April 2, 2009, Introduced by Reps. Melton and Johnson and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 5 and 1280 (MCL 380.5 and 380.1280), section 5
as amended by 2005 PA 61 and section 1280 as amended by 2006 PA
123, and by adding sections 1280c and 1320 and part 6d.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) "Local act school district" or "special act school
district" means a district governed by a special or local act or
chapter of a local act. "Local school district" and "local school
district board" as used in article 3 include a local act school
district and a local act school district board.
(2) "Membership" means the number of full-time equivalent
pupils in a public school as determined by the number of pupils
registered for attendance plus pupils received by transfer and
minus pupils lost as defined by rules promulgated by the state
board.
(3) "Michigan election law" means the Michigan election law,
1954 PA 116, MCL 168.1 to 168.992.
(4) "Nonpublic school" means a private, denominational, or
parochial school.
(5) "Objectives" means measurable pupil academic skills and
knowledge.
(6) "Public school" means a public elementary or secondary
educational entity or agency that is established under this act,
has as its primary mission the teaching and learning of academic
and vocational-technical skills and knowledge, and is operated by a
school district, local act school district, special act school
district, intermediate school district, public school academy
corporation, strict discipline academy corporation, urban high
school academy corporation, or by the department or state board.
Public school also includes a laboratory school or other elementary
or secondary school that is controlled and operated by a state
public university described in section 4, 5, or 6 of article VIII
of the state constitution of 1963.
(7) "Public school academy" means a public school academy
established under part 6a and, except as used in part 6a, also
includes an urban high school academy established under part 6c, a
turnaround school established under part 6d, and a strict
discipline academy established under sections 1311b to 1311l.
(8) "Pupil membership count day" of a school district means
that term as defined in section 6 of the state school aid act of
1979, MCL 388.1606.
(9) "Regular school election" or "regular election" means the
election held in a school district, local act school district, or
intermediate school district to elect a school board member in the
regular course of the terms of that office and held on the school
district's regular election date as determined under section 642 or
642a of the Michigan election law, MCL 168.642 and 168.642a.
(10) "Reorganized intermediate school district" means an
intermediate school district formed by consolidation or annexation
of 2 or more intermediate school districts under sections 701 and
702.
(11) "Rule" means a rule promulgated under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
PART 6D
TURNAROUND SCHOOLS
Sec. 531. (1) A turnaround school is a public school under
section 2 of article VIII of the state constitution of 1963, is a
school district for the purposes of section 11 of article IX of the
state constitution of 1963 and for the purposes of sections 1225
and 1351a, and is subject to the leadership and general supervision
of the state board over all public education under section 3 of
article VIII of the state constitution of 1963. A turnaround school
is a body corporate and is a governmental agency. The powers
granted to a turnaround school under this part constitute the
performance of essential public purposes and governmental functions
of this state.
(2) As used in this part:
(a) "Authorizing body" means any of the following:
(i) The governing board of a state public university that
issues a contract as provided in this part.
(ii) The board of a community college established under the
community college act of 1966, 1966 PA 331, MCL 389.1 to 389.195.
(iii) The intermediate board of an intermediate school district.
(iv) The board of a school district.
(b) "Certificated teacher" means an individual who holds a
valid teaching certificate issued by the superintendent of public
instruction under this act.
(c) "Contract" means the executive act taken by an authorizing
body that evidences the authorization of a turnaround school and
that establishes, subject to the constitutional powers of the state
board and applicable law, the written instrument executed by an
authorizing body conferring certain rights, franchises, privileges,
and obligations on a turnaround school, as provided by this part,
and confirming the status of a turnaround school as a public school
in this state.
(d) "Educational management organization" means an entity that
enters into an agreement with the governing board of a public
school to provide comprehensive educational, administrative,
management, or instructional services or staff to the public
school.
(e) "Entity" means that term as defined in part 6A.
(f) "Failing public school" means a school that is determined
by the department to be subject to the measures under section
1280(14).
(g) "Qualified entity" means an entity that is determined by
the superintendent of public instruction to meet all of the
following:
(i) Has been issued and is currently a party to a contract with
an authorizing body to organize and operate at least 1 public
school academy under part 6a.
(ii) For each public school academy that it operates, the
scores of the public school academy's pupils on Michigan
educational assessment program tests and, if the public school
academy is a high school, on the Michigan merit examination are on
average at least 10% higher than the scores of the pupils of the
school district in which the public school academy is located.
(h) "State public university" means a state university
described in section 4, 5, or 6 of article VIII of the state
constitution of 1963.
Sec. 532. (1) A turnaround school shall be organized and
administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. A turnaround school corporation shall be organized under
the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3192, except that a turnaround school corporation is not
required to comply with sections 170 to 177 of 1931 PA 327, MCL
450.170 to 450.177. To the extent disqualified under the state or
federal constitution, a turnaround school shall not be organized by
a church or other religious organization and shall not have any
organizational or contractual affiliation with or constitute a
church or other religious organization.
(2) An authorizing body may issue a contract for the
organization and operation of a turnaround school under this part.
However, an authorizing body that is the board of a school
district, intermediate school district, or community college shall
not issue a contract for a turnaround school to operate outside of
its geographic boundaries. Further, an authorizing body shall not
issue a contract without the approval of the superintendent of
public instruction. The superintendent of public instruction shall
not grant approval for more than 1 turnaround school contract for
each failing public school and shall not grant this approval more
than 2 years after the public school has been determined to be a
failing public school. In the order approving the issuance of the
contract, the superintendent of public instruction shall identify
the failing public school that corresponds to the approval of the
turnaround school. A turnaround school must be located within 4.9
miles of the failing public school that corresponds to the
turnaround school and within the same school district as that
failing public school is located.
(3) A contract issued under this part shall be issued for an
initial term of 5 years. If at the end of the 5-year period the
turnaround school is determined by the department to meet all of
the following, the authorizing body may renew the contract for
subsequent 5-year terms:
(a) At least 80% of the school's pupils graduate from high
school or are determined by the department to be on track to
graduate from high school, the school has at least 80% average
attendance, and, if the school is a high school, the school's
pupils have an average score of at least 18 on the college entrance
examination component of the Michigan merit examination.
