HB-4693, As Passed Senate, February 5, 2004                                 

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4693

                                                                             A bill to amend 1976 PA 451, entitled                                             

"The revised school code,"                                                  

(MCL 380.1 to 380.1852) by adding section 1294.                             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 1294.  (1) A school district may apply to the                          

2   superintendent of public instruction for an educational                     

3   flexibility and empowerment contract under this section for the             

4   school district or for 1 or more schools operated by the school             

5   district.  An ed-flex contract allows the superintendent of                 

6   public instruction to waive a provision of this act or of the               

7   state school aid act of 1979, or of a rule promulgated under this           

8   act or the state school aid act of 1979, designated as part of a            

9   performance-based contract with clearly defined and measurable              

10  performance goals.  A school district also may apply to the                 

11  superintendent of public instruction for waiver of certain                  

1   federal requirements, in accordance with federal law allowing               

2   federal education waivers to be issued by this state.                       

3       (2) If the board of a school district intends to apply for an               

4   ed-flex contract, the board shall establish an ed-flex planning             

5   committee to work with the board to develop the resolution under            

6   subsection (3) and the application under subsection (4).  This              

7   committee shall include a representative of each of the school              

8   district's collective bargaining units that will be affected by             

9   the ed-flex contract.                                                       

10      (3) Before applying for an ed-flex contract, the board of a                 

11  school district must adopt a resolution indicating the board's              

12  intent to apply for the educational flexibility and empowerment             

13  contract.  If the contract is not intended to cover the entire              

14  school district, the resolution shall specify the schools to be             

15  covered.  Before adopting the resolution, the board shall hold at           

16  least 2 public hearings at which the types of waivers sought and            

17  the need for the waivers are explained and public comment is                

18  allowed.                                                                    

19      (4) A school district shall submit an application for an                    

20  ed-flex contract to the superintendent of public instruction in             

21  the form and manner prescribed by the department.  The                      

22  application shall contain at least all of the following:                    

23      (a) A specific listing of the statutes and rules proposed to                

24  be waived.  If the application is intended to also serve as an              

25  application for federal waivers under federal law, the                      

26  application also shall include a specific listing of the federal            

27  statutes and regulations proposed to be waived.                             

1   (b) A statement specifying the need for waiver for each                     

2   statute or rule proposed to be waived, including the purpose and            

3   intended results for each waiver.                                           

4       (c) A description, for each school year and for the overall                 

5   term of the contract, of the specific measurable goals for                  

6   improved pupil performance in the school district or school.                

7   These goals shall include, but are not limited to, goals for                

8   improving MEAP scores.                                                      

9       (d) A description, for each school year and for the overall                 

10  term of the contract, of the measurements to be used to determine           

11  whether the pupil performance goals under subdivision (c) have              

12  been met.                                                                   

13      (e) An explanation of how the contract and the waivers will                 

14  assist the school district or school in achieving its specified             

15  performance goals.                                                          

16      (f) A fiscal impact statement that estimates how the waiver                 

17  or waivers may increase or reduce program costs.                            

18      (g) If the contract is not intended to cover the entire                     

19  school district, the specific schools to be covered.                        

20      (h) A copy of the board resolution required under subsection                

21  (3).  If the application is intended to also serve as an                    

22  application for federal waivers under federal law, the                      

23  application also shall include an explanation of how the public             

24  notice requirements of federal law have been met.                           

25      (5) Within 60 days after receiving an application under                     

26  subsection (4), the superintendent of public instruction shall              

27  approve or disapprove the application and notify the school                 

1   district of the decision.  If the superintendent of public                  

2   instruction approves the application, the superintendent of                 

3   public instruction shall promptly enter into an ed-flex contract            

4   with the school district.  If the superintendent of public                  

5   instruction disapproves the application, the notification to the            

6   school district shall include notice of the specific reasons for            

7   the disapproval, and the school district may submit a revised               

8   application.  If the superintendent of public instruction does              

9   not act on an application and notify the school district of his             

10  or her decision within the time limits required under this                  

11  subsection, the application is considered approved and the                  

12  superintendent of public instruction shall promptly enter into              

13  the proposed ed-flex contract with the school district.                     

14      (6) The superintendent of public instruction shall not                      

15  approve an application submitted under subsection (4) unless he             

16  or she finds all of the following:                                          

17      (a) That the performance goals contained in the application                 

18  are sufficiently specific and will, if met, constitute improved             

19  pupil achievement.                                                          

20      (b) That the contract will allow the school district to                     

21  enhance learning and to operate in a more effective, efficient,             

22  or economical manner.                                                       

23      (c) That the district has exhibited financial responsibility                

24  during the preceding 3 fiscal years, as determined by the                   

25  superintendent of public instruction.  This does not preclude the           

26  approval of an educational flexibility and empowerment contract             

27  for a school district in current financial hardship, so long as             

House Bill No. 4693 as amended February 5, 2004                             

1   the hardship is not due to financial irresponsibility as                    

2    determined by the superintendent of public instruction.

