HB-4148,As Passed House,Mar 20, 2003                                        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           HOUSE BILL NO. 4148                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1976 PA 451, entitled                                             

                                                                                

    "The revised school code,"                                                  

                                                                                

    by amending sections 501, 502, 503, 504, 504a, and 507 (MCL                 

                                                                                

    380.501, 380.502, 380.503, 380.504, 380.504a, and 380.507),                 

                                                                                

    sections 501, 502, 503, 504a, and 507 as amended by 1995 PA 289             

                                                                                

    and section 504 as amended by 1994 PA 416, and by adding sections           

                                                                                

    503b and 1320.                                                              

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 501.  (1) A public school academy is a public school                   

                                                                                

2   under section 2 of article VIII of the state constitution of                

                                                                                

3   1963, is a school district for the purposes of section 11 of                

                                                                                

4   article IX of the state constitution of 1963 and for the purposes           

                                                                                

5   of section 1225 and section 1351a, and is subject to the                    

                                                                                

6   leadership and general supervision of the state board over all              

                                                                                

7   public education under section 3 of article VIII of the state               

                                                                                


                                                                                

1   constitution of 1963.  A public school academy is a body                    

                                                                                

2   corporate and is a governmental agency.  The powers granted to a            

                                                                                

3   public school academy under this part constitute the performance            

                                                                                

4   of essential public purposes and governmental functions of this             

                                                                                

5   state.                                                                      

                                                                                

6       (2) As used in this part:                                                   

                                                                                

7       (a) "Authorizing body" means any of the following governing                 

                                                                                

8   boards that  issues  issue a contract as provided in this part:             

                                                                                

9                                                                                (i) The board of a school district that operates grades K to                        

                                                                                

10  12.                                                                         

                                                                                

11      (ii) An intermediate school board.                                           

                                                                                

12      (iii) The board of a community college.                                      

                                                                                

13      (iv) The governing board of  a state public university  an                   

                                                                                

14  institution of higher education with statewide jurisdiction.                

                                                                                

15      (b) "Certificated teacher" means an individual who holds a                  

                                                                                

16  valid teaching certificate issued by the  state board                       

                                                                                

17  superintendent of public instruction under section 1531.                    

                                                                                

18      (c) "Community college" means a community college organized                 

                                                                                

19  under the community college act of 1966,  Act No. 331 of the                

                                                                                

20  Public Acts of 1966, being sections 389.1 to 389.195 of the                 

                                                                                

21  Michigan Compiled Laws,  1966 PA 331, MCL 389.1 to 389.195, or a            

                                                                                

22  federal tribally controlled community college that is recognized            

                                                                                

23  under the tribally controlled community college assistance act of           

                                                                                

24  1978, Public Law 95-471, 92 Stat. 1325, and is determined by the            

                                                                                

25  department to meet the requirements for accreditation by a                  

                                                                                

26  recognized regional accrediting body.                                       

                                                                                

27      (d) "Contract" means the executive act taken by an                          


                                                                                

1   authorizing body that evidences the authorization of a public               

                                                                                

2   school academy and that establishes, subject to the                         

                                                                                

3   constitutional powers of the state board and applicable law, the            

                                                                                

4   written instrument executed by an authorizing body conferring               

                                                                                

5   certain rights, franchises, privileges, and obligations on a                

                                                                                

6   public school academy, as provided by this part, and confirming             

                                                                                

7   the status of a public school academy as a public school in this            

                                                                                

8   state.                                                                      

                                                                                

9       (e) "Educational management company" means that term as                     

                                                                                

10  defined in section 1320.                                                    

                                                                                

11      (f)  (e)  "Entity" means a partnership, nonprofit or business               

                                                                                

12  corporation, labor organization, or any other association,                  

                                                                                

13  corporation, trust, or other legal entity.                                  

                                                                                

14      (g)  (f) "State public university"  "Institution of higher                  

                                                                                

15  education with statewide jurisdiction" means a state university             

                                                                                

16  described in section 4, 5, or 6 of article VIII of the state                

                                                                                

17  constitution of 1963 or a federal tribally controlled community             

                                                                                

18  college that is recognized under the tribally controlled                    

                                                                                

19  community college assistance act of 1978, Public Law 95-471, 92             

                                                                                

20  Stat. 1325, and is determined by the department to meet the                 

                                                                                

21  requirements for accreditation by a recognized regional                     

                                                                                

22  accrediting body.                                                           

                                                                                

23      Sec. 502.  (1) A public school academy shall be organized                   

                                                                                

24  and administered under the direction of a board of directors in             

                                                                                

25  accordance with this part and with bylaws adopted by the board of           

                                                                                

26  directors.  A public school academy corporation shall be                    

                                                                                

27  organized under the nonprofit corporation act,  Act No. 162 of              


                                                                                

1   the Public Acts of 1982, being sections 450.2101 to 450.3192 of             

                                                                                

2   the Michigan Compiled Laws  1982 PA 162, MCL 450.2101 to                    

                                                                                

3   450.3192, except that a public school academy corporation is not            

                                                                                

4   required to comply with sections 170 to 177 of  Act No. 327 of              

                                                                                

5   the Public Acts of 1931, being sections 450.170 to 450.177 of the           

                                                                                

6   Michigan Compiled Laws  1931 PA 327, MCL 450.170 to 450.177.  To            

                                                                                

7   the extent disqualified under the state or federal constitution,            

                                                                                

8   a public school academy shall not be organized by a church or               

                                                                                

9   other religious organization and shall not have any                         

                                                                                

10  organizational or contractual affiliation with or constitute a              

                                                                                

11  church or other religious organization.                                     

                                                                                

12      (2) Any of the following governing boards may act as an                     

                                                                                

13  authorizing body to issue a contract to organize and operate 1 or           

                                                                                

14  more public school academies under this part:                               

                                                                                

15      (a) The board of a school district that operates grades K to                

                                                                                

16  12.  However, the board of a school district shall not issue a              

                                                                                

17  contract for a public school academy to operate outside the                 

                                                                                

18  school district's boundaries, and a public school academy                   

                                                                                

19  authorized by the board of a school district shall not operate              

                                                                                

20  outside that school district's boundaries.                                  

