FIRST CONFERENCE REPORT

 

     The Committee of Conference on the matters of difference between the two Houses concerning

 

     Senate Bill No. 796, entitled

 

     A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 11 and 17b (MCL 388.1611 and 388.1617b), section 11 as amended by 2015 PA 139 and section 17b as amended by 2007 PA 137.

 

     Recommends:

 

     First:  That the House recede from the Substitute of the House as passed by the House.

 

     Second:  That the Senate and House agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:

 

(attached)

 

     Third:  That the Senate and House agree to the title of the bill to read as follows:

 

     A bill to amend 1979 PA 94, entitled "An act to make appropriations to aid in the support of the public schools, the intermediate school districts, community colleges, and public universities of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts," by amending sections 3, 4, 6, 11, 11a, 11j, 11k, 11m, 11r, 15, 18, 19, 20, 20d, 20f, 20g, 21f, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25e, 25f, 25g, 26a, 26b, 26c, 31a, 31c, 31d, 31f, 31h, 32d, 32p, 35, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 55, 56, 61a, 61b, 62, 64b, 65, 67, 74, 81, 94, 94a, 98, 99h, 99s, 101, 102d, 104, 104b, 104c, 104d, 107, 147, 147a, 147c, 152a, 166, and 166b (MCL 388.1603, 388.1604, 388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611r, 388.1615, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1620f, 388.1620g, 388.1621f, 388.1622a, 388.1622b, 388.1622d,


 

388.1622g, 388.1623a, 388.1624, 388.1624a, 388.1624c, 388.1625e, 388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631c, 388.1631d, 388.1631f, 388.1631h, 388.1632d, 388.1632p, 388.1635, 388.1635a, 388.1639, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1655, 388.1656, 388.1661a, 388.1661b, 388.1662, 388.1664b, 388.1665, 388.1667, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1698, 388.1699h, 388.1699s, 388.1701, 388.1702d, 388.1704, 388.1704b, 388.1704c, 388.1704d, 388.1707, 388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1766, and 388.1766b), section 3 as amended by 2012 PA 201, sections 4, 6, 98, and 107 as amended by 2016 PA 56, sections 11, 21f, 31a, and 32d as amended by 2015 PA 139, sections 11a, 11j, 11k, 11m, 11r, 15, 20, 20d, 20f, 20g, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c, 25e, 25f, 26a, 26b, 26c, 31d, 31f, 32p, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 64b, 74, 81, 94, 94a, 99h, 101, 104, 104b, 104c, 147, 147a, 147c, and 152a as amended and sections 25g, 31c, 31h, 35, 35a, 55, 61b, 65, 67, 99s, 102d, and 104d as added by 2015 PA 85, section 18 as amended by 2015 PA 114, section 19 as amended by 2014 PA 196, section 166 as amended by 1996 PA 300, and section 166b as amended by 2015 PA 222, and by adding sections 11o, 11s, 20m, 21, 21g, 31b, 31j, 32q, 54b, 61c, 63, 99t, 152b, and 167a; and to repeal acts and parts of acts.

 

 

 

_______________________                 ________________________

Geoff Hansen                            Tim Kelly

 

_______________________                 ________________________

Dave Hildenbrand                        Phil Potvin

 

_______________________                 ________________________

Hoon-Yung Hopgood                       Sarah Roberts

 

Conferees for the Senate                Conferees for the House

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 796

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 3, 4, 6, 11, 11a, 11j, 11k, 11m, 11r, 15, 18,

 

19, 20, 20d, 20f, 20g, 21f, 22a, 22b, 22d, 22g, 23a, 24, 24a, 24c,

 

25e, 25f, 25g, 26a, 26b, 26c, 31a, 31c, 31d, 31f, 31h, 32d, 32p,

 

35, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 55, 56, 61a, 61b, 62,

 

64b, 65, 67, 74, 81, 94, 94a, 98, 99h, 99s, 101, 102d, 104, 104b,

 

104c, 104d, 107, 147, 147a, 147c, 152a, 166, and 166b (MCL

 

388.1603, 388.1604, 388.1606, 388.1611, 388.1611a, 388.1611j,

 

388.1611k, 388.1611m, 388.1611r, 388.1615, 388.1618, 388.1619,

 

388.1620, 388.1620d, 388.1620f, 388.1620g, 388.1621f, 388.1622a,

 

388.1622b, 388.1622d, 388.1622g, 388.1623a, 388.1624, 388.1624a,

 

388.1624c, 388.1625e, 388.1625f, 388.1625g, 388.1626a, 388.1626b,

 

388.1626c, 388.1631a, 388.1631c, 388.1631d, 388.1631f, 388.1631h,

 


388.1632d, 388.1632p, 388.1635, 388.1635a, 388.1639, 388.1639a,

 

388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654,

 

388.1655, 388.1656, 388.1661a, 388.1661b, 388.1662, 388.1664b,

 

388.1665, 388.1667, 388.1674, 388.1681, 388.1694, 388.1694a,

 

388.1698, 388.1699h, 388.1699s, 388.1701, 388.1702d, 388.1704,

 

388.1704b, 388.1704c, 388.1704d, 388.1707, 388.1747, 388.1747a,

 

388.1747c, 388.1752a, 388.1766, and 388.1766b), section 3 as

 

amended by 2012 PA 201, sections 4, 6, 98, and 107 as amended by

 

2016 PA 56, sections 11, 21f, 31a, and 32d as amended by 2015 PA

 

139, sections 11a, 11j, 11k, 11m, 11r, 15, 20, 20d, 20f, 20g, 22a,

 

22b, 22d, 22g, 23a, 24, 24a, 24c, 25e, 25f, 26a, 26b, 26c, 31d,

 

31f, 32p, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 64b,

 

74, 81, 94, 94a, 99h, 101, 104, 104b, 104c, 147, 147a, 147c, and

 

152a as amended and sections 25g, 31c, 31h, 35, 35a, 55, 61b, 65,

 

67, 99s, 102d, and 104d as added by 2015 PA 85, section 18 as

 

amended by 2015 PA 114, section 19 as amended by 2014 PA 196,

 

section 166 as amended by 1996 PA 300, and section 166b as amended

 

by 2015 PA 222, and by adding sections 11o, 11s, 20m, 21, 21g, 31b,

 

31j, 32q, 54b, 61c, 63, 99t, 152b, and 167a; and to repeal acts and

 

parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) "Achievement authority" means the education

 

achievement authority, the public body corporate and special

 

authority initially created under section 5 of article III and

 

section 28 of article VII of the state constitution of 1963 and the

 

urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512, by an interlocal agreement effective August 11, 2011,


between the school district of the city of Detroit and the board of

 

regents of eastern Michigan university, Eastern Michigan

 

University, a state public university.

 

     (2) "Achievement school" means a public school within the

 

education achievement system operated, managed, authorized,

 

established, or overseen by the achievement authority.

 

     (3) "Average daily attendance", for the purposes of complying

 

with federal law, means 92% of the pupils counted in membership on

 

the pupil membership count day, as defined in section 6(7).

 

     (4) "Board" means the governing body of a district or public

 

school academy.

 

     (5) "Center" means the center for educational performance and

 

information created in section 94a.

 

     (6) "Community district" means a school district organized

 

under part 5b of the revised school code.

 

     (7) (6) "Cooperative education program" means a written

 

voluntary agreement between and among districts to provide certain

 

educational programs for pupils in certain groups of districts. The

 

written agreement shall be approved by all affected districts at

 

least annually and shall specify the educational programs to be

 

provided and the estimated number of pupils from each district who

 

will participate in the educational programs.

 

     (8) (7) "Department", except in section 107, means the

 

department of education.

 

     (9) (8) "District" means a local school district established

 

under the revised school code or, except in sections 6(4), 6(6),

 

13, 20, 22a, 31a, 51a(14), 105, 105c, and 166b, a public school


academy. Except in sections 6(4), 6(6), 6(8), 13, 20, 22a, 31a,

 

105, 105c, and 166b, district also includes the education

 

achievement system. Except in section 20, district also includes a

 

community district.

 

     (10) (9) "District of residence", except as otherwise provided

 

in this subsection, means the district in which a pupil's custodial

 

parent or parents or legal guardian resides. For a pupil described

 

in section 24b, the pupil's district of residence is the district

 

in which the pupil enrolls under that section. For a pupil

 

described in section 6(4)(d), the pupil's district of residence

 

shall be considered to be the district or intermediate district in

 

which the pupil is counted in membership under that section. For a

 

pupil under court jurisdiction who is placed outside the district

 

in which the pupil's custodial parent or parents or legal guardian

 

resides, the pupil's district of residence shall be considered to

 

be the educating district or educating intermediate district.

 

     (11) (10) "District superintendent" means the superintendent

 

of a district, the chief administrator of a public school academy,

 

or the chancellor of the achievement authority.

 

     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.the

 

G.E.D. test developed by the GED Testing Service, the Test

 

Assessing Secondary Completion (TASC) developed by CTS/McGraw-Hill,

 

the HISET test developed by the Education Testing Service (ETS), or

 

another comparable test approved by the department of talent and

 

economic development.

 

     (7) "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 an

 

individual to successfully complete a high school equivalency test.

 

     (8) "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 in a

 

strict discipline academy operating under sections 1311b to 1311m

 

of the revised school code, MCL 380.1311b to 380.1311m. However,

 

for a district that is a community district in its first year of

 

operation, "membership" means 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 in the community district

 

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 of pupils in grades K to 12 actually

 

enrolled and in regular daily attendance in a qualifying school

 

district as defined in section 5 of the revised school code, MCL

 

380.5, for the immediately preceding school year. 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 a virtual

 

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 a virtual 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.

 

     (c) A special education pupil educated by the intermediate

 

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 with extreme barriers to education, such


as being homeless as defined under 42 USC 11302.

 

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

 

re-entered school.

 

     (C) Is less than 22 years of age as of September 1 of the

 

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 achieved a high school

 

diploma shall not be counted in membership. An individual who has

 

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, department of

 

talent and economic development, 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. 30 days after the end of the 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 a virtual 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.

 

     (gg) If a special education pupil is expelled under section

 

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

 

380.1311a, and is not in attendance on the pupil membership count

 

day because of the expulsion, and if the pupil remains enrolled in

 

the district and resumes regular daily attendance during that

 

school year, the district's membership shall be adjusted to count

 

the pupil in membership as if he or she had been in attendance on

 

the pupil membership count day.

 

     (hh) A pupil enrolled in a community district shall be counted

 

in membership in the community district.

 

     (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.

 

     (c) A pupil enrolled in a public school academy or the

 

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, or the every student succeeds act, Public

 

Law 114-95.

 

     However, except for pupils enrolled in the youth challenge

 

program at the site at which the youth challenge program operated

 

for 2015-2016, 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. 11. (1) For the fiscal year ending September 30, 2015,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,814,097,400.00 from the state school aid fund, the sum of

 

$18,000,000.00 from the MPSERS retirement obligation reform reserve

 

fund created under section 147b, and the sum of $33,700,000.00 from

 

the general fund. For the fiscal year ending September 30, 2016,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$12,078,985,100.00 $11,905,439,300.00 from the state school aid

 

fund and the sum of $45,900,000.00 $55,100,000.00 from the general

 

fund. For the fiscal year ending September 30, 2017, there is


appropriated for the public schools of this state and certain other

 

state purposes relating to education the sum of $12,052,309,300.00

 

from the state school aid fund, the sum of $218,900,000.00 from the

 

general fund, an amount not to exceed $72,000,000.00 from the

 

community district education trust fund created under section 12 of

 

the Michigan trust fund act, 2000 PA 489, MCL 12.262, and an amount

 

not to exceed $100.00 from the water emergency reserve fund. In

 

addition, all other available federal funds are appropriated each

 

fiscal year for the fiscal years ending September 30, 2015 2016 and

 

September 30, 2016.2017.

 

     (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. 11a. (1) The school aid stabilization fund is created as

 

a separate account within the state school aid fund established by

 

section 11 of article IX of the state constitution of 1963.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the school aid stabilization fund. The

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

for a fiscal year that remains in the state school aid fund as of


the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

     (c) Money appropriated to the school aid stabilization fund.

 

     (3) Money available in the school aid stabilization fund may

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

shall be expended only for purposes for which state school aid fund

 

money may be expended.

 

     (4) The state treasurer shall direct the investment of the

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

     (5) Money in the school aid stabilization fund at the close of

 

a fiscal year shall remain in the school aid stabilization fund and

 

shall not lapse to the unreserved school aid fund balance or the

 

general fund.

 

     (6) If the maximum amount appropriated under section 11 from

 

the state school aid fund for a fiscal year exceeds the amount

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 

stabilization fund to the state school aid fund an amount equal to

 

the projected shortfall as determined by the department of

 

treasury, but not to exceed available money in the school aid

 

stabilization fund. If the money in the school aid stabilization

 

fund is insufficient to fully fund an amount equal to the projected

 

shortfall, the state budget director shall notify the legislature


as required under section 296(2) and state payments in an amount

 

equal to the remainder of the projected shortfall shall be prorated

 

in the manner provided under section 296(3).

 

     (7) For 2015-2016, 2016-2017, in addition to the

 

appropriations in section 11, there is appropriated from the school

 

aid stabilization fund to the state school aid fund the amount

 

necessary to fully fund the allocations under this article.

 

     Sec. 11j. From the appropriation in section 11, there is

 

allocated an amount not to exceed $126,500,000.00 $10,500,000.00

 

for 2015-2016 and there is allocated an amount not to exceed

 

$126,500,000.00 for 2016-2017 for payments to the school loan bond

 

redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 296

 

or any other provision of this act, funds allocated under this

 

section are not subject to proration and shall be paid in full.

 

     Sec. 11k. For 2015-2016, 2016-2017, there is appropriated from

 

the general fund to the school loan revolving fund an amount equal

 

to the amount of school bond loans assigned to the Michigan finance

 

authority, not to exceed the total amount of school bond loans held

 

in reserve as long-term assets. As used in this section, "school

 

loan revolving fund" means that fund created in section 16c of the

 

shared credit rating act, 1985 PA 227, MCL 141.1066c.

 

     Sec. 11m. From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $0.00 and there is

 

allocated for 2015-2016 an amount not to exceed $2,000,000.00

 

$1,000,000.00 and there is allocated for 2016-2017 an amount not to

 

exceed $3,000,000.00 for fiscal year cash-flow borrowing costs


solely related to the state school aid fund established by section

 

11 of article IX of the state constitution of 1963.

 

     Sec. 11o. (1) From the general fund appropriation in section

 

11, there is allocated $9,200,000.00 for 2015-2016 to an

 

intermediate district for the purpose of providing state early

 

childhood services described in this section to children who reside

 

within the boundaries of a constituent district with the majority

 

of its territory located within the boundaries of a city for which

 

an executive proclamation of emergency is issued during the fiscal

 

year under the emergency management act, 1976 PA 390, MCL 30.401 to

 

30.421.

 

     (2) From the allocation under subsection (1), there is

 

allocated an amount not to exceed $8,300,000.00 for state early

 

intervention services provided to children less than 5 years of age

 

as of September 1, 2015. The intermediate district shall use the

 

funds to provide state early intervention services that are similar

 

to the services described in the early on Michigan state plan, as

 

approved by the department.

 

     (3) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $650,000.00 to provide summer great start

 

readiness programs and related services, as approved by the

 

department.

 

     (4) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $250,000.00 to a constituent district

 

described in subsection (1) that has an agreement with a

 

postsecondary institution to provide summer early childhood

 

programs similar to great start readiness programs, as approved by


the department.

 

     (5) The funds allocated under this section are a work project

 

appropriation, and any unexpended funds for 2015-2016 are carried

 

forward into 2016-2017. The purpose of the work project is to

 

provide early childhood services described in this section. The

 

estimated completion date of the work project is September 30,

 

2018.

 

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

 

allocated for 2014-2015 an amount not to exceed $4,000,000.00 to be

 

deposited into the distressed districts emergency grant fund

 

created under this section for the purpose of funding grants under

 

this section.

 

     (2) The distressed districts emergency grant fund is created

 

as a separate account within the state school aid fund. The state

 

treasurer may receive money or other assets from any source for

 

deposit into the distressed districts emergency grant fund. The

 

state treasurer shall direct the investment of the distressed

 

districts emergency grant fund and shall credit to the distressed

 

districts emergency grant fund interest and earnings from the fund.

 

     (3) Subject to subsection (4), and except as otherwise

 

provided under subsection (8), a district is eligible to receive a

 

grant from the distressed districts emergency grant fund if either

 

of the following applies:

 

     (a) The district has adopted a resolution authorizing the

 

voluntary dissolution of the district approved by the state

 

treasurer under section 12 of the revised school code, MCL 380.12,

 

but the dissolution has not yet taken effect under that section.


     (b) The district is a receiving district under section 12 of

 

the revised school code, MCL 380.12, and the district enrolls

 

pupils who were previously enrolled in a district that was

 

dissolved under section 12 of the revised school code, MCL 380.12,

 

in the immediately preceding school year.

