HOUSE BILL No. 4800 May 22, 2001, Introduced by Reps. Kuipers, Bradstreet, DeWeese, Voorhees, Koetje, Kooiman, Drolet, Gosselin and Jansen and referred to the Committee on Education. A bill to amend 1976 PA 451, entitled "The revised school code," by amending sections 501, 502, 503, 504, 504a, 506, 507, 1701a, and 1711 (MCL 380.501, 380.502, 380.503, 380.504, 380.504a, 380.506, 380.507, 380.1701a, and 380.1711), sections 501, 502, 503, 504a, and 507 as amended by 1995 PA 289, sections 504 and 1701a as amended by 1994 PA 416, and section 506 as added by 1993 PA 362, and by adding sections 503b, 1320, and 1814. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 501. (1) A public school academy is a public school 2 under section 2 of article VIII of the state constitution of 3 1963, is a school district for the purposes of section 11 of 4 article IX of the state constitution of 1963 and for the purposes 5 of section 1225 AND SECTION 1351A, and is subject to the 6 leadership and general supervision of the state board over all 02493'01 * TAV 2 1 public education under section 3 of article VIII of the state 2 constitution of 1963. A public school academy is a body corpo- 3 rate and is a governmental agency. The powers granted to a 4 public school academy under this part constitute the performance 5 of essential public purposes and governmental functions of this 6 state. 7 (2) As used in this part: 8 (a) "Authorizing body" means any of the following that 9 issues a contract as provided in this part: 10 (i) The board of a school district that operates grades K to 11 12. 12 (ii) An intermediate school board. 13 (iii) The board of a community college. 14 (iv) The governing board of a state public university. 15 (v) TWO OR MORE ENTITIES DESCRIBED IN SUBPARAGRAPHS (i) TO 16 (iv) ACTING JOINTLY PURSUANT TO AN INTERLOCAL AGREEMENT AUTHO- 17 RIZED UNDER THE URBAN COOPERATION ACT OF 1967, 1967 (EX SESS) 18 PA 7, MCL 124.501 TO 124.512. 19 (b) "Certificated teacher" means an individual who holds a 20 valid teaching certificate issued by the state board under 21 section 1531. 22 (c) "Community college" means a community college organized 23 under the community college act of 1966,Act No. 331 of the24Public Acts of 1966, being sections 389.1 to 389.195 of the25Michigan Compiled Laws,1966 PA 331, MCL 389.1 TO 389.195; A 26 COMMUNITY COLLEGE OPERATED BY A SCHOOL DISTRICT UNDER PART 25; or 27 a federal tribally controlled community college that is 02493'01 * 3 1 recognized under the tribally controlled community college 2 assistance act of 1978, Public Law 95-471, 92 Stat. 1325, and is 3 determined by the department to meet the requirements for accred- 4 itation by a recognized regional accrediting body. 5 (d) "Contract" means the executive act taken by an authoriz- 6 ing body that evidences the authorization of a public school 7 academy and that establishes, subject to the constitutional 8 powers of the state board and applicable law, the written instru- 9 ment executed by an authorizing body conferring certain rights, 10 franchises, privileges, and obligations on a public school acade- 11 my, as provided by this part, and confirming the status of a 12 public school academy as a public school in this state. 13 (e) "Entity" means a partnership, nonprofit or business cor- 14 poration, labor organization, or any other association, corpora- 15 tion, trust, or other legal entity. 16 (f) "State public university" means a university described 17 in section 4, 5, or 6 of article VIII of the state constitution 18 of 1963. 19 Sec. 502. (1) A public school academy shall be organized 20 and administered under the direction of a board of directors in 21 accordance with this part and with bylaws adopted by the board of 22 directors. A public school academy corporation shall be orga- 23 nized under the nonprofit corporation act,Act No. 162 of the24Public Acts of 1982, being sections 450.2101 to 450.3192 of the25Michigan Compiled Laws1982 PA 162, MCL 450.2101 TO 450.3192, 26 except that a public school academy corporation is not required 27 to comply with sections 170 to 177 ofAct No. 327 of the Public02493'01 * 4 1Acts of 1931, being sections 450.170 to 450.177 of the Michigan2Compiled Laws1931 PA 327, MCL 450.170 TO 450.177. To the 3 extent disqualified under the state or federal constitution, a 4 public school academy shall not be organized by a church or other 5 religious organization and shall not have any organizational or 6 contractual affiliation with or constitute a church or other 7 religious organization. 8 (2) Any of the following may act as an authorizing body to 9 issue a contract to organize and operate 1 or more public school 10 academies under this part: 11 (a) The board of a school district that operates grades K to 12 12. However, EXCEPT WHEN ACTING JOINTLY WITH ANOTHER ENTITY AS 13 DESCRIBED IN SUBDIVISION (E), the board of a school district 14 shall not issue a contract for a public school academy to operate 15 outside the school district's boundaries, and a public school 16 academy authorized by the board of a school district shall not 17 operate outside that school district's boundaries. 18 (b) An intermediate school board. However, EXCEPT WHEN 19 ACTING JOINTLY WITH ANOTHER ENTITY AS DESCRIBED IN SUBDIVISION 20 (E), the board of an intermediate school district shall not issue 21 a contract for a public school academy to operate outside the 22 intermediate school district's boundaries, and a public school 23 academy authorized by the board of an intermediate school dis- 24 trict shall not operate outside that intermediate school 25 district's boundaries. 