                                                                                

21      (b) An intermediate school board.  However, the board of an                 

                                                                                

22  intermediate school district shall not issue a contract for a               

                                                                                

23  public school academy to operate outside the intermediate school            

                                                                                

24  district's boundaries, and a public school academy authorized by            

                                                                                

25  the board of an intermediate school district shall not operate              

                                                                                

26  outside that intermediate school district's boundaries.                     

                                                                                

27      (c) The board of a community college.  However, except as                   


                                                                                

1   otherwise provided in this subdivision,  the board of a community           

                                                                                

2   college shall not issue a contract for a public school academy to           

                                                                                

3   operate in a school district organized as a school district of              

                                                                                

4   the first class, a public school academy authorized by the board            

                                                                                

5   of a community college shall not operate in a school district               

                                                                                

6   organized as a school district of the first class,  the board of            

                                                                                

7   a community college shall not issue a contract for a public                 

                                                                                

8   school academy to operate outside the boundaries of the community           

                                                                                

9   college district  ,  and a public school academy authorized by              

                                                                                

10  the board of a community college shall not operate outside the              

                                                                                

11  boundaries of the community college district.  The board of a               

                                                                                

12  community college also may issue a contract for not more than 1             

                                                                                

13  public school academy to operate on the grounds of an active or             

                                                                                

14  closed federal military installation located outside the                    

                                                                                

15  boundaries of the community college district, or may operate a              

                                                                                

16  public school academy itself on the grounds of such a federal               

                                                                                

17  military installation, if the federal military installation is              

                                                                                

18  not located within the boundaries of any community college                  

                                                                                

19  district and the community college has previously offered courses           

                                                                                

20  on the grounds of the federal military installation for at least            

                                                                                

21  10 years.  A contract issued by the board of a federal tribally             

                                                                                

22  controlled community college under this subdivision before the              

                                                                                

23  effective date of the 2003 amendatory act that amended this                 

                                                                                

24  section shall continue to be considered to be issued under this             

                                                                                

25  subdivision rather than under subdivision (d).                              

                                                                                

26      (d) The governing board of  a state public university  an                   

                                                                                

27  institution of higher education with statewide jurisdiction.                


                                                                                

1   However, the combined total number of contracts for public school           

                                                                                

2   academies issued by all  state public universities  governing               

                                                                                

3   boards of institutions of higher education with statewide                   

                                                                                

4   jurisdiction shall not exceed  85 through 1996, and, after the              

                                                                                

5   initial evaluation under section 501a, shall not exceed 100                 

                                                                                

6   through 1997, 125 through 1998, or 150  180 through 2003, 210               

                                                                                

7   through 2004, 240 through 2005, 270 through 2006, 300 through               

                                                                                

8   2007, 330 through 2008, 360 through 2009, 390 through 2010, 420             

                                                                                

9   through 2011, or 450 thereafter.  Further, the total number of              

                                                                                

10  contracts issued by any 1  state public university  governing               

                                                                                

11  board of an institution of higher education with statewide                  

                                                                                

12  jurisdiction shall not exceed  50 through 1996, and thereafter              

                                                                                

13  shall not exceed  50% of the maximum combined total number that             

                                                                                

14  may be issued under this subdivision.                                       

                                                                                

15      (3) To obtain a contract to organize and operate 1 or more                  

                                                                                

16  public school academies, 1 or more persons or an entity may apply           

                                                                                

17  to an authorizing body described in subsection (2).  The                    

                                                                                

18  application shall include at least all of the following:                    

                                                                                

19      (a) Identification of the applicant for the contract.                       

                                                                                

20      (b) Subject to the resolution adopted by the authorizing body               

                                                                                

21  under section  503(4)  507(1)(c), a list of the proposed members            

                                                                                

22  of the board of directors of the public school academy and a                

                                                                                

23  description of the qualifications and method for appointment or             

                                                                                

24  election of members of the board of directors.                              

                                                                                

25      (c) The proposed articles of incorporation, which shall                     

                                                                                

26  include at least all of the following:                                      

                                                                                

27                                                                               (i) The name of the proposed public school academy.                                 


                                                                                

1       (ii) The purposes for the public school academy corporation.                 

                                                                                

2   This language shall provide that the public school academy is               

                                                                                

3   incorporated pursuant to this part and that the public school               

                                                                                

4   academy corporation is a governmental entity and political                  

                                                                                

5   subdivision of this state.                                                  

                                                                                

6       (iii) The name of the authorizing body.                                      

                                                                                

7       (iv) The proposed time when the articles of incorporation                    

                                                                                

8   will be effective.                                                          

                                                                                

9       (v) Other matters considered expedient to be in the articles                

                                                                                

10  of incorporation.                                                           

                                                                                

11      (d) A copy of the proposed bylaws of the public school                      

                                                                                

12  academy.                                                                    

                                                                                

13      (e) Documentation meeting the application requirements of the               

                                                                                

14  authorizing body, including at least all of the following:                  

                                                                                

15                                                                               (i) The governance structure of the public school academy.                          

                                                                                

16      (ii) A copy of the educational goals of the public school                    

                                                                                

17  academy and the curricula to be offered and methods of pupil                

                                                                                

18  assessment to be used by the public school academy.  To the                 

                                                                                

19  extent applicable, the progress of the pupils in the public                 

                                                                                

20  school academy shall be assessed using at least a Michigan                  

                                                                                

21  education assessment program (MEAP) test or an assessment                   

                                                                                

22  instrument developed under section 1279.  for a state-endorsed              

                                                                                

23  high school diploma.                                                        

                                                                                

24      (iii) The admission policy and criteria to be maintained by                  

                                                                                

25  the public school academy.  The admission policy and criteria               

                                                                                

26  shall comply with section 504.  This part of the application also           

                                                                                

27  shall include a description of how the applicant will provide to            


                                                                                

1   the general public adequate notice that a public school academy             

                                                                                

2   is being created and adequate information on the admission                  

                                                                                

3   policy, criteria, and process.                                              

                                                                                

4       (iv) The school calendar and school day schedule.                            

