SB-0149, As Passed House, December 21, 2018

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 149

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 11, 17c, 18, 23a, 24c, 31a, 31j, 32d, 35a,

35b, 39a, 99h, 99u, 101, 265, 297c, 297h, and 297i (MCL 388.1606,

388.1611, 388.1617c, 388.1618, 388.1623a, 388.1624c, 388.1631a,

388.1631j, 388.1632d, 388.1635a, 388.1635b, 388.1639a, 388.1699h,

388.1699u, 388.1701, 388.1865, 388.1897c, 388.1897h, and

388.1897i), section 6 as amended by 2018 PA 266, sections 11, 18,

24c, 31a, 31j, 32d, 35a, 39a, 99h, 99u, and 265 as amended and

sections 17c and 35b as added by 2018 PA 265, sections 23a and 101

as amended by 2016 PA 249, and sections 297c, 297h, and 297i as

added by 2018 PA 227, and by adding sections 31n, 61f, 61g, 61h,

74a, 99w, 99x, 99y, and 104f.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 6. (1) "Center program" means a program operated by a

district or by an intermediate district for special education

pupils from several districts in programs for pupils with autism

spectrum disorder, pupils with severe cognitive impairment, pupils

with moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

district or shall serve several districts with less than 50% of the

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section ~~612 of part B~~ 1412 of the individuals with

disabilities education act, 20 USC 1412, may be considered center

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult education

participants, in the district for the immediately preceding school

year, adjusted for those pupils who have transferred into or out of

the district or high school, who leave high school with a diploma

or other credential of equal status.

(4) "Membership", except as otherwise provided in this

article, means for a district, a public school academy, or an

intermediate district the sum of the product of .90 times the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the pupil membership

count day for the current school year, plus the product of .10

times the final audited count from the supplemental count day for

the immediately preceding school year. A district's, public school

academy's, or intermediate district's membership shall be adjusted

as provided under section 25e for pupils who enroll after the pupil

membership count day in a strict discipline academy operating under

sections 1311b to 1311m of the revised school code, MCL 380.1311b

to 380.1311m. However, for a district that is a community district,

"membership" means the sum of the product of .90 times the number

of full-time equated pupils in grades K to 12 actually enrolled and

in regular daily attendance in the community district on the pupil

membership count day for the current school year, plus the product

of .10 times the sum of the final audited count from the

supplemental count day of pupils in grades K to 12 actually

enrolled and in regular daily attendance in the community district

for the immediately preceding school year plus the final audited

count from the supplemental count day of pupils in grades K to 12

actually enrolled and in regular daily attendance in the education

achievement system for the immediately preceding school year. All

pupil counts used in this subsection are as determined by the

department and calculated by adding the number of pupils registered

for attendance plus pupils received by transfer and minus pupils

lost as defined by rules promulgated by the superintendent, and as

corrected by a subsequent department audit. The amount of the

foundation allowance for a pupil in membership is determined under

section 20. In making the calculation of membership, all of the

following, as applicable, apply to determining the membership of a

district, a public school academy, or an intermediate district:

(a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan Schools for the Deaf and

Blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a career and technical education

program supported by a millage levied over an area larger than a

single district or in an area vocational-technical education

program established pursuant to section 690 of the revised school

code, MCL 380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

(h) For the purposes of this section and section 6a, for a

cyber school, as defined in section 551 of the revised school code,

MCL 380.551, that is in compliance with section 553a of the revised

school code, MCL 380.553a, a pupil's participation in the cyber

school's educational program is considered regular daily

attendance, and for a district or public school academy, a pupil's

participation in a virtual course as defined in section 21f is

considered regular daily attendance. For the purposes of this

subdivision, for a pupil enrolled in a cyber school and utilizing

sequential learning, participation means that term as defined in

the pupil accounting manual, section 5-o-d: requirements for

counting pupils in membership-subsection 10.

(i) For a new district or public school academy beginning its

operation after December 31, 1994, membership for the first 2 full

or partial fiscal years of operation shall be determined as

follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) For an extended school year program approved by the

superintendent, a pupil enrolled, but not scheduled to be in

regular daily attendance, on a pupil membership count day, shall be

counted in membership.

(l) To be counted in membership, a pupil shall meet the

minimum age requirement to be eligible to attend school under

section 1147 of the revised school code, MCL 380.1147, or shall be

enrolled under subsection (3) of that section, and shall be less

than 20 years of age on September 1 of the school year except as

follows:

(i) A special education pupil who is enrolled and receiving

instruction in a special education program or service approved by

the department, who does not have a high school diploma, and who is

less than 26 years of age as of September 1 of the current school

year shall be counted in membership.

(ii) A pupil who is determined by the department to meet all

of the following may be counted in membership:

(A) Is enrolled in a public school academy or an alternative

education high school diploma program, that is primarily focused on

educating pupils with extreme barriers to education, such as being

homeless as defined under 42 USC 11302.

(B) Had dropped out of school.

current school year.

(iii) If a child does not meet the minimum age requirement to

be eligible to attend school for that school year under section

1147 of the revised school code, MCL 380.1147, but will be 5 years

of age not later than December 1 of that school year, the district

may count the child in membership for that school year if the

parent or legal guardian has notified the district in writing that

he or she intends to enroll the child in kindergarten for that

school year.

(m) An individual who has achieved a high school diploma shall

not be counted in membership. An individual who has achieved a high

school equivalency certificate shall not be counted in membership

unless the individual is a student with a disability as defined in

R 340.1702 of the Michigan Administrative Code. An individual

participating in a job training program funded under former section

107a or a jobs program funded under former section 107b,

administered by the department of talent and economic development,

or participating in any successor of either of those 2 programs,

shall not be counted in membership.

(n) If a pupil counted in membership in a public school

academy is also educated by a district or intermediate district as

part of a cooperative education program, the pupil shall be counted

in membership only in the public school academy unless a written

agreement signed by all parties designates the party or parties in

which the pupil shall be counted in membership, and the

instructional time scheduled for the pupil in the district or

intermediate district shall be included in the full-time equated

membership determination under subdivision (q) and section 101.

However, for pupils receiving instruction in both a public school

academy and in a district or intermediate district but not as a

part of a cooperative education program, the following apply:

(i) If the public school academy provides instruction for at

least 1/2 of the class hours required under section 101, the public

school academy shall receive as its prorated share of the full-time

equated membership for each of those pupils an amount equal to 1

times the product of the hours of instruction the public school

academy provides divided by the number of hours required under

section 101 for full-time equivalency, and the remainder of the

full-time membership for each of those pupils shall be allocated to

the district or intermediate district providing the remainder of

the hours of instruction.

(ii) If the public school academy provides instruction for

less than 1/2 of the class hours required under section 101, the

district or intermediate district providing the remainder of the

hours of instruction shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the

district or intermediate district provides divided by the number of

hours required under section 101 for full-time equivalency, and the

remainder of the full-time membership for each of those pupils

shall be allocated to the public school academy.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section 101. In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution or for pupils engaged in an

internship or work experience under section 1279h of the revised

school code, MCL 380.1279h, a pupil shall not be considered to be

less than a full-time equated pupil solely because of the effect of

his or her postsecondary enrollment or engagement in the internship

or work experience, including necessary travel time, on the number

of class hours provided by the district to the pupil.

(r) Full-time equated memberships for pupils in kindergarten

shall be determined by dividing the number of instructional hours

scheduled and provided per year per kindergarten pupil by the same

number used for determining full-time equated memberships for

pupils in grades 1 to 12. However, to the extent allowable under

federal law, for a district or public school academy that provides

evidence satisfactory to the department that it used federal title

I money in the 2 immediately preceding school fiscal years to fund

full-time kindergarten, full-time equated memberships for pupils in

kindergarten shall be determined by dividing the number of class

hours scheduled and provided per year per kindergarten pupil by a

number equal to 1/2 the number used for determining full-time

equated memberships for pupils in grades 1 to 12. The change in the

counting of full-time equated memberships for pupils in

kindergarten that took effect for 2012-2013 is not a mandate.

(s) For a district or a public school academy that has pupils

enrolled in a grade level that was not offered by the district or

public school academy in the immediately preceding school year, the

number of pupils enrolled in that grade level to be counted in

membership is the average of the number of those pupils enrolled

and in regular daily attendance on the pupil membership count day

and the supplemental count day of the current school year, as

determined by the department. Membership shall be calculated by

adding the number of pupils registered for attendance in that grade

level on the pupil membership count day plus pupils received by

transfer and minus pupils lost as defined by rules promulgated by

the superintendent, and as corrected by subsequent department

audit, plus the final audited count from the supplemental count day

for the current school year, and dividing that sum by 2.

(t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours required under section 101 for full-time equivalency. For the

purposes of this subdivision, a district shall be considered to be

providing appropriate instruction if all of the following are met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies that are comparable to those otherwise provided in the

district's alternative education program.

(iii) Course content is comparable to that in the district's

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

within 45 days after the pupil membership count day, the department

shall adjust the district's pupil count for the pupil membership

count day to include the pupil in the count.

(w) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .90 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .10 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(x) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and if the district does not

receive funding under section 22d(2), the district's membership

shall be considered to be the membership figure calculated under

this subdivision. If a district educates and counts in its

membership pupils in grades 9 to 12 who reside in a contiguous

district that does not operate grades 9 to 12 and if 1 or both of

the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

number of pupils per square mile for each of the districts for the

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

(ii) The district's actual membership for that fiscal year as

otherwise calculated under this subsection.

(y) Full-time equated memberships for special education pupils

who are not enrolled in kindergarten but are enrolled in a

classroom program under R 340.1754 of the Michigan Administrative

Code shall be determined by dividing the number of class hours

scheduled and provided per year by 450. Full-time equated

memberships for special education pupils who are not enrolled in

kindergarten but are receiving early childhood special education

services under R 340.1755 or R 340.1862 of the Michigan

Administrative Code shall be determined by dividing the number of

hours of service scheduled and provided per year per-pupil by 180.

(z) A pupil of a district that begins its school year after

Labor Day who is enrolled in an intermediate district program that

begins before Labor Day shall not be considered to be less than a

full-time pupil solely due to instructional time scheduled but not

attended by the pupil before Labor Day.

(aa) For the first year in which a pupil is counted in

membership on the pupil membership count day in a middle college

program, the membership is the average of the full-time equated

membership on the pupil membership count day and on the

supplemental count day for the current school year, as determined

by the department. If a pupil described in this subdivision was

counted in membership by the operating district on the immediately

preceding supplemental count day, the pupil shall be excluded from

the district's immediately preceding supplemental count for the

purposes of determining the district's membership.

(bb) A district or public school academy that educates a pupil

who attends a United States Olympic Education Center may count the

pupil in membership regardless of whether or not the pupil is a

resident of this state.

(cc) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148, shall be counted in the educating

district.

(dd) For a pupil enrolled in a dropout recovery program that

meets the requirements of section 23a, the pupil shall be counted

as 1/12 of a full-time equated membership for each month that the

district operating the program reports that the pupil was enrolled

in the program and was in full attendance. However, if the special

membership counting provisions under this subdivision and the

operation of the other membership counting provisions under this

subsection result in a pupil being counted as more than 1.0 FTE in

a fiscal year, the payment made for the pupil under sections 22a

and 22b shall not be based on more than 1.0 FTE for that pupil, and

any portion of an FTE for that pupil that exceeds 1.0 shall instead

be paid under section 25g. The district operating the program shall

report to the center the number of pupils who were enrolled in the

program and were in full attendance for a month not later than 30

days after the end of the month. A district shall not report a

pupil as being in full attendance for a month unless both of the

following are met:

(i) A personalized learning plan is in place on or before the

first school day of the month for the first month the pupil

participates in the program.

(ii) The pupil meets the district's definition under section

23a of satisfactory monthly progress for that month or, if the

pupil does not meet that definition of satisfactory monthly

progress for that month, the pupil did meet that definition of

satisfactory monthly progress in the immediately preceding month

and appropriate interventions are implemented within 10 school days

after it is determined that the pupil does not meet that definition

of satisfactory monthly progress.

(ee) A pupil participating in a virtual course under section

21f shall be counted in membership in the district enrolling the

pupil.

(ff) If a public school academy that is not in its first or

second year of operation closes at the end of a school year and

does not reopen for the next school year, the department shall

adjust the membership count of the district or other public school

academy in which a former pupil of the closed public school academy

enrolls and is in regular daily attendance for the next school year

to ensure that the district or other public school academy receives

the same amount of membership aid for the pupil as if the pupil

were counted in the district or other public school academy on the

supplemental count day of the preceding school year.

(gg) If a special education pupil is expelled under section

1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a, and is not in attendance on the pupil membership count

day because of the expulsion, and if the pupil remains enrolled in

the district and resumes regular daily attendance during that

school year, the district's membership shall be adjusted to count

the pupil in membership as if he or she had been in attendance on

the pupil membership count day.

(hh) A pupil enrolled in a community district shall be counted

in membership in the community district.

(ii) A part-time pupil enrolled in a nonpublic school in

grades K to 12 in accordance with section 166b shall not be counted

as more than 0.75 of a full-time equated membership.

(jj) A district that borders another state or a public school

academy that operates at least grades 9 to 12 and is located within

20 miles of a border with another state may count in membership a

pupil who is enrolled in a course at a college or university that

is located in the bordering state and within 20 miles of the border

with this state if all of the following are met:

(i) The pupil would meet the definition of an eligible student

under the postsecondary enrollment options act, 1996 PA 160, MCL

388.511 to 388.524, if the course were an eligible course under

that act.

(ii) The course in which the pupil is enrolled would meet the

definition of an eligible course under the postsecondary enrollment

options act, 1996 PA 160, MCL 388.511 to 388.524, if the course

were provided by an eligible postsecondary institution under that

act.

(iii) The department determines that the college or university

is an institution that, in the other state, fulfills a function

comparable to a state university or community college, as those

terms are defined in section 3 of the postsecondary enrollment

options act, 1996 PA 160, MCL 388.513, or is an independent

nonprofit degree-granting college or university.

(iv) The district or public school academy pays for a portion

of the pupil's tuition at the college or university in an amount

equal to the eligible charges that the district or public school

academy would pay to an eligible postsecondary institution under

the postsecondary enrollment options act, 1996 PA 160, MCL 388.511

to 388.524, as if the course were an eligible course under that

act.

(v) The district or public school academy awards high school

credit to a pupil who successfully completes a course as described

in this subdivision.

(kk) A pupil enrolled in a middle college program may be

counted for more than a total of 1.0 full-time equated membership

if the pupil is enrolled in more than the minimum number of

instructional days and hours required under section 101 and the

pupil is expected to complete the 5-year program with both a high

school diploma and at least 60 transferable college credits or is

expected to earn an associate's degree in fewer than 5 years.

(ll) If a district's or public school academy's membership for

a particular fiscal year, as otherwise calculated under this

subsection, includes pupils counted in membership who are enrolled

under section 166b, all of the following apply for the purposes of

this subdivision:

(i) If the district's or public school academy's membership

for pupils counted under section 166b equals or exceeds 5% of the

district's or public school academy's membership for pupils not

counted in membership under section 166b in the immediately

preceding fiscal year, then the growth in the district's or public

school academy's membership for pupils counted under section 166b

must not exceed 10%.