26 (c) The board of a community college. However, EXCEPT WHEN 27 ACTING JOINTLY WITH ANOTHER ENTITY AS DESCRIBED IN SUBDIVISION 02493'01 * 5 1 (E), AND except as otherwise provided in this subdivision,the2board of a community college shall not issue a contract for a3public school academy to operate in a school district organized4as a school district of the first class, a public school academy5authorized by the board of a community college shall not operate6in a school district organized as a school district of the first7class,the board of a community college shall not issue a con- 8 tract for a public school academy to operate outside the bounda- 9 ries of the community college district,and a public school 10 academy authorized by the board of a community college shall not 11 operate outside the boundaries of the community college 12 district. THE BOARD OF A COMMUNITY COLLEGE LOCATED IN A COUNTY 13 WITH A POPULATION OF AT LEAST 2,000,000 MAY ISSUE A CONTRACT FOR 14 A PUBLIC SCHOOL ACADEMY TO OPERATE ANYWHERE WITHIN THE BOUNDARIES 15 OF THAT COUNTY. The board of a community college also may issue a 16 contract for not more than 1 public school academy to operate on 17 the grounds of an active or closed federal military installation 18 located outside the boundaries of the community college district, 19 or may operate a public school academy itself on the grounds of 20 such a federal military installation, if the federal military 21 installation is not located within the boundaries of any commu- 22 nity college district and the community college has previously 23 offered courses on the grounds of the federal military installa- 24 tion for at least 10 years. 25 (d) The governing board of a state public university. 26 However, the combined total number of contractsfor public27school academiesissued by all state public universities FOR 02493'01 * 6 1 PUBLIC SCHOOL ACADEMIES shall not exceed 85 through 1996,and 2, after the initial evaluation under section 501a,shall not 3 exceed 100 through 1997, 125 through 1998,or150thereafter4 THROUGH 2000, 200 THROUGH 2001, AND 250 THROUGH 2002. AFTER 5 2002, THIS MAXIMUM NUMBER OF CONTRACTS THAT MAY BE ISSUED BY 6 STATE PUBLIC UNIVERSITIES SHALL INCREASE BY 25 EACH YEAR. 7 HOWEVER, BEGINNING IN 2001 NOT MORE THAN 10% OF THE CONTRACTS 8 ISSUED BY STATE PUBLIC UNIVERSITIES DURING A CALENDAR YEAR SHALL 9 BE FOR PUBLIC SCHOOL ACADEMIES TO BE LOCATED IN A SCHOOL DISTRICT 10 OF THE FIRST CLASS. Further, the total number of contracts issued 11 by any 1 state public university shall not exceed5012through 1996, and thereafter shall not exceed50% of the maximum 13 combined total number that may be issued under this subdivision. 14 (E) TWO OR MORE ENTITIES DESCRIBED IN SUBDIVISIONS (A) TO 15 (D) ACTING JOINTLY PURSUANT TO AN INTERLOCAL AGREEMENT AUTHORIZED 16 UNDER THE URBAN COOPERATION ACT OF 1967, 1967 (EX SESS) PA 7, 17 MCL 124.501 TO 124.512. AT A MINIMUM, THIS AGREEMENT SHALL SPEC- 18 IFY WHICH ENTITY SHALL ISSUE THE CONTRACT AND WHICH ENTITY SHALL 19 BE RESPONSIBLE FOR MONITORING COMPLIANCE BY THE PUBLIC SCHOOL 20 ACADEMY AND ITS BOARD WITH THE CONTRACT AND APPLICABLE LAW. 21 (3) To obtain a contract to organize and operate 1 or more 22 public school academies, 1 or more persons or an entity may apply 23 to an authorizing body described in subsection (2). The applica- 24 tion shall include at least all of the following: 25 (a) Identification of the applicant for the contract. 26 (b) Subject to the resolution adopted by the authorizing 27 body under section503(4)503, a list of the proposed members 02493'01 * 7 1 of the board of directors of the public school academy and a 2 description of the qualifications and method for appointment or 3 election of members of the board of directors. 4 (c) The proposed articles of incorporation, which shall 5 include at least all of the following: 6 (i) The name of the proposed public school academy. 7 (ii) The purposes for the public school academy 8 corporation. This language shall provide that the public school 9 academy is incorporated pursuant to this part and that the public 10 school academy corporation is a governmental entity AND POLITICAL 11 SUBDIVISION OF THIS STATE. 12 (iii) The name of the authorizing body. 13 (iv) The proposed time when the articles of incorporation 14 will be effective. 15 (v) Other matters considered expedient to be in the articles 16 of incorporation. 17 (d) A copy of the proposed bylaws of the public school 18 academy. 19 (e) Documentation meeting the application requirements of 20 the authorizing body, including at least all of the following: 21 (i) The governance structure of the public school academy. 22 (ii) A copy of the educational goals of the public school 23 academy and the curricula to be offered and methods of pupil 24 assessment to be used by the public school academy. To the 25 extent applicable, the progress of the pupils in the public 26 school academy shall be assessed using at least a Michigan 27 education assessment program (MEAP) test or an assessment 02493'01 * 8 1 instrument developed under section 1279.for a state-endorsed2high school diploma.3 (iii) The admission policy and criteria to be maintained by 4 the public school academy. The admission policy and criteria 5 shall comply with section 504. This part of the application also 6 shall include a description of how the applicant will provide to 7 the general public adequate notice that a public school academy 8 is being created and adequate information on the admission 9 policy, criteria, and process. 