January 27, 2009, Introduced by Senator JACOBS and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 605, 622, 622a, 629, and 703 (MCL 380.605,
380.622, 380.622a, 380.629, and 380.703), section 605 as amended by
2008 PA 1, section 622 as amended by 2008 PA 307, section 622a as
added by 2004 PA 412, and sections 629 and 703 as amended by 2003
PA 299, and by adding sections 642, 643, 644, 645, 646, 648, and
649.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 605. (1) If constituent districts of more than 1
intermediate school district are reorganized into a single school
district, the reorganized school district shall be constituent to
the intermediate school district designated by the board of the
reorganized school district. If a decision is not reached within 30
days after the effective date of the reorganization of the
constituent districts, the determination shall be made by the
superintendent of public instruction.
(2) A constituent district, by resolution of its board, may
transfer and become constituent to another contiguous intermediate
school district if approval is given by each intermediate school
board affected. The intermediate school board shall take final
action within 60 days after receiving a resolution. If an
intermediate school district from which a constituent district
wishes to transfer has fewer than 4,000 constituent district pupils
and fails to take action or denies a transfer, the inaction or
decision may be appealed to the superintendent of public
instruction using the procedures described in section 971. If the
intermediate school district to which transfer is proposed has
adopted by referendum a program for financing special education
programs for students with a disability, or has bonded indebtedness
outstanding for special education building facilities, the school
electors of the constituent district to be transferred shall vote
on the acceptance of those sections and the assumption of the
district's pro rata share of bonded indebtedness outstanding for
special education facilities for students with a disability.
(3) If the intermediate school district to which transfer is
proposed has established an area vocational-technical education
program
by referendum or an area
early childhood education program,
or has bonded indebtedness outstanding for area vocational-
technical education facilities, the school electors of the district
to be transferred shall vote on the acceptance of those sections
and the assumption of the district's pro rata share of bonded
indebtedness outstanding for area vocational-technical education
facilities.
(4) The transfer is effective only if the applicable issues
relating to special education programs, area vocational-technical
education programs, or area early childhood education programs and
bonded indebtedness for special education and area vocational-
technical facilities are approved at an election in the constituent
district proposing transfer at which all applicable issues are
submitted and receive favorable majorities.
(5) The territory of a constituent district of an intermediate
school district having bonded indebtedness for special education
facilities or area vocational-technical education facilities that
is transferred to another intermediate school district shall remain
as a part of the intermediate school district from which
transferred for the purpose of levying debt retirement taxes for
the bonded indebtedness until the bonds are redeemed or sufficient
funds are available in the debt retirement funds for that purpose.
The transferred constituent district shall be a constituent
district of the intermediate school district to which transferred
for all other purposes.
Sec. 622. (1) The intermediate school board shall select
financial institutions for the deposit of school funds. The
intermediate school board shall keep a set of coded accounts to be
approved by the superintendent of public instruction and shall have
its books audited at least annually by a certified public
accountant. General operating funds, building and site funds,
cooperative education funds, special education funds, vocational-
technical education funds, area early childhood education program
funds, and debt retirement funds shall be maintained separately and
shall not be commingled, except that the intermediate school board,
by resolution, may authorize the treasurer to combine money from
more than 1 fund for the purpose of making an investment authorized
by subsection (2)(g).
(2) The treasurer of an intermediate school district, if
authorized by resolution of the intermediate school board, may
invest general operating funds, special education funds, area
vocational-technical education funds, area early childhood
education program funds, building and site funds, cooperative
education funds, and debt retirement funds of the district.
Investments shall be made subject to subsection (4) and shall be
restricted to any of the following:
(a) Bonds, bills, or notes of the United States or obligations
of this state.
(b) Certificates of deposit issued by a financial institution.
(c) Commercial paper rated prime at the time of purchase and
maturing not more than 270 days after the date of purchase.
(d) Securities issued or guaranteed by agencies or
instrumentalities of the United States government.
(e) United States government or federal agency obligation
repurchase agreements.
(f) Bankers' acceptances issued by a bank that is a member of
the federal deposit insurance corporation.
(g) Investment pools, as authorized by the surplus funds
investment pool act, 1982 PA 367, MCL 129.111 to 129.118, composed
entirely of instruments that are legal for direct investment by an
intermediate school district.