(ii) If the district's or public school academy's membership

for pupils counted under section 166b is less than 5% of the

district's or public school academy's membership for pupils not

counted in membership under section 166b in the immediately

preceding fiscal year, then the district's or public school

academy's membership for pupils counted under section 166b must not

exceed the greater of the following:

(A) 5% of the district's or public school academy's membership

for pupils not counted in membership under section 166b.

(B) 10% more than the district's or public school academy's

membership for pupils counted under section 166b in the immediately

preceding fiscal year.

(iii) If 1 or more districts consolidate or are parties to an

annexation, then the calculations under subdivisions (i) and (ii)

must be applied to the combined total membership for pupils counted

in those districts for the fiscal year immediately preceding the

consolidation or annexation.

(mm) If Beginning with the 2019-2020 school year, if a

district, intermediate district, or public school academy charges

tuition for a pupil that resided out of state in the immediately

preceding school year, the pupil shall not be counted in membership

in the district, intermediate district, or public school academy.

(5) "Public school academy" means that term as defined in

section 5 of the revised school code, MCL 380.5.

(6) "Pupil" means an individual in membership in a public

school. A district must have the approval of the pupil's district

of residence to count the pupil in membership, except approval by

the pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades K to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90h, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(i) A pupil enrolled in the Michigan Virtual School, for the

pupil's enrollment in the Michigan Virtual School.

(j) A pupil who is the child of a person who works at the

district or who is the child of a person who worked at the district

as of the time the pupil first enrolled in the district but who no

longer works at the district due to a workforce reduction. As used

in this subdivision, "child" includes an adopted child, stepchild,

or legal ward.

(k) An expelled pupil who has been denied reinstatement by the

expelling district and is reinstated by another school board under

section 1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a.

(l) A pupil enrolled in a district other than the pupil's

district of residence in a middle college program if the pupil's

district of residence and the enrolling district are both

constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil's

district of residence who attends a United States Olympic Education

Center.

(n) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148.

(o) A pupil who enrolls in a district other than the pupil's

district of residence as a result of the pupil's school not making

adequate yearly progress under the no child left behind act of

2001, Public Law 107-110, or the every student succeeds act, Public

Law 114-95.

However, except for pupils enrolled in the youth challenge

program at the site at which the youth challenge program operated

for 2015-2016, if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

(7) "Pupil membership count day" of a district or intermediate

district means:

(a) Except as provided in subdivision (b), the first Wednesday

in October each school year or, for a district or building in which

school is not in session on that Wednesday due to conditions not

within the control of school authorities, with the approval of the

superintendent, the immediately following day on which school is in

session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) First Wednesday in October.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

day and who does not attend each of those classes during the 10

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, shall not be counted as 1.0 full-time

equated membership. A pupil who is excused from attendance on the

pupil membership count day or supplemental count day and who fails

to attend each of the classes in which the pupil is enrolled within

30 calendar days after the pupil membership count day or

supplemental count day shall not be counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, intermediate district, or public school

academy before the pupil membership count day or supplemental count

day of a particular year but was expelled or suspended on the pupil

membership count day or supplemental count day shall only be

counted as 1.0 full-time equated membership if the pupil resumed

attendance in the district, intermediate district, or public school

academy within 45 days after the pupil membership count day or

supplemental count day of that particular year. Pupils not counted

as 1.0 full-time equated membership due to an absence from a class

shall be counted as a prorated membership for the classes the pupil

attended. For purposes of this subsection, "class" means a period

of time in 1 day when pupils and a certificated teacher, a teacher

engaged to teach under section 1233b of the revised school code,

MCL 380.1233b, or an individual working under a valid substitute

permit, authorization, or approval issued by the department, are

together and instruction is taking place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means the revised school code,

1976 PA 451, MCL 380.1 to 380.1852.

(11) "School district of the first class", "first class school

district", and "district of the first class" mean, for the purposes

of this article only, a district that had at least 40,000 pupils in

membership for the immediately preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(13) "State board" means the state board of education.

(14) "Superintendent", unless the context clearly refers to a

district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(15) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(16) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged to the district of residence.

Tuition pupil does not include a pupil who is a special education

pupil, a pupil described in subsection (6)(c) to (o), or a pupil

whose parent or guardian voluntarily enrolls the pupil in a

district that is not the pupil's district of residence. A pupil's

district of residence shall not require a high school tuition

pupil, as provided under section 111, to attend another school

district after the pupil has been assigned to a school district.

(17) "State school aid fund" means the state school aid fund

established in section 11 of article IX of the state constitution

of 1963.

(18) "Taxable value" means the taxable value of property as

determined under section 27a of the general property tax act, 1893

PA 206, MCL 211.27a.

(19) "Textbook" means a book, electronic book, or other

instructional print or electronic resource that is selected and

approved by the governing board of a district and that contains a

presentation of principles of a subject, or that is a literary work

relevant to the study of a subject required for the use of

classroom pupils, or another type of course material that forms the

basis of classroom instruction.

(20) "Total state aid" or "total state school aid" means the

total combined amount of all funds due to a district, intermediate

district, or other entity under this article.

Sec. 11. (1) For the fiscal year ending September 30, 2018,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

$12,682,127,200.00 from the state school aid fund, the sum of

$78,500,000.00 from the general fund, an amount not to exceed

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

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

489, MCL 12.262, an amount not to exceed $23,100,000.00 from the

MPSERS retirement obligation reform reserve fund, and an amount not

to exceed $100.00 from the water emergency reserve fund. For the

fiscal year ending September 30, 2019, there is appropriated for

the public schools of this state and certain other state purposes

relating to education the sum of $12,876,825,200.00 from the state

school aid fund, the sum of ~~$60,000,000.00~~ $87,920,000.00 from the

general fund, an amount not to exceed $72,000,000.00 from the

community district education trust fund created under section 12 of

the Michigan trust fund act, 2000 PA 489, MCL 12.262, an amount not

to exceed $31,900,000.00 from the MPSERS retirement obligation

reform reserve fund, an amount not to exceed $30,000,000.00 from

the school mental health and support services fund created under

section 31m, and an amount not to exceed $100.00 from the water

emergency reserve fund. In addition, all available federal funds

are appropriated each fiscal year for the fiscal years ending

September 30, 2018 and September 30, 2019.

(2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

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

this article before the expenditure of money appropriated under

this section from the state school aid fund.

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

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

the school aid stabilization fund created under section 11a.

Sec. 17c. (1) Except as otherwise provided under this article,

the department shall do both of the following for funds

appropriated under this article for grants distributed by the

department to districts, intermediate districts, and eligible

entities:

(a) Not later than September 1 of each fiscal year, open the

grant application for funds appropriated for the subsequent fiscal

year. The department shall also provide to districts, intermediate

districts, and eligible entities, and post on its publicly

accessible website, the grant application and award process

schedule and the list of state grants and contracts available in

the subsequent fiscal year.

(b) Not later than December 1 of each fiscal year, publish

grant awards for funds appropriated in that fiscal year.

(2) Information for grants awarded from funds appropriated

under this article must be placed on the state board agenda in

August of the preceding fiscal year. However, this subsection does

not apply to grants awarded, directly or indirectly, from federal

funds or federal grants.

Sec. 18. (1) Except as provided in another section of this

article, each district or other entity shall apply the money

received by the district or entity under this article to salaries

and other compensation of teachers and other employees, tuition,

transportation, lighting, heating, ventilation, water service, the

purchase of textbooks, other supplies, and any other school

operating expenditures defined in section 7. However, not more than

20% of the total amount received by a district under sections 22a

and 22b or received by an intermediate district under section 81

may be transferred by the board to either the capital projects fund

or to the debt retirement fund for debt service. The money shall

not be applied or taken for a purpose other than as provided in

this section. The department shall determine the reasonableness of

expenditures and may withhold from a recipient of funds under this

article the apportionment otherwise due upon a violation by the

recipient.

(2) A district or intermediate district shall adopt an annual

budget in a manner that complies with the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days

after a district board adopts its annual operating budget for the

following school fiscal year, or after a district board adopts a

subsequent revision to that budget, the district shall make all of

the following available through a link on its website homepage, or

may make the information available through a link on its

intermediate district's website homepage, in a form and manner

prescribed by the department:

(a) The annual operating budget and subsequent budget

revisions.

(b) Using data that have already been collected and submitted

to the department, a summary of district expenditures for the most

recent fiscal year for which they are available, expressed in the

following 2 visual displays:

(i) A chart of personnel expenditures, broken into the

following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

(ii) A chart of all district expenditures, broken into the

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not

limited to, medical, dental, vision, disability, long-term care, or

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee in the

district.

(iii) The audit report of the audit conducted under subsection

(4) for the most recent fiscal year for which it is available.

(iv) The bids required under section 5 of the public employees

health benefit act, 2007 PA 106, MCL 124.75.

(v) The district's written policy governing procurement of

supplies, materials, and equipment.

(vi) The district's written policy establishing specific

categories of reimbursable expenses, as described in section

1254(2) of the revised school code, MCL 380.1254.

(vii) Either the district's accounts payable check register

for the most recent school fiscal year or a statement of the total

amount of expenses incurred by board members or employees of the

district that were reimbursed by the district for the most recent

school fiscal year.

(d) The total salary and a description and cost of each fringe

benefit included in the compensation package for the superintendent

of the district and for each employee of the district whose salary

exceeds $100,000.00.

(e) The annual amount spent on dues paid to associations.

(f) The annual amount spent on lobbying or lobbying services.

As used in this subdivision, "lobbying" means that term as defined

in section 5 of 1978 PA 472, MCL 4.415.

(g) Any deficit elimination plan or enhanced deficit

elimination plan the district was required to submit under the

revised school code.

(h) Identification of all credit cards maintained by the

district as district credit cards, the identity of all individuals

authorized to use each of those credit cards, the credit limit on

each credit card, and the dollar limit, if any, for each

individual's authorized use of the credit card.

(i) Costs incurred for each instance of out-of-state travel by

the school administrator of the district that is fully or partially

paid for by the district and the details of each of those instances

of out-of-state travel, including at least identification of each

individual on the trip, destination, and purpose.

(3) For the information required under subsection (2)(a),

(2)(b)(i), and (2)(c), an intermediate district shall provide the

same information in the same manner as required for a district

under subsection (2).

(4) For the purposes of determining the reasonableness of

expenditures, whether a district or intermediate district has

received the proper amount of funds under this article, and whether

a violation of this article has occurred, all of the following

apply:

(a) The department shall require that each district and

intermediate district have an audit of the district's or

intermediate district's financial and pupil accounting records

conducted at least annually, and at such other times as determined

by the department, at the expense of the district or intermediate

district, as applicable. The audits must be performed by a

certified public accountant or by the intermediate district

superintendent, as may be required by the department, or in the

case of a district of the first class by a certified public

accountant, the intermediate superintendent, or the auditor general

of the city. A district or intermediate district shall retain these

records for the current fiscal year and from at least the 3

immediately preceding fiscal years.

(b) If a district operates in a single building with fewer

than 700 full-time equated pupils, if the district has stable

membership, and if the error rate of the immediately preceding 2

pupil accounting field audits of the district is less than 2%, the

district may have a pupil accounting field audit conducted

biennially but must continue to have desk audits for each pupil

count. The auditor must document compliance with the audit cycle in

the pupil auditing manual. As used in this subdivision, "stable

membership" means that the district's membership for the current

fiscal year varies from the district's membership for the

immediately preceding fiscal year by less than 5%.

audit shall include an analysis of the financial and pupil

accounting data used as the basis for distribution of state school

aid.

(d) The pupil and financial accounting records and reports,

audits, and management letters are subject to requirements

established in the auditing and accounting manuals approved and

published by the department.

(e) All of the following shall be done not later than November

1 each year for reporting the prior fiscal year data:

(i) A district shall file the annual financial audit reports

with the intermediate district and the department.

(ii) The intermediate district shall file the annual financial

audit reports for the intermediate district with the department.

(iii) The intermediate district shall enter the pupil

membership audit reports for its constituent districts and for the

intermediate district, for the pupil membership count day and

supplemental count day, in the Michigan student data system.

(f) The annual financial audit reports and pupil accounting

procedures reports shall be available to the public in compliance

with the freedom of information act, 1976 PA 442, MCL 15.231 to

15.246.

(g) Not later than January 31 of each year, the department

shall notify the state budget director and the legislative

appropriations subcommittees responsible for review of the school

aid budget of districts and intermediate districts that have not

filed an annual financial audit and pupil accounting procedures

report required under this section for the school year ending in

the immediately preceding fiscal year.

(5) By November 1 each fiscal year, each district and

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

consistent with the district's or intermediate district's audited

financial statements and consistent with accounting manuals and

charts of accounts approved and published by the department. For an

intermediate district, the report shall also contain the website

address where the department can access the report required under

section 620 of the revised school code, MCL 380.620. The department

shall ensure that the prescribed Michigan public school accounting

manual chart of accounts includes standard conventions to

distinguish expenditures by allowable fund function and object. The

functions shall include at minimum categories for instruction,

pupil support, instructional staff support, general administration,

school administration, business administration, transportation,

facilities operation and maintenance, facilities acquisition, and

debt service; and shall include object classifications of salary,

benefits, including categories for active employee health

expenditures, purchased services, supplies, capital outlay, and

other. Districts shall report the required level of detail

consistent with the manual as part of the comprehensive annual

financial report.

(6) By September 30 of each year, each district and

intermediate district shall file with the center the special

education actual cost report, known as "SE-4096", on a form and in

the manner prescribed by the center. An intermediate district shall

~~perform~~ certify the audit of a district's report.

(7) By October 7 of each year, each district and intermediate

district shall file with the center the audited transportation

expenditure report, known as "SE-4094", on a form and in the manner

prescribed by the center. An intermediate district shall ~~perform~~

certify the audit of a district's report.

(8) The department shall review its pupil accounting and pupil

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this article.

(9) If a district that is a public school academy purchases

property using money received under this article, the public school

academy shall retain ownership of the property unless the public

school academy sells the property at fair market value.

(10) If a district or intermediate district does not comply

with subsections (4), (5), (6), (7), and (12), or if the department

determines that the financial data required under subsection (5)

are not consistent with audited financial statements, the

department shall withhold all state school aid due to the district

or intermediate district under this article, beginning with the

next payment due to the district or intermediate district, until

the district or intermediate district complies with subsections

(4), (5), (6), (7), and (12). If the district or intermediate

district does not comply with subsections (4), (5), (6), (7), and

(12) by the end of the fiscal year, the district or intermediate

district forfeits the amount withheld.

(11) If a district or intermediate district does not comply

with subsection (2), the department may withhold up to 10% of the

total state school aid due to the district or intermediate district

under this article, beginning with the next payment due to the

district or intermediate district, until the district or

intermediate district complies with subsection (2). If the district

or intermediate district does not comply with subsection (2) by the

end of the fiscal year, the district or intermediate district

forfeits the amount withheld.

