HOUSE BILL No. 4425 March 7, 2001, Introduced by Reps. Hansen and Kolb and referred to the Committee on Education. A bill to amend 1976 PA 451, entitled "The revised school code," by amending section 503 (MCL 380.503), as amended by 1995 PA 289. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 503. (1) An authorizing body is not required to issue 2 a contract to any person or entity. Public school academy con- 3 tracts shall be issued on a competitive basis taking into consid- 4 eration the resources available for the proposed public school 5 academy, the population to be served by the proposed public 6 school academy, and the educational goals to be achieved by the 7 proposed public school academy. 8 (2) If a person or entity applies to the board of a school 9 district for a contract to organize and operate 1 or more public 00688'01 TAV 2 1 school academies within the boundaries of the school district and 2 the board does not issue the contract, the person or entity may 3 petition the board to place the question of issuing the contract 4 on the ballot to be decided by the school electors of the school 5 district. The petition shall contain all of the information 6 required to be in the contract application under section 502(3) 7 and shall be signed by a number of school electors of the school 8 district equal to at least 15% of the total number of school 9 electors of that school district. The petition shall be filed 10 with the secretary of the board. If the board receives a peti- 11 tion meeting the requirements of this subsection, the board shall 12 place the question of issuing the contract on the ballot at its 13 next annual school election held at least 60 days after receiving 14 the petition. If a majority of the school electors of the school 15 district voting on the question vote to issue the contract, the 16 board shall issue the contract. 17 (3) Within 10 days after issuing a contract for a public 18 school academy, the board of the authorizing body shall submit to 19 the state board a copy of the contract and of the application 20 under section 502. 21 (4) An authorizing body shall adopt a resolution establish- 22 ing the method of selection, length of term, and number of mem- 23 bers of the board of directors of each public school academy 24 subject to its jurisdiction. 25 (5) A contract issued to organize and administer a public 26 school academy shall contain at least all of the following: 00688'01 3 1 (a) The educational goals the public school academy is to 2 achieve and the methods by which it will be held accountable. To 3 the extent applicable, the pupil performance of a public school 4 academy shall be assessed using at least a Michigan education 5 assessment program (MEAP) test or an assessment instrument devel- 6 oped under section 1279.for a state-endorsed high school7diploma.8 (b) A description of the method to be used to monitor the 9 public school academy's compliance with applicable law and its 10 performance in meeting its targeted educational objectives. 11 (c) A description of the process for amending the contract 12 during the term of the contract. 13 (d) All of the matters set forth in the application for the 14 contract. 15 (e) For a public school academy authorized by a school dis- 16 trict OR INTERMEDIATE SCHOOL DISTRICT, an agreement that employ- 17 ees of the public school academy will be covered by the collec- 18 tive bargaining agreements that apply to employees of the school 19 district OR INTERMEDIATE SCHOOL DISTRICT, AS APPLICABLE, employed 20 in similar classifications in schools OR PROGRAMS that are not 21 public school academies. 22 (f) Procedures for revoking the contract and grounds for 23 revoking the contract, including at least the grounds listed in 24 section 507. 25 (g) A description of and address for the proposed physical 26 plant in which the public school academy will be located. 00688'01 4 1 (h) Requirements and procedures for financial audits. The 2 financial audits shall be conducted at least annually by a 3 certified public accountant in accordance with generally accepted 4 governmental auditing principles. 5 (6) A public school academy shall comply with all applicable 6 law, including all of the following: 7 (a) The open meetings act,Act No. 267 of the Public Acts8of 1976, being sections 15.261 to 15.275 of the Michigan Compiled9Laws1976 PA 267, MCL 15.261 TO 15.275. 10 (b) The freedom of information act,Act No. 442 of the11Public Acts of 1976, being sections 15.231 to 15.246 of the12Michigan Compiled Laws1976 PA 442, MCL 15.231 TO 15.246. 13 (c)Act No. 336 of the Public Acts of 1947, being14sections 423.201 to 423.217 of the Michigan Compiled Laws1947 15 PA 336, MCL 423.201 TO 423.217. 16 (d)Act No. 166 of the Public Acts of 1965, being17sections 408.551 to 408.558 of the Michigan Compiled Laws1965 18 PA 166, MCL 408.551 TO 408.558. 19 (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 20 1274. 21 (7) A public school academy and its incorporators, board 22 members, officers, employees, and volunteers have governmental 23 immunity as provided in section 7 ofAct No. 170 of the Public24Acts of 1964, being section 691.1407 of the Michigan Compiled25Laws1964 PA 170, MCL 691.1407. An authorizing body and its 26 board members, officers, and employees are immune from civil 27 liability, both personally and professionally, for any acts or 00688'01 5 1 omissions in authorizing a public school academy if the 2 authorizing body or the person acted or reasonably believed he or 3 she acted within the authorizing body's or the person's scope of 4 authority. 5 (8) A public school academy is exempt from all taxation on 6 its earnings and property. Instruments of conveyance to or from 7 a public school academy are exempt from all taxation including 8 taxes imposed byAct No. 134 of the Public Acts of 1966, being9sections 207.501 to 207.513 of the Michigan Compiled Laws1966 10 PA 134, MCL 207.501 TO 207.513. A public school academy may not 11 levy ad valorem property taxes or any other tax for any purpose. 12 However, operation of 1 or more public school academies by a 13 school district or intermediate school district does not affect 14 the ability of the school district or intermediate school dis- 15 trict to levy ad valorem property taxes or any other tax. 16 (9) A public school academy may acquire by purchase, gift, 17 devise, lease, sublease, installment purchase agreement, land 18 contract, option, or by any other means, hold and own in its own 19 name buildings and other property for school purposes, and inter- 20 ests therein, and other real and personal property, including, 21 but not limited to, interests in property subject to mortgages, 22 security interests, or other liens, necessary or convenient to 23 fulfill its purposes. For the purposes of condemnation, a public 24 school academy may proceed under the uniform condemnation proce- 25 dures act,Act No. 87 of the Public Acts of 1980, being sections26213.51 to 213.77 of the Michigan Compiled Laws1980 PA 87, MCL 27 213.51 TO 213.75, excluding sections 6 to 9 of that act,being00688'01 6 1sections 213.56 to 213.59 of the Michigan Compiled LawsMCL 2 213.56 TO 213.59, or other applicable statutes, but only with the 3 express, written permission of the authorizing body in each 4 instance of condemnation and only after just compensation has 5 been determined and paid. 00688'01 Final page. TAV