SB-0926, As Passed Senate, December 2, 2009

SUBSTITUTE FOR

SENATE BILL NO. 926

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 3, 6, 29, 94a, and 101 (MCL 388.1603,

388.1606, 388.1629, 388.1694a, and 388.1701), as amended by 2009 PA

121, and by adding section 9.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. (1) "Average daily attendance", for the purposes of

complying with federal law, means 92% of the pupils counted in

membership on the pupil membership count day, as defined in section

6(7).

(2) "Board" means the governing body of a district or public

school academy.

(3) "Center" means the center for educational performance and

information created in section 94a.

(4) "Cooperative education program" means a written voluntary

agreement between and among districts to provide certain

educational programs for pupils in certain groups of districts. The

written agreement shall be approved by all affected districts at

least annually and shall specify the educational programs to be

provided and the estimated number of pupils from each district who

will participate in the educational programs.

(5) "Department", except in section 107, means the department

of education.

(6) "District" means a local school district established under

the revised school code or, except in sections 6(4), 6(6), 13, 20,

22a, 23, 29, 31a, 51a(15), 105, and 105c, a public school academy.

Except in sections 6(4), 6(6), 13, 20, 22a, 29, 51a(15), 105, and

105c, district also includes a university school.

(7) "District of residence", except as otherwise provided in

this subsection, means the district in which a pupil's custodial

parent or parents or legal guardian resides. For a pupil described

in section 24b, the pupil's district of residence is the district

in which the pupil enrolls under that section. For a pupil

described in section 6(4)(d), the pupil's district of residence

shall be considered to be the district or intermediate district in

which the pupil is counted in membership under that section. For a

pupil under court jurisdiction who is placed outside the district

in which the pupil's custodial parent or parents or legal guardian

resides, the pupil's district of residence shall be considered to

be the educating district or educating intermediate district.

(8) "District superintendent" means the superintendent of a

district, the chief administrator of a public school academy, or

the chief administrator of a university school.

Sec. 6. (1) "Center program" means a program operated by a

district or intermediate district for special education pupils from

several districts in programs for pupils with autism spectrum

disorder, pupils with severe cognitive impairment, pupils with

moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

district or shall serve several districts with less than 50% of the

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

disabilities education act, 20 USC 1412, may be considered center

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult participants, in

the district for the immediately preceding school year, adjusted

for those pupils who have transferred into or out of the district

or high school, who leave high school with a diploma or other

credential of equal status.

(4) "Membership", except as otherwise provided in this act,

means for a district, public school academy, university school, or

intermediate district the sum of the product of .75 times the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the pupil membership

count day for the current school year, plus the product of .25

times the final audited count from the supplemental count day for

the immediately preceding school year. All pupil counts used in

this subsection are as determined by the department and calculated

by adding the number of pupils registered for attendance plus

pupils received by transfer and minus pupils lost as defined by

rules promulgated by the superintendent, and as corrected by a

subsequent department audit. For the purposes of this section and

section 6a, for a school of excellence that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551, and

is in compliance with section 553a of the revised school code, MCL

380.553a, a pupil's participation in the cyber school's educational

program is considered regular daily attendance. The amount of the

foundation allowance for a pupil in membership is determined under

section 20. In making the calculation of membership, all of the

following, as applicable, apply to determining the membership of a

district, public school academy, university school, or intermediate

district:

(a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan schools for the deaf and

blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a vocational education program

supported by a millage levied over an area larger than a single

district or in an area vocational-technical education program

established pursuant to section 690 of the revised school code, MCL

380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a university school shall be counted

in membership in the university school.

(h) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

(i) For a new district, university school, or public school

academy beginning its operation after December 31, 1994, membership

for the first 2 full or partial fiscal years of operation shall be

determined as follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) In a district, public school academy, university school,

or intermediate district operating an extended school year program

approved by the superintendent, a pupil enrolled, but not scheduled

to be in regular daily attendance on a pupil membership count day,

shall be counted.

