HB-5267, As Passed House, December 13, 2012HB-5267, As Passed Senate, December 12, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5267

(As amended December 12, 2012)

<<A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 11, 25, 26b, and 201 (MCL 388.1606, 388.1611,

388.1625, 388.1626b, and 388.1801), as amended by 2012 PA 201, and by

adding sections 23a and 25d.>>

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 6. (1) "Center program" means a program operated by a

district or by an intermediate district for special education

pupils from several districts in programs for pupils with autism

spectrum disorder, pupils with severe cognitive impairment, pupils

with moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

district or shall serve several districts with less than 50% of the

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

disabilities education act, 20 USC 1412, may be considered center

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult participants, in

the district for the immediately preceding school year, adjusted

for those pupils who have transferred into or out of the district

or high school, who leave high school with a diploma or other

credential of equal status.

(4) "Membership", except as otherwise provided in this

article, means for a district, a public school academy, the

education achievement system, or an intermediate district the sum

of the product of .90 times the number of full-time equated pupils

in grades K to 12 actually enrolled and in regular daily attendance

on the pupil membership count day for the current school year, plus

the product of .10 times the final audited count from the

supplemental count day for the immediately preceding school year. A

district's, public school academy's, or intermediate district's

membership shall be adjusted as provided under section 25 for

pupils who enroll in the district, public school academy, or

intermediate district after the pupil membership count day. All

pupil counts used in this subsection are as determined by the

department and calculated by adding the number of pupils registered

for attendance plus pupils received by transfer and minus pupils

lost as defined by rules promulgated by the superintendent, and as

corrected by a subsequent department audit. For the purposes of

this section and section 6a, for a school of excellence that is a

cyber school, as defined in section 551 of the revised school code,

MCL 380.551, and is in compliance with section 553a of the revised

school code, MCL 380.553a, or for the education achievement system,

a pupil's participation in the cyber school's educational program

or in an online educational program of the education achievement

system or of an achievement school is considered regular daily

attendance. The amount of the foundation allowance for a pupil in

membership is determined under section 20. In making the

calculation of membership, all of the following, as applicable,

apply to determining the membership of a district, a public school

academy, the education achievement system, or an intermediate

district:

(a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan schools for the deaf and

blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a career and technical education

program supported by a millage levied over an area larger than a

single district or in an area vocational-technical education

program established pursuant to section 690 of the revised school

code, MCL 380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

(h) A pupil enrolled in an achievement school shall be counted

in membership in the education achievement system.

(i) For a new district or public school academy beginning its

operation after December 31, 1994, or for the education achievement

system or an achievement school, membership for the first 2 full or

partial fiscal years of operation shall be determined as follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) In a district, a public school academy, the education

achievement system, or an intermediate district operating an

extended school year program approved by the superintendent, a

pupil enrolled, but not scheduled to be in regular daily attendance

on a pupil membership count day, shall be counted.

(l) ~~Pupils to~~ To be counted in membership, ~~shall be not less~~

~~than 5 years of age on December 1 and~~ a pupil shall meet the

minimum age requirement to be eligible to attend school under

section 1147 of the revised school code, MCL 380.1147, or shall be

enrolled under subsection (3) of that section, and shall be less

than 20 years of age on September 1 of the school year except as

follows:

(i) A special education pupil who is enrolled and receiving

instruction in a special education program or service approved by

the department, who does not have a high school diploma, and who is

less than 26 years of age as of September 1 of the current school

year shall be counted in membership.

(ii) A pupil who is determined by the department to meet all of

the following may be counted in membership:

(A) Is enrolled in a public school academy or an alternative

education high school diploma program, that is primarily focused on

educating homeless pupils and that is located in a city with a

population of more than 500,000.

(B) Had dropped out of school for more than 1 year and has re-

entered school.

current school year.

(m) An individual who has obtained a high school diploma shall

not be counted in membership. An individual who has obtained a

general educational development (G.E.D.) certificate shall not be

counted in membership unless the individual is a pupil with a

disability as defined in R 340.1702 of the Michigan administrative

code. An individual participating in a job training program funded

under former section 107a or a jobs program funded under former

section 107b, administered by the Michigan strategic fund, or

participating in any successor of either of those 2 programs, shall

not be counted in membership.

