August 11, 2009, Introduced by Rep. Pavlov and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 3, 5, and 1701a (MCL 380.3, 380.5, and
380.1701a), section 3 as amended by 2007 PA 45, section 5 as
amended by 2005 PA 61, and section 1701a as amended by 2008 PA 1,
and by adding part 6d.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) "Area" as used in the phrase "area vocational-
technical education program" or "area career and technical
education program" means the geographical territory, within the
boundaries of a K to 12 school district, an intermediate school
district, or a community college district, that is designated by
the department as the service area for the operation of an area
vocational-technical education program.
(2) "Area vocational-technical education program", "area
career and technical education program", or "career and technical
education program" means a program of organized, systematic
instruction designed to prepare the following persons for useful
employment in recognized occupations:
(a) Persons participating in career and technical education
readiness activities that lead to enrollment in a career and
technical education program in high school.
(b) Persons enrolled in high school in a school district,
intermediate school district, public school academy, or nonpublic
school.
(c) Persons who have completed or left high school and who are
available for full-time study in preparation for entering the labor
market.
(d) Persons who have entered the labor market and who need
training or retraining to achieve stability or advancement in
employment.
(3) "Board" or "school board" means the governing body of a
local school district unless clearly otherwise stated.
(4) "Boarding school" means a place accepting for board, care,
and instruction 5 or more children under 16 years of age.
(5) "Constituent district" means a local school district the
territory of which is entirely within and is an integral part of an
intermediate school district.
(6) "Conversion school" means a conversion school established
under part 6d.
Sec. 5. (1) "Local act school district" or "special act school
district" means a district governed by a special or local act or
chapter of a local act. "Local school district" and "local school
district board" as used in article 3 include a local act school
district and a local act school district board.
(2) "Membership" means the number of full-time equivalent
pupils in a public school as determined by the number of pupils
registered for attendance plus pupils received by transfer and
minus pupils lost as defined by rules promulgated by the state
board.
(3) "Michigan election law" means the Michigan election law,
1954 PA 116, MCL 168.1 to 168.992.
(4) "Nonpublic school" means a private, denominational, or
parochial school.
(5) "Objectives" means measurable pupil academic skills and
knowledge.
(6) "Public school" means a public elementary or secondary
educational entity or agency that is established under this act,
has as its primary mission the teaching and learning of academic
and vocational-technical skills and knowledge, and is operated by a
school district, local act school district, special act school
district, intermediate school district, public school academy
corporation, strict discipline academy corporation, urban high
school academy corporation, conversion school corporation, or by
the department or state board. Public school also includes a
laboratory school or other elementary or secondary school that is
controlled and operated by a state public university described in
section 4, 5, or 6 of article VIII of the state constitution of
1963.
(7) "Public school academy" means a public school academy
established under part 6a and, except as used in part 6a, also
includes an urban high school academy established under part 6c, a
conversion school established under part 6d, and a strict
discipline academy established under sections 1311b to 1311l.
(8) "Pupil membership count day" of a school district means
that term as defined in section 6 of the state school aid act of
1979, MCL 388.1606.
(9) "Regular school election" or "regular election" means the
election held in a school district, local act school district, or
intermediate school district to elect a school board member in the
regular course of the terms of that office and held on the school
district's regular election date as determined under section 642 or
642a of the Michigan election law, MCL 168.642 and 168.642a.
(10) "Reorganized intermediate school district" means an
intermediate school district formed by consolidation or annexation
of 2 or more intermediate school districts under sections 701 and
702.
(11) "Rule" means a rule promulgated under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
PART 6D
CONVERSION SCHOOLS
Sec. 531. (1) A conversion school is a public school under
section 2 of article VIII of the state constitution of 1963, is a
school district for the purposes of section 11 of article IX of the
state constitution of 1963 and for the purposes of section 1225 and
section 1351a, and is subject to the leadership and general
supervision of the state board over all public education under
section 3 of article VIII of the state constitution of 1963. A
conversion school is a body corporate and is a governmental agency.
The powers granted to a conversion school under this part
constitute the performance of essential public purposes and
governmental functions of this state.