(b) Is meeting the other educational goals set forth in the
contract.
(c) Is operating in substantial compliance with this part.
(4) To obtain a contract to organize and operate 1 or more
turnaround schools, an entity may apply to an authorizing body
described in subsection (2). The contract shall be issued to a
turnaround school corporation designated by the entity applying for
the contract. The application shall include at least all of the
following:
(a) Name of the entity applying for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 538, a list of the proposed members of the board of
directors of the turnaround school and a description of the
qualifications and method for appointment or election of members of
the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed turnaround school to which the
contract will be issued.
(ii) The purposes for the turnaround school corporation. This
language shall provide that the turnaround school is incorporated
pursuant to this part and that the turnaround school corporation is
a governmental entity and political subdivision of this state.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the turnaround school.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the turnaround school.
(ii) A copy of the educational goals of the turnaround school
and the curricula to be offered and methods of pupil assessment to
be used by the turnaround school. To the extent applicable, the
progress of the pupils in the turnaround school shall be assessed
using at least a Michigan education assessment program (MEAP) test
or the Michigan merit examination developed under section 1279g, as
applicable. The educational goals shall include that least 80% of
the school's pupils graduate from high school or are determined by
the department to be on track to graduate from high school, the
school has at least 80% average attendance, and, if the school is a
high school, the school's pupils have an average score of at least
18 on the college entrance examination component of the Michigan
merit examination.
(iii) The admission policy and criteria to be maintained by the
turnaround school. The admission policy and criteria shall comply
with section 534. This part of the application also shall include a
description of how the applicant will provide to the general public
adequate notice that a turnaround school is being created and
adequate information on the admission policy, criteria, and
process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled. The grade
range shall initially include at least the lowest grade level of
the grade levels offered by the failing public school that is
identified under subsection (2) as corresponding to the turnaround
school and shall add 1 or more additional grade levels each year to
ensure that at least all of the grade levels offered by that
failing school are offered by the turnaround school within 4 years
after beginning operations.
(f) Descriptions of staff responsibilities and of the
turnaround school's governance structure.
(g) A description of and address for the proposed building or
buildings in which the turnaround school will be located, and a
financial commitment by the entity applying for the contract to
construct or renovate the building or buildings that will be
occupied by the turnaround school that is issued the contract.
(5) If the state board finds that an authorizing body is not
engaging in appropriate continuing oversight of 1 or more
turnaround schools operating under a contract issued by the
authorizing body, the state board by unanimous vote may suspend the
power of the authorizing body to issue new contracts to organize
and operate turnaround schools. A contract issued by the
authorizing body during the suspension is void. A contract issued
by the authorizing body before the suspension is not affected by
the suspension.
(6) An authorizing body shall not charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a turnaround school in an amount that exceeds a
combined total of 3% of the total state school aid received by the
turnaround school in the school year in which the fees or expenses
are charged. All of the following apply to this fee:
(a) An authorizing body may use this fee only for the
following purposes:
(i) Considering applications and issuing or administering
contracts.
(ii) Compliance monitoring and oversight of turnaround schools.
(iii) Training for turnaround school applicants, administrators,
and boards of directors.
(iv) Technical assistance to turnaround schools.
(v) Academic support to turnaround schools or to pupils or
graduates of turnaround schools.
(vi) Evaluation of turnaround school performance.
(vii) Training of teachers, including supervision of teacher
interns.
(viii) Other purposes that assist the turnaround school or
traditional public schools in achieving improved academic
performance.
(b) An authorizing body may provide other services for a
turnaround school and charge a fee for those services, but shall
not require such an arrangement as a condition to issuing the
contract authorizing the turnaround school.
(7) A turnaround school shall be presumed to be legally
organized if it has exercised the franchises and privileges of a
turnaround school for at least 2 years.
Sec. 533. (1) An authorizing body is not required to issue a
contract to any entity. Turnaround school contracts shall be issued
on a competitive basis taking into consideration the resources
available for the proposed turnaround school, the population to be
served by the proposed turnaround school, and the educational goals
to be achieved by the proposed turnaround school. In evaluating if
an applicant is qualified, the authorizing body shall examine the
proposed performance standards, proposed academic program,
financial viability of the applicant, and the ability of the
proposed board of directors to meet the contract goals and
objectives. An authorizing body shall not issue a contract unless
the contract requires the turnaround school to enter into an
agreement for operation of the school by an established educational
management organization approved by the department.
(2) A contract issued to organize and administer a turnaround
school shall contain at least all of the following:
(a) The educational goals the turnaround school is to achieve
and the methods by which it will be held accountable. To the extent
applicable, the pupil performance of a turnaround school shall be
assessed using at least a Michigan education assessment program
(MEAP) test or the Michigan merit examination developed under
section 1279g, as applicable. The educational goals shall include
that at least 80% of the school's pupils graduate from high school
or are determined by the department to be on track to graduate from
high school, the school has at least 80% average attendance, and,
if the school is a high school, the school's pupils have an average
score of at least 18 on the college entrance examination component
of the Michigan merit examination.
(b) A description of the method to be used to monitor the
turnaround school's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract. An authorizing body may approve
amendment of the contract with respect to any provision contained
in the contract except for the location of the building or
buildings to be operated by the turnaround school.
(d) A certification, signed by an authorized member of the
turnaround school board of directors, that the turnaround school
will comply with the contract and all applicable law.
(e) Procedures for revoking the contract and grounds for
revoking the contract. The grounds shall include, but are not
limited to, the failure to meet the requirements for renewal of a
contract under section 532(3)(a) to (c) within 5 years.
(f) A description of and address for the proposed building or
buildings in which the turnaround school will be located.
(g) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by an
independent certified public accountant in accordance with
generally accepted governmental auditing principles.