(n) If a pupil counted in membership in a public school

academy or the education achievement system is also educated by a

district or intermediate district as part of a cooperative

education program, the pupil shall be counted in membership only in

the public school academy or the education achievement system

unless a written agreement signed by all parties designates the

party or parties in which the pupil shall be counted in membership,

and the instructional time scheduled for the pupil in the district

or intermediate district shall be included in the full-time equated

membership determination under subdivision (q). However, for pupils

receiving instruction in both a public school academy or the

education achievement system and in a district or intermediate

district but not as a part of a cooperative education program, the

following apply:

(i) If the public school academy or the education achievement

system provides instruction for at least 1/2 of the class hours

specified in subdivision (q), the public school academy or the

education achievement system shall receive as its prorated share of

the full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the public

school academy or the education achievement system provides divided

by the number of hours specified in subdivision (q) for full-time

equivalency, and the remainder of the full-time membership for each

of those pupils shall be allocated to the district or intermediate

district providing the remainder of the hours of instruction.

(ii) If the public school academy or the education achievement

system provides instruction for less than 1/2 of the class hours

specified in subdivision (q), the district or intermediate district

providing the remainder of the hours of instruction shall receive

as its prorated share of the full-time equated membership for each

of those pupils an amount equal to 1 times the product of the hours

of instruction the district or intermediate district provides

divided by the number of hours specified in subdivision (q) for

full-time equivalency, and the remainder of the full-time

membership for each of those pupils shall be allocated to the

public school academy or the education achievement system.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section 101(3). In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

considered to be less than a full-time equated pupil solely because

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

(r) Beginning in 2012-2013, full-time equated memberships for

pupils in kindergarten shall be determined by dividing the number

of instructional hours scheduled and provided per year per

kindergarten pupil by the same number used for determining full-

time equated memberships for pupils in grades 1 to 12. However, to

the extent allowable under federal law, for a district or public

school academy that provides evidence satisfactory to the

department that it used federal title I money in the 2 immediately

preceding school fiscal years to fund full-time kindergarten, full-

time equated memberships for pupils in kindergarten shall be

determined by dividing the number of class hours scheduled and

provided per year per kindergarten pupil by a number equal to 1/2

the number used for determining full-time equated memberships for

pupils in grades 1 to 12. Not later than December 1, 2012, the

department shall seek a clarification from the federal department

of education as to whether this is an allowable use of federal

title I money. The change in the counting of full-time equated

memberships for pupils in kindergarten that takes effect in 2012-

2013 is not a mandate. Not later than the fifth Wednesday after the

pupil membership count day, each district or public school academy

and the education achievement system shall report to the department

and the center the number of instructional hours scheduled per

kindergarten pupil for 2012-2013. If the number of instructional

hours scheduled per kindergarten pupil is not equal for all

kindergarten pupils in the district, the district or public school

academy and the education achievement system shall report the

number of kindergarten pupils who were scheduled to receive each of

the different numbers of instructional hours scheduled.

(s) For a district, a public school academy, or the education

achievement system that has pupils enrolled in a grade level that

was not offered by the district, the public school academy, or the

education achievement system in the immediately preceding school

year, the number of pupils enrolled in that grade level to be

counted in membership is the average of the number of those pupils

enrolled and in regular daily attendance on the pupil membership

count day and the supplemental count day of the current school

year, as determined by the department. Membership shall be

calculated by adding the number of pupils registered for attendance

in that grade level on the pupil membership count day plus pupils

received by transfer and minus pupils lost as defined by rules

promulgated by the superintendent, and as corrected by subsequent

department audit, plus the final audited count from the

supplemental count day for the current school year, and dividing

that sum by 2.

(t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours specified in subdivision (q) for full-time equivalency. For

the purposes of this subdivision, a district shall be considered to

be providing appropriate instruction if all of the following are

met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies, except computers, that are comparable to those

otherwise provided in the district's alternative education program.

