATION ACT, 1976 PA 442, MCL 15.231 TO

17

15.246.

18

(C) 1947 PA 336, MCL 423.201 TO 423.217.

19

(D) 1968 PA 2, MCL 141.421 TO 141.1440A.

20

(E) SECTIONS 1263(3), 1267, AND 1274.

21

SEC 783. (1) UPON DESIGNATION OF A EMPOWERMENT ZONE, A

22

EMPOWERMENT ZONE SCHOOL SHALL AUTOMATICALLY BE SUBJECT TO THE

23

FOLLOWING:

24

(A) THE ZONE ACCOUNTABILITY PLAN.

25

(B) THE ZONE FACILITIES PLAN.

26

(C) THE ZONE ENROLLMENT PLAN.

27

(2) UPON DESIGNATION OF A EMPOWERMENT ZONE, AND TO FOCUS

28

ATTENTION OF A EMPOWERMENT ZONE SCHOOL ON THE CONTINUED IMPROVEMENT


______'15

____

89

OF THE EDUCATIONAL PROGRAM AT THE SCHOOL, THE SUPERINTENDENT OF

PUBLIC INSTRUCTION SHALL, EXCEPT FOR ANY REQUIREMENT PROVIDED FOR

IN THIS PART OR SUBSECTION (3), WAIVE ANY OTHERWISE APPLICABLE

REQUIREMENT PLACED ON A EMPOWERMENT ZONE SCHOOL UNDER THIS ACT OR

THE STATE SCHOOL AID ACT OF 1979, OR OF A RULE PROMULGATED UNDER

THIS ACT OR THE STATE SCHOOL AID ACT OF 1979.

(3) THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL NOT WAIVE

THE REQUIREMENTS SET FORTH IN SECTIONS 1134, 1135, 1137, 1137A,

1138, 1139, 1146, 1153, 1230 TO 1230H, 1263(3), 1267, 1274, 1278 TO

10

1278B, 1280C, 1285A, 1306, 1309 TO 1311A, 1312, 1317, 1535A, AND

11

1539B OF THIS ACT.

12

(4) IN EXCHANGE FOR PROVIDING EMPOWERMENT ZONE SCHOOLS WITH

13

ADMINISTRATIVE, EVALUATION, AND TECHNICAL ASSISTANCE, A EMPOWERMENT

14

ZONE SHALL, TO THE EXTENT PERMITTED UNDER APPLICABLE FEDERAL LAW,

15

BE ENTITLED TO RECEIVE 1 PERCENT OF THE TITLE I, PART A FUNDING

16

ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS WHICH SHALL BE

17

PAID BY THE STATE FROM THE DEPARTMENT'S PORTION OF THE STATE

18

EDUCATIONAL AGENCY ADMINISTRATIVE COSTS FOR TITLE I, PART A UP TO

19

AN AMOUNT EQUAL TO 1 PERCENT OF THE TOTAL STATE SCHOOL AID RECEIVED

20

BY ALL EMPOWERMENT ZONE SCHOOLS LOCATED WITHIN A EMPOWERMENT ZONE.

21

(5) IF THE ASSESSMENT OF 1 PERCENT OF THE TITLE I, PART A

22

FUNDING ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS IS LESS

23

THAN 1 PERCENT OF THE TOTAL STATE SCHOOL AID RECEIVED BY

24

EMPOWERMENT ZONE SCHOOLS IN ANY GIVEN YEAR, THEN EACH EMPOWERMENT

25

ZONE SCHOOL SHALL PAY THE REMAINING AMOUNT TO THE EMPOWERMENT ZONE

26

ON A PRO RATA BASIS BASED ON THE TOTAL NUMBER OF PUPILS ENROLLED AT

27

THE EMPOWERMENT ZONE SCHOOL IN THE PRIOR SCHOOL FISCAL YEAR, AS

28

DETERMINED BY THE STATE BUDGET DIRECTOR. ON AN ANNUAL BASIS, THE


______'15

____

90

STATE BUDGET DIRECTOR SHALL DETERMINE THE DIFFERENCE BETWEEN TITLE

I, PART A FUNDING ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS

AND 1% OF THE TOTAL STATE SCHOOL AID FUNDS RECEIVED BY EMPOWERMENT

ZONE SCHOOLS AND SHALL REPORT SUCH AMOUNT TO THE STATE TREASURER.

THE STATE TREASURER IS AUTHORIZED TO DIRECTLY INTERCEPT THE

DIFFERENCE FROM THE STATE SCHOOL AID FUNDS ATTRIBUTABLE TO EACH

EMPOWERMENT ZONE SCHOOL, AND SHALL FORWARD SUCH FUNDS TO THE

EMPOWERMENT ZONE IN ACCORDANCE WITH THE PAYMENT SCHEDULE OF STATE

SCHOOL AID FUNDS.

