May 22, 2008, Introduced by Reps. Valentine, Melton, Robert Jones, Hammon, Hammel, Clack and Hopgood and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 502 and 503 (MCL 380.502 and 380.503), section
502 as amended by 1995 PA 289 and section 503 as amended by 2003 PA
299.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 502. (1) A public school academy shall be organized and
administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. A public school academy corporation shall be organized
under
the nonprofit corporation act, Act No. 162 of the Public Acts
of
1982, being sections 450.2101 to 450.3192 of the Michigan
Compiled
Laws 1982 PA 162, MCL
450.2101 to 450.3192, except that a
public school academy corporation is not required to comply with
sections
170 to 177 of Act No. 327 of the Public Acts of 1931,
being
sections 450.170 to 450.177 of the Michigan Compiled Laws
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified
under the state or federal constitution, a public school academy
shall not be organized by a church or other religious organization
and shall not have any organizational or contractual affiliation
with or constitute a church or other religious organization.
(2) Any of the following may act as an authorizing body to
issue a contract to organize and operate 1 or more public school
academies under this part:
(a) The board of a school district that operates grades K to
12. However, the board of a school district shall not issue a
contract for a public school academy to operate outside the school
district's boundaries, and a public school academy authorized by
the board of a school district shall not operate outside that
school district's boundaries.
(b) An intermediate school board. However, the board of an
intermediate school district shall not issue a contract for a
public school academy to operate outside the intermediate school
district's boundaries, and a public school academy authorized by
the board of an intermediate school district shall not operate
outside that intermediate school district's boundaries.
(c) The board of a community college. However, except as
otherwise provided in this subdivision, the board of a community
college shall not issue a contract for a public school academy to
operate in a school district organized as a school district of the
first class, a public school academy authorized by the board of a
community college shall not operate in a school district organized
as a school district of the first class, the board of a community
college shall not issue a contract for a public school academy to
operate outside the boundaries of the community college district,
and a public school academy authorized by the board of a community
college shall not operate outside the boundaries of the community
college district. The board of a community college also may issue a
contract for not more than 1 public school academy to operate on
the grounds of an active or closed federal military installation
located outside the boundaries of the community college district,
or may operate a public school academy itself on the grounds of
such a federal military installation, if the federal military
installation is not located within the boundaries of any community
college district and the community college has previously offered
courses on the grounds of the federal military installation for at
least 10 years.
(d) The governing board of a state public university. However,
the combined total number of contracts for public school academies
issued
by all state public universities shall not exceed 85 through
1996,
and, after the initial evaluation under section 501a, shall
not
exceed 100 through 1997, 125 through 1998, or 150 thereafter
150. Further, the total number of contracts issued by any 1 state
public
university shall not exceed 50 through 1996, and thereafter
shall
not exceed 50% of the maximum
combined total number that may
be issued under this subdivision.
(3) To obtain a contract to organize and operate 1 or more
public school academies, 1 or more persons or an entity may apply
to an authorizing body described in subsection (2). The application
shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 503(4), a list of the proposed members of the initial
board of directors of the public school academy and a description
of the qualifications and method for appointment or election of
members of the board of directors. This initial board of directors
shall serve only until an election of a new board of directors is
conducted as provided under section 503(4).
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed public school academy.
(ii) The purposes for the public school academy corporation.
This language shall provide that the public school academy is
incorporated pursuant to this part and that the public school
academy corporation is a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the public school
academy.
(e) Documentation meeting the application requirements of the
authorizing body, including at least all of the following:
(i) The governance structure of the public school academy.
(ii) A copy of the educational goals of the public school
academy and the curricula to be offered and methods of pupil
assessment to be used by the public school academy. To the extent
applicable, the progress of the pupils in the public school academy
shall be assessed using at least a Michigan education assessment
program
(MEAP) test or an assessment instrument the Michigan merit
examination
developed under section 1279 for a
state-endorsed high
school
diploma 1279g.
(iii) The admission policy and criteria to be maintained by the
public school academy. The admission policy and criteria shall
comply with section 504. This part of the application also shall
include a description of how the applicant will provide to the
general public adequate notice that a public school academy is
being created and adequate information on the admission policy,
criteria, and process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled.
(f) Descriptions of staff responsibilities and of the public
school academy's governance structure.
(g) For an application to the board of a school district, an
intermediate school board, or board of a community college,
identification of the local and intermediate school districts in
which the public school academy will be located.
(h) An agreement that the public school academy will comply
with the provisions of this part and, subject to the provisions of
this part, with all other state law applicable to public bodies and
with federal law applicable to public bodies or school districts.
(i) For a public school academy authorized by a school
district, an assurance that employees of the public school academy
will be covered by the collective bargaining agreements that apply
to other employees of the school district employed in similar
classifications in schools that are not public school academies.
(j) A description of and address for the proposed physical
plant in which the public school academy will be located.
(4) An authorizing body shall oversee, or shall contract with
an intermediate school district, community college, or state public
university to oversee, each public school academy operating under a
contract issued by the authorizing body. The oversight shall be
sufficient to ensure that the authorizing body can certify that the
public school academy is in compliance with statute, rules, and the
terms of the contract.
(5) If the state board finds that an authorizing body is not
engaging in appropriate continuing oversight of 1 or more public
school academies operating under a contract issued by the
authorizing body, the state board may suspend the power of the
authorizing body to issue new contracts to organize and operate
public school academies. A contract issued by the authorizing body
during the suspension is void. A contract issued by the authorizing
body before the suspension is not affected by the suspension.