(l) Pupils to be counted in membership shall be not less than 5

years of age on December 1 and less than 20 years of age on

September 1 of the school year except a special education pupil who

is enrolled and receiving instruction in a special education

program or service approved by the department and not having a high

school diploma who is less than 26 years of age as of September 1

of the current school year shall be counted in membership.

(m) An individual who has obtained a high school diploma shall

not be counted in membership. An individual who has obtained a

general educational development (G.E.D.) certificate shall not be

counted in membership. An individual participating in a job

training program funded under former section 107a or a jobs program

funded under former section 107b, administered by the Michigan

strategic fund or the department of energy, labor, and economic

growth, or participating in any successor of either of those 2

programs, shall not be counted in membership.

(n) If a pupil counted in membership in a public school

academy is also educated by a district or intermediate district as

part of a cooperative education program, the pupil shall be counted

in membership only in the public school academy unless a written

agreement signed by all parties designates the party or parties in

which the pupil shall be counted in membership, and the

instructional time scheduled for the pupil in the district or

intermediate district shall be included in the full-time equated

membership determination under subdivision (q). However, for pupils

receiving instruction in both a public school academy and in a

district or intermediate district but not as a part of a

cooperative education program, the following apply:

(i) If the public school academy provides instruction for at

least 1/2 of the class hours specified in subdivision (q), the

public school academy shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the public

school academy provides divided by the number of hours specified in

subdivision (q) for full-time equivalency, and the remainder of the

full-time membership for each of those pupils shall be allocated to

the district or intermediate district providing the remainder of

the hours of instruction.

(ii) If the public school academy provides instruction for less

than 1/2 of the class hours specified in subdivision (q), the

district or intermediate district providing the remainder of the

hours of instruction shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the

district or intermediate district provides divided by the number of

hours specified in subdivision (q) for full-time equivalency, and

the remainder of the full-time membership for each of those pupils

shall be allocated to the public school academy.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section 101(3). In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

considered to be less than a full-time equated pupil solely because

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

(r) Except as otherwise provided in this subdivision, full-

time equated memberships for pupils in kindergarten shall be

determined by dividing the number of class hours scheduled and

provided per year per kindergarten pupil by a number equal to 1/2

the number used for determining full-time equated memberships for

pupils in grades 1 to 12.

(s) For a district, university school, or public school

academy that has pupils enrolled in a grade level that was not

offered by the district, university school, or public school

academy in the immediately preceding school year, the number of

pupils enrolled in that grade level to be counted in membership is

the average of the number of those pupils enrolled and in regular

daily attendance on the pupil membership count day and the

supplemental count day of the current school year, as determined by

the department. Membership shall be calculated by adding the number

of pupils registered for attendance in that grade level on the

pupil membership count day plus pupils received by transfer and

minus pupils lost as defined by rules promulgated by the

superintendent, and as corrected by subsequent department audit,

plus the final audited count from the supplemental count day for

the current school year, and dividing that sum by 2.

(t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours specified in subdivision (q) for full-time equivalency. For

the purposes of this subdivision, a district shall be considered to

be providing appropriate instruction if all of the following are

met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies, except computers, that are comparable to those

otherwise provided in the district's alternative education program.

(iii) Course content is comparable to that in the district's

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) A pupil enrolled in an alternative or disciplinary

education program described in section 25 shall be counted in

membership in the district or public school academy that is

educating the pupil.

(w) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

within 45 days after the pupil membership count day, the department

shall adjust the district's pupil count for the pupil membership

count day to include the pupil in the count.

(x) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .75 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .25 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(y) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and, beginning in 2007-2008,

if the district does not receive funding under section 22d(2), the

district's membership shall be considered to be the membership

figure calculated under this subdivision. If a district educates

and counts in its membership pupils in grades 9 to 12 who reside in

a contiguous district that does not operate grades 9 to 12 and if 1

or both of the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

number of pupils per square mile for each of the districts for the

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

(ii) The district's actual membership for that fiscal year as

otherwise calculated under this subsection.