10

SEC. 784. (1) IF A EMPOWERMENT ZONE SCHOOL HAS OPERATED FOR AT

11

LEAST 4 YEARS AND IS LISTED ON THE LOWEST ACHIEVING SCHOOLS LIST

12

ISSUED UNDER SECTION 1280C FOR 3 CONSECUTIVE YEARS, AND THE

13

EMPOWERMENT ZONE SCHOOL HAS NOT BEEN RECONSTITUTED BY ITS

14

AUTHORIZING BODY, IF APPLICABLE, THEN THE EMPOWERMENT ZONE SCHOOL

15

SHALL, SUBJECT TO SUBSECTION (3), BE CLOSED AT THE END OF THE

16

CURRENT SCHOOL FISCAL YEAR.

17

(2) BY SEPTEMBER 1 OF EACH YEAR, THE EDUCATION MANAGER SHALL

18

PROVIDE THE STATE SCHOOL REFORM/REDESIGN OFFICE WITH A LIST OF

19

EMPOWERMENT ZONE SCHOOLS THAT HAVE RECEIVED A LETTER GRADE OF "D"

20

FOR 3 CONSECUTIVE YEARS, AS DEFINED IN THE EMPOWERMENT ZONE'S

21

ACCOUNTABILITY PLAN. UPON RECEIPT, THE STATE SCHOOL REFORM/

22

REDESIGN OFFICE SHALL INCLUDE THESE EMPOWERMENT ZONE SCHOOLS ON THE

23

LIST OF SCHOOLS SUBJECT TO CLOSURE UNDER SUBSECTION (3).

24

(3) BY OCTOBER 1 OF EACH YEAR, THE STATE SCHOOL

25

REFORM/REDESIGN OFFICE SHALL PREPARE AND PUBLISH A LIST OF

26

EMPOWERMENT ZONE SCHOOLS SUBJECT TO CLOSURE UNDER THIS SECTION. THE

27

LIST SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE

______'15

____

91

AND SHALL BE PROVIDED TO EACH EDUCATION MANAGER WHERE A EMPOWERMENT

ZONE SCHOOL IS SUBJECT TO CLOSURE.

(4) WITHIN 30 DAYS OF THE PUBLICATION OF THE STATE SCHOOL

REFORM/REDESIGN OFFICE'S LIST OF EMPOWERMENT ZONE SCHOOL CLOSURES,

THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL ISSUE AN ORDER

SUBJECTING EACH EMPOWERMENT ZONE SCHOOL ON THE LIST TO CLOSURE AT

THE END OF THE CURRENT SCHOOL FISCAL YEAR.

8
9

(5) UPON ISSUANCE OF THE SUPERINTENDENT'S CLOSURE ORDER, THE


EDUCATION MANAGER SHALL INITIATE A PROCESS TO EVALUATE WHETHER THE

10

EMPOWERMENT ZONE SCHOOL THAT IS SUBJECT TO CLOSURE SHOULD BE

11

RECONSTITUTED. ALL OF THE FOLLOWING APPLY TO THE RECONSTITUTE

12

REQUEST FOR PROPOSAL PROCESS:

13
14
15

(A) THE EDUCATION MANAGER MAY ISSUE A REQUEST FOR PROPOSAL TO


RECONSTITUTE THE EMPOWERMENT ZONE SCHOOL.
(B) IF THE EDUCATION MANAGER IDENTIFIES AN OPERATOR FOR THE

16

EMPOWERMENT ZONE SCHOOL, THE EDUCATION MANAGER MAY SELECT THE

17

OPERATOR FOR THE EMPOWERMENT ZONE SCHOOL COMMENCING AT THE

18

BEGINNING OF THE NEXT SCHOOL FISCAL YEAR.

19

(C) THE EDUCATION MANAGER SHALL NEGOTIATE A CONTRACT WITH AN

20

OPERATOR FOR THE EMPOWERMENT ZONE SCHOOL. THE CONTRACT SHALL

21

INCLUDE AGREEMENT BY THE OPERATOR TO COMPLY WITH THE ZONE

22

ACCOUNTABILITY PLAN AND OTHER PLANS ADOPTED BY THE EDUCATION

23

MANAGER.

24

(D) IF AN EDUCATION MANAGER ELECTS NOT TO RECONSTITUTE THE

25

EMPOWERMENT ZONE SCHOOL, THEN THE SUPERINTENDENT'S CLOSURE ORDER

26

SHALL TAKE EFFECT.