(h) Mutual funds composed entirely of investment vehicles that
are legal for direct investment by an intermediate school district.
(i) Certificates of deposit issued in accordance with the
following conditions:
(i) The funds are initially invested through a financial
institution that is not ineligible to be a depository of surplus
funds belonging to this state under section 6 of 1855 PA 105, MCL
21.146.
(ii) The financial institution arranges for the investment of
the funds in certificates of deposit in 1 or more insured
depository institutions, as defined in 12 USC 1813, for the account
of the intermediate school district.
(iii) The full amount of the principal and any accrued interest
of each certificate of deposit is insured by an agency of the
United States.
(iv) The financial institution acts as custodian for the
intermediate school district with respect to each certificate of
deposit.
(v) At the same time that the funds of the intermediate school
district are deposited and the certificate or certificates of
deposit are issued, the financial institution receives an amount of
deposits from customers of other insured depository institutions
equal to or greater than the amount of the funds initially invested
by the intermediate school district through the financial
institution.
(3) The earnings of an investment shall become a part of the
fund from which the investment was made. When money of more than 1
fund of a single intermediate school district or money of more than
1 intermediate school district are combined for an investment pool
authorized by subsection (2)(g), the money shall be accounted for
separately, and the earnings from the investment shall be
separately and individually computed, recorded, and credited to the
fund or intermediate school district, as the case may be, for which
the investment was acquired.
(4) Notwithstanding subsection (2), additional funds of an
intermediate school district shall not be deposited or invested in
a financial institution that is not eligible to be a depository of
surplus funds belonging to this state under section 6 of 1855 PA
105, MCL 21.146.
(5) Assets acceptable for pledging to secure deposits of funds
under this act are limited to any of the following:
(a) Assets considered acceptable to the state treasurer under
section 3 of 1855 PA 105, MCL 21.143, to secure deposits of state
surplus funds.
(b) Any of the following:
(i) Securities issued by the federal home loan mortgage
corporation.
(ii) Securities issued by the federal national mortgage
association.
(iii) Securities issued by the government national mortgage
association.
(c) Securities considered acceptable to the intermediate
school board and the financial institution.
(6) As used in this section, "deposit" includes purchases of
or investment in shares of a credit union.
(7) As used in this section, "financial institution" means a
state or nationally chartered bank or a state or federally
chartered savings and loan association, savings bank, or credit
union whose deposits are insured by an agency of the United States
government and that maintains a principal office or branch office
located in this state under the laws of this state or the United
States.
Sec. 622a. (1) In addition to the annual financial audit
required under section 622, an intermediate school district is
subject to an audit of the matters described in this section
conducted by an independent auditor under the direction of the
department of treasury under this section. An audit conducted under
this section shall be based in part on an examination of an
intermediate school district's accounts, financial records, and
accounting procedures and shall address at least 3 of the following
aspects of the intermediate school district's operations, as
directed by the department of treasury:
(a) Whether intermediate school board members, intermediate
school district administrators, and intermediate school district
employees are adhering to ethics policies adopted by the
intermediate school board or required by state law.
(b) Whether intermediate school board members, intermediate
school district administrators, and intermediate school district
employees are adhering to conflict of interest policies adopted by
the intermediate school board or required by state law. This
includes, but is not limited to, policies and practices with regard
to contracts in which an intermediate school board member, an
intermediate school district administrator, or an intermediate
school district employee who is involved in the contracting
process, or a family member of an intermediate school board member,
an intermediate school district administrator, or an intermediate
school district employee who is involved in the contracting
process, has a substantial conflict of interest; and policies and
practices with regard to an intermediate school district
administrator negotiating, handling, presenting, or recommending a
contract in which the administrator or a family member of the
administrator has a substantial conflict of interest. As used in
this subdivision, "substantial conflict of interest" means that
term as defined in section 634(5).
(c) Whether a modification to an existing contract was made
during the audit period that resulted in an additional financial
obligation to the intermediate school district and the modification
was not competitively bid. As used in this subdivision,
"competitively bid" means that a contract was entered into through
a request for information, a request for proposal, or a formal
competitive bid process that was advertised and open to the public,
and includes a contract entered into on behalf of the intermediate
school district by a federal, state, or local governmental entity
that performed a request for information, request for proposal, or
formal competitive bid process or by a nonprofit corporation or
nonprofit association that performed a request for information,
request for proposal, or formal competitive bid process.