(12) By November 1 of each year, if a district or intermediate

district offers virtual learning under section 21f, or for a school

of excellence that is a cyber school, as defined in section 551 of

the revised school code, MCL 380.551, the district or intermediate

district shall submit to the department a report that details the

per-pupil costs of operating the virtual learning by vendor type

and virtual learning model. The report shall include information

concerning the operation of virtual learning for the immediately

preceding school fiscal year, including information concerning

summer programming. Information must be collected in a form and

manner determined by the department and must be collected in the

most efficient manner possible to reduce the administrative burden

on reporting entities.

(13) By March 31 of each year, the department shall submit to

the house and senate appropriations subcommittees on state school

aid, the state budget director, and the house and senate fiscal

agencies a report summarizing the per-pupil costs by vendor type of

virtual courses available under section 21f and virtual courses

provided by a school of excellence that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551.

(14) As used in subsections (12) and (13), "vendor type" means

the following:

(a) Virtual courses provided by the Michigan Virtual

University.

(b) Virtual courses provided by a school of excellence that is

a cyber school, as defined in section 551 of the revised school

code, MCL 380.551.

affiliated with a Michigan public school.

(d) Virtual courses created and offered by a district or

intermediate district.

(15) An allocation to a district or another entity under this

article is contingent upon the district's or entity's compliance

with this section.

(16) Beginning October 1, 2018, and annually thereafter, the

department shall submit to the senate and house subcommittees on

school aid and to the senate and house standing committees on

education an itemized list of allocations under this article to any

association or consortium consisting of associations in the

immediately preceding fiscal year. The report shall detail the

recipient or recipients, the amount allocated, and the purpose for

which the funds were distributed.

Sec. 23a. (1) A dropout recovery program operated by a

district qualifies for the special membership counting provisions

of section 6(4)(dd) and the hours and day of pupil instruction

exemption under section 101(12) if the dropout recovery program

meets all of the following:

(a) Enrolls only eligible pupils.

(b) Provides an advocate or teacher of record, or both. An

advocate may serve in that role for more than 1 pupil but no more

than 50 pupils. An advocate or teacher of record may be employed by

the district or may be provided by an education management

organization that is partnering with the district. Before an

individual is assigned to be an advocate or teacher of record for a

pupil in the dropout recovery program, the district shall comply

with sections 1230 and 1230a of the revised school code, MCL

380.1230 and 380.1230a, with respect to that individual.

(d) Monitors the pupil's progress against the written learning

plan.

(e) Requires each pupil to make satisfactory monthly progress,

as defined by the district under subsection (2).

(f) Reports the pupil's progress results to the partner

district at least monthly.

(g) The program may be operated on or off a district school

campus, but may be operated using distance learning online only if

the program provides a computer and Internet access for each

eligible pupil participating in the program.

(h) Is operated throughout the entire calendar year.

(i) If the district partners with an education management

organization for the program, the education management organization

has a dropout recovery program partnership relationship with at

least 1 other district.

(2) A district operating a dropout recovery program under this

section shall adopt a definition of satisfactory monthly progress

that is consistent with the definition of that term under

subsection (3).

(3) As used in this section:

(a) "Advocate" means an adult available to meet in person with

assigned pupils, as needed, to conduct social interventions, to

proctor final examinations, and to provide academic and social

support to pupils enrolled in the district's dropout recovery

program.

(b) "Education management organization" means a private

provider that operates 1 or more other dropout recovery programs

that meet the requirements of this section in partnership with 1 or

more districts.

school under the mandatory expulsion provisions in section 1311 or

1311a of the revised school code, MCL 380.1311 and 380.1311a, a

pupil who has been suspended or expelled from school under a local

policy, a pupil who is referred by a court, a pupil who is pregnant

or is a parent, a pupil who was previously a dropout, or a pupil

who is determined by the district to be at risk of dropping out.

(d) "Satisfactory monthly progress" means an amount of

progress that is measurable on a monthly basis and that, if

continued for a full 12 months, would result in the same amount of

academic credit being awarded to the pupil as would be awarded to a

general education pupil completing a full school year. Satisfactory

monthly progress may include a lesser required amount of progress

for the first 2 months a pupil participates in the program.

(e) "Teacher of record" means a teacher who holds a valid

Michigan teaching certificate; who, if applicable, is endorsed in

the subject area and grade of the course; and is responsible for

providing instruction, determining instructional methods for each

pupil, diagnosing learning needs, assessing pupil learning,

prescribing intervention strategies, reporting outcomes, and

evaluating the effects of instruction and support strategies. Until

February 1, 2020, if the district partners with an education

management organization for the program, the teacher of record may

be employed by or contracted through the education management

organization.

(f) "Written learning plan" means a written plan developed in

conjunction with the advocate that includes the plan start and end

dates, courses to be taken, credit to be earned for each course,

teacher of record for each course, and advocate name and contact

information.

Sec. 24c. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$1,528,400.00~~ $1,545,400.00 for

2018-2019 for payments to districts for pupils who are enrolled in

a nationally administered community-based education and youth

mentoring program, known as the youth challenge program, that is

administered by the department of military and veterans affairs.

Both of the following apply to a district receiving payments under

this section:

(a) The district shall contract with the department of

military and veterans affairs to ensure that all funding allocated

under this section is utilized by the district and the department

of military and veterans affairs for the youth challenge program.

(b) The district may retain for its administrative expenses an

amount not to exceed 3% of the amount of the payment the district

receives under this section.

(2) In addition to the funds allocated under subsection (1),

from the appropriation in section 11, there is allocated an amount

not to exceed $80,000.00 for 2018-2019 to a district for pupils who

enrolled in the youth challenge program but dropped out before the

pupil membership count day. The district shall use these funds to

support the youth challenge program.

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

appropriated in section 11, there is allocated for 2018-2019 an

amount not to exceed ~~$510,207,300.00~~ $528,207,300.00 for payments

to eligible districts and eligible public school academies for the

purposes of ensuring that pupils are proficient in English language

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

mathematics by the end of grade 8, that pupils are attending school

regularly, that high school graduates are career and college ready,

and for the purposes under subsections (7) and (8).

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

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

the basic foundation allowance under section 20 for the current

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

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

eligible under this section before any proration under subsection

(14).

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

receive funding under this section, other than funding under

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

grades K to 12, shall comply with the requirements under section

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

resources to address early literacy and numeracy, and for at least

grades K to 12 or, if the district or public school academy does

not operate all of grades K to 12, for all of the grades it

operates, must implement a multi-tiered system of supports that is

an evidence-based framework that uses data-driven problem solving

to integrate academic and behavioral instruction and that uses

intervention delivered to all pupils in varying intensities based

on pupil needs. The multi-tiered system of supports described in

this subsection must provide at least all of the following

essential components:

(a) Team-based leadership.

(b) A tiered delivery system.

interventions, and supports.

(d) A comprehensive screening and assessment system.

(e) Continuous data-based decision making.

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

eligible district or eligible public school academy shall receive

under this section for each membership pupil in the district or

public school academy who is determined to be economically

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

prescribed by the center not later than the fifth Wednesday after

the pupil membership count day of the immediately preceding fiscal

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

average foundation allowance. However, a public school academy that

began operations as a public school academy after the pupil

membership count day of the immediately preceding school year shall

receive under this section for each membership pupil in the public

school academy, who is determined to be economically disadvantaged,

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

center not later than the fifth Wednesday after the pupil

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

pupil equal to 11.5% of the statewide weighted average foundation

allowance.

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

or public school academy receiving funding under this section shall

use that money only to provide instructional programs and direct

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

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

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

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

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

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

economically disadvantaged in the immediately preceding state

fiscal year, as determined and reported as described in subsection

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

section for school security. A district or public school academy

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

instruction or direct noninstructional services provided under this

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

adding extra school days to the school year. Funds spent on school

security under this subsection must be counted toward required

spending under subsection ~~(16)(b).~~(16)(c).

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

under this section and that operates a school breakfast program

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

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

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

academy receives funds under this section, necessary to pay for

costs associated with the operation of the school breakfast

program.

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

allocated for 2018-2019 an amount not to exceed $6,057,300.00 to

support primary health care services provided to children and

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

and manner determined jointly by the department and the department

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

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

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

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

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

year.

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

allocated for 2018-2019 an amount not to exceed $5,150,000.00 for

the state portion of the hearing and vision screenings as described

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

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

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

screenings shall be as required under R 325.13091 to R 325.13096

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

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

department and the department of health and human services.

Notwithstanding section 17b, payments to eligible entities under

this subsection shall be paid on a schedule determined by the

department.

(9) Each district or public school academy receiving funds

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

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

department, that includes a brief description of each program

conducted or services performed by the district or public school

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

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

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

services, and the data necessary for the department and the

department of health and human services to verify matching funds

for the temporary assistance for needy families program. In

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

ensure that districts are allowed to expend funds received under

this section on any activities that are permissible under this

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

with this subsection, the department shall withhold an amount equal

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

public school academy complies with this subsection. If the

district or public school academy does not comply with this

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

shall be forfeited to the school aid fund.

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

or public school academy shall allow access for the department or

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

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

school academy shall reimburse the state for all disallowances

found in the audit.

(11) Subject to subsections (6), (7), and (8), for schools in

which more than 40% of pupils are identified as at-risk, a district

or public school academy may use the funds it receives under this

section to implement schoolwide reforms that are guided by the

district's comprehensive needs assessment and are included in the

district improvement plan. Schoolwide reforms must include parent

and community supports, activities, and services, that may include

the pathways to potential program created by the department of

health and human services or the communities in schools program.

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

under this section may use up to 5% of those funds to provide

research-based professional development and to implement a coaching

model that supports the multi-tiered system of supports framework.

Professional development may be provided to district and school

leadership and teachers and must be aligned to professional

learning standards; integrated into district, school building, and

classroom practices; and solely related to the following:

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

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

system to inform curriculum and instruction.

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

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

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

under this section may use funds received under this section to

support instructional or behavioral coaches. Funds used for this

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

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

section 296, the department shall prorate payments under this

section, except payments under subsection (7), (8), or (17), by

reducing the amount of the allocation as otherwise calculated under

this section by an equal percentage per district.

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

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

the dissolved school district was constituent shall determine the

estimated number of pupils that are economically disadvantaged and

that are enrolled in each of the other districts within the

intermediate district and provide that estimate to the department

for the purposes of distributing funds under this section within 60

days after the school district is declared dissolved.

(16) Beginning in 2019-2020, if a district or public school

academy does not demonstrate to the satisfaction of the department

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

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

assessment for the immediately preceding school year or have

achieved at least 1 year's growth in English language arts during

grade 3 as measured by a local benchmark assessment for the

immediately preceding school year, demonstrate to the satisfaction

of the department that at least 50% of at-risk pupils are

proficient in mathematics by the end of grade 8 as measured by the

state assessment for the immediately preceding school year or have

achieved at least 1 year's growth in mathematics during grade 8 as

measured by a local benchmark assessment for the immediately

preceding school year, and demonstrate to the satisfaction of the

department improvement over each of the 3 immediately preceding

school years in the percentage of at-risk pupils that are career-

and college-ready as determined by proficiency on the English

language arts, mathematics, and science content area assessments on

the grade 11 summative assessment under section 1279g(2)(a) of the

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

academy shall ensure all of the following:

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

proportion of ~~total~~ at-risk pupils in grade 3 that represents the

number of at-risk pupils in grade 3 that are not proficient in

English language arts by the end of grade 3 or that did not achieve

at least 1 year's growth in English language arts during grade 3,

and the district or public school academy shall expend that same

proportion multiplied by 1/3 of its total at-risk funds under this

section on tutoring and other methods of improving grade 3 English

language arts proficiency or growth.

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

proportion of ~~total~~ at-risk pupils in grade 8 that represents the

number of at-risk pupils in grade 8 that are not proficient in

mathematics by the end of grade 8 or that did not achieve at least

1 year's growth in mathematics during grade 8, and the district or

public school academy shall expend that same proportion multiplied

by 1/3 of its total at-risk funds under this section on tutoring

and other methods of improving grade 8 mathematics proficiency or

growth.

proportion of ~~total~~ at-risk pupils in grade 11 that ~~represent~~

represents the number of at-risk pupils in grade 11 that are not

career- and college-ready as measured by the student's score on the

English language arts, mathematics, and science content area

assessments on the grade 11 summative assessment under section

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

district or public school academy shall expend that same proportion

multiplied by 1/3 of its total at-risk funds under this section on

tutoring and other activities to improve scores on the college

entrance examination portion of the Michigan merit examination.

~~(17) As used in subsection (16), "total at-risk pupils" means~~

~~the sum of the number of pupils in grade 3 that are at-risk and the~~

~~number of pupils in grade 8 that are at-risk and the number of~~

~~pupils in grade 11 that are at-risk.~~

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

allocated for 2018-2019 an amount not to exceed $18,000,000.00 for

payments to districts and public school academies that otherwise

received an allocation under this section in 2018-2019 and that

allocation was less than the district's or public school academy's

allocation under this section in 2017-2018. The allocation for each

district or public school academy under this subsection is an

amount equal to its allocation under this section in 2017-2018

minus its allocation as otherwise calculated under this section for

2018-2019. If necessary, and before any proration required under

section 296, the department shall prorate payments under this

subsection by reducing the amount of the allocation as otherwise

calculated under this subsection by an equal percentage per

district or public school academy.

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

under this section may use funds received under this section to

provide an anti-bullying or crisis intervention program.

(19) The department shall collaborate with the department of

health and human services to prioritize assigning Pathways to

Potential Success coaches to elementary schools that have a high

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

English language arts, based upon state assessments for pupils in

those grades.

(20) As used in this section:

(a) "At-risk pupil" means a pupil in grades K to 12 for whom

the district has documentation that the pupil meets any of the

following criteria:

(i) The pupil is economically disadvantaged.

(ii) The pupil is an English language learner.

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

reported to the center.

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

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

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

incarceration, or substance abuse.

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

immediately preceding 3 years.

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

is still continuing in school as identified in the Michigan cohort

graduation and dropout report.

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

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

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

social studies content area assessment.

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

public school academy's core academic curricular objectives in

English language arts or mathematics, as demonstrated on local

assessments.

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

determined eligible for free or reduced-price meals as determined

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

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

assistance program or temporary assistance for needy families

assistance; or who is homeless, migrant, or in foster care, as

reported to the center.

proficient pupils who speak a language other than English as their

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

understanding English as reported to the center.

(d) "Statewide weighted average foundation allowance" means

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

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

pupil payment calculated under section 20 multiplied by the number

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

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

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

foundation allowance shall not exceed the basic foundation

allowance under section 20 for the current state fiscal year.

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

section 11, there is allocated an amount not to exceed $575,000.00

for 2018-2019 for a pilot project to support districts in the

purchase of locally grown fruits and vegetables as described in

this section.