27
28

(E) THE EDUCATION MANAGER SHALL ACT IN PLACE AND STEAD OF THE
EMPOWERMENT ZONE SCHOOL BOARD FOR THE PURPOSE OF RECONSTITUTING THE
______'15

____

92

SCHOOL. THE EMPOWERMENT ZONE SCHOOL BOARD SHALL CONTINUE TO OPERATE

THE SCHOOL FOR THE REMAINDER OF THE SCHOOL YEAR FOLLOWING ISSUANCE

OF THE SUPERINTENDENT'S CLOSURE ORDER.

(6) FOR A EMPOWERMENT ZONE SCHOOL LISTED ON THE

SUPERINTENDENT'S CLOSURE ORDER, THE EMPOWERMENT ZONE SCHOOL BOARD

SHALL DO ALL OF THE FOLLOWING:

(A) CONTINUE DELIVERY OF EDUCATIONAL SERVICES TO THE

EMPOWERMENT ZONE SCHOOL FOR THE REMAINDER OF THE SCHOOL FISCAL

YEAR.

10
11

(B) COOPERATE WITH THE EDUCATION MANAGER IN THE RECONSTITUTION


OF THE EMPOWERMENT ZONE SCHOOL.

12

(C) CONSIDER SUBMITTING A PROPOSAL IN RESPONSE TO ANY

13

EDUCATION MANAGER'S REQUEST FOR PROPOSALS OFFERING TO PROVIDE A

14

DIFFERENT EDUCATIONAL, ADMINISTRATIVE AND INSTRUCTIONAL STAFFING

15

MODELS AT THE SCHOOL BUILDING. THE EDUCATION MANAGER SHALL CONSIDER

16

THE EMPOWERMENT ZONE SCHOOL BOARD'S PROPOSAL ALONG WITH OTHER

17

SUBMITTED PROPOSALS.

18

(D) TAKE THE NECESSARY STEPS TO FACILITATE THE RECONSTITUTION

19

PROCESS INCLUDING, BUT NOT LIMITED TO, THE ORDERLY TRANSFER OF

20

FINANCIAL, PUPIL AND EDUCATIONAL RECORDS TO A NEW OPERATOR, IF

21

APPLICABLE.

22

(7) SUBJECT TO SUBSECTION (8), THE EDUCATION MANAGER MAY

23

CONTRACT WITH AN AUTHORIZING BODY TO ASSIST THE EDUCATION MANAGER

24

IN ADMINISTERING A RECONSTITUTE REQUEST FOR PROPOSAL. SELECTION OF

25

ANY PROPOSAL SHALL BE MADE BY THE EDUCATION MANAGER.

26

(8) IF AN ACCREDITATION SYSTEM IS IMPLEMENTED FOR AUTHORIZING

27

BODIES UNDER THIS ACT, THEN AN EDUCATION MANAGER MAY ONLY CONTRACT

28

WITH AUTHORIZING BODIES THAT ARE ACCREDITED.


______'15

____

93

SEC. 785. (1) IF AN EDUCATION MANAGER DOES NOT RECONSTITUTE A

EMPOWERMENT ZONE SCHOOL AND A SUPERINTENDENT CLOSURE ORDER ISSUED

UNDER SECTION 784 TAKES EFFECT, THEN ALL OF THE FOLLOWING SHALL

OCCUR:

(A) THE SCHOOL BUILDING THAT WAS SUBJECT TO THE

SUPERINTENDENT'S CLOSURE ORDER SHALL AUTOMATICALLY BE CLOSED AND

MADE AVAILABLE FOR USE BY ANOTHER PUBLIC SCHOOL, AS DETERMINED BY

THE EDUCATION MANAGER.

(B) IN ACCORDANCE WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE

10

FACILITIES PLAN, THE EDUCATION MANAGER SHALL ISSUE REQUEST FOR

11

PROPOSALS TO REMOVE AND REPLACE.

12

(C) UPON CLOSURE, ALL POSITIONS AT THE SCHOOL BUILDING SHALL

13

IMMEDIATELY BE ABOLISHED WITH NOTICES ISSUED AS REQUIRED BY THE

14

APPLICABLE COLLECTIVE BARGAINING AGREEMENTS. THE INDIVIDUALS

15

SUBJECT TO THE POSITION ABOLISHMENT SHALL BE ENTITLED TO EXERCISE

16

SUCH BUMPING AND SENIORITY RIGHTS AS PERMITTED BY THE APPLICABLE

17

COLLECTIVE BARGAINING AGREEMENTS.

18

(D) A PERSON WHOSE POSITION HAS BEEN ABOLISHED BY THE BUILDING

19

CLOSURE MAY APPLY FOR A NEWLY CREATED POSITION WITH THE NEW PUBLIC

20

SCHOOL SELECTED AS PART OF THE REMOVE AND REPLACE PROCESS.

