SB-0216, As Passed Senate, March 17, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 216

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 4, 6, 98, 107, 230, and 256 (MCL 388.1604,

388.1606, 388.1698, 388.1707, 388.1830, and 388.1856), section 4 as

amended by 2012 PA 201, section 6 as amended by 2015 PA 223,

sections 98, 230, and 256 as amended by 2015 PA 85, and section 107

as amended by 2015 PA 139.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4. (1) "Education achievement system" means the

achievement authority and all achievement schools.

(2) "Elementary pupil" means a pupil in membership in grades K

to 8 in a district not maintaining classes above the eighth grade

or in grades K to 6 in a district maintaining classes above the

eighth grade. For the purposes of calculating universal service

fund (e-rate) discounts, "elementary pupil" includes children

enrolled in a preschool program operated by a district in its

facilities.

(3) "Extended school year" means an educational program

conducted by a district in which pupils must be enrolled but not

necessarily in attendance on the pupil membership count day in an

extended year program. The mandatory clock hours shall be completed

by each pupil not more than 365 calendar days after the pupil's

first day of classes for the school year prescribed. The department

shall prescribe pupil, personnel, and other reporting requirements

for the educational program.

(4) "Fiscal year" means the state fiscal year that commences

October 1 and continues through September 30.

(5) "High school equivalency certificate" means a certificate

granted for the successful completion of a high school equivalency

test.

(6) "High school equivalency test" means a high school

equivalency test approved by the department under section 107.

(7) ~~(5) "General educational development testing~~ "High school

equivalency test preparation program" means a program that has high

school level courses in English language arts, social studies,

science, and mathematics and that prepares ~~a person~~ an individual

to successfully complete ~~the general educational development (GED)~~

~~test.~~a high school equivalency test.

(8) ~~(6)~~ "High school pupil" means a pupil in membership in

grades 7 to 12, except in a district not maintaining grades above

the eighth grade.

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 education

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 25e 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, a pupil's participation in the cyber

school's educational program is considered regular daily

attendance; for the education achievement system, a pupil's

participation in an online educational program of the education

achievement system or of an achievement school is considered

regular daily attendance; and for a district a pupil's

participation in an online course as defined in section 21f 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) To be counted in membership, 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.

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

entered school.

current school year.

(D) Is considered to be homeless under 42 USC 11302, or was

counted in membership under this subparagraph in 2014-2015.

(iii) If a child does not meet the minimum age requirement to

be eligible to attend school for that school year under section

1147 of the revised school code, MCL 380.1147, but will be 5 years

of age not later than December 1 of that school year, the district

may count the child in membership for that school year if the

parent or legal guardian has notified the district in writing that

he or she intends to enroll the child in kindergarten for that

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.)~~ achieved a high school

equivalency certificate shall not be counted in membership unless

the individual is a student 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) and section 101.

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

required under section 101, 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 required under section 101 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

required under section 101, 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 required under section 101 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. 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) 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. The change in the

counting of full-time equated memberships for pupils in

kindergarten that took effect for 2012-2013 is not a mandate.

(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 required under section 101 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 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) 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.

(w) 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.

(x) 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 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.

(y) 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 or R 340.1862 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.

(z) 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.

(aa) 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 described in this subdivision was

counted in membership 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 the

purposes of determining the district's membership.

(bb) 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.

(cc) 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.

(dd) 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. However, if the special

membership counting provisions under this subdivision and the

operation of the other membership counting provisions under this

subsection result in a pupil being counted as more than 1.0 FTE in

a fiscal year, the payment made for the pupil under sections 22a

and 22b shall not be based on more than 1.0 FTE for that pupil, and

any portion of an FTE for that pupil that exceeds 1.0 shall instead

be paid under section 25g. 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.

(ee) A pupil participating in an online course under section

21f shall be counted in membership in the district enrolling the

pupil.

(ff) 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.

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

section 5 of the revised school code, MCL 380.5.

(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 K 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 750.90h, 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.

(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.

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, for the purposes

of this article only, a district that had at least 40,000 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 to the district of residence.

Tuition pupil does not include a pupil who is a special education

pupil, a pupil described in subsection (6)(c) to (o), or a pupil

whose parent or guardian voluntarily enrolls the pupil in a

district that is not the pupil's district of residence. 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

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. 98. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed

$7,387,500.00 for 2015-2016 for the purposes described in this

section.