(2) The department shall provide funding in an amount equal to

$125,000.00 per region to districts in prosperity regions 2, 4, 6,

and 9 for the pilot project described under this section. In

addition, the department shall provide funding in an amount equal

to $75,000.00 to districts in prosperity region 8 for the pilot

project described under this section. From the funding to districts

in subsection (1), funding retained by prosperity regions that

administer the project shall not exceed 10%, and funding retained

by the department for administration shall not exceed 6%. A

prosperity region may enter into a memorandum of understanding with

the department or another prosperity region, or both, to administer

the project. If the department administers the project for a

prosperity region, the department may retain up to 10% of that

prosperity region's funding for administration.

(3) The department shall develop and implement a competitive

grant program for districts within the identified prosperity

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

to purchase or increase purchases of whole or minimally processed

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

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

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

the previous school year under the Richard B. Russell national

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

collaborate with the Michigan department of agriculture and rural

development to provide training to newly participating schools and

electronic information on Michigan agriculture.

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

nutrition and eating habits for children through the school

settings while investing in Michigan's agricultural and related

food business economy.

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

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

purchase whole or minimally processed fruits, vegetables, and

legumes that meet all of the following:

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

notification from the department of the amount to be distributed to

the district under this subsection, including purchases made to

launch meals in September 2018 for the 2018-2019 ~~school~~ fiscal

year.

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

also processed in this state.

States Department of Agriculture's child nutrition programs.

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

satisfy the requirements of subsection (5), matching reimbursements

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

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

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

fruits, vegetables, and legumes.

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

this section shall use the grant to purchase whole or minimally

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

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

state.

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

shall work in conjunction with prosperity region offices, in

consultation with Michigan-based farm to school resource

organizations, to develop scoring criteria that assess an

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

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

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

educational activities that promote the goals of the program.

(9) The department shall give preference to districts that

propose educational activities that meet 1 or more of the

following: promote healthy food activities; have clear educational

objectives; involve parents or the community; connect to a school's

farm-to-school procurement activities; and market and promote the

program, leading to increased pupil knowledge and consumption of

Michigan-grown products. Applications with robust marketing and

promotional activities shall receive stronger weighting and

consideration.

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

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

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

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

school sizes and geographic locations within the identified

prosperity regions; and existing or future collaboration

opportunities between more than 1 district in a prosperity region.

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

district shall provide or direct its vendors to provide to

prosperity region offices copies of monthly receipts that show the

quantity of different Michigan-grown fruits, vegetables, and

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

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

products, and the methods or plans to market and promote the

program. The district shall also provide to the prosperity region

monthly lunch numbers and lunch participation rates, and calendars

or monthly menus noting when and how Michigan-grown products were

used in meals. The district and school food service director or

directors also shall agree to respond to brief online surveys and

to provide a report that shows the percentage relationship of

Michigan spending compared to total food spending. Not later than

March 1, 2019, each prosperity region office, either on its own or

in conjunction with another prosperity region, shall submit a

report to the department on expected outcomes and related

measurements for economic development and children's nutrition and

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

include at least all of the following:

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

including distributors and processors, see an increase in market

opportunities and income generation through sales of Michigan or

local products to districts. All of the following apply for

purposes of this subdivision:

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

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

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

of different types of products purchased; school food purchasing

trends identified along with products that are of new and growing

interest among food service directors; the number of businesses

impacted; and the percentage of total food budget spent on

Michigan-grown fruits, vegetables, and legumes.

(ii) The prosperity region office shall use purchasing data

collected for the project and surveys of school food service

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

for the data described in subparagraph (i).

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

healthy Michigan-grown foods through schools and increase their

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

of this subdivision:

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

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

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

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

pupil willingness to try new local, healthy foods.

(ii) The prosperity region office shall use purchasing data

collected for the project, meal count and enrollment numbers,

school menu calendars, and surveys of school food service directors

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

(12) The department shall compile the reports provided by

prosperity region offices under subsection (11) into 1 legislative

report. The department shall provide this report not later than

April 1, 2019 to the house and senate subcommittees responsible for

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

budget director.

Sec. 31n. (1) From the school mental health and support

services fund money appropriated in section 11, there is allocated

for 2018-2019 for the purposes of this section an amount not to

exceed $30,000,000.00 and from the general fund money appropriated

in section 11, there is allocated for 2018-2019 for the purposes of

this section an amount not to exceed $1,300,000.00. Not later than

February 15, 2019, the department and the department of health and

human services shall establish a program to distribute this funding

to add licensed behavioral health providers for general education

pupils, and shall seek federal Medicaid match funding for all

eligible mental health and support services.

(2) Not later than February 15, 2019, the department and the

department of health and human services shall create an advisory

council and define goals for implementation of programs funded

under this section, and shall provide feedback on that

implementation. At a minimum, the advisory council shall include

representatives of state associations representing school health,

school mental health, school counseling, education, health care,

and other organizations, representatives from the department and

the department of health and human services, and a representative

from the school safety task force created under Executive Order No.

2018-5. The department and department of health and human services,

working with the advisory council, shall determine an approach to

increase capacity for mental health and support services in schools

for general education pupils, and shall determine where that

increase in capacity qualifies for federal Medicaid match funding.

(3) The advisory council shall develop a fiduciary agent

checklist for intermediate districts to facilitate development of a

plan to submit to the department and to the department of health

and human services. The department and department of health and

human services shall determine the requirements and format for

intermediate districts to submit a plan for possible funding under

subsection (5). Applications for funding for this program shall be

made available to districts and intermediate districts not later

than March 1, 2019, and funding shall be awarded not later than

April 1, 2019.

(4) Not later than January 1, 2019, the department of health

and human services shall seek to amend the state Medicaid plan or

obtain appropriate Medicaid waivers as necessary for the purpose of

generating additional Medicaid match funding for school mental

health and support services for general education pupils. It is the

intent of the legislature that a successful state plan amendment or

other Medicaid match mechanisms will result in additional federal

Medicaid match funding for both the new funding allocated under

this section and for any expenses already incurred by districts and

intermediate districts for mental health and support services for

general education pupils.

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

allocated an amount not to exceed $5,000,000.00 to be distributed

to the existing network of child and adolescent health centers to

place a licensed master's level behavioral health provider in

schools that do not currently have services available to general

education students. Existing child and adolescent health centers

receiving funding under this subsection shall provide a commitment

to maintain services and implement all available federal Medicaid

match methodologies. The department of health and human services

shall use all existing or additional federal Medicaid match

opportunities to maximize funding allocated under this subsection.

Funds under this subsection shall be provided to existing child and

adolescent health centers in the same proportion that funding under

section 31a(7) is provided to child and adolescent health centers

located and operating in those districts.

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

allocated an amount not to exceed $16,500,000.00 to be distributed

to intermediate districts for the provision of mental health and

support services to general education students. From the funds

allocated under this subsection, the department shall distribute

$294,500.00 to each intermediate district that submits a plan

approved by the department and the department of health and human

services. The department and department of health and human

services shall work cooperatively in providing oversight and

assistance to intermediate districts during the plan submission

process and shall monitor the program upon implementation. An

intermediate district shall use funds awarded under this subsection

to provide funding to its constituent districts, including public

school academies that are considered to be constituent districts

under section 705(7) of the revised school code, MCL 380.705, for

the provision of mental health and support services to general

education students. In addition to the criteria identified under

subsection (7), an intermediate district shall consider geography,

cost, or other challenges when awarding funding to its constituent

districts. If funding awarded to an intermediate district remains

after funds are provided by the intermediate district to its

constituent districts, the intermediate district may hire or

contract for experts to provide mental health and support services

to general education students residing within the boundaries of the

intermediate district.

(7) A district requesting funds under this section from the

intermediate district in which it is located shall submit an

application for funding for the provision of mental health and

support services to general education pupils. A district receiving

funding from the application process described in this subsection

shall provide services to nonpublic students upon request. An

intermediate district shall not discriminate against an application

submitted by a public school academy simply on the basis of the

applicant being a public school academy. Grant applications shall

be approved based on the following criteria:

(a) The district's commitment to maintain mental health and

support services delivered by licensed providers into future fiscal

years.

(b) The district's commitment to implement all federal

Medicaid match methodologies and provide a local match of at least

20%.

requirements determined by the department and the department of

health and human services.

(d) The extent of the district's existing partnerships with

community health care providers or the ability of the district to

establish such partnerships.

(e) The district's documentation of need, including gaps in

current mental health and support services for the general

education population.

(f) The district's submission of a formal plan of action

identifying the number of schools and students to be served.

(g) Whether the district will participate in ongoing

trainings.

(h) Whether the district will submit an annual report to the

state.

(i) Whether the district demonstrates a willingness to work

with the state to establish program and service delivery

benchmarks.

(j) Whether the district has developed a school safety plan or

is in the process of developing a school safety plan.

(k) Any other requirements determined by the department or the

department of health and human services.

(8) Funding under this section, including any federal Medicaid

funds that are generated, shall not be used to supplant existing

services.

(9) Both of the following are allocated for 2018-2019 to the

department of health and human services from the general fund money

allocated under subsection (1):

(a) An amount not to exceed $1,000,000.00 for the purpose of

upgrading technology and systems infrastructure and other

administrative requirements to support the programs funded under

this section.

(b) An amount not to exceed $300,000.00 for the purpose of

administering the programs under this section and working on

generating additional Medicaid funds as a result of programs funded

under this section.

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

allocated for 2018-2019 an amount not to exceed $500,000.00 to

intermediate districts on an equal per intermediate district basis

for the purpose of administering programs funded under this

section.

(11) The department and the department of health and human

services shall work with the advisory council to develop proposed

measurements of outcomes and performance. Those measurements shall

include, at a minimum, the number of pupils served, the number of

schools served, and where those pupils and schools were located.

The department and the department of health and human services

shall compile data necessary to measure outcomes and performance,

and districts and intermediate districts receiving funding under

this section shall provide data requested by the department and

department of health and human services for the measurement of

outcomes and performance. The department and department of health

and human services shall provide a report not later than December

1, 2019 and by December 1 annually thereafter to the house and

senate appropriations subcommittees on school aid and health and

human services, and to the house and senate fiscal agencies. At a

minimum, the report shall include measurements of outcomes and

performance, proposals to increase efficacy and usefulness,

proposals to increase performance, and proposals to expand

coverage.

(12) From the funds allocated in subsection (1), there is

allocated for 2018-2019 an amount not to exceed $8,000,000.00 for

the behavioral health team pilot program. The department shall

award funds under this subsection to intermediate school districts

to create school-based behavioral health assessment teams utilizing

a "train the trainer" model of training that focuses on providing

age-appropriate interventions, identifying behaviors that suggest a

pupil may be struggling with mental health challenges, providing

treatment and support of the pupil, and using disciplinary

interventions and the criminal justice system as methods of last

resort. The intermediate district may hire or contract with experts

to provide training to intermediate district staff so that it may

provide similar training for staff of the constituent districts.

The department shall award the entire $8,000,000.00 allocated under

this subsection by allocating an equal dollar amount to each

intermediate district that has its application approved under

subsection (13).

(13) An intermediate district shall apply for funds under

subsection (12) in a form and manner determined by the department.

The application shall include, but is not limited to, all of the

following:

(a) A detailed plan on how the intermediate district will work

with constituent districts to identify a behavioral health

assessment team within each school to be trained under this pilot.

The plan shall demonstrate that a behavioral health assessment team

must consist of, but is not limited to, all of the following

individuals:

(i) School administrators and teachers.

(ii) An individual whose primary purpose is ensuring safety in

a school.

(iii) Pathways to potential workers, if the school

participates in the pathways to potential program.

(iv) Local mental health agency representatives.

(v) Local law enforcement agency personnel.

(vi) If appropriate under the model being used, a pupil.

(b) Identification of a behavioral health assessment training

implementation plan that shall include a description of how results

of the training will be incorporated into administrative policies

and a comprehensive school safety plan, including into a multi-

tiered system of support.

(14) The funds allocated under this section for 2018-2019 are

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

2019 are carried forward into 2019-2020. The purpose of the work

project is to continue to provide funding for the expansion of

mental health and support services for general education students.

The estimated completion date of the work project is September 30,

2022.

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

is allocated to eligible intermediate districts and consortia of

intermediate districts for great start readiness programs an amount

not to exceed ~~$243,600,000.00~~ $244,600,000.00 for 2018-2019. Funds

allocated under this section for great start readiness programs

shall be used to provide part-day, school-day, or GSRP/Head Start

blended comprehensive free compensatory classroom programs designed

to improve the readiness and subsequent achievement of

educationally disadvantaged children who meet the participant

eligibility and prioritization guidelines as defined by the

department. For a child to be eligible to participate in a program

under this section, the child shall be at least 4, but less than 5,

years of age as of September 1 of the school year in which the

program is offered and shall meet those eligibility and

prioritization guidelines. A child who is not 4 years of age as of

September 1, but who will be 4 years of age not later than December

1, is eligible to participate if the child's parent or legal

guardian seeks a waiver from the September 1 eligibility date by

submitting a request for enrollment in a program to the responsible

intermediate district, if the program has capacity on or after

September 1 of the school year, and if the child meets eligibility

and prioritization guidelines.

(2) From the funds allocated under subsection (1), an amount

not to exceed $242,600,000.00 is allocated to intermediate

districts or consortia of intermediate districts based on the

formula in section 39. An intermediate district or consortium of

intermediate districts receiving funding under this section shall

act as the fiduciary for the great start readiness programs. In

order to be eligible to receive funds allocated under this

subsection from an intermediate district or consortium of

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

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

shall comply with this section and section 39.

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

the general fund money appropriated under section 11, there is

allocated an amount not to exceed $300,000.00 for 2018-2019 for a

competitive grant to continue a longitudinal evaluation of children

who have participated in great start readiness programs.

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

shall prepare children for success in school through comprehensive

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

contain all of the following program components, as determined by

the department:

(a) Participation in a collaborative recruitment and

enrollment process to assure that each child is enrolled in the

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

use of federal, state, and local funds.

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

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board, including, at

least, the Connect4Learning curriculum.

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

(d) Physical and dental health and developmental screening

services for all program participants.

(e) Referral services for families of program participants to

community social service agencies, including mental health

services, as appropriate.

(f) Active and continuous involvement of the parents or

guardians of the program participants.

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

program evaluations and continuous improvement plans using criteria

approved by the department.

(h) Participation in a school readiness advisory committee

convened as a workgroup of the great start collaborative that

provides for the involvement of classroom teachers, parents or

guardians of program participants, and community, volunteer, and

social service agencies and organizations, as appropriate. The

advisory committee annually shall review and make recommendations

regarding the program components listed in this subsection. The

advisory committee also shall make recommendations to the great

start collaborative regarding other community services designed to

improve all children's school readiness.

(i) The ongoing articulation of the kindergarten and first

grade programs offered by the program provider.

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

process with a rating of at least 3 stars.

(5) An application for funding under this section shall

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

department:

(a) Ensure compliance with all program components described in

subsection (4).