(2) As used in this part:
(a) "Authorizing body" means any of the following that issues
a contract as provided in this part:
(i) The board of a school district.
(ii) An intermediate school board.
(iii) The board of a community college.
(iv) The governing board of a state public university.
(b) "Community college" means a community college organized
under the community college act of 1966, 1966 PA 331, MCL 389.1 to
389.195, or a federal tribally controlled community college that is
recognized under the tribally controlled community college
assistance act of 1978, Public Law 95-471, 92 Stat. 1325, and is
determined by the department to meet the requirements for
accreditation by a recognized regional accrediting body.
(c) "Contract" means the executive act taken by an authorizing
body that evidences the authorization of a conversion school and
that establishes, subject to the constitutional powers of the state
board and applicable law, the written instrument executed by an
authorizing body conferring certain rights, franchises, privileges,
and obligations on a conversion school, as provided by this part,
and confirming the status of a conversion school as a public school
in this state.
(d) "Conversion school" means a public school previously
operated by a school district that is converted to a conversion
school established and operated under this part.
(e) "Educational management organization" means an entity that
enters into an agreement with the board of directors of a
conversion school to provide comprehensive educational,
administrative, management, or instructional services or staff to
the conversion school.
(f) "Entity" means a partnership, nonprofit or business
corporation, labor organization, or any other association,
corporation, trust, or other legal entity.
(g) "State public university" means a state university
described in section 4, 5, or 6 of article VIII of the state
constitution of 1963.
(h) "Tenured teacher" means a teacher on continuing tenure
under 1937 (Ex Sess) PA 4, MCL 38.71 to 38.191.
Sec. 533. (1) A conversion school shall be organized and
administered under the direction of a board of directors in
accordance with this part and with bylaws adopted by the board of
directors. A conversion school corporation shall be organized under
the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3192, except that a conversion school corporation is not
required to comply with sections 170 to 177 of 1931 PA 327, MCL
450.170 to 450.177. To the extent disqualified under the state or
federal constitution, a conversion school shall not be organized by
a church or other religious organization and shall not have any
organizational or contractual affiliation with or constitute a
church or other religious organization.
(2) Subject to subsection (3), any of the following may act as
an authorizing body to issue a contract to organize and operate a
conversion school under this part:
(a) The board of a school district.
(b) An intermediate school board.
(c) The board of a community college.
(d) The governing board of a state public university.
(3) To obtain a contract to convert a public school operated
by a school district to a conversion school that is organized and
operated under this part, 1 or more persons or an entity shall
apply to the school district of the school to be converted for a
contract to organize and operate the school as a conversion school.
The applicant shall submit all of the following to the board of the
school district of the school to be converted:
(a) A petition requesting that the school be converted to a
conversion school signed by either or both of the following:
(i) At least 51% of the tenured teachers employed by the school
district at the school to be converted.
(ii) At least 51% of the parents or legal guardians of the
pupils enrolled in the school to be converted.
(b) An application for a contract that meets the requirements
for an application under this section.
(4) If the board of a school district receives a petition
under subsection (3), the board shall consider the petition and act
to approve or deny the petition within 60 days after receiving the
petition. If the board acts to deny the petition, the board shall
issue a letter of denial to the applicant.
(5) If the board of the school district does not approve the
application for the contract submitted under subsection (3) within
60 days after the application and the supporting petition have been
submitted to the board, the applicant may submit an application to
another authorizing body. Another authorizing body may issue a
contract to organize and operate a conversion school if all of the
following are submitted to that authorizing body:
(a) An application for a contract that meets the requirements
for an application under this section.
(b) A copy of the petition submitted to the board of the
school district under subsection (3).
(c) A copy of the letter of denial under subsection (4) or
other information satisfactory to the authorizing body evidencing
that the applicant applied to the board of the school district for
a contract to organize and operate the school as a conversion
school as required under subdivision (b) and that the board of the
school district declined to grant the petition to issue the
contract within 60 days after the application and the supporting
petition have been submitted to the board.
