SB-0188, As Passed Senate, May 17, 2007

SUBSTITUTE FOR

SENATE BILL NO. 188

      A bill to amend 1976 PA 451, entitled

"The revised school code,"

by amending sections 3, 7, 623a, 681, 684, and 686 (MCL 380.3,

380.7, 380.623a, 380.681, 380.684, and 380.686), section 3 as

amended by 2004 PA 303, section 623a as amended by 2004 PA 588,

section 681 as amended by 2004 PA 415, and section 684 as amended

by 1996 PA 277.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1        Sec. 3. (1) "Area" as used in the phrase "area vocational-

 2  technical education program" or "area career and technical

 3  education program" means the geographical territory, both within

 4  and without the boundaries of either a K to 12 school district,

 1  an intermediate school district, or a community college district,

 2  that is designated by the state board department as the service

 3  area for the operation of an area vocational-technical education

 4  program.

 5        (2) "Area vocational-technical education program", "area

 6  career and technical education program", or "career and technical

 7  education program" means a program of organized, systematic

 8  instruction designed to prepare the following persons for useful

 9  employment in recognized occupations:

10        (a) Persons participating in career and technical education

11  readiness activities that lead to enrollment in a career and

12  technical education program in high school.

13  (b) (a) Persons enrolled in high school in a school

14  district, intermediate school district, public school academy, or

15  nonpublic school.

16  (c) (b) Persons who have completed or left high school and

17  who are available for full-time study in preparation for entering

18  the labor market.

19  (d) (c) Persons who have entered the labor market and who

20  need training or retraining to achieve stability or advancement

21  in employment.

22        (3) "Board" or "school board" means the governing body of a

23  local school district or a local act school district unless

24  clearly otherwise stated. Except in part 5a or part 6, for a

25  school district organized as a first class school district, if

26  the question under section 410 is approved in the school

27  district, then beginning on the next January 1 occurring at least

 1  1 year after the question under section 410 is presented to the

 2  school electors in the school district, "board" or "school board"

 3  means the chief executive officer of the first class school

 4  district.

 5        (4) "Boarding school" means a place accepting for board,

 6  care, and instruction 5 or more children under 16 years of age.

 7        (5) "Constituent district" means a local school district or

 8  special act school district the territory of which is entirely

 9  within and is an integral part of an intermediate school

10  district.

11        Sec. 7. (1) "Valuation of a fractional school district"

12  means the sum of the valuations of the fractions thereof, each of

13  which shall be computed in the same manner as the valuation of a

14  whole school district.

15        (2) "Valuation of the state" means the equalized value as

16  determined by the state board of equalization.

17        (3) "Valuation of a whole school district" means the total

18  assessed value of the property contained in the district as fixed

19  by the township or city board of review, which in turn is

20  proportionately increased or decreased to the basis of the

21  valuation of the county containing the district as fixed by the

22  county board of equalization, and the result in turn

23  proportionately increased or decreased to the basis of the

24  valuation of the county containing the district as last fixed by

25  the state board of equalization, known as the "state equalized

26  valuation".

27        (4) "Vocational education" or "career and technical

 1  education" means vocational or technical training or retraining

 2  which is given in schools or classes, including field or

 3  laboratory work incidental thereto, under public supervision and

 4  control, and is conducted as part of a program designed to fit

 5  individuals for gainful employment as semiskilled or skilled

 6  workers or technicians in recognized occupations, excluding a

 7  program to fit individuals for employment in occupations which

 8  the state board determines and specifies to be generally

 9  considered professional or as requiring a baccalaureate or higher

10  degree. The term includes guidance and counseling in connection

11  with the training and instruction related to the occupation for

12  which the pupil is being trained or necessary for the pupil to

13  benefit from the training. The term includes the acquisition,

14  maintenance, and repair of instructional supplies, teaching aids,

15  and equipment, the construction or initial equipment of

16  buildings, and the acquisition or rental of land. education

17  designed to provide career development and the knowledge and

18  skills leading to technical employment or higher education in a

19  technical field. Career and technical education programs include

20  classroom and laboratory experiences and work-based instruction.