(z) If a public school academy that is not in its first or

second year of operation closes at the end of a school year and

does not reopen for the next school year, the department shall

adjust the membership count of the district in which a former pupil

of the public school academy enrolls and is in regular daily

attendance for the next school year to ensure that the district

receives the same amount of membership aid for the pupil as if the

pupil were counted in the district on the supplemental count day of

the preceding school year.

(aa) Full-time equated memberships for preprimary-aged special

education pupils who are not enrolled in kindergarten but are

enrolled in a classroom program under R 340.1754 of the Michigan

administrative code shall be determined by dividing the number of

class hours scheduled and provided per year by 450. Full-time

equated memberships for preprimary-aged special education pupils

who are not enrolled in kindergarten but are receiving nonclassroom

services under R 340.1755 of the Michigan administrative code shall

be determined by dividing the number of hours of service scheduled

and provided per year per pupil by 180.

(bb) A pupil of a district that begins its school year after

Labor day who is enrolled in an intermediate district program that

begins before Labor day shall not be considered to be less than a

full-time pupil solely due to instructional time scheduled but not

attended by the pupil before Labor day.

(cc) For the first year in which a pupil is counted in

membership on the pupil membership count day in a middle college

program described in section 64, the membership is the average of

the full-time equated membership on the pupil membership count day

and on the supplemental count day for the current school year, as

determined by the department. If a pupil was counted by the

operating district on the immediately preceding supplemental count

day, the pupil shall be excluded from the district's immediately

preceding supplemental count for purposes of determining the

district's membership.

(dd) A district that educates a pupil who attends a United

States Olympic education center may count the pupil in membership

regardless of whether or not the pupil is a resident of this state.

(5) "Public school academy" means a public school academy,

urban high school academy, school of excellence, or strict

discipline academy operating under the revised school code.

(6) "Pupil" means a person in membership in a public school. A

district must have the approval of the pupil's district of

residence to count the pupil in membership, except approval by the

pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

school.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90g, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(v) The pupil is enrolled in an alternative or disciplinary

education program described in section 25.

(i) A pupil enrolled in the Michigan virtual high school, for

the pupil's enrollment in the Michigan virtual high school.

(j) A pupil who is the child of a person who is employed by

the district. As used in this subdivision, "child" includes an

adopted child, stepchild, or legal ward.

(k) An expelled pupil who has been denied reinstatement by the

expelling district and is reinstated by another school board under

section 1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a.

(l) A pupil enrolled in a district other than the pupil's

district of residence in a program described in section 64 if the

pupil's district of residence and the enrolling district are both

constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil's

district of residence who attends a United States Olympic education

center.

However, if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

(7) "Pupil membership count day" of a district or intermediate

district means:

(a) Except as provided in subdivision (b), the fourth

Wednesday after Labor day each school year or, for a district or

building in which school is not in session on that Wednesday due to

conditions not within the control of school authorities, with the

approval of the superintendent, the immediately following day on

which school is in session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) Fourth Wednesday after Labor day.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

day and who does not attend each of those classes during the 10

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, shall not be counted as 1.0 full-time

equated membership. A pupil who is excused from attendance on the

pupil membership count day or supplemental count day and who fails

to attend each of the classes in which the pupil is enrolled within

30 calendar days after the pupil membership count day or

supplemental count day shall not be counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, intermediate district, or public school

academy before the pupil membership count day or supplemental count

day of a particular year but was expelled or suspended on the pupil

membership count day or supplemental count day shall only be

counted as 1.0 full-time equated membership if the pupil resumed

attendance in the district, intermediate district, or public school

academy within 45 days after the pupil membership count day or

supplemental count day of that particular year. Pupils not counted

as 1.0 full-time equated membership due to an absence from a class

shall be counted as a prorated membership for the classes the pupil

attended. For purposes of this subsection, "class" means a period

of time in 1 day when pupils and a certificated teacher or legally

qualified substitute teacher are together and instruction is taking

place.