                                                                                

5       (v) The age or grade range of pupils to be enrolled.                        

                                                                                

6       (f) Descriptions of staff responsibilities and of the public                

                                                                                

7   school academy's governance structure.                                      

                                                                                

8       (g) For an application to the board of a school district, an                

                                                                                

9   intermediate school board, or board of a community college,                 

                                                                                

10  identification of the local and intermediate school districts in            

                                                                                

11  which the public school academy will be located.                            

                                                                                

12      (h) An agreement that the public school academy will comply                 

                                                                                

13  with the provisions of this part and, subject to the provisions             

                                                                                

14  of this part, with all other state law applicable to public                 

                                                                                

15  bodies and with federal law applicable to public bodies or school           

                                                                                

16  districts.                                                                  

                                                                                

17      (i) For a public school academy authorized by a school                      

                                                                                

18  district, an assurance that employees of the public school                  

                                                                                

19  academy will be covered by the collective bargaining agreements             

                                                                                

20  that apply to other employees of the school district employed in            

                                                                                

21  similar classifications in schools that are not public school               

                                                                                

22  academies.                                                                  

                                                                                

23      (j) A description of and address for the proposed  physical                 

                                                                                

24  plant in which  site or sites for the public school academy.                

                                                                                

25  will be located.                                                           

                                                                                

26      (4) An authorizing body shall oversee, or shall contract with               

                                                                                

27  an intermediate school district, community college, or state                


                                                                                

1   public university to oversee, each public school academy                    

                                                                                

2   operating under a contract issued by the authorizing body.  The             

                                                                                

3   oversight shall be sufficient to ensure that the authorizing body           

                                                                                

4   can certify that the public school academy is in compliance with            

                                                                                

5   statute, rules, and the terms of the contract.                              

                                                                                

6       (4)  (5)  If the  state board  department finds that an                     

                                                                                

7   authorizing body is not engaging in appropriate continuing                  

                                                                                

8   oversight of 1 or more public school academies operating under a            

                                                                                

9   contract issued by the authorizing body, the  state board                   

                                                                                

10  department may suspend the power of the authorizing body to issue           

                                                                                

11  new contracts to organize and operate public school academies.  A           

                                                                                

12  contract issued by the authorizing body during the suspension is            

                                                                                

13  void.  A contract issued by the authorizing body before the                 

                                                                                

14  suspension is not affected by the suspension.                               

                                                                                

15      (5)  (6)  An authorizing body shall not charge a fee, or                    

                                                                                

16  require reimbursement of expenses, for considering an application           

                                                                                

17  for a contract, for issuing a contract, or for providing                    

                                                                                

18  oversight of a contract for a public school academy in an amount            

                                                                                

19  that exceeds a combined total of 3% of the total state school aid           

                                                                                

20  received by the public school academy in the school year in which           

                                                                                

21  the fees or expenses are charged.  All of the following apply to            

                                                                                

22  this fee:                                                                   

                                                                                

23      (a) As set forth in the contract, an authorizing body may use               

                                                                                

24  a portion of this fee to provide technical assistance to the                

                                                                                

25  public school academy.                                                      

                                                                                

26      (b) An authorizing body shall not use any portion of this fee               

                                                                                

27  for any purpose other than considering applications and issuing             


                                                                                

1   contracts under this part or for oversight of, technical                    

                                                                                

2   assistance to, and direct academic support to public school                 

                                                                                

3   academies.                                                                  

                                                                                

4       (c) An authorizing body may provide other services for a                    

                                                                                

5   public school academy and charge a fee for those services, but              

                                                                                

6   shall not require such an arrangement as a condition to issuing             

                                                                                

7   the contract authorizing the public school academy.                         

                                                                                

8       (6)  (7)  A public school academy shall be presumed to be                   

                                                                                

9   legally organized if it has exercised the franchises and                    

                                                                                

10  privileges of a public school academy for at least 2 years.                 

                                                                                

11      (7) If an authorizing body of a public school academy                       

                                                                                

12  consolidates or otherwise merges with another entity that is                

                                                                                

13  eligible to serve as an authorizing body under this part, the               

                                                                                

14  contract for the public school academy remains valid and the                

                                                                                

15  successor entity shall be considered to be the authorizing body             

                                                                                

16  for the public school academy and shall perform all of the duties           

                                                                                

17  of the authorizing body under this part.                                    

                                                                                

18      (8) If an authorizing body of a public school academy is                    

                                                                                

19  dissolved or otherwise ceases to exist, the contract for the                

                                                                                

20  public school academy remains valid, and the public school                  

                                                                                

21  academy may continue to operate, for a period of 90 days.  The              

                                                                                

22  board of directors of the public school academy may arrange for             

                                                                                

23  the contract to be reauthorized during this period by another               

                                                                                

24  authorizing body.  The superintendent of public instruction may             

                                                                                

25  extend this period in his or her discretion if he or she                    

                                                                                

26  determines that an extension is in the best interests of the                

                                                                                

27  pupils of the public school academy.  If the contract is not                


                                                                                

1   reauthorized within this period, the contract is void.  The                 

                                                                                

2   limitations of subsection (2) on the number of contracts that may           

                                                                                

3   be issued do not apply to a contract that is reauthorized under             

                                                                                

4   this subsection.                                                            

                                                                                

5       Sec. 503.  (1) An authorizing body is not required to issue                 

                                                                                

6   a contract to any person or entity.  Public school academy                  

                                                                                

7   contracts shall be issued on a competitive basis taking into                

                                                                                

8   consideration the resources available for the proposed public               

                                                                                

9   school academy, the population to be served by the proposed                 

                                                                                

10  public school academy, and the educational goals to be achieved             

                                                                                

11  by the proposed public school academy.                                      

                                                                                

12      (2) If a person or entity applies to the board of a school                  

                                                                                

13  district for a contract to organize and operate 1 or more public            

                                                                                