21  The term includes guidance and counseling for a pupil related to

22  the career for which the pupil is being educated and trained or

23  designed to help the pupil benefit from the training. Allowable

24  expenses related to career and technical education delivery

25  include all instructional, support, and administrative costs

26  associated with providing these activities, including, but not

27  limited to, staff salaries, wages, and benefits for career and

 1  technical education programs only; information and awareness

 2  activities; acquisition and rental of real property; construction

 3  of buildings; acquisition of equipment and supplies; and

 4  maintenance, repair, and replacement of buildings, lands,

 5  equipment, and supplies.

 6        Sec. 623a. (1) An intermediate school board shall adopt

 7  written policies governing the procurement of supplies,

 8  materials, and equipment.

 9        (2) Except as otherwise provided in subsection (3), an

10  intermediate school district shall not purchase an item or a

11  group of items purchased in a single transaction costing

12  $17,932.00 $19,211.00 or more unless competitive bids are

13  obtained for those items and the purchase of those items is

14  approved by the intermediate school board. The maximum amount

15  specified in this section shall be adjusted each year by

16  multiplying the amount for the immediately preceding year by the

17  percentage by which the average consumer price index for all

18  items for the 12 months ending August 31 of the year in which the

19  adjustment is made differs from that index's average for the 12

20  months ending on August 31 of the immediately preceding year and

21  adding that product to the maximum amount that applied in the

22  immediately preceding year, rounding to the nearest whole dollar.

23        (3) An intermediate school district is not required to

24  obtain competitive bids for items purchased through the

25  cooperative bulk purchasing program operated by the department of

26  management and budget under section 263(3) of the management and

27  budget act, 1984 PA 431, MCL 18.1263.

 1        (4) The intermediate school board of an intermediate school

 2  district may acquire by purchase, lease, or rental, with or

 3  without option to purchase, equipment necessary for the operation

 4  of intermediate school district programs, including, but not

 5  limited to, heating, water heating, and cooking equipment for

 6  school buildings, and may pay for the equipment from operating

 7  funds of the intermediate school district. Heating and cooking

 8  equipment may be purchased on a title retaining contract or other

 9  form of agreement creating a security interest and pledging in

10  payment money in the general fund or funds received from state

11  school aid. The contracts may extend for not more than 10 years.

12        Sec. 681. (1) An intermediate school district may establish

13  an area vocational-technical career and technical education

14  program and operate the program under sections 681 to 690 if

15  approved by a majority of the intermediate school electors of the

16  intermediate school district voting on the question. The election

17  shall be called and conducted in accordance with this act and the

18  Michigan election law. The establishment of the area vocational-

19  technical career and technical education program may be rescinded

20  by the same process.

21        (2) The question of establishing an area vocational-

22  technical career and technical education program may be submitted

23  to the intermediate school electors of an intermediate school

24  district at a regular school election or at a special election

25  held in each of the constituent districts. Subject to section 641

26  of the Michigan election law, MCL 168.641, the intermediate

27  school board shall determine the date of the election and shall

 1  give notice to the school district filing official at least 60

 2  days in advance of the date the ballot question is to be

 3  submitted to the intermediate school electors.

 4        (3) The ballot for referring the question of adopting

 5  sections 681 to 690 and establishing an area vocational-technical

 6  career and technical education program to the intermediate school

 7  electors of an intermediate school district shall be

 8  substantially in the following form:

 9        "Shall ____________ (legal name of intermediate school

10  district), state of Michigan, come under sections 681 to 690 of

11  the revised school code and establish an area vocational-

12  technical career and technical education program which is

13  designed to encourage the operation of area vocational-technical

14  career and technical education programs if the annual property

15  tax levied for this purpose is limited to ______ mills?

16 Yes        ( )

17 No         ( )".

18        (4) Beginning in 1995, and subject to section 625b, the

19  number of mills of ad valorem property taxes an intermediate

20  school board may levy for area vocational-technical career and

21  technical education program operating purposes under sections 681

22  to 690 is limited to the following:

23        (a) If the intermediate school district did not levy any

24  millage in 1993 for area vocational-technical career and

25  technical education program operating purposes under sections 681

26  to 690, the intermediate school board, with the approval of the

 1  intermediate school electors, may levy not more than 1 mill for

 2  those purposes.

 3        (b) If the intermediate school district levied millage in

 4  1993 for area vocational-technical career and technical education

 5  program operating purposes under sections 681 to 690, the

 6  intermediate school board, with the approval of the intermediate

 7  school electors, may levy mills for those purposes at a rate not

 8  to exceed 1.5 times the number of mills authorized for those

 9  purposes in the intermediate school district in 1993. Approval of

10  the intermediate school electors is not required for the levy

11  under this subdivision of previously authorized mills until that

12  authorization expires.

