Substitute For
SENATE BILL NO. 944
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 503c, 523c, and 553c (MCL 380.503c, 380.523c, and 380.553c), as added by 2011 PA 277, and by adding section 1311c.
the people of the state of michigan enact:
Sec. 503c. (1) Beginning with management agreements described in this section that are entered into or renewed after the effective date of this section, if If the board of directors of a public school academy enters into or renews a management agreement with an educational management organization to carry out the operations of the public school academy, both of the following apply:
(a) The management agreement shall require must include a requirement that the educational management organization to provide to the board of directors at least annually all of the same information that a school district is required to disclose under section 18(2) of the state school aid act of 1979, MCL 388.1618, for the most recent school fiscal year for which that information is available.
(b) Within 30 days after receiving the information under subdivision (a), the board of directors shall make all of the information it receives under subdivision (a) available through a link on the public school academy's website homepage, in a form and manner prescribed by the department.
(2) In addition to the requirements under subsection (1), beginning with management agreements described in this section that are entered into or renewed after the effective date of the amendatory act that added this sentence, if the board of directors of a public school academy enters into or renews a management agreement with an educational management organization, all of the following apply:
(a) The management agreement must include a requirement that the educational management organization provide to the board of directors, at least annually, financial statements for the educational management organization for the immediately preceding fiscal year that disclose the specific financial expenditures of the money received by the educational management organization under the management agreement, including expenditures made as a result of subcontracts. The financial statements must account for all funds retained as compensation by the educational management organization. Compensation under this subdivision is the difference between the sum of all fees, commissions, payments, and charges assessed to the public school academy by the educational management organization for the operation and management of the public school academy during the educational management organization's fiscal year and the amount actually expended by the educational management organization for the operation and management of the public school academy during the educational management organization's fiscal year.
(b) The management agreement must include a requirement that the educational management organization provide to the board of directors, for each employee, officer, or board member of the educational management organization who is involved in the day-to-day operations and staffing at the public school academy, including, but not limited to, the public school academy's leadership team and teachers, whose compensation exceeds $100,000.00 per year, a list providing a description and cost of each fringe benefit that is included in the individual's compensation package.
(c) Within 30 days after receiving the information under subdivisions (a) and (b), the board of directors shall make all of the information it receives under subdivisions (a) and (b) and the management agreement available through a link on the public school academy's website homepage, in a form and manner prescribed by the department.
(3) (2) As used in this section:
(a) "Educational management organization" means an entity that enters into a management agreement with a public school academy.
(b) "Entity" means a partnership, nonprofit or business corporation, or any other association, corporation, trust, or other legal entity.
(c) "Management agreement" means an agreement to provide comprehensive educational, administrative, management, or instructional services or staff to a public school academy.
(d) "School fiscal year" means the period that begins July 1 and ends June 30.
Sec. 523c. (1) Beginning with management agreements described in this section that are entered into or renewed after the effective date of this section, if If the board of directors of an urban high school academy enters into or renews a management agreement with an educational management organization to carry out the operations of the urban high school academy, both of the following apply:
(a) The management agreement shall require must include a requirement that the educational management organization to provide to the board of directors at least annually all of the same information that a school district is required to disclose under section 18(2) of the state school aid act of 1979, MCL 388.1618, for the most recent school fiscal year for which that information is available.
(b) Within 30 days after receiving the information under subdivision (a), the board of directors shall make all of the information it receives under subdivision (a) available through a link on the urban high school academy's website homepage, in a form and manner prescribed by the department.
(2) In addition to the requirements under subsection (1), beginning with management agreements described in this section that are entered into or renewed after the effective date of the amendatory act that added this sentence, if the board of directors of an urban high school academy enters into or renews a management agreement with an educational management organization, all of the following apply:
(a) The management agreement must include a requirement that the educational management organization provide to the board of directors, at least annually, financial statements for the educational management organization for the immediately preceding fiscal year that disclose the specific financial expenditures of the money received by the educational management organization under the management agreement, including expenditures made as a result of subcontracts. The financial statements must account for all funds retained as compensation by the educational management organization. Compensation under this subdivision is the difference between the sum of all fees, commissions, payments, and charges assessed to the urban high school academy by the educational management organization for the operation and management of the urban high school academy during the educational management organization's fiscal year and the amount actually expended by the educational management organization for the operation and management of the urban high school academy during the educational management organization's fiscal year.
(b) The management agreement must include a requirement that the educational management organization provide to the board of directors, for each employee, officer, or board member of the educational management organization who is involved in the day-to-day operations and staffing at the urban high school academy, including, but not limited to, the urban high school academy's leadership team and teachers, whose compensation exceeds $100,000.00 per year, a list providing a description and cost of each fringe benefit that is included in the individual's compensation package.
(c) Within 30 days after receiving the information under subdivisions (a) and (b), the board of directors shall make all of the information it receives under subdivisions (a) and (b) and the management agreement available through a link on the urban high school academy's website homepage, in a form and manner prescribed by the department.
(3) (2) As used in this section:
(a) "Educational management organization" means an entity that enters into a management agreement with an urban high school academy.