 

     (4) A district receiving funds under section 20g is not

 

eligible to receive funds under this section.

 

     (5) The amount of a grant under this section shall be

 

determined by the state treasurer after consultation with the

 

superintendent of public instruction, but shall not exceed the

 

estimated amount of remaining district costs in excess of available

 

revenues, including, but not limited to, payroll, benefits,

 

retirement system contributions, pupil transportation, food

 

services, special education, building security, and other costs

 

necessary to allow the district to operate schools directly and

 

provide public education services until the end of the current

 

school fiscal year. For a district that meets the eligibility

 

criteria under subsection (3)(b), the amount of the grant shall be

 

determined in the same manner as transition costs under section

 

20g.

 

     (6) Before disbursing funds under this section, the state

 

treasurer shall notify the house and senate appropriations

 

subcommittees on school aid and the house and senate fiscal

 

agencies. The notification shall include, but not be limited to,

 

the district receiving funds under this section, the amount of the

 

funds awarded under this section, an explanation of the district

 

conditions that necessitate funding under this section, and the


intended use of funds disbursed under this section.

 

     (7) Money Except as otherwise provided in subsection (8),

 

money in the distressed districts emergency grant fund at the close

 

of a fiscal year shall remain in the distressed districts emergency

 

grant fund and shall not lapse to the state school aid fund or to

 

the general fund.

 

     (8) For 2014-2015 only, for a district that is a strict

 

discipline academy established under sections 1311b to 1311m of the

 

revised school code, MCL 380.1311b to 380.1311m, that serves at

 

least 340 pupils as reported on the line labeled "State Aid

 

Membership" in the May 2015 state aid financial status report, and

 

that services a program that provided pupil accounting information

 

to the department for the October 2013 data collection on the

 

department form entitled "ANNUAL SURVEY OF CHILDREN IN LOCAL

 

INSTITUTIONS FOR NEGLECTED OR DELINQUENT CHILDREN OR IN

 

CORRECTIONAL INSTITUTIONS (Title I of P.L. 107-110)", but for which

 

the information was not correctly compiled by the department, the

 

department shall award a grant to that district under this

 

subsection from the funding allocated under subsection (1) to

 

compensate the district for the loss in federal funding that

 

occurred as a result of the department's incorrect compilation. The

 

amount of the grant under this subsection for this purpose shall be

 

$178,000.00 for the amount lost for the 2014-2015 school year.

 

     (8) For 2015-2016 only, an amount not to exceed $2,800,000.00

 

shall be lapsed from the distressed districts emergency grant fund

 

to the state school aid fund.

 

     Sec. 11s. (1) From the general fund appropriation in section


11, there is allocated $10,142,500.00 for 2016-2017 for the purpose

 

of providing services and programs to children who reside within

 

the boundaries of a district with the majority of its territory

 

located within the boundaries of a city for which an executive

 

proclamation of emergency is issued in the current or immediately

 

preceding fiscal year under the emergency management act, 1976 PA

 

390, MCL 30.401 to 30.421. From the funding appropriated in section

 

11, there is allocated $100.00 from the water emergency reserve

 

fund for the purposes of this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

to a district with the majority of its territory located within the

 

boundaries of a city in which an executive proclamation of

 

emergency is issued in the current or immediately preceding fiscal

 

year and that has at least 5,000 pupils in membership for the

 

current fiscal year, an amount not to exceed $1,292,500.00 for the

 

purpose of employing school nurses and school social workers. The

 

district shall provide a report to the department in a form,

 

manner, and frequency approved by the department. The department

 

shall provide a copy of that report to the governor, the house and

 

senate school aid subcommittees, the house and senate fiscal

 

agencies, and the state budget director within 5 days after

 

receipt. The report shall provide at least the following

 

information:

 

     (a) How many personnel were hired using the funds allocated

 

under this subsection.

 

     (b) A description of the services provided to pupils by those

 

personnel.


     (c) How many pupils received each type of service identified

 

in subdivision (b).

 

     (d) Any other information the department considers necessary

 

to ensure that the children described in subsection (1) received

 

appropriate levels and types of services.

 

     (3) From the allocation in subsection (1), there is allocated

 

to an intermediate district that has a constituent district

 

described in subsection (2) an amount not to exceed $1,195,000.00

 

to augment staff for the purpose of providing additional early

 

childhood services and for nutritional services to children

 

described in subsection (1), regardless of location of school of

 

attendance. The early childhood services to be provided under this

 

subsection are state early intervention services as described in

 

subsection (4) and early literacy services. In addition, funds

 

allocated under this subsection may also be expended to provide

 

informational resources to parents, educators, and the community,

 

and to coordinate services with other local agencies. The

 

intermediate district shall provide a report to the department in a

 

form, manner, and frequency approved by the department. The

 

department shall provide a copy of that report to the governor, the

 

house and senate school aid subcommittees, the house and senate

 

fiscal agencies, and the state budget director within 5 days after

 

receipt. The report shall provide at least the following

 

information:

 

     (a) How many personnel were hired using the funds appropriated

 

in this subsection.

 

     (b) A description of the services provided to children by


those personnel.

 

     (c) What types of additional nutritional services were

 

provided.

 

     (d) How many children received each type of service identified

 

in subdivisions (b) and (c).

 

     (e) What types of informational resources and coordination

 

efforts were provided.

 

     (f) Any other information the department considers necessary

 

to ensure that the children described in subsection (1) received

 

appropriate levels and types of services.

 

     (4) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $6,155,000.00 to intermediate districts

 

described in subsection (3) to provide state early intervention

 

services for children described in subsection (1) who are less than

 

4 years of age as of September 1, 2016. The intermediate district

 

shall use these funds to provide state early intervention services

 

that are similar to the services described in the early on Michigan

 

state plan, including ensuring that all children described in

 

subsection (1) who are less than 4 years of age as of September 1,

 

2016 are assessed and evaluated at least twice annually.

 

     (5) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $1,500,000.00 to intermediate districts

 

described in subsection (3) to enroll children described in

 

subsection (1) in school-day great start readiness programs,

 

regardless of household income eligibility requirements contained

 

in section 39. The department shall administer this funding

 

consistent with all other provisions of the great start readiness


programs contained in section 32d and section 39.

 

     (6) In addition to other funding allocated and appropriated in

 

this section, there is appropriated an amount not to exceed

 

$15,000,000.00 for 2016-2017 for state restricted contingency

 

funds. These contingency funds are not available for expenditure

 

until they have been transferred to a section within this article

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     Sec. 15. (1) If a district or intermediate district fails to

 

receive its proper apportionment, the department, upon satisfactory

 

proof that the district or intermediate district was entitled

 

justly, shall apportion the deficiency in the next apportionment.

 

Subject to subsections (2) and (3), if a district or intermediate

 

district has received more than its proper apportionment, the

 

department, upon satisfactory proof, shall deduct the excess in the

 

next apportionment. Notwithstanding any other provision in this

 

article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education

 

transportation, may be recovered from any payment made under this

 

article other than a special education or special education

 

transportation payment, from the proceeds of a loan to the district

 

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

 

141.942, or from the proceeds of millage levied or pledged under

 

section 1211 of the revised school code, MCL 380.1211. State aid

 

overpayments made in special education or special education

 

transportation payments may be recovered from subsequent special

 

education or special education transportation payments, from the


proceeds of a loan to the district under the emergency municipal

 

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

 

of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211.

 

     (2) If the result of an audit conducted by or for the

 

department affects the current fiscal year membership, affected

 

payments shall be adjusted in the current fiscal year. A deduction

 

due to an adjustment made as a result of an audit conducted by or

 

for the department, or as a result of information obtained by the

 

department from the district, an intermediate district, the

 

department of treasury, or the office of auditor general, shall be

 

deducted from the district's apportionments when the adjustment is

 

finalized. At the request of the district and upon the district

 

presenting evidence satisfactory to the department of the hardship,

 

the department may grant up to an additional 4 years for the

 

adjustment and may advance payments to the district otherwise

 

authorized under this article if the district would otherwise

 

experience a significant hardship in satisfying its financial

 

obligations. For a district that is a strict discipline academy

 

established under sections 1311b to 1311m of the revised school

 

code, MCL 380.1311b to 380.1311m, and that claimed a hardship in

 

2014-2015 because of an overpayment caused by a miscalculation of

 

its pupil membership for 2013-2014, the department shall consider

 

the amount of repayment made by the district as of the effective

 

date of the amendatory act that added this sentence to constitute

 

full repayment and the district is not required to continue making

 

repayment for the overpayment that occurred in 2013-2014.


     (3) If, based on an audit by the department or the

 

department's designee or because of new or updated information

 

received by the department, the department determines that the

 

amount paid to a district or intermediate district under this

 

article for the current fiscal year or a prior fiscal year was

 

incorrect, the department shall make the appropriate deduction or

 

payment in the district's or intermediate district's allocation in

 

the next apportionment after the adjustment is finalized. The

 

deduction or payment shall be calculated according to the law in

 

effect in the fiscal year in which the incorrect amount was paid.

 

If the district does not receive an allocation for the fiscal year

 

or if the allocation is not sufficient to pay the amount of any

 

deduction, the amount of any deduction otherwise applicable shall

 

be satisfied from the proceeds of a loan to the district under the

 

emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942,

 

or from the proceeds of millage levied or pledged under section

 

1211 of the revised school code, MCL 380.1211, as determined by the

 

department.

 

     (4) The department may conduct audits, or may direct audits by

 

designee of the department, for the current fiscal year and the

 

immediately preceding 3 fiscal years of all records related to a

 

program for which a district or intermediate district has received

 

funds under this article.

 

     (5) Expenditures made by the department under this article

 

that are caused by the write-off of prior year accruals may be

 

funded by revenue from the write-off of prior year accruals.

 

     (6) In addition to funds appropriated in section 11 for all


programs and services, there is appropriated for 2014-2015 and for

 

2015-2016 2016-2017 for obligations in excess of applicable

 

appropriations an amount equal to the collection of overpayments,

 

but not to exceed amounts available from overpayments.

 

     Sec. 18. (1) Except as provided in another section of this

 

article, each district or other entity shall apply the money

 

received by the district or entity under this article to salaries

 

and other compensation of teachers and other employees, tuition,

 

transportation, lighting, heating, ventilation, water service, the

 

purchase of textbooks, other supplies, and any other school

 

operating expenditures defined in section 7. However, not more than

 

20% of the total amount received by a district under sections 22a

 

and 22b or received by an intermediate district under section 81

 

may be transferred by the board to either the capital projects fund

 

or to the debt retirement fund for debt service. The money shall

 

not be applied or taken for a purpose other than as provided in

 

this section. The department shall determine the reasonableness of

 

expenditures and may withhold from a recipient of funds under this

 

article the apportionment otherwise due upon a violation by the

 

recipient.

 

     (2) A district or intermediate district shall adopt an annual

 

budget in a manner that complies with the uniform budgeting and

 

accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days

 

after a district board adopts its annual operating budget for the

 

following school fiscal year, or after a district board adopts a

 

subsequent revision to that budget, the district shall make all of

 

the following available through a link on its website homepage, or


may make the information available through a link on its

 

intermediate district's website homepage, in a form and manner

 

prescribed by the department:

 

     (a) The annual operating budget and subsequent budget

 

revisions.

 

     (b) Using data that have already been collected and submitted

 

to the department, a summary of district expenditures for the most

 

recent fiscal year for which they are available, expressed in the

 

following 2 pie charts:

 

     (i) A chart of personnel expenditures, broken into the

 

following subcategories:

 

     (A) Salaries and wages.

 

     (B) Employee benefit costs, including, but not limited to,

 

medical, dental, vision, life, disability, and long-term care

 

benefits.

 

     (C) Retirement benefit costs.

 

     (D) All other personnel costs.

 

     (ii) A chart of all district expenditures, broken into the

 

following subcategories:

 

     (A) Instruction.

 

     (B) Support services.

 

     (C) Business and administration.

 

     (D) Operations and maintenance.

 

     (c) Links to all of the following:

 

     (i) The current collective bargaining agreement for each

 

bargaining unit.

 

     (ii) Each health care benefits plan, including, but not


limited to, medical, dental, vision, disability, long-term care, or

 

any other type of benefits that would constitute health care

 

services, offered to any bargaining unit or employee in the

 

district.

 

     (iii) The audit report of the audit conducted under subsection

 

(4) for the most recent fiscal year for which it is available.

 

     (iv) The bids required under section 5 of the public employees

 

health benefits act, 2007 PA 106, MCL 124.75.

 

     (v) The district's written policy governing procurement of

 

supplies, materials, and equipment.

 

     (vi) The district's written policy establishing specific

 

categories of reimbursable expenses, as described in section

 

1254(2) of the revised school code, MCL 380.1254.

 

     (vii) Either the district's accounts payable check register

 

for the most recent school fiscal year or a statement of the total

 

amount of expenses incurred by board members or employees of the

 

district that were reimbursed by the district for the most recent

 

school fiscal year.

 

     (d) The total salary and a description and cost of each fringe

 

benefit included in the compensation package for the superintendent

 

of the district and for each employee of the district whose salary

 

exceeds $100,000.00.

 

     (e) The annual amount spent on dues paid to associations.

 

     (f) The annual amount spent on lobbying or lobbying services.

 

As used in this subdivision, "lobbying" means that term as defined

 

in section 5 of 1978 PA 472, MCL 4.415.

 

     (g) Any deficit elimination plan or enhanced deficit


elimination plan the district was required to submit under the

 

revised school code.

 

     (h) Identification of all credit cards maintained by the

 

district as district credit cards, the identity of all individuals

 

authorized to use each of those credit cards, the credit limit on

 

each credit card, and the dollar limit, if any, for each

 

individual's authorized use of the credit card.

 

     (i) Costs incurred for each instance of out-of-state travel by

 

the school administrator of the district that is fully or partially

 

paid for by the district and the details of each of those instances

 

of out-of-state travel, including at least identification of each

 

individual on the trip, destination, and purpose.

 

     (3) For the information required under subsection (2)(a),

 

(2)(b)(i), and (2)(c), an intermediate district shall provide the

 

same information in the same manner as required for a district

 

under subsection (2).

 

     (4) For the purposes of determining the reasonableness of

 

expenditures, whether a district or intermediate district has

 

received the proper amount of funds under this article, and whether

 

a violation of this article has occurred, all of the following

 

apply:

 

     (a) The department shall require that each district and

 

intermediate district have an audit of the district's or

 

intermediate district's financial and pupil accounting records

 

conducted at least annually, and at such other times as determined

 

by the department, at the expense of the district or intermediate

 

district, as applicable. The audits must be performed by a


certified public accountant or by the intermediate district

 

superintendent, as may be required by the department, or in the

 

case of a district of the first class by a certified public

 

accountant, the intermediate superintendent, or the auditor general

 

of the city. A district or intermediate district shall retain these

 

records for the current fiscal year and from at least the 3

 

immediately preceding fiscal years.

 

     (b) If a district operates in a single building with fewer

 

than 700 full-time equated pupils, if the district has stable

 

membership, and if the error rate of the immediately preceding 2

 

pupil accounting field audits of the district is less than 2%, the

 

district may have a pupil accounting field audit conducted

 

biennially but must continue to have desk audits for each pupil

 

count. The auditor must document compliance with the audit cycle in

 

the pupil auditing manual. As used in this subdivision, "stable

 

membership" means that the district's membership for the current

 

fiscal year varies from the district's membership for the

 

immediately preceding fiscal year by less than 5%.

 

     (c) A district's or intermediate district's annual financial

 

audit shall include an analysis of the financial and pupil

 

accounting data used as the basis for distribution of state school

 

aid.

 

     (d) The pupil and financial accounting records and reports,

 

audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 

published by the department.

 

     (e) All of the following shall be done not later than November


1 each year for reporting the prior fiscal year data:

 

     (i) A district shall file the annual financial audit reports

 

with the intermediate district and the department.

 

     (ii) The intermediate district shall file the annual financial

 

audit reports for the intermediate district with the department.

 

     (iii) The intermediate district shall enter the pupil

 

membership audit reports for its constituent districts and for the

 

intermediate district, for the pupil membership count day and

 

supplemental count day, in the Michigan student data system.

 

     (f) The annual financial audit reports and pupil accounting

 

procedures reports shall be available to the public in compliance

 

with the freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (g) Not later than January 31 of each year, the department

 

shall notify the state budget director and the legislative

 

appropriations subcommittees responsible for review of the school

 

aid budget of districts and intermediate districts that have not

 

filed an annual financial audit and pupil accounting procedures

 

report required under this section for the school year ending in

 

the immediately preceding fiscal year.

