SB-0133, As Passed Senate, October 18, 2017

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 133

     A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 11, 18c, 21f, 25e, 31a, 31j, 32d, 35a, 61c,

64d, 67a, 95b, 99h, 99r, 99t, 102d, 104c, 107, 147a, and 166b (MCL

388.1611, 388.1618c, 388.1621f, 388.1625e, 388.1631a, 388.1631j,

388.1632d, 388.1635a, 388.1661c, 388.1664d, 388.1667a, 388.1695b,

388.1699h, 388.1699r, 388.1699t, 388.1702d, 388.1704c, 388.1707,

388.1747a, and 388.1766b), sections 11, 18c, 31a, 31j, 32d, 35a,

61c, 99h, 99t, 102d, 104c, 107, 147a, and 166b as amended and

sections 64d, 67a, 95b, and 99r as added by 2017 PA 108, section

21f as amended by 2016 PA 249, and section 25e as amended by 2016

PA 313, and by adding sections 19b, 99u, and 104e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 11. (1) For the fiscal year ending September 30, 2017,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

$12,069,644,300.00 from the state school aid fund, the sum of

$179,100,000.00 from the general fund, an amount not to exceed

$72,000,000.00 from the community district education trust fund

created under section 12 of the Michigan trust fund act, 2000 PA

489, MCL 12.262, and an amount not to exceed $100.00 from the water

emergency reserve fund. For the fiscal year ending September 30,

2018, there is appropriated for the public schools of this state

and certain other state purposes relating to education the sum of

$12,543,130,300.00 $12,547,270,300.00 from the state school aid

fund, the sum of $215,000,000.00 from the general fund, an amount

not to exceed $72,000,000.00 from the community district education

trust fund created under section 12 of the Michigan trust fund act,

2000 PA 489, MCL 12.262, an amount not to exceed $23,100,000.00

from the MPSERS retirement obligation reform reserve fund, and an

amount not to exceed $100.00 from the water emergency reserve fund.

In addition, all available federal funds are appropriated each

fiscal year for the fiscal years ending September 30, 2017 and

September 30, 2018.

     (2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

from the general fund shall be expended to fund the purposes of

this article before the expenditure of money appropriated under

this section from the state school aid fund.

     (3) Any general fund allocations under this article that are

not expended by the end of the state fiscal year are transferred to

the school aid stabilization fund created under section 11a.

     Sec. 18c. Any contract, mortgage, loan, or other instrument of

indebtedness entered into by a public school academy receiving

funds under this article and a third party does not constitute an

obligation, either general, special, or moral, of this state or of

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, shall not be pledged for the payment

of any contract, mortgage, loan, or other instrument of

indebtedness entered into by a public school academy. or an

achievement school.

     Sec. 19b. (1) A reporting entity required to comply with this

section shall provide reports to the house and senate

appropriations subcommittees on school aid and the house and senate

fiscal agencies on the efficacy and usefulness of the applicable

program that comply with the following:

     (a) For a program in its first year of funding, a reporting

entity shall meet both of the following:

     (i) Provide a report no later than 3 months after receipt of

funding for that fiscal year that includes all of the following:

     (A) A plan describing the intended coverage area, including a

plan for disseminating and promoting the program, along with a plan

for expanding that coverage statewide as funding allows.

     (B) Proposed measurements of outcomes and performance.

     (ii) Provide a report no later than 3 months following the end

of that fiscal year that includes all of the following:

     (A) Actual numbers of students who participated in the

program, including the number of districts where the program was

implemented.

     (B) Actual outcomes and performance based on measurements

described in subdivision (a)(i)(B).

     (C) Proposed amendments to benchmarks that may better indicate

efficacy and usefulness.

     (D) Rationale for continuing the program and plans to expand

further outreach.

     (b) For a program in its second or subsequent year of funding,

a reporting entity shall meet both of the following:

     (i) Provide a report no later than 3 months after receipt of

funding for that fiscal year that includes all of the following:

     (A) A plan describing the continued or expanded coverage area

for the program, including a plan for how the program and its

materials will be disseminated and promoted, and a discussion of

expanding the coverage statewide.

     (B) Proposed measurements of outcomes and performance, and how

to increase performance compared to prior-year performance levels.

     (ii) Provide a report no later than 3 months following the end

of that fiscal year that includes all of the following:

     (A) Actual numbers of students who participated in the

program, including the number of districts where the program was

implemented, and how those compare to prior-year figures.

     (B) Actual outcomes and performance based on measurements

described in subdivision (b)(i)(B).

     (C) Proposed amendments to benchmarks that may better indicate

efficacy and usefulness.

     (D) Rationale for continuing the program and plans to expand

further outreach.

     (2) As used in this section, "reporting entity" means an

entity required to comply with this section.

     Sec. 21f. (1) A primary district shall enroll an eligible

pupil in virtual courses in accordance with the provisions of this

section. A primary district shall not offer a virtual course to an

eligible pupil unless the virtual course is published in the

primary district's catalog of board-approved courses or in the

statewide catalog of virtual courses maintained by the Michigan

Virtual University pursuant to section 98. The primary district

shall also provide on its publicly accessible website a link to the

statewide catalog of virtual courses maintained by the Michigan

Virtual University. Unless the pupil is at least age 18 or is an

emancipated minor, a pupil shall not be enrolled in a virtual

course without the consent of the pupil's parent or legal guardian.

     (2) Subject to subsection (3), a primary district shall enroll

an eligible pupil in up to 2 virtual courses as requested by the

pupil during an academic term, semester, or trimester.

     (3) A pupil may be enrolled in more than 2 virtual courses in

a specific academic term, semester, or trimester if all of the

following conditions are met:

     (a) The primary district has determined that it is in the best

interest of the pupil.

     (b) The pupil agrees with the recommendation of the primary

district.

     (c) The primary district, in collaboration with the pupil, has

developed an education development plan, in a form and manner

specified by the department, that is kept on file by the district.

Beginning October 1, 2016, this subdivision does not apply to a

pupil enrolled as a part-time pupil under section 166b.

     (4) If the number of applicants eligible for acceptance in a

virtual course does not exceed the capacity of the provider to

provide the virtual course, the provider shall accept for

enrollment all of the applicants eligible for acceptance. If the

number of applicants exceeds the provider's capacity to provide the

virtual course, the provider shall use a random draw system,

subject to the need to abide by state and federal

antidiscrimination laws and court orders. A primary district that

is also a provider shall determine whether or not it has the

capacity to accept applications for enrollment from nonresident

applicants in virtual courses and may use that limit as the reason

for refusal to enroll a nonresident applicant.

     (5) A primary district may not establish additional

requirements beyond those specified in this subsection that would

prohibit a pupil from taking a virtual course. A pupil's primary

district may deny the pupil enrollment in an online course if any

of the following apply, as determined by the district:

     (a) The pupil is enrolled in any of grades K to 5.

     (b) The pupil has previously gained the credits that would be

provided from the completion of the virtual course.

     (c) The virtual course is not capable of generating academic

credit.

     (d) The virtual course is inconsistent with the remaining

graduation requirements or career interests of the pupil.

     (e) The pupil has not completed the prerequisite coursework

for the requested virtual course or has not demonstrated

proficiency in the prerequisite course content.

     (f) The pupil has failed a previous virtual course in the same

subject during the 2 most recent academic years.

     (g) The virtual course is of insufficient quality or rigor. A

primary district that denies a pupil enrollment request for this

reason shall enroll the pupil in a virtual course in the same or a

similar subject that the primary district determines is of

acceptable rigor and quality.

     (h) The cost of the virtual course exceeds the amount

identified in subsection (9), unless the pupil or the pupil's

parent or legal guardian agrees to pay the cost that exceeds this

amount.

     (i) The request for a virtual course enrollment did not occur

within the same timelines established by the primary district for

enrollment and schedule changes for regular courses.

     (j) The request for a virtual course enrollment was not made

in the academic term, semester, trimester, or summer preceding the

enrollment. This subdivision does not apply to a request made by a

pupil who is newly enrolled in the primary district.

     (6) If a pupil is denied enrollment in a virtual course by the

pupil's primary district, the primary district shall provide

written notification to the pupil of the denial, the reason or

reasons for the denial pursuant to subsection (5), and a

description of the appeal process. The pupil may appeal the denial

by submitting a letter to the superintendent of the intermediate

district in which the pupil's primary district is located. The

letter of appeal shall include the reason provided by the primary

district for not enrolling the pupil and the reason why the pupil

is claiming that the enrollment should be approved. The

intermediate district superintendent or designee shall respond to

the appeal within 5 days after it is received. If the intermediate

district superintendent or designee determines that the denial of

enrollment does not meet 1 or more of the reasons specified in

subsection (5), the primary district shall enroll the pupil in the

virtual course.

     (7) To provide a virtual course to an eligible pupil under

this section, a provider shall do all of the following:

     (a) Ensure that the virtual course has been published in the

pupil's primary district's catalog of board-approved courses or

published in the statewide catalog of virtual courses maintained by

the Michigan Virtual University.

     (b) Assign to each pupil a teacher of record and provide the

primary district with the personnel identification code assigned by

the center for the teacher of record. If the provider is a

community college, the virtual course must be taught by an

instructor employed by or contracted through the providing

community college.

     (c) Offer the virtual course on an open entry and exit method,

or aligned to a semester, trimester, or accelerated academic term

format.

     (d) If the virtual course is offered to eligible pupils in

more than 1 district, the following additional requirements must

also be met:

     (i) Provide the Michigan Virtual University with a course

syllabus that meets the definition under subsection (14)(g) in a

form and manner prescribed by the Michigan Virtual University for

inclusion in a statewide catalog of virtual courses.

     (ii) Not later than October 1 of each fiscal year, provide the

Michigan Virtual University with an aggregated count of enrollments

for each virtual course the provider delivered to pupils pursuant

to this section during the immediately preceding school year, and

the number of enrollments in which the pupil earned 60% or more of

the total course points for each virtual course.

     (8) To provide an online course under this section, a

community college shall ensure that each online course it provides

under this section generates postsecondary credit.

     (9) For any virtual course a pupil enrolls in under this

section, the pupil's primary district must assign to the pupil a

mentor and shall supply the provider with the mentor's contact

information.

     (10) For a pupil enrolled in 1 or more virtual courses, the

primary district shall use foundation allowance or per-pupil funds

calculated under section 20 to pay for the expenses associated with

the virtual course or courses. A primary district is not required

to pay toward the cost of a virtual course an amount that exceeds

6.67% of the minimum foundation allowance for the current fiscal

year as calculated under section 20.

     (11) A virtual learning pupil shall have the same rights and

access to technology in his or her primary district's school

facilities as all other pupils enrolled in the pupil's primary

district. The department shall establish standards for hardware,

software, and Internet access for pupils who are enrolled in more

than 2 virtual courses in an academic term, semester, or trimester

taken at a location other than a school facility.

     (12) If a pupil successfully completes a virtual course, as

determined by the pupil's primary district, the pupil's primary

district shall grant appropriate academic credit for completion of

the course and shall count that credit toward completion of

graduation and subject area requirements. A pupil's school record

and transcript shall identify the virtual course title as it

appears in the virtual course syllabus.

     (13) The enrollment of a pupil in 1 or more virtual courses

shall not result in a pupil being counted as more than 1.0 full-

time equivalent pupils under this article. The minimum requirements

to count the pupil in membership are those established by the pupil

accounting manual as it was in effect for the 2015-2016 school year

or as subsequently amended by the department if the department

notifies the legislature about the proposed amendment at least 60

days before the amendment becomes effective.

     (14) As used in this section:

     (a) "Instructor" means an individual who is employed by or

contracted through a community college.

     (b) "Mentor" means a professional employee of the primary

district who monitors the pupil's progress, ensures the pupil has

access to needed technology, is available for assistance, and

ensures access to the teacher of record. A mentor may also serve as

the teacher of record if the primary district is the provider for

the virtual course and the mentor meets the requirements under

subdivision (e).

     (c) "Primary district" means the district that enrolls the

pupil and reports the pupil for pupil membership purposes.

     (d) "Provider" means the district, intermediate district, or

community college that the primary district pays to provide the

virtual course or the Michigan Virtual University if it is

providing the virtual course.

     (e) "Teacher of record" means a teacher who meets all of the

following:

     (i) Holds a valid Michigan teaching certificate or a teaching

permit recognized by the department.

     (ii) If applicable, is endorsed in the subject area and grade

of the virtual course.

     (iii) Is responsible for providing instruction, determining

instructional methods for each pupil, diagnosing learning needs,

assessing pupil learning, prescribing intervention strategies and

modifying lessons, reporting outcomes, and evaluating the effects

of instruction and support strategies.

     (iv) Has a personnel identification code provided by the

center.

     (v) If the provider is a community college, is an instructor

employed by or contracted through the providing community college.

     (f) "Virtual course" means a course of study that is capable

of generating a credit or a grade and that is provided in an

interactive learning environment where the majority of the

curriculum is delivered using the Internet and in which pupils may

be separated from their instructor or teacher of record by time or

location, or both.

     (g) "Virtual course syllabus" means a document that includes

all of the following:

     (i) An alignment document detailing how the course meets

applicable state standards or, if the state does not have state

standards, nationally recognized standards.

     (ii) The virtual course content outline.

     (iii) The virtual course required assessments.

     (iv) The virtual course prerequisites.

     (v) Expectations for actual instructor or teacher of record

contact time with the virtual learning pupil and other

communications between a pupil and the instructor or teacher of

record.

     (vi) Academic support available to the virtual learning pupil.

     (vii) The virtual course learning outcomes and objectives.

     (viii) The name of the institution or organization providing

the virtual content.

     (ix) The name of the institution or organization providing the

instructor or teacher of record.

     (x) The course titles assigned by the provider and the course

titles and course codes from the National Center for Education

Statistics (NCES) school codes for the exchange of data (SCED).