13        (5) An intermediate school district that levies a tax for

14  area vocational-technical career and technical education program

15  operating purposes shall not use proceeds from the tax for any

16  purpose other than area vocational-technical career and technical

17  education program operating purposes and shall submit to the

18  department of treasury a copy of the audit report from the audit

19  of the intermediate school district conducted under section 622a.

20  If the department of treasury determines from the audit report

21  that the proceeds from the tax have been used for a purpose other

22  than area vocational-technical career and technical education

23  program operating purposes, as defined under subsection (7), the

24  department of treasury shall notify the intermediate school

25  district of that determination. If the intermediate school

26  district disputes the determination or claims that the situation

27  has been corrected, within 15 days after receipt of the

 1  determination the intermediate school district may submit an

 2  appeal of the determination to the department of treasury. Within

 3  90 days after receipt of the appeal, the department of treasury

 4  shall consider the appeal and make a determination of whether the

 5  initial determination was correct or incorrect and of whether the

 6  situation has been corrected. If the department of treasury finds

 7  that the initial determination was correct and that the situation

 8  has not been corrected, then the department of treasury shall

 9  file a copy of the report with the attorney general. The attorney

10  general shall review the report and, if the attorney general

11  considers it appropriate, shall commence or direct the

12  prosecuting attorney for the county in which the violations

13  occurred to commence appropriate proceedings against the

14  intermediate school board or the official or employee. These

15  proceedings shall include at least a civil action in a court of

16  competent jurisdiction for the recovery of any public money

17  determined by the audit to have been illegally expended and for

18  the recovery of any public property determined by the audit to

19  have been converted or misappropriated.

20        (6) If the attorney general determines from a report filed

21  under subsection (5) that an intermediate school district has

22  misspent tax proceeds as described in subsection (5) and notifies

23  the intermediate school district of this determination, the

24  intermediate school district shall repay to its area vocational-

25  technical career and technical education program operating fund

26  an amount equal to the amount the department of treasury

27  determined under subsection (5) has been used for a purpose other

    Senate Bill No. 188 as amended May 16, 2007

 1  than area vocational-technical career and technical education

 2  program operating purposes. The intermediate school district

 3  shall make this repayment from funds of the intermediate school

 4  district that lawfully may be used for making such a repayment.

 5        (7) For the purposes of subsections (5) and (6), <<not later

    than August 1, 2007,>> the

 6  department and the department of treasury, in consultation with

 7  intermediate school districts, shall develop and make available

 8  to intermediate school districts a definition of area vocational-

 9  technical career and technical education program operating

10  purposes.

11        (8) An intermediate school district shall not hold more than

12  2 elections in a calendar year concerning the authorization of a

13  millage rate for area vocational-technical career and technical

14  education program operating purposes under sections 681 to 690.

<<(9) Within 30 days after receiving the audit results, An

INTERMEDIATE school district shall publish the results of any audit

    conducted concerning the area career and technical education program on

    the intermediate school district's website. The results shall remain

    posted on the website for at least 6 months.>>

15        Sec. 684. (1) An intermediate school board in which an area

16  vocational-technical career and technical education program has

17  been established may operate area vocational-technical career and

18  technical education programs or may contract with local school

19  districts or with community colleges for the operation of the

20  programs or with a private degree-granting postsecondary

21  institution if the intermediate school district is not within a

22  community college district and if there existed on or before July

23  1, 1992 a written agreement for the operation of such a program.

24  Area vocational-technical career and technical education programs

25  operated under sections 681 to 690 shall be submitted for review

26  of the representatives of the constituent districts of the

27  intermediate school district at an annual budget review meeting

 1  held on or before June 1 under section 624.