(d) Whether the intermediate school district's policies and
practices for responding to requests received under the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246, and the
intermediate school district's actual responses to requests made
during the audit period under that act, were in compliance with
that act. This part of the audit shall include, but is not limited
to, an examination of whether the costs charged for responding to
requests exceeded the costs permitted under that act.
(e) Whether intermediate school board members, intermediate
school district administrators, and intermediate school district
employees are adhering to travel guidelines and practices adopted
by the intermediate school board or required by state law.
(f) Whether the intermediate school district has accurately
accounted for and reported all information relating to stipends,
salaries, benefits, or other compensation paid to intermediate
school district administrators.
(g) Whether the intermediate school district has used public
funds in violation of law to pay for food, gifts, or other items
that are not used for instructional purposes, as defined by the
intermediate school board.
(h) Whether proceeds from a tax levied under section 642 for
area early childhood education program operating purposes, from a
tax levied under section 681 for area vocational-technical
education operating purposes, or from a tax levied under section
1724a for special education operating purposes have been expended
for a purpose other than the purpose for which the tax was levied.
(2) The department of treasury shall direct the random audits
of intermediate school districts under this section as follows:
(a) The department of treasury shall select the intermediate
school districts to be audited under this section on a random
basis.
(b) The department of treasury shall announce between July 1
and July 15 of each calendar year the intermediate school districts
that will be subject that year to an audit under this section for
the immediately preceding school fiscal year.
(c) The department of treasury shall select 5 intermediate
school districts for audit under this section every 2 years.
(d) Upon request by the department of treasury, the
intermediate school district shall notify the department of
treasury of the name, address, and contact person of the
independent auditor selected by the intermediate school board to
perform the annual financial audit for the intermediate school
district. The department of treasury shall enter into an agreed-
upon procedures agreement with the selected independent auditor,
identifying the matters to be audited and establishing the rate of
payment, which shall be no more than the rate the department would
charge for the same type of audit. The department of treasury shall
oversee the conduct of the audit by the independent auditor to the
extent the department of treasury considers necessary to meet the
purposes of this section.
(e) An intermediate school board and intermediate school
district officials shall provide all information requested by the
independent auditors or the department of treasury and shall
cooperate with them to the fullest extent possible.
(f) The independent auditor shall submit an audit report of
the audit to the center for educational performance and information
in the form and manner prescribed by the center for educational
performance and information. The center for educational performance
and information shall submit a copy of the audit report of each
audit conducted under this section to the department of treasury,
to the applicable intermediate school board, to the senate and
house standing committees having jurisdiction over education
legislation, to the department, and, subject to subdivision (g), to
the attorney general if the department of treasury considers it
appropriate.
(g) If the department of treasury determines that an audit
conducted under this section has disclosed that the intermediate
school board or any intermediate school district official or
employee has violated any state law governing the financial
operations of an intermediate school district, the department of
treasury shall notify the intermediate school district of that
determination. If the intermediate school district disputes the
determination or claims that the situation has been corrected,
within 15 days after receipt of the determination the intermediate
school district may submit an appeal of the determination to the
department of treasury. Within 90 days after receipt of the appeal,
the department of treasury shall consider the appeal and make a
determination of whether the initial determination was correct or
incorrect and of whether the situation has been corrected. If the
department of treasury finds that the initial determination was
correct and that the situation has not been corrected, then the
department of treasury shall file a copy of the report with the
attorney general. The attorney general shall review the report and,
if the attorney general considers it appropriate, shall commence or
direct the prosecuting attorney for the county in which the
violations occurred to commence appropriate proceedings against the
intermediate school board or the official or employee. These
proceedings shall include at least a civil action in a court of
competent jurisdiction for the recovery of any public money
determined by the audit to have been illegally expended and for the
recovery of any public property determined by the audit to have
been converted or misappropriated.
(3) In addition to the intermediate school districts selected
for a random audit under subsection (2), the department of treasury
may also direct an audit under this section of 1 or more additional
intermediate school districts selected by the department of
treasury if the department of treasury considers that additional
audit or audits to be appropriate. Subsection (2)(d), (e), (f), and
(g) applies to an audit under this subsection.