(h) A requirement that the board of directors shall ensure
compliance with the requirements of 1968 PA 317, MCL 15.321 to
15.330.
(i) A requirement that the board of directors shall prohibit
specifically identified family relationships between members of the
board of directors, individuals who have an ownership interest in
or who are officers or employees of an educational management
company involved in the operation of the turnaround school, and
employees of the turnaround school. The contract shall identify the
specific prohibited relationships consistent with applicable law.
(j) A requirement that the board of directors of the
turnaround school shall make information concerning its operation
and management available to the public and to the authorizing body
in the same manner as is required by state law for school
districts.
(k) A requirement that the board of directors of the
turnaround school shall collect, maintain, and make available to
the public and the authorizing body, in accordance with applicable
law and the contract, at least all of the following information
concerning the operation and management of the turnaround school:
(i) A copy of the contract issued by the authorizing body for
the turnaround school.
(ii) A list of currently serving members of the board of
directors of the turnaround school, including name, address, and
term of office; copies of policies approved by the board of
directors; board meeting agendas and minutes; copy of the budget
approved by the board of directors and of any amendments to the
budget; and copies of bills paid for amounts of $10,000.00 or more
as they were submitted to the board of directors.
(iii) Quarterly financial reports submitted to the authorizing
body.
(iv) A current list of teachers working at the turnaround
school that includes their individual salaries; copies of the
teaching certificates or permits of current teaching staff; and
evidence of compliance with the criminal background and records
checks and unprofessional conduct check required under sections
1230, 1230a, and 1230b for all teachers and administrators working
at the turnaround school.
(v) Curriculum documents and materials given to the
authorizing body.
(vi) Proof of insurance as required by the contract.
(vii) Copies of facility leases or deeds, or both, and of any
equipment leases.
(viii) Copies of any management contracts or services contracts
approved by the board of directors.
(ix) All health and safety reports and certificates, including
those relating to fire safety, environmental matters, asbestos
inspection, boiler inspection, and food service.
(x) Any management letters issued as part of the annual
financial audit under subdivision (g).
(xi) Any other information specifically required under this
act.
(l) A requirement that the authorizing body must review and may
disapprove any agreement between the board of directors and an
educational management organization before the agreement is final
and valid. An authorizing body may disapprove an agreement
described in this subdivision only if the agreement is contrary to
the contract or applicable law.
(m) A requirement that the board of directors shall
demonstrate all of the following to the satisfaction of the
authorizing body with regard to its pupil admission process:
(i) That the turnaround school has made a reasonable effort to
advertise its enrollment openings in a newspaper of general
circulation in the intermediate school district in which the
turnaround school is located.
(ii) That the turnaround school has made the following
additional efforts to recruit pupils who are eligible for special
education programs and services to apply for admission:
(A) Reasonable efforts to advertise all enrollment openings to
organizations and media that regularly serve and advocate for
individuals with disabilities within the boundaries of the
intermediate school district in which the turnaround school is
located.
(B) Inclusion in all pupil recruitment materials of a
statement that appropriate special education services will be made
available to pupils attending the school as required by law.
(iii) That the open enrollment period for the turnaround school
is for a duration of at least 2 weeks and that the enrollment times
include some evening and weekend times.
(n) A requirement that the board of directors shall prohibit
any individual from being employed by the turnaround school in more
than 1 full-time position and simultaneously being compensated at a
full-time rate for each of those positions.
(o) A requirement that, if requested, the board of directors
shall report to the authorizing body the total compensation for
each individual working at the turnaround school.
(3) A turnaround school shall comply with all applicable law,
including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(e) 1978 PA 566, MCL 15.181 to 15.185.
(f) 1968 PA 317, MCL 15.321 to 15.330.
(g) The uniform budgeting and accounting act, 1968 PA 2, MCL
141.421 to 141.440a.
(h) The revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(i) The federal no child left behind act of 2001, Public Law
107-110.
(j) Sections 1134, 1135, 1146, 1153, 1263, 1267, 1274, and
1280.
(4) A turnaround school and its incorporators, board members,
officers, employees, and volunteers have governmental immunity as
provided in section 7 of 1964 PA 170, MCL 691.1407. An authorizing
body and its board members, officers, and employees are immune from
civil liability, both personally and professionally, for any acts
or omissions in authorizing or oversight of a turnaround school if
the authorizing body or the person acted or reasonably believed he
or she acted within the authorizing body's or the person's scope of
authority.
(5) A turnaround school is exempt from all taxation on its
earnings and property. Instruments of conveyance to or from a
turnaround school are exempt from all taxation, including taxes
imposed by 1966 PA 134, MCL 207.501 to 207.513. A turnaround school
may not levy ad valorem property taxes or any other tax for any
purpose.
(6) A turnaround school may acquire by purchase, gift, devise,
lease, sublease, installment purchase agreement, land contract,
option, or any other means, hold, and own in its own name buildings
and other property for school purposes, and interests therein, and
other real and personal property, including, but not limited to,
interests in property subject to mortgages, security interests, or
other liens, necessary or convenient to fulfill its purposes. For
the purposes of condemnation, a turnaround school may proceed under
the uniform condemnation procedures act, 1980 PA 87, MCL 213.51 to
213.75, excluding sections 6 to 9 of that act, MCL 213.56 to
213.59, or other applicable statutes, but only with the express,
written permission of the authorizing body in each instance of
condemnation and only after just compensation has been determined
and paid.
Sec. 533a. (1) An agreement, mortgage, loan, or other
instrument of indebtedness entered into by a turnaround school and
a third party does not constitute an obligation, either general,
special, or moral, of this state or an authorizing body. The full
faith and credit or the taxing power of this state or any agency of
this state, or the full faith and credit of an authorizing body,
may not be pledged for the payment of any turnaround school bond,
note, agreement, mortgage, loan, or other instrument of
indebtedness.
(2) This part does not impose any liability on this state or
on an authorizing body for any debt incurred by a turnaround
school.