14  school academies within the boundaries of the school district and           

                                                                                

15  the board does not issue the contract, the person or entity may             

                                                                                

16  petition the board to place the question of issuing the contract            

                                                                                

17  on the ballot to be decided by the school electors of the school            

                                                                                

18  district.  The petition shall contain all of the information                

                                                                                

19  required to be in the  contract  application under section                  

                                                                                

20  502(3)  502 and shall be signed by a number of school electors             

                                                                                

21  of the school district equal to at least 15% of the total number            

                                                                                

22  of school electors of that school district.  The petition shall             

                                                                                

23  be filed with the secretary of the board.  If the board receives            

                                                                                

24  a petition meeting the requirements of this subsection, the board           

                                                                                

25  shall place the question of issuing the contract on the ballot at           

                                                                                

26  its next  annual  regular school election held at least 60 days             

                                                                                

27  after receiving the petition.  If a majority of the school                  


                                                                                

1   electors of the school district voting on the question vote to              

                                                                                

2   issue the contract, the board shall issue the contract.                     

                                                                                

3       (3) Within 10 days after issuing a contract for a public                    

                                                                                

4   school academy, the board of the authorizing body shall submit to           

                                                                                

5   the state board a copy of the contract and of the application               

                                                                                

6   under section 502.                                                          

                                                                                

7       (4) An authorizing body shall adopt a resolution establishing               

                                                                                

8   the method of selection, length of term, and number of members of           

                                                                                

9   the board of directors of each public school academy subject to             

                                                                                

10  its jurisdiction.                                                           

                                                                                

11      (3)  (5)  A contract issued to organize and administer a                    

                                                                                

12  public school academy shall contain at least all of the                     

                                                                                

13  following:                                                                  

                                                                                

14      (a) The educational goals the public school academy is to                   

                                                                                

15  achieve and the methods by which it will be held accountable.  To           

                                                                                

16  the extent applicable, the pupil performance of a public school             

                                                                                

17  academy shall be assessed using at least a Michigan education               

                                                                                

18  assessment program (MEAP) test or an assessment instrument                  

                                                                                

19  developed under section 1279.  for a state-endorsed high school             

                                                                                

20  diploma.                                                                    

                                                                                

21      (b) A description of the method to be used to monitor the                   

                                                                                

22  public school academy's compliance with applicable law and its              

                                                                                

23  performance in meeting its targeted educational objectives.                 

                                                                                

24      (c) A description of the process for amending the contract                  

                                                                                

25  during the term of the contract.                                            

                                                                                

26      (d) All of the matters set forth in the application for the                 

                                                                                

27  contract.                                                                   


                                                                                

1       (e) For a public school academy authorized by a school                      

                                                                                

2   district, an agreement that employees of the public school                  

                                                                                

3   academy will be covered by the collective bargaining agreements             

                                                                                

4   that apply to employees of the school district employed in                  

                                                                                

5   similar classifications in schools that are not public school               

                                                                                

6   academies.                                                                  

                                                                                

7       (f) Procedures for revoking the contract and grounds for                    

                                                                                

8   revoking the contract, including at least the grounds listed in             

                                                                                

9   section 507.                                                                

                                                                                

10      (g) A description of and address for the proposed  physical                 

                                                                                

11  plant in which  site or sites for the public school academy.                

                                                                                

12  will be located.                                                           

                                                                                

13      (h) Requirements and procedures for financial audits.  The                  

                                                                                

14  financial audits shall be conducted at least annually by a                  

                                                                                

15  certified public accountant in accordance with generally accepted           

                                                                                

16  governmental auditing principles.                                           

                                                                                

17      (i) A requirement that the board of directors shall ensure                  

                                                                                

18  compliance with the requirements of 1968 PA 317, MCL 15.321 to              

                                                                                

19  15.330, and with any other conflict of interest law generally               

                                                                                

20  applicable to public bodies in this state.                                  

                                                                                

21      (j) A requirement that, if the board of directors of the                    

                                                                                

22  public school academy enters into an agreement with an                      

                                                                                

23  educational management company for operation or management of the           

                                                                                

24  public school academy, the agreement between the board of                   

                                                                                

25  directors and the educational management company must comply with           

                                                                                

26  section 1320.                                                               

                                                                                

27      (k) A requirement that the authorizing body must review and                 


                                                                                

1   may disapprove any agreement between the board of directors and             

                                                                                

2   an educational management company entered into under section 1320           

                                                                                

3   before the agreement is final and valid.  An authorizing body may           

                                                                                

4   disapprove an agreement described in this subdivision only if the           

                                                                                

5   agreement is contrary to the contract or applicable law.                    

                                                                                

6                                                                                (l) A requirement that the board of directors shall                                 

                                                                                

7   demonstrate all of the following to the satisfaction of the                 

                                                                                

8   authorizing body with regard to its pupil admission process:                

                                                                                

9                                                                                (i) That the public school academy has made a reasonable                            

                                                                                

10  effort to advertise its enrollment openings in a newspaper of               

                                                                                

11  general circulation in the intermediate school district in which            

                                                                                

12  the public school academy is located.                                       

                                                                                

13      (ii) That the public school academy has made the following                   

                                                                                

14  additional efforts to recruit pupils who are eligible for special           

                                                                                

15  education programs and services to apply for admission:                     

                                                                                

16      (A) Reasonable efforts to advertise all enrollment openings                 

                                                                                

17  to organizations and media that regularly serve and advocate for            

                                                                                

18  individuals with disabilities within the boundaries of the                  

                                                                                

19  intermediate school district in which the public school academy             

                                                                                

20  is located.                                                                 

                                                                                

21      (B) Inclusion in all pupil recruitment materials of a                       

                                                                                

22  statement that appropriate special education services will be               

                                                                                

23  made available to pupils attending the school as required by                

                                                                                

24  law.                                                                        

                                                                                

25      (iii) That the open enrollment period for the public school                  

                                                                                

26  academy is for a duration of at least 4 weeks.                              