(9) "Rule" means a rule promulgated pursuant to the

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

24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to

380.1852.

(11) "School district of the first class", "first class school

district", and "district of the first class", except in subsection

(6), mean a district that had at least 60,000 pupils in membership

for the immediately preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(13) "School of excellence" means a school of excellence

established under part 6e of the revised school code.

(14) ~~(13)~~ "State board" means the state board of education.

(15) ~~(14)~~ "Superintendent", unless the context clearly refers

to a district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(16) ~~(15)~~ "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(17) ~~(16)~~ "Tuition pupil" means a pupil of school age

attending school in a district other than the pupil's district of

residence for whom tuition may be charged. Tuition pupil does not

include a pupil who is a special education pupil or a pupil

described in subsection (6)(c) to (m). A pupil's district of

residence shall not require a high school tuition pupil, as

provided under section 111, to attend another school district after

the pupil has been assigned to a school district.

(18) ~~(17)~~ "State school aid fund" means the state school aid

fund established in section 11 of article IX of the state

constitution of 1963.

(19) ~~(18)~~ "Taxable value" means the taxable value of property

as determined under section 27a of the general property tax act,

1893 PA 206, MCL 211.27a.

(20) ~~(19)~~ "Textbook" means a book that is selected and

approved by the governing board of a district and that contains a

presentation of principles of a subject, or that is a literary work

relevant to the study of a subject required for the use of

classroom pupils, or another type of course material that forms the

basis of classroom instruction.

(21) ~~(20)~~ "Total state aid" or "total state school aid" means

the total combined amount of all funds due to a district,

intermediate district, or other entity under all of the provisions

of this act.

(22) ~~(21)~~ "University school" means an instructional program

operated by a public university under section 23 that meets the

requirements of section 23.

Sec. 9. Any provision of this act or of a rule promulgated

under this act is subject to waiver by the superintendent under

section 553a of the revised school code, MCL 380.553a, for a school

of excellence that is a cyber school, as defined in section 551 of

the revised school code, MCL 380.551.

Sec. 29. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $20,000,000.00 for 2009-2010 for

additional payments to eligible districts for declining enrollment

assistance as described in this section.

(2) A district is eligible for a payment under this section if

~~all~~ 1 or more of the following apply:

(a) The district meets all of the following:

(i) ~~(a)~~ The district's pupil membership for the current fiscal

year is less than the district's pupil membership for the

immediately preceding fiscal year and the district's pupil

membership for the immediately preceding fiscal year is less than

the district's pupil membership for the previously preceding fiscal

year as calculated under section 6 for that fiscal year.

(ii) ~~(b)~~ The district's average pupil membership is greater

than the district's pupil membership for the current fiscal year as

calculated under section 6.

(iii) ~~(c)~~ The district is not eligible to receive funding under

section 6(4)(y) or 22d(2).

(b) One or more schools of excellence are operating and

educating pupils within the district and the total number of pupils

who reside within the district and who are counted in membership in

any school of excellence exceeds 2% of the total membership of that

district.

(3) Payments to each eligible district shall be equal to the

sum of the following:

(a) For a district described in subsection (2)(a), the

difference between the district's average pupil membership and the

district's pupil membership as calculated under section 6 for the

current fiscal year multiplied by the district's foundation

allowance as calculated under section 20.

(b) For a district described in subsection (2)(b), subject to

subsection (5), the following amount, as applicable:

(i) For the first full fiscal year in which a school of

excellence located within the district is educating pupils, an

amount equal to the number of pupils who reside within the district

and who are counted in membership in any school of excellence times

the product of .8 times the amount of the per-pupil allocation for

the school of excellence, as calculated under section 20.