21

(E) A PUBLIC SCHOOL SELECTED BY THE EDUCATION MANAGER AS PART

22

OF A REMOVE AND REPLACE PROCESS IS NOT CONSIDERED TO BE THE

23

SUCCESSOR EMPLOYER TO ANY EXISTING COLLECTIVE BARGAINING AGREEMENT

24

AND IS NOT SUBJECT TO ANY COLLECTIVE BARGAINING AGREEMENT THAT

25

APPLIED TO THE EMPOWERMENT ZONE SCHOOL BUILDING THAT WAS CLOSED.

26

ANY NEW PUBLIC SCHOOL SELECTED BY THE EMPOWERMENT ZONE EDUCATIONAL

27

MANAGER SHALL NOT BE DEEMED A SUCCESSOR EMPLOYER FOR ANY PURPOSE

28

FOR ANY EMPLOYEES WHO WORKED AT THE EMPOWERMENT ZONE SCHOOL


______'15

____

94

BUILDING THAT WAS CLOSED. ANY RIGHTS AND OBLIGATIONS UNDER EXISTING

COLLECTIVE BARGAINING AGREEMENTS ENTERED INTO BY A EMPOWERMENT ZONE

SCHOOL THAT INCLUDED THE SCHOOL BUILDING THAT WAS CLOSED SHALL

REMAIN THE SOLE RESPONSIBILITY OF THAT EMPOWERMENT ZONE SCHOOL.

(F) ANY CONTRACT OR PORTION OF A CONTRACT ENTERED INTO BY A

EMPOWERMENT ZONE SCHOOL THAT APPLIED TO A CLOSED SCHOOL BUILDING,

INCLUDING, BUT NOT LIMITED TO COLLECTIVE BARGAINING AGREEMENTS,

SHALL NO LONGER APPLY TO THAT BUILDING BUT SHALL REMAIN AN

OBLIGATION OF THE EMPOWERMENT ZONE SCHOOL SUBJECT TO THE

10

SUPERINTENDENT'S CLOSURE ORDER. HOWEVER, THIS SUBSECTION DOES NOT

11

ALLOW ANY TERMINATION OR DIMINISHMENT OF A VALID LEASE AGREEMENT,

12

OR OBLIGATIONS TO PAY DEBT SERVICE ON LEGALLY AUTHORIZED CONTRACTS

13

ENTERED INTO BY THE EMPOWERMENT ZONE SCHOOL BOARD. A CONTRACT

14

TERMINATED BY THE CLOSURE OF A EMPOWERMENT ZONE SCHOOL BUILDING

15

UNDER THIS SUBSECTION IS VOID.

16

(2) ANY NEW OR EXISTING PUBLIC SCHOOL LOCATED IN THE

17

EMPOWERMENT ZONE IS ELIGIBLE TO SUBMIT A REMOVE AND REPLACE

18

PROPOSAL. FOR NEW OR EXISTING PUBLIC SCHOOL ACADEMIES, AN

19

AUTHORIZING BODY SHALL SUBMIT THE PROPOSAL TO THE EDUCATION

20

MANAGER.

21

(3) IF THE EDUCATION MANAGER SELECTS A REMOVE AND REPLACE

22

PROPOSAL, THE PUBLIC SCHOOL IDENTIFIED IN THE PROPOSAL SHALL

23

COMMENCE OPERATIONS AT THE SCHOOL BUILDING AT THE BEGINNING OF THE

24

NEXT SCHOOL FISCAL YEAR. THE SELECTED PUBLIC SCHOOL MAY EXERCISE

25

ALL THE POWERS AND DUTIES OTHERWISE VESTED BY LAW IN THE

26

EMPOWERMENT ZONE SCHOOL BOARD THAT PREVIOUSLY USED THE SCHOOL

27

BUILDING PLACED IN THE EMPOWERMENT ZONE AND IN ITS OFFICERS, EXCEPT

28

THOSE RELATING TO TAXATION OR BORROWING, AND MAY EXERCISE ALL


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ADDITIONAL POWERS AND DUTIES PROVIDED UNDER THIS SECTION; AND,

EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE PUBLIC SCHOOL

IDENTIFIED IN THE PROPOSAL ACCEDES TO ALL THE RIGHTS, DUTIES, AND

OBLIGATIONS OF THE EMPOWERMENT ZONE SCHOOL BOARD WITH RESPECT TO

THAT SCHOOL BUILDING. THESE POWERS, RIGHTS, DUTIES, AND OBLIGATIONS

INCLUDE, BUT ARE NOT LIMITED TO, ALL OF THE FOLLOWING:

(A) 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,

10

THAT WOULD OTHERWISE BE APPORTIONED TO THAT SCHOOL BY THE

11

EMPOWERMENT ZONE SCHOOL BOARD THAT PREVIOUSLY USED THE SCHOOL

12

ACCORDING TO THE TERMS OF THE BOND ISSUE OR FINANCING DOCUMENTS.