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

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

great start readiness program for whom the intermediate district is

receiving funds under this section are children who live with

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

of the federal poverty level. If the intermediate district

determines that all eligible children are being served and that

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

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

federal poverty level, the intermediate district may then enroll

children who live with families with a household income that is

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

enrollment process shall consider income and risk factors, such

that children determined with higher need are enrolled before

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

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

homelessness or who have individualized education plans

recommending placement in an inclusive preschool setting shall be

considered to live with families with household income equal to or

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

family income and shall be prioritized for enrollment within the

lowest quintile.

for this program, as follows:

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

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

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

development or early childhood education with specialization in

preschool teaching. However, if an applicant demonstrates to the

department that it is unable to fully comply with this subparagraph

after making reasonable efforts to comply, teachers who have

significant but incomplete training in early childhood education or

child development may be used if the applicant provides to the

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

come into compliance with the standards in this subparagraph. A

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

date of employment. Progress toward completion of the compliance

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

(ii) Paraprofessionals possessing proper training in early

childhood education, including an associate's degree in early

childhood education or child development or the equivalent, or a

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

applicant demonstrates to the department that it is unable to fully

comply with this subparagraph after making reasonable efforts to

comply, the applicant may use paraprofessionals who have completed

at least 1 course that earns college credit in early childhood

education or child development if the applicant provides to the

department, and the department approves, a plan for each

paraprofessional to come into compliance with the standards in this

subparagraph. A paraprofessional's compliance plan must be

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

completion of the compliance plan shall consist of at least 2

courses or 60 clock hours of training per calendar year.

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

that are not reimbursed or reimbursable by federal funding, that

are clearly and directly attributable to the great start readiness

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

being offered. Eligible costs include transportation costs. The

program budget shall indicate the extent to which these funds will

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

received under this section shall not be used to supplant any

federal funds received by the applicant to serve children eligible

for a federally funded preschool program that has the capacity to

serve those children.

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

program funded under this section, each child enrolled in the

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

purposes of determining the amount of the grant award.

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

Start blended program, the grant recipient shall ensure that all

Head Start and GSRP policies and regulations are applied to the

blended slots, with adherence to the highest standard from either

program, to the extent allowable under federal law.

(8) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall designate an

early childhood coordinator, and may provide services directly or

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

profit or nonprofit providers that meet all requirements of

subsections (4) and (5).

(9) An intermediate district or consortium of intermediate

districts may retain for administrative services provided by the

intermediate district or consortium of intermediate districts an

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

subrecipients engaged by the intermediate district or consortium of

intermediate districts for directly running portions of the program

shall be considered program costs or a contracted program fee for

service.

(10) An intermediate district or consortium of intermediate

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

outreach, recruiting, and public awareness of the program.

(11) Each grant recipient shall enroll children identified

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

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

applicant child's household income from lowest to highest and

dividing the applicant children into quintiles based on how far the

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

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

household income before enrolling children in the quintile with the

next lowest household income until slots are completely filled. If

the grant recipient determines that all eligible children are being

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

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

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

enroll children who live with families with a household income that

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

enrollment process shall consider income and risk factors, such

that children determined with higher need are enrolled before

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

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

homelessness or who have individualized education plans

recommending placement in an inclusive preschool setting shall be

considered to live with families with household income equal to or

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

family income and shall be prioritized for enrollment within the

lowest quintile.

(12) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall allow parents

of eligible children who are residents of the intermediate district

or within the consortium to choose a program operated by or

contracted with another intermediate district or consortium of

intermediate districts and shall enter into a written agreement

regarding payment, in a manner prescribed by the department.

(13) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall conduct a

local process to contract with interested and eligible public and

private for-profit and nonprofit community-based providers that

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

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

intermediate district or consortium of intermediate districts may

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

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

Children served in a program funded only through Head Start shall

not be counted toward this 30% allocation. The intermediate

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

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

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

nonprofit, community college or university, Head Start grantee or

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

proportion of its total allocation allocated to each provider as

subrecipient. If the intermediate district or consortium is not

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

grant recipient shall notify the department and, if the department

verifies that the intermediate district or consortium attempted to

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

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

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

able to use this exemption, the intermediate district or consortium

shall demonstrate to the department that the intermediate district

or consortium increased the percentage of its total allocation for

which it contracts with a community-based provider and the

intermediate district or consortium shall submit evidence

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

verify this evidence, demonstrating that the intermediate district

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

total allocation as required under this subsection, including, but

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

(a) The intermediate district or consortium notified each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium regarding the

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

department.

(b) The intermediate district or consortium provided to each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium information

regarding great start readiness program requirements and a

description of the application and selection process for community-

based providers.

public and to participating families a list of community-based

great start readiness program subrecipients with a great start to

quality rating of at least 3 stars.

(14) If an intermediate district or consortium of intermediate

districts receiving a grant under this section fails to submit

satisfactory evidence to demonstrate its effort to contract for at

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

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

intermediate district or consortium by a percentage equal to the

difference between the percentage of an intermediate district's or

consortium's total allocation awarded to community-based providers

and 30% of its total allocation.

(15) In order to assist intermediate districts and consortia

in complying with the requirement to contract with community-based

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

department shall do all of the following:

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

department provides each intermediate district or consortium

receiving a grant under this section with the contact information

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

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

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

department contracts provides, a community-based provider with a

validated great start to quality rating within 90 days of the

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

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

profit, and private nonprofit providers are subject to a single

great start to quality rating system. The rating system shall

ensure that regulators process all prospective providers at the

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

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

of any other type of provider.

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

results of the information reported by each intermediate district

or consortium under subsection (13) and report to the legislature a

list by intermediate district or consortium with the number and

percentage of each intermediate district's or consortium's total

allocation allocated to community-based providers by provider type,

including private for-profit, private nonprofit, community college

or university, Head Start grantee or delegate, and district or

intermediate district.

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

the center in a form and manner prescribed by the center the

information necessary to derive the number of children

participating in the program who meet the ~~income~~ program

eligibility criteria under subsection (5)(b), the number of

eligible children not participating in the program and on a

waitlist, and the total number of children participating in the

program by various demographic groups and eligibility factors

necessary to analyze equitable and priority access to services for

the purposes of subsection (3).

(17) As used in this section:

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

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

combined for a school-day program.

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

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

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

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

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

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

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

school day to be considered a school-day program.

(18) An intermediate district or consortium of intermediate

districts receiving funds under this section shall establish and

charge tuition according to a sliding scale of tuition rates based

upon household income for children participating in an eligible

great start readiness program who live with families with a

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

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

department.

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

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

of transportation costs for children attending great start

readiness programs funded under this section. To receive

reimbursement under this subsection, not later than November 1,

2018, a program funded under this section that provides

transportation shall submit to the intermediate district that is

the fiscal agent for the program a projected transportation budget.

The amount of the reimbursement for transportation under this

subsection shall be no more than the projected transportation

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

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

subsection is insufficient to fully reimburse the transportation

costs for all programs that provide transportation and submit the

required information, the reimbursement shall be prorated in an

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

intermediate district that is the fiscal agent for each program,

and the intermediate district shall then reimburse the program

provider for transportation costs as prescribed under this

subsection.

(20) Subject to, and from the funds allocated under,

subsection (19), the department shall reimburse a program for

transportation costs related to parent- or guardian-accompanied

transportation provided by transportation service companies, buses,

or other public transportation services. To be eligible for

reimbursement under this subsection, a program must ~~be a community-~~

~~based provider and must~~ submit to the ~~department~~ intermediate

district or consortia of intermediate districts all of the

following:

(a) The names of families provided with transportation support

along with a documented reason for the need for transportation

support and the type of transportation provided.

(b) Financial documentation of actual transportation costs

incurred by the program, including, but not limited to, receipts

and mileage reports, as determined by the department.

necessary by the department.

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

approve age-appropriate comprehensive classroom level quality

assessments for GSRP grantees that support the early childhood

standards of quality for prekindergarten children adopted by the

state board. The department shall make available to intermediate

districts at least 2 classroom level quality assessments that were

approved in 2018.

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

approve the use of a supplemental curriculum that aligns with and

enhances the age-appropriate educational curriculum in the

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

curriculum approved by an intermediate district, the superintendent

of public instruction shall establish a review committee

independent of the department. The review committee shall meet

within 60 days of the department registering its objection in

writing and provide a final determination on the validity of the

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

(23) The department shall implement a process to evaluate and

approve age-appropriate educational curricula that are in

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board.

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

allocated an amount not to exceed ~~$1,000,000.00~~ $2,000,000.00 for

payments to intermediate districts or consortia of intermediate

districts for professional development and training materials for

educators in programs implementing new curricula in 2019-2020.

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

blended program funded under this section shall be permitted to

utilize AmeriCorps Pre-K Reading Corps members in classrooms

implementing research-based early literacy intervention strategies.

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

allocated for 2018-2019 for the purposes of this section an amount

not to exceed ~~$26,900,000.00~~ $27,900,000.00 from the state school

aid fund and an amount not to exceed ~~$3,000,000.00~~ $3,500,000.00

from the general fund. The superintendent shall designate staff or

contracted employees funded under this section as critical

shortage. Programs funded under this section are intended to ensure

that this state will be in the top 10 most improved states in grade

4 reading proficiency by the 2019 National Assessment of

Educational Progress (NAEP) and will be in the top 10 states

overall in grade 4 reading proficiency by 2025.

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

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

educators in a department-approved research-based training program

related to current state literacy standards for pupils in grades K

to 3. The professional development shall also include training in

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

intervention methods used to address barriers to learning and

delays in learning that are diagnosed through the use of these

tools.

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

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

screening and diagnostic tools to monitor the development of early

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

support research-based professional development for educators in

administering screening and diagnostic tools and in data

interpretation of the results obtained through the use of those

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

support to improve reading proficiency among pupils in grades K to

3. A department-approved screening and diagnostic tool administered

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

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

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

assessed within each of these components:

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

manipulation (deletion and substitution).

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

(d) Comprehension - making meaning of text.

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

allocated an amount not to exceed $7,000,000.00 for 2018-2019 for

the purpose of providing early literacy coaches at intermediate

districts to assist teachers in developing and implementing

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

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

following apply to funding under this subsection:

(a) The department shall develop an application process

consistent with the provisions of this subsection. An application

shall provide assurances that literacy coaches funded under this

subsection are knowledgeable about at least the following:

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

(ii) Implementing an instructional delivery model based on

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

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

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

grade level by the end of grade 3.

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

necessary additional supports and interventions needed by

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

level.

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

shall award grants to intermediate districts for the support of

early literacy coaches. An intermediate district must provide

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

support the cost of the literacy coach. The department shall

provide this funding in the following manner:

(i) Each intermediate district shall be awarded grant funding

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

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

(ii) After distribution of the grant funding under

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

grant funding for additional early literacy coaches in an amount

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

funded early literacy coaches for each intermediate district shall

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

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

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

districts in the intermediate district. For each additional early

literacy coach funded under this subparagraph, the department shall

not make an award to an intermediate district under this

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

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

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

allocated an amount not to exceed $19,900,000.00 for 2018-2019 to

districts that provide additional instructional time to those

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

department-approved screening and diagnostic tools as needing

additional supports and interventions in order to be reading at

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

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

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

following apply to funding under this subsection:

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

shall demonstrate to the satisfaction of the department that the

district has done all of the following:

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

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

driven problem solving to integrate academic and behavioral

instruction and that uses intervention delivered to all pupils in

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

of supports must provide at least all of the following essential

components:

(A) Team-based leadership.

(B) A tiered delivery system.

interventions, and supports.

(D) A comprehensive screening and assessment system.

(E) Continuous data-based decision making.

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

to identify individual pupils in need of additional instructional

time.

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

fundamental building blocks of reading: phonics, phonemic

awareness, fluency, vocabulary, and comprehension and content

knowledge.

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

research-based professional development in diagnostic data

interpretation.

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

revised school code, MCL 380.1280f.

(b) Funding allocated under this subsection shall be

distributed to eligible districts on an equal per-first-grade-pupil

basis.

insufficient to fully fund the payments under this subsection,

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

pupil basis based on grade 1 pupils.

(6) Not later than September 1, 2019, a district that receives

funding under this section, in conjunction with the Michigan data

hub network, if possible, shall provide to the department a report

that includes at least both of the following, in a form and manner

prescribed by the department:

(a) For pupils in grades K to 3, the pupils, schools, and

grades served with funds under this section and the categories of

services provided.

(b) For pupils in grades K to 3, pupil proficiency and growth

data that allows analysis both in the aggregate and by each of the

following subgroups, as applicable:

(i) School.

(ii) Grade level.

(iii) Gender.

(iv) Race.

(v) Ethnicity.

(vi) Economically disadvantaged status.

(vii) Disability.

(viii) Pupils identified as having reading deficiencies.

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

the department shall allocate the amount of ~~$2,500,000.00~~

$3,000,000.00 for 2018-2019 to the Michigan Education Corps for the

PreK Reading Corps, the K3 Reading Corps, and the Math Corps. All

of the following apply to funding under this subsection:

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

Education Corps shall provide a report concerning its use of the

funding to the senate and house appropriations subcommittees on

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

senate and house caucus policy offices on outcomes and performance

measures of the Michigan Education Corps, including, but not

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

replication of the Michigan PreK Reading Corps, K3 Reading Corps,

and Math Corps programs is demonstrating sufficient efficacy and

impact. The report must include data pertaining to at least all of

the following:

(i) The current impact of the programs on this state in terms

of numbers of children and schools receiving support. This portion

of the report shall specify the number of children tutored,

including dosage and completion, and the demographics of those

children.

(ii) Whether the assessments and interventions are implemented

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

the total number of assessments and interventions completed and the

range, mean, and standard deviation.

(iii) Whether the literacy or math improvement of children

participating in the programs is consistent with expectations. This

portion of the report shall detail at least all of the following:

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

targeted growth rate.

(B) Average linear growth rates.

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

spring benchmarks.

(iv) The impact of the programs on organizations and

stakeholders, including, but not limited to, school administrators,

internal coaches, and AmeriCorps members.

(b) If the department determines that the Michigan Education

Corps has misused the funds allocated under this subsection, the

Michigan Education Corps shall reimburse this state for the amount

of state funding misused.

allocation provided under this subsection for an evaluation of the

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

the Michigan Education Corps' programming unless agreed to in

writing by the Michigan Education Corps. The department shall award

the entire ~~$2,500,000.00~~ $3,000,000.00 allocated under this

subsection to the Michigan Education Corps and shall not condition

the awarding of this funding on the implementation of an

independent evaluation.

(8) From the general fund money allocated under subsection

(1), there is allocated an amount not to exceed $500,000.00 for

2018-2019 for a grant to an eligible program that has a goal to

slow or prevent the K to 4 summer reading slide among all pupils

enrolled in grades K to 4, particularly those from economically

disadvantaged households. Funds allocated under this subsection are

grant funds and must be distributed by the department. A program is

eligible if it meets at least all of the following:

(a) The program's objective is to deliver a bilingual, in-

home, individualized summer reading program consisting of self-

selected, independent reading level books to K to 4 pupils each

week during the summer.

(b) Is evaluated quantitatively and qualitatively using pre-

and post-standardized test score comparison and parent and school

surveys specific to each district.

family engagement during the summer.