    <<(d) That the contract will not result in the diminution of wages, hours, or other terms and conditions of employment for employees or collective bargaining units of the school district.>>

3       (7) In approving applications submitted under subsection (4),               

4   the superintendent of public instruction shall give priority to             

5   applications that are focused on reducing pupil achievement gaps            

6   based on race, gender, and socioeconomic status.                            

7       (8) The department shall prescribe the form of an ed-flex                   

8   contract.  The contract shall include at least all of the                   

9   following:                                                                  

10      (a) All matters addressed in the application.                               

11      (b) Assurance that the school district will report its annual               

12  progress toward its performance goals.                                      

13      (c) An agreement that, in order for the contract to be                      

14  renewed, the MEAP scores for the school district or school must             

15  demonstrate adequate annual progress toward meeting the                     

16  performance goals and must attain a specific measurable benchmark           

17  by the end of the contract.                                                 

18      (d) An agreement on the contents of the empowerment report to               

19  be filed by the school district at the end of the contract term.            

20  The empowerment report shall summarize the performance goals                

21  achieved during the term of the contract and the programs,                  

22  curriculum, or other innovative approaches used to achieve these            

23  goals.                                                                      

24      (e) The term of the contract, which shall not exceed 5                      

25  years.                                                                      

26      (9) The superintendent of public instruction may terminate an               

27  ed-flex contract for a school before the end of its term if the             

1   superintendent of public instruction determines that the school             

2   has experienced 2 consecutive years of declining pupil                      

3   performance, based on the performance goals and measurements set            

4   in the contract, or that the school has failed for 2 consecutive            

5   years to meet the adequate yearly progress standards of the no              

6   child left behind act of 2001, Public Law 107-110, in both                  

7   mathematics and English language arts at all applicable grade               

8   levels for all applicable subgroups.  The superintendent of                 

9   public instruction is not required to terminate an ed-flex                  

10  contract if he or she determines that the decline or failure is             

11  due to exceptional or uncontrollable circumstances.                         

12      (10) At the conclusion of the term of an ed-flex contract,                  

13  the school district shall submit its empowerment report                     

14  describing how the school district or school met or did not meet            

15  the performance goals set forth in the contract.  The                       

16  superintendent of public instruction may renew the ed-flex                  

17  contract if the performance goals have been met.                            

18      (11) The superintendent of public instruction may not waive                 

19  any of the following as part of an ed-flex contract:                        

20      (a) Health and safety requirements.                                         

21      (b) Statutory teacher certification requirements.                           

22      (c) A requirement under part 6a, except waiver of section                   

23  503(6) to the extent necessary to allow waiver of another                   

24  requirement that meets both of the following:                               

25                                                                               (i) Is imposed under a part of this act other than part 6a.                         

26      (ii) Is a requirement that may be waived under this section                  

27  for a school district that is not a public school academy.                  

1       (12) The superintendent of public instruction shall submit an               

2   annual report to the legislature on the status of the educational           

3   flexibility and empowerment program under this section, including           

4   a report on ed-flex contracts issued during the year, and on                

5   progress made toward attainment of performance goals.                       

6       (13) As the initial educational flexibility and empowerment                 

7   contracts issued under this section expire, the department shall            

8   post information on its website on the educational innovations              

9   and best practices used to achieve pupil performance goals under            

10  the contracts.                                                              

11      (14) Except as otherwise provided in subsection (11), any                   

12  provision of this act or the state school aid act of 1979, or of            

13  any rule promulgated under this act or the state school aid act             

14  of 1979, is subject to waiver under an ed-flex contract.                    

15      (15) As used in this section:                                               

16      (a) "Ed-flex contract" means an educational flexibility and                 

17  empowerment contract issued to a school district under this                 

18  section for the school district or for 1 or more schools operated           

19  by the school district.                                                     

20      (b) "Empowerment report" means the final evaluation report                  

21  required to be filed at the end of the term of an ed-flex                   

22  contract under subsection (10).                                             

23      (c) "MEAP scores" means the scores achieved by the pupils of                

24  a school district or school, as applicable, on all Michigan                 

25  educational assessment program tests administered to pupils of              

26  the school district or school.                                              

27      (d) "School district" means either a school district or a                   

1   public school academy, and "board" means either a school board or           

2   the board of directors of a public school academy.                          

3       (16) This section shall be known and may be cited as the                    

4   "educational flexibility and empowerment law".