(iii) Course content is comparable to that in the district's

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) A pupil enrolled in an alternative or disciplinary

education program described in section 25 shall be counted in

membership in the district, the public school academy, or the

education achievement system that is educating the pupil.

(w) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

or the education achievement system within 45 days after the pupil

membership count day, the department shall adjust the district's or

the education achievement system's pupil count for the pupil

membership count day to include the pupil in the count.

(x) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .90 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .10 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(y) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and, beginning in 2007-2008,

if the district does not receive funding under section 22d(2), the

district's membership shall be considered to be the membership

figure calculated under this subdivision. If a district educates

and counts in its membership pupils in grades 9 to 12 who reside in

a contiguous district that does not operate grades 9 to 12 and if 1

or both of the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

number of pupils per square mile for each of the districts for the

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

(ii) The district's actual membership for that fiscal year as

otherwise calculated under this subsection.

(z) If a public school academy that is not in its first or

second year of operation closes at the end of a school year and

does not reopen for the next school year, the department shall

adjust the membership count of the district or the education

achievement system in which a former pupil of the public school

academy enrolls and is in regular daily attendance for the next

school year to ensure that the district or the education

achievement system receives the same amount of membership aid for

the pupil as if the pupil were counted in the district or the

education achievement system on the supplemental count day of the

preceding school year.

(aa) Full-time equated memberships for special education

pupils who are not enrolled in kindergarten but are enrolled in a

classroom program under R 340.1754 of the Michigan administrative

code shall be determined by dividing the number of class hours

scheduled and provided per year by 450. Full-time equated

memberships for special education pupils who are not enrolled in

kindergarten but are receiving early childhood special education

services under R 340.1755 of the Michigan administrative code shall

be determined by dividing the number of hours of service scheduled

and provided per year per pupil by 180.

(bb) A pupil of a district that begins its school year after

Labor day who is enrolled in an intermediate district program that

begins before Labor day shall not be considered to be less than a

full-time pupil solely due to instructional time scheduled but not

attended by the pupil before Labor day.

(cc) For the first year in which a pupil is counted in

membership on the pupil membership count day in a middle college

program, the membership is the average of the full-time equated

membership on the pupil membership count day and on the

supplemental count day for the current school year, as determined

by the department. If a pupil was counted by the operating district

on the immediately preceding supplemental count day, the pupil

shall be excluded from the district's immediately preceding

supplemental count for purposes of determining the district's

membership.

(dd) A district, a public school academy, or the education

achievement system that educates a pupil who attends a United

States Olympic education center may count the pupil in membership

regardless of whether or not the pupil is a resident of this state.

(ee) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148, shall be counted in the educating

district or the education achievement system.

(ff) For a pupil enrolled in a dropout recovery program that

meets the requirements of section 23a, the pupil shall be counted

as 1/12 of a full-time equated membership for each month that the

district operating the program reports that the pupil was enrolled

in the program and was in full attendance. The district operating

the program shall report to the center the number of pupils who

were enrolled in the program and were in full attendance for a

month not later than the tenth day of the next month. A district

shall not report a pupil as being in full attendance for a month

unless both of the following are met:

(i) A personalized learning plan is in place on or before the

first school day of the month for the first month the pupil

participates in the program.

(ii) The pupil meets the district's definition under section

23a of satisfactory monthly progress for that month or, if the

pupil does not meet that definition of satisfactory monthly

progress for that month, the pupil did meet that definition of

satisfactory monthly progress in the immediately preceding month

and appropriate interventions are implemented within 10 school days

after it is determined that the pupil does not meet that definition

of satisfactory monthly progress.

(5) "Public school academy" means that term as defined in the

revised school code.

(6) "Pupil" means a person in membership in a public school. A

district must have the approval of the pupil's district of

residence to count the pupil in membership, except approval by the

pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

education achievement system.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to ~~750.90g~~ 750.90h, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(v) The pupil is enrolled in an alternative or disciplinary

education program described in section 25.

(i) A pupil enrolled in the Michigan virtual school, for the

pupil's enrollment in the Michigan virtual school.