(6) An authorizing body shall not charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a public school academy in an amount that exceeds a
combined total of 3% of the total state school aid received by the
public school academy in the school year in which the fees or
expenses are charged. An authorizing body may provide other
services for a public school academy and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the public school academy.
(7) A public school academy shall be presumed to be legally
organized if it has exercised the franchises and privileges of a
public school academy for at least 2 years.
Sec. 503. (1) An authorizing body is not required to issue a
contract to any person or entity. Public school academy contracts
shall be issued on a competitive basis taking into consideration
the resources available for the proposed public school academy, the
population to be served by the proposed public school academy, and
the educational goals to be achieved by the proposed public school
academy.
(2) If a person or entity applies to the board of a school
district for a contract to organize and operate 1 or more public
school academies within the boundaries of the school district and
the board does not issue the contract, the person or entity may
petition the board to place the question of issuing the contract on
the ballot to be decided by the school electors of the school
district. The petition shall contain all of the information
required to be in the contract application under section 502 and
shall be signed by a number of school electors of the school
district equal to at least 15% of the total number of school
electors of that school district. The petition shall be filed with
the school district filing official. If the board receives a
petition meeting the requirements of this subsection, the board
shall have the question of issuing the contract placed on the
ballot at its next regular school election held at least 60 days
after receiving the petition. If a majority of the school electors
of the school district voting on the question vote to issue the
contract, the board shall issue the contract.
(3) Within 10 days after issuing a contract for a public
school academy, the authorizing body shall submit to the
superintendent of public instruction a copy of the contract and of
the application under section 502.
(4) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, and number of members of
the board of directors of each public school academy subject to its
jurisdiction. All of the following apply to this resolution and to
the selection of a board of directors of a public school academy:
(a) For a public school academy that is in operation as of the
effective date of the amendatory act that added this subdivision,
not later than 120 days after that effective date, the authorizing
body shall amend this resolution as necessary to provide that all
members of the board of directors are nominated by the parents and
legal guardians of the pupils enrolled in the public school academy
and are elected by a vote of the parents and legal guardians of the
pupils enrolled in the public school academy and shall amend this
resolution as necessary to prescribe the method of that nomination
and election. The authorizing body shall ensure that such an
election is conducted to select a new board of directors and that
subsequent elections are conducted in accordance with the
resolution.
(b) For a public school academy that begins operations after
the effective date of the amendatory act that added this
subdivision, this resolution shall provide that all members of the
board of directors are nominated by the parents and legal guardians
of the pupils enrolled in the public school academy and are elected
by a vote of the parents and legal guardians of the pupils enrolled
in the public school academy and shall prescribe the method of that
election. The authorizing body shall ensure that such an election
is conducted to select a new board of directors to replace the
initial board of directors described in section 502(3)(b) not later
than 120 days after the public school academy begins operations and
that subsequent elections are conducted in accordance with the
resolution.
(5) A contract issued to organize and administer a public
school academy shall contain at least all of the following:
(a) The educational goals the public school academy is to
achieve and the methods by which it will be held accountable. To
the extent applicable, the pupil performance of a public school
academy shall be assessed using at least a Michigan education
assessment
program (MEAP) test or an assessment instrument the
Michigan
merit examination developed under
section 1279 1279g.
(b) A description of the method to be used to monitor the
public school academy's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) All of the matters set forth in the application for the
contract.
(e) For a public school academy authorized by a school
district, an agreement that employees of the public school academy
will be covered by the collective bargaining agreements that apply
to employees of the school district employed in similar
classifications in schools that are not public school academies.
(f) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 507.
(g) A description of and address for the proposed physical
plant in which the public school academy will be located.
(h) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by a
certified public accountant in accordance with generally accepted
governmental auditing principles.
(6) A public school academy shall comply with all applicable
law, including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.
(7) A public school academy and its incorporators, board of
directors' members, officers, employees, and volunteers have
governmental immunity as provided in section 7 of 1964 PA 170, MCL
691.1407. An authorizing body and its board of directors' members,
officers, and employees are immune from civil liability, both
personally and professionally, for an act or omission in
authorizing a public school academy if the authorizing body or the
person acted or reasonably believed he or she acted within the
authorizing body's or the person's scope of authority.
(8) A public school academy is exempt from all taxation on its
earnings and property. Instruments of conveyance to or from a
public school academy are exempt from all taxation including taxes
imposed by 1966 PA 134, MCL 207.501 to 207.513. A public school
academy may not levy ad valorem property taxes or another tax for
any purpose. However, operation of 1 or more public school
academies by a school district or intermediate school district does
not affect the ability of the school district or intermediate
school district to levy ad valorem property taxes or another tax.
(9) A public school academy may acquire by purchase, gift,
devise, lease, sublease, installment purchase agreement, land
contract, option, or by any other means, hold and own in its own
name buildings and other property for school purposes, and
interests therein, and other real and personal property, including,
but not limited to, interests in property subject to mortgages,
security interests, or other liens, necessary or convenient to
fulfill its purposes. For the purposes of condemnation, a public
school academy may proceed under the uniform condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding
sections 6 to 9 of that act, MCL 213.56 to 213.59, or other
applicable statutes, but only with the express, written permission
of the authorizing body in each instance of condemnation and only
after just compensation has been determined and paid.