                                                                                

27      (m) A requirement that, if requested, the board of directors                


                                                                                

1   shall report to the authorizing body the total compensation for             

                                                                                

2   each individual employee of the public school academy.                      

                                                                                

3       (4)  (6)  A public school academy shall comply with all                     

                                                                                

4   applicable law, including all of the following:                             

                                                                                

5       (a) The open meetings act,  Act No. 267 of the Public Acts of               

                                                                                

6   1976, being sections 15.261 to 15.275 of the Michigan Compiled              

                                                                                

7   Laws  1976 PA 267, MCL 15.261 to 15.275.                                    

                                                                                

8       (b) The freedom of information act,  Act No. 442 of the                     

                                                                                

9   Public Acts of 1976, being sections 15.231 to 15.246 of the                 

                                                                                

10  Michigan Compiled Laws  1976 PA 442, MCL 15.231 to 15.246.                  

                                                                                

11      (c)  Act No. 336 of the Public Acts of 1947, being sections                 

                                                                                

12  423.201 to 423.217 of the Michigan Compiled Laws  1947 PA 336,              

                                                                                

13  MCL 423.201 to 423.217.                                                     

                                                                                

14      (d)  Act No. 166 of the Public Acts of 1965, being sections                 

                                                                                

15  408.551 to 408.558 of the Michigan Compiled Laws  1965 PA 166,              

                                                                                

16  MCL 408.551 to 408.558.                                                     

                                                                                

17      (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and                     

                                                                                

18  1274.                                                                       

                                                                                

19      (5)  (7)  A public school academy and its incorporators,                    

                                                                                

20  board members, officers, employees, and volunteers have                     

                                                                                

21  governmental immunity as provided in section 7 of  Act No. 170 of           

                                                                                

22  the Public Acts of 1964, being section 691.1407 of the Michigan             

                                                                                

23  Compiled Laws  1964 PA 170, MCL 691.1407.  An authorizing body              

                                                                                

24  and its board members, officers, and employees are immune from              

                                                                                

25  civil liability, both personally and professionally, for any acts           

                                                                                

26  or omissions in authorizing or oversight of a public school                 

                                                                                

27  academy if the authorizing body or the person acted or reasonably           


                                                                                

1   believed he or she acted within the authorizing body's or the               

                                                                                

2   person's scope of authority.                                                

                                                                                

3       (6)  (8)  A public school academy is exempt from all taxation               

                                                                                

4   on its earnings and property.  Instruments of conveyance to or              

                                                                                

5   from a public school academy are exempt from all taxation                   

                                                                                

6   including taxes imposed by  Act No. 134 of the Public Acts of               

                                                                                

7   1966, being sections 207.501 to 207.513 of the Michigan Compiled            

                                                                                

8   Laws  1966 PA 134, MCL 207.501 to 207.513.  A public school                 

                                                                                

9   academy may not levy ad valorem property taxes or any other tax             

                                                                                

10  for any purpose.  However, operation of 1 or more public school             

                                                                                

11  academies by a school district or intermediate school district              

                                                                                

12  does not affect the ability of the school district or                       

                                                                                

13  intermediate school district to levy ad valorem property taxes or           

                                                                                

14  any other tax.                                                              

                                                                                

15      (7)  (9)  A public school academy may acquire by purchase,                  

                                                                                

16  gift, devise, lease, sublease, installment purchase agreement,              

                                                                                

17  land contract, option, or by any other means, hold and own in its           

                                                                                

18  own name buildings and other property for school purposes, and              

                                                                                

19  interests therein, and other real and personal property,                    

                                                                                

20  including, but not limited to, interests in property subject to             

                                                                                

21  mortgages, security interests, or other liens, necessary or                 

                                                                                

22  convenient to fulfill its purposes.  For the purposes of                    

                                                                                

23  condemnation, a public school academy may proceed under the                 

                                                                                

24  uniform condemnation procedures act,  Act No. 87 of the Public              

                                                                                

25  Acts of 1980, being sections 213.51 to 213.77 of the Michigan               

                                                                                

26  Compiled Laws  1980 PA 87, MCL 213.51 to 213.75, excluding                  

                                                                                

27  sections 6 to 9 of that act,  being sections 213.56 to 213.59 of            


                                                                                

1   the Michigan Compiled Laws  MCL 213.56 to 213.59, or other                  

                                                                                

2   applicable statutes, but only with the express, written                     

                                                                                

3   permission of the authorizing body in each instance of                      

                                                                                

4   condemnation and only after just compensation has been determined           

                                                                                

5   and paid.                                                                   

                                                                                

6       Sec. 503b.  (1) If a public school academy is no longer                     

                                                                                

7   authorized to operate as a public school academy under this part,           

                                                                                

8   title to all real and personal property, interests in real or               

                                                                                

9   personal property, and other assets owned by the public school              

                                                                                

10  academy shall revert to this state.  Any money included in those            

                                                                                

11  assets and the net proceeds from the sale of the property or                

                                                                                

12  interests in property, after payment of any debt secured by the             

                                                                                

13  property or interest in property or any other lawful debt, shall            

                                                                                

14  be deposited in the state school aid fund.                                  

                                                                                

15      (2) An agreement, mortgage, loan, or other instrument of                    

                                                                                

16  indebtedness entered into by a public school academy and a third            

                                                                                

17  party does not constitute an obligation, either general, special,           

                                                                                

18  or moral, of this state or an authorizing body.  The full faith             

                                                                                

19  and credit or the taxing power of this state or any agency of               

                                                                                

20  this state, or the full faith and credit of an authorizing body,            

                                                                                

21  may not be pledged for the payment of any public school academy             

                                                                                

22  bond, note, agreement, mortgage, loan, or other instrument of               

                                                                                

23  indebtedness.                                                               

                                                                                

24      (3) This part does not impose any liability on this state or                

                                                                                

25  on an authorizing body for any debt incurred by a public school             

                                                                                

26  academy.                                                                    

                                                                                

27      Sec. 504.  (1) A public school academy may be located in all                


                                                                                

1   or part of an existing public school building.  A public school             

                                                                                