(2) The Michigan Virtual University shall operate the Michigan

Virtual Learning Research Institute. The Michigan Virtual Learning

Research Institute shall do all of the following:

(a) Support and accelerate innovation in education through the

following activities:

(i) Test, evaluate, and recommend as appropriate new

technology-based instructional tools and resources.

(ii) Research, design, and recommend digital education

delivery models for use by pupils and teachers that include age-

appropriate multimedia instructional content.

(iii) Research, develop, and recommend annually to the

department criteria by which cyber schools and online course

providers should be monitored and evaluated to ensure a quality

education for their pupils.

(iv) Based on pupil completion and performance data reported

to the department or the center for educational performance and

information from cyber schools and other online course providers

operating in this state, analyze the effectiveness of online

learning delivery models in preparing pupils to be college- and

career-ready and publish a report that highlights enrollment

totals, completion rates, and the overall impact on pupils. The

report shall be submitted to the house and senate appropriations

subcommittees on state school aid, the state budget director, the

house and senate fiscal agencies, and the department not later than

March 31, 2016.

(v) Before August 31, 2016, provide an extensive professional

development program to at least 500 educational personnel,

including teachers, school administrators, and school board

members, that focuses on the effective integration of digital

learning into curricula and instruction. Not later than December 1,

2016, the Michigan Virtual Learning Research Institute shall submit

a report to the house and senate appropriations subcommittees on

state school aid, the state budget director, the house and senate

fiscal agencies, and the department on the number and percentage of

teachers, school administrators, and school board members who have

received professional development services from the Michigan

Virtual University. The report shall also identify barriers and

other opportunities to encourage the adoption of digital learning

in the public education system.

(vi) Identify and share best practices for planning,

implementing, and evaluating online and blended education delivery

models with intermediate districts, districts, and public school

academies to accelerate the adoption of innovative education

delivery models statewide.

(b) Provide leadership for this state's system of digital

learning education by doing the following activities:

(i) Develop and report policy recommendations to the governor

and the legislature that accelerate the expansion of effective

online learning in this state's schools.

(ii) Provide a clearinghouse for research reports, academic

studies, evaluations, and other information related to online

learning.

(iii) Promote and distribute the most current instructional

design standards and guidelines for online teaching.

(iv) In collaboration with the department and interested

colleges and universities in this state, support implementation and

improvements related to effective digital learning instruction.

(v) Pursue public/private partnerships that include districts

to study and implement competency-based technology-rich online

learning models.

(vi) Create a statewide network of school-based mentors

serving as liaisons between pupils, online instructors, parents,

and school staff and provide mentors with research-based training

and technical assistance designed to help more pupils be successful

online learners.

(vii) Convene focus groups and conduct annual surveys of

teachers, administrators, pupils, parents, and others to identify

barriers and opportunities related to online learning.

(viii) Produce an annual consumer awareness report for schools

and parents about effective online education providers and

education delivery models, performance data, cost structures, and

research trends.

(ix) Research and establish an Internet-based platform that

educators can use to create student-centric learning tools and

resources and facilitate a user network that assists educators in

using the platform. As part of this initiative, the Michigan

Virtual University shall work collaboratively with districts and

intermediate districts to establish a plan to make available online

resources that align to Michigan's K-12 curriculum standards for

use by students, educators, and parents.

(x) Create and maintain a public statewide catalog of online

learning courses being offered by all public schools and community

colleges in this state. The Michigan Virtual Learning Research

Institute shall identify and develop a list of nationally

recognized best practices for online learning and use this list to

support reviews of online course vendors, courses, and

instructional practices. The Michigan Virtual Learning Research

Institute shall also provide a mechanism for intermediate districts

to use the identified best practices to review content offered by

constituent districts. The Michigan Virtual Learning Research

Institute shall review the online course offerings of the Michigan

Virtual University, and make the results from these reviews

available to the public as part of the statewide catalog. The

Michigan Virtual Learning Research Institute shall ensure that the

statewide catalog is made available to the public on the Michigan

Virtual University website and shall allow the ability to link it

to each district's website as provided for in section 21f. The

statewide catalog shall also contain all of the following:

(A) The number of enrollments in each online course in the

immediately preceding school year.

(B) The number of enrollments that earned 60% or more of the

total course points for each online course in the immediately

preceding school year.

(xi) Develop prototype and pilot registration, payment

services, and transcript functionality to the statewide catalog and

train key stakeholders on how to use new features.

(xii) Collaborate with key stakeholders to examine district

level accountability and teacher effectiveness issues related to

online learning under section 21f and make findings and

recommendations publicly available.