(4) The department and the department of treasury, in
consultation with intermediate school districts, shall develop and
make available to intermediate school districts the auditing
criteria to be used for the purposes of this section.
(5) An audit under this section shall be performed in
accordance with standards issued by the American institute of
certified public accountants and with government audit standards
issued by the United States general accounting office.
(6) The department of treasury shall pay the costs of the
audit conducted under this section. The department of treasury's
obligation under this section is limited to the amount of a
separate line item appropriation identified for the purpose of
funding the department of treasury's duties under this section and
included in the annual appropriations act making appropriations for
the department of treasury.
(7) The department shall post on its website the audit reports
it receives under subsection (2)(f).
Sec. 629. (1) An intermediate school board may borrow, subject
to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821, sums of money on terms the intermediate school board
considers necessary for 1 or more of the following purposes:
(a) For temporary purposes for which the intermediate school
board may give notes of the intermediate school district. The
intermediate school board shall not borrow a sum that exceeds the
amount that has been voted by the intermediate school board or the
school electors of the intermediate school district.
(b) To purchase sites for buildings; to purchase, erect,
complete, remodel, improve, furnish, refurnish, equip, or reequip
buildings and facilities the board is authorized to acquire,
including, but not limited to, general administrative, vocational,
or special education buildings or facilities, or parts of those
buildings or facilities, or additions to those buildings or
facilities, and prepare, develop, or improve sites for those
buildings or facilities; to purchase and install information
technology systems, together with the equipment and software, as
are necessary for programs conducted by the intermediate school
district under section 627(2); and to issue and sell bonds of the
intermediate school district in the form and on the terms the board
considers advisable.
(2) An intermediate school board shall not borrow money or
issue bonds for a sum that, together with the total outstanding
bonded indebtedness of the intermediate school district, exceeds
1/9 of 1% of the state equalized valuation of the taxable property
within the district, unless the question of borrowing the money or
issuing bonds is submitted first to a vote of the school electors
of the intermediate school district held under section 661 and
approved by the majority of the registered school electors voting
on the question. Regardless of the amount of outstanding bonded
indebtedness of the intermediate school district, a vote of the
school electors is not necessary in order to issue bonds for a
purpose described in section 1274a or to issue bonds under section
11i of the state school aid act of 1979, 1979 PA 94, MCL 388.1611i.
Money may be borrowed and bonds may be issued for the purposes
stated in this section in an amount equal to that provided by part
17. For the purposes of this subsection, bonds authorized by vote
of the school electors for special education facilities under part
30 and for area vocational-technical education facilities under
sections 681 to 690, and bonds issued under section 11i of the
state school aid act of 1979, MCL 388.1611i, shall not be included
in computing the total outstanding bonded indebtedness of an
intermediate school district.
(3) Not later than 30 days after receipt of notice that the
question of issuing bonds under this section to purchase and
install information technology systems as are necessary for a
cooperative program under section 627(2) will be submitted to the
school electors of the intermediate school district, the board of a
constituent school district by resolution may elect not to
participate in the cooperative program and not to conduct an
election on the question within the constituent school district.
Sec. 642. (1) An intermediate school district may establish an
area early childhood education program and operate the program
under sections 642 to 649 if approved by a majority of the
intermediate school electors of the intermediate school district
voting on the question. The election shall be called and conducted
in accordance with this act and the Michigan election law. The
establishment of the area early childhood education program may be
rescinded by the same process.
(2) The question of establishing an area early childhood
education program may be submitted to the intermediate school
electors of an intermediate school district at a regular school
election or at a special election held in each of the constituent
districts. Subject to section 641 of the Michigan election law, MCL
168.641, the intermediate school board shall determine the date of
the election and shall give notice to the school district filing
official at least 60 days in advance of the date the ballot
question is to be submitted to the intermediate school electors.
(3) The ballot for submitting the question of adopting
sections 642 to 649 and establishing an area early childhood
education program to the intermediate school electors of an
intermediate school district shall be substantially in the
following form:
"Shall ____________ (legal name of intermediate school
district), state of Michigan, come under sections 642 to 649 of the
revised school code and establish an area early childhood education
program that is designed to encourage the operation of area early
childhood education programs if the annual property tax levied for
this purpose is limited to ______ mills?