13
14

(B) ASSIGNMENT OF ANY LEASE AGREEMENT WITH A THIRD PARTY FOR


THE USE OF THE SCHOOL BUILDING.

15
16

(C) RIGHTS TO PROSECUTE AND DEFEND LITIGATION RELATED TO THE


SCHOOL BUILDING AND PUPILS AT THAT SCHOOL.

17
18
19

(D) RIGHTS AND OBLIGATIONS UNDER STATUTE, RULE, AND COMMON


LAW.
(E) AUTHORITY TO DELEGATE ANY OF THE PUBLIC SCHOOL'S POWERS

20

AND DUTIES TO 1 OR MORE DESIGNEES, WITH PROPER SUPERVISION BY THE

21

SELECTED PUBLIC SCHOOL'S GOVERNING BOARD.

22

SEC 786. (1) THE LOCAL EDUCATION COMMISSION FOR A EMPOWERMENT

23

ZONE SHALL IDENTIFY AND SELECT AN EDUCATION MANAGER CANDIDATE FOR

24

APPOINTMENT AND EMPLOYMENT BY THE EMPOWERMENT ZONE. A CANDIDATE

25

SHALL BE SELECTED ON THE BASIS OF HIS OR HER DEMONSTRATED ABILITY

26

OF COMPETENCE, EXPERIENCE IN INCREASING ACADEMIC ACHIEVEMENT IN

27

SCHOOLS OR SCHOOL SYSTEMS, EDUCATIONAL REFORM AND REDESIGN

28

EXPERIENCE, DEMONSTRATED ABILITY TO MAKE EVIDENCE BASED DECISIONS


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REGARDING THE OPENING, CLOSING AND RECONSTITUTION OF PUBLIC

SCHOOLS, AND EXPERTISE IN THE TURN AROUND OF ACADEMICALLY FAILING

PUBLIC SCHOOLS. THE EMPLOYMENT AGREEMENT SHALL INCLUDE THE PROPOSED

TERMS AND CONDITIONS OF EMPLOYMENT, INCLUDING PROPOSED SALARY AND

BENEFITS WHICH ARE TO BE PAID BY THE EMPOWERMENT ZONE.

(2) IF A LOCAL EDUCATION COMMISSION TERMINATES AN EDUCATION

MANAGER, THE LOCAL EDUCATION COMMISSION SHALL IDENTIFY AND SELECT A

SUCCESSOR EDUCATION MANAGER IN ACCORDANCE WITH THIS SECTION.

SEC. 787. (1) THE EDUCATION MANAGER SHALL BE THE CHIEF

10

EXECUTIVE OFFICER AND SUPERINTENDENT OF THE EMPOWERMENT ZONE AND

11

SHALL BE RESPONSIBLE FOR ALL OF THE FOLLOWING:

12

(A) DEVELOPING AND IMPLEMENTING A ZONE ACCOUNTABILITY PLAN FOR

13

ALL EMPOWERMENT ZONE SCHOOLS. IN DEVELOPING THE ZONE ACCOUNTABILITY

14

PLAN, THE EDUCATION MANAGER SHALL CONSULT WITH EXPERTS, INCLUDING

15

PSYCHOMETRICIANS, KNOWLEDGEABLE IN THE DESIGN OF SCHOOL

16

ACCOUNTABILITY SYSTEMS. THE STATE SCHOOL REFORM/REDESIGN OFFICER

17

SHALL REVIEW AND APPROVE THE INITIAL ZONE ACCOUNTABILITY PLAN FOR A

18

EMPOWERMENT ZONE WITHIN 45 DAYS AFTER SUBMISSION BY THE EDUCATION

19

MANAGER. THE EDUCATION MANAGER MAY AMEND THE ZONE ACCOUNTABILITY

20

PLAN AT ANYTIME. IF THE EDUCATION MANAGER AMENDS THE ZONE

21

ACCOUNTABILITY PLAN, THE AMENDED PLAN SHALL BE APPROVED BY THE

22

STATE SCHOOL REFORM/REDESIGN OFFICER BEFORE IT TAKES EFFECT. IF THE

23

STATE SCHOOL REFORM/REDESIGN OFFICER DOES NOT APPROVE THE AMENDED

24

PLAN WITHIN 45 DAYS FOLLOWING SUBMISSION, THEN THE LAST APPROVED

25

ZONE ACCOUNTABILITY PLAN SHALL REMAIN IN EFFECT UNTIL THE AMENDED

26

PLAN IS APPROVED BY THE STATE SCHOOL REFORM/REDESIGN OFFICER. A

27

ZONE ACCOUNTABILITY PLAN SHALL INCLUDE THE FOLLOWING ELEMENTS:

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(i) STUDENT PERFORMANCE STANDARDS THAT ARE NO LESS STRINGENT

THAN THE STATE'S ACCOUNTABILITY PLAN, WHICH MUST INCLUDE ACADEMIC

MEASUREMENTS TO ASSESS STUDENT GROWTH AND PROFICIENCY FOR THE

SCHOOL AND SUBGROUPS AT THE SCHOOL. NOT MORE THAN 10 PERCENT OF THE

SCORE FOR ANY SCHOOL MAY INCLUDE NON-ACADEMIC FACTORS FOR THAT

SCHOOL.