(3) To further enhance its expertise and leadership in digital

learning, the Michigan Virtual University shall continue to operate

the Michigan Virtual School as a statewide laboratory and quality

model of instruction by implementing online and blended learning

solutions for Michigan schools in accordance with the following

parameters:

(a) The Michigan Virtual School must maintain its

accreditation status from recognized national and international

accrediting entities.

(b) The Michigan Virtual University shall use no more than

$1,000,000.00 of the amount allocated under this section to

subsidize the cost paid by districts for online courses.

online courses as provided for in this section, the Michigan

Virtual School shall follow the requirements to request and assess,

and the department of state police shall provide, a criminal

history check and criminal records check under sections 1230 and

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

the same manner as if the Michigan Virtual School were a school

district under those sections.

(4) If the course offerings are included in the statewide

catalog of online courses under subsection (2)(b)(ix), the Michigan

Virtual School operated by the Michigan Virtual University may

offer online course offerings, including, but not limited to, all

of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section

1471 of the revised school code, MCL 380.1471.

(d) Programs and services for at-risk pupils.

(e) ~~General education development~~ High school equivalency test

preparation courses for adjudicated youth.

(f) Special interest courses.

(g) Professional development programs for teachers, school

administrators, other school employees, and school board members.

(5) If a home-schooled or nonpublic school student is a

resident of a district that subscribes to services provided by the

Michigan Virtual School, the student may use the services provided

by the Michigan Virtual School to the district without charge to

the student beyond what is charged to a district pupil using the

same services.

(6) Not later than December 1 of each fiscal year, the

Michigan Virtual University shall provide a report to the house and

senate appropriations subcommittees on state school aid, the state

budget director, the house and senate fiscal agencies, and the

department that includes at least all of the following information

related to the Michigan Virtual School for the preceding state

fiscal year:

(a) A list of the districts served by the Michigan Virtual

School.

(b) A list of online course titles available to districts.

information on registrations and completions by course.

(d) The overall course completion rate percentage.

(7) The governor may appoint an advisory group for the

Michigan Virtual Learning Research Institute established under

subsection (2). The members of the advisory group shall serve at

the pleasure of the governor and shall serve without compensation.

The purpose of the advisory group is to make recommendations to the

governor, the legislature, and the president and board of the

Michigan Virtual University that will accelerate innovation in this

state's education system in a manner that will prepare elementary

and secondary students to be career and college ready and that will

promote the goal of increasing the percentage of citizens of this

state with high-quality degrees and credentials to at least 60% by

2025.

(8) Not later than November 1, 2015, the Michigan Virtual

University shall submit to the house and senate appropriations

subcommittees on state school aid, the state budget director, and

the house and senate fiscal agencies a detailed budget for the

2015-2016 fiscal year that includes a breakdown on its projected

costs to deliver online educational services to districts and a

summary of the anticipated fees to be paid by districts for those

services. Not later than March 1 each year, the Michigan Virtual

University shall submit to the house and senate appropriations

subcommittees on state school aid, the state budget director, and

the house and senate fiscal agencies a breakdown on its actual

costs to deliver online educational services to districts and a

summary of the actual fees paid by districts for those services

based on audited financial statements for the immediately preceding

fiscal year.

(9) As used in this section:

(a) "Blended learning" means a hybrid instructional delivery

model where pupils are provided content, instruction, and

assessment, in part at a supervised educational facility away from

home where the pupil and a teacher with a valid Michigan teaching

certificate are in the same physical location and in part through

Internet-connected learning environments with some degree of pupil

control over time, location, and pace of instruction.

(b) "Cyber school" means a full-time instructional program of

online courses for pupils that may or may not require attendance at

a physical school location.

based educational delivery system that uses various information

technologies to provide a structured learning environment,

including online and blended learning instructional methods.

(d) "Online course" means a course of study that is capable of

generating a credit or a grade, that is provided in an interactive

Internet-connected learning environment, in which pupils are

separated from their teachers by time or location, or both, and in

which a teacher who holds a valid Michigan teaching certificate is

responsible for providing instruction, determining appropriate

instructional methods for each pupil, diagnosing learning needs,

assessing pupil learning, prescribing intervention strategies,

reporting outcomes, and evaluating the effects of instruction and

support strategies.