( )
( )".
(4) Subject to section 625b, the intermediate school board,
with the approval of the intermediate school electors, may levy not
more than 1 mill of ad valorem property taxes for area early
childhood education program operating purposes under sections 642
to 649.
(5) An intermediate school district that levies a tax for area
early childhood education program operating purposes shall not use
proceeds from the tax for any purpose other than area early
childhood education program operating purposes and shall submit to
the department of treasury a copy of the audit report from the
audit of the intermediate school district conducted under section
622a. If the department of treasury determines from the audit
report that the proceeds from the tax have been used for a purpose
other than area early childhood education program operating
purposes, as defined under subsection (7), the department of
treasury shall notify the intermediate school district of that
determination. If the intermediate school district disputes the
determination or claims that the situation has been corrected,
within 15 days after receipt of the determination the intermediate
school district may submit an appeal of the determination to the
department of treasury. Within 90 days after receipt of the appeal,
the department of treasury shall consider the appeal and make a
determination of whether the initial determination was correct or
incorrect and of whether the situation has been corrected. If the
department of treasury finds that the initial determination was
correct and that the situation has not been corrected, then the
department of treasury shall file a copy of the report with the
attorney general. The attorney general shall review the report and,
if the attorney general considers it appropriate, shall commence or
direct the prosecuting attorney for the county in which the
violations occurred to commence appropriate proceedings against the
intermediate school board or the official or employee. These
proceedings shall include at least a civil action in a court of
competent jurisdiction for the recovery of any public money
determined by the audit to have been illegally expended and for the
recovery of any public property determined by the audit to have
been converted or misappropriated.
(6) If the attorney general determines from a report filed
under subsection (5) that an intermediate school district has
misspent tax proceeds as described in subsection (5) and notifies
the intermediate school district of this determination, the
intermediate school district shall repay to its area early
childhood education program operating fund an amount equal to the
amount the department of treasury determined under subsection (5)
has been used for a purpose other than area early childhood
education program operating purposes. The intermediate school
district shall make this repayment from funds of the intermediate
school district that lawfully may be used for making such a
repayment.
(7) For the purposes of subsections (5) and (6), the
department and the department of treasury, in consultation with
intermediate school districts, shall develop and make available to
intermediate school districts a definition of area early childhood
education program operating purposes.
(8) An intermediate school district shall not hold more than 2
elections in a calendar year concerning the authorization of a
millage rate for area early childhood education program operating
purposes under sections 642 to 649.
Sec. 643. Subject to section 642(4), an intermediate school
board operating under sections 642 to 649 may direct that the
question of increasing the millage limit on the annual property tax
levied for area early childhood education be submitted to the
intermediate school electors of the intermediate school district.
The election shall be called and conducted in accordance with
section 661. The ballot shall be substantially in the following
form:
"Shall the _____-mill limitation on the annual property tax
previously approved by the electors of ___________________________
(legal name of intermediate school district), state of Michigan,
for the establishment and operation of area early childhood
education programs, be increased by _____ mills?
Yes ( )
No ( )".
Sec. 644. (1) An intermediate school board operating under
sections 642 to 649 shall prepare annually an area early childhood
education budget which shall be in the same form as that required
in local school districts, and shall be delivered to the county
clerks of the counties in which the intermediate school district is
located, except in counties which have established separate tax
limitation millage rates pursuant to the property tax limitation
act, 1933 PA 62, MCL 211.201 to 211.217a. The county clerk shall
deliver the budget to the tax allocation board in the same manner
as local school district budgets are handled.
(2) County tax allocation boards shall receive area early
childhood education budgets from their respective county clerks;
shall treat them as local school district budgets are treated; and
shall allocate tax rates to intermediate school districts for the
purposes of sections 642 to 649. The allocations shall be handled
in the same manner as other allocations for local school districts.
The allocations shall not be made within the 15-mill limitation and
shall not exceed the limit authorized under these sections.
(3) When the intermediate school board receives an allocation
on the basis of its area early childhood education budget, the
intermediate school board shall certify for collection to the
officials of the local property tax collecting unit a statement of
the amount of taxes to be levied. The certification shall be made
in the same manner as local school districts, but the rate
certified for levy shall not exceed the amount allocated.