(b) "Entity" means a partnership, nonprofit or business corporation, or any other association, corporation, trust, or other legal entity.
(c) "Management agreement" means an agreement to provide comprehensive educational, administrative, management, or instructional services or staff to an urban high school academy.
(d) "School fiscal year" means the period that begins July 1 and ends June 30.
Sec. 553c. (1) Beginning with management agreements described in this section that are entered into or renewed after the effective date of this section, if If the board of directors of a school of excellence enters into or renews a management agreement with an educational management organization to carry out the operations of the school of excellence, both of the following apply:
(a) The management agreement shall require must include a requirement that the educational management organization to provide to the board of directors at least annually all the same information that a school district is required to disclose under section 18(2) of the state school aid act of 1979, MCL 388.1618, for the most recent school fiscal year for which that information is available.
(b) Within 30 days after receiving the information under subdivision (a), the board of directors shall make all of the information it receives under subdivision (a) available through a link on the school of excellence's website homepage, in a form and manner prescribed by the department.
(2) In addition to the requirements under subsection (1), beginning with management agreements described in this section that are entered into or renewed after the effective date of the amendatory act that added this sentence, if the board of directors of a school of excellence enters into or renews a management agreement with an educational management organization, all of the following apply:
(a) The management agreement must include a requirement that the educational management organization provide to the board of directors, at least annually, financial statements for the educational management organization for the immediately preceding fiscal year that disclose the specific financial expenditures of the money received by the educational management organization under the management agreement, including expenditures made as a result of subcontracts. The financial statements must account for all funds retained as compensation by the educational management organization. Compensation under this subdivision is the difference between the sum of all fees, commissions, payments, and charges assessed to the school of excellence by the educational management organization for the operation and management of the school of excellence during the educational management organization's fiscal year and the amount actually expended by the educational management organization for the operation and management of the school of excellence during the educational management organization's fiscal year.
(b) The management agreement must include a requirement that the educational management organization provide to the board of directors, for each employee, officer, or board member of the educational management organization who is involved in the day-to-day operations and staffing at the school of excellence, including, but not limited to, the school of excellence's leadership team and teachers, whose compensation exceeds $100,000.00 per year, a list providing a description and cost of each fringe benefit that is included in the individual's compensation package.
(c) Within 30 days after receiving the information under subdivisions (a) and (b), the board of directors shall make all of the information it receives under subdivisions (a) and (b) and the management agreement available through a link on the school of excellence's website homepage, in a form and manner prescribed by the department.
(3) (2) As used in this section:
(a) "Educational management organization" means an entity that enters into a management agreement with a school of excellence.
(b) "Entity" means a partnership, nonprofit or business corporation, or any other association, corporation, trust, or other legal entity.
(c) "Management agreement" means an agreement to provide comprehensive educational, administrative, management, or instructional services or staff to a school of excellence.
(d) "School fiscal year" means the period that begins July 1 and ends June 30.
Sec. 1311c. (1) Beginning with management agreements that are entered into or renewed after the effective date of the amendatory act that added this sentence, if the board of directors of a strict discipline academy enters into or renews a management agreement with an educational management organization, all of the following apply:
(a) The management agreement must include a requirement that the educational management organization provide to the board of directors at least annually all the same information that a school district is required to disclose under section 18(2) of the state school aid act of 1979, MCL 388.1618, for the most recent school fiscal year for which that information is available.
(b) The management agreement must include a requirement that the educational management organization provide to the board of directors, at least annually, financial statements for the educational management organization for the immediately preceding fiscal year that disclose the specific financial expenditures of the money received by the educational management organization under the management agreement, including expenditures made as a result of subcontracts. The financial statements must account for all funds retained as compensation by the educational management organization. Compensation under this subdivision is the difference between the sum of all fees, commissions, payments, and charges assessed to the strict discipline academy by the educational management organization for the operation and management of the strict discipline academy during the educational management organization's fiscal year and the amount actually expended by the educational management organization for the operation and management of the strict discipline academy during the educational management organization's fiscal year.
(c) The management agreement must include a requirement that the educational management organization provide to the board of directors, for each employee, officer, or board member of the educational management organization who is involved in the day-to-day operations and staffing at the strict discipline academy, including, but not limited to, the strict discipline academy's leadership team and teachers, whose compensation exceeds $100,000.00 per year, a list providing a description and cost of each fringe benefit that is included in the individual's compensation package.
(d) Within 30 days after receiving the information under subdivisions (a), (b), and (c), the board of directors shall make all of the information it receives under subdivisions (a), (b), and (c) and the management agreement available through a link on the strict discipline academy's website homepage, in a form and manner prescribed by the department.
(2) As used in this section:
(a) "Educational management organization" means an entity that enters into a management agreement with a strict discipline academy.
(b) "Entity" means a partnership, nonprofit or business corporation, or any other association, corporation, trust, or other legal entity.
(c) "Management agreement" means an agreement to provide comprehensive educational, administrative, management, or instructional services or staff to a strict discipline academy.
(d) "School fiscal year" means the period that begins July 1 and ends June 30.
Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.