(j) A pupil who is the child of a person who works at the

district or who is the child of a person who worked at the district

as of the time the pupil first enrolled in the district but who no

longer works at the district due to a workforce reduction. As used

in this subdivision, "child" includes an adopted child, stepchild,

or legal ward.

(k) An expelled pupil who has been denied reinstatement by the

expelling district and is reinstated by another school board under

section 1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a.

(l) A pupil enrolled in a district other than the pupil's

district of residence in a middle college program if the pupil's

district of residence and the enrolling district are both

constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil's

district of residence who attends a United States Olympic education

center.

(n) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148.

(o) A pupil who enrolls in a district other than the pupil's

district of residence as a result of the pupil's school not making

adequate yearly progress under the no child left behind act of

2001, Public Law 107-110.

(p) A pupil enrolled in a district other than the pupil's

district of residence as a qualifying pupil under section 22h(2).

However, if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

(7) "Pupil membership count day" of a district or intermediate

district means:

(a) Except as provided in subdivision (b), the first Wednesday

in October each school year or, for a district or building in which

school is not in session on that Wednesday due to conditions not

within the control of school authorities, with the approval of the

superintendent, the immediately following day on which school is in

session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) First Wednesday in October.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

day and who does not attend each of those classes during the 10

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, shall not be counted as 1.0 full-time

equated membership. A pupil who is excused from attendance on the

pupil membership count day or supplemental count day and who fails

to attend each of the classes in which the pupil is enrolled within

30 calendar days after the pupil membership count day or

supplemental count day shall not be counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, an intermediate district, a public school

academy, or the education achievement system before the pupil

membership count day or supplemental count day of a particular year

but was expelled or suspended on the pupil membership count day or

supplemental count day shall only be counted as 1.0 full-time

equated membership if the pupil resumed attendance in the district,

intermediate district, public school academy, or education

achievement system within 45 days after the pupil membership count

day or supplemental count day of that particular year. Pupils not

counted as 1.0 full-time equated membership due to an absence from

a class shall be counted as a prorated membership for the classes

the pupil attended. For purposes of this subsection, "class" means

a period of time in 1 day when pupils and a certificated teacher or

legally qualified substitute teacher are together and instruction

is taking place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to

380.1852.

(11) "School district of the first class", "first class school

district", and "district of the first class" mean a district that

had at least 60,000 pupils in membership for the immediately

preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(13) "State board" means the state board of education.

(14) "Superintendent", unless the context clearly refers to a

district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(15) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(16) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged. Tuition pupil does not include a

pupil who is a special education pupil or a pupil described in

subsection (6)(c) to (o). A pupil's district of residence shall not

require a high school tuition pupil, as provided under section 111,

to attend another school district after the pupil has been assigned

to a school district.

(17) "State school aid fund" means the state school aid fund

established in section 11 of article IX of the state constitution

of 1963.

(18) "Taxable value" means the taxable value of property as

determined under section 27a of the general property tax act, 1893

PA 206, MCL 211.27a.

(19) "Textbook" means a book, electronic book, or other

instructional print or electronic resource that is selected and

approved by the governing board of a district or, for an

achievement school, by the chancellor of the achievement authority

House Bill No. 5267 as amended December 12, 2012 (1 of 2)

and that contains a presentation of principles of a subject, or

that is a literary work relevant to the study of a subject required

for the use of classroom pupils, or another type of course material

that forms the basis of classroom instruction.

(20) "Total state aid" or "total state school aid" means the

total combined amount of all funds due to a district, intermediate

district, or other entity under all of the provisions of this

article.

<<Sec. 11. (1) ~~Subject to subsection (3), for the fiscal year~~

~~ending September 30, 2012, there is appropriated for the public~~

~~schools of this state and certain other state purposes relating to~~

~~education the sum of $11,010,210,400.00 from the state school aid~~

~~fund and the sum of $78,642,400.00 from the general fund.~~ Subject

to subsection (3), for the fiscal year ending September 30, 2013,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of ~~$10,961,087,100.00~~ $10,961,245,600.00 from the state school aid

fund and the sum of $282,400,000.00 from the general fund. In

addition, all other available federal funds, except those otherwise appropriated under section 11p, are appropriated ~~each fiscal year~~

~~for the fiscal year ending September 30, 2012 and~~ for the fiscal

year ending September 30, 2013.