(6) The application for a contract to organize and operate a
conversion school shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
under section 535(3), if any, a list of the proposed members of the
board of directors of the conversion school and a description of
the qualifications and method for appointment or election of
members of the board of directors.
(c) The proposed articles of incorporation, which shall
include at least all of the following:
(i) The name of the proposed conversion school.
(ii) The purposes for the conversion school corporation. This
language shall provide that the conversion school is incorporated
pursuant to this part and that the conversion school corporation is
a governmental entity.
(iii) The name of the authorizing body.
(iv) The proposed time when the articles of incorporation will
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the conversion school.
(e) Documentation meeting the application requirements of the
authorizing body, if any, including at least all of the following:
(i) The governance structure of the conversion school.
(ii) A copy of the educational goals of the conversion school
and the curricula to be offered and methods of pupil assessment to
be used by the conversion school. To the extent applicable, the
progress of the pupils in the conversion school shall be assessed
using at least a Michigan education assessment program (MEAP) test
or the Michigan merit examination developed under section 1279g.
(iii) The admission policy and criteria to be maintained by the
conversion school. The admission policy and criteria shall comply
with section 504. This part of the application also shall include a
description of how the applicant will provide to the general public
adequate notice that a conversion school is being created and
adequate information on the admission policy, criteria, and
process.
(iv) The school calendar and school day schedule.
(v) The age or grade range of pupils to be enrolled. A
conversion school shall include at least all of the grades that
were previously operated by the school that was converted.
(f) Descriptions of staff responsibilities and of the
conversion school's governance structure.
(g) The documentation required under subsection (3) or (5), as
applicable.
(h) An agreement that the conversion school will comply with
the provisions of this part and, subject to the provisions of this
part, with all other state law applicable to public bodies and with
federal law applicable to public bodies or school districts.
(i) For a conversion school authorized by a school district,
an assurance that employees of the conversion school will be
covered by the collective bargaining agreements that apply to
employees of the school district employed in similar
classifications in schools that are not a conversion school.
(7) An authorizing body shall oversee, or shall contract with
an intermediate school district, community college, or state public
university to oversee, each conversion school operating under a
contract issued by the authorizing body. The oversight shall be
sufficient to ensure that the authorizing body can certify that the
conversion school is in compliance with statute, rules, and the
terms of the contract.
(8) If the state board finds that an authorizing body other
than the school district that previously operated the conversion
school is not engaging in appropriate continuing oversight of 1 or
more conversion schools operating under a contract issued by the
authorizing body, the state board may suspend the power of the
authorizing body to issue new contracts to organize and operate
conversion schools. A contract issued by the authorizing body
during the suspension is void. A contract issued by the authorizing
body before the suspension is not affected by the suspension.
(9) An authorizing body shall not charge a fee, or require
reimbursement of expenses, for considering an application for a
contract, for issuing a contract, or for providing oversight of a
contract for a conversion school in an amount that exceeds a
combined total of 3% of the total state school aid received by the
conversion school in the school year in which the fees or expenses
are charged. An authorizing body may provide other services for a
conversion school and charge a fee for those services, but shall
not require such an arrangement as a condition to issuing the
contract authorizing the conversion school.
(10) A conversion school shall be presumed to be legally
organized if it has exercised the franchises and privileges of a
conversion school for at least 2 years.
Sec. 535. (1) An authorizing body is not required to issue a
contract to any person or entity. Conversion school contracts shall
be issued on a competitive basis taking into consideration the
resources available for the proposed conversion school, the
population to be served by the proposed conversion school, and the
educational goals to be achieved by the proposed conversion school.
(2) Within 10 days after issuing a contract for a conversion
school, the authorizing body shall submit to the superintendent of
public instruction a copy of the contract and of the application
under section 533.
(3) An authorizing body shall adopt a resolution establishing
the method of selection, length of term, and number of members of
the board of directors of each conversion school subject to its
jurisdiction.