     (xi) The number of eligible pupils that will be accepted by

the provider in the virtual course. A primary district that is also

the provider may limit the enrollment to those pupils enrolled in

the primary district.

     (xii) The results of the virtual course quality review using

the guidelines and model review process published by the Michigan

Virtual University.

     (h) "Virtual learning pupil" means a pupil enrolled in 1 or

more virtual courses.

     Sec. 25e. (1) The pupil membership transfer application and

pupil transfer process administered by the center under this

section shall be used for processing pupil transfers.

     (2) If a pupil counted in membership for the pupil membership

count day transfers from a district or intermediate district to

enroll in another district or intermediate district after the pupil

membership count day and before the supplemental count day and, due

to the pupil's enrollment and attendance status as of the pupil

membership count day, the pupil was not counted in membership in

the educating district or intermediate district, the educating

district or intermediate district may report the enrollment and

attendance information to the center through the pupil transfer

process within 30 days after the transfer or within 30 days after

the pupil membership count certification date, whichever is later.

Pupil transfers may be submitted no earlier than the first day

after the certification deadline for the pupil membership count day

and before the supplemental count day. Upon receipt of the transfer

information under this subsection indicating that a pupil has

enrolled and is in attendance in an educating district or

intermediate district as described in this subsection, the pupil

transfer process shall do the following:

     (a) Notify the district in which the pupil was previously

enrolled.

     (b) Notify both the pupil auditing staff of the intermediate

district in which the educating district is located and the pupil

auditing staff of the intermediate district in which the district

that previously enrolled the pupil is located. The pupil auditing

staff shall investigate a representative sample based on required

audit sample sizes in the pupil auditing manual and may deny the

pupil membership transfer.

     (c) Aggregate the districtwide changes and notify the

department for use in adjusting the state aid payment system.

     (3) The department shall do all of the following:

     (a) Adjust the membership calculation for each district or

intermediate district in which the pupil was previously counted in

membership or that previously received an adjustment in its

membership calculation under this section due to a change in the

pupil's enrollment and attendance so that the district's or

intermediate district's membership is prorated to allow the

district or intermediate district to receive for each school day,

as determined by the financial calendar furnished by the center, in

which the pupil was enrolled and in attendance in the district or

intermediate district an amount equal to 1/105 of a full-time

equated membership claimed in the fall pupil membership count. The

district or intermediate district shall receive a prorated

foundation allowance in an amount equal to the product of the

adjustment under this subdivision for the district or intermediate

district multiplied by the foundation allowance or per-pupil

payment as calculated under section 20 for the district or

intermediate district. The foundation allowance or per-pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

     (b) Adjust the membership calculation for the educating

district or intermediate district in which the pupil is enrolled

and is in attendance so that the district's or intermediate

district's membership is increased to allow the district or

intermediate district to receive an amount equal to the difference

between the full-time equated membership claimed in the fall pupil

membership count and the sum of the adjustments calculated under

subdivision (a) for each district or intermediate district in which

the pupil was previously enrolled and in attendance. The educating

district or intermediate district shall receive a prorated

foundation allowance in an amount equal to the product of the

adjustment under this subdivision for the educating district or

intermediate district multiplied by the per-pupil payment as

calculated under section 20 for the educating district or

intermediate district. The foundation allowance or per-pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

     (4) The changes in calculation of state school aid required

under subsection (3) shall take effect as of the date that the

pupil becomes enrolled and in attendance in the educating district

or intermediate district, and the department shall base all

subsequent payments under this article for the fiscal year to the

affected districts or intermediate districts on this recalculation

of state school aid.

     (5) If a pupil enrolls in an educating district or

intermediate district as described in subsection (2), the district

or intermediate district in which the pupil is counted in

membership or another educating district or intermediate district

that received an adjustment in its membership calculation under

subsection (3), if any, and the educating district or intermediate

district shall provide to the center and the department all

information they require to comply with this section.

     (6) The portion of the full-time equated pupil membership for

which a pupil is enrolled in 1 or more online courses under section

21f that is representative of the amount that the primary district

paid in course costs to the course provider shall not be counted or

transferred under the pupil transfer process under this section.

     (7) It is the intent of the legislature that the center

determine the number of pupils who did not reside in this state as

of the 2018-2019 pupil membership count day but who newly enrolled

in a district or intermediate district after that pupil membership

count day and before the 2018-2019 supplemental count day. It is

the intent of the legislature that the center further determine the

number of pupils who were counted in membership for the 2018-2019

pupil membership count day but who left this state before the 2018-

2019 supplemental count day. In 2019-2020, the center shall provide

a report to the senate and house appropriations subcommittees on

state school aid, and to the senate and house fiscal agencies,

detailing the number of pupils transferring in from another state

or transferring out from this state between the pupil membership

count day and supplemental count day as described in this

subsection. The center shall include in the report a discussion of

benefits and obstacles to developing a pupil enrollment process for

pupils who newly enroll in a district or intermediate district

after the pupil membership count day and before the supplemental

count day, and developing a process for deducting pupils who were

counted on the pupil membership count day and transfer out of this

state before the supplemental count day.

     (8) As used in this section:

     (a) "Educating district or intermediate district" means the

district or intermediate district in which a pupil enrolls after

the pupil membership count day or after an adjustment was made in

another district's or intermediate district's membership

calculation under this section due to the pupil's enrollment and

attendance.

     (b) "Pupil" means that term as defined under section 6 and

also children receiving early childhood special education programs

and services.

     Sec. 31a. (1) From the state school aid fund money

appropriated in section 11, there is allocated for 2017-2018 an

amount not to exceed $510,207,300.00 for payments to eligible

districts and eligible public school academies for the purposes of

ensuring that pupils are proficient in English language arts by the

end of grade 3, that pupils are proficient in mathematics by the

end of grade 8, that pupils are attending school regularly, that

high school graduates are career and college ready, and for the

purposes under subsections (7) and (8).

     (2) For a district that has combined state and local revenue

per membership pupil under sections 20 and 20m that is greater than

the basic foundation allowance under section 20 for the current

fiscal year, the allocation under this section shall be an amount

equal to 30% of the allocation for which it would otherwise be

eligible under this section before any proration under subsection

(12).(14).

     (3) For a district or public school academy to be eligible to

receive funding under this section, other than funding under

subsection (7) or (8), the district or public school academy, for

grades K to 3, shall comply with the requirements under section

1280f of the revised school code, MCL 380.1280f, and use resources

to address early literacy, and for at least grades 4 to 8 or, if

the district or public school academy does not operate all of

grades 4 to 8, for all of the grades it operates, must implement a

multi-tiered system of supports that is an evidence-based model

that uses data-driven problem solving to integrate academic and

behavioral instruction and that uses intervention delivered to all

pupils in varying intensities based on pupil needs. This multi-

tiered system of supports must provide at least all of the

following essential elements:

     (a) Implements effective instruction for all learners.

     (b) Intervenes early.

     (c) Provides a multi-tiered model of instruction and

intervention that provides the following:

     (i) A core curriculum and classroom interventions available to

all pupils that meet the needs of most pupils.

     (ii) Targeted group interventions.

     (iii) Intense individual interventions.

     (d) Monitors pupil progress to inform instruction.

     (e) Uses data to make instructional decisions.

     (f) Uses assessments including universal screening,

diagnostics, and progress monitoring.

     (g) Engages families and the community.

     (h) Implements evidence-based, scientifically validated,

instruction and intervention.

     (i) Implements instruction and intervention practices with

fidelity.

     (j) Uses a collaborative problem-solving model.

     (4) Except as otherwise provided in this subsection, an

eligible district or eligible public school academy shall receive

under this section for each membership pupil in the district or

public school academy who is determined to be economically

disadvantaged, as reported to the center in the form and manner

prescribed by the center not later than the fifth Wednesday after

the pupil membership count day of the immediately preceding fiscal

year, an amount per pupil equal to 11.5% of the statewide weighted

average foundation allowance. However, a public school academy that

began operations as a public school academy after the pupil

membership count day of the immediately preceding school year shall

receive under this section for each membership pupil in the public

school academy, who is determined to be economically disadvantaged,

as reported to the center in the form and manner prescribed by the

center not later than the fifth Wednesday after the pupil

membership count day of the current fiscal year, an amount per

pupil equal to 11.5% of the statewide weighted average foundation

allowance.

     (5) Except as otherwise provided in this section, a district

or public school academy receiving funding under this section shall

use that money only to provide instructional programs and direct

noninstructional services, including, but not limited to, medical,

mental health, or counseling services, for at-risk pupils; for

school health clinics; and for the purposes of subsection (6), (7),

or (8). In addition, a district that is a school district of the

first class or a district or public school academy in which at

least 50% of the pupils in membership were determined to be

economically disadvantaged in the immediately preceding state

fiscal year, as determined and reported as described in subsection

(4), may use not more than 20% of the funds it receives under this

section for school security. A district or public school academy

shall not use any of that money for administrative costs. The

instruction or direct noninstructional services provided under this

section may be conducted before or after regular school hours or by

adding extra school days to the school year.

     (6) A district or public school academy that receives funds

under this section and that operates a school breakfast program

under section 1272a of the revised school code, MCL 380.1272a,

shall use from the funds received under this section an amount, not

to exceed $10.00 per pupil for whom the district or public school

academy receives funds under this section, necessary to pay for

costs associated with the operation of the school breakfast

program.

     (7) From the funds allocated under subsection (1), there is

allocated for 2017-2018 an amount not to exceed $6,057,300.00 to

support primary health care services provided to children and

adolescents up to age 21. These funds shall be expended in a form

and manner determined jointly by the department and the department

of health and human services. If any funds allocated under this

subsection are not used for the purposes of this subsection for the

fiscal year in which they are allocated, those unused funds shall

be used that fiscal year to avoid or minimize any proration that

would otherwise be required under subsection (12) (14) for that

fiscal year.

     (8) From the funds allocated under subsection (1), there is

allocated for 2017-2018 an amount not to exceed $5,150,000.00 for

the state portion of the hearing and vision screenings as described

in section 9301 of the public health code, 1978 PA 368, MCL

333.9301. A local public health department shall pay at least 50%

of the total cost of the screenings. The frequency of the

screenings shall be as required under R 325.13091 to R 325.13096

and R 325.3271 to R 325.3276 of the Michigan Administrative Code.

Funds shall be awarded in a form and manner approved jointly by the

department and the department of health and human services.

Notwithstanding section 17b, payments to eligible entities under

this subsection shall be paid on a schedule determined by the

department.

     (9) Each district or public school academy receiving funds

under this section shall submit to the department by July 15 of

each fiscal year a report, in the form and manner prescribed by the

department, that includes a brief description of each program

conducted or services performed by the district or public school

academy using funds under this section, the amount of funds under

this section allocated to each of those programs or services, the

total number of at-risk pupils served by each of those programs or

services, and the data necessary for the department and the

department of health and human services to verify matching funds

for the temporary assistance for needy families program. In

prescribing the form and manner of the report, the department shall

ensure that districts are allowed to expend funds received under

this section on any activities that are permissible under this

section. If a district or public school academy does not comply

with this subsection, the department shall withhold an amount equal

to the August payment due under this section until the district or

public school academy complies with this subsection. If the

district or public school academy does not comply with this

subsection by the end of the state fiscal year, the withheld funds

shall be forfeited to the school aid fund.

     (10) In order to receive funds under this section, a district

or public school academy shall allow access for the department or

the department's designee to audit all records related to the

program for which it receives those funds. The district or public

school academy shall reimburse the state for all disallowances

found in the audit.

     (11) Subject to subsections (6), (7), and (8), a district or

public school academy may use up to 100% of the funds it receives

under this section to implement schoolwide reform in schools with

40% or more of their pupils identified as at-risk pupils by

providing instructional or noninstructional services consistent

with the school improvement plan.

(12) (11) A district or public school academy that receives

funds under this section may use up to 3% of those funds to provide

research-based professional development to district and school

leadership and teachers that is aligned to professional learning

standards; is integrated into district, school building, and

classroom practices; and is solely related to the following:

     (a) Implementing the multi-tiered system of supports required

in subsection (3) with fidelity and utilizing the data from that

system to inform curriculum and instruction.

     (b) Implementing section 1280f of the revised school code, MCL

380.1280f, as required under subsection (3), with fidelity.

(13) A district or public school academy that receives funds

under this section may use funds received under this section to

support instructional or behavioral coaches. Funds used for this

purpose are not subject to the cap under subsection (12).

     (14) (12) If necessary, and before any proration required

under section 296, the department shall prorate payments under this

section by reducing the amount of the allocation as otherwise

calculated under this section by an equal percentage per district.

(15) (13) If a district is dissolved pursuant to section 12 of

the revised school code, MCL 380.12, the intermediate district to

which the dissolved school district was constituent shall determine

the estimated number of pupils that are economically disadvantaged

and that are enrolled in each of the other districts within the

intermediate district and provide that estimate to the department

for the purposes of distributing funds under this section within 60

days after the school district is declared dissolved.

(16) (14) Beginning in 2018-2019, if a district or public

school academy does not demonstrate to the satisfaction of the

department that at least 50% of at-risk pupils are proficient in

English language arts by the end of grade 3 as measured by the

state assessment for the immediately preceding school year and

demonstrate to the satisfaction of the department improvement over

each of the 3 immediately preceding school years in the percentage

of at-risk pupils that are career- and college-ready as determined

by proficiency on the English language arts, mathematics, and

science content area assessments on the grade 11 summative

assessment under section 1279g(2)(a) of the revised school code,

MCL 380.1279g, the district or public school academy shall ensure

all of the following:

     (a) The district or public school academy shall determine the

proportion of total at-risk pupils that represents the number of

pupils in grade 3 that are not proficient in English language arts

by the end of grade 3, and the district or public school academy

shall expend that same proportion multiplied by 1/2 of its total

at-risk funds under this section on tutoring and other methods of

improving grade 3 English language arts proficiency.