(2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

from the general fund shall be expended to fund the purposes of

this article before the expenditure of money appropriated under this

section from the state school aid fund.

(3) Any general fund allocations under this article that are

not expended by the end of the state fiscal year are transferred

to the school aid stabilization fund created under section 11a.>>

Sec. 23a. (1) A dropout recovery program operated by a

district qualifies for the special membership counting provisions

of section 6(4)(ff) and the hours and day of pupil instruction

exemption under section 101(12) if the dropout recovery program

meets all of the following:

(a) Enrolls only eligible pupils.

(b) Provides an advocate. An advocate may serve in that role

for more than 1 pupil but no more than 50 pupils. An advocate may

be employed by the district or may be provided by an education

management organization that is partnering with the district.

Before an individual is assigned to be an advocate for a pupil in

the dropout recovery program, the district shall comply with

sections 1230 and 1230a of the revised school code, MCL 380.1230

and 380.1230a, with respect to that individual.

(d) Monitors the pupil's progress against the written learning

plan.

(e) Requires each pupil to make satisfactory monthly progress,

as defined by the district under subsection (2).

(f) Reports the pupil's progress results to the partner

district at least monthly.

(g) The program may be operated on or off a district school

campus, but may be operated using distance learning online only if

the program provides a computer and internet access for each

eligible pupil participating in the program.

(h) Is operated throughout the entire calendar year.

(i) If the district partners with an education management

organization for the program, the education management organization

has a dropout recovery program partnership relationship with at

least 1 other district.

(2) A district operating a dropout recovery program under this

section shall adopt a definition of satisfactory monthly progress

that is consistent with the definition of that term under

subsection (3).

(3) As used in this section:

(a) "Advocate" means an adult available to meet in person with

assigned pupils, as needed, to conduct social interventions, to

proctor final examinations, and to provide academic and social

support to pupils enrolled in the district's dropout recovery

program.

(b) "Education management organization" means a private

provider that operates 1 or more other dropout recovery programs

that meet the requirements of this section in partnership with 1 or

more districts.

school under the mandatory expulsion provisions in section 1311 or

1311a of the revised school code, MCL 380.1311 and 380.1311a, a

pupil who has been suspended or expelled from school under a local

policy, a pupil who is referred by a court, a pupil who is pregnant

or is a parent, a pupil who was previously a dropout, or a pupil

who is determined by the district to be at risk of dropping out.

(d) "Satisfactory monthly progress" means an amount of

progress that is measurable on a monthly basis and that, if

continued for a full 12 months, would result in the same amount of

academic credit being awarded to the pupil as would be awarded to a

general education pupil completing a full school year. Satisfactory

monthly progress may include a lesser required amount of progress

for the first 2 months a pupil participates in the program.

(e) "Written learning plan" means a written plan developed in

conjunction with the advocate that includes the plan start and end

dates, courses to be taken, credit to be earned for each course,

teacher of record for each course, and advocate name and contact

information.

Sec. 25. (1) Unless another method of pupil accounting is

enacted, this section applies beginning in 2013-2014.

(2) ~~(1)~~ If a pupil enrolls in a district or intermediate

district after the pupil membership count day and, due to the

pupil's enrollment and attendance status as of the pupil membership

count day, the pupil was not counted in membership in the educating

district or intermediate district, the educating district or

intermediate district shall report the enrollment and attendance

information to the department. If the pupil transfers from another

district or intermediate district, the educating district or

intermediate district also shall report the enrollment and

attendance information to that other district or intermediate

district. Upon receipt of enrollment information under this

subsection indicating that a pupil has enrolled and is in

attendance in an educating district or intermediate district as

described in this subsection, the department shall do both of the

following:

(a) Adjust the membership calculation for each district or

intermediate district in which the pupil was previously counted in

membership or that previously received an adjustment in its

membership calculation under this section due to the pupil's

enrollment and attendance, if any, so that the district's or

intermediate district's membership is prorated to allow the

district or intermediate district to receive for each school day in

which the pupil was enrolled and in attendance in the district an

amount equal to 1/180 of the foundation allowance or per pupil

payment as calculated under section 20 for the district or

intermediate district. The foundation allowance or per pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

(b) Include in the membership calculation for the educating

district or intermediate district for each school day in which the

pupil is enrolled and is in attendance in the educating district or

intermediate district, not to exceed a number of school days equal

to the difference between 180 and the number of school days in

which the pupil was reported under this section as previously

enrolled in 1 or more other districts or intermediate districts, an

amount equal to 1/180 of the foundation allowance or per pupil

payment as calculated under section 20 for the educating district

or intermediate district. The foundation allowance or per pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

(3) ~~(2)~~ The changes in calculation of state school aid

required under subsection ~~(1)~~ (2) shall take effect as of the date

that the pupil becomes enrolled and in attendance in the educating

district or intermediate district, and the department shall base

all subsequent payments under this act for the fiscal year to the

affected districts or intermediate districts on this recalculation

of state school aid.

(4) ~~(3)~~ If a pupil enrolls in an educating district or

intermediate district as described in subsection ~~(1),~~ (2), if

adjustments are made in calculations pursuant to subsection (1) due

to that enrollment, and if the pupil subsequently ceases to be

enrolled and in attendance in the educating district or

intermediate district, the educating district or intermediate

district that received an adjustment in its membership calculation

under subsection ~~(1)~~ (2) shall notify the department of the last

date of the pupil's enrollment and attendance in the educating

district or intermediate district and the number of days the pupil

was enrolled in the educating district or intermediate district.

(5) ~~(4)~~ If a pupil enrolls in an educating district or

intermediate district as described in subsection ~~(1),~~ (2), the

district or intermediate district in which the pupil is counted in

membership or another educating district or intermediate district

that received an adjustment in its membership calculation under

subsection ~~(1),~~ (2), if any, and the educating district or

intermediate district shall provide to the department all

information the department requires to comply with this section.

(6) ~~(5)~~ As used in this section, "educating district or

intermediate district" means the district or intermediate district

in which a pupil enrolls after the pupil membership count day or

after an adjustment was made in another district's or intermediate

district's membership calculation under this section due to the

pupil's enrollment and attendance.

Sec. 25d. (1) This section applies for 2012-2013 only.

(2) If a pupil is enrolled in an alternative education program

operated by an intermediate district or district for the purpose of

educating pupils who have been expelled from school or referred

from the court, and if the pupil is counted in membership in

another intermediate district or district, the intermediate

district or district operating the alternative education program

shall report the enrollment information to the department and to

the district in which the pupil is counted in membership, and the

intermediate district or district in which the pupil is counted in

membership shall pay to the intermediate district or district

operating the alternative education program an amount equal to the

amount of the foundation allowance or per-pupil payment as

calculated under section 20 for the intermediate district or

district in which the pupil is counted in membership, prorated

according to the number of days of the school year ending in the

fiscal year the pupil is educated in the alternative education

program compared to the number of days of the school year ending in

the fiscal year the pupil was actually enrolled in the intermediate

district or district in which the pupil is counted in membership.

The foundation allowance or per-pupil payment shall be adjusted by

the pupil's full-time equated status as affected by the membership

definition under section 6(4). If an intermediate district or

district does not make the payment required under this section

within 30 days after receipt of the report, the department shall

calculate the amount owed, shall deduct that amount from the

remaining state school aid payments to the intermediate district or

district for that fiscal year under this act, and shall pay that

amount to the intermediate district or district operating the

alternative education program. The intermediate district or

district in which the pupil is counted in membership and the

intermediate district or district operating the alternative

education program shall provide to the department all information

the department requires to enforce this section.