2   academy shall not operate at a site other than the single site              

                                                                                

3   requested for the configuration of grades that will use the site,           

                                                                                

4   as specified in  the application required under section 502 and             

                                                                                

5   in  the contract.                                                           

                                                                                

6       (2) A public school academy shall not charge tuition.  and                  

                                                                                

7   Except as otherwise provided in this section, a public school               

                                                                                

8   academy shall not discriminate in its pupil admissions policies             

                                                                                

9   or practices on the basis of intellectual or athletic ability,              

                                                                                

10  measures of achievement or aptitude, status as a handicapped                

                                                                                

11  person, or any other basis that would be illegal if used by a               

                                                                                

12  school district.  However, a public school academy may limit                

                                                                                

13  admission to pupils who are within a particular range of age or             

                                                                                

14  grade level or on any other basis that would be legal if used by            

                                                                                

15  a school district and may give enrollment priority as provided in           

                                                                                

16  subsection (4).                                                             

                                                                                

17      (3) Except for a foreign exchange student who is not a United               

                                                                                

18  States citizen, a public school academy shall not enroll a pupil            

                                                                                

19  who is not a resident of this state.  Enrollment in the public              

                                                                                

20  school academy may be open to all individuals who reside in this            

                                                                                

21  state who meet the admission policy and shall be open to all                

                                                                                

22  pupils who reside within the geographic boundaries, if any, of              

                                                                                

23  the authorizing body as described in section 502(2)(a) to (c) who           

                                                                                

24  meet the admission policy, except that admission to a public                

                                                                                

25  school academy authorized by the board of a community college to            

                                                                                

26  operate, or operated by the board of a community college, on the            

                                                                                

27  grounds of a federal military installation, as described in                 


                                                                                

1   section 502(2)(c), shall be open to all pupils who reside in the            

                                                                                

2   county in which the federal military installation is located.               

                                                                                

3   For a public school academy authorized by  a state public                   

                                                                                

4   university  an institution of higher education with statewide               

                                                                                

5   jurisdiction, enrollment shall be open to all pupils who reside             

                                                                                

6   in this state who meet the admission policy.   If  Subject to               

                                                                                

7   subsection (4), if there are more applications to enroll in the             

                                                                                

8   public school academy than there are spaces available, pupils               

                                                                                

9   shall be selected to attend using a random selection process.               

                                                                                

10  However, a public school academy may give enrollment priority to           

                                                                                

11  a sibling of a pupil enrolled in the public school academy.  A              

                                                                                

12  public school academy shall allow any pupil who was enrolled in             

                                                                                

13  the public school academy in the immediately preceding school               

                                                                                

14  year to enroll in the public school academy in the appropriate              

                                                                                

15  grade unless the appropriate grade is not offered at that public            

                                                                                

16  school academy.                                                             

                                                                                

17      (4) A public school academy may give enrollment priority to 1               

                                                                                

18  or more of the following:                                                   

                                                                                

19      (a) A sibling of a pupil enrolled in the public school                      

                                                                                

20  academy.                                                                    

                                                                                

21      (b) A child of a person who is employed by or at the public                 

                                                                                

22  school academy or who is on the board of directors of the public            

                                                                                

23  school academy.  As used in this subdivision, "child" includes an           

                                                                                

24  adopted child or a legal ward.                                              

                                                                                

25      (c) If the public school academy is a joint high school, as                 

                                                                                

26  described in subsection (6), a pupil who attended and has                   

                                                                                

27  completed the grade levels offered by 1 of the participating                


                                                                                

1   public school academies.                                                    

                                                                                

2       (5)  (4) A  Subject to the terms of the contract authorizing                

                                                                                

3   the public school academy, a public school academy may include              

                                                                                

4   any grade up to grade 12 or any configuration of those grades,              

                                                                                

5   including kindergarten and early childhood education, as                    

                                                                                

6   specified in its contract.  If specified in its contract, a                 

                                                                                

7   public school academy may also operate an adult basic education             

                                                                                

8   program, adult high school completion program, or general                   

                                                                                

9   education development testing preparation program.   The                    

                                                                                

10  Authorizing bodies are encouraged to issue contracts for public             

                                                                                

11  school academies for students who have dropped out of school or             

                                                                                

12  otherwise have failed to complete high school. An authorizing               

                                                                                

13  body may approve amendment of a contract with respect to ages of            

                                                                                

14  pupils or grades offered.                                                   

                                                                                

15      (6) If it is permitted under their contracts, 2 or more                     

                                                                                

16  public school academies may form a consortium or enter into a               

                                                                                

17  cooperative arrangement for the purpose of establishing and                 

                                                                                

18  operating a joint high school.  A copy of the consortium                    

                                                                                

19  agreement or cooperative agreement shall be incorporated into the           

                                                                                

20  contract of each participating public school academy.  A joint              

                                                                                

21  high school may be established under this subsection without the            

                                                                                

22  issuance of a new contract for the joint high school.  This                 

                                                                                

23  subsection does not prohibit a public school academy that does              

                                                                                

24  not currently operate grades 9 to 12, or any combination of those           

                                                                                

25  grades, from offering some or all of those grades under an                  

                                                                                

26  existing contract with an authorizing body.                                 

                                                                                

27      Sec. 504a.  In addition to other powers set forth in this                   


                                                                                

1   part, a public school academy may take action to carry out the              

                                                                                

2   purposes for which it was incorporated under this part,                     

                                                                                

3   including, but not limited to, all of the following:                        

                                                                                

4       (a) To sue and be sued in its name.                                         

                                                                                

5       (b)  To  Subject to section 503b, to acquire, hold, and own                 

                                                                                

6   in its own name real and personal property, or interests in real            

                                                                                

7   or personal property, for educational purposes by purchase, gift,           

                                                                                

8   grant, devise, bequest, lease, sublease, installment purchase               

                                                                                

9   agreement, land contract, option, or condemnation, and subject to           

                                                                                

10  mortgages, security interests, or other liens; and to sell or               

                                                                                

11  convey the property as the interests of the public school academy           

                                                                                

12  require.                                                                    

                                                                                

13      (c) To receive,  and  disburse, and pledge funds for lawful                 

                                                                                

14  purposes.                                                                   

                                                                                

15      (d) To enter into binding legal agreements with persons or                  

                                                                                

16  entities as necessary for the operation, management, financing,             

                                                                                

17  and maintenance of the public school academy.                               