10 (iv) The school calendar and school day schedule. 11 (v) The age or grade range of pupils to be enrolled. 12 (f) Descriptions of staff responsibilities.and of the13public school academy's governance structure.14 (g) For an application to the board of a school district, an 15 intermediate school board, or board of a community college, iden- 16 tification of the local and intermediate school districts in 17 which the public school academy will be located. 18 (h) An agreement that the public school academy will comply 19 with the provisions of this part and, subject to the provisions 20 of this part, with all other state law applicable to public 21 bodies and with federal law applicable to public bodies or school 22 districts. THIS AGREEMENT DOES NOT RELIEVE ANOTHER GOVERNMENTAL 23 ENTITY OF ITS ENFORCEMENT OR SUPERVISORY RESPONSIBILITY UNDER ANY 24 OTHER LAW. 25(i) For a public school academy authorized by a school dis-26trict, an assurance that employees of the public school academy27will be covered by the collective bargaining agreements that02493'01 * 9 1apply to other employees of the school district employed in2similar classifications in schools that are not public school3academies.4 (I)(j)A description of and address for the proposed 5 physical plant in which the public school academy will be 6 located. 7 (J) IF AN EDUCATIONAL MANAGEMENT ORGANIZATION IS EXPECTED TO 8 BE INVOLVED IN OPERATING THE PUBLIC SCHOOL ACADEMY, THE NAME AND 9 PRINCIPAL OFFICERS OF THE EDUCATIONAL MANAGEMENT ORGANIZATION, IF 10 AVAILABLE. 11 (4) An authorizing body shall oversee, or shall contract 12 with an intermediate school district, community college, or state 13 public university to oversee, each public school academy BOARD OF 14 DIRECTORS operating under a contract issued by the authorizing 15 body. The oversight shall be sufficient to ensure that the 16 authorizing body can certify that the public school academy is in 17 compliance withstatute, rules,APPLICABLE LAW and the terms of 18 the contract. 19 (5) If thestate boardSUPERINTENDENT OF PUBLIC 20 INSTRUCTION finds that an authorizing body is not engaging in 21 appropriate continuing oversight of 1 or more public school acad- 22 emies operating under a contract issued by the authorizing body, 23 thestate boardSUPERINTENDENT OF PUBLIC INSTRUCTION may sus- 24 pend the power of the authorizing body to issue new contracts to 25 organize and operate public school academies. A contract issued 26 by the authorizing body during the suspension is void. A 02493'01 * 10 1 contract issued by the authorizing body before the suspension is 2 not affected by the suspension. 3 (6) An authorizing body shall not charge a fee, or require 4 reimbursement of expenses, for considering an application for a 5 contract, for issuing a contract, or for providing oversight of a 6 contract for a public school academy in an amount that exceeds a 7 combined total of 3% of the total state school aid received by 8 the public school academy in the school year in which the fees or 9 expenses are charged. An authorizing body may provide other 10 services for a public school academy and charge a fee for those 11 services, but shall not require such an arrangement as a condi- 12 tion to issuing the contract authorizing the public school 13 academy. 14 (7) A public school academy shall be presumed to be legally 15 organized if it has exercised the franchises and privileges of a 16 public school academy for at least 2 years. 17 (8) AN AUTHORIZING BODY MAY ENTER INTO AN INTERGOVERNMENTAL 18 AGREEMENT WITH ANOTHER AUTHORIZING BODY TO ISSUE PUBLIC SCHOOL 19 ACADEMY CONTRACTS. AT A MINIMUM, THE AGREEMENT SHALL SPECIFY 20 WHICH AUTHORIZING BODY SHALL ISSUE THE CONTRACT AND WHICH AUTHO- 21 RIZING BODY WILL BE RESPONSIBLE FOR MONITORING COMPLIANCE BY THE 22 PUBLIC SCHOOL ACADEMY BOARD OF DIRECTORS WITH THE CONTRACT AND 23 ALL APPLICABLE LAW. 24 Sec. 503. (1) An authorizing body is not required to issue 25 a contract to any person or entity. Public school academy con- 26 tracts shall be issued on a competitive basis taking into 27 consideration the resources available for the proposed public 02493'01 * 11 1 school academy, the population to be served by the proposed 2 public school academy, THE QUALIFICATIONS OF THE APPLICANT AND 3 THE PROPOSED BOARD OF DIRECTORS, and the educational goals to be 4 achieved by the proposed public school academy. IN CONSIDERING 5 APPLICATIONS FOR CONTRACTS, AN AUTHORIZING BODY SHOULD GIVE PRI- 6 ORITY TO THOSE THAT PROPOSE SIGNIFICANT ACADEMIC ACHIEVEMENT 7 GOALS, WHICH MAY INCLUDE REDUCTIONS IN ACHIEVEMENT GAPS SUCH AS 8 GAPS IDENTIFIED AMONG PUPILS BY RACE, GENDER, OR SOCIOECONOMIC 9 STATUS. 