(3) If a pupil is enrolled in a strict discipline academy for

pupils who have been expelled or suspended from school or otherwise

placed in a strict discipline academy as described in section 1311g

of the revised school code, MCL 380.1311g, and if the pupil is

counted in membership in another district or intermediate district,

the strict discipline academy shall report the enrollment

information to the department and to the district or intermediate

district in which the pupil is counted in membership. Upon receipt

of enrollment information under this subsection indicating that a

pupil has enrolled in a strict discipline academy as described in

this subsection, the department shall do both of the following:

(a) Adjust the membership calculation for the district or

intermediate district in which the pupil was counted in membership

so that the district's or intermediate district's membership is

prorated to allow the district or intermediate district to receive

for each school day in which the pupil was enrolled in the district

an amount equal to 1/180 of the foundation allowance or per-pupil

payment as calculated under section 20 for the district or

intermediate district. The foundation allowance or per-pupil

payment shall be adjusted by the pupil's full-time equated status

as affected by the membership definition under section 6(4).

(b) Include in the calculation of state school aid for the

strict discipline academy for each school day in which the pupil is

enrolled in the strict discipline academy, not to exceed a number

of school days equal to the difference between 180 and the number

of school days in which the pupil was reported under this section

as previously enrolled in 1 or more other districts or intermediate

districts, an amount equal to 1/180 of the per-pupil payment as

calculated under section 20 for the strict discipline academy. The

per-pupil payment shall be adjusted by the pupil's full-time

equated status as affected by the membership definition under

section 6(4).

(4) The changes in calculation of state school aid required

under subsection (3) shall take effect as of the date that the

pupil enrolls in the strict discipline academy, and the department

shall base all subsequent payments under this act for the fiscal

year to the affected districts or intermediate districts and for

House Bill No. 5267 as amended December 12, 2012

the strict discipline academy, as applicable, on this recalculation

of state school aid.

(5) If a pupil enrolls in a strict discipline academy as

described in subsection (3), if adjustments are made in

calculations pursuant to subsection (3) due to that enrollment, and

if the pupil subsequently ceases to be enrolled in the strict

discipline academy, the strict discipline academy shall notify the

department of the last date of the pupil's enrollment in the strict

discipline academy and the number of days the pupil was enrolled in

the strict discipline academy.

(6) If a pupil enrolls in a strict discipline academy as

described in subsection (3), the district or intermediate district

in which the pupil is counted in membership and the strict

discipline academy shall provide to the department all information

the department requires to comply with this section.

<<Sec. 26b. (1) From the appropriation in section 11, ~~there is~~

~~allocated for 2011-2012 an amount not to exceed $3,000,500.00, and~~

there is allocated for 2012-2013 an amount not to exceed

~~$3,169,500.00,~~ $3,328,000.00 for payments to districts,

intermediate districts, and community college districts for the

portion of the payment in lieu of taxes obligation that is

attributable to districts, intermediate districts, and community

college districts pursuant to section 2154 of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.2154.

(2) If the amount appropriated under this section is not

sufficient to fully pay obligations under this section, payments

shall be prorated on an equal basis among all eligible districts, intermediate districts, and community college districts.>>

Sec. 201. (1) Subject to the conditions set forth in this

article, the amounts listed in subsections (2) and (4) are

appropriated for community colleges for the fiscal year ending

September 30, 2013, from the funds indicated in this section. The

following is a summary of the appropriations in subsections (2) and

(4):

(a) The gross appropriation is $294,130,500.00. After

deducting total interdepartmental grants and intradepartmental

transfers in the amount of $0.00, the adjusted gross appropriation

is $294,130,500.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues, $197,614,100.00.

(v) State general fund/general purpose money, $96,516,400.00.

(2) Subject to subsection (3), the amount appropriated for

community college operations is $292,396,900.00, allocated as

follows:

(a) Alpena Community College, $5,111,200.00.

(b) Bay de Noc Community College, $5,161,300.00.

(d) Glen Oaks Community College, $2,383,000.00.

(e) Gogebic Community College, $4,233,100.00.

(f) Grand Rapids Community College, $17,054,300.00.

(g) Henry Ford Community College, $20,596,700.00.

(h) Jackson Community College, $11,491,500.00.

(i) Kalamazoo Valley Community College, $11,828,300.00.

(j) Kellogg Community College, $9,289,300.00.