(4) On receipt of the statement from the intermediate school
board, the officials responsible for the levying and collection of
these taxes shall spread on the tax roll an area early childhood
education tax equal to the amount ordered spread, and shall collect
the taxes in the same manner as other taxes are collected.
(5) Taxes collected by a city or township treasurer under
subsection (4) shall be paid to the treasurer of the intermediate
school board pursuant to section 43 of the general property tax
act, 1893 PA 206, MCL 211.43, or to the county treasurers in the
same manner as other county taxes are paid and similar accounts and
records shall be kept. The county treasurers shall pay all funds
received under subsection (4) to the treasurer of the intermediate
school board.
Sec. 645. (1) An intermediate school board in which an area
early childhood education program has been established may operate
area early childhood education programs or may contract with local
school districts or with community colleges for the operation of
the programs. Area early childhood education programs operated
under sections 642 to 649 shall be submitted for review of the
representatives of the constituent districts of the intermediate
school district at an annual budget review meeting held on or
before June 1 under section 624.
(2) An intermediate school board may expend area early
childhood education funds for the operation of area early childhood
education programs approved by the superintendent of public
instruction and purchasing area early childhood education
equipment. An intermediate school board shall not expend area early
childhood education funds for purposes other than those set forth
in sections 642 to 649.
(3) An intermediate school board operating under sections 642
to 649 may expend funds received under section 644 for the costs of
a special election held to renew or increase the millage limit on
the annual property tax levied for area early childhood education
purposes.
(4) The treasurer of an intermediate school board shall pay
out area early childhood education funds on order of the
intermediate school board.
Sec. 646. An intermediate school board in which an area early
childhood education program is established shall make payments from
area early childhood education funds to those constituent districts
and community colleges under contract serving the intermediate
school district that operate area early childhood education
centers. Payments shall be computed as follows:
(a) The total cost of an area early childhood education center
shall be computed, and from this amount, there shall be deducted
the current state and federal early childhood education
reimbursement for the area early childhood education center.
(b) The intermediate school board shall reimburse all or part
of the difference resulting under subdivision (a). If the funds are
not sufficient to make up this difference, a like percent of the
difference shall be paid to all area early childhood education
centers in the intermediate school district.
Sec. 648. A constituent district or community college
maintaining an area early childhood education facility designated
by the superintendent of public instruction may enter into a
contract with the intermediate school board and shall become an
area early childhood education center by contracting with the
intermediate school board to accept nonresident children assigned
into its facility by the intermediate school board.
Sec. 649. (1) A school district of not less than 18,000 pupils,
a first class school district, or a school district offering or
making available to its residents a comprehensive early childhood
education program approved by the superintendent of public
instruction may elect not to come under an area early childhood
education program by resolution adopted by its board not later than
30 days after receipt of notice that the question of establishing
the area early childhood education program will be submitted to the
school electors of the school district.
(2) A school district electing not to come under the area
early childhood education program may thereafter elect to come
under the program if at a special or regular school election a
majority of the school electors voting approve the operation of the
area early childhood education program and the annual tax rate for
that purpose in effect in the other constituent districts of the
intermediate school district.
(3) Except as provided in this subsection, in an intermediate
school district where the school electors have voted upon and
failed to approve the ballot question set forth in section 642, a
combination of 2 or more contiguous constituent districts, by
resolution of their boards, may elect to establish an area early
childhood education program, if approved by resolution of the
intermediate district board and designated by the state board. The
requirement of contiguity of constituent districts does not apply
if 1 or more of the districts that constitute the basis of
contiguity declare their intent, by board resolution, not to be
part of the proposed area early childhood education program. At any
time within 6 months after the enactment of the resolution
establishing the program in a local school district, school
electors equal in number to not less than 5% of the votes cast in
the most recent school election may petition their local school
district board to submit the resolution to the school district
filing official for submission to the electorate, in a form and
manner to be prescribed by the secretary of state, and the
district's participation in the program shall be terminated if not
approved by a majority of the school electors voting on the
question.
(4) Area early childhood education programs established under
this section shall receive appropriate state funding or federal
funding allocated by the superintendent of public instruction on
exactly the same basis as area early childhood education programs
and centers established by intermediate school districts.