10 (2) If a person or entity applies to the board of a school 11 district for a contract to organize and operate 1 or more public 12 school academies within the boundaries of the school district and 13 the board does not issue the contract, the person or entity may 14 petition the board to place the question of issuing the contract 15 on the ballot to be decided by the school electors of the school 16 district. The petition shall contain A CONCISE SUMMARY OF all of 17 the information required to be in thecontractapplication 18 under section502(3)502 and shall be signed by a number of 19 school electors of the school district equal to at least 15% of 20 the total number of school electors of that school district. The 21 petition shall be filed with the secretary of the board. If the 22 board receives a petition meeting the requirements of this sub- 23 section, the board shall place the question of issuing the con- 24 tract on the ballot at its nextannualREGULAR school election 25 held at least 60 days after receiving the petition. If a major- 26 ity of the school electors of the school district voting on the 02493'01 * 12 1 question vote to issue the contract, the board shall issue the 2 contract. 3 (3) Within 10 days after issuing a contract for a public 4 school academy, theboard of theauthorizing body shall submit 5to the state boarda copy of the contract and of the 6application under section 502AGREEMENT BETWEEN THE PUBLIC 7 SCHOOL ACADEMY AND AN EDUCATIONAL MANAGEMENT ORGANIZATION, IF 8 APPLICABLE, TO THE SUPERINTENDENT OF PUBLIC INSTRUCTION. 9 (4) An authorizing body shall adopt a resolution establish- 10 ing the method of selection, THE METHOD OF REMOVAL OR 11 REPLACEMENT, length of term, and number of members of the board 12 of directors of each public school academy subject to its 13 jurisdiction. 14 (5) A contract issued to organize and administer a public 15 school academy shall contain at least all of the following: 16 (a)TheMEASURABLE educational goals FOR PUPIL PERFORMANCE 17 THAT the public school academy is to achieve and the methods by 18 which it will be held accountable. To the extent applicable, the 19 pupil performance of a public school academy shall be assessed 20 using at least a Michigan education assessment program (MEAP) 21 test or an assessment instrument developed under section 1279. 22for a state-endorsed high school diploma.THIS PROVISION MAY 23 CONTAIN AN AGREEMENT TO MEET ANNUAL BENCHMARKS FOR ADEQUATE 24 YEARLY PROGRESS OR VALUE-ADDED RESULTS AS MEASURED BY MEAP TESTS 25 AND OTHER PERFORMANCE MEASURES. 02493'01 * 13 1 (b) A description of the method to be used to monitor the 2 public school academy's compliance with applicable law and its 3 performance in meeting its targeted educational objectives. 4 (c) A description of the process for amending the contract 5 during the term of the contract. 6 (d) All of the matters set forth in the application for the 7 contract. 8(e) For a public school academy authorized by a school dis-9trict, an agreement that employees of the public school academy10will be covered by the collective bargaining agreements that11apply to employees of the school district employed in similar12classifications in schools that are not public school academies.13 (E)(f)Procedures for revoking the contract and grounds 14 for revoking the contract, including at least the grounds listed 15 in section 507. 16 (F)(g)A description of and address for the proposed 17 physical plant in which the public school academy will be 18 located. 19 (G)(h)Requirements and procedures for financial audits. 20 The financial audits shall be conducted at least annually by a 21 certified public accountant in accordance with generally accepted 22 governmental auditing principles. 23 (6) A public school academy shall comply with all applicable 24 law, including all of the following: 25 (a) The open meetings act,Act No. 267 of the Public Acts26of 1976, being sections 15.261 to 15.275 of the Michigan Compiled27Laws1976 PA 267, MCL 15.261 TO 15.275. 02493'01 * 14 1 (b) The freedom of information act,Act No. 442 of the2Public Acts of 1976, being sections 15.231 to 15.246 of the3Michigan Compiled Laws1976 PA 442, MCL 15.231 TO 15.246. 4 (c)Act No. 336 of the Public Acts of 1947, being5sections 423.201 to 423.217 of the Michigan Compiled Laws1947 6 PA 336, MCL 423.201 TO 423.217. 7 (d)Act No. 166 of the Public Acts of 1965, being8sections 408.551 to 408.558 of the Michigan Compiled Laws1965 9 PA 166, MCL 408.551 TO 408.558. 10 (e)Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and111274ANY PROVISION OF THIS ACT THAT APPLIES SPECIFICALLY BY REF- 12 ERENCE TO PUBLIC SCHOOL ACADEMIES OR THAT APPLIES SPECIFICALLY BY 13 REFERENCE TO A PUBLIC SCHOOL. 14 (7) A public school academy IS A SCHOOL DISTRICT FOR THE 15 PURPOSES OF 1964 PA 170, MCL 691.1401 TO 691.1415. A PUBLIC 16 SCHOOL ACADEMY and its incorporators, board members, officers, 17 employees, and volunteers have governmental immunity as provided 18 in section 7 ofAct No. 170 of the Public Acts of 1964, being19section 691.1407 of the Michigan Compiled Laws1964 PA 170, 20 MCL 691.1407. An authorizing body and its board members, offi- 21 cers, and employees are immune from civil liability, both person- 22 ally and professionally, for any acts or omissions in 23authorizing a public school academyCARRYING OUT A FUNCTION 24 PURSUANT TO THIS PART if the authorizing body or the person acted 25 or reasonably believed he or she acted within the authorizing 26 body's or the person's scope of authority. 02493'01 * 15 1 (8) A public school academy is exempt from all taxation on 2 its earnings and property. Instruments of conveyance to or from 3 a public school academy are exempt from all taxation including 4 taxes imposed byAct No. 134 of the Public Acts of 1966, being5sections 207.501 to 207.513 of the Michigan Compiled Laws1966 6 PA 134, MCL 207.501 TO 207.513. A public school academy may not 7 levy ad valorem property taxes or any other tax for any purpose. 