(ii) For the second full fiscal year in which a school of

excellence located within the district is educating pupils, an

amount equal to the number of pupils who reside within the district

and who are counted in membership in any school of excellence times

the product of .6 times the amount of the per-pupil allocation for

the school of excellence, as calculated under section 20.

(iii) For the third full fiscal year in which a school of

excellence located within the district is educating pupils, an

amount equal to the number of pupils who reside within the district

and who are counted in membership in any school of excellence times

the product of .4 times the amount of the per-pupil allocation for

the school of excellence, as calculated under section 20.

(4) If the total amount of the payments calculated under this

~~subsection~~ section exceeds the allocation for this section, the

payment to each district shall be prorated on an equal percentage

basis.

(5) A district is not eligible for a payment under subsection

(3)(b) for more than the first 3 fiscal years that a school of

excellence located within the district is in operation. However, if

a new school of excellence located in the district begins operating

and educating pupils within the district after this 3-year period,

the district is eligible to begin receiving a new payment under

subsection (3)(b) based on the number of pupils who reside within

the district and who are counted in membership in the new school of

excellence.

(6) It is the intent of the legislature that if the addition

of subsection (3)(b) to this section has the effect in future

fiscal years of reducing payments to a district under this section

below the level of those payments for 2009-2010, the legislature

will increase the amount of money allocated under this section to

make up for that reduction.

(7) ~~(4)~~ For the purposes of this section, "average pupil

membership" means the average of the district's membership for the

3-fiscal-year period ending with the current fiscal year,

calculated by adding the district's actual membership for each of

those 3 fiscal years, as otherwise calculated under section 6, and

dividing the sum of those 3 membership figures by 3.

Sec. 94a. (1) There is created within the office of the state

budget director in the department of management and budget the

center for educational performance and information. The center

shall do all of the following:

(a) Coordinate the collection of all data required by state

and federal law from all entities receiving funds under this act.

(b) Collect data in the most efficient manner possible in

order to reduce the administrative burden on reporting entities.

reliability of the data and the collection process.

(d) Develop state and model local data collection policies,

including, but not limited to, policies that ensure the privacy of

individual student data. State privacy policies shall ensure that

student social security numbers are not released to the public for

any purpose.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide reports to the citizens of this state to allow

them to assess allocation of resources and the return on their

investment in the education system of this state.

(g) Assist all entities receiving funds under this act in

complying with audits performed according to generally accepted

accounting procedures.

(h) To the extent funding is available, coordinate the

electronic exchange of student records using a unique

identification numbering system among entities receiving funds

under this act and postsecondary institutions for students

participating in public education programs from preschool through

postsecondary education.

(i) In cooperation with the department, create and implement a

teacher identifier system with the ability to match an individual

teacher to individual pupils the teacher has taught. The system

shall do all of the following:

(i) Make accessible annual state assessment records of

individual pupils.

(ii) Enable individual pupil academic achievement data,

including growth in academic achievement, to be correlated to each

teacher who has taught the pupil.

(iii) Enable school board members, teachers, and school

administrators to have access to the data so they can make informed

decisions in order to improve instruction and pupil achievement.

(iv) Allow access to individual pupil demographic data

including attendance rates, transience rates, any available data on

disciplinary action taken with respect to an individual pupil, and

any at-risk factors, as identified in section 31a, that apply to

the pupil, in order to give administrators a comprehensive profile

of the pupil and the challenges that the pupil faces in learning

and the teacher faces in instruction.

(j) ~~(i)~~ Other functions as assigned by the state budget

director.

(2) Each state department, officer, or agency that collects

information from districts or intermediate districts as required

under state or federal law shall make arrangements with the center,

and with the districts or intermediate districts, to have the

center collect the information and to provide it to the department,

officer, or agency as necessary. To the extent that it does not

cause financial hardship, the center shall arrange to collect the

information in a manner that allows electronic submission of the

information to the center. Each affected state department, officer,

or agency shall provide the center with any details necessary for

the center to collect information as provided under this

subsection. This subsection does not apply to information collected

by the department of treasury under the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the

school bond qualification, approval, and loan act, 2005 PA 92, MCL

388.1921 to 388.1939; or section 1351a of the revised school code,

MCL 380.1351a.