(4) A contract issued to organize and administer a conversion
school shall contain at least all of the following:
(a) The educational goals the conversion school is to achieve
and the methods by which it will be held accountable. These goals
shall include specific goals for improvement in pupil performance
that must be met by the conversion school and a provision that, if
these performance improvement goals are not met, the contract will
be revoked and management of the school will be returned to the
school district. These goals shall include that, by the last year
of the contract, at least 80% of the conversion school's pupils
will graduate from high school or be determined by the department
to be on track to graduate from high school, the conversion school
will have at least 80% average attendance as determined by the
department, and at least 50% of all pupils enrolled in the
conversion school will score at least "proficient" on the Michigan
education assessment program assessments or Michigan merit
examination, as applicable, in both mathematics and English
language arts. To the extent applicable, the pupil performance of a
conversion school shall be assessed using at least a Michigan
education assessment program (MEAP) test or the Michigan merit
examination developed under section 1279g.
(b) A description of the method to be used to monitor the
conversion school's compliance with applicable law and its
performance in meeting its targeted educational objectives.
(c) A description of the process for amending the contract
during the term of the contract.
(d) All of the matters set forth in the application for the
contract.
(e) For a conversion school authorized by a school district,
an agreement that employees of the conversion school will be
covered by the collective bargaining agreements that apply to
employees of the school district employed in similar
classifications in schools that are not a conversion school.
(f) Procedures for revoking the contract and grounds for
revoking the contract, including at least the grounds listed in
section 543.
(g) The address for the school that will be converted to the
conversion school.
(h) Requirements and procedures for financial audits. The
financial audits shall be conducted at least annually by a
certified public accountant in accordance with generally accepted
governmental auditing principles.
(5) A conversion school shall comply with all applicable law,
including all of the following:
(a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(b) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(c) 1947 PA 336, MCL 423.201 to 423.217.
(d) 1965 PA 166, MCL 408.551 to 408.558.
(e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and 1274.
(6) A conversion school and its incorporators, board members,
officers, employees, and volunteers have governmental immunity as
provided in section 7 of 1964 PA 170, MCL 691.1407. An authorizing
body and its board members, officers, and employees are immune from
civil liability, both personally and professionally, for an act or
omission in authorizing a conversion school if the authorizing body
or the person acted or reasonably believed he or she acted within
the authorizing body's or the person's scope of authority.
(7) A conversion school is exempt from all taxation on its
earnings and property. Instruments of conveyance to or from a
conversion school are exempt from all taxation including taxes
imposed by 1966 PA 134, MCL 207.501 to 207.513. A conversion school
may not levy ad valorem property taxes or another tax for any
purpose. However, operation of 1 or more conversion schools by a
school district or intermediate school district does not affect the
ability of the school district or intermediate school district to
levy ad valorem property taxes or another tax.
(8) If a school district or intermediate school district
applies for and obtains a contract to operate 1 or more conversion
schools under this part, the power of the school district or
intermediate school district to levy taxes for any purpose under
this act is not affected by the operation of a conversion school by
the school district or intermediate school district. Revenue from
taxes levied by a school district or intermediate school district
under this act or bonds issued by a school district or intermediate
school district under this act may be used to support the operation
or facilities of a conversion school operated by the school
district or intermediate school district in the same manner as that
revenue may be used under this act by the school district or
intermediate school district to support school district or
intermediate school district operations and facilities. This
section does not authorize a school district or intermediate school
district to levy taxes or to issue bonds for any purpose that is
not otherwise authorized under this act.
(9) An agreement, mortgage, loan, or other instrument of
indebtedness entered into by a conversion school and a third party
does not constitute an obligation, either general, special, or
moral, of this state or an authorizing body. The full faith and
credit or the taxing power of this state or any agency of this
state, or the full faith and credit of an authorizing body, may not
be pledged for the payment of any conversion school bond, note,
agreement, mortgage, loan, or other instrument of indebtedness.
(10) This part does not impose any liability on this state or
on an authorizing body for any debt incurred by a conversion
school.
Sec. 537. (1) If the conversion school is authorized by the
board of the school district, the conversion school shall be
located at the school that was converted; the board of the school
district shall continue to own the school building but shall allow
the educational management organization that is operating the
school to control the school building. The school district shall
not charge the conversion school rent for the facilities. However,
a conversion school shall assume the financial liability for all
utilities, maintenance, security, improvements, and other costs
necessary to maintain the facilities in at least the same condition
in which the conversion school originally acquired the facilities.