8 However, operation of 1 or more public school academies by a 9 school district or intermediate school district does not affect 10 the ability of the school district or intermediate school dis- 11 trict to levy ad valorem property taxes or any other tax. 12 (9) A public school academy may acquire by purchase, gift, 13 devise, lease, sublease, installment purchase agreement, land 14 contract, option, or by any other means, hold and own in its own 15 name buildings and other property for school purposes, and inter- 16 ests therein, and other real and personal property, including, 17 but not limited to, interests in property subject to mortgages, 18 security interests, or other liens, necessary or convenient to 19 fulfill its purposes. For the purposes of condemnation, a public 20 school academy may proceed under the uniform condemnation proce- 21 dures act,Act No. 87 of the Public Acts of 1980, being sections22213.51 to 213.77 of the Michigan Compiled Laws1980 PA 87, 23 MCL 213.51 TO 213.75, excluding sections 6 to 9 of that act, 24being sections 213.56 to 213.59 of the Michigan Compiled Laws25 MCL 213.56 TO 213.59, or other applicable statutes, but only with 26 the express, written permission of the authorizing body in each 02493'01 * 16 1 instance of condemnation and only after just compensation has 2 been determined and paid. 3 (10) ALL OF THE FOLLOWING APPLY TO THE BOARD OF DIRECTORS OF 4 A PUBLIC SCHOOL ACADEMY: 5 (A) A MEMBER OF THE BOARD OF DIRECTORS OF A PUBLIC SCHOOL 6 ACADEMY IS A PUBLIC OFFICER AND, BEFORE ENTERING UPON THE DUTIES 7 OF THE OFFICE, SHALL TAKE THE CONSTITUTIONAL OATH OF OFFICE FOR 8 PUBLIC OFFICERS PRESCRIBED UNDER SECTION 1 OF ARTICLE XI OF THE 9 STATE CONSTITUTION OF 1963. 10 (B) A VACANCY IN THE OFFICE OF A MEMBER OF THE BOARD OF 11 DIRECTORS OCCURS IMMEDIATELY, WITHOUT DECLARATION BY AN OFFICER 12 OR ACCEPTANCE BY THE BOARD OF DIRECTORS OR 1 OF ITS MEMBERS OR AN 13 AUTHORIZING BODY, UPON 1 OF THE FOLLOWING EVENTS: 14 (i) THE DEATH OF THE INCUMBENT, OR THE INCUMBENT'S BEING 15 ADJUDICATED INSANE OR BEING FOUND TO BE MENTALLY INCOMPETENT BY A 16 PROPER COURT. 17 (ii) THE INCUMBENT'S RESIGNATION. 18 (iii) THE INCUMBENT'S REMOVAL FROM OFFICE. 19 (iv) THE INCUMBENT'S CONVICTION OF A FELONY. 20 (v) THE INCUMBENT'S APPOINTMENT BEING DECLARED VOID BY THE 21 AUTHORIZING BODY OR A COMPETENT COURT. 22 (vi) THE INCUMBENT'S NEGLECT OR FAILURE TO FILE THE ACCEP- 23 TANCE OF OFFICE WITH THE AUTHORIZING BODY OR TO TAKE THE OATH OF 24 OFFICE. 25 (vii) THE INCUMBENT'S CEASING TO POSSESS THE LEGAL QUALIFI- 26 CATIONS FOR HOLDING OFFICE. 02493'01 * 17 1 (viii) THE INCUMBENT CEASING TO RESIDE IN THIS STATE. 2 (C) EXCEPT AS OTHERWISE DIRECTED BY THE AUTHORIZING BODY, 3 THE TERM OF OFFICE FOR A MEMBER OF THE BOARD OF DIRECTORS COM- 4 MENCES ON JULY 1 OF THE YEAR IN WHICH THE APPOINTMENT WAS MADE. 5 MEMBERS OF THE BOARD OF DIRECTORS MAY BE APPOINTED TO SERVE MORE 6 THAN 1 TERM IN OFFICE, BUT THE LENGTH OF THE TERM IN OFFICE SHALL 7 NOT EXCEED 4 YEARS. THE TERMS OF OFFICE OF THE INITIAL BOARD OF 8 DIRECTORS SHALL BE DETERMINED BY THE AUTHORIZING BODY. 9 (D) A MEMBER APPOINTED TO FILL A VACANCY CREATED OTHER THAN 10 BY EXPIRATION OF A TERM SHALL BE APPOINTED FOR THE UNEXPIRED TERM 11 OF THE VACATING MEMBER IN THE SAME MANNER AS THE ORIGINAL 12 APPOINTMENT. 13 SEC. 503B. (1) IF A PUBLIC SCHOOL ACADEMY IS NO LONGER 14 AUTHORIZED TO OPERATE AS A PUBLIC SCHOOL ACADEMY UNDER THIS PART, 15 TITLE TO ALL REAL AND PERSONAL PROPERTY, INTERESTS IN REAL OR 16 PERSONAL PROPERTY, AND OTHER ASSETS OWNED BY THE PUBLIC SCHOOL 17 ACADEMY SHALL REVERT TO THIS STATE. ANY MONEY INCLUDED IN THOSE 18 ASSETS AND THE NET PROCEEDS FROM THE SALE OF THE PROPERTY OR 19 INTERESTS IN PROPERTY, AFTER PAYMENT OF ANY DEBT SECURED BY THE 20 PROPERTY OR INTEREST IN PROPERTY, SHALL BE DEPOSITED IN THE STATE 21 SCHOOL AID FUND. 22 (2) AN AGREEMENT, MORTGAGE, LOAN, OR OTHER INSTRUMENT OF 23 INDEBTEDNESS ENTERED INTO BY A PUBLIC SCHOOL ACADEMY AND A THIRD 24 PARTY DOES NOT CONSTITUTE AN OBLIGATION, EITHER GENERAL, SPECIAL, 25 OR MORAL, OF THIS STATE OR AN AUTHORIZING BODY. THE FULL FAITH 26 AND CREDIT OR THE TAXING POWER OF THIS STATE OR ANY AGENCY OF 27 THIS STATE, OR THE FULL FAITH AND CREDIT OF AN AUTHORIZING BODY, 02493'01 * 18 1 MAY NOT BE PLEDGED FOR THE PAYMENT OF ANY PUBLIC SCHOOL ACADEMY 2 AGREEMENT, MORTGAGE, LOAN, OR OTHER INSTRUMENT OF INDEBTEDNESS. 3 (3) THIS PART DOES NOT IMPOSE ANY LIABILITY ON THIS STATE OR 4 ON AN AUTHORIZING BODY FOR ANY DEBT INCURRED BY A PUBLIC SCHOOL 5 ACADEMY. 6 Sec. 504. (1) A public school academy may be located in all 7 or part of an existing public school building. A public school 8 academy shall not operate at a site other than the single site 9 requested for the configuration of grades that will use the site, 10 as specified in the application required under section 502 and in 11 the contract. 