Sec. 534. (1) A turnaround school may be located in all or
part of an existing public school building. A turnaround school
shall not operate at a site other than the single site requested
for the configuration of grades that will use the site, as
specified in the contract. A turnaround school shall not relocate
to a different location than the site or sites specified in the
contract. A turnaround school must be located within 4.9 miles of
the failing public school that is identified under section 532(2)
as corresponding to the turnaround school and within the same
school district as that failing public school is located.
(2) A turnaround school shall not charge tuition. Except as
otherwise provided in this section, a turnaround school shall not
discriminate in its pupil admissions policies or practices on the
basis of intellectual or athletic ability, measures of achievement
or aptitude, status as a handicapped person, or any other basis
that would be illegal if used by a school district. However, a
turnaround school may limit admission to pupils who are within a
particular range of age or grade level or on any other basis that
would be legal if used by a school district and may give enrollment
priority as provided in subsection (4).
(3) Except for a foreign exchange student who is not a United
States citizen, a turnaround school shall not enroll a pupil who is
not a resident of this state. Enrollment in a turnaround school
shall be open to all pupils who reside in this state who meet the
admission policy. Subject to subsection (4), if there are more
applications to enroll in the turnaround school than there are
spaces available, pupils shall be selected to attend using a random
selection process. A turnaround school shall allow any pupil who
was enrolled in the turnaround school in the immediately preceding
school year to enroll in the turnaround school in the appropriate
grade unless the appropriate grade is not offered at that
turnaround school.
(4) A turnaround school shall give enrollment priority to a
child who was previously enrolled in the failing public school that
is identified under section 532(2) as corresponding to the
turnaround school. A turnaround school also may give enrollment
priority to 1 or more of the following:
(a) A sibling of a pupil enrolled in the turnaround school.
(b) A child of a person who is employed by or at the
turnaround school or who is on the board of directors of the
turnaround school. As used in this subdivision, "child" includes an
adopted child or a legal ward.
(5) A turnaround school shall initially include at least the
lowest grade level of the grade levels offered by the failing
public school that is identified under section 532(2) as
corresponding to the turnaround school and shall add 1 or more
additional grade levels each year to ensure that at least all of
the grade levels offered by that failing school are offered by the
turnaround school within 4 years after beginning operations. A
turnaround school also may include other grades or any
configuration of those grades, including kindergarten and early
childhood education, as specified in its contract. If specified in
its contract, a turnaround school may also operate an adult basic
education program, adult high school completion program, or general
education development testing preparation program.
Sec. 535. In addition to other powers set forth in this part,
a turnaround school may take action to carry out the purposes for
which it was incorporated under this part, including, but not
limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to section 533a, to acquire, hold, and own in its
own name real and personal property, or interests in real or
personal property, for educational purposes by purchase, gift,
grant, devise, bequest, lease, sublease, installment purchase
agreement, land contract, option, or condemnation, and subject to
mortgages, security interests, or other liens; and to sell or
convey the property as the interests of the turnaround school
require.
(c) To receive, disburse, and pledge funds for lawful
purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the turnaround school.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the turnaround school in the furtherance of its public purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by a turnaround school are
not subject to section 1351a(4) or section 1351(2) to (4). Bonds
issued under this section shall be full faith and credit
obligations of the turnaround school, pledging the general funds or
any other money available for such a purpose. Bonds issued under
this section are subject to the revised municipal finance act, 2001
PA 34, MCL 141.2101 to 141.2821.
Sec. 536. (1) Except as otherwise provided by law, a
turnaround school shall use certificated teachers according to
state board rule.
(2) A turnaround school may use noncertificated individuals to
teach as follows:
(a) If the authorizing body is a state public university, the
turnaround school may use as a classroom teacher in any grade a
faculty member who is employed full-time by the state public
university that is the authorizing body and who has been granted
institutional tenure, or has been designated as being on tenure
track, by that state public university.
(b) In any other situation in which a school district is
permitted under this act to use noncertificated teachers.
(3) A turnaround school may develop and implement new teaching
techniques or methods or significant revisions to known teaching
techniques or methods and shall report those to the authorizing
body and state board to be made available to the public. A
turnaround school may use any instructional technique or delivery
method that may be used by a school district.
Sec. 537. A turnaround school, with the approval of the
authorizing body, may employ or contract with personnel, or enter
into a contract with another party to furnish teachers or other
personnel, as necessary for the operation of the turnaround school,
prescribe their duties, and fix their compensation.
Sec. 537a. If the board of directors of a turnaround school
provides medical, optical, or dental benefits to employees and
their dependents, the board of directors shall provide those
benefits in accordance with the public employees health benefit
act, 2007 PA 106, MCL 124.71 to 124.85, and shall comply with that
act.
Sec. 538. (1) An authorizing body that issues a contract for a
turnaround school under this part shall do all of the following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Adopt a resolution establishing the method of selection,
length of term, and number of members of the board of directors of
each turnaround school that it authorizes.
(d) Oversee the operations of each turnaround school operating
under a contract issued by the authorizing body. The oversight
shall be sufficient to ensure that the turnaround school is in
compliance with the terms of the contract and with applicable law.
An authorizing body may enter into an agreement with 1 or more
other authorizing bodies to oversee a turnaround school operating
under a contract issued by the authorizing body.
(e) Develop and implement a process for holding a turnaround
school board of directors accountable for meeting applicable
academic performance standards set forth in the contract and for
implementing corrective action for a turnaround school that does
not meet those standards.
(f) Take necessary measures to ensure that a turnaround school
board of directors operates independently of any educational
management company involved in the operations of the turnaround
school.
(g) Oversee and ensure that the pupil admission process used
by the turnaround school is operated in a fair and open manner and
is in compliance with the contract and this part.