(ii) AN A-F LETTER GRADING SYSTEM, WITH AN "A" SCHOOL BEING

PART OF THE DEFINITION OF AS A HIGH-PERFORMING SCHOOL, AN "F"

SCHOOL BEING DEFINED AS A SCHOOL THAT IS ON THE LOWEST ACHIEVING

10

SCHOOLS LIST UNDER SECTION 1280C, AND THAT UTILIZES INDIVIDUAL

11

STUDENT GROWTH, AS MEASURED IN YEARS OF ACADEMIC PROGRESS, AS BEING

12

AT LEAST 33% BUT NOT MORE THAN 50% OF A SCHOOL'S OVERALL GRADE

13

CALCULATION.

14

(iii) IF THE LEGISLATURE ADOPTS A LETTER GRADING SYSTEM FOR ALL

15

PUBLIC SCHOOLS IN THIS STATE, THE EDUCATION MANAGER SHALL ADOPT THE

16

STATE'S LETTER GRADING SYSTEM AS PART OF THE ZONE ACCOUNTABILITY

17

PLAN.

18

(B) DEVELOPING AND IMPLEMENTING THE ZONE FACILITIES PLAN FOR

19

THE EMPOWERMENT ZONE. IF THE EMPOWERED DISTRICT IS LOCATED WITHIN

20

THE GEOGRAPHICAL BOUNDARIES OF ONE OR MORE CITIES, THE EDUCATION

21

MANAGER SHALL DEVELOP THE ZONE FACILITIES PLAN IN COORDINATION WITH

22

ANY MASTER FACILITIES PLAN DEVELOPED FOR THE LARGEST CITY LOCATED

23

WITHIN THE EMPOWERMENT ZONE.

24
25
26
27

(C) DEVELOPING AND IMPLEMENTING A ZONE ENROLLMENT PLAN FOR ALL


EMPOWERMENT ZONE SCHOOLS THAT MEETS ALL OF THE FOLLOWING:
(i) THE ZONE ENROLLMENT PLAN SHALL APPLY ONLY TO PROSPECTIVE
ADMISSIONS AND ENROLLMENTS AT A EMPOWERMENT ZONE SCHOOL, AND SHALL

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NOT AFFECT THE ENROLLMENT OF ANY PUPIL ALREADY ENROLLED AT A

EMPOWERMENT ZONE SCHOOL.

(ii) THE ZONE ENROLLMENT PLAN SHALL NOT DISCRIMINATE IN ITS

PUPIL ADMISSIONS POLICIES OR PRACTICES ON THE BASIS OF INTELLECTUAL

OR ATHLETIC ABILITY, MEASURES OF ACHIEVEMENT OR APTITUDE, STATUS AS

A STUDENT WITH A DISABILITY, OR ANY OTHER BASIS THAT WOULD BE

ILLEGAL IF USED BY ANY OTHER PUBLIC SCHOOL.

8
9

(iii) THE ZONE ENROLLMENT PLAN SHALL ALLOW ANY PUPIL WHO WAS
ENROLLED IN A EMPOWERMENT ZONE SCHOOL IN THE IMMEDIATELY PRECEDING

10

SCHOOL YEAR TO ENROLL IN THE SAME EMPOWERMENT ZONE SCHOOL IN THE

11

APPROPRIATE GRADE UNLESS THE APPROPRIATE GRADE IS NOT OFFERED AT

12

THE SCHOOL.

13
14

(iv) THE ZONE ENROLLMENT PLAN SHALL RECOGNIZE ANY EXISTING


ENROLLMENT PREFERENCE PERMITTED UNDER THIS ACT.

15

(v) THE ZONE ENROLLMENT PLAN SHALL TREAT PROSPECTIVE PUPILS

16

SEEKING TO ATTEND AND PUPILS ATTENDING EMPOWERMENT ZONE SCHOOLS,

17

FAIRLY AND EQUALLY, AND SHALL NOT FAVOR ONE PUPIL OVER ANOTHER

18

PUPIL, OR DISADVANTAGE OR DISCRIMINATE AGAINST ANY PUPIL.

