March 6, 2007, Introduced by Reps. Nitz, Ball and David Law and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 507, 528, and 1311l (MCL 380.507, 380.528, and
380.1311l), section 507 as amended by 1995 PA 289, section 528 as
added by 2003 PA 179, and section 1311l as added by 1999 PA 23.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 507. (1) The authorizing body for a public school academy
is the fiscal agent for the public school academy. A state school
aid payment for a public school academy shall be paid to the
authorizing body that is the fiscal agent for that public school
academy, which shall then forward the payment to the public school
academy. An authorizing body has the responsibility to oversee a
public school academy's compliance with the contract and all
applicable law. A contract issued under this part may be revoked by
the authorizing body that issued the contract if the authorizing
body determines that 1 or more of the following has occurred:
(a) Failure of the public school academy to abide by and meet
the educational goals set forth in the contract.
(b) Failure of the public school academy to comply with all
applicable law.
(c) Failure of the public school academy to meet generally
accepted public sector accounting principles.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(2) To assure the oversight required under this part, the
authorizing body of a public school academy shall arrange for a
review of the public school academy at least every 2 years by a
peer review committee. A peer review committee shall consist of 5
individuals contracted by the authorizing body and selected from
among a list of qualified individuals maintained by the department.
The department shall include on this list individuals with
significant experience in public school administration or
instruction and individuals with significant experience in
authorizing or administering a public school academy. A peer review
committee shall review the adequacy of the public school academy in
the following 5 areas: instructional facilities and space, faculty
qualifications, libraries and laboratory facilities and space,
student support capacity, and overall financial solvency. The peer
review committee shall report its findings to the authorizing body
and the department. If the report contains a finding of inadequacy
in 1 or more of these areas, the authorizing body shall work with
the public school academy to ensure that appropriate corrective
action is taken.
(3) (2) The decision of an authorizing body to
revoke a
contract under this section is solely within the discretion of the
authorizing body, is final, and is not subject to review by a court
or any state agency. An authorizing body that revokes a contract
under this section is not liable for that action to the public
school academy, public school academy corporation, a pupil of the
public school academy, the parent or guardian of a pupil of the
public school academy, or any other person.
Sec. 528. (1) An authorizing body that issues a contract for
an urban high school academy under this part shall do all of the
following:
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Adopt a resolution establishing the method of selection,
length of term, and number of members of the board of directors of
each urban high school academy that it authorizes.
(d) Oversee the operations of each urban high school academy
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the urban high school
academy is in compliance with the terms of the contract and with
applicable law. An authorizing body may enter into an agreement
with 1 or more other authorizing bodies to oversee an urban high
school academy operating under a contract issued by the authorizing
body.
(e) Develop and implement a process for holding an urban high
school academy board of directors accountable for meeting
applicable academic performance standards set forth in the contract
and for implementing corrective action for an urban high school
academy that does not meet those standards.
(f) Take necessary measures to ensure that an urban high
school academy board of directors operates independently of any
educational management company involved in the operations of the
urban high school academy.
(g) Oversee and ensure that the pupil admission process used
by the urban high school academy is operated in a fair and open
manner and is in compliance with the contract and this part.
(h) Ensure that the board of directors of the urban high
school academy maintains and releases information as necessary to
comply with applicable law.
(2) To assure the oversight required under this part, the
authorizing body of an urban high school academy shall arrange for
a review of the urban high school academy at least every 2 years by
a peer review committee. A peer review committee shall consist of 5
individuals contracted by the authorizing body and selected from
among a list of qualified individuals maintained by the department.
The department shall include on this list individuals with
significant experience in public school administration or
instruction and individuals with significant experience in
authorizing or administering a public school academy. A peer review
committee shall review the adequacy of the urban high school
academy in the following 5 areas: instructional facilities and
space, faculty qualifications, libraries and laboratory facilities
and space, student support capacity, and overall financial
solvency. The peer review committee shall report its findings to
the authorizing body and the department. If the report contains a
finding of inadequacy in 1 or more of these areas, the authorizing
body shall work with the urban high school academy to ensure that
appropriate corrective action is taken.
(3) (2) An authorizing body may enter into an
agreement with 1
or more other authorizing bodies to carry out any function of an
authorizing body under this act.
(4) (3)
The authorizing body for an urban high school academy
is the fiscal agent for the urban high school academy. A state
school aid payment for an urban high school academy shall be paid
to the authorizing body that is the fiscal agent for that urban
high school academy, which shall then forward the payment to the
urban high school academy. Within 30 days after a contract is
submitted to the department by an authorizing body under subsection
(1), the department shall issue a district code to the urban high
school academy for which the contract was issued. If the department
does not issue a district code within 30 days after a contract is
filed, the state treasurer shall assign a temporary district code
in order for the urban high school academy to receive funding under
the state school aid act of 1979.
(5) (4)
A contract issued under this part may be revoked by
the authorizing body that issued the contract if the authorizing
body determines that 1 or more of the following have occurred:
(a) Failure of the urban high school academy to abide by and
meet the educational goals set forth in the contract.
(b) Failure of the urban high school academy to comply with
all applicable law.
(c) Failure of the urban high school academy to meet generally
accepted public sector accounting principles.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(6) (5)
The decision of an authorizing body to issue, reissue,
or reconstitute a contract under this part, or to revoke a contract
under this section, is solely within the discretion of the
authorizing body, is final, and is not subject to review by a court
or any state agency. An authorizing body that does not issue,
reissue, or reconstitute a contract under this part, or that
revokes a contract under this section, is not liable for that
action to the urban high school academy, the urban high school
academy corporation, a pupil of the urban high school academy, the
parent or guardian of a pupil of the urban high school academy, or
any other person.