(h) Ensure that the board of directors of the turnaround
school maintains and releases information as necessary to comply
with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for a turnaround school is the fiscal
agent for the turnaround school. A state school aid payment for a
turnaround school shall be paid to the authorizing body that is the
fiscal agent for that turnaround school, which shall then forward
the payment to the turnaround school. Within 30 days after a
contract is submitted to the department by an authorizing body
under subsection (1), the department shall issue a district code to
the turnaround school for which the contract was issued. If the
department does not issue a district code within 30 days after a
contract is filed, the state treasurer shall assign a temporary
district code in order for the turnaround school to receive funding
under the state school aid act of 1979.
(4) A contract issued under this part may be revoked by the
authorizing body that issued the contract if the authorizing body
determines that 1 or more of the following have occurred:
(a) Failure of the turnaround school to abide by and meet the
educational goals set forth in the contract.
(b) Failure of the turnaround school to comply with all
applicable law.
(c) Failure of the turnaround school to meet generally
accepted public sector accounting principles.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(5) The decision of an authorizing body to issue, reissue, or
reconstitute a contract under this part, or to revoke a contract
under this section, is solely within the discretion of the
authorizing body, is final, and is not subject to review by a court
or any state agency. An authorizing body that does not issue,
reissue, or reconstitute a contract under this part, or that
revokes a contract under this section, is not liable for that
action to the turnaround school, the turnaround school corporation,
a pupil of the turnaround school, the parent or guardian of a pupil
of the turnaround school, or any other person.
(6) Before an authorizing body revokes a contract, the
authorizing body shall consider and take corrective measures to
avoid revocation. An authorizing body shall reconstitute the
turnaround school in a final attempt to improve student educational
performance or to avoid interruption of the educational process. An
authorizing body shall include a reconstituting provision in the
contract that identifies these corrective measures, including, but
not limited to, removing 1 or more members of the board of
directors, withdrawing approval to contract under section 535 for
an agreement described in section 1320, or appointing a new board
of directors or a trustee to take over operation of the turnaround
school.
(7) If an authorizing body revokes a contract, the authorizing
body shall work with a school district or another public school, or
with a combination of these entities, to ensure a smooth transition
for the affected pupils. If the revocation occurs during the school
year, the authorizing body, as the fiscal agent for the turnaround
school under this part, shall return any school aid funds received
by the authorizing body that are attributable to the affected
pupils to the state treasurer for deposit into the state school aid
fund. The state treasurer shall distribute funds to the public
school in which the pupils enroll after the revocation pursuant to
a methodology established by the department and the center for
educational performance and information.
(8) If an authorizing body revokes a contract issued under
this part, the authorizing body may issue a new contract within the
1-year period following the revocation without the new contract
counting toward the maximum number of contracts that may be issued
under this part.
(9) Not more than 10 days after a turnaround school's contract
terminates or is revoked, the authorizing body shall notify the
superintendent of public instruction in writing of the name of the
turnaround school whose contract has terminated or been revoked and
the date of contract termination or revocation.
(10) If a turnaround school's contract terminates or is
revoked, title to all real and personal property, interest in real
or personal property, and other assets owned by the turnaround
school shall revert to the state. This property shall be
distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of a turnaround school shall hold a public
meeting to adopt a plan of distribution of assets and to approve
the dissolution of the turnaround school corporation, all in
accordance with chapter 8 of the nonprofit corporation act, 1982 PA
162, MCL 450.2801 to 450.2864.
(b) The turnaround school shall file a certificate of
dissolution with the department of energy, labor, and economic
growth within 10 business days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the turnaround school board of
directors shall provide a copy of the board of directors' plan of
distribution of assets to the state treasurer for approval. Within
30 days, the state treasurer, or his or her designee, shall review
and approve the board of directors' plan of distribution of assets.
If the proposed plan of distribution of assets is not approved
within 30 days, the state treasurer, or his or her designee, shall
provide the board of directors with an acceptable plan of
distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the turnaround school's winding up of the dissolved corporation in
accordance with the plan of distribution of assets approved or
provided under subdivision (c).
(e) As part of the plan of distribution of assets, the
turnaround school board of directors shall designate the director
of the department of management and budget, or his or her designee,
to dispose of all real property of the turnaround school
corporation in accordance with the directives developed for
disposition of surplus land and facilities under section 251 of the
management and budget act, 1984 PA 431, MCL 18.1251.
(f) If the board of directors of a turnaround school fails to
take any necessary action under this section, the state treasurer,
or his or her designee, may suspend the turnaround school board of
directors and appoint a trustee to carry out the board's plan of
distribution of assets. Upon appointment, the trustee shall have
all the rights, powers, and privileges under law that the
turnaround school board of directors had before being suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any turnaround school debt secured by the property or interest in
property, whether real or personal, the turnaround school board of
directors, or a trustee appointed under this section, shall forward
any remaining money to the state treasurer. Following receipt, the
state treasurer, or his or her designee, shall deposit this
remaining money in the state school aid fund.
Sec. 539. An authorizing body and turnaround school may
include provisions in the contract that permit the entity that
applied for the contract to do any of the following:
(a) Participate in the recruiting, interviewing, and
nominating process for turnaround school board members.
(b) Conduct an independent educational review, on a periodic
basis, to determine whether the turnaround school is successful in
implementing the educational goals set forth in the contract.
(c) Serve as contract administrator between the turnaround
school board of directors and any educational management company
contracted to operate the turnaround school.
(d) Make recommendations to the authorizing body and
turnaround school on how to improve the turnaround school's
operation.
Sec. 1280. (1) The board of a school district that does not
want to be subject to the measures described in this section shall
ensure that each public school within the school district is
accredited.
(2) As used in subsection (1), and subject to subsection (6),
"accredited" means certified by the superintendent of public
instruction as having met or exceeded standards established under
this section for 6 areas of school operation: administration and
school organization, curricula, staff, school plant and facilities,
school and community relations, and school improvement plans and
student performance. The building-level evaluation used in the
accreditation process shall include, but is not limited to, school
data collection, self-study, visitation and validation,
determination of performance data to be used, and the development
of a school improvement plan.