12 (2) A public school academy shall not charge tuition.and13 EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A PUBLIC SCHOOL 14 ACADEMY shall not discriminate in its pupil admissions policies 15 or practices on the basis of intellectual or athletic ability, 16 measures of achievement or aptitude, status as a handicapped 17 person, or any other basis that would be illegal if used by a 18 school district. However, a public school academy may limit 19 admission to pupils who are within a particular range of age or 20 grade level or on any other basis that would be legal if used by 21 a school district AND MAY GIVE ENROLLMENT PRIORITY AS PROVIDED IN 22 SUBSECTION (4). 23 (3) Except for a foreign exchange student who is not a 24 United States citizen, a public school academy shall not enroll a 25 pupil who is not a resident of this state. Enrollment in the 26 public school academymaySHALL be open to all individuals who 27 reside in this state who meet the admission policy and shall be 02493'01 * 19 1 open to all pupils who reside within the geographic boundaries, 2 if any, of the authorizing body as described in 3 section502(2)(a) to (c)502(2) who meet the admission policy, 4 except that admission to a public school academy authorized by 5 the board of a community college to operate, or operated by the 6 board of a community college, on the grounds of a federal mili- 7 tary installation, as described in section 502(2)(c), shall be 8 open to all pupils who reside in the county in which the federal 9 military installation is located. For a public school academy 10 authorized by a state public university, enrollment shall be open 11 to all pupils who reside in this state who meet the admission 12 policy.IfSUBJECT TO SUBSECTION (4), IF there are more appli- 13 cations to enroll in the public school academy than there are 14 spaces available, pupils shall be selected to attend using a 15 random selection process.However, a public school academy may16give enrollment priority to a sibling of a pupil enrolled in the17public school academy.A public school academy shall allow any 18 pupil who was enrolled in the public school academy in the imme- 19 diately preceding school year to enroll in the public school 20 academy in the appropriate grade unless the appropriate grade is 21 not offered at that public school academy. 22 (4) A PUBLIC SCHOOL ACADEMY MAY GIVE ENROLLMENT PRIORITY TO 23 1 OR MORE OF THE FOLLOWING: 24 (A) A SIBLING OF A PUPIL ENROLLED IN THE PUBLIC SCHOOL 25 ACADEMY. 26 (B) A CHILD OF A PERSON WHO IS EMPLOYED BY OR AT THE PUBLIC 27 SCHOOL ACADEMY FOR AT LEAST AN AVERAGE OF 20 HOURS PER WEEK 02493'01 * 20 1 DURING THE SCHOOL YEAR. AS USED IN THIS SUBDIVISION, "CHILD" 2 INCLUDES AN ADOPTED CHILD OR A LEGAL WARD. 3 (5)(4) ASUBJECT TO THE TERMS OF THE CONTRACT AUTHORIZING 4 THE PUBLIC SCHOOL ACADEMY, A public school academy may include 5 any grade up to grade 12 or any configuration of those grades, 6 including kindergarten and early childhood education, as speci- 7 fied in its contract. If specified in its contract, a public 8 school academy may also operate an adult basic education program, 9 adult high school completion program, or general education devel- 10 opment testing preparation program. The authorizing body may 11 approve amendment of a contract with respect to ages of pupils or 12 grades offered. 13 Sec. 504a. In addition to other powers set forth in this 14 part, a public school academy may take action to carry out the 15 purposes for which it was incorporated under this part, includ- 16 ing, but not limited to, all of the following: 17 (a) To sue and be sued in its name. 18 (b)ToSUBJECT TO SECTION 503B, TO acquire, hold, and own 19 in its own name real and personal property, or interests in real 20 or personal property, for educational purposes by purchase, gift, 21 grant, devise, bequest, lease, sublease, installment purchase 22 agreement, land contract, option, or condemnation, and subject to 23 mortgages, security interests, or other liens; and to sell or 24 convey the property as the interests of the public school academy 25 require. 26 (c) To receive and disburse funds for lawful purposes. 02493'01 * 21 1 (d) To enter into binding legal agreements with persons or 2 entities as necessary for the operation, management, FINANCING, 3 and maintenance of the public school academy. 4 (e) To incur temporary debt in accordance with 5 section 1225. 6 (f) To solicit and accept any grants or gifts for educa- 7 tional purposes and to establish or permit to be established on 8 its behalf 1 or more nonprofit corporations the purpose of which 9 is to assist the public school academy in the furtherance of its 10 public purposes. 11 (G) TO BORROW MONEY AND ISSUE BONDS IN ACCORDANCE WITH 12 SECTION 1351A, EXCEPT THAT THE BORROWING OF MONEY AND ISSUANCE OF 13 BONDS BY A PUBLIC SCHOOL ACADEMY IS NOT SUBJECT TO 14 SECTION 1351A(5) OR SECTION 1351(2) TO (4). 15 Sec. 506.AAS SPECIFIED IN ITS CONTRACT, A public school 16 academy, with the approval of the authorizing body,may employ 17 orcontractENTER INTO AN AGREEMENT with personnel as necessary 18 for the operation of the public school academy, prescribe their 19 duties, and fix their compensation. 20 Sec. 507. (1) The authorizing body for a public school 21 academy is the fiscal agent for STATE SCHOOL AID FUNDS OF the 22 public school academy. A state school aid payment for a public 23 school academy shall be paid to the authorizing body that is the 24 fiscal agent for that public school academy, which shall then 25 forward the payment to the public school academy. An authorizing 26 body has the responsibility to overseea public school02493'01 * 22 1academy'scompliance BY A PUBLIC SCHOOL ACADEMY'S BOARD OF 2 DIRECTORS with the contract and all applicable law. 3 (2) A contract issued under this part may be revoked by the 4 authorizing body that issued the contract if the authorizing body 5 determines that 1 or more of the following has occurred: 6 (a) Failure of the public school academy to abide by and 7 meet the educational goals set forth in the contract. 