19

(vi) IF MORE PUPILS APPLY TO ENROLL IN A EMPOWERMENT ZONE

20

SCHOOL THAN THERE ARE SPACES AVAILABLE, THE ZONE ENROLLMENT PLAN

21

SHALL USE A RANDOM SELECTION PROCESS TO DETERMINE ADMISSIONS.

22

(vii) THE ZONE ENROLLMENT PLAN SHALL GRANT EACH PARENT OR LEGAL

23

GUARDIAN OF A PUPIL THEIR FIRST SCHOOL CHOICE EXCEPT IN THE CASE OF

24

ENROLLMENT OVERCAPACITY AT THAT SCHOOL. IF THE RANDOM SELECTION

25

PROCESS RESULTS IN A PUPIL'S PARENT OR LEGAL GUARDIAN NOT BEING

26

ABLE TO ENROLL THE PUPIL IN THEIR FIRST SCHOOL CHOICE, THEN THE

27

PUPIL SHALL BE GRANTED ADMISSION INTO THE PARENT'S OR LEGAL

28

GUARDIAN'S SECOND CHOICE EXCEPT IN THE CASE OF ENROLLMENT


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OVERCAPACITY AT THAT SCHOOL. THE ZONE ENROLLMENT PLAN SHALL PROVIDE

FOR AN ENROLLMENT PROCESS THAT CONTINUES UNTIL ALL PUPILS HAVE BEEN

ENROLLED IN A SCHOOL CHOSEN BY THEIR PARENT OR LEGAL GUARDIAN.

(viii) THE ZONE ENROLLMENT PLAN SHALL NOT TREAT PUPILS,

DISTRICTS, PROVIDERS OF EDUCATIONAL SERVICES, OR SCHOOLS

INEQUITABLY IN ANY FASHION, INCLUDING BUT NOT LIMITED TO UTILIZING

BALANCING, WEIGHTING, OR QUOTAS OTHER THAN ENROLLMENT CAPACITY.

8
9
10
11
12
13
14
15
16
17
18
19

(ix) THE ZONE ENROLLMENT PLAN SHALL NOT LIMIT A EMPOWERMENT


ZONE SCHOOL'S ABILITY TO MARKET OR ADVERTISE FOR PROSPECTIVE
PUPILS.
(D) DETERMINE WHETHER A EMPOWERMENT ZONE SCHOOL MEETS THE
DEFINITION OF A HIGH-PERFORMING SCHOOL UNDER THIS ACT.
(E) DETERMINE WHETHER A EMPOWERMENT ZONE SCHOOL IS BEING
REPLICATED AS A HIGH-PERFORMING SCHOOL.
(F) DETERMINE WHETHER TO RECONSTITUTE A EMPOWERMENT ZONE
SCHOOL.
(G) DETERMINE WHETHER TO REMOVE AND REPLACE A EMPOWERMENT ZONE
SCHOOL.
(H) DETERMINE, IN ACCORDANCE WITH THE ZONE FACILITIES PLAN,

20

WHETHER A SCHOOL BUILDING MADE AVAILABLE FOR USE BY THE EDUCATION

21

MANAGER UNDER THIS ACT, SHOULD BE REMOVED AND REPLACED.

22

(2) THE EDUCATION MANAGER MAY PERFORM OTHER DUTIES PRESCRIBED

23

UNDER THIS ACT, MAKE REGULAR REPORTS TO AND AS REQUESTED BY THE

24

LOCAL EDUCATION COMMISSION, AND AT THE CLOSE OF HIS OR HER TERM OF

25

OFFICE DELIVER ALL RECORDS, BOOKS, AND PAPERS BELONGING TO THE

26

OFFICE TO THE EDUCATION MANAGERS SUCCESSOR.

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100

(3) THE EDUCATION MANAGER MAY MAKE WRITTEN REPORTS TO THE

BOARDS OF EMPOWERMENT ZONE SCHOOLS AND AUTHORIZING BODIES IN REGARD

TO MATTERS PERTAINING TO THE EMPOWERMENT ZONE.

(4) ON AN ANNUAL BASIS, THE EDUCATION MANAGER SHALL BE

EVALUATED BY THE LOCAL EDUCATION COMMISSION. THE EVALUATION

CRITERIA SHALL BE DETERMINED BY THE LOCAL EDUCATION COMMISSION AND

SHALL, AT A MINIMUM, INCLUDE THE INCREASING PROPORTION OF PUPILS IN

THE EMPOWERMENT ZONE WHO ACHIEVE SCORES EQUIVALENT TO PROFICIENCY

OR HIGHER ON ASSESSMENTS, THE REDUCING PROPORTION OF PUPILS IN THE

10

EMPOWERMENT ZONE WHO ATTEND SCHOOLS THAT RECEIVE A LETTER GRADE OF

11

"D" OR LOWER, AND THE INCREASING PROPORTION OF PUPILS IN THE

12

EMPOWERMENT ZONE SCHOOL DISTRICT WHO ATTEND SCHOOLS THAT RECEIVE A

13

LETTER GRADE OF "B" OR HIGHER.