(3) The department shall develop and distribute to all public
schools proposed accreditation standards. Upon distribution of the
proposed standards, the department shall hold statewide public
hearings for the purpose of receiving testimony concerning the
standards. After a review of the testimony, the department shall
revise and submit the proposed standards to the superintendent of
public instruction. After a review and revision, if appropriate, of
the proposed standards, the superintendent of public instruction
shall submit the proposed standards to the senate and house
committees that have the responsibility for education legislation.
Upon approval by these committees, the department shall distribute
to all public schools the standards to be applied to each school
for accreditation purposes. The superintendent of public
instruction shall review and update the accreditation standards
annually using the process prescribed under this subsection.
(4) The superintendent of public instruction shall develop and
distribute to all public schools standards for determining that a
school is eligible for summary accreditation under subsection (6).
The standards shall be developed, reviewed, approved, and
distributed using the same process as prescribed in subsection (3)
for accreditation standards, and shall be finally distributed and
implemented not later than December 31, 1994.
(5) The standards for accreditation or summary accreditation
under this section shall include as criteria pupil performance on
Michigan education assessment program (MEAP) tests and on the
Michigan merit examination under section 1279g, and,
until the
Michigan merit examination has been fully implemented, the
percentage
of pupils achieving state endorsement under section
1279,
but shall not be based solely on
pupil performance on MEAP
tests
or the Michigan merit examination. or on the percentage of
pupils
achieving state endorsement under section 1279. The
standards shall also include as criteria multiple year change in
pupil performance on MEAP tests and the Michigan merit examination.
and,
until after the Michigan merit examination is fully
implemented,
multiple year change in the percentage of pupils
achieving
state endorsement under section 1279. If
it is necessary
for the superintendent of public instruction to revise
accreditation or summary accreditation standards established under
subsection (3) or (4) to comply with this subsection, the revised
standards shall be developed, reviewed, approved, and distributed
using the same process as prescribed in subsection (3).
(6) If the superintendent of public instruction determines
that a public school has met the standards established under
subsection (4) or (5) for summary accreditation, the school is
considered to be accredited without the necessity for a full
building-level evaluation under subsection (2).
(7) If the superintendent of public instruction determines
that a school has not met the standards established under
subsection (4) or (5) for summary accreditation but that the school
is making progress toward meeting those standards, or if, based on
a full building-level evaluation under subsection (2), the
superintendent of public instruction determines that a school has
not met the standards for accreditation but is making progress
toward meeting those standards, the school is in interim status and
is subject to a full building-level evaluation as provided in this
section.
(8) If a school has not met the standards established under
subsection (4) or (5) for summary accreditation and is not eligible
for interim status under subsection (7), the school is unaccredited
and subject to the measures provided in this section.
(9)
Beginning with the 2002-2003 school year, if If at
least
5% of a public school's answer sheets from the administration of
the Michigan educational assessment program (MEAP) tests are lost
by the department or by a state contractor and if the public school
can verify that the answer sheets were collected from pupils and
forwarded to the department or the contractor, the department shall
not assign an accreditation score or school report card grade to
the public school for that subject area for the corresponding year
for the purposes of determining state accreditation under this
section. The department shall not assign an accreditation score or
school report card grade to the public school for that subject area
until the results of all tests for the next year are available.
(10) Subsection (9) does not preclude the department from
determining whether a public school or a school district has
achieved adequate yearly progress for the school year in which the
answer sheets were lost for the purposes of the no child left
behind act of 2001, Public Law 107-110. However, the department
shall ensure that a public school or the school district is not
penalized when determining adequate yearly progress status due to
the fact that the public school's MEAP answer sheets were lost by
the department or by a state contractor, but shall not require a
public school or school district to retest pupils or produce scores
from another test for this purpose.
(11) The superintendent of public instruction shall annually
review and evaluate for accreditation purposes the performance of
each school that is unaccredited and as many of the schools that
are in interim status as permitted by the department's resources.
(12) The superintendent of public instruction shall, and the
intermediate school district to which a school district is
constituent, a consortium of intermediate school districts, or any
combination thereof may, provide technical assistance, as
appropriate, to a school that is unaccredited or that is in interim
status upon request of the board of the school district in which
the school is located. If requests to the superintendent of public
instruction for technical assistance exceed the capacity, priority
shall be given to unaccredited schools.
(13)
A If the department
determines that a school that has
been
unaccredited for 3 4 consecutive years is subject to or has
failed to achieve the federal pupil performance standard for 4 or
more consecutive years and that the percentage of all pupils
enrolled in the school who scored at least "proficient" on the most
recent Michigan education assessment program assessments or
Michigan merit examination, as applicable, for which results are
available was less than 35% in both mathematics and English
language arts, then the superintendent of public instruction shall
issue an order placing the public school under the control and
supervision of the state school reform/redesign officer. Within 30
days after this order, the state school reform/redesign officer
shall appoint a review team to conduct an evaluation of the public
school. Within 30 days after being appointed, the review team shall
submit a report to the state school reform/redesign officer that
identifies the reasons for the public school's failures and
contains recommendations on the measures that the state school
reform/redesign officer should take under this section with regard
to the public school. Upon request, the state school
reform/redesign officer may grant 1 sixty-day extension of this
time limit. The board of a school district or board of directors of
a public school academy shall cooperate fully with a review team
appointed under this subsection.
(14) After receiving the report of the review team under
subsection (13), the state school reform/redesign officer may issue
an order imposing 1 or more of the following measures, as
determined
by the superintendent of public instruction state school
reform/redesign officer:
(a)
The superintendent of public instruction or his or her
designee state school reform/redesign officer shall appoint at the
expense of the affected school district an administrator of the
school until the school becomes accredited.