8 (b) Failure of the public school academy to comply with all 9 applicable law. 10 (c) Failure of the public school academy to meet generally 11 accepted public sector accounting principles. 12 (d) The existence of 1 or more other grounds for revocation 13 as specified in the contract. 14 (3)(2)The decision of an authorizing body to ISSUE, 15 RENEW, OR revoke a contract under this section is solely within 16 the discretion of the authorizing body, is final, and is not 17 subject to review by a court or any state agency. An authorizing 18 body THAT DOES NOT ISSUE OR REISSUE A CONTRACT, OR that revokes a 19 contract under this section, is not liable for that action to the 20 public school academy, public school academy corporation, a pupil 21 of the public school academy, the parent or guardian of a pupil 22 of the public school academy, or any other person. 23 (4) AN AUTHORIZING BODY MAY REMOVE OR SUSPEND A MEMBER OF A 24 BOARD OF DIRECTORS OF A PUBLIC SCHOOL ACADEMY FROM OFFICE FOR 25 GROSS NEGLECT OF DUTY, CORRUPT CONDUCT IN OFFICE, KNOWING VIOLA- 26 TION OF A CONTRACT, OR FOR ANY OTHER MISFEASANCE OR MALFEASANCE 02493'01 * 23 1 AND SHALL REPORT THE REASONS FOR A REMOVAL OR SUSPENSION UNDER 2 THIS SUBSECTION TO THE SUPERINTENDENT OF PUBLIC INSTRUCTION. 3 SEC. 1320. (1) IF THE GOVERNING BOARD OF A PUBLIC SCHOOL 4 ENTERS INTO A CONTRACT WITH AN EDUCATIONAL MANAGEMENT ORGANIZA- 5 TION TO CARRY OUT THE OPERATIONS OF THE PUBLIC SCHOOL UNDER THIS 6 ACT, THE CONTRACT BETWEEN THE GOVERNING BOARD AND THE EDUCATIONAL 7 MANAGEMENT ORGANIZATION SHALL CONTAIN AT LEAST ALL OF THE FOLLOW- 8 ING PROVISIONS: 9 (A) THAT THE GOVERNING BOARD OF THE PUBLIC SCHOOL HAS CON- 10 DUCTED SUFFICIENT DUE DILIGENCE TO BE SURE THAT THE EDUCATIONAL 11 MANAGEMENT ORGANIZATION HAS SUFFICIENT FINANCIAL RESOURCES, EDU- 12 CATIONAL SERVICES CAPACITY, AND MANAGERIAL EXPERIENCE TO PROVIDE 13 THE CONTRACTED SERVICES. 14 (B) THAT THE GOVERNING BOARD OF THE PUBLIC SCHOOL WILL 15 RETAIN INDEPENDENT LEGAL COUNSEL IN ALL NEGOTIATIONS WITH THE 16 EDUCATIONAL MANAGEMENT ORGANIZATION. 17 (C) AGREEMENTS THAT THE FINANCIAL, EDUCATIONAL, AND STUDENT 18 RECORDS PERTAINING TO THE PUBLIC SCHOOL AND ITS PUPILS ARE PUBLIC 19 RECORDS AND THE PROPERTY OF THE PUBLIC SCHOOL AND, EXCEPT AS 20 REQUIRED BY APPLICABLE LAW, THAT THE EDUCATIONAL MANAGEMENT 21 ORGANIZATION AGREES TO MAKE THESE RECORDS AVAILABLE IN ACCORDANCE 22 WITH THE FREEDOM OF INFORMATION ACT, 1976 PA 442, MCL 15.231 TO 23 15.246. 24 (D) IF APPLICABLE, ASSURANCE THAT THE EDUCATIONAL MANAGEMENT 25 ORGANIZATION WILL FURNISH THE PUBLIC SCHOOL WITH CERTIFICATED 26 TEACHERS IN ACCORDANCE WITH THIS ACT. 02493'01 * 24 1 (E) IF APPLICABLE, ASSURANCE THAT THE EDUCATIONAL MANAGEMENT 2 ORGANIZATION WILL NOT FURNISH TO THE PUBLIC SCHOOL ANY TEACHER 3 WHO, IF EMPLOYED DIRECTLY BY THE PUBLIC SCHOOL, WOULD BE INELIGI- 4 BLE FOR EMPLOYMENT BY A SCHOOL DISTRICT AS A TEACHER UNDER THIS 5 ACT. 6 (F) THAT THE EDUCATIONAL MANAGEMENT ORGANIZATION SHALL PRO- 7 VIDE THE PUBLIC SCHOOL WITH THE NECESSARY FINANCIAL INFORMATION, 8 INCLUDING THE OBJECT OR FUNCTION LEVEL AMOUNT OF ADMINISTRATIVE 9 AND INSTRUCTIONAL SALARIES AND BENEFITS, AS APPLICABLE, FOR THE 10 PUBLIC SCHOOL TO MEET ITS REPORTING RESPONSIBILITIES UNDER THIS 11 ACT AND THE STATE SCHOOL AID ACT OF 1979. 12 (G) IF APPLICABLE, ASSURANCE THAT, IF THE EDUCATIONAL MAN- 13 AGEMENT ORGANIZATION PURCHASES EQUIPMENT, MATERIALS, AND SUPPLIES 14 ON BEHALF OF OR AS THE AGENT OF THE PUBLIC SCHOOL, SUCH EQUIP- 15 MENT, MATERIALS, AND SUPPLIES ARE AND WILL REMAIN THE PROPERTY OF 16 THE PUBLIC SCHOOL. 17 (2) AS USED IN THIS SECTION: 18 (A) "EDUCATIONAL MANAGEMENT ORGANIZATION" MEANS ANY PERSON 19 OR ENTITY PROVIDING ADMINISTRATIVE, MANAGERIAL, EDUCATIONAL, OR 20 INSTRUCTIONAL SUPPORT SERVICES TO A PUBLIC SCHOOL AS PERMITTED 21 UNDER THIS ACT. 22 (B) "ENTITY" MEANS A PARTNERSHIP, NONPROFIT OR BUSINESS COR- 23 PORATION, LABOR ORGANIZATION, OR ANY OTHER ASSOCIATION, CORPORA- 24 TION, LIMITED LIABILITY COMPANY, TRUST, OR OTHER LEGAL ENTITY. 25 (3) THIS SECTION APPLIES ONLY TO CONTRACTS ENTERED INTO 26 AFTER THE EFFECTIVE DATE OF THIS SECTION. 02493'01 * 25 1 Sec. 1701a. For the purposes of ensuring that a handicapped 2 person enrolled in a public school academy created underpart 6a3or 6bTHIS ACT is provided with special education programs and 4 services, the public school academy is considered to be a local 5 school district under this article AND SHALL PROVIDE APPROPRIATE 6 SPECIAL EDUCATION PROGRAMS AND SERVICES TO THE SAME EXTENT AS IS 7 REQUIRED FOR A LOCAL SCHOOL DISTRICT. 8 Sec. 1711. (1) The intermediate school board shall DO ALL 9 OF THE FOLLOWING: 10 (a) Develop, establish, and continually evaluate and modify 11 in cooperation with its constituent SCHOOL districts AND PUBLIC 12 SCHOOL ACADEMIES LOCATED WITHIN ITS BOUNDARIES, a plan for spe- 13 cial education which shall provide for the delivery of special 14 education programs and services designed to develop the maximum 15 potential of each handicapped person of whom the intermediate 16 school board is required to maintain a record under subdivision 17 (f). The plan shall coordinate the special education programs 18 and services operated or contracted for by the constituent SCHOOL 19 districts OR PUBLIC SCHOOL ACADEMIES and shall be submitted to 20 thestate boardSUPERINTENDENT OF PUBLIC INSTRUCTION forits21 HIS OR HER approval. 