SB-0365, As Passed House, July 17, 2003

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 365

                                                                             A bill to amend 1979 PA 94, entitled                                              

"The state school aid act of 1979,"                                         

by amending section 94a (MCL 388.1694a), as amended by 2002 PA              

521.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 94a.  (1) There is created within the office of the                    

2   state budget director in the department of management and budget            

3   the center for educational performance and information.  The                

4   center shall do all of the following:                                       

5       (a) Coordinate the collection of all data required by state                 

6   and federal law from all entities receiving funds under this                

7   act.                                                                        

8       (b) Collect data in the most efficient manner possible in                   

9   order to reduce the administrative burden on reporting entities.            

10      (c) Establish procedures to ensure the validity and                         

1   reliability of the data and the collection process.                         

2       (d) Develop state and model local data collection policies,                 

3   including, but not limited to, policies that ensure the privacy             

4   of individual student data.  State privacy policies shall ensure            

5   that student social security numbers are not released to the                

6   public for any purpose.                                                     

7       (e) Provide data in a useful manner to allow state and local                

8   policymakers to make informed policy decisions.                             

9       (f) Provide reports to the citizens of this state to allow                  

10  them to assess allocation of resources and the return on their              

11  investment in the education system of this state.                           

12      (g) Assist all entities receiving funds under this act in                   

13  complying with audits performed according to generally accepted             

14  accounting procedures.                                                      

15      (h) Other functions as assigned by the state budget                         

16  director.                                                                   

17  (2) Not later than August 15, 2004, each state department,                  

18  officer, or agency that collects information from districts or              

19  intermediate districts as required under state or federal law               

20  shall make arrangements with the center, and with the districts             

21  or intermediate districts, to have the center collect the                   

22  information and to provide it to the department, officer, or                

23  agency as necessary.  To the extent that it does not cause                  

24  financial hardship, the center shall arrange to collect the                 

25  information in a manner that allows electronic submission of the            

26  information to the center.  Each affected state department,                 

27  officer, or agency shall provide the center with any details                

1   necessary for the center to collect information as provided under           

2   this subsection.  This subsection does not apply to information             

3   collected by the department of treasury under the uniform                   

4   budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a;           

5   the revised municipal finance act, 2001 PA 34, MCL 141.2101 to              

6   141.2821; 1961 PA 108, MCL 388.951 to 388.963; or section 1351a             

7   of the revised school code, MCL 380.1351a.

8   (3)  (2)  The state budget director shall appoint a CEPI                    

9   advisory committee, consisting of the following members:                    

10      (a) One representative from the house fiscal agency.                        

11      (b) One representative from the senate fiscal agency.                       

12      (c) One representative from the office of the state budget                  

13  director.                                                                   

14      (d) One representative from the state education agency.                     

15      (e) One representative each from the department of career                   

16  development and the department of treasury.                                 

17      (f) Three representatives from intermediate school                          

18  districts.                                                                  

19      (g) One representative from each of the following educational               

20  organizations:                                                              

21                                                                               (i) Michigan association of school boards.                                          

22      (ii) Michigan association of school administrators.                          

23      (iii) Michigan school business officials.                                    

24      (h) One representative representing private sector firms                    

25  responsible for auditing school records.                                    

26      (i) Other representatives as the state budget director                      

27  determines are necessary.                                                   

1   (4)  (3)  The CEPI advisory committee appointed under                       

2   subsection  (2) (3) shall provide advice to the director of the            

3   center regarding the management of the center's data collection             

4   activities, including, but not limited to:                                  

5       (a) Determining what data is necessary to collect and                       

6   maintain in order to perform the center's functions in the most             

7   efficient manner possible.                                                  

8       (b) Defining the roles of all stakeholders in the data                      

9   collection system.                                                          

10      (c) Recommending timelines for the implementation and ongoing               

11  collection of data.                                                         

12      (d) Establishing and maintaining data definitions, data                     

13  transmission protocols, and system specifications and procedures            

14  for the efficient and accurate transmission and collection of               

15  data.                                                                       

16      (e) Establishing and maintaining a process for ensuring the                 

17  accuracy of the data.                                                       

18      (f) Establishing and maintaining state and model local                      

19  policies related to data collection, including, but not limited             

20  to, privacy policies related to individual student data.                    