     (b) The district or public school academy shall determine the

proportion of total at-risk pupils that represent the number of

pupils in grade 11 that are not career- and college-ready as

measured by the student's score on the English language arts,

mathematics, and science content area assessments on the grade 11

summative assessment under section 1279g(2)(a) of the revised

school code, MCL 380.1279g, and the district or public school

academy shall expend that same proportion multiplied by 1/2 of its

total at-risk funds under this section on tutoring and other

activities to improve scores on the college entrance examination

portion of the Michigan merit examination.

(17) (15) As used in subsection (14), (16), "total at-risk

pupils" means the sum of the number of pupils in grade 3 that are

not proficient in English language arts by the end of third grade

as measured on the state assessment and the number of pupils in

grade 11 that are not career- and college-ready as measured by the

student's score on the English language arts, mathematics, and

science content area assessments on the grade 11 summative

assessment under section 1279g(2)(a) of the revised school code,

MCL 380.1279g.

(18) (16) A district or public school academy that receives

funds under this section may use funds received under this section

to provide an anti-bullying or crisis intervention program.

(19) (17) The department shall collaborate with the department

of health and human services to prioritize assigning Pathways to

Potential Success coaches to elementary schools that have a high

percentage of pupils in grades K to 3 who are not proficient in

English language arts, based upon state assessments for pupils in

those grades.

(20) (18) For the purpose of determining the number of

economically disadvantaged pupils enrolled in a community district

for 2017-2018, disadvantaged pupils who were enrolled in the

education achievement system for 2016-2017 shall be considered to

have been enrolled in the community district for 2016-2017.

(21) (19) As used in this section:

     (a) "At-risk pupil" means a pupil who is economically

disadvantaged or an English language learner for whom the district

has documentation that the pupil meets any of the following

criteria:

     (i) The pupil did not achieve proficiency on the English

language arts state assessment for grade 3 or is at risk of not

achieving proficiency, as determined by the district or public

school academy using data provided as part of the multi-tiered

system of supports described in subsection (3).is economically

disadvantaged.

     (ii) The pupil did not achieve proficiency on the mathematics

state assessment for grade 8 or is at risk of not achieving

proficiency, as determined by the district or public school academy

using data provided as part of the multi-tiered system of supports

described in subsection (3).is an English language learner.

     (iii) The pupil is chronically absent as defined by and

reported to the center.

     (iv) The pupil is a victim of child abuse or neglect.

     (v) The pupil is a pregnant teenager or teenage parent.

     (vi) The pupil has a family history of school failure,

incarceration, or substance abuse.

     (vii) The pupil is an immigrant who has immigrated within the

immediately preceding 3 years.

     (viii) The pupil did not complete high school in 4 years and

is still continuing in school as identified in the Michigan cohort

graduation and dropout report.

     (ix) For pupils for whom the results of the state summative

assessment have been received, is a pupil who did not achieve

proficiency on the English language arts, mathematics, science, or

social studies content area assessment.

     (x) Is a pupil who is at risk of not meeting the district's or

public school academy's core academic curricular objectives in

English language arts or mathematics, as demonstrated on local

assessments.

     (b) "Economically disadvantaged" means a pupil who has been

determined eligible for free or reduced-price meals as determined

under the Richard B. Russell national school lunch act, 42 USC 1751

to 1769; 1769j; who is in a household receiving supplemental

nutrition assistance program or temporary assistance for needy

families assistance; or who is homeless, migrant, or in foster

care, as reported to the center.

     (c) "English language learner" means limited English

proficient pupils who speak a language other than English as their

primary language and have difficulty speaking, reading, writing, or

understanding English as reported to the center.

     (d) "Statewide weighted average foundation allowance" means

the number that is calculated by adding together the result of each

district's or public school academy's foundation allowance or per

pupil payment calculated under section 20 multiplied by the number

of pupils in membership in that district or public school academy,

and then dividing that total by the statewide number of pupils in

membership. For the purposes of this calculation, a district's

foundation allowance shall not exceed the basic foundation

allowance under section 20 for the current state fiscal year.

     Sec. 31j. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed $375,000.00

for 2017-2018 for a pilot project to support districts in the

purchase of locally grown fruits and vegetables as described in

this section.

     (2) The department shall provide funding to districts in

prosperity regions 2, 4, and 9 for the pilot project described

under this section. From the funding identified to districts in

subsection (1), funding retained by the prosperity regions for

administration of that administer the project shall not exceed 10%,

and funding retained by the department for administration shall not

exceed 6%. A prosperity region may enter into a memorandum of

understanding with the department or another prosperity region, or

both, to administer the project. If the department administers the

project for a prosperity region, the department may retain up to

10% of that prosperity region's funding for administration.

     (3) The department shall develop and implement a competitive

grant program for districts within the identified prosperity

regions to assist in paying for the costs incurred by the district

to purchase or increase purchases of whole or minimally processed

fruits, vegetables, and legumes grown in this state. The maximum

amount that may be drawn down on a grant to a district shall be

based on the number of meals served by the school district during

the previous school year under the Richard B. Russell national

school lunch act, 42 USC 1751 to 1769j. The department shall

collaborate with the Michigan department of agriculture and rural

development to provide training to newly participating schools and

electronic information on Michigan agriculture.

     (4) The goals of the pilot project include improving daily

nutrition and eating habits for children through the school

settings while investing in Michigan's agricultural and related

food business economy.

     (5) A district that receives a grant under this section shall

use those funds for the costs incurred by the school district to

purchase whole or minimally processed fruits, vegetables, and

legumes that meet all of the following:

     (a) Are purchased on or after the date the district received

notification from the department of the amount to be distributed to

the district under this subsection, including purchases made to

launch meals in September 2017 for the 2017-2018 school year.

     (b) Are grown in this state and, if minimally processed, are

also processed in this state.

     (c) Are used for meals that are served as part of the United

States Department of Agriculture's child nutrition programs.

     (6) For Michigan-grown fruits, vegetables, and legumes that

satisfy the requirements of subsection (5), matching reimbursements

shall be made in an amount not to exceed 10 cents for every school

meal that is served as part of the United States Department of

Agriculture's child nutrition programs and that uses Michigan-grown

fruits, vegetables, and legumes.

     (7) A district that receives a grant for reimbursement under

this section shall use the grant to purchase whole or minimally

processed fruits, vegetables, and legumes that are grown in this

state and, if minimally processed, are also processed in this

state.

     (8) In awarding grants under this section, the department

shall work in conjunction with prosperity region offices, in

consultation with Michigan-based farm to school resource

organizations, to develop scoring criteria that assess an

applicant's ability to procure Michigan-grown products, prepare and

menu Michigan-grown products, promote and market Michigan-grown

products, and submit letters of intent from districts on plans for

educational activities that promote the goals of the program.

     (9) The department shall give preference to districts that

propose educational activities that meet 1 or more of the

following: promote healthy food activities; have clear educational

objectives; involve parents or the community; and connect to a

school's farm-to-school procurement activities.

     (10) In awarding grants, the department shall also consider

all of the following: the percentage of children who qualify for

free or reduced price school meals under the Richard B. Russell

national school lunch act, 42 USC 1751 to 1769j; the variety of

school sizes and geographic locations within the identified

prosperity regions; and existing or future collaboration

opportunities between more than 1 district in a prosperity region.

     (11) As a condition of receiving a grant under this section, a

district shall provide or direct its vendors to provide to

prosperity region offices copies of monthly receipts that show the

quantity of different Michigan-grown fruits, vegetables, and

legumes purchased, the amount of money spent on each of these

products, and the name and Michigan location of the farm that grew

the products. The district shall also provide to the prosperity

region monthly lunch numbers and lunch participation rates, and

calendars or monthly menus noting when and how Michigan-grown

products were used in meals. The district and school food service

director or directors also shall agree to respond to brief online

surveys and to provide a report that shows the percentage

relationship of Michigan spending compared to total food spending.

Not later than March 1, 2018, each prosperity region office, either

on its own or in conjunction with another prosperity region, shall

submit a report to the department on expected outcomes and related

measurements for economic development and children's nutrition and

readiness to learn based on progress so far. The report shall

include at least all of the following:

     (a) The extent to which farmers and related businesses,

including distributors and processors, see an increase in market

opportunities and income generation through sales of Michigan or

local products to districts. All of the following apply for

purposes of this subdivision:

     (i) The data used to determine the amount of this increase

shall be the total dollar amount of Michigan or local fruits,

vegetables, and legumes purchased by schools, along with the number

of different types of products purchased; school food purchasing

trends identified along with products that are of new and growing

interest among food service directors; the number of businesses

impacted; and the percentage of total food budget spent on

Michigan-grown fruits, vegetables, and legumes.

     (ii) The prosperity region office shall use purchasing data

collected for the project and surveys of school food service

directors on the impact and success of the project as the source

for the data described in subparagraph (i).

     (b) The ability to which pupils can access a variety of

healthy Michigan-grown foods through schools and increase their

consumption of those foods. All of the following apply for purposes

of this subdivision:

     (i) The data used to determine whether this subparagraph is

met shall be the number of pupils exposed to Michigan-grown fruits,

vegetables, and legumes at schools; the variety of products served;

new items taste-tested or placed on menus; and the increase in

pupil willingness to try new local, healthy foods.

     (ii) The prosperity region office shall use purchasing data

collected for the project, meal count and enrollment numbers,

school menu calendars, and surveys of school food service directors

as the source for the data described in subparagraph (i).

     (12) The department shall compile the reports provided by

prosperity region offices under subsection (11) into 1 legislative

report. The department shall provide this report not later than

April 1, 2018 to the house and senate subcommittees responsible for

school aid, the house and senate fiscal agencies, and the state

budget director.

     Sec. 32d. (1) From the funds appropriated in section 11, there

is allocated to eligible intermediate districts and consortia of

intermediate districts for great start readiness programs an amount

not to exceed $243,600,000.00 for 2017-2018. Funds allocated under

this section for great start readiness programs shall be used to

provide part-day, school-day, or GSRP/Head Start blended

comprehensive free compensatory classroom programs designed to

improve the readiness and subsequent achievement of educationally

disadvantaged children who meet the participant eligibility and

prioritization guidelines as defined by the department. For a child

to be eligible to participate in a program under this section, the

child shall be at least 4, but less than 5, years of age as of

September 1 of the school year in which the program is offered and

shall meet those eligibility and prioritization guidelines. A child

who is not 4 years of age as of September 1, but who will be 4

years of age not later than December 1, is eligible to participate

if the child's parent or legal guardian seeks a waiver from the

September 1 eligibility date by submitting a request for enrollment

in a program to the responsible intermediate district, if the

program has capacity on or after September 1 of the school year,

and if the child meets eligibility and prioritization guidelines.

     (2) Funds allocated under subsection (1) shall be allocated to

intermediate districts or consortia of intermediate districts based

on the formula in section 39. An intermediate district or

consortium of intermediate districts receiving funding under this

section shall act as the fiduciary for the great start readiness

programs. In order to be eligible to receive funds allocated under

this subsection from an intermediate district or consortium of

intermediate districts, a district, a consortium of districts, or a

public or private for-profit or nonprofit legal entity or agency

shall comply with this section and section 39.

     (3) In addition to the allocation under subsection (1), from

the general fund money appropriated under section 11, there is

allocated an amount not to exceed $300,000.00 for 2017-2018 for a

competitive grant to continue a longitudinal evaluation of children

who have participated in great start readiness programs.

     (4) To be eligible for funding under this section, a program

shall prepare children for success in school through comprehensive

part-day, school-day, or GSRP/Head Start blended programs that

contain all of the following program components, as determined by

the department:

     (a) Participation in a collaborative recruitment and

enrollment process to assure that each child is enrolled in the

program most appropriate to his or her needs and to maximize the

use of federal, state, and local funds.

     (b) An age-appropriate educational curriculum that is in

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board, including, at

least, the Connect4Learning curriculum.

     (c) Nutritional services for all program participants

supported by federal, state, and local resources as applicable.

     (d) Physical and dental health and developmental screening

services for all program participants.

     (e) Referral services for families of program participants to

community social service agencies, including mental health

services, as appropriate.

     (f) Active and continuous involvement of the parents or

guardians of the program participants.

     (g) A plan to conduct and report annual great start readiness

program evaluations and continuous improvement plans using criteria

approved by the department.

     (h) Participation in a school readiness advisory committee

convened as a workgroup of the great start collaborative that

provides for the involvement of classroom teachers, parents or

guardians of program participants, and community, volunteer, and

social service agencies and organizations, as appropriate. The

advisory committee annually shall review and make recommendations

regarding the program components listed in this subsection. The

advisory committee also shall make recommendations to the great

start collaborative regarding other community services designed to

improve all children's school readiness.

     (i) The ongoing articulation of the kindergarten and first

grade programs offered by the program provider.

     (j) Participation in this state's great start to quality

process with a rating of at least 3 stars.

     (5) An application for funding under this section shall

provide for the following, in a form and manner determined by the

department:

     (a) Ensure compliance with all program components described in

subsection (4).

     (b) Except as otherwise provided in this subdivision, ensure

that at least 90% of the children participating in an eligible

great start readiness program for whom the intermediate district is

receiving funds under this section are children who live with

families with a household income that is equal to or less than 250%

of the federal poverty level. If the intermediate district

determines that all eligible children are being served and that

there are no children on the waiting list who live with families

with a household income that is equal to or less than 250% of the

federal poverty level, the intermediate district may then enroll

children who live with families with a household income that is

equal to or less than 300% of the federal poverty level. The

enrollment process shall consider income and risk factors, such

that children determined with higher need are enrolled before

children with lesser need. For purposes of this subdivision, all

age-eligible children served in foster care or who are experiencing

homelessness or who have individualized education plans

recommending placement in an inclusive preschool setting shall be

considered to live with families with household income equal to or

less than 250% of the federal poverty level regardless of actual

family income and shall be prioritized for enrollment within the

lowest quintile.