14

SEC. 778. (1) A EMPOWERMENT ZONE MAY BORROW, SUBJECT TO THE

15

REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

16

141.2821, SUMS OF MONEY ON TERMS THE LOCAL EDUCATION COMMISSION

17

CONSIDERS NECESSARY FOR 1 OR MORE OF THE FOLLOWING PURPOSES:

18

(A) FOR TEMPORARY PURPOSES FOR WHICH THE LOCAL EDUCATION

19

COMMISSION MAY GIVE NOTES OF THE EMPOWERMENT ZONE IN ACCORDANCE

20

WITH SECTION 1225.

21

(B) TO PURCHASE SITES FOR BUILDINGS; TO PURCHASE, ERECT,

22

COMPLETE, REMODEL, IMPROVE, FURNISH, REFURNISH, EQUIP, OR REEQUIP

23

BUILDINGS AND FACILITIES THE BOARD IS AUTHORIZED TO ACQUIRE,

24

INCLUDING, BUT NOT LIMITED TO, GENERAL ADMINISTRATIVE, VOCATIONAL,

25

OR SPECIAL EDUCATION BUILDINGS OR FACILITIES, OR PARTS OF THOSE

26

BUILDINGS OR FACILITIES, OR ADDITIONS TO THOSE BUILDINGS OR

27

FACILITIES, AND PREPARE, DEVELOP, OR IMPROVE SITES FOR THOSE

28

BUILDINGS OR FACILITIES; TO PURCHASE AND INSTALL INFORMATION


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101

TECHNOLOGY SYSTEMS, TOGETHER WITH THE EQUIPMENT AND SOFTWARE, AS

ARE NECESSARY FOR PROGRAMS CONDUCTED BY THE EMPOWERMENT ZONE; AND

TO ISSUE AND SELL BONDS OF THE EMPOWERMENT ZONE IN THE FORM AND ON

THE TERMS THE BOARD CONSIDERS ADVISABLE.

SEC. 791. WITHIN SIX MONTHS OF ITS FIRST MEETING, A LOCAL

EDUCATION COMMISSION SHALL ADOPT AND IMPLEMENT A CONFLICT OF

INTEREST POLICY DESIGNED TO AVOID CONFLICTS OF INTEREST BY

EMPOWERMENT ZONE OFFICIALS AND EMPLOYEES. A LOCAL EDUCATION

COMMISSION'S CONFLICT OF INTEREST POLICY SHALL COMPLY WITH 1968 PA

10
11

317, MCL 15.321 TO 15.330.


SEC. 792. (1) NOTWITHSTANDING ANY OTHER PROVISIONS IN THIS

12

ACT, THE STATE SCHOOL REFORM/REDESIGN OFFICER SHALL NOT ISSUE AN

13

ORDER PLACING ANY EMPOWERMENT ZONE SCHOOL UNDER THE SUPERVISION OF

14

THE STATE SCHOOL REFORM/REDESIGN OFFICE FOR TWO YEARS AFTER A

15

EMPOWERMENT ZONE IS CREATED.

16

(2) IF AN EDUCATION MANAGER RECONSTITUTES A EMPOWERMENT ZONE

17

SCHOOL, AND THE EMPOWERMENT ZONE SCHOOL REMAINS ON THE CLOSURE LIST

18

UNDER SECTION 784 FOR 2 CONSECUTIVE YEARS AFTER RECONSTITUTION,

19

THEN STATE SCHOOL REFORM/REDESIGN OFFICER SHALL HAVE THE AUTHORITY

20

TO ISSUE AN ORDER PLACING THE EMPOWERMENT ZONE SCHOOL WITHIN THE

21

STATE SCHOOL REFORM/REDESIGN DISTRICT.

22

(3) IF AN EDUCATION MANAGER ELECTS TO REMOVE AND REPLACE A

23

SCHOOL BUILDING IN THE EMPOWERMENT ZONE, AND THE EMPOWERMENT ZONE

24

SCHOOL REMAINS ON THE CLOSURE LIST UNDER SECTION 784 FOR 4

25

CONSECUTIVE YEARS AFTER BEING REMOVED AND REPLACED, THEN THE STATE

26

SCHOOL REFORM/ REDESIGN OFFICER SHALL HAVE THE AUTHORITY TO ISSUE

27

AN ORDER PLACING THE EMPOWERMENT ZONE SCHOOL WITHIN THE STATE

28

SCHOOL REFORM/REDESIGN DISTRICT.


Final Page