(d) Builds on pedagogical and literacy principles to scaffold

fluency to improve reading comprehension with pupil exercises.

(e) Provides at least 4, and up to 9, student-selected new

books to read and keep.

(f) Collects, analyzes, and reports detailed data on parental

engagement, books read, and spring-to-fall reading scores.

(g) Follows the department's top 10 in 10 goals and

strategies, with an emphasis on goals 4 and 5.

(h) Focuses on in-home program delivery through weekly

mailings.

(i) Provides summary data to the legislature and to the

department for all pupils served by the program after each summer.

(9) From the state school aid fund money allocated under

subsection (1), there is allocated an amount not to exceed

$1,000,000.00 for 2018-2019 to an intermediate district in which

the combined total number of pupils in membership of all of its

constituent districts is the fewest among all intermediate

districts. All of the following apply to the funding under this

subsection:

(a) Funding under this subsection must be used by the

intermediate district, in partnership with an association that

represents intermediate district administrators in this state, to

implement both of the following:

(i) Literacy essentials teacher and principal training

modules.

(ii) Face-to-face and online professional learning of literacy

essentials teacher and principal training modules for literacy

coaches, principals, and teachers.

(b) Not later than September 1 of each year, the intermediate

district described in this subsection, in consultation with grant

recipients, shall submit a report to the chairs of the senate and

house appropriations subcommittees on state school aid and the

chairs of the senate and house standing committees responsible for

education legislation. The report described under this subdivision

must include student achievement results in English language arts

and survey results with feedback from parents and teachers

regarding the initiatives implemented under this subsection.

(10) Notwithstanding section 17b, payments made under

subsection (9) shall be made not later than March 1, 2019.

Sec. 35b. (1) From the ~~funds~~ general fund money appropriated

in section 11, there is allocated for 2018-2019 an amount not to

exceed $250,000.00 for a grant to be distributed by the department

to ~~an eligible district~~ the Children's Choice Initiative to create

a pilot program to use a multisensory structured language education

method to improve reading proficiency rates and to comply with

section 1280f of the revised school code, MCL 380.1280f.

~~(2) A district is eligible for a grant under this section if~~

~~all of the following are met:~~

~~(a) A dyslexia center accredited by the International~~

~~Multisensory Structured Language Education Council is located in~~

~~the district.~~

~~(b) The district partners with the dyslexia center described~~

~~in subdivision (a) to provide multisensory structured language~~

~~education for pupils in grades K to 3 identified as having an early~~

~~literacy delay or reading deficiency.~~

~~(c) The district has a pupil membership greater than 7,000 and~~

~~less than 8,000.~~

(2) ~~(3) A district may expend grant~~ Grant funds awarded under

this section ~~, in collaboration with the dyslexia center described~~

~~in subsection (2)(a),~~ must be expended for the following purposes:

(a) Professional development including training staff and

tutors in ~~the~~ a multisensory, sequential, systematic education

approach. ~~used by the dyslexia center.~~

(b) Additional instructional time before, during, or after

school for pupils in grades K to 3 identified as having an early

literacy delay or reading deficiency using ~~the~~ a multisensory,

sequential, systematic education approach. ~~used by the dyslexia~~

~~center.~~

(3) ~~(4)~~ Not later than December 1, 2020, ~~a district~~ an entity

that receives grant funds under this section shall report to the

house and senate appropriations subcommittees on school aid, the

house and senate fiscal agencies, and the state budget director on

all of the following for the grant funds awarded under this

section:

(a) The number of staff and tutors trained.

(b) The number of pupils in grades K to 3 identified as having

an early literacy delay or reading deficiency served.

to pupils served.

(d) Pupil reading proficiency and growth data of pupils served

necessary to evaluate the effectiveness of the program.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated for 2018-2019 to districts, intermediate

districts, and other eligible entities all available federal

funding, estimated at $730,600,000.00 for the federal programs

under the no child left behind act of 2001, Public Law 107-110, or

the every student succeeds act, Public Law 114-95. These funds are

allocated as follows:

(a) An amount estimated at $1,200,000.00 for 2018-2019 to

provide students with drug- and violence-prevention programs and to

implement strategies to improve school safety, funded from DED-

OESE, drug-free schools and communities funds.

(b) An amount estimated at $100,000,000.00 for 2018-2019 for

the purpose of preparing, training, and recruiting high-quality

teachers and class size reduction, funded from DED-OESE, improving

teacher quality funds.

programs to teach English to limited English proficient (LEP)

children, funded from DED-OESE, language acquisition state grant

funds.

(d) An amount estimated at $2,800,000.00 for 2018-2019 for

rural and low income schools, funded from DED-OESE, rural and low

income school funds.

(e) An amount estimated at $535,000,000.00 for 2018-2019 to

provide supplemental programs to enable educationally disadvantaged

children to meet challenging academic standards, funded from DED-

OESE, title I, disadvantaged children funds.

(f) An amount estimated at $9,200,000.00 for 2018-2019 for the

purpose of identifying and serving migrant children, funded from

DED-OESE, title I, migrant education funds.

(g) An amount estimated at $39,000,000.00 for 2018-2019 for

the purpose of providing high-quality extended learning

opportunities, after school and during the summer, for children in

low-performing schools, funded from DED-OESE, twenty-first century

community learning center funds.

(h) An amount estimated at $12,000,000.00 for 2018-2019 to

help support local school improvement efforts, funded from DED-

OESE, title I, local school improvement grants.

(i) An amount estimated at $15,400,000.00 for 2018-2019 to

improve the academic achievement of students, funded from DED-OESE,

title IV, student support and academic enrichment grants.

(j) An amount estimated at $5,000,000.00 for 2018-2019 for the

remaining balance of the amount appropriated under the former

section 32r, for federal funding awarded to this state under

sections 14005, 14006, and 14013 of title XIV of the American

recovery and reinvestment act of 2009, Public Law 111-5, for the

race to the top early learning challenge grant.

(2) From the federal funds appropriated in section 11, there

is allocated for 2018-2019 to districts, intermediate districts,

and other eligible entities all available federal funding,

estimated at ~~$30,000,000.00~~ $51,200,000.00 for 2018-2019 for the

following programs that are funded by federal grants:

(a) An amount estimated at $100,000.00 for 2018-2019 for

acquired immunodeficiency syndrome education grants, funded from

HHS – Centers for Disease Control and Prevention, AIDS funding.

(b) An amount estimated at $1,900,000.00 for 2018-2019 to

provide services to homeless children and youth, funded from DED-

OVAE, homeless children and youth funds.

provide mental health, substance abuse, or violence prevention

services to students, funded from HHS-SAMHSA.

(d) An amount estimated at $24,000,000.00 for 2018-2019 for

providing career and technical education services to pupils, funded

from DED-OVAE, basic grants to states.

(e) An amount estimated at $14,000,000.00 for 2018-2019 for

the Michigan charter school subgrant program, funded from DED–OII,

public charter schools program funds.

(f) An amount estimated at $7,200,000.00 for 2018-2019 for the

purpose of promoting and expanding high-quality preschool services,

funded from HHS–OCC, preschool development funds.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

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

department.

(4) For the purposes of applying for federal grants

appropriated under this article, the department shall allow an

intermediate district to submit a consortium application on behalf

of 2 or more districts with the agreement of those districts as

appropriate according to federal rules and guidelines.

(5) For the purposes of funding federal title I grants under

this article, in addition to any other federal grants for which a

strict discipline academy is eligible, the department shall

allocate to strict discipline academies out of title I, part A

funds equal to what a strict discipline academy would have received

if included and calculated under title I, part D, or what it would

receive under the formula allocation under title I, part A,

whichever is greater.

(6) As used in this section:

(a) "DED" means the United States Department of Education.

(b) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

Improvement.

(d) ~~(c)~~ "DED-OVAE" means the DED Office of Vocational and

Adult Education.

(e) ~~(d)~~ "HHS" means the United States Department of Health and

Human Services.

(f) "HHS-OCC" means the HHS Office of Child Care.

(g) ~~(e)~~ "HHS-SAMHSA" means the HHS Substance Abuse and Mental

Health Services Administration.

Sec. 61f. (1) From the funds appropriated under section 11,

there is allocated an amount not to exceed $200,000.00 for 2018-

2019 for a grant to support a program that is an innovative

retention and completion program designed to create a seamless

educational and career pathway support structure and that does at

least all of the following:

(a) Creates a pipeline from kindergarten to a college

credential.

(b) Provides coaching at all levels of K-12 education to

foster an environment that educates pupils on the availability and

positive outcomes from postsecondary education.

career pathways to middle school pupils, and develops pupil success

plans for high school pupils.

(d) Provides family literacy sessions.

(e) Provides a summer bridge program to ensure seamless

transition from high school to postsecondary educational

opportunities.

(f) Introduces K-12 pupils to college and career opportunities

at postsecondary campuses and bridges those pupils into the

respective postsecondary institutions for coursework.

(g) Creates a partnership between area districts, a community

college, and a public university to serve pupils in the program.

(h) Synchronizes families and pupils to assess and understand

their knowledge of how to be successful in school and work.

(2) The department shall distribute the funds awarded under

subsection (1) not later than February 15, 2019 to Mott Community

College to implement the program under this section. Funds

allocated under this section may be used for salaries and benefits,

supply and programming costs, and gap scholarships.

Sec. 61g. (1) From the funds appropriated under section 11,

there is allocated for 2018-2019 an amount not to exceed $50,000.00

for a grant to an eligible intermediate district for the expansion

of programs for high-demand future jobs as prescribed under this

section.

(2) An intermediate district is eligible for funds under this

section if the intermediate district meets all of the following:

(a) The total combined memberships of its constituent

districts is at least 20,000 and not more than 30,000.

(b) The intermediate district is located in prosperity region

of the funding it receives under this section.

(3) An intermediate district that receives funds under this

section shall use the funds for start-up costs, including the

purchase of tools, equipment, hardware, software, furniture, and

supplies for energy technology and cybersecurity programs.

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

section shall be made not later than March 1, 2019.

Sec. 61h. (1) From the funds allocated under section 11, there

is allocated an amount not to exceed $1,200,000.00 for 2018-2019 to

an eligible intermediate district to act as the fiscal agent in

support of the statewide virtual reality training initiative

described in subsection (2). An intermediate district is eligible

for funding under this section if it meets both of the following:

(a) The combined total membership of its constituent districts

is at least 10,000 and not more than 11,000.

(b) The intermediate district is located in prosperity region

(2) The statewide virtual reality training initiative

supported by funding under this section is a collaborative effort

between private and public sector groups to provide training

opportunities in targeted areas, and shall do all of the following:

(a) Focus on skilled trades, nursing, law enforcement, and

life skills for the developmentally challenged.

(b) Bring together intermediate districts, private sector

labor and management, and state resources to provide a unique

experience using virtual reality to expose potential employees to

career opportunities and provide cutting-edge training for existing

employees.

using virtual reality in the areas of education and training to

develop custom content.

(d) Create a talent development track.

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

section shall be provided to an eligible intermediate district not

later than March 1, 2019.

Sec. 74a. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $810,000.00 for 2018-2019 to

an eligible intermediate district to implement a statewide school

bus driver safety program.

(2) An intermediate district is eligible to receive funds

under this section if the intermediate district meets all of the

following:

(a) The total combined membership of its constituent districts

is at least 7,000 and not more than 8,000.

(b) The intermediate district is located in prosperity region

independent intermediate districts that consolidated into 1

intermediate district.

(3) A statewide school bus driver safety program funded under

this section must provide transportation staff training on how to

respond to acts of violence by using the model known as Alert,

Lockdown, Inform, Counter, Evacuate (A.L.I.C.E.) for school buses.

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

section shall be provided to an eligible intermediate district not

later than March 1, 2019.

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

section 11, there is allocated an amount not to exceed

$3,000,000.00 for 2017-2018 and an amount not to exceed

~~$3,000,000.00~~ $4,500,000.00 for 2018-2019 for competitive grants to

districts and intermediate districts, and from the general fund

appropriation in section 11, there is allocated an amount not to

exceed $300,000.00 each fiscal year for 2017-2018 and for 2018-2019

for competitive grants to nonpublic schools that provide pupils in

grades K to 12 with expanded opportunities to improve mathematics,

science, and technology skills by participating in events hosted by

a science and technology development program known as FIRST (for

inspiration and recognition of science and technology) Robotics,

including JR FIRST Lego League, FIRST Lego League, FIRST Tech

challenge, and FIRST Robotics competition, or, beginning in 2018-

2019, other competitive robotics programs, including those hosted

by the Robotics Education and Competition (REC) Foundation.

Programs funded under this section are intended to increase the

number of pupils demonstrating proficiency in science and

mathematics on the state assessments and to increase the number of

pupils who are college- and career-ready upon high school

graduation. Notwithstanding section 17b, grant payments to

districts, nonpublic schools, and intermediate districts under this

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

The department shall set maximum grant awards for each different

level of competition in a manner that both maximizes the number of

teams that will be able to receive funds and expands the

geographical distribution of teams.

(2) A district, nonpublic school, or intermediate district

applying for a grant under this section shall submit an application

in a form and manner determined by the department. To be eligible

for a grant, a district, nonpublic school, or intermediate district

shall demonstrate in its application that the district, nonpublic

school, or intermediate district has established a partnership for

the purposes of the robotics program with at least 1 sponsor,

business entity, higher education institution, or technical school,

shall submit a spending plan, and shall pay at least 25% of the

cost of the robotics program.

(3) The department shall distribute the grant funding under

this section for the following purposes:

(a) Grants to districts, nonpublic schools, or intermediate

districts to pay for stipends not to exceed $1,500.00 for 1 coach

per team.

(b) Grants to districts, nonpublic schools, or intermediate

districts for event registrations, materials, travel costs, and

other expenses associated with the preparation for and attendance

at robotics events and competitions. Each grant recipient shall

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

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

costs of participating in an event.

districts for awards to teams that advance to the state and world

championship competitions. The department shall determine an equal

amount per team for those teams that advance to the state

championship and a second equal award amount to those teams that

advance to the world championship.

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

section may use the funds for either robotics or Science Olympiad

programs.

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

nonpublic school must be a nonpublic school registered with the

department and must meet all applicable state reporting

requirements for nonpublic schools.

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

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

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

is to continue support of FIRST Robotics and must not be used to

support other robotics competitions. The estimated completion date

of the work project is September 30, 2020.

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

section 11, there is allocated for 2018-2019 an amount not to

exceed $1,500,000.00 to purchase statewide access to an online

mathematics tool that meets all of the following:

(a) Provides students statewide with complete access to

mathematics support aligned with state standards through a program

that has all of the following elements:

(i) Student motivation.

(ii) Valid and reliable assessments.

(iii) Personalized learning pathways.

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

year.

(v) Twenty-four-hour reporting.

(vi) Content built for rigorous mathematics.

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

least 5 other states.

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

comply with the requirements of section 19b.