(b) A parent, legal guardian, or person in loco parentis of a
child who attends the school may send his or her child to any
accredited
public school with an appropriate
grade level within the
school district that is either accredited or has achieved the
federal pupil performance standard, as determined by the
department, for the most recent year for which a determination has
been made. If the school receives federal funds under title I of
the elementary and secondary education act of 1965, 20 USC 6301 to
6578, chapter 1 of title I of the Hawkins-Stafford elementary and
secondary school improvement amendments of 1988, Public Law 100-
297, then the board or board of directors that operates the school
shall provide transportation for a pupil who exercises choice under
this subdivision.
(c) The board or board of directors that operates the school,
with
the approval of the superintendent of public instruction state
school
reform/redesign officer, shall align itself
the school with
an existing research-based school improvement model, contract with
an established educational management organization for operation of
the school by the educational management organization, or establish
an affiliation for providing assistance to the school with a
college or university located in this state.
(d) The board or board of directors that operates the school
shall hire a new principal using a performance contract to
administer the school.
(e) The state school reform/redesign officer shall enter into
a performance contract with an established educational management
organization for operation of the school by the educational
management organization.
(f) The state school reform/redesign officer shall designate
the school as a failing school to be placed under the oversight of
the state school reform/redesign officer and operated under section
1280c.
(g)
(d) The school shall be closed.
(15) At least annually, the department shall publish a watch
list of schools that are in danger of meeting the criteria under
subsection (13) and shall notify the board or board of directors
that operates a school on this list. The department shall include a
school on this watch list if the department determines that a
school has failed to achieve the federal pupil performance standard
for 3 or more consecutive years and that the percentage of all
pupils enrolled in the school who scored at least "proficient" on
the most recent Michigan education assessment program assessments
or Michigan merit examination, as applicable, for which results are
available was less than 40% in both mathematics and English
language arts, and may include other schools if the department
determines that there are other reasons why they are in danger of
meeting the criteria under subsection (13).
(16) (14)
The superintendent of public
instruction shall
evaluate the school accreditation program and the status of schools
under this section and shall submit an annual report based upon the
evaluation to the senate and house committees that have the
responsibility for education legislation. The report shall address
the reasons each unaccredited school is not accredited and shall
recommend legislative action that will result in the accreditation
of all public schools in this state.
(17) (15)
Beginning with the 2008-2009 school
year, a high
school shall not be accredited by the department unless the
department determines that the high school is providing or has
otherwise ensured that all pupils have access to all of the
elements of the curriculum required under sections 1278a and 1278b.
If it is necessary for the superintendent of public instruction to
revise accreditation or summary accreditation standards established
under subsection (3) or (4) to comply with the changes made to this
section by the amendatory act that added this subsection, the
revised standards shall be developed, reviewed, approved, and
distributed using the same process as prescribed in subsection (3).
(18) As used in this section:
(a) "Achieved the federal pupil performance standard" means
that the department has determined that the school has achieved
adequate yearly progress under the no child left behind act of
2001, Public Law 107-110, or has met a successor federal standard
that the superintendent of public instruction has identified as
being a standard established by the federal government that is
based on pupil performance and is required to be met in order to
receive full federal funding.
(b) "Failed to achieve the federal pupil performance standard"
means that the department has determined that the school has failed
to achieve adequate yearly progress under the no child left behind
act of 2001, Public Law 107-110, or has failed to meet a successor
federal standard that the superintendent of public instruction has
identified as being a standard established by the federal
government that is based on pupil performance and is required to be
met in order to receive full federal funding.
Sec. 1280c. (1) The superintendent of public instruction shall
hire a state school reform/redesign officer to carry out the
functions under this section and section 1280(13) and (14). The
state school reform/redesign officer shall be chosen solely on the
basis of his or her competence and experience in educational reform
and redesign.
(2) If a public school is determined by the department to meet
the criteria under section 1280(13) and is designated by the state
school reform/redesign officer as a failing public school under
section 1280(14)(f), then all of the following apply to the public
school:
(a) The state school reform/redesign officer shall do 1 of the
following, at his or her option:
(i) The state school reform/redesign officer shall enter into a
memorandum of understanding described in subsection (3) with the
board or board of directors that operates the school.
(ii) The state school reform/redesign officer shall assume
autonomous control and oversight of the public school through a
performance contract with a qualified entity to operate the school
as described in subsections (4) and (5).
(3) If the state school reform/redesign officer enters into a
memorandum of understanding with the board or board of directors
that operates the school, the memorandum of understanding shall
provide for all of the following:
(a) General oversight and supervision of the public school by
the state school reform/redesign officer.
(b) Continued day-to-day operation of the public school by the
board or board of directors, but only after modification of school
district or public school academy policies and renegotiation of
applicable collective bargaining agreements to provide for any of
the following that are determined by the state school
reform/redesign officer to be necessary to achieve the educational
goals established by the state school reform/redesign officer:
(i) That the principal or other school leader designated by the
state school reform/redesign officer may remove a staff member from
a job assignment at the school and direct that he or she be
assigned elsewhere; may require an employee who works at the school
at the time it is designated as a failing school by the state
school reform/redesign officer to reapply and be rehired for
assignment at the school; and may hire and assign employees to work
at the school. However, this subparagraph applies only to
assignment at that school and does not allow a staff member to be
terminated from his or her employment with the school district or
public school academy that owns the school, and this subparagraph
does not allow unilateral changes in pay scales or benefits.
(ii) That any contractual or other seniority system that would
otherwise be applicable shall not apply at the school.
(iii) That any contractual or other work rules the state school
reform/redesign officer determines to be impediments to achieving
satisfactory pupil performance shall not apply at the school.
(iv) That the state school reform/redesign officer shall direct
the expenditure of all state school aid attributable to pupils at
the school and the principal or other school leader designated by
the state school reform/redesign officer shall have full autonomy
and control over curriculum and discretionary spending at the
school.