(7) (6)
Before an authorizing body revokes a contract, the
authorizing body shall consider and take corrective measures to
avoid revocation. An authorizing body shall reconstitute the urban
high school academy in a final attempt to improve student
educational performance or to avoid interruption of the educational
process. An authorizing body shall include a reconstituting
provision in the contract that identifies these corrective
measures, including, but not limited to, removing 1 or more members
of the board of directors, withdrawing approval to contract under
section
525, for an agreement described in section 1320, or
appointing a new board of directors or a trustee to take over
operation of the urban high school academy.
(8) (7)
If an authorizing body revokes a contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the urban high school academy under this part, shall return any
school aid funds received by the authorizing body that are
attributable to the affected pupils to the state treasurer for
deposit into the state school aid fund. The state treasurer shall
distribute funds to the public school in which the pupils enroll
after the revocation pursuant to a methodology established by the
department and the center for educational performance and
information.
(9) (8)
If an authorizing body revokes a contract issued under
this part, the authorizing body may issue a new contract within the
1-year period following the revocation without the new contract
counting toward the maximum number of contracts that may be issued
under this part.
(10) (9)
Not more than 10 days after an urban high school
academy's contract terminates or is revoked, the authorizing body
shall notify the superintendent of public instruction in writing of
the name of the urban high school academy whose contract has
terminated or been revoked and the date of contract termination or
revocation.
(11) (10)
If an urban high school academy's contract
terminates or is revoked, title to all real and personal property,
interest in real or personal property, and other assets owned by
the urban high school academy shall revert to the state. This
property shall be distributed in accordance with the following:
(a) Within 30 days following the termination or revocation,
the board of directors of an urban high school academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the urban high school academy
corporation, all in accordance with chapter 8 of the nonprofit
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.
(b) The urban high school academy shall file a certificate of
dissolution with the department of consumer and industry services
within 10 business days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the urban high school academy
board of directors shall provide a copy of the board of directors'
plan of distribution of assets to the state treasurer for approval.
Within 30 days, the state treasurer, or his or her designee, shall
review and approve the board of directors' plan of distribution of
assets. If the proposed plan of distribution of assets is not
approved within 30 days, the state treasurer, or his or her
designee, shall provide the board of directors with an acceptable
plan of distribution of assets.
(d) The state treasurer, or his or her designee, shall monitor
the urban high school academy's winding up of the dissolved
corporation in accordance with the plan of distribution of assets
approved or provided under subdivision (c).
(e) As part of the plan of distribution of assets, the urban
high school academy board of directors shall designate the director
of the department of management and budget, or his or her designee,
to dispose of all real property of the urban high school academy
corporation in accordance with the directives developed for
disposition of surplus land and facilities under section 251 of the
management and budget act, 1984 PA 431, MCL 18.1251.
(f) If the board of directors of an urban high school academy
fails to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the urban high
school academy board of directors and appoint a trustee to carry
out the board's plan of distribution of assets. Upon appointment,
the trustee shall have all the rights, powers, and privileges under
law that the urban high school academy board of directors had
before being suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any urban high school academy debt secured by the property or
interest in property, whether real or personal, the urban high
school academy board of directors, or a trustee appointed under
this section, shall forward any remaining money to the state
treasurer. Following receipt, the state treasurer, or his or her
designee, shall deposit this remaining money in the state school
aid fund.
Sec. 1311l. (1) The authorizing body for a strict discipline
academy is the fiscal agent for the strict discipline academy. A
state school aid payment for a strict discipline academy shall be
paid to the authorizing body that is the fiscal agent for that
strict discipline academy, which shall then forward the payment to
the strict discipline academy. An authorizing body has the
responsibility to oversee a strict discipline academy's compliance
with the contract and all applicable law. A contract issued under
sections 1311b to 1311l may be revoked by the authorizing body that
issued the contract if the authorizing body determines that 1 or
more of the following has occurred:
(a) Failure of the strict discipline academy to abide by and
meet the educational goals set forth in the contract.
(b) Failure of the strict discipline academy to comply with
all applicable law.
(c) Failure of the strict discipline academy to meet generally
accepted public sector accounting principles.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(2) To assure the oversight required under sections 1311b to
1311l, the authorizing body of a strict discipline academy shall
arrange for a review of the strict discipline academy at least
every 2 years by a peer review committee. A peer review committee
shall consist of 5 individuals contracted by the authorizing body
and selected from among a list of qualified individuals maintained
by the department. The department shall include on this list
individuals with significant experience in public school
administration or instruction and individuals with significant
experience in authorizing or administering a public school academy.
A peer review committee shall review the adequacy of the strict
discipline academy in the following 5 areas: instructional
facilities and space, faculty qualifications, libraries and
laboratory facilities and space, student support capacity, and
overall financial solvency. The peer review committee shall report
its findings to the authorizing body and the department. If the
report contains a finding of inadequacy in 1 or more of these
areas, the authorizing body shall work with the strict discipline
academy to ensure that appropriate corrective action is taken.
(3) (2) The decision of an authorizing body to
revoke a
contract under this section is solely within the discretion of the
authorizing body, is final, and is not subject to review by a court
or any state agency. An authorizing body that revokes a contract
under this section is not liable for that action to the strict
discipline academy, strict discipline academy corporation, a pupil
of the strict discipline academy, the parent or guardian of a pupil
of the strict discipline academy, or any other person.