     (c) Ensure that the applicant only uses qualified personnel

for this program, as follows:

     (i) Teachers possessing proper training. A lead teacher must

have a valid teaching certificate with an early childhood (ZA or

ZS) endorsement or a bachelor's or higher degree in child

development or early childhood education with specialization in

preschool teaching. However, if an applicant demonstrates to the

department that it is unable to fully comply with this subparagraph

after making reasonable efforts to comply, teachers who have

significant but incomplete training in early childhood education or

child development may be used if the applicant provides to the

department, and the department approves, a plan for each teacher to

come into compliance with the standards in this subparagraph. A

teacher's compliance plan must be completed within 2 years of the

date of employment. Progress toward completion of the compliance

plan shall consist of at least 2 courses per calendar year.

     (ii) Paraprofessionals possessing proper training in early

childhood education, including an associate's degree in early

childhood education or child development or the equivalent, or a

child development associate (CDA) credential. However, if an

applicant demonstrates to the department that it is unable to fully

comply with this subparagraph after making reasonable efforts to

comply, the applicant may use paraprofessionals who have completed

at least 1 course that earns college credit in early childhood

education or child development if the applicant provides to the

department, and the department approves, a plan for each

paraprofessional to come into compliance with the standards in this

subparagraph. A paraprofessional's compliance plan must be

completed within 2 years of the date of employment. Progress toward

completion of the compliance plan shall consist of at least 2

courses or 60 clock hours of training per calendar year.

     (d) Include a program budget that contains only those costs

that are not reimbursed or reimbursable by federal funding, that

are clearly and directly attributable to the great start readiness

program, and that would not be incurred if the program were not

being offered. Eligible costs include transportation costs. The

program budget shall indicate the extent to which these funds will

supplement other federal, state, local, or private funds. Funds

received under this section shall not be used to supplant any

federal funds received by the applicant to serve children eligible

for a federally funded preschool program that has the capacity to

serve those children.

     (6) For a grant recipient that enrolls pupils in a school-day

program funded under this section, each child enrolled in the

school-day program shall be counted as described in section 39 for

purposes of determining the amount of the grant award.

     (7) For a grant recipient that enrolls pupils in a GSRP/Head

Start blended program, the grant recipient shall ensure that all

Head Start and GSRP policies and regulations are applied to the

blended slots, with adherence to the highest standard from either

program, to the extent allowable under federal law.

     (8) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall designate an

early childhood coordinator, and may provide services directly or

may contract with 1 or more districts or public or private for-

profit or nonprofit providers that meet all requirements of

subsections (4) and (5).

     (9) An intermediate district or consortium of intermediate

districts may retain for administrative services provided by the

intermediate district or consortium of intermediate districts an

amount not to exceed 4% of the grant amount. Expenses incurred by

subrecipients engaged by the intermediate district or consortium of

intermediate districts for directly running portions of the program

shall be considered program costs or a contracted program fee for

service.

     (10) An intermediate district or consortium of intermediate

districts may expend not more than 2% of the total grant amount for

outreach, recruiting, and public awareness of the program.

     (11) Each grant recipient shall enroll children identified

under subsection (5)(b) according to how far the child's household

income is below 250% of the federal poverty level by ranking each

applicant child's household income from lowest to highest and

dividing the applicant children into quintiles based on how far the

child's household income is below 250% of the federal poverty

level, and then enrolling children in the quintile with the lowest

household income before enrolling children in the quintile with the

next lowest household income until slots are completely filled. If

the grant recipient determines that all eligible children are being

served and that there are no children on the waiting list who live

with families with a household income that is equal to or less than

250% of the federal poverty level, the grant recipient may then

enroll children who live with families with a household income that

is equal to or less than 300% of the federal poverty level. The

enrollment process shall consider income and risk factors, such

that children determined with higher need are enrolled before

children with lesser need. For purposes of this subdivision, all

age-eligible children served in foster care or who are experiencing

homelessness or who have individualized education plans

recommending placement in an inclusive preschool setting shall be

considered to live with families with household income equal to or

less than 250% of the federal poverty level regardless of actual

family income and shall be prioritized for enrollment within the

lowest quintile.

     (12) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall allow parents

of eligible children who are residents of the intermediate district

or within the consortium to choose a program operated by or

contracted with another intermediate district or consortium of

intermediate districts and shall enter into a written agreement

regarding payment, in a manner prescribed by the department.

     (13) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall conduct a

local process to contract with interested and eligible public and

private for-profit and nonprofit community-based providers that

meet all requirements of subsection (4) for at least 30% of its

total allocation. For the purposes of this 30% allocation, an

intermediate district or consortium of intermediate districts may

count children served by a Head Start grantee or delegate in a

blended Head Start and great start readiness school-day program.

Children served in a program funded only through Head Start shall

not be counted toward this 30% allocation. The intermediate

district or consortium shall report to the department, in a manner

prescribed by the department, a detailed list of community-based

providers by provider type, including private for-profit, private

nonprofit, community college or university, Head Start grantee or

delegate, and district or intermediate district, and the number and

proportion of its total allocation allocated to each provider as

subrecipient. If the intermediate district or consortium is not

able to contract for at least 30% of its total allocation, the

grant recipient shall notify the department and, if the department

verifies that the intermediate district or consortium attempted to

contract for at least 30% of its total allocation and was not able

to do so, then the intermediate district or consortium may retain

and use all of its allocation as provided under this section. To be

able to use this exemption, the intermediate district or consortium

shall demonstrate to the department that the intermediate district

or consortium increased the percentage of its total allocation for

which it contracts with a community-based provider and the

intermediate district or consortium shall submit evidence

satisfactory to the department, and the department must be able to

verify this evidence, demonstrating that the intermediate district

or consortium took measures to contract for at least 30% of its

total allocation as required under this subsection, including, but

not limited to, at least all of the following measures:

     (a) The intermediate district or consortium notified each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium regarding the

center's eligibility to participate, in a manner prescribed by the

department.

     (b) The intermediate district or consortium provided to each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium information

regarding great start readiness program requirements and a

description of the application and selection process for community-

based providers.

     (c) The intermediate district or consortium provided to the

public and to participating families a list of community-based

great start readiness program subrecipients with a great start to

quality rating of at least 3 stars.

     (14) If an intermediate district or consortium of intermediate

districts receiving a grant under this section fails to submit

satisfactory evidence to demonstrate its effort to contract for at

least 30% of its total allocation, as required under subsection

(1), (13), the department shall reduce the allocation to the

intermediate district or consortium by a percentage equal to the

difference between the percentage of an intermediate district's or

consortium's total allocation awarded to community-based providers

and 30% of its total allocation.

     (15) In order to assist intermediate districts and consortia

in complying with the requirement to contract with community-based

providers for at least 30% of their total allocation, the

department shall do all of the following:

     (a) Ensure that a great start resource center or the

department provides each intermediate district or consortium

receiving a grant under this section with the contact information

for each licensed child care center located in the service area of

the intermediate district or consortium by March 1 of each year.

     (b) Provide, or ensure that an organization with which the

department contracts provides, a community-based provider with a

validated great start to quality rating within 90 days of the

provider's having submitted a request and self-assessment.

     (c) Ensure that all intermediate district, district, community

college or university, Head Start grantee or delegate, private for-

profit, and private nonprofit providers are subject to a single

great start to quality rating system. The rating system shall

ensure that regulators process all prospective providers at the

same pace on a first-come, first-served basis and shall not allow 1

type of provider to receive a great start to quality rating ahead

of any other type of provider.

     (d) Not later than December 1 of each year, compile the

results of the information reported by each intermediate district

or consortium under subsection (10) (13) and report to the

legislature a list by intermediate district or consortium with the

number and percentage of each intermediate district's or

consortium's total allocation allocated to community-based

providers by provider type, including private for-profit, private

nonprofit, community college or university, Head Start grantee or

delegate, and district or intermediate district.

     (16) A recipient of funds under this section shall report to

the department in a form and manner prescribed by the department

the number of children participating in the program who meet the

income eligibility criteria under subsection (5)(b) and the total

number of children participating in the program. For children

participating in the program who meet the income eligibility

criteria specified under subsection (5)(b), a recipient shall also

report whether or not a parent is available to provide care based

on employment status. For the purposes of this subsection,

"employment status" shall be defined by the department of health

and human services in a manner consistent with maximizing the

amount of spending that may be claimed for temporary assistance for

needy families maintenance of effort purposes.

     (17) As used in this section:

     (a) "GSRP/Head Start blended program" means a part-day program

funded under this section and a Head Start program, which are

combined for a school-day program.

     (b) "Part-day program" means a program that operates at least

4 days per week, 30 weeks per year, for at least 3 hours of

teacher-child contact time per day but for fewer hours of teacher-

child contact time per day than a school-day program.

     (c) "School-day program" means a program that operates for at

least the same length of day as a district's first grade program

for a minimum of 4 days per week, 30 weeks per year. A classroom

that offers a school-day program must enroll all children for the

school day to be considered a school-day program.

     (18) An intermediate district or consortium of intermediate

districts receiving funds under this section shall establish and

charge tuition according to a sliding scale of tuition rates based

upon household income for children participating in an eligible

great start readiness program who live with families with a

household income that is more than 250% of the federal poverty

level to be used by all of its providers, as approved by the

department.

     (19) From the amount appropriated in subsection (1), there is

allocated an amount not to exceed $10,000,000.00 for reimbursement

of transportation costs for children attending great start

readiness programs funded under this section. To receive

reimbursement under this subsection, not later than November 1,

2017, a program funded under this section that provides

transportation shall submit to the intermediate district that is

the fiscal agent for the program a projected transportation budget.

The amount of the reimbursement for transportation under this

subsection shall be no more than the projected transportation

budget or $300.00 multiplied by the number of children funded for

the program under this section. If the amount allocated under this

subsection is insufficient to fully reimburse the transportation

costs for all programs that provide transportation and submit the

required information, the reimbursement shall be prorated in an

equal amount per child funded. Payments shall be made to the

intermediate district that is the fiscal agent for each program,

and the intermediate district shall then reimburse the program

provider for transportation costs as prescribed under this

subsection.

     (20) The department shall implement a process to review and

approve age-appropriate comprehensive classroom level quality

assessments for GSRP grantees that support the early childhood

standards of quality for prekindergarten children adopted by the

state board. The department shall complete the approval process and

make available to intermediate districts at least 2 approved

classroom level quality assessments no later than April 1, 2018.

     (21) An intermediate district that is a GSRP grantee may

approve the use of a supplemental curriculum that aligns with and

enhances the age-appropriate educational curriculum in the

classroom. If the department objects to the use of a supplemental

curriculum approved by an intermediate district, the superintendent

of public instruction shall establish a review committee

independent of the department. The review committee shall meet

within 60 days of the department registering its objection in

writing and provide a final determination on the validity of the

objection within 60 days of the review committee's first meeting.

     (22) A great start readiness program or a GSRP/Head Start

blended program funded under this section shall be permitted to

utilize AmeriCorps Pre-K Reading Corps members in classrooms

implementing research-based early literacy intervention strategies.

     Sec. 35a. (1) From the appropriations in section 11, there is

allocated for 2017-2018 for the purposes of this section an amount

not to exceed $26,900,000.00 from the state school aid fund and an

amount not to exceed $2,500,000.00 from the general fund.

     (2) A district that receives funds under subsection (5) may

spend up to 5% of those funds for professional development for

educators in a department-approved research-based training program

related to current state literacy standards for pupils in grades K

to 3. The professional development shall also include training in

the use of screening and diagnostic tools, progress monitoring, and

intervention methods used to address barriers to learning and

delays in learning that are diagnosed through the use of these

tools.

     (3) A district that receives funds under subsection (5) may

use up to 5% of those funds to administer department-approved

screening and diagnostic tools to monitor the development of early

literacy and early reading skills of pupils in grades K to 3 and to

support research-based professional development for educators in

administering screening and diagnostic tools and in data

interpretation of the results obtained through the use of those

tools for the purpose of implementing a multi-tiered system of

support to improve reading proficiency among pupils in grades K to

3. A department-approved screening and diagnostic tool administered

by a district using funding under this section must include all of

the following components: phonemic awareness, phonics, fluency, and

comprehension. Further, all of the following sub-skills must be

assessed within each of these components:

     (a) Phonemic awareness - segmentation, blending, and sound

manipulation (deletion and substitution).

     (b) Phonics - decoding (reading) and encoding (spelling).

     (c) Fluency - reading rate, accuracy, and expression.

     (d) Comprehension - making meaning of text.

     (4) From the allocations under subsection (1), there is

allocated an amount not to exceed $6,000,000.00 for 2017-2018 for

the purpose of providing early literacy coaches at intermediate

districts to assist teachers in developing and implementing

instructional strategies for pupils in grades K to 3 so that pupils

are reading at grade level by the end of grade 3. All of the

following apply to funding under this subsection:

     (a) The department shall develop an application process

consistent with the provisions of this subsection. An application

shall provide assurances that literacy coaches funded under this

subsection are knowledgeable about at least the following:

     (i) Current state literacy standards for pupils in grades K to

3.

     (ii) Implementing an instructional delivery model based on

frequent use of formative, screening, and diagnostic tools, known

as a multi-tiered system of support, to determine individual

progress for pupils in grades K to 3 so that pupils are reading at

grade level by the end of grade 3.

     (iii) The use of data from diagnostic tools to determine the

necessary additional supports and interventions needed by

individual pupils in grades K to 3 in order to be reading at grade

level.