(3) The state budget director shall appoint a CEPI advisory

committee, consisting of the following members:

(a) One representative from the house fiscal agency.

(b) One representative from the senate fiscal agency.

director.

(d) One representative from the state education agency.

(e) One representative each from the department of energy,

labor, and economic growth and the department of treasury.

(f) Three representatives from intermediate school districts.

(g) One representative from each of the following educational

organizations:

(i) Michigan association of school boards.

(ii) Michigan association of school administrators.

(iii) Michigan school business officials.

(h) One representative representing private sector firms

responsible for auditing school records.

(i) Other representatives as the state budget director

determines are necessary.

(4) The CEPI advisory committee appointed under subsection (3)

shall provide advice to the director of the center regarding the

management of the center's data collection activities, including,

but not limited to:

(a) Determining what data is necessary to collect and maintain

in order to perform the center's functions in the most efficient

manner possible.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

reasonable accuracy of the data.

(f) Establishing and maintaining state and model local

policies related to data collection, including, but not limited to,

privacy policies related to individual student data.

(g) Ensuring the data is made available to state and local

policymakers and citizens of this state in the most useful format

possible.

(h) Other matters as determined by the state budget director

or the director of the center.

(5) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(6) From the general fund appropriation in section 11, there

is allocated an amount not to exceed $3,486,100.00 for 2009-2010 to

the department of management and budget to support the operations

of the center and the development and implementation of a

comprehensive longitudinal data collection management and reporting

system that includes student-level data. The center shall cooperate

with the state education agency to ensure that this state is in

compliance with federal law and is maximizing opportunities for

increased federal funding to improve education in this state. To

the extent that funding under this section allows, the center shall

collect data necessary to maximize federal funding under the

American recovery and reinvestment act of 2009, Public Law 111-5,

and other federal statutes, including data necessary to implement a

P-20 longitudinal data system. In addition, from the federal funds

appropriated in section 11 for 2009-2010, there is allocated the

amount necessary, estimated at $2,793,200.00, in order to fulfill

federal reporting requirements.

(7) From the federal funds allocated in subsection (6), there

is allocated for 2009-2010 an amount not to exceed $750,000.00

funded from the competitive grants of DED-OESE, title II,

educational technology funds for the purposes of this subsection.

Not later than November 30, 2008, the department shall award a

single grant to an eligible partnership that includes an

intermediate district with at least 1 high-need local school

district and the center.

(8) The center and the department shall work cooperatively to

develop a cost allocation plan that pays for center expenses from

the appropriate federal fund revenues.

(9) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year.

(10) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (6) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(11) As used in this section:

(a) "DED-OESE" means the United States department of education

office of elementary and secondary education.

(b) "High-need local school district" means a local

educational agency as defined in the enhancing education through

technology part of the no child left behind act of 2001, Public Law

107-110.

Sec. 101. (1) To be eligible to receive state aid under this

act, not later than the fifth Wednesday after the pupil membership

count day and not later than the fifth Wednesday after the

supplemental count day, each district superintendent shall submit

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

number of pupils enrolled and in regular daily attendance in the

district as of the pupil membership count day and as of the

supplemental count day, as applicable, for the current school year.