 

     (5) By November 1 each fiscal year, each district and

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

 

consistent with the district's or intermediate district's audited

 

financial statements and consistent with accounting manuals and

 

charts of accounts approved and published by the department. For an

 

intermediate district, the report shall also contain the website


address where the department can access the report required under

 

section 620 of the revised school code, MCL 380.620. The department

 

shall ensure that the prescribed Michigan public school accounting

 

manual chart of accounts includes standard conventions to

 

distinguish expenditures by allowable fund function and object. The

 

functions shall include at minimum categories for instruction,

 

pupil support, instructional staff support, general administration,

 

school administration, business administration, transportation,

 

facilities operation and maintenance, facilities acquisition, and

 

debt service; and shall include object classifications of salary,

 

benefits, including categories for active employee health

 

expenditures, purchased services, supplies, capital outlay, and

 

other. Districts shall report the required level of detail

 

consistent with the manual as part of the comprehensive annual

 

financial report.

 

     (6) By September 30 of each year, each district and

 

intermediate district shall file with the department the special

 

education actual cost report, known as "SE-4096", on a form and in

 

the manner prescribed by the department.

 

     (7) By October 7 of each year, each district and intermediate

 

district shall file with the center the transportation expenditure

 

report, known as "SE-4094", on a form and in the manner prescribed

 

by the center.

 

     (8) The department shall review its pupil accounting and pupil

 

auditing manuals at least annually and shall periodically update

 

those manuals to reflect changes in this article.

 

     (9) If a district that is a public school academy purchases


property using money received under this article, the public school

 

academy shall retain ownership of the property unless the public

 

school academy sells the property at fair market value.

 

     (10) If a district or intermediate district does not comply

 

with subsections (4), (5), (6), and (7), or if the department

 

determines that the financial data required under subsection (5)

 

are not consistent with audited financial statements, the

 

department shall withhold all state school aid due to the district

 

or intermediate district under this article, beginning with the

 

next payment due to the district or intermediate district, until

 

the district or intermediate district complies with subsections

 

(4), (5), (6), and (7). If the district or intermediate district

 

does not comply with subsections (4), (5), (6), and (7) by the end

 

of the fiscal year, the district or intermediate district forfeits

 

the amount withheld.

 

     (11) If a district or intermediate district does not comply

 

with subsection (2), the department may withhold up to 10% of the

 

total state school aid due to the district or intermediate district

 

under this article, beginning with the next payment due to the

 

district or intermediate district, until the district or

 

intermediate district complies with subsection (2). If the district

 

or intermediate district does not comply with subsection (2) by the

 

end of the fiscal year, the district or intermediate district

 

forfeits the amount withheld.

 

     (12) Not later than November 1, 2015, 2016, if a district or

 

intermediate district offers online virtual learning under section

 

21f, the district or intermediate district shall submit to the


department a report that details the per-pupil costs of operating

 

the online virtual learning by vendor type. The report shall

 

include at least all of the following information concerning the

 

operation of online virtual learning for the school fiscal year

 

ending June 30, 2015:2016:

 

     (a) The name of the district operating the online virtual

 

learning and of each district that enrolled students in the online

 

virtual learning.

 

     (b) The total number of students enrolled in the online

 

virtual learning and the total number of membership pupils enrolled

 

in the online virtual learning.

 

     (c) For each pupil who is enrolled in a district other than

 

the district offering online virtual learning, the name of that

 

district.

 

     (d) The district in which the pupil was enrolled before

 

enrolling in the district offering online virtual learning.

 

     (e) The number of participating students who had previously

 

dropped out of school.

 

     (f) The number of participating students who had previously

 

been expelled from school.

 

     (g) The total cost to enroll a student in the program. This

 

cost shall be reported on a per-pupil, per-course, per-semester or

 

trimester basis by vendor type. The total shall include costs

 

broken down by cost for content development, content licensing,

 

training, online virtual instruction and instructional support,

 

personnel, hardware and software, payment to each online virtual

 

learning provider, and other costs associated with operating online


virtual learning.

 

     (h) The name of each online virtual education provider

 

contracted by the district and the state in which each online

 

virtual education provider is headquartered.

 

     (13) Not later than March 31, 2016, 2017, the department 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 report summarizing the per-pupil costs by

 

vendor type of online virtual courses available under section 21f.

 

     (14) As used in subsections (12) and (13), "vendor type" means

 

the following:

 

     (a) Online Virtual courses provided by the Michigan Virtual

 

University.

 

     (b) Online Virtual courses provided by a school of excellence

 

that is a cyber school, as defined in section 551 of the revised

 

school code, MCL 380.551.

 

     (c) Online Virtual courses provided by third party vendors not

 

affiliated with a Michigan public school.

 

     (d) Online Virtual courses created and offered by a district

 

or intermediate district.

 

     (15) An allocation to a district or another entity under this

 

article is contingent upon the district's or entity's compliance

 

with this section.

 

     Sec. 19. (1) A district or intermediate district shall comply

 

with all applicable reporting requirements specified in state and

 

federal law. Data provided to the center, in a form and manner

 

prescribed by the center, shall be aggregated and disaggregated as


required by state and federal law. In addition, a district or

 

intermediate district shall cooperate with all measures taken by

 

the center to establish and maintain a statewide P-20 longitudinal

 

data system.

 

     (2) Each district shall furnish to the center not later than 5

 

weeks after the pupil membership count day and by June 30 of the

 

school fiscal year ending in the fiscal year, in a manner

 

prescribed by the center, the information necessary for the

 

preparation of the district and high school graduation report. This

 

information shall meet requirements established in the pupil

 

auditing manual approved and published by the department. The

 

center shall calculate an annual graduation and pupil dropout rate

 

for each high school, each district, and this state, in compliance

 

with nationally recognized standards for these calculations. The

 

center shall report all graduation and dropout rates to the senate

 

and house education committees and appropriations committees, the

 

state budget director, and the department not later than 30 days

 

after the publication of the list described in subsection (6).

 

     (3) By the first business day in December and by June 30 of

 

each year, a district shall furnish to the center, in a manner

 

prescribed by the center, information related to educational

 

personnel as necessary for reporting required by state and federal

 

law.

 

     (4) By June 30 of each year, a district shall furnish to the

 

center, in a manner prescribed by the center, information related

 

to safety practices and criminal incidents as necessary for

 

reporting required by state and federal law.


     (5) If a district or intermediate district fails to meet the

 

requirements of this section, the department shall withhold 5% of

 

the total funds for which the district or intermediate district

 

qualifies under this article until the district or intermediate

 

district complies with all of those subsections. If the district or

 

intermediate district does not comply with all of those subsections

 

by the end of the fiscal year, the department shall place the

 

amount withheld in an escrow account until the district or

 

intermediate district complies with all of those subsections.

 

     (6) Before publishing a list of school or district

 

accountability designations as required by the no child left behind

 

act of 2001, Public Law 107-110, or the every student succeeds act,

 

Public Law 114-95, the department shall allow a school or district

 

to appeal that determination. The department shall consider and act

 

upon the appeal within 30 days after it is submitted and shall not

 

publish the list until after all appeals have been considered and

 

decided.

 

     (7) It is the intent of the legislature to implement not later

 

than Beginning in 2016-2017, the department shall implement

 

statewide standard reporting requirements for education data

 

approved by the department in conjunction with the center. The

 

department shall work with the center, intermediate districts,

 

districts, and other interested stakeholders to develop

 

recommendations on the implementation of implement this policy

 

change. A district or intermediate district shall implement the

 

statewide standard reporting requirements not later than 2014-2015

 

2017-2018 or when a district or intermediate district updates its


education data reporting system, whichever is later.

 

     Sec. 20. (1) For 2015-2016, 2016-2017, both of the following

 

apply:

 

     (a) The basic foundation allowance is $8,169.00.$8,229.00.

 

     (b) The minimum foundation allowance is $7,391.00.$7,511.00.

 

     (2) The amount of each district's foundation allowance shall

 

be calculated as provided in this section, using a basic foundation

 

allowance in the amount specified in subsection (1).

 

     (3) Except as otherwise provided in this section, the amount

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

     (a) Except as otherwise provided in this subdivision, for a

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was equal to the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year, but less than the basic foundation allowance for the

 

immediately preceding state fiscal year, the district shall receive

 

a foundation allowance in an amount equal to the sum of the

 

district's foundation allowance for the immediately preceding state

 

fiscal year plus the difference between twice the dollar amount of

 

the adjustment from the immediately preceding state fiscal year to

 

the current state fiscal year made in the basic foundation

 

allowance and [(the difference between the basic foundation

 

allowance for the current state fiscal year and basic foundation

 

allowance for the immediately preceding state fiscal year minus

 

$23.00) $20.00) times (the difference between the district's


foundation allowance for the immediately preceding state fiscal

 

year and the minimum foundation allowance for the immediately

 

preceding state fiscal year) divided by the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year]. However, the foundation allowance for a

 

district that had less than the basic foundation allowance for the

 

immediately preceding state fiscal year shall not exceed the basic

 

foundation allowance for the current state fiscal year. For the

 

purposes of this subdivision, for 2015-2016, the minimum foundation

 

allowance for the immediately preceding state fiscal year shall be

 

considered to be $7,251.00.

 

     (b) Except as otherwise provided in this subsection, for a

 

district that in the immediately preceding state fiscal year had a

 

foundation allowance in an amount equal to the amount of the basic

 

foundation allowance for the immediately preceding state fiscal

 

year, the district shall receive a foundation allowance for 2015-

 

2016 2016-2017 in an amount equal to the basic foundation allowance

 

for 2015-2016.2016-2017.

 

     (c) For a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was greater than the

 

basic foundation allowance for the immediately preceding state

 

fiscal year, the district's foundation allowance is an amount equal

 

to the sum of the district's foundation allowance for the

 

immediately preceding state fiscal year plus the lesser of the

 

increase in the basic foundation allowance for the current state

 

fiscal year, as compared to the immediately preceding state fiscal


year, or the product of the district's foundation allowance for the

 

immediately preceding state fiscal year times the percentage

 

increase in the United States consumer price index in the calendar

 

year ending in the immediately preceding fiscal year as reported by

 

the May revenue estimating conference conducted under section 367b

 

of the management and budget act, 1984 PA 431, MCL 18.1367b.

 

     (d) For a district that has a foundation allowance that is not

 

a whole dollar amount, the district's foundation allowance shall be

 

rounded up to the nearest whole dollar.

 

     (e) For a district that received a payment under section 22c

 

as that section was in effect for 2014-2015, the district's 2014-

 

2015 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2014-2015

 

foundation allowance as otherwise calculated under this section

 

plus the per-pupil amount of the district's equity payment for

 

2014-2015 under section 22c as that section was in effect for 2014-

 

2015.

 

     (4) Except as otherwise provided in this subsection, the state

 

portion of a district's foundation allowance is an amount equal to

 

the district's foundation allowance or the basic foundation

 

allowance for the current state fiscal year, whichever is less,

 

minus the local portion of the district's foundation allowance

 

divided by the district's membership excluding special education

 

pupils. For a district described in subsection (3)(c), the state

 

portion of the district's foundation allowance is an amount equal

 

to $6,962.00 plus the difference between the district's foundation

 

allowance for the current state fiscal year and the district's


foundation allowance for 1998-99, minus the local portion of the

 

district's foundation allowance divided by the district's

 

membership excluding special education pupils. For a district that

 

has a millage reduction required under section 31 of article IX of

 

the state constitution of 1963, the state portion of the district's

 

foundation allowance shall be calculated as if that reduction did

 

not occur. For a receiving district, if school operating taxes

 

continue to be levied on behalf of a dissolved district that has

 

been attached in whole or in part to the receiving district to

 

satisfy debt obligations of the dissolved district under section 12

 

of the revised school code, MCL 380.12, the taxable value per

 

membership pupil of property in the receiving district used for the

 

purposes of this subsection does not include the taxable value of

 

property within the geographic area of the dissolved district. For

 

a community district, if school operating taxes continue to be

 

levied by a qualifying school district under section 12b of the

 

revised school code, MCL 380.12b, with the same geographic area as

 

the community district, the taxable value per membership pupil of

 

property in the community district to be used for the purposes of

 

this subsection does not include the taxable value of property

 

within the geographic area of the community district.

 

     (5) The allocation calculated under this section for a pupil

 

shall be based on the foundation allowance of the pupil's district

 

of residence. For a pupil enrolled pursuant to section 105 or 105c

 

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

 

allocation calculated under this section shall be based on the

 

lesser of the foundation allowance of the pupil's district of


residence or the foundation allowance of the educating district.

 

For a pupil in membership in a K-5, K-6, or K-8 district who is

 

enrolled in another district in a grade not offered by the pupil's

 

district of residence, the allocation calculated under this section

 

shall be based on the foundation allowance of the educating

 

district if the educating district's foundation allowance is

 

greater than the foundation allowance of the pupil's district of

 

residence. The calculation under this subsection shall take into

 

account a district's per-pupil allocation under section 20m.

 

     (6) Except as otherwise provided in this subsection, for

 

pupils in membership, other than special education pupils, in a

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

whichever is less. For pupils in membership, other than special

 

education pupils, in a public school academy that is a cyber school

 

and is authorized by a school district, the allocation calculated

 

under this section is an amount per membership pupil other than

 

special education pupils in the public school academy equal to the

 

foundation allowance of the district that authorized the public

 

school academy or the state maximum public school academy

 

allocation, whichever is less. However, a public school academy

 

that had an allocation under this subsection before 2009-2010 that

 

was equal to the sum of the local school operating revenue per

 

membership pupil other than special education pupils for the


district in which the public school academy is located and the

 

state portion of that district's foundation allowance shall not

 

have that allocation reduced as a result of the 2010 amendment to

 

this subsection. Notwithstanding section 101, for a public school

 

academy that begins operations after the pupil membership count

 

day, the amount per membership pupil calculated under this

 

subsection shall be adjusted by multiplying that amount per

 

membership pupil by the number of hours of pupil instruction

 

provided by the public school academy after it begins operations,

 

as determined by the department, divided by the minimum number of

 

hours of pupil instruction required under section 101(3). The

 

result of this calculation shall not exceed the amount per

 

membership pupil otherwise calculated under this subsection.

 

     (7) Except as otherwise provided in this subsection, for

 

pupils attending an achievement school and in membership in the

 

education achievement system, other than special education pupils,

 

the allocation calculated under this section is an amount per

 

membership pupil other than special education pupils equal to the

 

foundation allowance of the district in which the achievement

 

school is located, not to exceed the basic foundation allowance.

 

Notwithstanding section 101, for an achievement school that begins

 

operation after the pupil membership count day, the amount per

 

membership pupil calculated under this subsection shall be adjusted

 

by multiplying that amount per membership pupil by the number of

 

hours of pupil instruction provided by the achievement school after

 

it begins operations, as determined by the department, divided by

 

the minimum number of hours of pupil instruction required under


section 101(3). The result of this calculation shall not exceed the

 

amount per membership pupil otherwise calculated under this

 

subsection. For the purposes of this subsection, if a public school

 

is transferred from a district to the state school reform/redesign

 

district or the achievement authority under section 1280c of the

 

revised school code, MCL 380.1280c, that public school is

 

considered to be an achievement school within the education

 

achievement system and not a school that is part of a district, and

 

a pupil attending that public school is considered to be in

 

membership in the education achievement system and not in

 

membership in the district that operated the school before the

 

transfer.

 

     (8) Except as otherwise provided in this subsection, for

 

pupils in membership, other than special education pupils, in a

 

community district, the allocation calculated under this section is

 

an amount per membership pupil other than special education pupils

 

in the community district equal to the foundation allowance of the

 

qualifying school district, as described in section 12b of the

 

revised school code, MCL 380.12b, that is located within the same

 

geographic area as the community district.

 

     (9) (8) Subject to subsection (4), for a district that is

 

formed or reconfigured after June 1, 2002 by consolidation of 2 or

 

more districts or by annexation, the resulting district's

 

foundation allowance under this section beginning after the

 

effective date of the consolidation or annexation shall be the

 

lesser of the sum of the average of the foundation allowances of

 

each of the original or affected districts, calculated as provided


in this section, weighted as to the percentage of pupils in total

 

membership in the resulting district who reside in the geographic

 

area of each of the original or affected districts plus $100.00 or

 

the highest foundation allowance among the original or affected

 

districts. This subsection does not apply to a receiving district

 

unless there is a subsequent consolidation or annexation that

 

affects the district. The calculation under this subsection shall

 

take into account a district's per-pupil allocation under section

 

20m.

 

     (10) (9) Each fraction used in making calculations under this

 

section shall be rounded to the fourth decimal place and the dollar

 

amount of an increase in the basic foundation allowance shall be

 

rounded to the nearest whole dollar.

 

     (11) (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

     (12) (11) To assist the legislature in determining the basic

 

foundation allowance for the subsequent state fiscal year, each

 

revenue estimating conference conducted under section 367b of the

 

management and budget act, 1984 PA 431, MCL 18.1367b, shall

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

     (a) The pupil membership factor shall be computed by dividing

 

the estimated membership in the school year ending in the current

 

state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district


membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

later than 7 days after the conclusion of the revenue conference.

 

     (b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

year, adjusted for any change in the rate or base of a tax the

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

the rate or base of a tax the proceeds of which are deposited in

 

that fund. If a consensus revenue factor is not determined at the

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

later than 7 days after the conclusion of the revenue conference.