     (b) From the allocation under this subsection, the department

shall award grants to intermediate districts for the support of

early literacy coaches. An intermediate district must provide

matching funds for at least 50% of the grant amount awarded to

support the cost of the literacy coach. The department shall

provide this funding in the following manner:

     (i) Each intermediate district shall be awarded grant funding

to support the cost of 1 early literacy coach in an equal amount

per early literacy coach, not to exceed $75,000.00.

     (ii) After distribution of the grant funding under

subparagraph (i), the department shall distribute the remainder of

grant funding for additional early literacy coaches in an amount

not to exceed $75,000.00 per early literacy coach. The number of

funded early literacy coaches for each intermediate district shall

be based on the percentage of the total statewide number of pupils

in grades K to 3 who meet the income eligibility standards for the

federal free and reduced-price lunch programs who are enrolled in

districts in the intermediate district. For each additional early

literacy coach funded under this subparagraph, the department shall

not make an award to an intermediate district under this

subparagraph in an amount that is less than the amount necessary to

pay 1/2 of the total cost of that additional early literacy coach.

     (5) From the allocations under subsection (1), there is

allocated an amount not to exceed $20,900,000.00 for 2017-2018 to

districts that provide additional instructional time to those

pupils in grades K to 3 who have been identified by using

department-approved screening and diagnostic tools as needing

additional supports and interventions in order to be reading at

grade level by the end of grade 3. Additional instructional time

may be provided before, during, and after regular school hours or

as part of a year-round balanced school calendar. All of the

following apply to funding under this subsection:

     (a) In order to be eligible to receive funding, a district

shall demonstrate to the satisfaction of the department that the

district has done all of the following:

     (i) Implemented a multi-tiered system of support instructional

delivery model that is an evidence-based model that uses data-

driven problem solving to integrate academic and behavioral

instruction and that uses intervention delivered to all pupils in

varying intensities based on pupil needs. The multi-tiered system

of supports must provide at least all of the following essential

elements:

     (A) Implements effective instruction for all learners.

     (B) Intervenes early.

     (C) Provides a multi-tiered model of instruction and

intervention that provides the following: a core curriculum and

classroom interventions available to all pupils that meet the needs

of most pupils; targeted group interventions; and intense

individual interventions.

     (D) Monitors pupil progress to inform instruction.

     (E) Uses data to make instructional decisions.

     (F) Uses assessments including universal screening,

diagnostics, and progress monitoring.

     (G) Engages families and the community.

     (H) Implements evidence-based, scientifically validated,

instruction and intervention.

     (I) Implements instruction and intervention practices with

fidelity.

     (J) Uses a collaborative problem-solving model.

     (ii) Used department-approved research-based diagnostic tools

to identify individual pupils in need of additional instructional

time.

     (iii) Used a reading instruction method that focuses on the 5

fundamental building blocks of reading: phonics, phonemic

awareness, fluency, vocabulary, and comprehension and content

knowledge.

     (iv) Provided teachers of pupils in grades K to 3 with

research-based professional development in diagnostic data

interpretation.

     (v) Complied with the requirements under section 1280f of the

revised school code, MCL 380.1280f.

     (b) Funding allocated under this subsection shall be

distributed to eligible districts by multiplying the number of

full-time-equivalent pupils in grade 1 in the district by $210.00.

     (c) If the funds allocated under this subsection are

insufficient to fully fund the payments under this subsection,

payments under this subsection shall be prorated on an equal per-

pupil basis based on grade 1 pupils.

     (6) From the general fund money allocated in subsection (1),

the department shall allocate the amount of $2,500,000.00 for 2017-

2018 to the Michigan Education Corps. All of the following apply to

funding under this subsection:

     (a) By August 1 of the current fiscal year, the Michigan

Education Corps shall provide a report concerning its use of the

funding to the senate and house appropriations subcommittees on

state school aid, the senate and house fiscal agencies, and the

senate and house caucus policy offices on outcomes and performance

measures of the Michigan Education Corps, including, but not

limited to, the degree to which the Michigan Education Corps's

replication of the Michigan Reading Corps program is demonstrating

sufficient efficacy and impact. The report must include data

pertaining to at least all of the following:

     (i) The current impact of the Michigan Reading Corps on this

state in terms of numbers of children and programs receiving

support. This portion of the report shall specify the number of

children tutored, including dosage and completion, and the

demographics of those children.

     (ii) Whether the assessments and interventions are implemented

with fidelity. This portion of the report shall include details on

the total number of assessments and interventions completed and the

range, median, mean, and standard deviation for all assessments.

     (iii) Whether the literacy improvement of children

participating in the Michigan Reading Corps is consistent with

expectations. This portion of the report shall detail at least all

of the following:

     (A) Growth rate by grade level, in comparison to targeted

growth rate.

     (B) Average linear growth rates.

     (C) Exit rates.

     (D) Percentage of children who exit who also meet or exceed

spring benchmarks.

     (iv) The impact of the Michigan Reading Corps on organizations

and stakeholders, including, but not limited to, school

administrators, internal coaches, and AmeriCorps members.

     (b) If the department determines that the Michigan Education

Corps has misused the funds allocated under this subsection, the

Michigan Education Corps shall reimburse this state for the amount

of state funding misused.

     (c) The department may not reserve any portion of the

allocation provided under this subsection for an evaluation of the

Michigan Education Corps, the Michigan Education Corps' funding, or

the Michigan Education Corps' programming. The department shall

award the entire $2,500,000.00 allocated under this subsection to

the Michigan Education Corps and shall not condition the awarding

of this funding on the implementation of an independent evaluation.

     Sec. 61c. (1) From the general fund appropriation in section

11, there is allocated for 2017-2018 an amount not to exceed

$9,600,000.00 $7,000,000.00 to career education planning districts

for the CTE skilled trades initiative under this section.described

in subsections (2) to (5).

     (2) To be eligible to receive funding under this section,

subsection (1), each CEPD shall apply in a form and manner

determined by the department. Funding to each CEPD shall be equal

to the quotient of the allocation under subsection (1) and the sum

of the number of career education planning districts applying for

funding under this section.subsection (1).

     (3) The funding allocated to each CEPD shall be used to update

equipment in current CTE programs that have been identified in the

highest 5 career cluster rankings in any of the 10 regional

strategic plans jointly approved by the Michigan talent investment

agency in the department of talent and economic development and the

department, for training on new equipment, for professional

development relating to computer science or coding, or for new and

emerging certified CTE programs to allow CEPD administrators to

provide programming in communities that will enhance economic

development. The funding for equipment should be used to support

and enhance community areas that have sustained job growth, and act

as a commitment to build a more qualified and skilled workforce. In

addition, each CEPD is encouraged to explore the option of leasing

equipment from local private industry to encourage the use of the

most advanced equipment.

     (4) The allocation of funds at the local level shall be

determined by CEPD administrators using data from the state,

region, and local sources to make well-informed decisions on

program equipment improvements. Grants awarded by CEPD

administrators for capital infrastructure shall be used to ensure

that CTE programs can deliver educational programs in high-wage,

high-skill, and high-demand occupations. Each CEPD shall continue

to ensure that program advisory boards make recommendations on

needed improvements for equipment that support job growth and job

skill development and retention for both the present and the

future.

     (5) Not later than September 15 of each fiscal year, each CEPD

receiving funding under this section subsection (1) shall annually

report to the department, the senate and house appropriations

subcommittees on state school aid, and the senate and house fiscal

agencies and legislature on equipment purchased under this section.

subsection (1). In addition, the report shall identify growth data

on program involvement, retention, and development of student

skills.

     (6) From the allocation In addition to the funds allocated

under subsection (1), from the general fund appropriation in

section 11, there is allocated for 2017-2018 an amount not to

exceed $300,000.00 $500,000.00 to districts for a competitive grant

to mechatronics programs that operated in 2016-2017 for updating

mechatronics program equipment.

     (7) In addition to the funds allocated under subsections (1)

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

is allocated for 2017-2018 an amount not to exceed $5,000,000.00

for grants to districts and intermediate districts or consortia of

districts and intermediate districts for the CTE equipment and

innovation competitive grant program described in subsections (8)

to (10).

     (8) To be eligible to receive a competitive grant under

subsection (7), an applicant shall apply in a form and manner

determined by the department. The amount of a grant awarded from

the allocation under subsection (7) shall be at least $100,000.00

but shall not exceed $1,000,000.00 and shall be used for the

purchase or lease of equipment from private industry partners and

for related capacity building activities. A grant application for a

grant awarded from the allocation under subsection (7) shall

include at least all of the following information:

     (a) A description of how the proposed capital infrastructure

initiative will provide increased career opportunities for students

and adult learners in high-wage, high-skill, and high-demand

occupations.

     (b) Demonstrated evidence of employer demand for the

initiative and related CTE training, including documentation of

industry involvement in the initiative that will allow for work-

based learning opportunities, apprenticeships, teacher externships,

or a combination of these.

     (c) A budget for the initiative, including demonstrated

commitment of local or regional partners to sustain the initiative

beyond the initial grant funding.

     (d) A description of how the initiative aligns with other CTE

and community college programs and how the equipment will be

utilized by initiative partners.

     (e) Other information as requested by the department and the

department of talent and economic development.

     (9) The department shall evaluate grant applications under

subsection (8) in collaboration with the department of talent and

economic development. A member of the governor's talent investment

board may serve in an advisory capacity in the evaluation process

as determined by the department of talent and economic development.

     (10) Not later than December 15 of each fiscal year, each

grant recipient receiving funding under subsection (7) shall

annually report to the department, the department of talent and

economic development, the house and senate appropriations

subcommittees on state school aid, the house and senate fiscal

agencies, and the state budget director on equipment purchased

under subsection (7) in the immediately preceding school year. The

report shall identify growth data on program involvement,

retention, and development of student and adult learner skills.

(11) (7) As used in this section: ,

     (a) "CEPD" means a career education planning district

described in this section.

     (b) "CTE" means career and technical education.

     Sec. 64d. (1) From the general fund appropriation under

section 11, there is allocated an amount not to exceed

$1,000,000.00 $2,300,000.00 for 2017-2018 for a competitive grant

to provide information technology education opportunities to

students attending schools operating grades K-12, career and

technical centers and career academies, and community colleges and

universities. It is the intent of the legislature that 2017-2018 is

the first of 3 years of funding for the competitive grant program.

Funds allocated under this section shall be used for instruction in

information technology skills and competencies that are essential

for the workplace and requested by employers and shall allow

participating students and faculties to secure broad-based

information technology certifications and, if applicable, college

credit.

     (2) The department shall select a provider using a competitive

request for proposals process. Proposals submitted under this

subsection shall include at least the following components:

     (a) Research- and skill-development-based and information

technology curriculum.

     (b) Online access to the curriculum.

     (c) Instructional software for classroom and student use.

     (d) A program that includes coding curriculum and material

that are aligned to the CS AP exam and grants a certificate upon

completion of the program.

     (e) Components for all grade levels on computational thinking

skills development using the latest gaming software.

     (f) A process for students to obtain certifications of skills

and competencies in a broad base of information technology-related

skill areas.

     (g) Professional development for faculty.

     (h) Implementation and program support, including, but not

limited to, integration with current curriculum standards.

     (i) Methods for students to earn college credit.

     (3) The department shall give priority to proposals by

providers that have previously demonstrated success in this state

in providing high-quality information technology education

opportunities to students.

     (4) The funds allocated under this section for 2017-2018 are a

work project appropriation, and any unexpended funds for 2017-2018

are to be carried forward into 2018-2019. The purpose of the work

project is to continue to provide information technology education

opportunities described in this section. The estimated completion

date of the work project is September 30, 2020.

     Sec. 67a. (1) From the general fund money appropriated in

section 11, there is allocated for 2017-2018 an amount not to

exceed $1,000,000.00 to expand an eligible web-based career

preparation and readiness platform to prosperity regions beyond

where the platform is currently being utilized.

     (2) In order to be eligible for funding under this section, a

career preparation and readiness platform shall meet all of the

following:

     (a) Has a partnership with intermediate districts, community

colleges, workforce development agencies, and community employers.

     (b) Assesses student skills, abilities, and preferences to

match them with careers of interest.

     (c) Allows students to explore careers with access to more

than 600 career profiles, including, but not limited to, career

descriptions, education and training requirements, and earning

information.

     (d) Connects with local companies through company profiles

that include, but are not limited to, description, location, career

opportunities, and work-based learning activities.

     (e) Allows students to experience careers firsthand by

searching for job shadowing, mock interviews, company tours,

company events, and internship opportunities offered by employers

in a student's area.

     (f) Provides students with step-by-step help to develop a job

search plan, write a resume and cover letter, and prepare for job

interviews.

     (g) Provides students with an understanding of the education

and training required for a particular career, a comparison of

school data and profiles, and access to college preparation,

scholarship, and financial aid information.

     (3) A grantee receiving funding under this section shall

comply with the requirements of section 19b.

(4) (3) Notwithstanding section 17b, payments under this

section shall be paid on a schedule determined by the department.

     Sec. 95b. (1) From the general fund appropriation under

section 11, there is allocated to the department an amount not to

exceed $2,500,000.00 for 2017-2018 for the department to adopt a

model value-added growth and projection analytics system and to

incorporate that model into its reporting requirements under the

every student succeeds act, Public Law 114-95. The adopted model

shall do at least all of the following:

     (a) Utilize existing assessments and any future assessments

that are suitable for measuring student growth.

     (b) Report student growth measures at the district, school,

teacher, and subgroup levels.

     (c) Recognize the growth of tested students, including those

who may have missing assessment data.

     (d) Include all available prior standardized assessment data

that meet inclusion criteria across grades, subjects, and state and

local assessments.

     (e) Allow student growth results to be disaggregated.

     (f) Provide individual student projections showing the

probability of a student reaching specific performance levels on

future assessments.