(3) In addition to the funds allocated under subsection (1),

from the general fund appropriation in section 11, there is

allocated for 2018-2019 an amount not to exceed $500,000.00 for a

software-based solution designed to teach Spanish language literacy

to students in pre-kindergarten through first grade. A program

funded under this subsection shall be a grant to a the eligible

provider that promotes bilingualism and biliteracy, and is based on

research that shows how students who become proficient readers in

their first language have an easier time making the transition to

reading proficiency in a second language. A provider of programming

under subsection (1) is an the eligible provider of programming

under this subsection.

(4) In addition to the funds allocated under subsection (1),

from the general fund money appropriated in section 11, there is

allocated for 2018-2019 an amount not to exceed $1,000,000.00 for a

pilot program to provide explicit, targeted literacy instruction

within an individualized learning path that continually adjusts to

a pupil's needs. A program funded under this subsection shall be a

grant to the eligible provider that promotes literacy by teaching

critical language and literacy concepts such as reading and

listening comprehension, basic vocabulary, academic language,

grammar, phonological awareness, phonics, and fluency. A pilot

program funded under this subsection shall cover both the remainder

of 2018-2019 and also the entire 2019-2020 school year. A provider

of programming under subsection (1) is the eligible provider of

programming under this subsection.

(5) Notwithstanding section 17b, payments made under this

section shall be made not later than March 1, 2019.

Sec. 99w. (1) From the general fund money appropriated under

section 11, there is allocated an amount not to exceed $500,000.00

for 2018-2019 to facilitate a culture of health and physical

activity as part of daily life. Funding under this section shall be

a grant to the Michigan Fitness Foundation to work with the

department to invest in a physical education curriculum. Funding

under this section may support staff, evaluation, assessment,

technology, meetings, training, travel, materials, and other

administrative expenses in support of an updated physical education

curriculum. Funding under this section may be used as matching

dollars to qualify for federal and private resources to support

physical education.

(2) Notwithstanding section 17b, payments made under this

section shall be made not later than March 1, 2019.

Sec. 99x. (1) From the general fund money appropriated under

section 11, there is allocated for 2018-2019 an amount not to

exceed $300,000.00 for Teach for America to host a summer training

institute in the city of Detroit, recruit teachers into a master

teacher fellowship, and retain a committed alumni community. A

program funded under this section must provide coaching and

professional development, with the goal to produce highly effective

teachers that move pupils beyond their growth benchmarks.

(2) Notwithstanding section 17b, payments made under this

section shall be made not later than March 1, 2019.

Sec. 99y. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $60,000.00 for 2018-2019 to an

eligible district to provide pupils with a STEM and

entrepreneurship pilot program. To be eligible, a district must

have a membership that is greater than 40,000.

(2) An eligible district must use the funds allocated under

this section to implement a pilot program that meets all of the

following:

(a) Provides a STEM enrichment program with a focus on

technology and entrepreneurship for pupils in grades 4 to 8.

(b) Provides self-paced, pupil-centered programming designed

to create in-school, after-school, and out-of-school experiences.

support provided by trained mentors.

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

section shall be made not later than March 1, 2019.

Sec. 101. (1) To be eligible to receive state aid under this

article, not later than the fifth Wednesday after the pupil

membership count day and not later than the fifth Wednesday after

the supplemental count day, each district superintendent shall

submit to the center and the intermediate superintendent, in the

form and manner prescribed by the center, the number of pupils

enrolled and in regular daily attendance in the district as of the

pupil membership count day and as of the supplemental count day, as

applicable, for the current school year. In addition, a district

maintaining school during the entire year, as provided under

section 1561 of the revised school code, MCL 380.1561, shall submit

to the center and the intermediate superintendent, in the form and

manner prescribed by the center, the number of pupils enrolled and

in regular daily attendance in the district for the current school

year pursuant to rules promulgated by the superintendent. Not later

than the sixth Wednesday after the pupil membership count day and

not later than the sixth Wednesday after the supplemental count

day, the district shall certify the data in a form and manner

prescribed by the center and file the certified data with the

intermediate superintendent. If a district fails to submit and

certify the attendance data, as required under this subsection, the

center shall notify the department and state aid due to be

distributed under this article shall be withheld from the

defaulting district immediately, beginning with the next payment

after the failure and continuing with each payment until the

district complies with this subsection. If a district does not

comply with this subsection by the end of the fiscal year, the

district forfeits the amount withheld. A person who willfully

falsifies a figure or statement in the certified and sworn copy of

enrollment shall be punished in the manner prescribed by section

161.

(2) To be eligible to receive state aid under this article,

not later than the twenty-fourth Wednesday after the pupil

membership count day and not later than the twenty-fourth Wednesday

after the supplemental count day, an intermediate district shall

submit to the center, in a form and manner prescribed by the

center, the audited enrollment and attendance data for the pupils

of its constituent districts and of the intermediate district. If

an intermediate district fails to submit the audited data as

required under this subsection, state aid due to be distributed

under this article shall be withheld from the defaulting

intermediate district immediately, beginning with the next payment

after the failure and continuing with each payment until the

intermediate district complies with this subsection. If an

intermediate district does not comply with this subsection by the

end of the fiscal year, the intermediate district forfeits the

amount withheld.

(3) Except as otherwise provided in subsections (11) and (12),

all of the following apply to the provision of pupil instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours and, beginning in 2010-

2011, the required minimum number of days of pupil instruction.

Beginning in 2014-2015, the required minimum number of days of

pupil instruction is 175. However, all of the following apply to

these requirements:

(i) If a collective bargaining agreement that provides a

complete school calendar was in effect for employees of a district

as of July 1, 2013, and if that school calendar is not in

compliance with this subsection, then this subsection does not

apply to that district until after the expiration of that

collective bargaining agreement. If a district entered into a

collective bargaining agreement on or after July 1, 2013 and if

that collective bargaining agreement did not provide for at least

175 days of pupil instruction beginning in 2014-2015, then the

department shall withhold from the district's total state school

aid an amount equal to 5% of the funding the district receives in

2014-2015 under sections 22a and 22b.

(ii) A district may apply for a waiver under subsection (9)

from the requirements of this subdivision.

(b) Beginning in 2016-2017, the required minimum number of

days of pupil instruction is 180. If a collective bargaining

agreement that provides a complete school calendar was in effect

for employees of a district as of the effective date of the

amendatory act that added this subdivision, and if that school

calendar is not in compliance with this subdivision, then this

subdivision does not apply to that district until after the

expiration of that collective bargaining agreement. A district may

apply for a waiver under subsection (9) from the requirements of

this subdivision.

failing to comply with the required minimum hours and days of pupil

instruction under this subsection shall forfeit from its total

state aid allocation an amount determined by applying a ratio of

the number of hours or days the district was in noncompliance in

relation to the required minimum number of hours and days under

this subsection. Not later than August 1, the board of each

district shall either certify to the department that the district

was in full compliance with this section regarding the number of

hours and days of pupil instruction in the previous school year, or

report to the department, in a form and manner prescribed by the

center, each instance of noncompliance. If the district did not

provide at least the required minimum number of hours and days of

pupil instruction under this subsection, the deduction of state aid

shall be made in the following fiscal year from the first payment

of state school aid. A district is not subject to forfeiture of

funds under this subsection for a fiscal year in which a forfeiture

was already imposed under subsection (6).

(d) Hours or days lost because of strikes or teachers'

conferences shall not be counted as hours or days of pupil

instruction.

(e) If a collective bargaining agreement that provides a

complete school calendar is in effect for employees of a district

as of October 19, 2009, and if that school calendar is not in

compliance with this subsection, then this subsection does not

apply to that district until after the expiration of that

collective bargaining agreement.

(f) Except as otherwise provided in subdivisions (g) and (h),

a district not having at least 75% of the district's membership in

attendance on any day of pupil instruction shall receive state aid

in that proportion of 1/180 that the actual percent of attendance

bears to the specified percentage.

(g) If a district adds 1 or more days of pupil instruction to

the end of its instructional calendar for a school year to comply

with subdivision (a) because the district otherwise would fail to

provide the required minimum number of days of pupil instruction

even after the operation of subsection (4) due to conditions not

within the control of school authorities, then subdivision (f) does

not apply for any day of pupil instruction that is added to the end

of the instructional calendar. Instead, for any of those days, if

the district does not have at least 60% of the district's

membership in attendance on that day, the district shall receive

state aid in that proportion of 1/180 that the actual percentage of

attendance bears to the specified percentage. For any day of pupil

instruction added to the instructional calendar as described in

this subdivision, the district shall report to the department the

percentage of the district's membership that is in attendance, in

the form and manner prescribed by the department.

(h) At the request of a district that operates a department-

approved alternative education program and that does not provide

instruction for pupils in all of grades K to 12, the superintendent

shall grant a waiver from the requirements of subdivision (f). The

waiver shall indicate that an eligible district is subject to the

proration provisions of subdivision (f) only if the district does

not have at least 50% of the district's membership in attendance on

any day of pupil instruction. In order to be eligible for this

waiver, a district must maintain records to substantiate its

compliance with the following requirements:

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil's individual education plan.

(i) All of the following apply to a waiver granted under

subdivision (h):

(i) If the waiver is for a blended model of delivery, a waiver

that is granted for the 2011-2012 fiscal year or a subsequent

fiscal year remains in effect unless it is revoked by the

superintendent.

(ii) If the waiver is for a 100% online model of delivery and

the educational program for which the waiver is granted makes

educational services available to pupils for a minimum of at least

1,098 hours during a school year and ensures that each pupil

participates in the educational program for at least 1,098 hours

during a school year, a waiver that is granted for the 2011-2012

fiscal year or a subsequent fiscal year remains in effect unless it

is revoked by the superintendent.

(iii) A waiver that is not a waiver described in subparagraph

(i) or (ii) is valid for 1 fiscal year and must be renewed annually

to remain in effect.

(j) The superintendent shall promulgate rules for the

implementation of this subsection.

(4) Except as otherwise provided in this subsection, the first

6 days or the equivalent number of hours for which pupil

instruction is not provided because of conditions not within the

control of school authorities, such as severe storms, fires,

epidemics, utility power unavailability, water or sewer failure, or

health conditions as defined by the city, county, or state health

authorities, shall be counted as hours and days of pupil

instruction. With the approval of the superintendent of public

instruction, the department shall count as hours and days of pupil

instruction for a fiscal year not more than 3 additional days or

the equivalent number of additional hours for which pupil

instruction is not provided in a district due to unusual and

extenuating occurrences resulting from conditions not within the

control of school authorities such as those conditions described in

this subsection. Subsequent such hours or days shall not be counted

as hours or days of pupil instruction.

(5) A district shall not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) In addition to any other penalty or forfeiture under this

section, if at any time the department determines that 1 or more of

the following have occurred in a district, the district shall

forfeit in the current fiscal year beginning in the next payment to

be calculated by the department a proportion of the funds due to

the district under this article that is equal to the proportion

below the required minimum number of hours and days of pupil

instruction under subsection (3), as specified in the following:

(a) The district fails to operate its schools for at least the

required minimum number of hours and days of pupil instruction

under subsection (3) in a school year, including hours and days

counted under subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours and days of pupil instruction under subsection (3) in a

school year, including hours and days counted under subsection (4).

(7) In providing the minimum number of hours and days of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, shall be considered to be pupil instruction time for

the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a junior reserve officer training corps (JROTC) program shall be

considered to be pupil instruction time regardless of whether the

instructor is a certificated teacher if all of the following are

met:

(i) The instructor has met all of the requirements established

by the United States Department of Defense and the applicable

branch of the armed services for serving as an instructor in the

junior reserve officer training corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) Except as otherwise provided in subsections (11) and (12),

the department shall apply the guidelines under subsection (7) in

calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent shall waive for a district the minimum

number of hours and days of pupil instruction requirement of

subsection (3) for a department-approved alternative education

program or another innovative program approved by the department,

including a 4-day school week. If a district applies for and

receives a waiver under this subsection and complies with the terms

of the waiver, the district is not subject to forfeiture under this

section for the specific program covered by the waiver. If the

district does not comply with the terms of the waiver, the amount

of the forfeiture shall be calculated based upon a comparison of

the number of hours and days of pupil instruction actually provided

to the minimum number of hours and days of pupil instruction

required under subsection (3). Pupils enrolled in a department-

approved alternative education program under this subsection shall

be reported to the center in a form and manner determined by the

center. All of the following apply to a waiver granted under this

subsection:

(a) If the waiver is for a blended model of delivery, a waiver

that is granted for the 2011-2012 fiscal year or a subsequent

fiscal year remains in effect unless it is revoked by the

superintendent.

(b) If the waiver is for a 100% online model of delivery and

the educational program for which the waiver is granted makes

educational services available to pupils for a minimum of at least

1,098 hours during a school year and ensures that each pupil is on

track for course completion at proficiency level, a waiver that is

granted for the 2011-2012 fiscal year or a subsequent fiscal year

remains in effect unless it is revoked by the superintendent.

or (b) is valid for 1 fiscal year and must be renewed annually to

remain in effect.

(d) For 2018-2019 only, the department shall grant a waiver to

a district that applies for a waiver for a blended model of

delivery after the department's application deadline if the

district meets the other requirements for a waiver under this

subsection.

(10) Until 2014-2015, a district may count up to 38 hours of

qualifying professional development for teachers as hours of pupil

instruction. However, if a collective bargaining agreement that

provides for the counting of up to 38 hours of qualifying

professional development for teachers as pupil instruction is in

effect for employees of a district as of July 1, 2013, then until

the school year that begins after the expiration of that collective

bargaining agreement a district may count up to the contractually

specified number of hours of qualifying professional development

for teachers as hours of pupil instruction. Professional

development provided online is allowable and encouraged, as long as

the instruction has been approved by the district. The department

shall issue a list of approved online professional development

providers, which shall include the Michigan Virtual School. As used

in this subsection, "qualifying professional development" means

professional development that is focused on 1 or more of the

following:

(a) Achieving or improving adequate yearly progress as defined

under the no child left behind act of 2001, Public Law 107-110.

(b) Achieving accreditation or improving a school's

accreditation status under section 1280 of the revised school code,

MCL 380.1280.

the no child left behind act of 2001, Public Law 107-110.

(d) Integrating technology into classroom instruction.

(e) Maintaining teacher certification.

(11) Subsections (3) and (8) do not apply to a school of

excellence that is a cyber school, as defined in section 551 of the

revised school code, MCL 380.551, and is in compliance with section

553a of the revised school code, MCL 380.553a.

(12) Subsections (3) and (8) do not apply to eligible pupils

enrolled in a dropout recovery program that meets the requirements

of section 23a. As used in this subsection, "eligible pupil" means

that term as defined in section 23a.

(13) Beginning in 2013, at least every 2 years the

superintendent shall review the waiver standards set forth in the

pupil accounting and auditing manuals to ensure that the waiver

standards and waiver process continue to be appropriate and

responsive to changing trends in online learning. The

superintendent shall solicit and consider input from stakeholders

as part of this review.

Sec. 104f. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed $500,000.00

for the implementation of an assessment digital literacy

preparation pilot project for pupils enrolled in grades K to 8 for

2018-2019. The department shall ensure that a pilot project funded

under this subsection satisfies all of the following:

(a) Is available to districts in the 2019-2020 school year.