If the conversion school is authorized by another authorizing body,
the conversion school shall be located within the school district
that operated the school that was converted, and may be located at
the school that was converted pursuant to an agreement with the
school district. A conversion school and a school district may
enter into a contract or cooperative arrangement concerning general
liability insurance for the conversion school.
(2) A conversion school shall not charge tuition and shall not
discriminate in its pupil admissions policies or practices on the
basis of intellectual or athletic ability, measures of achievement
or aptitude, status as a student with a disability, or any other
basis that would be illegal if used by a school district. However,
a conversion school may limit admission to pupils who are within a
particular range of age or grade level or on any other basis that
would be legal if used by a school district.
(3) Except for a foreign exchange student who is not a United
States citizen, a conversion school shall not enroll a pupil who is
not a resident of this state. Enrollment in the conversion school
may be open to all individuals who reside in this state who meet
the admission policy and shall be open to all pupils who reside
within the geographic boundaries, if any, of the authorizing body
as described in section 533(2)(a) to (c) who meet the admission
policy. For a conversion school authorized by a state public
university, enrollment shall be open to all pupils who reside in
this state who meet the admission policy. Subject to subsection
(4), if there are more applications to enroll in the conversion
school than there are spaces available, pupils shall be selected to
attend using a random selection process.
(4) A conversion school shall give enrollment priority to a
pupil who was previously enrolled in the school that was converted
or who resides in the attendance area for that school as
established by the school district. Also, a conversion school may
give enrollment priority to a sibling of a pupil enrolled in the
conversion school. A conversion school shall allow any pupil who
was enrolled in the conversion school in the immediately preceding
school year to enroll in the conversion school in the appropriate
grade unless the appropriate grade is not offered at that
conversion school.
(5) A conversion school may include any grade up to grade 12
or any configuration of those grades, including kindergarten and
early childhood education, as specified in its contract. A
conversion school shall include all of the grades that were
previously operated by the school that was converted. If specified
in its contract, a conversion school may also operate an adult
basic education program, adult high school completion program, or
general education development testing preparation program. The
authorizing body may approve amendment of a contract with respect
to ages of pupils or grades offered.
Sec. 539. In addition to other powers set forth in this part,
a conversion school may take action to carry out the purposes for
which it was incorporated under this part, including, but not
limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to section 535, to acquire, hold, and own in its
own name real and personal property, or interests in real or
personal property, for educational purposes by purchase, gift,
grant, devise, bequest, lease, sublease, installment purchase
agreement, land contract, option, or condemnation, and subject to
mortgages, security interests, or other liens; and to sell or
convey the property as the interests of the conversion school
require.
(c) To receive, disburse, and pledge funds for lawful
purposes.
(d) To enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the conversion school.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational
purposes and to establish or permit to be established on its behalf
1 or more nonprofit corporations the purpose of which is to assist
the conversion school in the furtherance of its public purposes.
(g) To borrow money and issue bonds in accordance with section
1351a and in accordance with part VI of the revised municipal
finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the
borrowing of money and issuance of bonds by a conversion school is
not subject to section 1351a(4) or section 1351(2) to (4). Bonds
issued under this section shall be full faith and credit
obligations of the conversion school, pledging the general funds or
any other money available for such a purpose. Bonds issued under
this section are subject to the revised municipal finance act, 2001
PA 34, MCL 141.2101 to 141.2821.
Sec. 541. (1) If a conversion school is authorized by the
board of the school district that operated the school that was
converted, the school district is the employer of the employees
regularly working at the conversion school and the conversion
school and employees of the conversion school are subject to
collective bargaining agreements that apply to employees of the
school district employed in similar classifications in schools that
are not a conversion school. If the conversion school is authorized
by an authorizing body other than the board of the school district
that operated the school that was converted, then the school
district is not the employer of employees regularly working at that
conversion school and the school and those employees are not
subject to a collective bargaining agreement with the school
district.