     (g) Demonstrate any prior success with this state's

assessments through the Michigan council of educator effectiveness

teacher evaluation pilot.

     (h) Demonstrate prior statewide implementation in at least 2

other states for at least 10 years.

     (i) Have a native roster verification system built into the

value-added reporting platform that has been implemented statewide

in at least 2 other states.

     (j) Have a "Help/Contact Us" ticketing system built into the

value-added reporting platform.

     (2) The department shall provide internet-based electronic

student growth and projection reporting based on the model adopted

under subsection (1) to educators at the school, district, and

state levels. The model shall include role-based permissions that

allow educators to access information about the performance of the

students within their immediate responsibility in accordance with

applicable privacy laws.

     (3) The model adopted under subsection (1) must not be a

mandatory part of teacher evaluation or educator pay-for-

performance systems.

     Sec. 99h. (1) From the state school aid fund appropriation in

section 11, there is allocated an amount not to exceed

$2,500,000.00 for 2017-2018 for competitive grants to districts,

and from the general fund appropriation in section 11, there is

allocated an amount not to exceed $300,000.00 for 2017-2018 for

competitive grants to nonpublic schools, that provide pupils in

grades K to 12 with expanded opportunities to improve mathematics,

science, and technology skills by participating in events hosted by

a science and technology development program known as FIRST (for

inspiration and recognition of science and technology) Robotics,

including JR FIRST Lego League, FIRST Lego League, FIRST tech

challenge, and FIRST Robotics competition. Programs funded under

this section are intended to increase the number of pupils

demonstrating proficiency in science and mathematics on the state

assessments and to increase the number of pupils who are college-

and career-ready upon high school graduation. Notwithstanding

section 17b, grant payments to districts and nonpublic schools

under this section shall be paid on a schedule determined by the

department. The department shall set maximum grant awards for each

different level of competition in a manner that both maximizes the

number of teams that will be able to receive funds and expands the

geographical distribution of teams.

     (2) A district or nonpublic school applying for a grant under

this section shall submit an application in a form and manner

determined by the department. To be eligible for a grant, a

district or nonpublic school shall demonstrate in its application

that the district or nonpublic school has established a partnership

for the purposes of the FIRST Robotics program with at least 1

sponsor, business entity, higher education institution, or

technical school, shall submit a spending plan, and shall pay at

least 25% of the cost of the FIRST Robotics program.

     (3) The department shall distribute the grant funding under

this section for the following purposes:

     (a) Grants to districts or nonpublic schools to pay for

stipends not to exceed $1,500.00 for 1 coach per team.

     (b) Grants to districts or nonpublic schools for event

registrations, materials, travel costs, and other expenses

associated with the preparation for and attendance at FIRST

Robotics events and competitions. Each grant recipient shall

provide a local match from other private or local funds for the

funds received under this subdivision equal to at least 50% of the

costs of participating in an event.

     (c) Grants to districts or nonpublic schools for awards to

teams that advance to the state and world championship

competitions. The department shall determine an equal amount per

team for those teams that advance to the state championship and a

second equal award amount to those teams that advance to the world

championship.

     (4) A nonpublic school that receives a grant under this

section may use the funds for either FIRST Robotics or Science

Olympiad programs.

     (5) To be eligible to receive funds under this section, a

nonpublic school must be a nonpublic school registered with the

department and must meet all applicable state reporting

requirements for nonpublic schools.

     Sec. 99r. (1) From the general fund appropriation under

section 11, there is allocated for 2016-2017 an amount not to

exceed $75,000.00, and there is allocated for 2017-2018 an amount

not to exceed $250,000.00, to support the creation of the MiSTEM

network.

     (2) From the general fund allocation under this section, there

is allocated for 2016-2017 an amount not to exceed $75,000.00 to

the department of technology, management, and budget to support the

functions of a transitional executive director and executive

assistant for the MiSTEM network. The department of technology,

management, and budget shall work with the Michigan Mathematics and

Science Centers Network and the MiSTEM council to hire the

transitional executive director and executive assistant. The

transitional executive director and executive assistant shall work

with the president and executive director of the Michigan

Mathematics and Science Centers Network and the chairperson and

vice-chairperson of the MiSTEM council. The transitional executive

director and executive assistant shall do all of the following:

     (a) Develop a plan for the creation of MiSTEM network regions

that does all of the following:

     (i) Creates a structured relationship between the MiSTEM

council, MiSTEM network executive director and executive assistant,

and MiSTEM network region staff that ensures services to all

regions and local communities in each region.

     (ii) Empowers the MiSTEM network regions in a manner that

creates a robust statewide STEM culture, empowers STEM teachers,

integrates business and education into the MiSTEM network, and

ensures high-quality and equitable distribution of STEM experiences

for pupils.

     (iii) Identifies region boundaries throughout the state and

identifies fiscal agents within those regions.

     (iv) Identifies MiSTEM state and regional goals and objectives

and processes by which goals and objectives shall be measured.

     (v) Includes processes by which the MiSTEM network regions

apply for MiSTEM grants, provide feedback on grant-funded

programming, share best practices, and create regional master

plans.

     (vi) Creates a marketing campaign, including, at least, an

online presence which includes dashboards of outcomes for the

MiSTEM network.

     (b) Form a committee for the purpose of identifying each

MiSTEM network region and selecting a fiscal agent and determining

staffing for that region. Fiscal agents shall be an intermediate

district within the region, a university within the region, or

another organization that served as fiscal agent within the

Michigan Mathematics and Science Centers Network. Agencies

interested in serving as the region's fiscal agent shall be

included on this committee. The committee shall also include

representatives of the general education leadership network and the

governor's talent investment board, in addition to the math and

science centers and MiSTEM council. The committee shall identify

necessary staffing levels and locations of staff and determine

processes by which the entire region will receive and share

services. All fiscal agents for the Michigan Mathematics and

Science Centers Network are required to maintain current levels of

effort for the MiSTEM network as for the Michigan Mathematics and

Science Centers Network.

     (c) Distribute Establish a system to distribute and monitor

MiSTEM grants during the creation of the MiSTEM network. The

monitoring of the grants shall include conducting reviews of

recipients and the experiences and feedback of pupils.

     (d) Report to the governor and the legislature on the

development of the MiSTEM network.

     (e) Submit the plan developed under subdivision (a) to the

governor and the legislature on or before December 1, 2017.

     (f) Hire all MiSTEM network staff between January 1, 2018 and

April 1, 2018. However, if a MiSTEM network will employ Michigan

Mathematics and Science Centers Network staff, those staff may be

hired after April 1, 2018.

     (3) From the general fund allocation under this section, there

is allocated for 2017-2018 an amount not to exceed $250,000.00 to

support a permanent executive director and an executive assistant

for the MiSTEM network. After the creation of the MiSTEM network

region, the transitional executive director funded under subsection

(2) may be appointed as the permanent executive director, or a new

permanent executive director may be hired. The permanent executive

director and executive assistant shall do all of the following:

     (a) Serve as a liaison among and between the department, the

department of technology, management, and budget, the MiSTEM

advisory council, and the regional MiSTEM centers in a manner that

creates a robust statewide STEM culture, that empowers STEM

teachers, that integrates business and education into the STEM

network, and that ensures high-quality STEM experiences for pupils.

     (b) Coordinate the implementation of a marketing campaign,

including, but not limited to, a website that includes dashboards

of outcomes, to build STEM awareness and communicate STEM needs and

opportunities to pupils, parents, educators, and the business

community.

     (c) Award and monitor MiSTEM state and federal grants to the

MiSTEM network regions and conduct reviews of grant recipients,

including, but not limited to, pupil experience and feedback.

     (d) Report to the governor, the legislature, and the MiSTEM

advisory council annually on the activities and performance of the

MiSTEM network regions.

     (e) Coordinate recurring discussions and work with regional

staff to ensure that a network or loop of feedback and best

practices are shared, including funding, programming, professional

learning opportunities, discussion of MiSTEM strategic vision, and

regional objectives.

     (f) Coordinate major grant application efforts with the MiSTEM

advisory council to assist regional staff with grant applications

on a local level. The MiSTEM advisory council shall leverage

private and nonprofit relationships to coordinate and align private

funds in addition to funds appropriated under this section.

     (g) Train state and regional staff in the STEMworks rating

system.

     (h) Hire all MiSTEM Network staff no later than July 1, 2018.

     Sec. 99t. (1) From the general fund appropriation under

section 11, there is allocated an amount not to exceed

$1,100,000.00 for 2017-2018 to purchase statewide access to an

online algebra tool that meets all of the following:

     (a) Provides students statewide with complete access to videos

aligned with state standards including study guides and workbooks

that are aligned with the videos.

     (b) Provides students statewide with access to a personalized

online algebra learning tool including adaptive diagnostics.

     (c) Provides students statewide with dynamic algebra practice

assessments that emulate the state assessment with immediate

feedback and help solving problems.

     (d) Provides students statewide with online access to algebra

help 24 hours a day and 7 days a week from study experts, teachers,

and peers on a moderated social networking platform.

     (e) Provides an online algebra professional development

network for teachers.

     (f) Is already provided under a statewide contract in at least

1 other state that has a population of at least 18,000,000 but not

more than 19,000,000 according to the most recent decennial census

and is offered in that state in partnership with a public

university.

     (2) The department shall purchase the online algebra tool that

was chosen under this section in 2016-2017.

     (3) A grantee receiving funding under this section shall

comply with the requirements of section 19b.

     Sec. 99u. (1) From the general fund appropriation under

section 11, there is allocated for 2017-2018 an amount not to

exceed $1,000,000.00 to purchase statewide access to an online

mathematics tool that meets all of the following:

     (a) Provides students statewide with complete access to

mathematics support aligned with state standards through a program

that has all of the following elements:

     (i) Student motivation.

     (ii) Valid and reliable assessments.

     (iii) Personalized learning pathways.

     (iv) Highly qualified, live teachers available all day and all

year.

     (v) Twenty-four-hour reporting.

     (vi) Content built for rigorous mathematics.

     (b) Has a record of improving student mathematics scores in at

least 5 other states.

     (2) A grantee that receives funding under this section shall

comply with the requirements of section 19b.

Sec. 102d. (1) From the funds appropriated in section 11,

there is allocated an amount not to exceed $1,500,000.00 for 2017-

2018 for reimbursements to districts, and intermediate districts,

and authorizing bodies of public school academies for the licensing

of school data analytical tools as described under this section.

The reimbursement is for districts, and intermediate districts, and

authorizing bodies of public school academies that choose to use a

school data analytical tool to assist the district, or intermediate

district, or authorizing body of a public school academy and that

enter into a licensing agreement for a school data analytical tool

with 1 of the vendors approved by the department of technology,

management, and budget under subsection (2). Funds allocated under

this section are intended to provide districts, and intermediate

districts, and authorizing bodies of public school academies with

financial forecasting and transparency reporting tools to help

improve the financial health of districts and to improve

communication with the public, resulting in increased fund balances

for districts and intermediate districts.

     (2) Not later than October 15, 2017, the department of

technology, management, and budget shall review vendors for school

data analytical tools and provide districts, and intermediate

districts, and authorizing bodies of public school academies with a

list of up to 2 approved vendors that districts, and intermediate

districts, and authorizing bodies of public school academies may

use to be eligible for a reimbursement paid under this section. In

addition, a vendor approved under this section for 2016-2017 is

considered to be approved for use by a district, or intermediate

district, or authorizing body of a public school academy and for

reimbursement for 2017-2018. An approved school data analytical

tool supplied by the vendor must meet at least all of the

following:

     (a) Analyzes financial data.

     (b) Analyzes academic data.

     (c) Provides early warning indicators of financial stress.

     (d) Has the capability to provide peer district comparisons of

both financial and academic data.

     (e) Has the capability to provide financial projections for at

least 3 subsequent fiscal years.

     (3) Funds allocated under this section shall be paid to

districts, and intermediate districts, and authorizing bodies of

public school academies as a reimbursement for already having a

licensing agreement or for entering into a licensing agreement not

later than December 1, 2017 with a vendor approved under subsection

(2) to implement a school data analytical tool. Reimbursement will

be prorated for the portion of the state fiscal year not covered by

the licensing agreement. However, a licensing agreement that takes

effect after October 1, 2017 and before December 1, 2017 will not

be prorated if the term of the agreement is at least 1 year.

Reimbursement under this section shall be made as follows:

     (a) All districts, and intermediate districts, and authorizing

bodies of public school academies seeking reimbursement shall

submit requests not later than December 1, 2017 indicating the cost

paid for the financial data analytical tool.

     (b) The department shall determine the sum of the funding

requests under subdivision (a) and, if there are sufficient funds,

shall pay 1/2 of the costs submitted under subdivision (a). If

there are insufficient funds to pay 1/2 of the costs submitted

under (a), then reimbursement shall be made on an equal percentage

basis.

     (c) Funds remaining after the calculation and payment under

subdivision (b) shall be distributed on an equal per-pupil basis,

with an intermediate district's pupils considered to be the sum of

the pupil memberships of the constituent districts for which the

intermediate district is purchasing the financial data analytical

tool, and with an authorizing body's pupils considered to be the

sum of the pupil memberships of the public school academies

authorized by the authorizing body for which the authorizing body

is purchasing the financial data analytical tool.

     (d) The reimbursement to a district, or intermediate district,

or authorizing body of a public school academy shall not be greater

than the amount paid for a data analytics application.

     (e) A district, or intermediate district, or authorizing body

of a public school academy shall not be reimbursed for the purchase

of more than 1 software application.

     (4) If an intermediate district purchases both a school data

analytical tool specifically for intermediate district finances and

a school data analytical tool for those constituent districts that

opt in, the intermediate district shall be reimbursed for both

purchases under this section.

     (5) If an intermediate district makes available to 1 or more

of its constituent districts a school data analytical tool funded

under this section, that constituent district shall not be

reimbursed under this section for the purchase of that school data

analytical tool if the constituent district has opted in for that

tool.