(k) Kirtland Community College, $2,968,300.00.

(l) Lake Michigan College, $5,059,300.00.

(m) Lansing Community College, $29,335,000.00.

(n) Macomb Community College, $31,206,500.00.

(o) Mid Michigan Community College, $4,393,400.00.

(p) Monroe County Community College, $4,223,500.00.

(q) Montcalm Community College, $3,038,500.00.

(r) C.S. Mott Community College, $14,890,400.00.

(s) Muskegon Community College, $8,456,100.00.

(t) North Central Michigan College, $2,979,900.00.

(u) Northwestern Michigan College, $8,624,100.00.

(v) Oakland Community College, $19,977,500.00.

(w) St. Clair County Community College, $6,697,300.00.

(x) Schoolcraft College, $11,800,500.00.

(y) Southwestern Michigan College, $6,269,000.00.

(z) Washtenaw Community College, $12,242,000.00.

(aa) Wayne County Community College, $15,798,500.00.

(bb) West Shore Community College, $2,298,200.00.

(cc) Local strategic value, $1,277,500.00.

(3) The amount appropriated in subsection (2) for community

college operations is appropriated from the following:

(a) State school aid fund, $195,880,500.00.

(b) State general fund/general purpose money, $96,516,400.00.

(4) From the appropriations described in subsection (1), there

is appropriated for fiscal year 2012-2013 an amount not to exceed

$1,733,600.00 for payments to community colleges from the state

school aid fund. A community college that receives money under this

subsection shall use that money solely for the purpose of

offsetting a portion of the retirement contributions owed by the

college for the fiscal year ending September 30, 2013. The amount

allocated to each community college under this subsection is as

follows:

(a) Alpena Community College, $30,400.00.

(b) Bay de Noc Community College, $30,800.00.

(d) Glen Oaks Community College, $14,200.00.

(e) Gogebic Community College, $25,300.00.

(f) Grand Rapids Community College, $101,700.00.

(g) Henry Ford Community College, $123,000.00.

(h) Jackson Community College, $68,500.00.

(i) Kalamazoo Valley Community College, $70,400.00.

(j) Kellogg Community College, $55,300.00.

(k) Kirtland Community College, $17,500.00.

(l) Lake Michigan College, $30,200.00.

(m) Lansing Community College, $175,000.00.

(n) Macomb Community College, $186,200.00.

(o) Mid Michigan Community College, $26,100.00

(p) Monroe County Community College, $25,000.00.

(q) Montcalm Community College, $18,000.00.

(r) C.S. Mott Community College, $88,700.00.

(s) Muskegon Community College, $50,400.00.

(t) North Central Michigan College, $17,600.00.

(u) Northwestern Michigan College, $51,500.00.

(v) Oakland Community College, $118,800.00.

(w) St. Clair County Community College, $39,900.00.

(x) Schoolcraft College, $70,100.00.

(y) Southwestern Michigan College, $37,500.00.

(z) Washtenaw Community College, $72,200.00.

(aa) Wayne County Community College, $94,200.00.

(bb) West Shore Community College, $13,700.00.

(5) Notwithstanding subsections (1) and (3) of this section as

in effect for the fiscal year ending September 30, 2012, the

amounts appropriated for community colleges under subsection (2) of

House Bill No. 5267 as amended December 12, 2012

this section for the fiscal year ending September 30, 2012 are

appropriated from the following funds:

(a) State school aid fund, $259,629,400.00.

(b) State general fund/general purpose money, $24,251,100.00.

<<Enacting section 1. In accordance with section 30 of article I

of the state constitution of 1963, under article I of the state school

aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1896, as amended by

this amendatory act and by 2012 PA 201, total state spending on school

aid from state sources for fiscal year 2012-2013 is estimated at

$11,243,645,600.00 and state appropriations for school aid to be paid

to local units of government for fiscal year 2011-2012 are estimated

at $10,935,149,700.00.>>

Enacting section <<2>>. This amendatory act takes effect October

1, 2012.

Enacting section <<3>>. This amendatory act does not take effect

unless Senate Bill No. 969 of the 96th Legislature is enacted into

law.