In addition, a district maintaining school during the entire year,

as provided under section 1561 of the revised school code, MCL

380.1561, shall submit to the center, in the form and manner

prescribed by the center, the number of pupils enrolled and in

regular daily attendance in the district for the current school

year pursuant to rules promulgated by the superintendent. Not later

than the seventh Wednesday after the pupil membership count day and

not later than the seventh Wednesday after the supplemental count

day, the district shall certify the data in a form and manner

prescribed by the center. If a district fails to submit and certify

the attendance data, as required under this subsection, the center

shall notify the department and state aid due to be distributed

under this act shall be withheld from the defaulting district

immediately, beginning with the next payment after the failure and

continuing with each payment until the district complies with this

subsection. If a district does not comply with this subsection by

the end of the fiscal year, the district forfeits the amount

withheld. A person who willfully falsifies a figure or statement in

the certified and sworn copy of enrollment shall be punished in the

manner prescribed by section 161.

(2) To be eligible to receive state aid under this act, not

later than the twenty-fourth Wednesday after the pupil membership

count day and not later than the twenty-fourth Wednesday after the

supplemental count day, an intermediate district shall submit to

the center, in a form and manner prescribed by the center, the

audited enrollment and attendance data for the pupils of its

constituent districts and of the intermediate district. If an

intermediate district fails to submit the audited data as required

under this subsection, state aid due to be distributed under this

act shall be withheld from the defaulting intermediate district

immediately, beginning with the next payment after the failure and

continuing with each payment until the intermediate district

complies with this subsection. If an intermediate district does not

comply with this subsection by the end of the fiscal year, the

intermediate district forfeits the amount withheld.

(3) ~~All~~ Except as otherwise provided in subsection (11), all

of the following apply to the provision of pupil instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours and, beginning in 2010-

2011, the required minimum number of days of pupil instruction. For

2010-2011 and for 2011-2012, the required minimum number of days of

pupil instruction is 165. Beginning in 2012-2013, the required

minimum number of days of pupil instruction is 170. However,

beginning in 2010-2011, a district shall not provide fewer days of

pupil instruction than the district provided for 2009-2010. Except

as otherwise provided in this act, a district failing to comply

with the required minimum hours and days of pupil instruction under

this subsection shall forfeit from its total state aid allocation

an amount determined by applying a ratio of the number of hours or

days the district was in noncompliance in relation to the required

minimum number of hours and days under this subsection. Not later

than August 1, the board of each district shall certify to the

department the number of hours and, beginning in 2010-2011, days of

pupil instruction in the previous school year. If the district did

not provide at least the required minimum number of hours and days

of pupil instruction under this subsection, the deduction of state

aid shall be made in the following fiscal year from the first

payment of state school aid. A district is not subject to

forfeiture of funds under this subsection for a fiscal year in

which a forfeiture was already imposed under subsection (6). Hours

or days lost because of strikes or teachers' conferences shall not

be counted as hours or days of pupil instruction. If a collective

bargaining agreement that provides a complete school calendar is in

effect for employees of a district as of the effective date of the

2009 amendatory act that amended this subsection, and if that

school calendar is not in compliance with this subsection, then

this subsection does not apply to that district until after the

expiration of that collective bargaining agreement.

(b) Except as otherwise provided in subdivision (c), a

district not having at least 75% of the district's membership in

attendance on any day of pupil instruction shall receive state aid

in that proportion of 1/180 that the actual percent of attendance

bears to the specified percentage.

operates a department-approved alternative education program and

that does not provide instruction for pupils in all of grades K to

12, the superintendent shall grant a waiver for a period of 3

school years from the requirements of subdivision (b) in order to

conduct a pilot study. The waiver shall indicate that an eligible

district is subject to the proration provisions of subdivision (b)

only if the district does not have at least 50% of the district’s

membership in attendance on any day of pupil instruction. In order

to be eligible for this waiver, a district must maintain records to

substantiate its compliance with the following requirements during

the pilot study:

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil’s individual education plan.

(d) The superintendent shall promulgate rules for the

implementation of this subsection.