     (6) If an authorizing body of a public school academy makes

available to 1 or more public school academies a school data

analytical tool funded under this section, the public school

academy shall not be reimbursed under this section for the purchase

of a school data analytical tool if the public school academy opted

in for that tool.

(7) (6) Notwithstanding section 17b, payments under this

section shall be made on a schedule determined by the department.

     Sec. 104c. (1) In order to receive state aid under this

article, a district shall administer the state assessments

described in this section.

     (2) For the purposes of this section, the department shall

develop for use in the spring of 2015-2016 the Michigan student

test of educational progress (M-STEP) assessments in English

language arts and mathematics. These assessments shall be aligned

to state standards.

     (3) For the purposes of this section, the department shall

implement a summative assessment system that is proven to be valid

and reliable for administration to pupils as provided under this

subsection. The summative assessment system shall meet all of the

following requirements:

     (a) The summative assessment system shall measure student

proficiency on the current state standards, shall measure student

growth for consecutive grade levels in which students are assessed

in the same subject area in both grade levels, and shall be capable

of measuring individual student performance.

     (b) The summative assessments for English language arts and

mathematics shall be administered to all public school pupils in

grades 3 to 11, including those pupils as required by the federal

individuals with disabilities education act, Public Law 108-446,

and by title I of the federal every student succeeds act (ESSA),

Public Law 114-95.

     (c) The summative assessments for science shall be

administered to all public school pupils in at least grades 4 and

7, including those pupils as required by the federal individuals

with disabilities education act, Public Law 108-446, and by title I

of the federal every student succeeds act (ESSA), Public Law 114-

95.

     (d) The summative assessments for social studies shall be

administered to all public school pupils in at least grades 5 and

8, including those pupils as required by the federal individuals

with disabilities education act, Public Law 108-446, and by title I

of the federal every student succeeds act (ESSA), Public Law 114-

95.

     (e) The content of the summative assessments shall be aligned

to state standards.

     (f) The pool of questions for the summative assessments shall

be subject to a transparent review process for quality, bias, and

sensitive issues involving educator review and comment. The

department shall post samples from tests or retired tests featuring

questions from this pool for review by the public.

     (g) The summative assessment system shall ensure that

students, parents, and teachers are provided with reports that

convey individual student proficiency and growth on the assessment

and that convey individual student domain-level performance in each

subject area, including representative questions, and individual

student performance in meeting state standards.

     (h) The summative assessment system shall be capable of

providing, and the department shall ensure that students, parents,

teachers, administrators, and community members are provided with,

reports that convey aggregate student proficiency and growth data

by teacher, grade, school, and district.

     (i) The summative assessment system shall ensure the

capability of reporting the available data to support educator

evaluations.

     (j) The summative assessment system shall ensure that the

reports provided to districts containing individual student data

are available within 60 days after completion of the assessments.

     (k) The summative assessment system shall ensure that access

to individually identifiable student data meets all of the

following:

     (i) Is in compliance with 20 USC 1232g, commonly referred to

as the family educational rights and privacy act of 1974.

     (ii) Except as may be provided for in an agreement with a

vendor to provide assessment services, as necessary to support

educator evaluations pursuant to subdivision (i), or for research

or program evaluation purposes, is available only to the student;

to the student's parent or legal guardian; and to a school

administrator or teacher, to the extent that he or she has a

legitimate educational interest.

     (l) The summative assessment system shall ensure that the

assessments are pilot tested before statewide implementation.

     (m) The summative assessment system shall ensure that

assessments are designed so that the maximum total combined length

of time that schools are required to set aside for a pupil to

answer all test questions on all assessments that are part of the

system for the pupil's grade level does not exceed that maximum

total combined length of time for the previous statewide assessment

system or 9 hours, whichever is less. This subdivision does not

limit the amount of time a district may allow a pupil to complete a

test.

     (n) The total cost of executing the summative assessment

system statewide each year, including, but not limited to, the cost

of contracts for administration, scoring, and reporting, shall not

exceed an amount equal to 2 times the cost of executing the

previous statewide assessment after adjustment for inflation.

     (o) Beginning with the 2017-2018 school year, the summative

assessment system shall not require more than 3 hours in duration,

on average, for an individual pupil to complete the combined

administration of the math and English language arts portions of

the assessment for any 1 grade level.

     (4) In an effort to develop a cohesive state assessment

system, the department shall implement a request for information

process for a common formative assessment system that is fully

aligned to this state's content standards for English language arts

and mathematics. The department may use information compiled from a

request for proposal in 2016-2017 to satisfy this request.

     (5) Beginning in the 2015-2016 school year, the department

shall field test assessments in the fall and spring of each school

year to measure English language arts and mathematics in each of

grades K to 2 for full implementation when the assessments have

been successfully field tested. This full implementation shall

occur not later than the 2018-2019 school year. These assessments

are necessary to determine a pupil's proficiency level before grade

3.

     (6) Not later than October 1, 2017, the department shall issue

a request for proposals for a statewide summative assessment. The

statewide summative assessment shall meet all of the following:

     (a) Assesses all of grades 3 through 7 in math and English

language arts.

     (b) Is aligned with this state's content standards.

     (c) Generates a scaled score using the fewest number of

testing items necessary to sufficiently measure building level

achievement based on this state's content standards.

     (d) Is proven to be a valid and reliable measurement of

building level achievement.

     (e) Does not exceed 3 hours in duration on average for an

individual pupil to complete the combined administration of the

math and English language arts portions of the test for any 1 grade

level.

     (7) Not later than January 1, 2018, the department shall

approve 1 statewide summative assessment that was included in a

response to the request for proposals under subsection (6) or

develop the department's own assessment that meets the requirements

under subsection (6).

(6) (8) Not later than October November 1, 2017, the

department shall issue a request for proposals information for not

less than 3 benchmark assessments that each meet all of the

following:

     (a) Assesses all of grades 3 through 7 in math and English

language arts.

     (b) Is aligned with this state's content standards such that

items were written for this state's content standards.

     (c) Is computer adaptive above and below grade level.

     (d) Produces a pupil's results in not more than 48 hours from

the time the benchmark assessment is administered.

     (e) Is self-scoring.

     (f) Aligns to this state's content standards.

     (g) Measures the academic growth of pupils and provides an

estimate for adequate yearly growth.

     (h) Demonstrates validity and reliability as appropriate for a

computer adaptive assessment.

     (i) Is provided by a vendor that is willing to negotiate a

discounted state rate for pricing.

(7) (9) Not later than January March 1, 2018 and in

consultation with experts in the field of education and educational

assessment measurement, the department shall approve at least 2 3

benchmark assessments that were included in a response to the

request for proposals information under subsection (8) (6) and meet

the requirements described in subsection (8).(6).

     (10) The department is not precluded from approving a

statewide summative assessment under subsection (7) and a benchmark

assessment under subsection (9) that are provided by the same

vendor. The summative assessment shall not be a benchmark

assessment.

     (8) The department shall use the responses to the request for

information to create a benchmark assessment budget request for the

2018-2019 fiscal year.

(9) (11) This section does not prohibit districts from

adopting interim assessments.

(10) (12) As used in this section, "English language arts"

means that term as defined in section 104b.

     Sec. 104e. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed $250,000.00 for the

implementation of an assessment digital literacy preparation pilot

project for pupils enrolled in grades K to 8. The department shall

ensure that a pilot project funded under this subsection satisfies

all of the following:

     (a) Is available to districts in the 2017-2018 school year.

     (b) Focuses on ensuring pupils have the necessary skills

required for state online assessments by assessing pupil digital

literacy skill levels and providing teachers with a digital

curriculum targeted at areas of determined weakness.

     (c) Allows pupils to engage with the digital curriculum in an

independent or teacher-facilitated modality.

     (d) Includes training and professional development for

teachers.

     (e) Is implemented in at least 220 districts that operate

grades K to 8 and that represent a diverse geography and socio-

economic demographic.

     (2) Funding under subsection (1) shall be allocated to a

district that operates at least grades K to 8 and has a partnership

with a third party that is experienced in the assessment of digital

literacy and the preparation of digital literacy skills and has

demonstrable experience serving districts in this state and local

education agencies in other states. The district, along with its

third-party partner, shall provide a report to the house and senate

appropriations subcommittees on school aid and the house and senate

fiscal agencies on the efficacy and usefulness of the assessment

digital literacy preparation pilot project no later than September

30, 2018.

     (3) Notwithstanding section 17b, payments under subsection (1)

shall be made in a manner determined by the department.

     Sec. 107. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $27,000,000.00 for 2017-2018 for

adult education programs authorized under this section. Except as

otherwise provided under subsections (14), (15), and (19), funds

allocated under this section are restricted for adult education

programs as authorized under this section only. A recipient of

funds under this section shall not use those funds for any other

purpose.

     (2) To be eligible for funding under this section, an eligible

adult education provider shall employ certificated teachers and

qualified administrative staff and shall offer continuing education

opportunities for teachers to allow them to maintain certification.

     (3) To be eligible to be a participant funded under this

section, an individual shall be enrolled in an adult basic

education program, an adult secondary education program, an adult

English as a second language program, a high school equivalency

test preparation program, or a high school completion program, that

meets the requirements of this section, and for which instruction

is provided, and shall meet either of the following:

     (a) Has attained 20 years of age.

     (b) Has attained 18 years of age and the individual's

graduating class has graduated.

     (4) By April 1 of each fiscal year, the intermediate districts

within a prosperity region or subregion shall determine which

intermediate district will serve as the prosperity region's or

subregion's fiscal agent for the next fiscal year and shall notify

the department in a form and manner determined by the department.

The department shall approve or disapprove of the prosperity

region's or subregion's selected fiscal agent. From the funds

allocated under subsection (1), an amount as determined under this

subsection shall be allocated to each intermediate district serving

as a fiscal agent for adult education programs in each of the

prosperity regions or subregions identified by the department. An

intermediate district shall not use more than 5% of the funds

allocated under this subsection for administration costs for

serving as the fiscal agent. Beginning in 2014-2015, 67% of the

allocation provided to each intermediate district serving as a

fiscal agent shall be based on the proportion of total funding

formerly received by the adult education providers in that

prosperity region or subregion in 2013-2014, and 33% shall be

allocated based on the factors in subdivisions (a), (b), and (c).

For 2018-2019, 33% of the allocation provided to each intermediate

district serving as a fiscal agent shall be based upon the

proportion of total funding formerly received by the adult

education providers in that prosperity region in 2013-2014 and 67%

of the allocation shall be based upon the factors in subdivisions

(a), (b), and (c). Beginning in 2019-2020, 100% of the allocation

provided to each intermediate district serving as a fiscal agent

shall be based on the factors in subdivisions (a), (b), and (c).

The funding factors for this section are as follows:

     (a) Sixty percent of this portion of the funding shall be

distributed based upon the proportion of the state population of

individuals between the ages of 18 and 24 that are not high school

graduates that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American community survey (ACS) from the United States Census

Bureau.

     (b) Thirty-five percent of this portion of the funding shall

be distributed based upon the proportion of the state population of

individuals age 25 or older who are not high school graduates that

resides in each of the prosperity regions or subregions, as

reported by the most recent 5-year estimates from the American

community survey (ACS) from the United States Census Bureau.

     (c) Five percent of this portion of the funding shall be

distributed based upon the proportion of the state population of

individuals age 18 or older who lack basic English language

proficiency that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American community survey (ACS) from the United States Census

Bureau.

     (5) To be an eligible fiscal agent, an intermediate district

must agree to do the following in a form and manner determined by

the department:

     (a) Distribute funds to adult education programs in a

prosperity region or subregion as described in this section.

     (b) Collaborate with the talent district career council, which

is an advisory council of the workforce development boards located

in the prosperity region or subregion, or its successor, to develop

a regional strategy that aligns adult education programs and

services into an efficient and effective delivery system for adult

education learners, with special consideration for providing

contextualized learning and career pathways and addressing barriers

to education and employment.

     (c) Collaborate with the talent district career council, which

is an advisory council of the workforce development boards located

in the prosperity region or subregion, or its successor, to create

a local process and criteria that will identify eligible adult

education providers to receive funds allocated under this section

based on location, demand for services, past performance, quality

indicators as identified by the department, and cost to provide

instructional services. The fiscal agent shall determine all local

processes, criteria, and provider determinations. However, the

local processes, criteria, and provider services must be approved

by the department before funds may be distributed to the fiscal

agent.

     (d) Provide oversight to its adult education providers

throughout the program year to ensure compliance with the

requirements of this section.

     (e) Report adult education program and participant data and

information as prescribed by the department.

     (6) An adult basic education program, an adult secondary

education program, or an adult English as a second language program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

     (a) The program enrolls adults who are determined by a

department-approved assessment, in a form and manner prescribed by

the department, to be below twelfth grade level in reading or

mathematics, or both, or to lack basic English proficiency.

     (b) The program tests individuals for eligibility under

subdivision (a) before enrollment and upon completion of the

program in compliance with the state-approved assessment policy.

     (c) A participant in an adult basic education program is

eligible for reimbursement until 1 of the following occurs:

     (i) The participant's reading and mathematics proficiency are

assessed at or above the ninth grade level.

     (ii) The participant fails to show progress on 2 successive

assessments after having completed at least 450 hours of

instruction.

     (d) A participant in an adult secondary education program is

eligible for reimbursement until 1 of the following occurs:

     (i) The participant's reading and mathematics proficiency are

assessed above the twelfth grade level.

     (ii) The participant fails to show progress on 2 successive

assessments after having at least 450 hours of instruction.

     (e) A funding recipient enrolling a participant in an English

as a second language program is eligible for funding according to

subsection (9) until the participant meets 1 of the following:

     (i) The participant is assessed as having attained basic

English proficiency as determined by a department-approved

assessment.