 

     (c) The index shall be calculated by multiplying the pupil

 

membership factor by the revenue adjustment factor. If a consensus

 

index is not determined at the revenue estimating conference, the

 

principals of the revenue estimating conference shall report their


estimates to the house and senate subcommittees responsible for

 

school aid appropriations not later than 7 days after the

 

conclusion of the revenue conference.

 

     (13) (12) Payments to districts, public school academies, or

 

the education achievement system shall not be made under this

 

section. Rather, the calculations under this section shall be used

 

to determine the amount of state payments under section 22b.

 

     (14) (13) If an amendment to section 2 of article VIII of the

 

state constitution of 1963 allowing state aid to some or all

 

nonpublic schools is approved by the voters of this state, each

 

foundation allowance or per-pupil payment calculation under this

 

section may be reduced.

 

     (15) (14) As used in this section:

 

     (a) "Certified mills" means the lesser of 18 mills or the

 

number of mills of school operating taxes levied by the district in

 

1993-94.

 

     (b) "Combined state and local revenue" means the aggregate of

 

the district's state school aid received by or paid on behalf of

 

the district under this section and the district's local school

 

operating revenue.

 

     (c) "Combined state and local revenue per membership pupil"

 

means the district's combined state and local revenue divided by

 

the district's membership excluding special education pupils.

 

     (d) "Current state fiscal year" means the state fiscal year

 

for which a particular calculation is made.

 

     (e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other


districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

     (f) "Immediately preceding state fiscal year" means the state

 

fiscal year immediately preceding the current state fiscal year.

 

     (g) "Local portion of the district's foundation allowance"

 

means an amount that is equal to the difference between (the sum of

 

the product of the taxable value per membership pupil of all

 

property in the district that is nonexempt property times the

 

district's certified mills and, for a district with certified mills

 

exceeding 12, the product of the taxable value per membership pupil

 

of property in the district that is commercial personal property

 

times the certified mills minus 12 mills) and (the quotient of the

 

product of the captured assessed valuation under tax increment

 

financing acts times the district's certified mills divided by the

 

district's membership excluding special education pupils).

 

     (h) "Local school operating revenue" means school operating

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211. For a receiving district, if school operating taxes are

 

to be levied on behalf of a dissolved district that has been

 

attached in whole or in part to the receiving district to satisfy

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, local school operating revenue

 

does not include school operating taxes levied within the

 

geographic area of the dissolved district.

 

     (i) "Local school operating revenue per membership pupil"

 

means a district's local school operating revenue divided by the

 

district's membership excluding special education pupils.


     (j) "Maximum public school academy allocation", except as

 

otherwise provided in this subdivision, means the maximum per-pupil

 

allocation as calculated by adding the highest per-pupil allocation

 

among all public school academies for the immediately preceding

 

state fiscal year plus the difference between twice the amount of

 

the difference between the basic foundation allowance for the

 

current state fiscal year and the basic foundation allowance for

 

the immediately preceding state fiscal year and [(the amount of the

 

difference between the basic foundation allowance for the current

 

state fiscal year and the basic foundation allowance for the

 

immediately preceding state fiscal year minus $23.00) $20.00) times

 

(the difference between the highest per-pupil allocation among all

 

public school academies for the immediately preceding state fiscal

 

year and the minimum foundation allowance for the immediately

 

preceding state fiscal year) divided by the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the minimum foundation allowance for the immediately preceding

 

state fiscal year]. For the purposes of this subdivision, for 2015-

 

2016, 2016-2017, the maximum public school academy allocation is

 

$7,391.00.$7,511.00.

 

     (k) "Membership" means the definition of that term under

 

section 6 as in effect for the particular fiscal year for which a

 

particular calculation is made.

 

     (l) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a


public school academy.

 

     (m) "Principal residence", "qualified agricultural property",

 

"qualified forest property", "supportive housing property",

 

"industrial personal property", and "commercial personal property"

 

mean those terms as defined in section 1211 of the revised school

 

code, MCL 380.1211.

 

     (n) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

     (o) "School operating purposes" means the purposes included in

 

the operation costs of the district as prescribed in sections 7 and

 

18 and purposes authorized under section 1211 of the revised school

 

code, MCL 380.1211.

 

     (p) "School operating taxes" means local ad valorem property

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211, and retained for school operating purposes.

 

     (q) "Tax increment financing acts" means 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, the local development financing

 

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

     (r) "Taxable value per membership pupil" means taxable value,

 

as certified by the county treasurer and reported to the

 

department, for the calendar year ending in the current state

 

fiscal year divided by the district's membership excluding special


education pupils for the school year ending in the current state

 

fiscal year.

 

     Sec. 20d. In making the final determination required under

 

former section 20a of a district's combined state and local revenue

 

per membership pupil in 1993-94 and in making calculations under

 

section 20 for 2015-2016, 2016-2017, the department and the

 

department of treasury shall comply with all of the following:

 

     (a) For a district that had combined state and local revenue

 

per membership pupil in the 1994-95 state fiscal year of $6,500.00

 

or more and served as a fiscal agent for a state board designated

 

area vocational education center in the 1993-94 school year, total

 

state school aid received by or paid on behalf of the district

 

pursuant to this act in 1993-94 shall exclude payments made under

 

former section 146 and under section 147 on behalf of the

 

district's employees who provided direct services to the area

 

vocational education center. Not later than June 30, 1996, the

 

department shall make an adjustment under this subdivision to the

 

district's combined state and local revenue per membership pupil in

 

the 1994-95 state fiscal year and the department of treasury shall

 

make a final certification of the number of mills that may be

 

levied by the district under section 1211 of the revised school

 

code, MCL 380.1211, as a result of the adjustment under this

 

subdivision.

 

     (b) If a district had an adjustment made to its 1993-94 total

 

state school aid that excluded payments made under former section

 

146 and under section 147 on behalf of the district's employees who

 

provided direct services for intermediate district center programs


operated by the district under article 5, if nonresident pupils

 

attending the center programs were included in the district's

 

membership for purposes of calculating the combined state and local

 

revenue per membership pupil for 1993-94, and if there is a signed

 

agreement by all constituent districts of the intermediate district

 

that an adjustment under this subdivision shall be made, the

 

foundation allowances for 1995-96 and 1996-97 of all districts that

 

had pupils attending the intermediate district center program

 

operated by the district that had the adjustment shall be

 

calculated as if their combined state and local revenue per

 

membership pupil for 1993-94 included resident pupils attending the

 

center program and excluded nonresident pupils attending the center

 

program.

 

     Sec. 20f. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $18,000,000.00 for 2015-2016

 

2016-2017 for payments to eligible districts under this section.

 

     (2) The funding under this subsection is from the allocation

 

under subsection (1). A district is eligible for funding under this

 

subsection if the district received a payment under this section as

 

it was in effect for 2013-2014. A district was eligible for funding

 

in 2013-2014 if the sum of the following was less than $5.00:

 

     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2012-2013 to

 

2013-2014.

 

     (b) The district's equity payment per membership pupil under

 

section 22c for 2013-2014.

 

     (c) The quotient of the district's allocation under section


147a for 2012-2013 divided by the district's membership pupils for

 

2012-2013 minus the quotient of the district's allocation under

 

section 147a for 2013-2014 divided by the district's membership

 

pupils for 2013-2014.

 

     (3) The amount allocated to each eligible district under

 

subsection (2) is an amount per membership pupil equal to the

 

amount per membership pupil the district received under this

 

section in 2013-2014.

 

     (4) The funding under this subsection is from the allocation

 

under subsection (1). A district is eligible for funding under this

 

subsection for 2015-2016 2016-2017 if the sum of the following is

 

less than $25.00:

 

     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under section 22j from 2014-2015 to 2015-2016.

 

     (d) The quotient of the district's allocation under section

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (5) The amount allocated to each eligible district under

 

subsection (4) is an amount per membership pupil equal to $25.00

 

minus the sum of the following:


     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under section 22j from 2014-2015 to 2015-2016.

 

     (d) The quotient of the district's allocation under section

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (6) If the allocation under subsection (1) is insufficient to

 

fully fund payments under subsections (3) and (5) as otherwise

 

calculated under this section, the department shall prorate

 

payments under this section on an equal per-pupil basis.

 

     Sec. 20g. (1) From the money appropriated under section 11,

 

there is allocated an amount not to exceed $2,200,000.00 for 2015-

 

2016 $1,200,000.00 each fiscal year for 2015-2016 and for 2016-2017

 

for grants to eligible districts that first received payments under

 

this section in 2013-2014 for transition costs related to the

 

enrollment of pupils who were previously enrolled in a district

 

that was dissolved under section 12 of the revised school code, MCL

 

380.12, allocated as provided under subsection (3). Payments under

 

this section shall continue for a total of 4 fiscal years following

 

the dissolution of a district, after which the payments shall

 

cease.


     (2) A receiving school district, as that term is defined in

 

section 12 of the revised school code, MCL 380.12, is an eligible

 

district under this section.

 

     (3) The amount allocated to each eligible district under this

 

section is an amount equal to the product of the number of

 

membership pupils enrolled in the eligible district who were

 

previously enrolled in the dissolved school district in the school

 

year immediately preceding the dissolution, or who reside in the

 

geographic area of the dissolved school district and are entering

 

kindergarten, times 10.0% of the lesser of the foundation allowance

 

of the eligible district as calculated under section 20 or the

 

basic foundation allowance under section 20(1).

 

     (4) It is the intent of the legislature that an amount not to

 

exceed $660,000.00 be lapsed from the $2,500,000.00 that was

 

available for a qualifying intermediate district under this section

 

as it was in effect for the 2013-2014 fiscal year. In addition to

 

the money allocated under subsection (1), from the funds

 

appropriated in section 11, there is allocated for 2016-2017 an

 

amount not to exceed $660,000.00 to a qualifying intermediate

 

district for paying outstanding debt of a dissolved school

 

district. For purposes of this subsection, an intermediate district

 

is a qualifying intermediate district if it is required to perform

 

the functions and satisfy the responsibilities of a dissolved

 

school district under section 12(3) of the revised school code, MCL

 

380.12, if the authorization for that dissolved school district to

 

levy mills for school operating purposes under section 1211 of the

 

revised school code, MCL 380.1211, was not renewed after the school


district was dissolved, and if the intermediate district is located

 

in a county with a population of less than 250,000.

 

     (5) (4) As used in this section, "dissolved school district"

 

means a school district that has been declared dissolved under

 

section 12 of the revised school code, 1976 PA 451, MCL 380.12.

 

     Sec. 20m. (1) Foundation allowance supplemental payments for

 

2016-2017 to districts that in the 2015-2016 fiscal year had a

 

foundation allowance greater than $8,169.00 shall be calculated

 

under this section.

 

     (2) The per-pupil allocation to each district under this

 

section shall be the difference between the dollar amount of the

 

adjustment from the immediately preceding state fiscal year to the

 

current state fiscal year in the basic foundation allowance minus

 

the dollar amount of the adjustment from the immediately preceding

 

fiscal year to the current state fiscal year in a qualifying

 

district's foundation allowance.

 

     (3) If a district's local revenue per pupil does not exceed

 

the sum of its foundation allowance under section 20 plus the per-

 

pupil allocation under subsection (2), the total payment to the

 

district calculated under this section shall be the product of the

 

per-pupil allocation under subsection (2) multiplied by the

 

district's membership excluding special education pupils. If a

 

district's local revenue per pupil exceeds the foundation allowance

 

under section 20 but does not exceed the sum of the foundation

 

allowance under section 20 plus the per-pupil allocation under

 

subsection (2), the total payment to the district calculated under

 

this section shall be the product of the difference between the sum


of the foundation allowance under section 20 plus the per-pupil

 

allocation under subsection (2) minus the local revenue per pupil

 

multiplied by the district's membership excluding special education

 

pupils. If a district's local revenue per pupil exceeds the sum of

 

the foundation allowance under section 20 plus the per-pupil

 

allocation under subsection (2), there is no payment calculated

 

under this section for the district.

 

     (4) Payments to districts shall not be made under this

 

section. Rather, the calculations under this section shall be made

 

and used to determine the amount of state payments under section

 

22b.

 

     Sec. 21. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $5,000,000.00 for 2016-2017 to

 

make supplemental payments to eligible districts that are

 

identified under section 1280c of the revised school code, MCL

 

380.1280c, as being among the lowest achieving 5% of all public

 

schools in this state.

 

     (2) A district is eligible to receive the supplemental

 

payments calculated under this section for 3 consecutive fiscal

 

years if all of the following conditions are met:

 

     (a) The state school reform/redesign officer has appointed a

 

chief executive officer to take control of 1 or more public schools

 

in the district, as provided for in section 1280c(7) of the revised

 

school code, MCL 380.1280c, and there is at least 1 high school

 

operated by the district.

 

     (b) As determined by the school reform office, an intervention

 

agreement meeting at least the following criteria has been executed


by the state school reform/redesign officer and the district. The

 

intervention agreement shall include, but is not limited to:

 

     (i) The rights and responsibilities of the chief executive

 

officer. However, the intervention agreement shall not mitigate the

 

authority of the chief executive officer prescribed in applicable

 

statute including financial and employment authority.

 

     (ii) The allocation of supplemental payments under this

 

section.

 

     (iii) The compensation for the chief executive officer.

 

     (iv) The role of the district's board and officers during the

 

intervention term.

 

     (v) Termination and renewal rights of the school reform

 

office.

 

     (vi) Liability provisions for the chief executive officer.

 

     (vii) A dispute resolution process.

 

     (viii) The length of the term of the agreement.

 

     (ix) Other provisions as determined by the school reform

 

office for successful implementation of the chief executive officer

 

intervention.

 

     (c) The district has not entered into and is not currently

 

operating under a local government option under the local financial

 

stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575, or

 

a successor act.

 

     (3) The state school reform/redesign officer, at least

 

annually, shall appear in person before the house and senate

 

appropriations subcommittees responsible for school aid to provide

 

an update on the yearly progress of schools under the control of a


chief executive officer. In addition, the state school

 

reform/redesign officer shall provide a quarterly report concerning

 

the chief executive officer's use of funds to increase pupil

 

achievement.

 

     (4) The supplemental payment provided to a district under this

 

section shall be calculated by multiplying the district's

 

foundation allowance by 20% of the high school's membership for the

 

prior fiscal year. The same dollar amount shall continue to be

 

available to the district for a maximum of 3 years, subject to the

 

conditions specified in subsection (2).

 

     (5) From the allocation in subsection (1), in addition to the

 

supplemental payments calculated under subsection (4), there is

 

allocated an amount sufficient to pay for the appointment of chief

 

executive officers by the state school reform/redesign officer, as

 

provided for in section 1280c(7) of the revised school code, MCL

 

380.1280c.

 

     (6) For the purposes of this section, a high school is a

 

school that operates exclusively all of grades 9 to 12.

 

     Sec. 21f. (1) A pupil enrolled in a district in any of grades

 

6 to 12 is eligible to enroll in an online course as provided for

 

in this section. A primary district shall enroll an eligible pupil

 

in virtual courses in accordance with the provisions of this

 

section. A primary district shall not offer a virtual course to an

 

eligible pupil unless the virtual course is published in the

 

primary district's catalog of board-approved courses or in the

 

statewide catalog of virtual courses maintained by the Michigan

 

Virtual University pursuant to section 98. The primary district


shall also provide on its publicly accessible website a link to the

 

statewide catalog of virtual courses maintained by the Michigan

 

Virtual University. Unless the pupil is at least age 18 or is an

 

emancipated minor, a pupil shall not be enrolled in a virtual

 

course without the consent of the pupil's parent or legal guardian.

 

     (2) With the consent of the pupil's parent or legal guardian,

 

a Subject to subsection (3), a primary district shall enroll an

 

eligible pupil in up to 2 online virtual courses as requested by

 

the pupil during an academic term, semester, or trimester. Unless

 

the pupil is newly enrolled in the pupil's primary district, the

 

request for online course enrollment must be made in the academic

 

term, semester, trimester, or summer preceding the enrollment. A

 

district may not establish additional requirements that would

 

prohibit a pupil from taking an online course. If a pupil has

 

demonstrated previous success with online courses and the school

 

leadership and the pupil's parent or legal guardian determine that

 

it is in the best interest of the pupil, a pupil may be enrolled in

 

more than 2 online courses in a specific academic term, semester,

 

or trimester. Consent of the pupil's parent or legal guardian is

 

not required if the pupil is at least age 18 or is an emancipated

 

minor.

 

     (3) An eligible pupil may enroll in an online course published

 

in the pupil's primary district's catalog of online courses

 

described in subsection (7)(a) or the statewide catalog of online

 

courses maintained by the Michigan Virtual University pursuant to

 

section 98.

 

     (3) A pupil may be enrolled in more than 2 virtual courses in


a specific academic term, semester, or trimester if all of the

 

following conditions are met:

 

     (a) The primary district has determined that it is in the best

 

interest of the pupil.

 

     (b) The pupil agrees with the recommendation of the primary

 

district.

 

     (c) The primary district, in collaboration with the pupil, has

 

developed an education development plan, in a form and manner

 

specified by the department, that is kept on file by the district.