(b) Focuses on ensuring pupils have the necessary skills

required for state online assessments by assessing pupil digital

literacy skill levels and providing teachers with a digital

curriculum targeted at areas of determined weakness.

independent or teacher-facilitated modality.

(d) Includes training and professional development for

teachers.

(e) Is implemented in at least 100 districts that operate

grades K to 8 and that represent a diverse geography and socio-

economic demographic.

(2) Funding under subsection (1) shall be allocated to a

district that did not receive funding under former section 104e for

2017-2018 and operates at least grades K to 8 and has a partnership

with a third party that is experienced in the assessment of digital

literacy and the preparation of digital literacy skills and has

demonstrable experience serving districts in this state and local

education agencies in 10 other states. The district, along with its

third-party partner, shall provide a report to the house and senate

appropriations subcommittees on school aid and the house and senate

fiscal agencies on the efficacy and usefulness of the assessment

digital literacy preparation pilot project no later than April 1,

2020.

(3) Notwithstanding section 17b, payments under subsection (1)

shall be made not later than March 1, 2019 in a manner determined

by the department.

Sec. 265. (1) Payments under section 265a for performance

funding for fiscal years 2018-2019, 2019-2020, and 2020-2021 shall

only be made to a public university that certifies to the state

budget director by August 31, 2018 that its board did not adopt an

increase in tuition and fee rates for resident undergraduate

students after September 1, 2017 for the 2017-2018 academic year

and that its board will not adopt an increase in tuition and fee

rates for resident undergraduate students for the 2018-2019

academic year that is greater than 3.8% or $490.00, whichever is

greater. As used in this subsection:

(a) "Fee" means any board-authorized fee that will be paid by

more than 1/2 of all resident undergraduate students at least once

during their enrollment at a public university, as described in the

higher education institutional data inventory (HEIDI) user manual.

A university increasing a fee that applies to a specific subset of

students or courses shall provide sufficient information to prove

that the increase applied to that subset will not cause the

increase in the average amount of board-authorized total tuition

and fees paid by resident undergraduate students in the 2018-2019

academic year to exceed the limit established in this subsection.

(b) "Tuition and fee rate" means the average of full-time

rates paid by a majority of students in each undergraduate class,

based on an unweighted average of the rates authorized by the

university board and actually charged to students, deducting any

uniformly rebated or refunded amounts, for the 2 semesters with the

highest levels of full-time equated resident undergraduate

enrollment during the academic year, as described in the higher

education institutional data inventory (HEIDI) user manual.

~~(c) For purposes of subdivision (a), for a public university~~

~~that compels resident undergraduate students to be covered by~~

~~health insurance as a condition to enroll at the university, "fee"~~

~~includes the annual amount a student is charged for coverage by the~~

~~university-affiliated group health insurance policy if he or she~~

~~does not provide proof that he or she is otherwise covered by~~

~~health insurance. This subdivision does not apply to limited~~

~~subsets of resident undergraduate students to be covered by health~~

~~insurance for specific reasons other than general enrollment at the~~

~~university.~~

(2) The state budget director shall implement uniform

reporting requirements to ensure that a public university receiving

a payment under section 265a for performance funding has satisfied

the tuition restraint requirements of this section. The state

budget director shall have the sole authority to determine if a

public university has met the requirements of this section.

Information reported by a public university to the state budget

director under this subsection shall also be reported to the house

and senate appropriations subcommittees on higher education and the

house and senate fiscal agencies.

(3) Universities that exceed the tuition and fee rate cap

described in subsection (1) shall not receive a planning or

construction authorization for a state-funded capital outlay

project in fiscal year 2019-2020, fiscal year 2020-2021, or fiscal

year 2021-2022.

(4) Notwithstanding any other provision of this act, the

legislature may at any time adjust appropriations for a university

that adopts an increase in tuition and fee rates for resident

undergraduate students that exceeds the rate cap established in

subsection (1).

Sec. 297c. (1) From the appropriation in section 297, there is

allocated for 2017-2018 an amount not to exceed $25,500,000.00 for

the Michigan talent pledge scholarship program administered by the

department of treasury.

(2) From the allocation in subsection (1), there is allocated

for 2017-2018 an amount not to exceed $20,000,000.00 to be used for

the purpose of assisting low-income individuals with the cost of

obtaining a qualifying degree or credential in high-demand fields.

The funds must be used to fund scholarships and stipends for 3

~~cohorts of~~ eligible individuals over 4 years. Awards shall be in

the following amounts:

(a) $750.00 scholarship award for individuals enrolled in an

eligible program that leads to a 1-year credential, in addition to

a $250.00 stipend paid to the individual.

(b) $500.00 scholarship award each year for 2 years for

individuals enrolled in an eligible program that leads to a 2-year

credential, in addition to a $250.00 stipend each year paid to the

individual.

(3) To be eligible for a scholarship grant under this section,

an individual shall meet all of the following:

(a) Except for an individual under the age of 18, possess a

high school diploma, recognized equivalency, or recognized

equivalency certificate.

(b) Be a resident of this state and a citizen of the United

States of America.

annually.

(d) ~~Meet the same income qualification requirements as the~~

~~Healthy Michigan plan under section 107 of the social welfare act,~~

~~1939 PA 280, MCL 400.107, at the time of application.~~Have an annual

income at the time of application that is at or below 133% of the

federal poverty guidelines published annually by the United States

Department of Health and Human Services.

(e) Be enrolled ~~full-time~~ in a qualifying program at an

eligible postsecondary institution.

(f) Apply for a grant in a form and manner prescribed by the

department of treasury.

(g) Maintain a cumulative grade point average of at least 2.5,

if the institution utilizes a standard grading model, or, if the

institution utilizes a competency-based grading model during his or

her time enrolled in an eligible postsecondary institution, make

sufficient progress through the curriculum to complete the program.

(h) Is between the ages of 16 and 45 at the time of

application.

(4) A postsecondary institution is eligible under this section

if the postsecondary institution is a public or private nonprofit

college or university, junior college, community college, or

private training provider that grants degrees or certificates and

is located in this state and provides proof, in a form and manner

prescribed by the department of treasury, in cooperation with the

department of talent and economic development, that it has

implemented a talent guarantee for the relevant qualifying program

under subsection (5). For the purposes of this subsection, "talent

guarantee" means a process by which the institution will provide

relevant training in the relevant field at no cost to a graduate

who successfully completes a qualifying program under subsection

(5), if the graduate is unable to find or keep a job in the

relevant field at a relevant level due to a lack of technical

skills. Institutions are encouraged to work with their local

Michigan works agencies to implement this guarantee.

(5) A program must meet all of the following to be a

qualifying program under this section:

(a) Completion of the program must result in a credential in a

qualifying high-demand field.

(b) The program is intended to be completed in no more than 1

year for an award under subsection (2)(a), or no more than 2 years

for an award under subsection (2)(b).

model.

(6) The department of treasury shall develop an application

and eligibility determination process that will provide the highest

level of participation and ensure that all requirements of the

program are met.

(7) The department of treasury shall provide payment on behalf

of an individual eligible under subsection (3) for the scholarship

award amounts described in subsection (2)(a) and (b). The

department of treasury shall reimburse the eligible postsecondary

institution no later than 30 days after the start of the fiscal

year. Subject to subsection (8), the department of treasury shall

only accept standard per-credit hour tuition billings and shall

reject billings that are excessive or outside of the guidelines for

the type of educational institution. For the stipend amounts under

subsection (2)(a) and (b), the department of treasury shall

collaborate with eligible postsecondary institutions to ensure that

a prorated amount of the stipend is forwarded to the student

following each regular meeting with a coach, mentor, or counselor

as an incentive for the student to meet with the coach, mentor, or

counselor.

(8) For the department of treasury to pay a scholarship award

on behalf of an individual eligible under subsection (3), at least

1 of the following must apply:

(a) For individuals enrolled at a community college in this

state, the individual is charged the current in-district tuition

and mandatory fees.

(b) For individuals enrolled at a public university in this

state, the individual is charged the lower division resident

tuition and mandatory fees for the current year.

degree-granting college or university in this state or a federal

tribally controlled community college in this state, the mandatory

fees and per-credit payment charged to the individual do not exceed

the average community college in-district per-credit tuition rate

as reported on August 1 of the immediately preceding academic year.

(9) The department of treasury shall collaborate with the

center to use the P-20 longitudinal data system to report the

number of students who are engaged in and have completed a program

using an award granted under this section.

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

allocated for 2017-2018 an amount not to exceed $2,440,000.00 for

grants to community colleges, universities, or private nonprofit

colleges for the purpose of providing coaches to students who

receive scholarship awards under this section. The coaches funded

under this subsection shall provide intense mentoring and advising

to recipients of scholarships under this section, focusing on

ensuring that students complete programs for which they receive

scholarships under this section. Grants awarded under this

subsection must be made to eligible postsecondary institutions in

the amount not to exceed $40,000.00 per coach.

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

an amount allocated for 2017-2018 not to exceed $2,300,000.00 to be

used for grants to districts for stipends for students and bonus

payments to districts that are parties to a talent consortium and

whose students successfully earn an in-demand workforce certificate

in a high-demand field. For the purposes of funding under this

subsection, a workforce certificate must, as determined by the

department of talent and economic development, be entry-level or

above, recognized by statewide industry, and in a high-demand,

high-salary, high-upward mobility career. Grants awarded under this

subsection must be in the amount of $500.00 per student who

successfully completes an in-demand credential in a high-demand

field in calendar year 2019 or 2020. A grant awarded under this

subsection shall be distributed in an amount of $250.00 to the

student and in an amount of $250.00 to the district. A district

seeking a grant under this subsection shall apply in a form and

manner prescribed by the department. ~~of treasury.~~ An application

for a grant under this subsection must describe the credentials

that students will earn using funds awarded under this subsection.

The department ~~of treasury~~ shall work with the department of talent

and economic development to award grants under this subsection and

notify applicants of the decision to award a grant not later than

30 days after receiving an application.

(12) The following do not qualify as in-demand credentials in

a high-demand field for the purposes of subsection (11):

(a) A high school diploma or equivalent.

(b) An advanced placement test other than physics c:

electricity and magnetism, physics c: mechanics, computer science

a, or computer science principles.

(13) From the funds allocated in subsection (1), there is an

amount allocated not to exceed $760,000.00 to the department of

treasury for costs related to the administration of this section.

Sec. 297h. (1) As used in this article:

(a) "Competency-based education" and "competency-based

instructional model" mean an approach to teaching and pupil

learning where pupils are evaluated on individual competencies, and

only when they master them, they move on to more advanced

competencies. For the purposes of this article, competency-based

instructional programs must meet at least all of the following:

(i) The majority of instructional time is spent on pupil-

driven projects in multiple subject areas as well as 21st century

skills such as leadership, teamwork, problem solving, and

communication. Instructional time may take place outside of the

traditional school calendar.

(ii) Includes an innovative partnership with employers or

postsecondary institutions, or both, as appropriate, to provide

contextualized learning opportunities that emphasize attainment of

competencies that include application and creation of knowledge

along with the development of work-ready skills.

(iii) Includes the use of multiple and innovative methods to

determine pupil achievement of competencies in a subject area or

combined subject areas such as public presentations, submission of

research papers, attaining marketable workforce credentials, and

mentoring other pupils.

(b) "Credential" means proof of competency in a high-demand,

high-salary, and high-upward mobility field or any other

designation determined to be in high demand. A credential must be

stackable, which means that it can lead to a more advanced

recognized credential. A high school diploma is not a credential.

manufacturing, engineering, information technology and computer

science, machine learning and artificial intelligence, mobility,

health care, and business.

(d) "Talent agreement" means, subject to subsection (2), an

agreement that is signed by the members of a talent consortium and

is approved by the department of talent and economic development

and the department. A talent agreement must include at least all of

the following:

(i) A description of how the members will create a seamless,

competency-based education model that results in pupils acquiring

high-demand skills and credentials.

(ii) A formalized process by which the talent consortium will

periodically review and update employer needs and which skills and

credentials are in demand, including, but not limited to, a 2-, 5-,

and 20-year talent skills projection.

(iii) A detailed plan on how curriculum and instruction will

be changed to address the changing employer and talent skills

needs.

(iv) If a postsecondary institution is a member of a talent

consortium, how the postsecondary institution will reduce barriers

as pupils transition through phases of their education from K-12

education to postsecondary education and into the workforce. These

efforts may include, but are not limited to, the following:

(A) Dual enrollment practices.

(B) The acceptance of talent portfolios for college

admissions.

(D) The creation of career pathways beginning in middle school

and high school.

(E) In-classroom mentoring or career counseling.

(F) Prehiring agreements in which employers promise to hire

graduates of a program.

(v) How any grant dollars received will further the goals of

the consortium.

(vi) How members will continue to collaborate after a grant is

awarded.

(e) "Talent consortium" means a consortium of entities that

enter into a talent agreement for the purposes of funding under

this article. A talent consortium must include at least 1 district

or intermediate district and at least 2 employers or organizations

representing employers. However, a talent consortium with only 1

district that is a tier 3 district is not required to include more

than 1 employer or organization representing employers. A talent

consortium may include a private training provider that grants

degrees or certificates and is located in this state, community

colleges, colleges, or universities. A talent consortium is not

bound by size or geographic locations in this state.

(f) "Tier 1 district" means a district with a pupil membership

in 2017-2018 of at least 3,800.

(g) "Tier 2 district" means a district with a pupil membership

in 2017-2018 of at least 1,400 but less than 3,800.

(h) "Tier 3 district" means a district with a pupil membership

in 2017-2018 of less than 1,400.

(2) If a national organization or company with expertise in

the talent needs or education programs addressed by a talent

agreement submits a letter of support for the grant application in

lieu of signing the talent agreement, and that letter of support

outlines how the organization or company will support the work of

the talent consortium, then the organization or company is

considered to be a contributing partner of that talent consortium

without signing the talent agreement.

Sec. 297i. (1) The department, in consultation with the

department of talent and economic development, shall develop a

consolidated grant application for grants under sections 297a,

297b, and 297d, except for grants under section 297a(4). The

department, in consultation with the department of talent and

economic development, may develop additional consolidated

applications for grants under this article. A consolidated

application developed under this subsection must require an

applicant to identify the grant or grants for which the applicant

is applying and the amount of the award the applicant is requesting

for each grant.

(2) The department shall begin accepting consolidated

applications for grants under this article not later than March 31,

2019.

(3) Not later than June 1, 2019, the department, in

consultation with the department of talent and economic

development, shall award at least 50% of the funds allocated under

sections 297a, 297b, and 297d.

Enacting section 1. In accordance with section 30 of article

IX of the state constitution of 1963, total state spending on

school aid under article I of the state school aid act of 1979,

1979 PA 94, MCL 388.1601 to 388.1772, as amended by 2018 PA 265 and

this amendatory act, from state sources for fiscal year 2018-2019

is estimated at $13,098,645,300.00 and state appropriations for

school aid to be paid to local units of government for fiscal year

2018-2019 are estimated at $12,900,901,000.00.