Sec. 107. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $25,000,000.00 for 2015-2016 for

adult education programs authorized under this section. Except as

otherwise provided under subsections (16) and (18), funds allocated

under this section are restricted for adult education programs as

authorized under this section only. A recipient of funds under this

section shall not use those funds for any other purpose.

(2) To be eligible for funding under this section, an eligible

adult education provider shall employ certificated teachers and

qualified administrative staff and shall offer continuing education

opportunities for teachers to allow them to maintain certification.

(3) To be eligible to be a participant funded under this

section, an individual shall be enrolled in an adult basic

education program, an adult English as a second language program, a

~~general educational development (G.E.D.)~~ high school equivalency

test preparation program, a job- or employment-related program, or

a high school completion program, that meets the requirements of

this section, and for which instruction is provided, and shall meet

either of the following, as applicable:

(a) If the individual has ~~obtained a high school diploma or a~~

~~general educational development (G.E.D.)~~ achieved a high school

equivalency certificate, the individual meets 1 of the following:

(i) Is less than 20 years of age on September 1 of the school

year, is not attending an institution of higher education, and is

enrolled in a job- or employment-related program through a referral

by an employer or by a Michigan workforce agency.

(ii) Is enrolled in an English as a second language program.

(iii) Is enrolled in a high school completion program.

(iv) Is at least 20 years of age on September 1 of the school

year, is enrolled in an adult basic education program, and is

determined by a department-approved assessment, in a form and

manner prescribed by the department, to be below grade 9 level in

reading or mathematics, or both.

(b) If the individual has not obtained a high school diploma

or ~~G.E.D.~~ high school equivalency certificate, the individual meets

1 of the following:

(i) Is at least 20 years of age on September 1 of the school

year.

(ii) Is at least 16 years of age on September 1 of the school

year, has been permanently expelled from school under section

1311(2) or 1311a of the revised school code, MCL 380.1311 and

380.1311a, and has no appropriate alternative education program

available through his or her district of residence.

(4) By April 1 of each fiscal year, the intermediate districts

within a prosperity region or subregion shall determine which

intermediate district will serve as the prosperity region's or

subregion's fiscal agent for the next fiscal year and shall notify

the department in a form and manner determined by the department.

The department shall approve or disapprove of the prosperity

region's or subregion's selected fiscal agent. From the funds

allocated under subsection (1), an amount as determined under this

subsection shall be allocated to each intermediate district serving

as a fiscal agent for adult education programs in each of the

prosperity regions or subregions identified by the department. An

intermediate district shall not use more than 5% of the funds

allocated under this subsection for administration costs for

serving as the fiscal agent. Beginning in 2014-2015, 67% of the

allocation provided to each intermediate district serving as a

fiscal agent shall be based on the proportion of total funding

formerly received by the adult education providers in that

prosperity region or subregion in 2013-2014, and 33% shall be

allocated based on the factors in subdivisions (a), (b), and (c).

For 2016-2017, 33% of the allocation provided to each intermediate

district serving as a fiscal agent shall be based upon the

proportion of total funding formerly received by the adult

education providers in that prosperity region in 2013-2014 and 67%

of the allocation shall be based upon the factors in subdivisions

(a), (b), and (c). Beginning in 2017-2018, 100% of the allocation

provided to each intermediate district serving as a fiscal agent

shall be based on the factors in subdivisions (a), (b), and (c).

The funding factors for this section are as follows:

(a) Sixty percent of this portion of the funding shall be

distributed based upon the proportion of the state population of

individuals between the ages of 18 and 24 that are not high school

graduates that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American community survey (ACS) from the United States Census

Bureau.

(b) Thirty-five percent of this portion of the funding shall

be distributed based upon the proportion of the state population of

individuals age 25 or older who are not high school graduates that

resides in each of the prosperity regions or subregions, as

reported by the most recent 5-year estimates from the American

community survey (ACS) from the United States Census Bureau.

distributed based upon the proportion of the state population of

individuals age 18 or older who lack basic English language

proficiency that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American community survey (ACS) from the United States Census

Bureau.

(5) To be an eligible fiscal agent, an intermediate district

must agree to do the following in a form and manner determined by

the department:

(a) Distribute funds to adult education programs in a

prosperity region or subregion as described in this section.