 

     (4) A providing district or community college shall determine

 

whether or not it has capacity to accept applications for

 

enrollment from nonresident applicants in online courses and may

 

use that limit as the reason for refusal to enroll an applicant. If

 

the number of nonresident applicants eligible for acceptance in an

 

online a virtual course does not exceed the capacity of the

 

providing district or community college provider to provide the

 

online virtual course, the providing district or community college

 

provider shall accept for enrollment all of the nonresident

 

applicants eligible for acceptance. If the number of nonresident

 

applicants exceeds the providing district's or community college's

 

provider's capacity to provide the online virtual course, the

 

providing district or community college provider shall use a random

 

draw system, subject to the need to abide by state and federal

 

antidiscrimination laws and court orders. A primary district that

 

is also a provider shall determine whether or not it has the

 

capacity to accept applications for enrollment from nonresident

 

applicants in virtual courses and may use that limit as the reason


for refusal to enroll a nonresident applicant.

 

     (5) A primary district may not establish additional

 

requirements beyond those specified in this subsection that would

 

prohibit a pupil from taking a virtual course. A pupil's primary

 

district may deny the pupil enrollment in an online course if any

 

of the following apply, as determined by the district:

 

     (a) The pupil is enrolled in any of grades K to 5.

 

     (b) (a) The pupil has previously gained the credits that would

 

be provided from the completion of the online virtual course.

 

     (c) (b) The online virtual course is not capable of generating

 

academic credit.

 

     (d) (c) The online virtual course is inconsistent with the

 

remaining graduation requirements or career interests of the pupil.

 

     (d) The pupil does not possess the prerequisite knowledge and

 

skills to be successful in the online course or has demonstrated

 

failure in previous online coursework in the same subject.

 

     (e) The pupil has not completed the prerequisite coursework

 

for the requested virtual course or has not demonstrated

 

proficiency in the prerequisite course content.

 

     (f) The pupil has failed a previous virtual course in the same

 

subject during the 2 most recent academic years.

 

     (g) (e) The online virtual course is of insufficient quality

 

or rigor. A primary district that denies a pupil enrollment request

 

for this reason shall make a reasonable effort to assist the pupil

 

to find an alternative course enroll the pupil in a virtual course

 

in the same or a similar subject that the primary district

 

determines is of acceptable rigor and quality.


     (h) (f) The cost of the online virtual course exceeds the

 

amount identified in subsection (10), (9), unless the pupil or the

 

pupil's parent or legal guardian agrees to pay the cost that

 

exceeds this amount.

 

     (i) (g) The online course enrollment request does for a

 

virtual course enrollment did not occur within the same timelines

 

established by the primary district for enrollment and schedule

 

changes for regular courses.

 

     (j) The request for a virtual course enrollment was not made

 

in the academic term, semester, trimester, or summer preceding the

 

enrollment. This subdivision does not apply to a request made by a

 

pupil who is newly enrolled in the primary district.

 

     (6) If a pupil is denied enrollment in an online a virtual

 

course by the pupil's primary district, the primary district shall

 

provide written notification to the pupil of the denial, the reason

 

or reasons for the denial pursuant to subsection (5), and a

 

description of the appeal process. The pupil may appeal the denial

 

by submitting a letter to the superintendent of the intermediate

 

district in which the pupil's primary district is located. The

 

letter of appeal shall include the reason provided by the primary

 

district for not enrolling the pupil and the reason why the pupil

 

is claiming that the enrollment should be approved. The

 

intermediate district superintendent or designee shall respond to

 

the appeal within 5 days after it is received. If the intermediate

 

district superintendent or designee determines that the denial of

 

enrollment does not meet 1 or more of the reasons specified in

 

subsection (5), the primary district shall allow enroll the pupil


to enroll in the online virtual course.

 

     (7) To provide an online a virtual course to an eligible pupil

 

under this section, the providing district or intermediate district

 

a provider shall do all of the following:

 

     (a) Provide the Michigan Virtual University with the course

 

syllabus in a form and method prescribed by the Michigan Virtual

 

University for inclusion in a statewide online course catalog. The

 

district or intermediate district shall also provide on its

 

publicly accessible website a link to the course syllabi for all of

 

the online courses offered by the district or intermediate district

 

and a link to the statewide catalog of online courses maintained by

 

the Michigan Virtual University. Ensure that the virtual course has

 

been published in the pupil's primary district's catalog of board-

 

approved courses or published in the statewide catalog of virtual

 

courses maintained by the Michigan Virtual University.

 

     (b) Assign to each pupil a teacher of record and provide the

 

primary district with the personal personnel identification code

 

assigned by the center for the teacher of record. If the provider

 

is a community college, the virtual course must be taught by an

 

instructor employed by or contracted through the providing

 

community college.

 

     (c) Offer the online virtual course on an open entry and exit

 

method, or aligned to a semester, trimester, or accelerated

 

academic term format.

 

     (d) If the virtual course is offered to eligible pupils in

 

more than 1 district, the following additional requirements must

 

also be met:


     (i) Provide the Michigan Virtual University with a course

 

syllabus that meets the definition under subsection (14)(g) in a

 

form and manner prescribed by the Michigan Virtual University for

 

inclusion in a statewide catalog of virtual courses.

 

     (ii) (d) Not later than October 1 , 2015, of each fiscal year,

 

provide the Michigan Virtual University with the number of

 

enrollments in each online an aggregated count of enrollments for

 

each virtual course the district or intermediate district provided

 

provider delivered to pupils pursuant to this section in during the

 

immediately preceding school year, and the number of enrollments in

 

which the pupil earned 60% or more of the total course points for

 

each online virtual course.

 

     (8) To provide an online course under this section, a

 

community college shall do all of the following:

 

     (a) Provide the Michigan Virtual University with the course

 

syllabus in a form and method prescribed by the Michigan Virtual

 

University for inclusion in a statewide online course catalog.

 

     (b) Offer the online course on an open entry and exit method,

 

or aligned to a semester, trimester, or accelerated academic term

 

format.

 

     (c) Ensure ensure that each online course it provides under

 

this section generates postsecondary credit.

 

     (d) Beginning with October 1, 2016, and by October 1 of each

 

year thereafter, provide the Michigan Virtual University with the

 

number of enrollments in each online course the community college

 

provided to pupils pursuant to this section in the immediately

 

preceding school year, and the number of enrollments in which the


pupil earned 60% or more of the total course points for each online

 

course.

 

     (e) Be taught by an instructor employed by or contracted

 

through the community college.

 

     (9) For any online virtual course a pupil enrolls in under

 

this section, the pupil's primary district must assign to the pupil

 

a mentor to monitor the pupil's progress during the online course

 

and shall supply the providing district provider with the mentor's

 

contact information.

 

     (10) For a pupil enrolled in 1 or more online virtual courses,

 

published in the pupil's primary district's catalog of online

 

courses under subsection (7) or in the statewide catalog of online

 

courses maintained by the Michigan Virtual University, the primary

 

district shall use foundation allowance or per-pupil funds

 

calculated under section 20 to pay for the expenses associated with

 

the online virtual course or courses. A primary district is not

 

required to pay toward the cost of an online a virtual course an

 

amount that exceeds 6.67% of the minimum foundation allowance for

 

the current fiscal year as calculated under section 20.

 

     (11) An online A virtual learning pupil shall have the same

 

rights and access to technology in his or her primary district's

 

school facilities as all other pupils enrolled in the pupil's

 

primary district. The department shall establish standards for

 

hardware, software, and internet access for pupils who are enrolled

 

in more than 2 virtual courses in an academic term, semester, or

 

trimester taken at a location other than a school facility.

 

     (12) If a pupil successfully completes an online a virtual


course, as determined by the pupil's primary district, the pupil's

 

primary district shall grant appropriate academic credit for

 

completion of the course and shall count that credit toward

 

completion of graduation and subject area requirements. A pupil's

 

school record and transcript shall identify the online virtual

 

course title as it appears in the online virtual course syllabus.

 

     (13) The enrollment of a pupil in 1 or more online virtual

 

courses shall not result in a pupil being counted as more than 1.0

 

full-time equivalent pupils under this article. The minimum

 

requirements to count the pupil in membership are those established

 

by the pupil accounting manual as it was in effect for the 2015-

 

2016 school year or as subsequently amended by the department if

 

the department notifies the legislature about the proposed

 

amendment at least 60 days before the amendment becomes effective.

 

     (14) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under this

 

section shall not be transferred under the pupil transfer process

 

under section 25e.

 

     (14) (15) As used in this section:

 

     (a) "Instructor" means an individual who is employed by or

 

contracted through a community college.

 

     (b) (a) "Mentor" means a professional employee of the primary

 

district who monitors the pupil's progress, ensures the pupil has

 

access to needed technology, is available for assistance, and

 

ensures access to the teacher of record. A mentor may also serve as

 

the teacher of record if the primary district is the provider for

 

the virtual course and the mentor meets the requirements under


subdivision (g).(e).

 

     (b) "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, if

 

the course is provided by a district or intermediate district, in

 

which a teacher who holds a valid Michigan teaching certificate

 

that qualifies the teacher to teach the course 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.

 

     (c) "Online course syllabus" means a document that includes

 

all of the following:

 

     (i) The state academic standards addressed in an online

 

course.

 

     (ii) The online course content outline.

 

     (iii) The online course required assessments.

 

     (iv) The online course prerequisites.

 

     (v) Expectations for actual instructor contact time with the

 

online learning pupil and other pupil-to-instructor communications.

 

     (vi) Academic support available to the online learning pupil.

 

     (vii) The online course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing

 

the online content.

 

     (ix) The name of the institution or organization providing the

 

online instructor.


     (x) The course titles assigned by the district or intermediate

 

district and the course titles and course codes from the National

 

Center for Education Statistics (NCES) school codes for the

 

exchange of data (SCED).

 

     (xi) The number of eligible nonresident pupils that will be

 

accepted by the district or intermediate district in the online

 

course.

 

     (xii) The results of the online course quality review using

 

the guidelines and model review process published by the Michigan

 

Virtual University.

 

     (d) "Online learning pupil" means a pupil enrolled in 1 or

 

more online courses.

 

     (c) (e) "Primary district" means the district that enrolls the

 

pupil and reports the pupil as a full-time equated pupil for pupil

 

membership purposes.

 

     (d) (f) "Providing district" "Provider" means the district,

 

intermediate district, or community college that the primary

 

district pays to provide the online virtual course or the Michigan

 

Virtual University if it is providing the virtual course.

 

     (e) (g) "Teacher of record" means a teacher who holds a valid

 

Michigan teaching certificate; who, if applicable, is endorsed in

 

the subject area and grade of the online course; and is responsible

 

for providing instruction, determining 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. meets

 

all of the following:


     (i) Holds a valid Michigan teaching certificate or a teaching

 

permit recognized by the department.

 

     (ii) If applicable, is endorsed in the subject area and grade

 

of the virtual course.

 

     (iii) Is responsible for providing instruction, determining

 

instructional methods for each pupil, diagnosing learning needs,

 

assessing pupil learning, prescribing intervention strategies and

 

modifying lessons, reporting outcomes, and evaluating the effects

 

of instruction and support strategies.

 

     (iv) Has a personnel identification code provided by the

 

center.

 

     (v) If the provider is a community college, is an instructor

 

employed by or contracted through the providing community college.

 

     (f) "Virtual course" means a course of study that is capable

 

of generating a credit or a grade and that is provided in an

 

interactive learning environment where the majority of the

 

curriculum is delivered using the Internet and in which pupils may

 

be separated from their instructor or teacher of record by time or

 

location, or both.

 

     (g) "Virtual course syllabus" means a document that includes

 

all of the following:

 

     (i) An alignment document detailing how the course meets

 

applicable state standards or, if the state does not have state

 

standards, nationally recognized standards.

 

     (ii) The virtual course content outline.

 

     (iii) The virtual course required assessments.

 

     (iv) The virtual course prerequisites.


     (v) Expectations for actual instructor or teacher of record

 

contact time with the virtual learning pupil and other

 

communications between a pupil and the instructor or teacher of

 

record.

 

     (vi) Academic support available to the virtual learning pupil.

 

     (vii) The virtual course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing

 

the virtual content.

 

     (ix) The name of the institution or organization providing the

 

instructor or teacher of record.

 

     (x) The course titles assigned by the provider and the course

 

titles and course codes from the National Center for Education

 

Statistics (NCES) school codes for the exchange of data (SCED).

 

     (xi) The number of eligible pupils that will be accepted by

 

the provider in the virtual course. A primary district that is also

 

the provider may limit the enrollment to those pupils enrolled in

 

the primary district.

 

     (xii) The results of the virtual course quality review using

 

the guidelines and model review process published by the Michigan

 

Virtual University.

 

     (h) "Virtual learning pupil" means a pupil enrolled in 1 or

 

more virtual courses.

 

     Sec. 21g. (1) From the general fund appropriation in section

 

11, there is allocated an amount not to exceed $500,000.00 for

 

2016-2017 for a grant to a public-private partnership, led by the

 

Michigan Center of Innovation in Education, a Michigan-based

 

nonprofit organization that is exempt from federal taxes under


section 501(c)(3) of the internal revenue code, 26 USC 501(c)(3),

 

in partnership with the Michigan Association of Intermediate School

 

Administrators, and in coordination with the department and the

 

center, to develop and pilot a competency-based transcript and

 

marketplace to provide enhanced choice to pupils and parents for

 

the completion of the requirements for a high school diploma under

 

the Michigan merit standard under sections 1278a and 1278b of the

 

revised school code, MCL 380.1278a and 380.1278b.

 

     (2) The partnership under subsection (1) shall do all of the

 

following:

 

     (a) Establish an articulation framework for Michigan academic,

 

technical, and global competencies of prekindergarten through high

 

school diploma requirements, including providing for career and

 

technical and dual enrollment opportunities.

 

     (b) Establish assessment criteria for measuring these

 

competencies and awarding universally recognized credentials,

 

micro-credentials, credits, and micro-credits for demonstrated

 

competencies independent of state-administered assessments.

 

     (c) Identify a means of accrediting education service

 

providers as competency-based credentialing organizations to

 

facilitate any-time, any-pace, any-way, any-place learning such

 

that credentials, micro-credentials, credits, and micro-credits can

 

be earned inside and outside traditional classroom settings.

 

     (d) Develop and pilot a pupil-owned transcript that satisfies

 

postsecondary institution requirements for admission and allows

 

pupils to accumulate credentials, micro-credentials, credits, and

 

micro-credits required for high school graduation, postsecondary


matriculation, and early career success.

 

     (e) Establish and pilot a marketplace of accredited education

 

service providers to provide enhanced choice for pupils and parents

 

when selecting credentials, micro-credentials, credits, and micro-

 

credits needed to satisfy Michigan high school diploma

 

requirements, including career and technical and dual enrollment

 

opportunities.

 

     (3) Accredited education service providers shall include, but

 

are not limited to, the following:

 

     (a) Districts and public career and technical programs.

 

     (b) Preschool, after-school, and other qualifying programs.

 

     (c) Museums, historical societies, science centers, and other

 

community education organizations.

 

     (d) Business and civic organizations and other institutions

 

providing internship and apprenticeship opportunities.

 

     (e) Community colleges, trade schools, and universities

 

offering dual enrollment opportunities.

 

     (4) The transcript and marketplace shall do all of the

 

following:

 

     (a) Use Michigan-specific academic standards when defining

 

academic competencies.

 

     (b) Use industry standards for the competency assessment.

 

     (c) Use industry standards for articulating and transcripting

 

of credentials, micro-credentials, credits, and micro-credits.

 

     (d) Offer its services at no cost to pupils or parents.

 

     (5) Not more than 50% of the funds awarded to a grantee under

 

this section shall be initially distributed to the grantee. To


receive the remaining distribution of funds, the grantee shall

 

provide to the department a progress report on the development and

 

piloting of the competency-based transcript and marketplace

 

described in this section, and the department shall only release

 

the remaining funds if, upon review of this progress report, the

 

department determines that sufficient progress has been made by the

 

grantee.

 

     (6) Upon completion of the pilot described in this section,

 

the grantee shall provide a report to the house and senate

 

appropriations subcommittees on school aid detailing the project's

 

expenditures, pupils served, successes and challenges, and

 

feasibility for expanding the project statewide.

 

     Sec. 22a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $5,377,000,000.00 for 2014-2015

 

and an amount not to exceed $5,281,700,000.00 $5,260,000,000.00 for

 

2015-2016 and an amount not to exceed $5,205,000,000.00 for 2016-

 

2017 for payments to districts and qualifying public school

 

academies to guarantee each district and qualifying public school

 

academy an amount equal to its 1994-95 total state and local per

 

pupil revenue for school operating purposes under section 11 of

 

article IX of the state constitution of 1963. Pursuant to section

 

11 of article IX of the state constitution of 1963, this guarantee

 

does not apply to a district in a year in which the district levies

 

a millage rate for school district operating purposes less than it

 

levied in 1994. However, subsection (2) applies to calculating the

 

payments under this section. Funds allocated under this section

 

that are not expended in the state fiscal year for which they were


allocated, as determined by the department, may be used to

 

supplement the allocations under sections 22b and 51c in order to

 

fully fund those calculated allocations for the same fiscal year.