                                                                                

18      (e) To incur temporary debt in accordance with section 1225.                

                                                                                

19      (f) To solicit and accept any grants or gifts for educational               

                                                                                

20  purposes and to establish or permit to be established on its                

                                                                                

21  behalf 1 or more nonprofit corporations the purpose of which is             

                                                                                

22  to assist the public school academy in the furtherance of its               

                                                                                

23  public purposes.                                                            

                                                                                

24      (g) To borrow money and issue bonds in accordance with                      

                                                                                

25  section 1351a, except that the borrowing of money and issuance of           

                                                                                

26  bonds by a public school academy is not subject to section                  

                                                                                

27  1351a(4) or section 1351(2) to (4).                                         


                                                                                

1       Sec. 507.  (1) An authorizing body that issues a contract                   

                                                                                

2   for a public school academy under this part shall do all of the             

                                                                                

3   following:                                                                  

                                                                                

4       (a) Ensure that the contract and the application for the                    

                                                                                

5   contract comply with the requirements of this part.                         

                                                                                

6       (b) Within 10 days after issuing the contract, submit to the                

                                                                                

7   department a copy of the contract and of the application for the            

                                                                                

8   contract.                                                                   

                                                                                

9       (c) Adopt a resolution establishing the method of selection,                

                                                                                

10  length of term, and number of members of the board of each public           

                                                                                

11  school academy it authorizes.                                               

                                                                                

12      (d) Oversee the operations of each public school academy                    

                                                                                

13  operating under a contract issued by the authorizing body.  The             

                                                                                

14  oversight shall be sufficient to ensure that the authorizing body           

                                                                                

15  can certify that the public school academy is in compliance with            

                                                                                

16  statute, rules, and the terms of the contract.  An authorizing              

                                                                                

17  body may enter into an agreement with 1 or more other authorizing           

                                                                                

18  bodies to oversee a public school academy operating under a                 

                                                                                

19  contract issued by the authorizing body.                                    

                                                                                

20      (e) Develop and implement a process for holding a public                    

                                                                                

21  school academy board of directors accountable for meeting                   

                                                                                

22  applicable academic performance standards set forth in the                  

                                                                                

23  contract and for implementing corrective action for a public                

                                                                                

24  school academy that does not meet those standards.                          

                                                                                

25      (f) Take necessary measures to ensure that a public school                  

                                                                                

26  academy board of directors operates independently of any                    

                                                                                

27  educational management company involved in the operation of the             


                                                                                

1   public school academy.                                                      

                                                                                

2       (g) Oversee and ensure that the pupil admission process used                

                                                                                

3   by the public school academy is operated in a fair and open                 

                                                                                

4   manner and is in compliance with the contract and this part.                

                                                                                

5       (h) Ensure that the board of directors of the public school                 

                                                                                

6   academy maintains and releases information as necessary to comply           

                                                                                

7   with applicable law.                                                        

                                                                                

8       (i) If the authorizing body is the governing board of an                    

                                                                                

9   institution of higher education with statewide jurisdiction that            

                                                                                

10  is a federal tribally controlled community college, comply with             

                                                                                

11  section 1475.                                                               

                                                                                

12      (2)  (1)  The authorizing body for a public school academy is               

                                                                                

13  the fiscal agent for the public school academy.  A state school             

                                                                                

14  aid payment for a public school academy shall be paid to the                

                                                                                

15  authorizing body that is the fiscal agent for that public school            

                                                                                

16  academy, which shall then forward the payment to the public                 

                                                                                

17  school academy.   An authorizing body has the responsibility to             

                                                                                

18  oversee a public school academy's compliance with the contract              

                                                                                

19  and all applicable law.  Within 30 days after a contract is                 

                                                                                

20  submitted to the department by an authorizing body under                    

                                                                                

21  subsection (1), the department shall issue a district code to the           

                                                                                

22  public school academy for which the contract was issued.  If the            

                                                                                

23  department does not issue a district code within 30 days after a            

                                                                                

24  contract is filed, the state treasurer shall assign a temporary             

                                                                                

25  district code in order for the public school academy to receive             

                                                                                

26  funding under the state school aid act of 1979.                             

                                                                                

27      (3) A contract issued under this part may be revoked by the                 


                                                                                

1   authorizing body that issued the contract if the authorizing body           

                                                                                

2   determines that 1 or more of the following has occurred:                    

                                                                                

3       (a) Failure of the public school academy to abide by and meet               

                                                                                

4   the educational goals set forth in the contract.                            

                                                                                

5       (b) Failure of the public school academy to comply with all                 

                                                                                

6   applicable law.                                                             

                                                                                

7       (c) Failure of the public school academy to meet generally                  

                                                                                

8   accepted public sector accounting principles.                               

                                                                                

9       (d) The existence of 1 or more other grounds for revocation                 

                                                                                

10  as specified in the contract.                                               

                                                                                

11      (4)  (2)  The decision of an authorizing body to issue,                     

                                                                                

12  reissue, or reconstitute a contract under this part, or to revoke           

                                                                                

13  a contract under this section, is solely within the discretion of           

                                                                                

14  the authorizing body, is final, and is not subject to review by a           

                                                                                

15  court or any state agency.  An authorizing body that does not               

                                                                                

16  issue, reissue, or reconstitute a contract under this part, or              

                                                                                

17  that revokes a contract under this section, is not liable for               

                                                                                

18  that action to the public school academy, public school academy             

                                                                                

19  corporation, a pupil of the public school academy, the parent or            

                                                                                

20  guardian of a pupil of the public school academy, or any other              

                                                                                

21  person.                                                                     

                                                                                

22      (5) Before an authorizing body revokes a contract under                     

                                                                                