22 (b) Contract for the delivery of a special education program 23 or service, in accordance with the intermediate school district 24 plan in compliance with section 1701. Under the contract the 25 intermediate school board may operate special education programs 26 or services and furnish transportation services and room and 27 board. 02493'01 * 26 1 (c) Employ or engage special education personnel in 2 accordance with the intermediate school district plan, and 3 appoint a director of special education meeting the qualifica- 4 tions and requirements of the rules promulgated by thestate5boardSUPERINTENDENT OF PUBLIC INSTRUCTION. 6 (d) Accept and use available funds or contributions from 7 governmental or private sources for the purpose of providing spe- 8 cial education programs and services consistent with this 9 article. 10 (e) Lease, purchase, or otherwise acquire vehicles, sites, 11 buildings, or portions thereof, and equip them for its special 12 education staff, programs, and services. 13 (f) Maintain a record of each handicapped person under 26 14 years of age, who is a resident of 1 of its constituent SCHOOL 15 districts OR WHO IS A PUPIL IN A PUBLIC SCHOOL ACADEMY LOCATED 16 WITHIN ITS BOUNDARIES and who has not completed a normal course 17 of study and graduated from high school, and the special educa- 18 tion programs or services in which the handicapped person is par- 19 ticipating on the fourth Friday after Labor day and Friday before 20 Memorial day. The sole basis for determining the local school 21 district in which a handicapped person is a resident shall be the 22 rules promulgated by thestate boardSUPERINTENDENT OF PUBLIC 23 INSTRUCTION notwithstanding the provisions of section 1148. The 24 records shall be maintained in accordance with rules promulgated 25 by thestate boardSUPERINTENDENT OF PUBLIC INSTRUCTION. 26 (g) Have the authority to place in appropriate special 27 education programs or services a handicapped person for whom a 02493'01 * 27 1 constituent SCHOOL district OR PUBLIC SCHOOL ACADEMY LOCATED 2 WITHIN THE INTERMEDIATE SCHOOL DISTRICT'S BOUNDARIES is required 3 to provide special education programs or services under 4 section 1751. 5 (h) Investigate special education programs and services 6 operated or contracted for by the intermediate school board,or7 constituent SCHOOL district boards, OR A PUBLIC SCHOOL ACADEMY 8 LOCATED WITHIN ITS BOUNDARIES and report in writing failures to 9 comply with the provisions of a contract, statute, or rule gov- 10 erning the special education programs and services or with the 11 intermediate school district plan, to the local school district 12 board OR PUBLIC SCHOOL ACADEMY BOARD OF DIRECTORS and to the 13state boardSUPERINTENDENT OF PUBLIC INSTRUCTION. 14 (i) Operate the special education programs or services or 15 contract for the delivery of special education programs or serv- 16 ices by local school district boards OR PUBLIC SCHOOL ACADEMIES, 17 in accordance with section 1702, as if a local school district 18 under section 1751. The contract shall provide for items stated 19 in section 1751 and shall be approved by thestate board20 SUPERINTENDENT OF PUBLIC INSTRUCTION. The intermediate school 21 board shall contract for the transportation, or room and board, 22 or both, or persons participating in the program or service as if 23 a local school district board under sections 1756 and 1757. 24 (j) Receive the report of a parent or guardian or, with the 25 consent of a parent or guardian, receive the report of a licensed 26 physician, registered nurse, social worker, or school or other 27 appropriate professional personnel whose training and 02493'01 * 28 1 relationship to handicapped persons provide competence to judge 2 same and who in good faith believes that a person under 26 years 3 of age examined by the professional is or may be handicapped, and 4 immediately evaluate the person pursuant to rules promulgated by 5 the state board. A person making or filing this report or a 6 local school district board OR BOARD OF DIRECTORS OF A PUBLIC 7 SCHOOL ACADEMY shall not incur liability to a person by reason of 8 filing the report or seeking the evaluation, unless lack of good 9 faith is proven. 10 (k) Evaluate pupils in accordance with section 1311. 11 (2) The intermediate school board may expend up to 10% of 12 the annual budget but not to exceed $12,500.00, for special edu- 13 cation programs approved by the intermediate school board without 14 having to secure the approval of the state board. 15 SEC. 1814. (1) ANY PUPIL ADMISSION OR RECRUITMENT MATERIALS 16 PREPARED FOR OR DISTRIBUTED BY A PUBLIC SCHOOL SHALL INCLUDE A 17 STATEMENT THAT SPECIAL EDUCATION SERVICES REQUIRED BY LAW WILL BE 18 MADE AVAILABLE TO PUPILS ATTENDING THE PUBLIC SCHOOL. 19 (2) A MEMBER OR EMPLOYEE OF THE GOVERNING BOARD OF A PUBLIC 20 SCHOOL, OR ANY OTHER PERSON, WHO VIOLATES THIS SECTION OR CAUSES 21 THIS SECTION TO BE VIOLATED IS GUILTY OF A MISDEMEANOR PUNISHABLE 22 BY A FINE OF NOT MORE THAN $100.00 OR IMPRISONMENT FOR NOT MORE 23 THAN 30 DAYS, OR BOTH. 02493'01 * Final page. TAV