 

     (2) To ensure that a district receives an amount equal to the

 

district's 1994-95 total state and local per pupil revenue for

 

school operating purposes, there is allocated to each district a

 

state portion of the district's 1994-95 foundation allowance in an

 

amount calculated as follows:

 

     (a) Except as otherwise provided in this subsection, the state

 

portion of a district's 1994-95 foundation allowance is an amount

 

equal to the district's 1994-95 foundation allowance or $6,500.00,

 

whichever is less, minus the difference between the sum of the

 

product of the taxable value per membership pupil of all property

 

in the district that is nonexempt property times the district's

 

certified mills and, for a district with certified mills exceeding

 

12, the product of the taxable value per membership pupil of

 

property in the district that is commercial personal property times

 

the certified mills minus 12 mills and the quotient of the ad

 

valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership. For

 

a district that has a millage reduction required under section 31

 

of article IX of the state constitution of 1963, the state portion

 

of the district's foundation allowance shall be calculated as if

 

that reduction did not occur. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district


under section 12 of the revised school code, MCL 380.12, taxable

 

value per membership pupil of all property in the receiving

 

district that is nonexempt property and taxable value per

 

membership pupil of property in the receiving district that is

 

commercial personal property do not include property within the

 

geographic area of the dissolved district; ad valorem property tax

 

revenue of the receiving district captured under tax increment

 

financing acts does not include ad valorem property tax revenue

 

captured within the geographic boundaries of the dissolved district

 

under tax increment financing acts; and certified mills do not

 

include the certified mills of the dissolved district.

 

     (b) For a district that had a 1994-95 foundation allowance

 

greater than $6,500.00, the state payment under this subsection

 

shall be the sum of the amount calculated under subdivision (a)

 

plus the amount calculated under this subdivision. The amount

 

calculated under this subdivision shall be equal to the difference

 

between the district's 1994-95 foundation allowance minus $6,500.00

 

and the current year hold harmless school operating taxes per

 

pupil. If the result of the calculation under subdivision (a) is

 

negative, the negative amount shall be an offset against any state

 

payment calculated under this subdivision. If the result of a

 

calculation under this subdivision is negative, there shall not be

 

a state payment or a deduction under this subdivision. The taxable

 

values per membership pupil used in the calculations under this

 

subdivision are as adjusted by ad valorem property tax revenue

 

captured under tax increment financing acts divided by the

 

district's membership. For a receiving district, if school


operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, ad valorem

 

property tax revenue captured under tax increment financing acts do

 

not include ad valorem property tax revenue captured within the

 

geographic boundaries of the dissolved district under tax increment

 

financing acts.

 

     (3) Beginning in 2003-2004, for pupils in membership in a

 

qualifying public school academy, there is allocated under this

 

section to the authorizing body that is the fiscal agent for the

 

qualifying public school academy for forwarding to the qualifying

 

public school academy an amount equal to the 1994-95 per pupil

 

payment to the qualifying public school academy under section 20.

 

     (4) A district or qualifying public school academy may use

 

funds allocated under this section in conjunction with any federal

 

funds for which the district or qualifying public school academy

 

otherwise would be eligible.

 

     (5) Except as otherwise provided in this subsection, for a

 

district that is formed or reconfigured after June 1, 2000 by

 

consolidation of 2 or more districts or by annexation, the

 

resulting district's 1994-95 foundation allowance under this

 

section beginning after the effective date of the consolidation or

 

annexation shall be the average of the 1994-95 foundation

 

allowances of each of the original or affected districts,

 

calculated as provided in this section, weighted as to the

 

percentage of pupils in total membership in the resulting district


in the state fiscal year in which the consolidation takes place who

 

reside in the geographic area of each of the original districts. If

 

an affected district's 1994-95 foundation allowance is less than

 

the 1994-95 basic foundation allowance, the amount of that

 

district's 1994-95 foundation allowance shall be considered for the

 

purpose of calculations under this subsection to be equal to the

 

amount of the 1994-95 basic foundation allowance. This subsection

 

does not apply to a receiving district unless there is a subsequent

 

consolidation or annexation that affects the district.

 

     (6) Payments under this section are subject to section 25f.

 

     (7) As used in this section:

 

     (a) "1994-95 foundation allowance" means a district's 1994-95

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

in 1993 PA 336 and as amended by 1994 PA 283.

 

     (b) "Certified mills" means the lesser of 18 mills or the

 

number of mills of school operating taxes levied by the district in

 

1993-94.

 

     (c) "Current state fiscal year" means the state fiscal year

 

for which a particular calculation is made.

 

     (d) "Current year hold harmless school operating taxes per

 

pupil" means the per pupil revenue generated by multiplying a

 

district's 1994-95 hold harmless millage by the district's current

 

year taxable value per membership pupil. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved


district under section 12 of the revised school code, MCL 380.12,

 

taxable value per membership pupil does not include the taxable

 

value of property within the geographic area of the dissolved

 

district.

 

     (e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

     (f) "Hold harmless millage" means, for a district with a 1994-

 

95 foundation allowance greater than $6,500.00, the number of mills

 

by which the exemption from the levy of school operating taxes on a

 

homestead, qualified agricultural property, qualified forest

 

property, supportive housing property, industrial personal

 

property, commercial personal property, and property occupied by a

 

public school academy could be reduced as provided in section 1211

 

of the revised school code, MCL 380.1211, and the number of mills

 

of school operating taxes that could be levied on all property as

 

provided in section 1211(2) of the revised school code, MCL

 

380.1211, as certified by the department of treasury for the 1994

 

tax year. For a receiving district, if school operating taxes are

 

to be levied on behalf of a dissolved district that has been

 

attached in whole or in part to the receiving district to satisfy

 

debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

     (g) "Homestead", "qualified agricultural property", "qualified


forest property", "supportive housing property", "industrial

 

personal property", and "commercial personal property" mean those

 

terms as defined in section 1211 of the revised school code, MCL

 

380.1211.

 

     (h) "Membership" means the definition of that term under

 

section 6 as in effect for the particular fiscal year for which a

 

particular calculation is made.

 

     (i) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a

 

public school academy.

 

     (j) "Qualifying public school academy" means a public school

 

academy that was in operation in the 1994-95 school year and is in

 

operation in the current state fiscal year.

 

     (k) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

     (l) "School operating taxes" means local ad valorem property

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211, and retained for school operating purposes as defined in

 

section 20.

 

     (m) "Tax increment financing acts" means 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, the local development financing

 

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,


or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

     (n) "Taxable value per membership pupil" means each of the

 

following divided by the district's membership:

 

     (i) For the number of mills by which the exemption from the

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, supportive

 

housing property, industrial personal property, commercial personal

 

property, and property occupied by a public school academy may be

 

reduced as provided in section 1211 of the revised school code, MCL

 

380.1211, the taxable value of homestead, qualified agricultural

 

property, qualified forest property, supportive housing property,

 

industrial personal property, commercial personal property, and

 

property occupied by a public school academy for the calendar year

 

ending in the current state fiscal year. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

mills do not include mills within the geographic area of the

 

dissolved district.

 

     (ii) For the number of mills of school operating taxes that

 

may be levied on all property as provided in section 1211(2) of the

 

revised school code, MCL 380.1211, the taxable value of all

 

property for the calendar year ending in the current state fiscal

 

year. For a receiving district, if school operating taxes are to be

 

levied on behalf of a dissolved district that has been attached in


whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

     Sec. 22b. (1) From the appropriation in section 11, For

 

discretionary nonmandated payments to districts under this section,

 

there is allocated from the appropriation in section 11 an amount

 

not to exceed $3,692,000,000.00 for 2015-2016, and there is

 

allocated for 2016-2017 an amount not to exceed $3,440,000,000.00

 

for 2014-2015 and an amount not to exceed $3,728,000,000.00 for

 

2015-2016 for discretionary nonmandated payments to districts under

 

this section. $3,828,000,000.00 from the state school aid fund and

 

general fund appropriations in section 11 and an amount not to

 

exceed $72,000,000.00 from the community district education trust

 

fund appropriation in section 11. Funds allocated under this

 

section that are not expended in the state fiscal year for which

 

they were allocated, as determined by the department, may be used

 

to supplement the allocations under sections 22a and 51c in order

 

to fully fund those calculated allocations for the same fiscal

 

year.

 

     (2) Subject to subsection (3) and section 296, the allocation

 

to a district under this section shall be an amount equal to the

 

sum of the amounts calculated under sections 20, 20m, 51a(2),

 

51a(3), and 51a(11), minus the sum of the allocations to the

 

district under sections 22a and 51c.

 

     (3) In order to receive an allocation under subsection (1),


each district shall do all of the following:

 

     (a) Comply with section 1280b of the revised school code, MCL

 

380.1280b.

 

     (b) Comply with sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b.

 

     (c) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

     (d) Comply with section 1230g of the revised school code, MCL

 

380.1230g.

 

     (e) Comply with section 21f.

 

     (4) Districts are encouraged to use funds allocated under this

 

section for the purchase and support of payroll, human resources,

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

     (5) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state related to commercial or industrial property tax appeals,

 

including, but not limited to, appeals of classification, that

 

impact revenues dedicated to the state school aid fund.

 

     (6) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be


made in full before any proration of remaining payments under this

 

section.

 

     (7) It is the intent of the legislature that all

 

constitutional obligations of this state have been fully funded

 

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

 

an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

amount as may be necessary to satisfy the claim before making any

 

payments to districts under subsection (2). If funds are escrowed,

 

the escrowed funds are a work project appropriation and the funds

 

are carried forward into the following fiscal year. The purpose of

 

the work project is to provide for any payments that may be awarded

 

to districts as a result of litigation. The work project shall be

 

completed upon resolution of the litigation.

 

     (8) If the local claims review board or a court of competent

 

jurisdiction makes a final determination that this state is in

 

violation of section 29 of article IX of the state constitution of

 

1963 regarding state payments to districts, the state budget

 

director shall use work project funds under subsection (7) or

 

allocate from the discretionary funds for nonmandated payments

 

under this section the amount as may be necessary to satisfy the

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

     (9) If a claim is made in court that challenges the


legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

an expedited review of the claim by the local claims review board.

 

If the claim exceeds $10,000,000.00, this state may remove the

 

action to the court of appeals, and the court of appeals shall have

 

and shall exercise jurisdiction over the claim.

 

     (10) If payments resulting from a final determination by the

 

local claims review board or a court of competent jurisdiction that

 

there has been a violation of section 29 of article IX of the state

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX Medicaid funds is

 

filed against this state, then, for the purpose of addressing

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

money from the funds otherwise allocated under this section, up to

 

a maximum of 50% of the amount allocated in subsection (1). If

 

funds are placed in escrow under this subsection, those funds are a

 

work project appropriation and the funds are carried forward into

 

the following fiscal year. The purpose of the work project is to

 

provide for any payments that may be awarded to districts as a

 

result of the litigation. The work project shall be completed upon

 

resolution of the litigation. In addition, this state reserves the


right to terminate future federal title XIX Medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

funds is challenged in the lawsuit. As used in this subsection,

 

"title XIX" means title XIX of the social security act, 42 USC 1396

 

to 1396v.

 

     (12) Payments under this section are subject to section 25g.

 

     Sec. 22d. (1) From the appropriation in section 11, an amount

 

not to exceed $5,000,000.00 is allocated for 2015-2016 2016-2017

 

for supplemental payments to rural districts under this section.

 

     (2) From the allocation under subsection (1), there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$957,300.00 for payments under this subsection to districts that

 

meet all of the following:

 

     (a) Operates grades K to 12.

 

     (b) Has fewer than 250 pupils in membership.

 

     (c) Each school building operated by the district meets at

 

least 1 of the following:

 

     (i) Is located in the Upper Peninsula at least 30 miles from

 

any other public school building.

 

     (ii) Is located on an island that is not accessible by bridge.

 

     (3) The amount of the additional funding to each eligible

 

district under subsection (2) shall be determined under a spending

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation


of each eligible district, determine the minimum essential

 

financial needs of each eligible district, and develop and agree on

 

a spending plan that distributes the available funding under

 

subsection (2) to the eligible districts based on those financial

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

allocated under subsection (2) and shall be paid to the eligible

 

districts in the same manner as payments under section 22b.

 

     (4) Subject to subsection (6), from the allocation in

 

subsection (1), there is allocated for 2015-2016 2016-2017 an

 

amount not to exceed $4,042,700.00 for payments under this

 

subsection to districts that have 7.3 or fewer pupils per square

 

mile as determined by the department.

 

     (5) The funds allocated under subsection (4) shall be

 

allocated on an equal per-pupil basis.

 

     (6) A district receiving funds allocated under subsection (2)

 

is not eligible for funding allocated under subsection (4).

 

     Sec. 22g. (1) From the funds appropriated in section 11, there

 

is allocated for 2015-2016 2016-2017 only an amount not to exceed

 

$5,000,000.00 $500,000.00 for competitive assistance grants to

 

districts and intermediate districts.

 

     (2) Funds received under this section may be used for

 

reimbursement of transition costs associated with the dissolution,

 

consolidation, or annexation of districts or intermediate

 

districts. Grant funding shall be available for dissolutions,


consolidations, or annexations that occur on or after June 1, 2015.

 

2016. Districts may spend funds allocated under this section over 3

 

fiscal years.

 

     (3) In addition to the amount allocated under subsection (1),

 

from the funds appropriated in section 11, there is allocated for

 

2016-2017 an amount not to exceed $2,500,000.00 for grants to

 

districts or intermediate districts that received a grant under

 

this section as it was in effect for 2015-2016 for reimbursement of

 

remaining transition costs associated with a dissolution,

 

consolidation, or annexation that was approved during 2015-2016 by

 

the school electors of the applicable district or intermediate

 

district.

 

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

 

district qualifies for the special membership counting provisions

 

of section 6(4)(dd) 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.

 

     (c) Develops a written learning plan.


     (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.

 

     (c) "Eligible pupil" means a pupil who has been expelled from

 

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) "Teacher of record" means a teacher who holds a valid

 

Michigan teaching certificate; who, if applicable, is endorsed in

 

the subject area and grade of the course; and is responsible for

 

providing instruction, determining 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.

 

     (f) (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. 24. (1) From the appropriation in section 11, there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$8,000,000.00 for payments to the educating district or

 

intermediate district for educating pupils assigned by a court or

 

the department of health and human services to reside in or to

 

attend a juvenile detention facility or child caring institution

 

licensed by the department of health and human services and

 

approved by the department to provide an on-grounds education

 

program. The amount of the payment under this section to a district

 

or intermediate district shall be calculated as prescribed under

 

subsection (2).

 

     (2) The total amount allocated under this section shall be

 

allocated by paying to the educating district or intermediate

 

district an amount equal to the lesser of the district's or

 

intermediate district's added cost or the department's approved

 

per-pupil allocation for the district or intermediate district. For

 

the purposes of this subsection:

 

     (a) "Added cost" means 100% of the added cost each fiscal year

 

for educating all pupils assigned by a court or the department of

 

health and human services to reside in or to attend a juvenile

 

detention facility or child caring institution licensed by the

 

department of health and human services or the department of

 

licensing and regulatory affairs and approved by the department to

 

provide an on-grounds education program. Added cost shall be

 

computed by deducting all other revenue received under this article

 

for pupils described in this section from total costs, as approved


by the department, in whole or in part, for educating those pupils

 

in the on-grounds education program or in a program approved by the

 

department that is located on property adjacent to a juvenile

 

detention facility or child caring institution. Costs reimbursed by

 

federal funds are not included.

 

     (b) "Department's approved per-pupil allocation" for a

 

district or intermediate district shall be determined by dividing

 

the total amount allocated under this section for a fiscal year by

 

the full-time equated membership total for all pupils approved by

 

the department to be funded under this section for that fiscal year

 

for the district or intermediate district.

 

     (3) A district or intermediate district educating pupils

 

described in this section at a residential child caring institution

 

may operate, and receive funding under this section for, a

 

department-approved on-grounds educational program for those pupils

 

that is longer than 181 days, but not longer than 233 days, if the

 

child caring institution was licensed as a child caring institution

 

and offered in 1991-92 an on-grounds educational program that was

 

longer than 181 days but not longer than 233 days and that was

 

operated by a district or intermediate district.

 

     (4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     Sec. 24a. From the appropriation in section 11, there is

 

allocated an amount not to exceed $2,189,800.00 $1,301,000.00 for

 

2015-2016 and there is allocated an amount not to exceed

 

$1,328,100.00 for 2016-2017 for payments to intermediate districts

 

for pupils who are placed in juvenile justice service facilities


operated by the department of health and human services. Each

 

intermediate district shall receive an amount equal to the state

 

share of those costs that are clearly and directly attributable to

 

the educational programs for pupils placed in facilities described

 

in this section that are located within the intermediate district's

 

boundaries. The intermediate districts receiving payments under

 

this section shall cooperate with the department of health and

 

human services to ensure that all funding allocated under this

 

section is utilized by the intermediate district and department of

 

health and human services for educational programs for pupils

 

described in this section. Pupils described in this section are not

 

eligible to be funded under section 24. However, a program

 

responsibility or other fiscal responsibility associated with these

 

pupils shall not be transferred from the department of health and

 

human services to a district or intermediate district unless the

 

district or intermediate district consents to the transfer.