     (ii) The participant fails to show progress on 2 successive

department-approved assessments after having completed at least 450

hours of instruction. The department shall provide information to a

funding recipient regarding appropriate assessment instruments for

this program.

     (7) A high school equivalency test preparation program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

     (a) The program enrolls adults who do not have a high school

diploma or a high school equivalency certificate.

     (b) The program shall administer a pre-test approved by the

department before enrolling an individual to determine the

individual's literacy levels, shall administer a high school

equivalency practice test to determine the individual's potential

for success on the high school equivalency test, and shall

administer a post-test upon completion of the program in compliance

with the state-approved assessment policy.

     (c) A funding recipient shall receive funding according to

subsection (9) for a participant, and a participant may be enrolled

in the program until 1 of the following occurs:

     (i) The participant achieves a high school equivalency

certificate.

     (ii) The participant fails to show progress on 2 successive

department-approved assessments used to determine readiness to take

a high school equivalency test after having completed at least 450

hours of instruction.

     (8) A high school completion program operated on a year-round

or school year basis may be funded under this section, subject to

all of the following:

     (a) The program enrolls adults who do not have a high school

diploma.

     (b) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the state-approved assessment policy.

     (c) A funding recipient shall receive funding according to

subsection (9) for a participant in a course offered under this

subsection until 1 of the following occurs:

     (i) The participant passes the course and earns a high school

diploma.

     (ii) The participant fails to earn credit in 2 successive

semesters or terms in which the participant is enrolled after

having completed at least 900 hours of instruction.

     (9) A funding recipient shall receive payments under this

section in accordance with all of the following:

     (a) Statewide allocation criteria, including 3-year average

enrollments, census data, and local needs.

     (b) Participant completion of the adult basic education

objectives by achieving an educational gain as determined by the

national reporting system levels; for achieving basic English

proficiency, as determined by the department; for achieving a high

school equivalency certificate or passage of 1 or more individual

high school equivalency tests; for attainment of a high school

diploma or passage of a course required for a participant to attain

a high school diploma; for enrollment in a postsecondary

institution, or for entry into or retention of employment, as

applicable.

     (c) Participant completion of core indicators as identified in

the innovation and opportunity act.

     (d) Allowable expenditures.

     (10) A person who is not eligible to be a participant funded

under this section may receive adult education services upon the

payment of tuition. In addition, a person who is not eligible to be

served in a program under this section due to the program

limitations specified in subsection (6), (7), or (8) may continue

to receive adult education services in that program upon the

payment of tuition. The tuition level shall be determined by the

local or intermediate district conducting the program.

     (11) An individual who is an inmate in a state correctional

facility shall not be counted as a participant under this section.

     (12) A funding recipient shall not commingle money received

under this section or from another source for adult education

purposes with any other funds and shall establish a separate ledger

account for funds received under this section. This subsection does

not prohibit a district from using general funds of the district to

support an adult education or community education program.

     (13) A funding recipient receiving funds under this section

may establish a sliding scale of tuition rates based upon a

participant's family income. A funding recipient may charge a

participant tuition to receive adult education services under this

section from that sliding scale of tuition rates on a uniform

basis. The amount of tuition charged per participant shall not

exceed the actual operating cost per participant minus any funds

received under this section per participant. A funding recipient

may not charge a participant tuition under this section if the

participant's income is at or below 200% of the federal poverty

guidelines published by the United States Department of Health and

Human Services.

     (14) In order to receive funds under this section, a funding

recipient shall furnish to the department, in a form and manner

determined by the department, all information needed to administer

this program and meet federal reporting requirements; shall allow

the department or the department's designee to review all records

related to the program for which it receives funds; and shall

reimburse the state for all disallowances found in the review, as

determined by the department. In addition, a funding recipient

shall agree to pay to a career and technical education program

under section 61a the amount of funding received under this section

in the proportion of career and technical education coursework used

to satisfy adult basic education programming, as billed to the

funding recipient by programs operating under section 61a.

     (15) From the amount appropriated in subsection (1), an amount

not to exceed $500,000.00 shall be allocated for 2017-2018 to not

more than 1 pilot program that is located in a prosperity region

with 2 or more subregions and that connects adult education

participants directly with employers by linking adult education,

career and technical skills, and workforce development. To be

eligible for funding under this subsection, a pilot program shall

provide a collaboration linking adult education programs within the

county, the area career/technical center, and local employers, and

shall meet the additional criteria in subsections (16) and (17).

Funding under this subsection for 2017-2018 is for the third of 3

years of funding.

     (16) A pilot program funded under subsection (15) shall

require adult education staff to work with Michigan works! agency

to identify a cohort of participants who are most prepared to

successfully enter the workforce. Participants identified under

this subsection shall be dually enrolled in adult education

programming and at least 1 technical course at the area

career/technical center.

     (17) A pilot program funded under subsection (15) shall have

on staff an adult education navigator who will serve as a

caseworker for each participant identified under subsection (16).

The navigator shall work with adult education staff and potential

employers to design an educational program best suited to the

personal and employment needs of the participant, and shall work

with human service agencies or other entities to address any

barrier in the way of participant access.

     (18) Not later than December 1, 2018, the pilot program funded

under subsection (15) shall provide to the senate and house

appropriations subcommittees on school aid, to the senate and house

fiscal agencies, and to the state budget director a report

detailing number of participants, graduation rates, and a measure

of transitioning to employment.

     (19) From the amount appropriated in subsection (1), an amount

not to exceed $2,000,000.00 shall be allocated for 2017-2018 for

grants to not more than 5 pilot programs that are additional to the

pilot program funded under subsection (15) to connect adult

education participants with employers as provided under this

subsection. The grant to each eligible pilot program shall be up to

$400,000.00. To receive funding under this subsection, an eligible

pilot program shall satisfy all of the following:

     (a) Meets 1 of the following:

     (i) Is located in prosperity region 1c.

     (ii) Is located in prosperity region 2 and borders prosperity

region 4.

     (iii) Is located in prosperity region 4a and borders

prosperity region 5.

     (iv) Is located in prosperity region 5 and borders Lake Huron.

(v) Is located in prosperity region 9 and borders a

neighboring state.

     (b) Begins operations at the start of the 2017-2018 school

year.

     (c) Replicates the pilot program funded under subsection (15).

     (d) Meets the requirements under subsections (15), (16), and

(17) for a pilot program funded under subsection (15).

     (20) Not later than December 1, 2018, a pilot program funded

under subsection (19) shall provide a report to the senate and

house appropriations subcommittees on school aid, to the senate and

house fiscal agencies, and to the state budget director identifying

the number of participants, graduation rates, and a measure of

transition to employment.

     (21) The department shall approve at least 3 high school

equivalency tests and determine whether a high school equivalency

certificate meets the requisite standards for high school

equivalency in this state.

     (22) As used in this section:

     (a) "Career pathway" means a combination of rigorous and high-

quality education, training, and other services that comply with

all of the following:

     (i) Aligns with the skill needs of industries in the economy

of this state or in the regional economy involved.

     (ii) Prepares an individual to be successful in any of a full

range of secondary or postsecondary education options, including

apprenticeships registered under the act of August 16, 1937

(commonly known as the "national apprenticeship act"), 29 USC 50 et

seq.

     (iii) Includes counseling to support an individual in

achieving the individual's education and career goals.

     (iv) Includes, as appropriate, education offered concurrently

with and in the same context as workforce preparation activities

and training for a specific occupation or occupational cluster.

     (v) Organizes education, training, and other services to meet

the particular needs of an individual in a manner that accelerates

the educational and career advancement of the individual to the

extent practicable.

     (vi) Enables an individual to attain a secondary school

diploma or its recognized equivalent, and at least 1 recognized

postsecondary credential.

     (vii) Helps an individual enter or advance within a specific

occupation or occupational cluster.

     (b) "Department" means the department of talent and economic

development.

     (c) "Eligible adult education provider" means a district,

intermediate district, a consortium of districts, a consortium of

intermediate districts, or a consortium of districts and

intermediate districts that is identified as part of the local

process described in subsection (5)(c) and approved by the

department.

     Sec. 147a. (1) From the appropriation in section 11, there is

allocated for 2017-2018 an amount not to exceed $100,000,000.00 for

payments to participating districts. A participating district that

receives money under this subsection shall use that money solely

for the purpose of offsetting a portion of the retirement

contributions owed by the district for the fiscal year in which it

is received. The amount allocated to each participating district

under this subsection shall be based on each participating

district's percentage of the total statewide payroll for all

participating districts for the immediately preceding fiscal year.

As used in this subsection, "participating district" means a

district that is a reporting unit of the Michigan public school

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437, and

that reports employees to the Michigan public school employees'

retirement system for the applicable fiscal year.

     (2) In addition to the allocation under subsection (1), from

the state school aid fund money appropriated under section 11,

there is allocated an amount not to exceed $48,940,000.00 for 2017-

2018 for payments to participating entities districts and

intermediate districts and from the general fund money appropriated

under section 11, there is allocated an amount not to exceed

$29,000.00 for 2017-2018 for payments to participating district

libraries. The amount allocated to each participating entity under

this subsection shall be based on each participating entity's

percentage of the total statewide payroll for that type of

participating entity for the immediately preceding fiscal year. A

participating entity that receives money under this subsection

shall use that money solely for the purpose of offsetting a portion

of the normal cost contribution rate. As used in this subsection:

     (a) "District library" means a district library established

under the district library establishment act, 1989 PA 24, MCL

397.171 to 397.196.

     (b) "Participating entity" means a district, intermediate

district, or district library that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1437, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

     Sec. 166b. (1) This act does not prohibit a parent or legal

guardian of a minor who is enrolled in any of grades kindergarten

to 12 in a nonpublic school or who is being home-schooled from also

enrolling the minor in a district, public school academy, or

intermediate district in any curricular offering that is provided

by the district, public school academy, or intermediate district at

a public school site and is available to pupils in the minor's

grade level or age group, subject to compliance with the same

requirements that apply to a full-time pupil's participation in the

offering. However, state school aid shall be provided under this

act for a minor enrolled as described in this subsection only for

curricular offerings that are available to full-time pupils in the

minor's grade level or age group.

     (2) This act does not prohibit a parent or legal guardian of a

minor who is enrolled in any of grades kindergarten to 12 in a

nonpublic school or who resides within the district and is being

home-schooled from also enrolling the minor in the district in a

curricular offering being provided by the district at the nonpublic

school site. However, state school aid shall be provided under this

act for a minor enrolled as described in this subsection only if

all of the following apply:

     (a) Either of the following:

     (i) The nonpublic school site is located, or the nonpublic

students are educated, within the geographic boundaries of the

district.

     (ii) If the nonpublic school has submitted a written request

to the district in which the nonpublic school is located for the

district to provide certain instruction under this subsection for a

school year and the district does not agree to provide some or all

of that instruction by May 1 immediately preceding that school year

or, if the request is submitted after March 1 immediately preceding

that school year, within 60 days after the nonpublic school submits

the request, the instruction is instead provided by an eligible

other district. This subparagraph does not require a nonpublic

school to submit more than 1 request to the district in which the

nonpublic school is located for that district to provide

instruction under this subsection, and does not require a nonpublic

school to submit an additional request to the district in which the

nonpublic school is located for that district to provide additional

instruction under this subsection beyond the instruction requested

in the original request, before having the instruction provided by

an eligible other district. A public school academy that is located

in the district in which the nonpublic school is located or in an

eligible other district also may provide instruction under this

subparagraph under the same conditions as an eligible other

district. As used in this subparagraph, "eligible other district"

means a district that is located in the same intermediate district

as the district in which the nonpublic school is located or is

located in an intermediate district that is contiguous to that

intermediate district.

     (b) The nonpublic school is registered with the department as

a nonpublic school and meets all state reporting requirements for

nonpublic schools.

     (c) The instruction is provided directly by a certified

teacher at the district or public school academy or at an

intermediate district.

     (d) The curricular offering is also available to full-time

pupils in the minor's grade level or age group in the district or

public school academy at a public school site.

     (e) The curricular offering is restricted to nonessential

elective courses for pupils in grades kindergarten to 12.

     (3) A nonessential course in grades kindergarten 1 to 8 is a

course other than a mathematics, science, social studies, and

English language arts course required by the district for grade

progression. Nonessential courses in grades 9 to 12 are those other

than algebra 1, algebra 2, English 9-12, geometry, biology,

chemistry, physics, economics, geography, American history, world

history, the Constitution, government, and civics, or courses that

fulfill the same credit requirement as these courses. Nonessential

elective courses include courses offered by the local district for

high school credit that are also capable of generating

postsecondary credit, including, at least, advanced placement and

international baccalaureate courses. College level courses taken by

high school students for college credit are nonessential courses.

Remedial courses for any grade in the above-listed essential

courses are considered essential. Kindergarten is considered

nonessential.

     (4) Subject to section 6(4)(ii), a minor enrolled as described

in this section is a part-time pupil for purposes of state school

aid under this act.

     (5) A district that receives a written request to provide

instruction under subsection (2) shall reply to the request in

writing by May 1 immediately preceding the applicable school year

or, if the request is made after March 1 immediately preceding that

school year, within 60 days after the nonpublic school submits the

request. The written reply shall specify whether the district

agrees to provide or does not agree to provide the instruction for

each portion of instruction included in the request.

     Enacting section 1. In accordance with section 30 of article

IX of the state constitution of 1963, total state spending from

state sources on state school aid under article I of the state

school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as

amended by 2017 PA 108 and this amendatory act for fiscal year

2017-2018 is estimated at $12,857,370,400.00 and state

appropriations for school aid to be paid to local units of

government for fiscal year 2017-2018 are estimated at

$12,679,972,800.00.

     Enacting section 2. This amendatory act takes effect October

1, 2017.