(4) Except as otherwise provided in this subsection, the first

30 hours or 6 days for which pupil instruction is not provided

because of conditions not within the control of school authorities,

such as severe storms, fires, epidemics, utility power

unavailability, water or sewer failure, or health conditions as

defined by the city, county, or state health authorities, shall be

counted as hours and days of pupil instruction. With the approval

of the superintendent of public instruction, the department shall

count as hours and days of pupil instruction for a fiscal year not

more than 30 additional hours or 6 additional days for which pupil

instruction is not provided in a district after April 1 of the

applicable school year due to unusual and extenuating occurrences

resulting from conditions not within the control of school

authorities such as those conditions described in this subsection.

Subsequent such hours or days shall not be counted as hours or days

of pupil instruction.

(5) A district shall not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) Not later than April 15 of each fiscal year, the board of

each district shall certify to the department the planned number of

hours and days of pupil instruction in the district for the school

year ending in the fiscal year. In addition to any other penalty or

forfeiture under this section, if at any time the department

determines that 1 or more of the following has occurred in a

district, the district shall forfeit in the current fiscal year

beginning in the next payment to be calculated by the department a

proportion of the funds due to the district under this act that is

equal to the proportion below the required minimum number of hours

and days of pupil instruction under subsection (3), as specified in

the following:

(a) The district fails to operate its schools for at least the

required minimum number of hours and days of pupil instruction

under subsection (3) in a school year, including hours and days

counted under subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours and days of pupil instruction under subsection (3) in a

school year, including hours and days counted under subsection (4).

(7) In providing the minimum number of hours and days of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, shall be considered to be pupil instruction time for

the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a junior reserve officer training corps (JROTC) program shall be

considered to be pupil instruction time regardless of whether the

instructor is a certificated teacher if all of the following are

met:

(i) The instructor has met all of the requirements established

by the United States department of defense and the applicable

branch of the armed services for serving as an instructor in the

junior reserve officer training corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) ~~The~~ Except as otherwise provided in subsection (11), the

department shall apply the guidelines under subsection (7) in

calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent may waive for a district the minimum

number of hours and days of pupil instruction requirement of

subsection (3) for a department-approved alternative education

program or another innovative program approved by the department.

If a district applies for and receives a waiver under this

subsection and complies with the terms of the waiver, for the

fiscal year covered by the waiver the district is not subject to

forfeiture under this section for the specific program covered by

the waiver. If the district does not comply with the terms of the

waiver, the amount of the forfeiture shall be calculated based upon

a comparison of the number of hours and days of pupil instruction

actually provided to the minimum number of hours and days of pupil

instruction required under subsection (3).

(10) If at least 5 of the hours of professional development

are provided online by the Michigan virtual university under

section 98 or by another department-approved intermediate district

provider of online professional development, a district may count

up to 38 hours of qualifying professional development for teachers

as hours of pupil instruction. However, if a collective bargaining

agreement that provides more than 38 but not more than 51 hours of

professional development for teachers is in effect for employees of

a district as of October 1, 2006, then until the fiscal year that

begins after the expiration of that collective bargaining agreement

a district may count up to 51 hours of qualifying professional

development for teachers, including the 5 hours of online

professional development, as hours of pupil instruction. A district

that elects to use this exception shall notify the department of

its election. As used in this subsection, "qualifying professional

development" means professional development that is focused on 1 or

more of the following:

(a) Achieving or improving adequate yearly progress as defined

under the no child left behind act of 2001, Public Law 107-110.

(b) Achieving accreditation or improving a school's

accreditation status under section 1280 of the revised school code,

MCL 380.1280.

the no child left behind act of 2001, Public Law 107-110.

(d) Maintaining teacher certification.

(11) Subsections (3) and (8) do not apply to a school of

excellence that is a cyber school, as defined in section 551 of the

revised school code, MCL 380.551, and is in compliance with section

553a of the revised school code, MCL 380.553a.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 95th Legislature are

enacted into law:

(a) Senate Bill No. 638.

(b) Senate Bill No. 925.

(d) Senate Bill No. 981.

(e) Senate Bill No. 982.

(f) Senate Bill No._994.