 

     Sec. 24c. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,497,400.00 for 2015-2016

 

$1,632,400.00 for 2016-2017 for payments to districts for pupils

 

who are enrolled in a nationally administered community-based

 

education and youth mentoring program, known as the youth challenge

 

program, that is administered by the department of military and

 

veterans affairs. Both of the following apply to a district

 

receiving payments under this section:

 

     (a) The district shall contract with the department of

 

military and veterans affairs to ensure that all funding allocated

 

under this section is utilized by the district and the department


of military and veterans affairs for the youth challenge program.

 

     (b) The district may retain for its administrative expenses an

 

amount not to exceed 3% of the amount of the payment the district

 

receives under this section.

 

     Sec. 25e. (1) The pupil membership transfer application and

 

pupil transfer process administered by the center under this

 

section shall be used for processing pupil transfers associated

 

with strict discipline academies.

 

     (2) If a pupil counted in membership for the pupil membership

 

count day transfers from a district or intermediate district to

 

enroll in another district or intermediate district a strict

 

discipline academy after the pupil membership count day and before

 

the supplemental 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, strict discipline academy, the educating

 

district or intermediate district strict discipline academy may

 

report the enrollment and attendance information to the center

 

through the pupil transfer process within 30 days after the

 

transfer or within 30 days after the pupil membership count

 

certification date, whichever is later. Pupil transfers may be

 

submitted no earlier than the first day after the certification

 

deadline for the pupil membership count day and before the

 

supplemental count day. Upon receipt of the transfer information

 

under this subsection indicating that a pupil has enrolled and is

 

in attendance in an educating district or intermediate district

 

strict discipline academy as described in this subsection, the


pupil transfer process shall do the following:

 

     (a) Notify the district in which the pupil was previously

 

enrolled.

 

     (b) Notify both the pupil auditing staff of the intermediate

 

district in which the educating district strict discipline academy

 

is located and the pupil auditing staff of the intermediate

 

district in which the district that previously enrolled the pupil

 

is located. The pupil auditing staff shall investigate a

 

representative sample based on required audit sample sizes in the

 

pupil auditing manual and may deny the pupil membership transfer.

 

     (c) Aggregate the districtwide changes and notify the

 

department for use in adjusting the state aid payment system.

 

     (3) The department shall do all 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 a change in the

 

pupil's enrollment and attendance 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,

 

as determined by the financial calendar furnished by the center, in

 

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

 

intermediate district an amount equal to 1/105 of a full-time

 

equated membership claimed in the fall pupil membership count. The

 

district or intermediate district shall receive a prorated

 

foundation allowance in an amount equal to the product of the

 

adjustment under this subdivision for the district or intermediate


district multiplied by 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) Adjust the membership calculation for the educating

 

district or intermediate district strict discipline academy in

 

which the pupil is enrolled and is in attendance so that the

 

district's or intermediate district's strict discipline academy's

 

membership is increased to allow the district or intermediate

 

district strict discipline academy to receive an amount equal to

 

the difference between the full-time equated membership claimed in

 

the fall pupil membership count and the sum of the adjustments

 

calculated under subdivision (a) for each district or intermediate

 

district in which the pupil was previously enrolled and in

 

attendance. The educating district or intermediate district strict

 

discipline academy shall receive a prorated foundation allowance in

 

an amount equal to the product of the adjustment under this

 

subdivision for the educating district or intermediate district

 

strict discipline academy multiplied by the foundation allowance or

 

per-pupil payment as calculated under section 20 for the educating

 

district or intermediate district. strict discipline academy. 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).

 

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

 

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


pupil becomes enrolled and in attendance in the educating district

 

or intermediate district, strict discipline academy, and the

 

department shall base all subsequent payments under this article

 

for the fiscal year to the affected districts or intermediate

 

districts on this recalculation of state school aid.

 

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

 

intermediate district strict discipline academy as described in

 

subsection (2), the district or intermediate district in which the

 

pupil is counted in membership or another educating district or

 

intermediate district strict discipline academy that received an

 

adjustment in its membership calculation under subsection (3), if

 

any, and the educating district or intermediate district strict

 

discipline academy shall provide to the center and the department

 

all information they require to comply with this section.

 

     (6) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under section

 

21f shall not be counted or transferred under the pupil transfer

 

process under this section.

 

     (7) The It is the intent of the legislature that the center

 

shall determine the number of pupils who did not reside in this

 

state as of the 2015-2016 2018-2019 pupil membership count day but

 

who newly enrolled in a district or intermediate district after

 

that pupil membership count day and before the 2015-2016 2018-2019

 

supplemental count day. The It is the intent of the legislature

 

that the center shall further determine the number of pupils who

 

were counted in membership for the 2015-2016 2018-2019 pupil

 

membership count day but who left this state before the 2015-2016


2018-2019 supplemental count day. The In 2019-2020, the center

 

shall provide a report to the senate and house appropriations

 

subcommittees on state school aid, and to the senate and house

 

fiscal agencies, detailing the number of pupils transferring in

 

from another state or transferring out from this state between the

 

pupil membership count day and supplemental count day as described

 

in this subsection. The center shall include in the report a

 

discussion of benefits and obstacles to developing a pupil

 

enrollment process for pupils who newly enroll in a district or

 

intermediate district after the pupil membership count day and

 

before the supplemental count day, and developing a process for

 

deducting pupils who were counted on the pupil membership count day

 

and transfer out of this state before the supplemental count day.

 

     (8) As used in this section:

 

     (a) "Educating district or intermediate district" strict

 

discipline academy" means the district or intermediate district

 

strict discipline academy 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.

 

     (b) "Pupil" means that term as defined under section 6 and

 

also children receiving early childhood special education programs

 

and services.

 

     (c) "Strict discipline academy" means a strict discipline

 

academy operating under sections 1311b to 1311m of the revised

 

school code, MCL 380.1311b to 380.1311m.

 

     Sec. 25f. (1) From the state school aid fund money


appropriated in section 11, there is allocated an amount not to

 

exceed $1,000,000.00 for 2015-2016 $750,000.00 for 2016-2017 for

 

payments to strict discipline academies established under sections

 

1311b to 1311m of the revised school code, MCL 380.1311b to

 

380.1311m, as provided under this section.

 

     (2) In order to receive funding under this section, a strict

 

discipline academy shall first comply with section 25e and use the

 

pupil transfer process under that section for changes in enrollment

 

as prescribed under that section.

 

     (3) The total amount allocated to a strict discipline academy

 

under this section is an amount equal to the lesser of the strict

 

discipline academy's added cost or the department's approved per-

 

pupil allocation for the strict discipline academy. However, the

 

sum of the amounts received by a strict discipline academy under

 

this section and under section 24 shall not exceed the product of

 

the strict discipline academy's per-pupil allocation calculated

 

under section 20 multiplied by the strict discipline academy's

 

full-time equated membership. The department shall allocate funds

 

to strict discipline academies under this section on a monthly

 

basis. For the purposes of this subsection:

 

     (a) "Added cost" means 100% of the added cost each fiscal year

 

for educating all pupils enrolled and in regular daily attendance

 

at a strict discipline academy. Added cost shall be computed by

 

deducting all other revenue received under this article for pupils

 

described in this subsection from total costs, as approved by the

 

department, in whole or in part, for educating those pupils in a

 

strict discipline academy. The department shall include all costs


including, but not limited to, educational costs, insurance,

 

management fees, technology costs, legal fees, auditing fees,

 

interest, pupil accounting costs, and any other administrative

 

costs necessary to operate the program or to comply with statutory

 

requirements. Costs reimbursed by federal funds are not included.

 

     (b) "Department's approved per-pupil allocation" for a strict

 

discipline academy shall be determined by dividing the total amount

 

allocated under this subsection for a fiscal year by the full-time

 

equated membership total for all pupils approved by the department

 

to be funded under this subsection for that fiscal year for the

 

strict discipline academy.

 

     (4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     (5) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsection (3), payments under

 

this section shall be prorated on an equal per-pupil basis.

 

     (6) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 25g. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $1,000,000.00 for 2015-2016 $750,000.00 for 2016-2017 for

 

the purposes of this section. If the operation of the special

 

membership counting provisions under section 6(4)(dd) and the other

 

membership counting provisions under section 6(4) result in a pupil

 

being counted as more than 1.0 FTE in a fiscal year, then 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 that portion of the


FTE that exceeds 1.0 shall be paid under this section in an amount

 

equal to that portion multiplied by the educating district's

 

foundation allowance or per-pupil payment calculated under section

 

20.

 

     (2) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     (3) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsection (1), payments under

 

this section shall be prorated on an equal per-pupil basis.

 

     (4) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 26a. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $26,300,000.00 $20,000,000.00 for

 

2015-2016 and there is allocated an amount not to exceed

 

$20,000,000.00 for 2016-2017 to reimburse districts and

 

intermediate districts pursuant to section 12 of the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied

 

in 2015. 2016. The allocations shall be made not later than 60 days

 

after the department of treasury certifies to the department and to

 

the state budget director that the department of treasury has

 

received all necessary information to properly determine the

 

amounts due to each eligible recipient.

 

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

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$4,276,800.00 $4,405,100.00 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. 26c. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $610,000.00 $278,000.00 for 2015-

 

2016 and there is allocated an amount not to exceed $1,000,000.00

 

for 2016-2017 to the promise zone fund created in subsection (3).

 

     (2) Funds allocated to the promise zone fund under this

 

section shall be used solely for payments to eligible districts and

 

intermediate districts that have a promise zone development plan

 

approved by the department of treasury under section 7 of the

 

Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

 

     (3) The promise zone fund is created as a separate account

 

within the state school aid fund to be used solely for the purposes

 

of the Michigan promise zone authority act, 2008 PA 549, MCL

 

390.1661 to 390.1679. All of the following apply to the promise

 

zone fund:

 

     (a) The state treasurer shall direct the investment of the

 

promise zone fund. The state treasurer shall credit to the promise

 

zone fund interest and earnings from fund investments.

 

     (b) Money in the promise zone fund at the close of a fiscal

 

year shall remain in the promise zone fund and shall not lapse to

 

the general fund.


     (4) Subject to subsection (2), the state treasurer may make

 

payments from the promise zone fund to eligible districts and

 

intermediate districts pursuant to the Michigan promise zone

 

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

 

for the purposes of a promise zone authority created under that

 

act.

 

     Sec. 31a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2015-2016 2016-

 

2017 an amount not to exceed $389,695,500.00 for payments to

 

eligible districts, eligible public school academies, and the

 

education achievement system for the purposes of ensuring that

 

pupils are proficient in reading by the end of grade 3 and that

 

high school graduates are career and college ready and for the

 

purposes under subsections (7) and (8).

 

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

 

achievement system, to be eligible to receive funding under this

 

section, other than funding under subsection (7) or (8), the sum of

 

the district's or public school academy's or the education

 

achievement system's combined state and local revenue per

 

membership pupil in the current state fiscal year, as calculated

 

under section 20, must be less than or equal to the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

     (3) For a district or public school academy that operates

 

grades K to 3, or the education achievement system, to be eligible

 

to receive funding under this section, other than funding under

 

subsection (7) or (8), the district or public school academy, or


the education achievement system, must implement, for at least

 

grades K to 3, a multi-tiered system of supports that is an

 

evidence-based model that uses data-driven problem solving to

 

integrate academic and behavioral instruction and that uses

 

intervention delivered to all pupils in varying intensities based

 

on pupil needs. This multi-tiered system of supports must provide

 

at least all of the following essential elements:

 

     (a) Implements effective instruction for all learners.

 

     (b) Intervenes early.

 

     (c) Provides a multi-tiered model of instruction and

 

intervention that provides the following:

 

     (i) A core curriculum and classroom interventions available to

 

all pupils that meet the needs of most pupils.

 

     (ii) Targeted group interventions.

 

     (iii) Intense individual interventions.

 

     (d) Monitors pupil progress to inform instruction.

 

     (e) Uses data to make instructional decisions.

 

     (f) Uses assessments including universal screening,

 

diagnostics, and progress monitoring.

 

     (g) Engages families and the community.

 

     (h) Implements evidence-based, scientifically validated,

 

instruction and intervention.

 

     (i) Implements instruction and intervention practices with

 

fidelity.

 

     (j) Uses a collaborative problem-solving model.

 

     (4) Except as otherwise provided in this subsection, an

 

eligible district or eligible public school academy or the


education achievement system shall receive under this section for

 

each membership pupil in the district or public school academy or

 

the education achievement system who met the income eligibility

 

criteria for free breakfast, lunch, or milk, as determined under

 

the Richard B. Russell national school lunch act, 42 USC 1751 to

 

1769, and as reported to the department in the form and manner

 

prescribed by the department not later than the fifth Wednesday

 

after the pupil membership count day of the immediately preceding

 

fiscal year and adjusted not later than December 31 of the

 

immediately preceding fiscal year, an amount per pupil equal to

 

11.5% of the sum of the district's foundation allowance or the

 

public school academy's or the education achievement system's per

 

pupil amount calculated under section 20 plus the amount of the

 

district's per-pupil allocation under section 20m, not to exceed

 

the basic foundation allowance under section 20 for the current

 

state fiscal year, or of the public school academy's or the

 

education achievement system's per membership pupil amount

 

calculated under section 20 for the current state fiscal year.

 

However, a public school academy that began operations as a public

 

school academy, or an achievement school that began operations as

 

an achievement school, or a community district that first enrolls

 

pupils, after the pupil membership count day of the immediately

 

preceding school year shall receive under this section for each

 

membership pupil in the public school academy, or in the education

 

achievement system, or in the community district who met the income

 

eligibility criteria for free breakfast, lunch, or milk, as

 

determined under the Richard B. Russell national school lunch act


and as reported to the department not later than the fifth

 

Wednesday after the pupil membership count day of the current

 

fiscal year and adjusted not later than December 31 of the current

 

fiscal year, an amount per pupil equal to 11.5% of the public

 

school academy's, or the education achievement system's, or the

 

community district's per membership pupil amount calculated under

 

section 20 for the current state fiscal year.

 

     (5) Except as otherwise provided in this section, a district

 

or public school academy, or the education achievement system,

 

receiving funding under this section shall use that money only to

 

provide instructional programs and direct noninstructional

 

services, including, but not limited to, medical, mental health, or

 

counseling services, for at-risk pupils; for school health clinics;

 

and for the purposes of subsection (6), (7), (8), or (11). In

 

addition, a district that is a school district of the first class

 

or a district or public school academy in which at least 50% of the

 

pupils in membership met the income eligibility criteria for free

 

breakfast, lunch, or milk in the immediately preceding state fiscal

 

year, as determined and reported as described in subsection (4), or

 

the education achievement system if it meets this requirement, may

 

use not more than 20% of the funds it receives under this section

 

for school security. A district, the public school academy, or the

 

education achievement system shall not use any of that money for

 

administrative costs. The instruction or direct noninstructional

 

services provided under this section may be conducted before or

 

after regular school hours or by adding extra school days to the

 

school year.


     (6) A district or public school academy that receives funds

 

under this section and that operates a school breakfast program

 

under section 1272a of the revised school code, MCL 380.1272a, or

 

the education achievement system if it operates a school breakfast

 

program, shall use from the funds received under this section an

 

amount, not to exceed $10.00 per pupil for whom the district or

 

public school academy or the education achievement system receives

 

funds under this section, necessary to pay for costs associated

 

with the operation of the school breakfast program.

 

     (7) From the funds allocated under subsection (1), there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$3,557,300.00 $5,557,300.00 to support child and adolescent health

 

centers. These grants shall be awarded for 5 consecutive years

 

beginning with 2003-2004 in a form and manner approved jointly by

 

the department and the department of health and human services.

 

Each grant recipient shall remain in compliance with the terms of

 

the grant award or shall forfeit the grant award for the duration

 

of the 5-year period after the noncompliance. To continue to

 

receive funding for a child and adolescent health center under this

 

section a grant recipient shall ensure that the child and

 

adolescent health center has an advisory committee and that at

 

least one-third of the members of the advisory committee are

 

parents or legal guardians of school-aged children. A child and

 

adolescent health center program shall recognize the role of a

 

child's parents or legal guardian in the physical and emotional

 

well-being of the child. Funding under this subsection shall be

 

used to support child and adolescent health center services


provided to children up to age 21. If any funds allocated under

 

this subsection are not used for the purposes of this subsection

 

for the fiscal year in which they are allocated, those unused funds

 

shall be used that fiscal year to avoid or minimize any proration

 

that would otherwise be required under subsection (12) for that

 

fiscal year. In addition to the funds otherwise allocated under

 

this subsection, from the money allocated in subsection (1), there

 

is allocated an amount not to exceed $2,000,000.00 for 2015-2016

 

only for child and adolescent health centers to increase access to

 

nurses and behavioral health services in schools, using 3 existing

 

school clinics as hubs for services and using mobile teams to serve

 

satellite school sites.