(b) Collaborate with the talent district career council, which

is an advisory council of the workforce development boards located

in the prosperity region or subregion, or its successor, to develop

a regional strategy that aligns adult education programs and

services into an efficient and effective delivery system for adult

education learners, with special consideration for providing

contextualized learning and career pathways.

is an advisory council of the workforce development boards located

in the prosperity region or subregion, or its successor, to create

a local process and criteria that will identify eligible adult

education providers to receive funds allocated under this section

based on location, demand for services, past performance, quality

indicators as identified by the department, and cost to provide

instructional services. The fiscal agent shall determine all local

processes, criteria, and provider determinations. However, the

local processes, criteria, and provider services must be approved

by the department before funds may be distributed to the fiscal

agent.

(d) Provide oversight to its adult education providers

throughout the program year to ensure compliance with the

requirements of this section.

(e) Report adult education program and participant data and

information as prescribed by the department.

(6) The amount allocated under this section per full-time

equated participant shall not exceed $2,850.00 for a 450-hour

program. The amount shall be proportionately reduced for a program

offering less than 450 hours of instruction.

(7) An adult basic education program or an adult English as a

second language program operated on a year-round or school year

basis may be funded under this section, subject to all of the

following:

(a) The program enrolls adults who are determined by a

department-approved assessment, in a form and manner prescribed by

the department, to be below ninth grade level in reading or

mathematics, or both, or to lack basic English proficiency.

(b) The program tests individuals for eligibility under

subdivision (a) before enrollment and upon completion of the

program in compliance with the state-approved assessment policy.

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed at or above the ninth grade level.

(ii) The participant fails to show progress on 2 successive

assessments after having completed at least 450 hours of

instruction.

(d) A funding recipient enrolling a participant in an English

as a second language program is eligible for funding according to

subsection (11) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic

English proficiency as determined by a department-approved

assessment.

(ii) The participant fails to show progress on 2 successive

department-approved assessments after having completed at least 450

hours of instruction. The department shall provide information to a

funding recipient regarding appropriate assessment instruments for

this program.

(8) A ~~general educational development (G.E.D.)~~ high school

equivalency test preparation program operated on a year-round or

school year basis may be funded under this section, subject to all

of the following:

(a) The program enrolls adults who do not have a high school

diploma.

(b) The program shall administer a pre-test approved by the

department before enrolling an individual to determine the

individual's literacy levels, shall administer a ~~G.E.D.~~ high school

equivalency practice test to determine the individual's potential

for success on the ~~G.E.D.~~ high school equivalency test, and shall

administer a post-test upon completion of the program in compliance

with the state-approved assessment policy.

subsection (11) for a participant, and a participant may be

enrolled in the program until 1 of the following occurs:

(i) The participant ~~obtains the G.E.D.~~achieves a high school

equivalency certificate.

(ii) The participant fails to show progress on 2 successive

department-approved assessments used to determine readiness to take

~~the G.E.D.~~ a high school equivalency test after having completed at

least 450 hours of instruction.

(9) A high school completion program operated on a year-round

or school year basis may be funded under this section, subject to

all of the following:

(a) The program enrolls adults who do not have a high school

diploma.

(b) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the state-approved assessment policy.

subsection (11) for a participant in a course offered under this

subsection until 1 of the following occurs:

(i) The participant passes the course and earns a high school

diploma.

(ii) The participant fails to earn credit in 2 successive

semesters or terms in which the participant is enrolled after

having completed at least 900 hours of instruction.

(10) A job- or employment-related adult education program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

(a) The program enrolls adults referred by their employer who

are less than 20 years of age, have a high school diploma, are

determined to be in need of remedial mathematics or communication

arts skills, and are not attending an institution of higher

education.

(b) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the department-approved assessment policy.

grant recipient shall receive funding according to subsection (11)

until 1 of the following occurs:

(i) The individual achieves the requisite skills as determined

by department-approved assessment instruments.

(ii) The individual fails to show progress on 2 successive

assessments after having completed at least 450 hours of

instruction.

(11) A funding recipient shall receive payments under this

section in accordance with the following:

(a) Eighty percent for enrollment of eligible participants.

(b) Twenty percent for participant completion of the adult

basic education objectives by achieving an educational gain as

determined by the national reporting system levels; for achieving

basic English proficiency, as determined by the department; for

~~obtaining a G.E.D.~~ achieving a high school equivalency certificate

or passage of 1 or more individual ~~G.E.D.~~ high school equivalency

tests; for attainment of a high school diploma or passage of a

course required for a participant to attain a high school diploma;

for enrollment in a postsecondary institution, or for entry into or

retention of employment, as applicable.