(4) If the state school reform/redesign officer decides to
assume autonomous control and oversight of the public school
through a performance contract with a qualified entity to operate
the school, the state school reform/redesign officer shall publish
a request for proposals for qualified entities, as described in
subsection (6), to enter into a performance contract with the state
school reform/redesign officer to operate the school. The state
school reform/redesign officer shall select a qualified entity and
enter into a contract with the qualified entity to operate the
school as a redesigned public school. A contract shall contain at
least all of the following:
(a) The educational goals the redesigned public school is to
achieve and the methods by which it will be held accountable. To
the extent applicable, the pupil performance of a redesigned public
school shall be assessed using at least a Michigan education
assessment program (MEAP) test or the Michigan merit examination,
as applicable. The educational goals shall include that at least
80% of the school's pupils graduate from high school or are
determined by the department to be on track to graduate from high
school, the school has at least 80% average attendance, and, if the
school is a high school, the school's pupils have an average score
of at least 18 on the college entrance examination component of the
Michigan merit examination.
(b) A description of the method to be used to monitor the
redesigned public school's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) Procedures for revoking the contract and grounds for
revoking the contract. The grounds shall include, but are not
limited to, the failure to meet the educational goals of the
redesigned public school.
(e) A provision that requires the qualified entity to provide
to the state school reform/redesign officer the same information
that an educational management company is required to provide to a
governing board under section 1320(2).
(5) All of the following apply to operation of a redesigned
public school by a qualified entity pursuant to a performance
contract under subsection (4):
(a) The qualified entity operating the school or a school
leader designated by the qualified entity may remove a staff member
from a job assignment at the school and direct that he or she be
assigned elsewhere. However, this subdivision applies only to
assignment at that school and does not allow a staff member to be
terminated from his or her employment with the school district or
public school academy that owns the school.
(b) The principal or other school leader designated by the
qualified entity may hire and assign employees to work at the
school. An employee who works at the school at the time it is
designated as a failing school by the state school reform/redesign
officer must reapply and be rehired for assignment at the school.
However, this subdivision applies only to assignment at that school
and does not allow a staff member to be terminated from his or her
employment with the school district or public school academy that
owns the school.
(c) With the approval of the state school reform/redesign
officer, contractual or other work rules that that would otherwise
be applicable shall not apply at the school. This subdivision does
not allow unilateral changes in pay scales or benefits.
(d) With the approval of the state school reform/redesign
officer, any contractual or other seniority system that would
otherwise be applicable shall not apply at the school.
(e) The principal or other school leader designated by the
qualified entity shall have full autonomy and control over
curriculum and discretionary spending at the school.
(6) The state school reform/redesign officer shall compile and
maintain a list of qualified entities that may apply for and be a
party to a performance contract under subsection (4). If the state
school reform/redesign officer determines that an entity meets and
is continuing to meet all of the following, the state school
reform/redesign officer shall place and maintain the entity on the
list of qualified entities:
(a) Has been issued and is currently a party to a contract
with an authorizing body to organize and operate at least 1 public
school academy under part 6a.
(b) For each public school academy that it operates, the
scores of the public school academy's pupils on Michigan
educational assessment program tests and, if the public school
academy is a high school, on the Michigan merit examination are on
average at least 10% higher than the scores of the pupils of the
school district in which the public school academy is located.
Sec. 1320. (1) Beginning with contracts described in this
section that are entered into after the effective date of this
section, if the governing board of a public school enters into a
contract with an educational management company to carry out the
operations of a public school under this act, the governing board
shall ensure all of the following:
(a) That the governing board has conducted sufficient due
diligence to conclude that the educational management company has
sufficient educational expertise and management experience to
provide the agreed services.
(b) That the governing board will obtain independent legal
counsel in all negotiations with the educational management
company.
(c) If the governing board is the board of directors of a
public school academy, that, pursuant to the contract between the
board of directors and the educational management company or
educational management organization, the educational management
company will provide to the board of directors all financial and
other information required to comply with the requirements
concerning reporting that are contained in the contract between the
board of directors and its authorizing body under section 503 or
533, as applicable.
(2) Beginning with contracts described in this section that
are entered into after the effective date of this section, if the
governing board of a public school enters into a contract with an
educational management company to carry out the operations of a
public school under this act, the contract between the governing
board and the educational management company shall contain at least
all of the following provisions:
(a) A provision requiring the educational management company
to provide to the governing board information regarding any
teachers, administrators, and support staff employed by the
educational management company and assigned to work at the public
school, including at least all of the following personal
information:
(i) Name.
(ii) Education, including highest degree attained.
(iii) Salary.
(iv) Copy of teaching certificate or other required permit or
credential, if required for the position.
(v) Description of relevant experience.
(vi) Employment record.
(b) A provision requiring the educational management company
to provide to the governing board information regarding the
business operations of the public school, including at least all of
the following:
(i) Financial records and information concerning the operation
of the school, including, but not limited to, budgets and detailed
records of funds received from this state and other entities,
expenditure of those funds, investment of those funds, carryover,
and contractual arrangements or agreements entered into by the
educational management company as an agent of the governing board.
(ii) Financial records and information concerning leases to
which the governing board is a party, including, but not limited
to, leases for equipment, physical facility space, or institutional
and educational materials.
(iii) Financial records and information concerning mortgages and
loans to which the governing board is a party.
(c) If the governing board is the board of directors of a
public school academy, a provision requiring the educational
management company to make information available to the board of
directors concerning the operation and management of the public
school academy, including at least all of the information necessary
to comply with the requirements concerning reporting that are
contained in the contract between the board of directors and its
authorizing body under section 503 or 533, as applicable.
(3) This section does not apply to a contract to furnish
substitute teachers entered into under section 1236a.
(4) As used in this section:
(a) "Educational management company" means an entity that
enters into an agreement with the governing board of a public
school to provide comprehensive educational, administrative,
management, or instructional services or staff to the public
school. Educational management company includes an educational
management organization as that term is defined and used in part
6d.
(b) "Entity" means a partnership, nonprofit or business
corporation, labor organization, or any other association,
corporation, trust, or other legal entity.
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.____ or House Bill No. 4788(request no.
02345'09 a).
(b) Senate Bill No.____ or House Bill No. 4789(request no.
02345'09 b).