 2        (2) An intermediate school board may expend area vocational-

 3  technical career and technical education funds for the operation

 4  of area vocational-technical career and technical education

 5  programs approved by the state board for acquiring, purchasing,

 6  or constructing area vocational-technical education buildings,

 7  acquiring sites for area vocational-technical education

 8  buildings, and purchasing area vocational-technical education

 9  equipment for instructional, support, and administrative costs

10  associated with providing career and technical education

11  activities, including, but not limited to, staff salaries, wages,

12  and benefits for career and technical education programs only;

13  information and awareness activities; acquisition and rental of

14  real property; construction of buildings; acquisition of

15  equipment and supplies; and maintenance, repair, and replacement

16  of buildings, lands, equipment, and supplies. An intermediate

17  school board shall not expend area vocational-technical career

18  and technical education funds for purposes other than those set

19  forth in sections 681 to 690. An intermediate school board must

20  obtain state approval to use state or federal career and

21  technical education funds. Expenditure of vocational education

22  millage revenue for the purposes allowed under this subsection

23  shall be determined by the intermediate school board. However, if

24  the millage revenue is commingled with state or federal funds,

25  then the intermediate school district must obtain state approval

26  to use the commingled funds. If an audit by or on behalf of the

27  department determines that an intermediate school board has

 1  expended area career and technical education funds for a purpose

 2  other than those set forth in sections 681 to 690, the

 3  intermediate school district is subject to the measures under

 4  section 681(5) and (6).

 5        (3) The intermediate school board shall ensure that all of

 6  the following are met:

 7        (a) The intermediate school board shall notify the

 8  department at the time the area career and technical education

 9  program is established.

10        (b) In order to be responsive to local workforce needs,

11  emerging technologies, and local demand occupations, the

12  intermediate school district shall establish a program advisory

13  committee pursuant to administrative guidelines established by

14  the office of career and technical preparation within the

15  department. At least a majority of the members of the program

16  advisory committee shall be representatives from business and

17  industry.

18        (c) The program shall collect career and technical education

19  information data and distribute that data to the appropriate

20  state department or departments and to the program advisory

21  committee.

22        (d) The intermediate school district shall submit its career

23  and technical education plan to the department in the form and

24  manner prescribed by the department.

25        (4) The department may monitor career and technical

26  education programs funded with state or federal funding based

27  upon feedback from the program advisory committee and

 1  predetermined state or federal skills standards that include

 2  student outcomes.

 3        (5) The department, in consultation with the appropriate

 4  career and technical education professionals, shall develop a

 5  process for expedited state approval of programs that recognize

 6  local workforce needs, emerging technologies, and local demand

 7  occupations.

 8        (6) If there is a community college that offers career and

 9  technical preparation programs within the intermediate school

10  district, the intermediate school board shall collaborate with

11  the community college to minimize duplication of programs.

12        (7) An area career and technical education program shall

13  allow participation by public school academy and nonpublic school

14  pupils to the same extent as pupils of constituent districts.

15  (8) (3) An intermediate school board operating under

16  sections 681 to 690 may expend funds received under section 683

17  for the costs of a special election held to renew or increase the

18  millage limit on the annual property tax levied for area

19  vocational-technical career and technical education purposes.

20  (9) (4) The treasurer of an intermediate school board shall

21  pay out area vocational-technical career and technical education

22  funds on order of the intermediate school board.

23        Sec. 686. (1) An intermediate school board may make grants

24  of money to constituent districts operating area vocational-

25  technical career and technical education centers or to community

26  colleges serving the intermediate district with area vocational-

27  technical career and technical programs for the purpose of

 1  constructing area vocational-technical career and technical

 2  education buildings, for site acquisition, or for area

 3  vocational-technical career and technical education equipment, if

 4  prior to granting the funds before the grant is made the board of

 5  the constituent district in which the center is located contracts

 6  to receive nonresident children into the facility for a period of

 7  at least 15 years after the date of the contract, or if the board

 8  of trustees of the community college contracts to receive

 9  nonresident persons on a tuition basis into the facility for a

10  period of at least 15 years after the date of the contract.

11        (2) The contracts described in subsection (1) shall provide

12  that the constituent districts or community colleges are bound to

13  accept nonpublic school pupils and nonresident pupils into

14  designated area vocational-technical career and technical

15  education facilities in return for and in consideration of

16  grants-in-aid for the construction of area vocational-technical

17  career and technical education buildings and for the purchase of

18  area vocational-technical career and technical education

19  buildings, sites, and equipment.

20        (3) If an intermediate school district has provided at least

21  90% of the financial consideration for the acquisition or

22  construction of an area career and technical education facility,

23  a constituent district or community college may not dispose or

24  change the purpose of the facility without the consent of the

25  intermediate school board even if title to the facility is vested

26  in the constituent district or community college.

27        Enacting section 1. This amendatory act takes effect July 1,

 1  2007.