(12) A person who is not eligible to be a participant funded

under this section may receive adult education services upon the

payment of tuition. In addition, a person who is not eligible to be

served in a program under this section due to the program

limitations specified in subsection (7), (8), (9), or (10) may

continue to receive adult education services in that program upon

the payment of tuition. The tuition level shall be determined by

the local or intermediate district conducting the program.

(13) An individual who is an inmate in a state correctional

facility shall not be counted as a participant under this section.

(14) A funding recipient shall not commingle money received

under this section or from another source for adult education

purposes with any other funds and shall establish a separate ledger

account for funds received under this section. This subsection does

not prohibit a district from using general funds of the district to

support an adult education or community education program.

(15) A funding recipient receiving funds under this section

may establish a sliding scale of tuition rates based upon a

participant's family income. A funding recipient may charge a

participant tuition to receive adult education services under this

section from that sliding scale of tuition rates on a uniform

basis. The amount of tuition charged per participant shall not

exceed the actual operating cost per participant minus any funds

received under this section per participant. A funding recipient

may not charge a participant tuition under this section if the

participant's income is at or below 200% of the federal poverty

guidelines published by the United States Department of Health and

Human Services.

(16) In order to receive funds under this section, a funding

recipient shall furnish to the department, in a form and manner

determined by the department, all information needed to administer

this program and meet federal reporting requirements; shall allow

the department or the department's designee to review all records

related to the program for which it receives funds; and shall

reimburse the state for all disallowances found in the review, as

determined by the department. In addition, a funding recipient

shall agree to pay to a career and technical education program

under section 61a the amount of funding received under this section

in the proportion of career and technical education coursework used

to satisfy adult basic education programming, as billed to the

funding recipient by programs operating under section 61a.

(17) All intermediate district participant audits of adult

education programs shall be performed pursuant to the adult

education participant auditing and accounting manuals published by

the department.

(18) From the amount appropriated in subsection (1), an amount

not to exceed $500,000.00 shall be allocated for 2015-2016 to not

more than 1 pilot program that is located in a prosperity region

with 2 or more subregions and that connects adult education

participants directly with employers by linking adult education,

career and technical skills, and workforce development. To be

eligible for funding under this subsection, a pilot program shall

provide a collaboration linking adult education programs within the

county, the area career/technical center, and local employers, and

shall meet the additional criteria in subsections (19) and (20).

Funding under this subsection for 2015-2016 is for the first of 3

years of funding.

(19) A pilot program funded under subsection (18) shall

require adult education staff to work with Michigan ~~Works!~~ works

agency to identify a cohort of participants who are most prepared

to successfully enter the workforce. Participants identified under

this subsection shall be dually enrolled in adult education

programming and at least 1 technical course at the area

career/technical center.

(20) A pilot program funded under subsection (18) shall have

on staff an adult education navigator who will serve as a

caseworker for each participant identified under subsection (19).

The navigator shall work with adult education staff and potential

employers to design an educational program best suited to the

personal and employment needs of the participant, and shall work

with human service agencies or other entities to address any

barrier in the way of participant access.

(21) Not later than December 1, 2016, the pilot program funded

under subsection (18) shall provide to the senate and house

appropriations subcommittees on school aid and to the senate and

house fiscal agencies a report detailing number of participants,

graduation rates, and a measure of transitioning to employment.

(22) The department shall develop an application process for a

pilot program to be funded under subsection (18) and shall award

funding not later than November 1, 2015. Funding allocated under

subsection (18) may be paid on a schedule other than that specified

under section 17b.

(23) The department shall approve at least 1 high school

equivalency test and determine whether a high school equivalency

certificate meets the requisite standards for high school

equivalency in this state.

(24) ~~(23)~~ As used in this section:

(a) "Career pathway" means a combination of rigorous and high-

quality education, training, and other services that comply with

all of the following:

(i) Aligns with the skill needs of industries in the economy

of this state or in the regional economy involved.

(ii) Prepares an individual to be successful in any of a full

range of secondary or postsecondary education options, including

apprenticeships registered under the act of August 16, 1937

(commonly known as the "national apprenticeship act"), 29 USC 50 et

seq.

(iii) Includes counseling to support an individual in

achieving the individual's education and career goals.

(iv) Includes, as appropriate, education offered concurrently

with and in the same context as workforce preparation activities

and training for a specific occupation or occupational cluster.

(v) Organizes education, training, and other services to meet

the particular needs of an individual in a manner that accelerates

the educational and career advancement of the individual to the

extent practicable.

(vi) Enables an individual to attain a secondary school

diploma or its recognized equivalent, and at least 1 recognized

postsecondary credential.