(2) The board of directors of the conversion school shall
contract with an educational management organization approved by
the superintendent of public instruction to manage or operate the
conversion school. For the purposes of this subdivision, the
superintendent of public instruction shall develop and maintain a
list of educational management organizations that are approved to
manage or operate a conversion school. The superintendent of public
instruction shall promulgate rules to develop standards and
criteria for approval of educational management organizations that
are designed to ensure that an approved educational management
organization is well qualified to manage or operate a conversion
school.
(3) Except as otherwise provided by law, a conversion school
shall use certificated teachers according to state board rule.
(4) A conversion school operated by a state public university
or community college may use noncertificated individuals to teach
as follows:
(a) If the conversion school is operated by a state public
university, the conversion school may use as a classroom teacher in
any grade a faculty member who is employed full-time by the state
public university and who has been granted institutional tenure, or
has been designated as being on tenure track, by the state public
university.
(b) For a conversion school operated by a community college,
the conversion school may use as a classroom teacher a full-time
member of the community college faculty who has at least 5 years'
experience at that community college in teaching the subject matter
that he or she is teaching at the conversion school.
(c) In any other situation in which a school district is
permitted under this act to use noncertificated teachers.
(5) A conversion school may develop and implement new teaching
techniques or methods or significant revisions to known teaching
techniques or methods, and shall report those to the authorizing
body and state board to be made available to the public. A
conversion school may use any instructional technique or delivery
method that may be used by a school district.
(6) A conversion school, with the approval of the authorizing
body, may employ or contract with personnel as necessary for the
operation of the conversion school, prescribe their duties, and fix
their compensation.
(7) If the board of directors of a conversion school provides
medical, optical, or dental benefits to employees and their
dependents, the board of directors shall provide those benefits in
accordance with the public employees health benefit act and shall
comply with that act.
Sec. 543. (1) The authorizing body for a conversion school is
the fiscal agent for the conversion school. A state school aid
payment for a conversion school shall be paid to the authorizing
body that is the fiscal agent for that conversion school, which
shall then forward the payment to the conversion school. An
authorizing body has the responsibility to oversee a conversion
school's compliance with the contract and all applicable law. A
contract issued under this part may be revoked by the authorizing
body that issued the contract if the authorizing body determines
that 1 or more of the following has occurred:
(a) Failure of the conversion school to abide by and meet the
educational goals set forth in the contract.
(b) Failure of the conversion school to comply with all
applicable law.
(c) Failure of the conversion school to meet generally
accepted public sector accounting principles.
(d) The existence of 1 or more other grounds for revocation as
specified in the contract.
(2) The decision of an authorizing body to revoke a contract
under this section is solely within the discretion of the
authorizing body, is final, and is not subject to review by a court
or any state agency. An authorizing body that revokes a contract
under this section is not liable for that action to the conversion
school, conversion school corporation, a pupil of the conversion
school, the parent or guardian of a pupil of the conversion school,
or any other person.
(3) If the contract for a conversion school is revoked, the
management of the school shall be returned to the school district.
Sec. 545. The conversion school monitoring board is created in
the department. The conversion school monitoring board shall
consist of 2 members appointed by the governor, 1 member appointed
by the senate majority leader, 1 member appointed by the speaker of
the house of representatives, and 1 member designated by the
superintendent of public instruction. Each member serves at the
pleasure of the officer that appointed or designated the member.
The conversion school monitoring board shall oversee relations and
mediate disputes among conversion schools, educational management
organizations that manage or operate a conversion school, and
school districts that authorize a conversion school. A conversion
school, an educational management organization that manages or
operates a conversion school, or a school district that authorizes
a conversion school may submit a dispute with another party to the
conversion school monitoring board for mediation.
Sec. 1701a. For the purposes of ensuring that a student with a
disability
enrolled in a public school academy created under part
6a
or 6b is provided with special
education programs and services,
the public school academy is considered to be a local school
district under this article.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5237(request no.
03257'09 a) of the 95th Legislature is enacted into law.