21      (g) Ensuring the data is made available to state and local                  

22  policymakers and citizens of this state in the most useful format           

23  possible.                                                                   

24      (h) Other matters as determined by the state budget director                

25  or the director of the center.                                              

26  (5)  (4)  The center may enter into any interlocal agreements               

27  necessary to fulfill its functions.                                         

1   (6)  (5) From the general fund appropriation in section 11,                 

2   there is allocated an amount not to exceed $2,332,000.00 for                

3   2001-2002 for payments to the center.  From the general fund                

4   appropriation in section 11, there is allocated an amount not to            

5   exceed $4,500,000.00 each fiscal year for 2002-2003 and for                 

6   2003-2004 to the department of management and budget to support             

7   the operations of the center.  The center shall cooperate with              

8   the state education agency to ensure that this state is in                  

9   compliance with federal law and is maximizing opportunities for             

10  increased federal funding to improve education in this state.  In           

11  addition, from the federal funds appropriated in section 11 for             

12  2002-2003 and for 2003-2004, there is allocated the following               

13  amounts each fiscal year in order to fulfill federal reporting              

14  requirements:                                                               

15      (a) An amount estimated at $1,000,000.00 funded from                        

16  DED-OESE, title I, disadvantaged children funds.                            

17      (b) An amount estimated at $284,700.00 funded from DED-OESE,                

18  title I, reading first state grant funds.                                   

19      (c) An amount estimated at $46,750.00 funded from DED-OESE,                 

20  title I, migrant education funds.                                           

21      (d) An amount estimated at $500,000.00 funded from DED-OESE,                

22  improving teacher quality funds.                                            

23      (e) An amount estimated at $526,100.00 funded from DED-OESE,                

24  drug-free schools and communities funds.                                    

25  (7)  (6)  Funds allocated under this section that are not                   

26  expended in the fiscal year in which they were allocated may be             

27  carried forward to a subsequent fiscal year.  From the funds                

1   allocated for 1999-2000 that were carried forward under this                

2   section and from the general funds appropriated under this                  

3   section for 2002-2003, the center shall make grants to                      

4   intermediate districts for the purpose of assisting the                     

5   intermediate districts and their constituent districts in data              

6   collection required by state and federal law or necessary for               

7   audits according to generally accepted accounting procedures.               

8   Grants to each intermediate district shall be made at the rate of           

9   $2.00 per each full-time equated membership pupil times the total           

10  number of 2000-2001 pupils in membership in the intermediate                

11  district and its constituent districts.  An intermediate district           

12  shall develop a plan in cooperation with its constituent                    

13  districts to distribute the grants between the intermediate                 

14  district and its constituent districts.  These grants shall be              

15  paid to intermediate districts no later than the next regularly             

16  scheduled school aid payment after the effective date of this               

17  section.                                                                    

18  (8)  (7)  If the applicable intermediate district determines                

19  that the pupil counts submitted by a district for the February              

20  2002 supplemental pupil count using the single record student               

21  database cannot be audited by the intermediate district pursuant            

22  to section 101, all of the following apply:                                 

23      (a) The district may submit its pupil count data for the                    

24  February 2002 supplemental pupil count using the education data             

25  network system.                                                             

26      (b) If the applicable intermediate district determines that                 

27  the pupil counts submitted by the district for the 2002-2003                

1   pupil membership count day using the single record student                  

2   database cannot be audited by the intermediate district pursuant            

3   to section 101, the district may submit its pupil count data for            

4   the 2002-2003 pupil membership count day using the education data           

5   network system.                                                             

6   (9)  (8)  At least 30 days before implementing a proposed                   

7   electronic data collection, submission, or collation process, or            

8   a proposed change to 1 or more of those processes, the center               

9   shall submit the proposal and an analysis of the proposal to the            

10  senate and house of representatives appropriations subcommittees            

11  responsible for this act.  The analysis shall include at least a            

12  determination of the cost of the proposal for districts and                 

13  intermediate districts and of available funding for districts and           

14  intermediate districts.                                                     

15  (10) The center may bill departments as necessary in order to               

16  fulfill reporting requirements of state and federal law.

17  (11)  (9)  As used in this section:                                         

18      (a) "Center" means the center for educational performance and               

19  information created under this section.                                     

20      (b) "DED-OESE" means the United States department of                        

21  education office of elementary and secondary education.                     

22      (c) "State education agency" means the department.