(vii) Helps an individual enter or advance within a specific

occupation or occupational cluster.

(b) "Department" means the department of talent and economic

development.

intermediate district, a consortium of districts, a consortium of

intermediate districts, or a consortium of districts and

intermediate districts that is identified as part of the local

process described in subsection (5)(c) and approved by the

department.

(d) "Participant" means the sum of the number of full-time

equated individuals enrolled in and attending a department-approved

adult education program under this section, using quarterly

participant count days on the schedule described in section

6(7)(b).

Sec. 230. (1) Money included in the appropriations for

community college operations under section 201(2) in fiscal year

2015-2016 for performance funding is distributed based on the

following formula:

(a) Allocated proportionate to fiscal year 2014-2015 base

appropriations, 50%.

(b) Based on contact hour equated students, 10%.

(d) Based on a weighted degree formula as provided for in the

2006 recommendations of the performance indicators task force,

17.5%.

(e) Based on the local strategic value component, as developed

in cooperation with the Michigan Community College Association and

described in subsection (2), 15%.

(2) Money included in the appropriations for community college

operations under section 201(2) for local strategic value shall be

allocated to each community college that certifies to the state

budget director, through a board of trustees resolution on or

before October 15, 2015, that the college has met 4 out of 5 best

practices listed in each category described in subsection (3). The

resolution shall provide specifics as to how the community college

meets each best practice measure within each category. One-third of

funding available under the strategic value component shall be

allocated to each category described in subsection (3). Amounts

distributed under local strategic value shall be on a proportionate

basis to each college's fiscal year 2014-2015 operations funding.

Payments to community colleges that qualify for local strategic

value funding shall be distributed with the November installment

payment described in section 206.

(3) For purposes of subsection (2), the following categories

of best practices reflect functional activities of community

colleges that have strategic value to the local communities and

regional economies:

(a) For Category A, economic development and business or

industry partnerships, the following:

(i) The community college has active partnerships with local

employers including hospitals and health care providers.

(ii) The community college provides customized on-site

training for area companies, employees, or both.

(iii) The community college supports entrepreneurship through

a small business assistance center or other training or consulting

activities targeted toward small businesses.

(iv) The community college supports technological advancement

through industry partnerships, incubation activities, or operation

of a Michigan technical education center or other advanced

technology center.

(v) The community college has active partnerships with local

or regional workforce and economic development agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active partnerships with

regional high schools, intermediate school districts, and career-

tech centers to provide instruction through dual enrollment,

concurrent enrollment, direct credit, middle college, or academy

programs.

(ii) The community college hosts, sponsors, or participates in

enrichment programs for area K-12 students, such as college days,

summer or after-school programming, or science Olympiad.

(iii) The community college provides, supports, or

participates in programming to promote successful transitions to

college for traditional age students, including grant programs such

as talent search, upward bound, or other activities to promote

college readiness in area high schools and community centers.

(iv) The community college provides, supports, or participates

in programming to promote successful transitions to college for new

or reentering adult students, such as adult basic education,

~~general education development certificate~~ a high school equivalency

test preparation program and testing, or recruiting, advising, or

orientation activities specific to adults. As used in this

subparagraph, "high school equivalency test preparation program"

means that term as defined in section 4.

(v) The community college has active partnerships with

regional 4-year colleges and universities to promote successful

transfer, such as articulation, 2+2, or reverse transfer agreements

or operation of a university center.

(i) The community college provides continuing education

programming for leisure, wellness, personal enrichment, or

professional development.

(ii) The community college operates or sponsors opportunities

for community members to engage in activities that promote leisure,

wellness, cultural or personal enrichment such as community sports

teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public facilities to

promote cultural, educational, or personal enrichment for community

members, such as libraries, computer labs, performing arts centers,

museums, art galleries, or television or radio stations.

(iv) The community college operates public facilities to

promote leisure or wellness activities for community members,

including gymnasiums, athletic fields, tennis courts, fitness

centers, hiking or biking trails, or natural areas.

(v) The community college promotes, sponsors, or hosts

community service activities for students, staff, or community

members.

(4) Payments for performance funding under section 201(2)

shall be made to a community college only if that community college

actively participates in the Michigan transfer network sponsored by

the Michigan Association of Collegiate Registrars and Admissions

Officers and submits timely updates, including updated course

equivalencies at least every 6 months, to the Michigan transfer

network. The state budget director shall determine if a community

college has not satisfied this requirement. The state budget

director may withhold payments for performance funding until a

community college is in compliance with this section.