Constituent districts establishing an approved area early childhood
education program under this section may designate, by board
resolution, specific amounts of either authorized operating millage
or operating millage being requested from the school electors to be
utilized solely for the area early childhood education program, in
a manner to be prescribed by the superintendent of public
instruction, and the specified amount of millage shall be regarded
as area early childhood education millage rather than local school
district operating millage in all computations made by the
department to determine state aid. The revenue obtained from the
millage designated, together with appropriate state and federal
funds, may be expended for the same purposes specified for
intermediate district programs in sections 645 and 646, including
contracts with the intermediate school district, another local
school district, or a community college for area early childhood
education programs and services.
(5) A contiguous district desiring to become part of an area
early childhood education program established under this section
may do so with the approval of each participating school district,
the intermediate school district, and the state board. Constituent
districts operating an approved area early childhood education
program under this section may subsequently elect not to
participate, or may thereafter elect to participate, in an
intermediate school district early childhood education program in
exactly the same manner prescribed in this section for school
districts of not less than 18,000 pupils, a first class school
district, or a school district offering or making available to its
residents a comprehensive early childhood education program
approved by the superintendent of public instruction.
Sec. 703. (1) An intermediate school district comprised of
less than 5 constituent districts and having no bonded indebtedness
may be disorganized and its constituent districts attached to
contiguous intermediate school districts under this section.
(2) The board of each constituent district may request the
intermediate school board to prescribe a plan for disorganization
of the intermediate school district. Each request shall designate
another intermediate school district to which the constituent
district desires to be attached. The intermediate school board
shall prescribe, by resolution, a plan under which each of the
constituent districts will be attached in whole to contiguous
intermediate school districts designated in the requests. If the
designated intermediate school district is not contiguous, the
intermediate school board's plan may prescribe attachment to a
contiguous intermediate school district.
(3) The intermediate superintendent of the intermediate school
district that is to be disorganized shall give 30 days' notice of
the time and place of the meeting of the intermediate school board
and of the proposed plan for disorganization by publication of the
notice in a newspaper of general circulation in the intermediate
school district. The intermediate school board shall present the
adopted plan for dissolution to the board of each of its
constituent districts and to the intermediate school board of each
intermediate school district whose boundaries would be enlarged by
the proposal.
(4) The intermediate superintendent of each intermediate
school district whose boundaries would be enlarged by the
dissolution shall give 30 days' notice of the time and place of the
meeting of the intermediate school board and of the recommended
plan for enlargement of the intermediate school district by
publication of the notice in a newspaper of general circulation in
the intermediate school district.
(5) If the intermediate school board of each affected
intermediate school district approves the plan for disorganization,
the intermediate school board of the intermediate school district
to be dissolved shall refer the matter to the superintendent of
public instruction for approval. The action of the superintendent
of public instruction declaring the intermediate school district
dissolved is final. Disorganization of the intermediate school
district and attachment of its constituent districts to contiguous
intermediate school districts takes effect on July 1 after the date
of the approval of the superintendent of public instruction.
(6) The intermediate school boards of the intermediate school
districts to which territory is attached by dissolution shall meet
jointly, sitting as a single board, and make an equitable
distribution of the money, property, and other assets belonging to
the disorganized intermediate school district among the
intermediate school districts affected. The territory of
constituent districts transferred to other intermediate school
districts by dissolution shall be subject to all taxes levied for
purposes of the intermediate school district to which transferred,
including taxes for the retirement of bonded indebtedness, special
education
programs, and area vocational-technical education
programs, and area early childhood education programs.
(7) Within 30 days after a district attaches to a contiguous
intermediate school district under this section, the board of the
intermediate school district whose boundaries have been enlarged by
the dissolution may appoint 2 school electors of constituent
districts, 1 of whom shall be an elector of the attached district,
to membership on the intermediate school board. Intermediate school
board members appointed under this subsection serve until January 1
or, if the intermediate school district's regular school election
is held in May, until July 1 after the next intermediate school
district election. The intermediate school board may determine 1
initial term of less than 6 years for 1 of the additional members
to be elected at the intermediate school district election.
Notification of an appointment shall be filed with the
superintendent of public instruction.