23  subsection (3), the authorizing body may consider and take                  

                                                                                

24  corrective measures to avoid revocation.  If it is appropriate              

                                                                                

25  considering the overall circumstances, an authorizing body may              

                                                                                

26  reconstitute the public school academy to improve student                   

                                                                                

27  educational performance or to avoid interruption of the                     


                                                                                

1   educational process.  An authorizing body may include a                     

                                                                                

2   reconstituting provision in the contract that identifies these              

                                                                                

3   corrective measures, including, but not limited to, appointing a            

                                                                                

4   new board of directors or a trustee to take over operation of the           

                                                                                

5   public school academy.                                                      

                                                                                

6       (6) If an authorizing body revokes a contract under                         

                                                                                

7   subsection (3), the authorizing body shall work with a school               

                                                                                

8   district or another public school academy, or with a combination            

                                                                                

9   of these entities, to ensure a smooth transition for the affected           

                                                                                

10  pupils.  If the revocation occurs during the school year, the               

                                                                                

11  authorizing body, as the fiscal agent for the public school                 

                                                                                

12  academy under this section, shall return any school aid funds               

                                                                                

13  received by the authorizing body that are attributable to the               

                                                                                

14  affected pupils to the state treasurer for deposit into the state           

                                                                                

15  school aid fund.  The state treasurer shall distribute funds to             

                                                                                

16  the school district or public school academy in which the pupils            

                                                                                

17  enroll after the revocation pursuant to a methodology established           

                                                                                

18  by the department and the center for educational performance and            

                                                                                

19  information.                                                                

                                                                                

20      Sec. 1320.  (1) Beginning with contracts described in this                  

                                                                                

21  section that are entered into after the effective date of this              

                                                                                

22  section, if the governing board of a public school enters into a            

                                                                                

23  contract with an educational management company to carry out the            

                                                                                

24  operations of a public school under this act, the governing board           

                                                                                

25  shall ensure all of the following:                                          

                                                                                

26      (a) That the governing board has conducted sufficient due                   

                                                                                

27  diligence to conclude that the educational management company has           


                                                                                

1   sufficient educational expertise and management experience to               

                                                                                

2   provide the agreed services.                                                

                                                                                

3       (b) That the governing board will obtain independent legal                  

                                                                                

4   counsel in all negotiations with the educational management                 

                                                                                

5   company.                                                                    

                                                                                

6       (c) If the governing board is the board of directors of a                   

                                                                                

7   public school academy, that, pursuant to the contract between the           

                                                                                

8   board of directors and the educational management company, the              

                                                                                

9   educational management company will provide to the board of                 

                                                                                

10  directors all financial and other information required to comply            

                                                                                

11  with the requirements concerning reporting that are contained in            

                                                                                

12  the contract between the board of directors and its authorizing             

                                                                                

13  body under section 503.                                                     

                                                                                

14      (2) Beginning with contracts described in this section that                 

                                                                                

15  are entered into after the effective date of this section, if the           

                                                                                

16  governing board of a public school enters into a contract with an           

                                                                                

17  educational management company to carry out the operations of a             

                                                                                

18  public school under this act, the contract between the governing            

                                                                                

19  board and the educational management company shall contain at               

                                                                                

20  least all of the following provisions:                                      

                                                                                

21      (a) A provision requiring the educational management company                

                                                                                

22  to provide to the governing board information regarding any                 

                                                                                

23  teachers, administrators, and support staff employed by the                 

                                                                                

24  educational management company and assigned to work at the public           

                                                                                

25  school, including at least all of the following personal                    

                                                                                

26  information:                                                                

                                                                                

27                                                                               (i) Name.                                                                           


                                                                                

1       (ii) Education, including highest degree attained.                           

                                                                                

2       (iii) Salary.                                                                

                                                                                

3       (iv) Copy of teaching certificate or other required permit or                

                                                                                

4   credential, if required for the position.                                   

                                                                                

5       (v) Description of relevant experience.                                     

                                                                                

6       (vi) Employment record.                                                      

                                                                                

7       (b) A provision requiring the educational management company                

                                                                                

8   to provide to the governing board information regarding the                 

                                                                                

9   business operations of the public school, including at least all            

                                                                                

10  of the following:                                                           

                                                                                

11                                                                               (i) Financial records and information concerning the                                

                                                                                

12  operation of the school, including, but not limited to, budgets             

                                                                                

13  and detailed records of funds received from this state and other            

                                                                                

14  entities, expenditure of those funds, investment of those funds,            

                                                                                

15  carryover, and contractual arrangements or agreements entered               

                                                                                

16  into by the educational management company as an agent of the               

                                                                                

17  governing board.                                                            

                                                                                

18      (ii) Financial records and information concerning leases to                  

                                                                                

19  which the governing board is a party, including, but not limited            

                                                                                

20  to, leases for equipment, physical facility space, or                       

                                                                                

21  institutional and educational materials.                                    

                                                                                

22      (iii) Financial records and information concerning mortgages                 

                                                                                

23  and loans to which the governing board is a party.                          

                                                                                

24      (c) If the governing board is the board of directors of a                   

                                                                                

25  public school academy, a provision requiring the educational                

                                                                                

26  management company to make information available to the board of            

                                                                                

27  directors concerning the operation and management of the public             


                                                                                

1   school academy, including at least all of the information                   

                                                                                

2   necessary to comply with the requirements concerning reporting              

                                                                                

3   that are contained in the contract between the board of directors           

                                                                                

4   and its authorizing body under section 503.                                 

                                                                                

5       (3) As used in this section:                                                

                                                                                

6       (a) "Educational management company" means an entity that                   

                                                                                

7   enters into an agreement with the governing board of a public               

                                                                                

8   school to provide comprehensive educational, administrative,                

                                                                                

9   management, or instructional services or staff to the public                

                                                                                

10  school.                                                                     

                                                                                

11      (b) "Entity" means a partnership, nonprofit or business                     

                                                                                

12  corporation, labor organization, or any other association,                  

                                                                                

13  corporation, trust, or other legal entity.