Sec. 256. (1) The funds appropriated in section 236 for the

tuition incentive program shall be distributed as provided in this

section and pursuant to the administrative procedures for the

tuition incentive program of the department of treasury.

(2) As used in this section:

(a) "Phase I" means the first part of the tuition incentive

assistance program defined as the academic period of 80 semester or

120 term credits, or less, leading to an associate degree or

certificate.

(b) "Phase II" means the second part of the tuition incentive

assistance program which provides assistance in the third and

fourth year of 4-year degree programs.

(d) "High school equivalency certificate" means that term as

defined in section 4.

(3) An individual shall meet the following basic criteria and

financial thresholds to be eligible for tuition incentive benefits:

(a) To be eligible for phase I, an individual shall meet all

of the following criteria:

(i) Apply for certification to the department any time after

he or she begins the sixth grade but before August 31 of the school

year in which he or she graduates from high school or before

~~completing a general education development~~ achieving a high school

equivalency certificate.

(ii) Be less than 20 years of age at the time he or she

graduates from high school with a diploma or certificate of

completion or ~~completes a general education development~~ achieves a

high school equivalency certificate.

(iii) Be a United States citizen and a resident of Michigan

according to institutional criteria.

(iv) Be at least a half-time student, earning less than 80

semester or 120 term credits at a participating educational

institution within 4 years of high school graduation or ~~completion~~

~~of a general education development~~ achievement of a high school

equivalency certificate.

(v) Request information on filing a FAFSA.

(vi) Must meet the satisfactory academic progress policy of

the educational institution he or she attends.

(b) To be eligible for phase II, an individual shall meet

either of the following criteria in addition to the criteria in

subdivision (a):

(i) Complete at least 56 transferable semester or 84

transferable term credits.

(ii) Obtain an associate degree or certificate at a

participating institution.

not be incarcerated and must be financially eligible as determined

by the department. An individual is financially eligible for the

tuition incentive program if he or she was eligible for Medicaid

from the state of Michigan for 24 months within the 36 months

before application. The department shall accept certification of

Medicaid eligibility only from the department of health and human

services for the purposes of verifying if a person is Medicaid

eligible for 24 months within the 36 months before application.

Certification of eligibility may begin in the sixth grade. As used

in this subdivision, "incarcerated" does not include detention of a

juvenile in a state-operated or privately operated juvenile

detention facility.

(4) For phase I, the department shall provide payment on

behalf of a person eligible under subsection (3). The department

shall reject billings that are excessive or outside the guidelines

for the type of educational institution.

(5) For phase I, all of the following apply:

(a) Payments for associate degree or certificate programs

shall not be made for more than 80 semester or 120 term credits for

any individual student at any participating institution.

(b) For persons enrolled at a Michigan community college, the

department shall pay the current in-district tuition and mandatory

fees. For persons residing in an area that is not included in any

community college district, the out-of-district tuition rate may be

authorized.

department shall pay lower division resident tuition and mandatory

fees for the current year.

(d) For persons enrolled at a Michigan independent, nonprofit

degree-granting college or university, or a Michigan federal

tribally controlled community college, or Focus: HOPE, the

department shall pay mandatory fees for the current year and a per-

credit payment that does not exceed the average community college

in-district per-credit tuition rate as reported on August 1, for

the immediately preceding academic year.

(6) A person participating in phase II may be eligible for

additional funds not to exceed $500.00 per semester or $400.00 per

term up to a maximum of $2,000.00 subject to the following

conditions:

(a) Credits are earned in a 4-year program at a Michigan

degree-granting 4-year college or university.

(b) The tuition reimbursement is for coursework completed

within 30 months of completion of the phase I requirements.

(7) The department shall work closely with participating

institutions to develop an application and eligibility

determination process that will provide the highest level of

participation and ensure that all requirements of the program are

met.

(8) Applications for the tuition incentive program may be

approved at any time after the student begins the sixth grade. If a

determination of financial eligibility is made, that determination

is valid as long as the student meets all other program

requirements and conditions.

(9) Each institution shall ensure that all known available

restricted grants for tuition and fees are used prior to billing

the tuition incentive program for any portion of a student's

tuition and fees.

(10) The department shall ensure that the tuition incentive

program is well publicized and that eligible Medicaid clients are

provided information on the program. The department shall provide

the necessary funding and staff to fully operate the program.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.