 

     (8) From the funds allocated under subsection (1), there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$5,150,000.00 for the state portion of the hearing and vision

 

screenings as described in section 9301 of the public health code,

 

1978 PA 368, MCL 333.9301. A local public health department shall

 

pay at least 50% of the total cost of the screenings. The frequency

 

of the screenings shall be as required under R 325.13091 to R

 

325.13096 and R 325.3271 to R 325.3276 of the Michigan

 

administrative code. Funds shall be awarded in a form and manner

 

approved jointly by the department and the department of health and

 

human services. Notwithstanding section 17b, payments to eligible

 

entities under this subsection shall be paid on a schedule

 

determined by the department.

 

     (9) Each district or public school academy receiving funds

 

under this section and the education achievement system shall


submit to the department by July 15 of each fiscal year a report,

 

not to exceed 10 pages, on the usage by the district or public

 

school academy or the education achievement system of funds under

 

this section, which report shall include a brief description of

 

each program conducted or services performed by the district or

 

public school academy or the education achievement system using

 

funds under this section, the amount of funds under this section

 

allocated to each of those programs or services, the total number

 

of at-risk pupils served by each of those programs or services, and

 

the data necessary for the department and the department of health

 

and human services to verify matching funds for the temporary

 

assistance for needy families program. If a district or public

 

school academy or the education achievement system does not comply

 

with this subsection, the department shall withhold an amount equal

 

to the August payment due under this section until the district or

 

public school academy or the education achievement system complies

 

with this subsection. If the district or public school academy or

 

the education achievement system does not comply with this

 

subsection by the end of the state fiscal year, the withheld funds

 

shall be forfeited to the school aid fund.

 

     (10) In order to receive funds under this section, a district

 

or public school academy or the education achievement system shall

 

allow access for the department or the department's designee to

 

audit all records related to the program for which it receives

 

those funds. The district or public school academy or the education

 

achievement system shall reimburse the state for all disallowances

 

found in the audit.


     (11) Subject to subsections (6), (7), and (8), a district may

 

use up to 100% of the funds it receives under this section to

 

implement schoolwide reform in schools with 40% or more of their

 

pupils identified as at-risk pupils by providing supplemental

 

instructional or noninstructional services consistent with the

 

school improvement plan.

 

     (12) If necessary, and before any proration required under

 

section 296, the department shall prorate payments under this

 

section by reducing the amount of the per pupil payment under this

 

section by a dollar amount calculated by determining the amount by

 

which the amount necessary to fully fund the requirements of this

 

section exceeds the maximum amount allocated under this section and

 

then dividing that amount by the total statewide number of pupils

 

who met the income eligibility criteria for free breakfast, lunch,

 

or milk in the immediately preceding fiscal year, as described in

 

subsection (4).

 

     (13) If a district is formed by consolidation after June 1,

 

1995, and if 1 or more of the original districts were not eligible

 

before the consolidation for an additional allowance under this

 

section, the amount of the additional allowance under this section

 

for the consolidated district shall be based on the number of

 

pupils described in subsection (1) enrolled in the consolidated

 

district who reside in the territory of an original district that

 

was eligible before the consolidation for an additional allowance

 

under this section. In addition, if a district is dissolved

 

pursuant to section 12 of the revised school code, MCL 380.12, the

 

intermediate district to which the dissolved school district was


constituent shall determine the estimated number of pupils that

 

meet the income eligibility criteria for free breakfast, lunch, or

 

milk, as described under subsection (4), enrolled in each of the

 

other districts within the intermediate district and provide that

 

estimate to the department for the purposes of distributing funds

 

under this section within 60 days after the school district is

 

declared dissolved.

 

     (14) As used in this section, "at-risk pupil" means a pupil

 

for whom the district has documentation that the pupil meets any of

 

the following criteria:

 

     (a) Is a victim of child abuse or neglect.

 

     (b) Is a pregnant teenager or teenage parent.

 

     (c) Has a family history of school failure, incarceration, or

 

substance abuse.

 

     (d) For pupils for whom the results of the state summative

 

assessment have been received, is a pupil who did not achieve

 

proficiency on the English language arts, mathematics, science, or

 

social studies content area assessment.

 

     (e) Is a pupil who is at risk of not meeting the district's

 

core academic curricular objectives in English language arts or

 

mathematics, as demonstrated on local assessments.

 

     (f) The pupil is enrolled in a priority or priority-successor

 

school, as defined in the elementary and secondary education act of

 

2001 flexibility waiver approved by the United States Department of

 

Education.

 

     (g) In the absence of state or local assessment data, the

 

pupil meets at least 2 of the following criteria, as documented in


a form and manner approved by the department:

 

     (i) The pupil is eligible for free or reduced price breakfast,

 

lunch, or milk.

 

     (ii) The pupil is absent more than 10% of enrolled days or 10

 

school days during the school year.

 

     (iii) The pupil is homeless.

 

     (iv) The pupil is a migrant.

 

     (v) The pupil is an English language learner.

 

     (vi) The pupil is an immigrant who has immigrated within the

 

immediately preceding 3 years.

 

     (vii) The pupil did not complete high school in 4 years and is

 

still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

     (15) Beginning in 2018-2019, if a district, public school

 

academy, or the education achievement system does not demonstrate

 

to the satisfaction of the department that at least 50% of at-risk

 

pupils are reading at grade level proficient in English language

 

arts by the end of grade 3 as measured by the state assessment for

 

the immediately preceding school year and demonstrate to the

 

satisfaction of the department improvement over each of the 3

 

immediately preceding school years in the percentage of at-risk

 

pupils that are career- and college-ready as determined by

 

proficiency on the English language arts, mathematics, and science

 

content area assessments on the grade 11 summative assessment under

 

section 1279g(2)(a) of the revised school code, MCL 380.1279g, the

 

district, public school academy, or education achievement system

 

shall ensure all of the following:


     (a) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at-risk

 

pupils that represents the number of pupils in grade 3 that are not

 

reading at grade level proficient in English language arts by the

 

end of grade 3, and the district, public school academy, or the

 

education achievement system shall expend that same proportion

 

multiplied by 1/2 of its total at-risk funds under this section on

 

tutoring and other methods of improving grade 3 reading levels.

 

English language arts proficiency.

 

     (b) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at-risk

 

pupils that represent the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on the

 

English language arts, mathematics, and science content area

 

assessments on the grade 11 summative assessment under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

 

district, public school academy, or the education achievement

 

system shall expend that same proportion multiplied by 1/2 of its

 

total at-risk funds under this section on tutoring and other

 

activities to improve scores on the college entrance examination

 

portion of the Michigan merit examination.

 

     (16) As used in subsection (15), "total at-risk pupils" means

 

the sum of the number of pupils in grade 3 that are not reading at

 

grade level proficient in English language arts by the end of third

 

grade as measured on the state assessment and the number of pupils

 

in grade 11 that are not career- and college-ready as measured by

 

the student's score on the English language arts, mathematics, and


science content area assessments on the grade 11 summative

 

assessment under section 1279g(2)(a) of the revised school code,

 

MCL 380.1279g.

 

     (17) A district or public school academy that receives funds

 

under this section or the education achievement system may use

 

funds received under this section to provide an anti-bullying or

 

crisis intervention program.

 

     (18) The department shall collaborate with the department of

 

health and human services to prioritize assigning Pathways to

 

Potential Success coaches to elementary schools that have a high

 

percentage of pupils in grades K to 3 who are not reading at grade

 

level.

 

     Sec. 31b. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $1,500,000.00 for 2016-2017 for

 

grants to at-risk districts for implementing a year-round

 

instructional program for at least 1 of its schools.

 

     (2) The department shall select districts for grants under

 

this section from among applicant districts that meet both of the

 

following:

 

     (a) The district meets 1 or both of the following:

 

     (i) Is eligible in 2016-2017 for the community eligibility

 

option for free and reduced price lunch under 42 USC 1759a.

 

     (ii) At least 50% of the pupils in membership in the district

 

met the income eligibility criteria for free breakfast, lunch, or

 

milk in the immediately preceding state fiscal year, as determined

 

under the Richard B. Russell national school lunch act, 42 USC 1751

 

to 1769i.


     (b) The board of the district has adopted a resolution stating

 

that the district will implement for the first time a year-round

 

instructional calendar that will begin in 2017-2018 for at least 1

 

school operated by the district and committing to providing the

 

year-round instructional calendar in each of those schools for at

 

least 3 school years.

 

     (3) A district seeking a grant under this section shall apply

 

to the department in the form and manner prescribed by the

 

department not later than December 1, 2016. The department shall

 

select districts for grants and make notification not later than

 

February 1, 2017.

 

     (4) The department shall award grants under this section on a

 

competitive basis, but shall give priority based solely on

 

consideration of the following criteria:

 

     (a) Giving priority to districts that, as of June 30, 2016,

 

had lower general fund balances as a percentage of revenues.

 

     (b) Giving priority to districts that operate at least 1

 

school that has been identified by the department as either a

 

priority school or a focus school.

 

     (c) Ensuring that grant funding includes both rural and urban

 

districts.

 

     (5) The amount of a grant under this section to any 1 district

 

shall not exceed $750,000.00.

 

     (6) A grant payment under this section to a district shall be

 

used for necessary modifications to instructional facilities and

 

other nonrecurring costs of preparing for the operation of a year-

 

round instructional program as approved by the department.


     (7) A district receiving a grant under this section is not

 

required to provide more than the minimum number of days and hours

 

of pupil instruction prescribed under section 101, but shall spread

 

at least those minimum amounts of pupil instruction over the entire

 

year in each of its schools in which a year-round instructional

 

calendar is implemented. The district shall commit to providing the

 

year-round instructional calendar in each of those schools for at

 

least 3 school years.

 

     (8) For a district receiving a grant under this section,

 

excessive heat is considered to be a condition not within the

 

control of school authorities for the purpose of days or hours

 

being counted as days or hours of pupil instruction under section

 

101(4).

 

     (9) Notwithstanding section 17b, grant payments to districts

 

under this section shall be paid on a schedule determined by the

 

department.

 

     Sec. 31c. (1) from the funds appropriated in section 11, there

 

is allocated an amount not to exceed $1,000,000.00 for 2015-2016

 

$3,000,000.00 for 2016-2017 for programs intended to improve public

 

safety, reduce the number of youth involved in gang-related

 

activity, and increase high school graduation rates.

 

     (2) The department shall award grants to districts that form

 

partnerships with nonprofit organizations, law enforcement, and

 

other community resources to provide programs that divert young

 

adults from gang-related criminal activity.

 

     (3) Grants awarded under this section may include, but are not

 

limited to, grants for any of the following activities:


     (a) Employment training and placement programs.

 

     (b) Counseling services.

 

     (c) Assistance to program participants in accessing community

 

resources for continuing education, court advocacy, and health

 

care.

 

     (d) Outreach programs to educate participants and their

 

families.

 

     (4) Each grant recipient under this section shall partner with

 

a university to collect data necessary to evaluate the

 

effectiveness of programs in reducing violent crime and gang-

 

related activity in the community and provide a report on this

 

evaluation to the senate and house appropriations subcommittees on

 

school aid not later than December 1, 2017.

 

     Sec. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 for 2015-2016

 

2016-2017 for the purpose of making payments to districts and other

 

eligible entities under this section.

 

     (2) The amounts allocated from state sources under this

 

section shall be used to pay the amount necessary to reimburse

 

districts for 6.0127% of the necessary costs of the state mandated

 

portion of the school lunch programs provided by those districts.

 

The amount due to each district under this section shall be

 

computed by the department using the methods of calculation adopted

 

by the Michigan supreme court in the consolidated cases known as

 

Durant v State of Michigan, Michigan supreme court docket no.

 

104458-104492.

 

     (3) The payments made under this section include all state


payments made to districts so that each district receives at least

 

6.0127% of the necessary costs of operating the state mandated

 

portion of the school lunch program in a fiscal year.

 

     (4) The payments made under this section to districts and

 

other eligible entities that are not required under section 1272a

 

of the revised school code, MCL 380.1272a, to provide a school

 

lunch program shall be in an amount not to exceed $10.00 per

 

eligible pupil plus 5 cents for each free lunch and 2 cents for

 

each reduced price lunch provided, as determined by the department.

 

     (5) From the federal funds appropriated in section 11, there

 

is allocated for 2015-2016 2016-2017 all available federal funding,

 

estimated at $510,000,000.00 for the national school lunch program

 

and all available federal funding, estimated at $3,200,000.00 for

 

the emergency food assistance program.

 

     (6) Notwithstanding section 17b, payments to eligible entities

 

other than districts under this section shall be paid on a schedule

 

determined by the department.

 

     (7) In purchasing food for a school lunch program funded under

 

this section, preference shall be given to food that is grown or

 

produced by Michigan businesses if it is competitively priced and

 

of comparable quality.

 

     Sec. 31f. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $5,625,000.00 $2,500,000.00 for

 

2015-2016 and there is allocated an amount not to exceed

 

$2,500,000.00 for 2016-2017 for the purpose of making payments to

 

districts to reimburse for the cost of providing breakfast.

 

     (2) The funds allocated under this section for school


breakfast programs shall be made available to all eligible

 

applicant districts that meet all of the following criteria:

 

     (a) The district participates in the federal school breakfast

 

program and meets all standards as prescribed by 7 CFR parts 220

 

and 245.

 

     (b) Each breakfast eligible for payment meets the federal

 

standards described in subdivision (a).

 

     (3) The payment for a district under this section is at a per

 

meal rate equal to the lesser of the district's actual cost or 100%

 

of the statewide average cost of a breakfast served, as determined

 

and approved by the department, less federal reimbursement,

 

participant payments, and other state reimbursement. The statewide

 

average cost shall be determined by the department using costs as

 

reported in a manner approved by the department for the preceding

 

school year.

 

     (4) Notwithstanding section 17b, payments under this section

 

may be made pursuant to an agreement with the department.

 

     (5) In purchasing food for a school breakfast program funded

 

under this section, preference shall be given to food that is grown

 

or produced by Michigan businesses if it is competitively priced

 

and of comparable quality.

 

     Sec. 31h. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2015-2016 2016-

 

2017 for the purpose of providing funding to a district that

 

educates high school pupils from another district that voluntarily

 

closed its high school program in 2013. The funding under this

 

section is intended to be for the first second of 2 years, unless


it is determined that the federal elementary and secondary

 

education act allows federal title I funds that previously

 

supported the high school pupils in their resident district to

 

instead be provided to the educating district. Funding under this

 

section shall be used to support the additional costs of educating

 

high school pupils in a manner that is similar to the way title I

 

funds provided additional support to the education of those pupils

 

when they were educated in their resident district high school

 

program before its closure in 2013.

 

     Sec. 31j. (1) From the general fund money appropriated in

 

section 11, there is allocated an amount not to exceed $250,000.00

 

for 2016-2017 for a pilot project to support districts in the

 

purchase of locally grown fruits and vegetables as described in

 

this section.

 

     (2) The department shall provide funding to prosperity regions

 

2 and 4 for the pilot project described under this section. From

 

the funding identified in subsection (1), funding retained by the

 

prosperity regions for administration of the project shall not

 

exceed 10%, and funding retained by the department for

 

administration shall not exceed 6%.

 

     (3) The department shall develop and implement a competitive

 

grant program for districts within the identified prosperity

 

regions to assist in paying for the costs incurred by the district

 

to purchase or increase purchases of whole or minimally processed

 

fruits, vegetables, and legumes grown in this state. The maximum

 

amount that may be drawn down on a grant to a district shall be

 

based on the number of meals served by the school district during


the previous school year under the Richard B. Russell national

 

school lunch act, 42 USC 1751 to 1769. The department shall

 

collaborate with the Michigan department of agriculture and rural

 

development to provide training to newly participating schools and

 

electronic information on Michigan agriculture.

 

     (4) The goals of the pilot project include improving daily

 

nutrition and eating habits for children through the school

 

settings while investing in Michigan's agricultural and related

 

food business economy.

 

     (5) A district that receives a grant under this section shall

 

use those funds for the costs incurred by the school district to

 

purchase whole or minimally processed fruits, vegetables, and

 

legumes that meet all of the following:

 

     (a) Are purchased on or after the date the district received

 

notification from the department of the amount to be distributed to

 

the district under this subsection, including purchases made to

 

launch meals in September 2016 for the 2016-2017 school year.

 

     (b) Are grown in this state and, if MINIMALLY processed, are

 

also processed in this state.

 

     (c) Are used for meals that are served as part of the United

 

States Department of Agriculture's child nutrition programs.

 

     (6) For Michigan-grown fruits, vegetables, and legumes that

 

satisfy the requirements of subsection (5), matching reimbursements

 

shall be made in an amount not to exceed 10 cents for every school

 

meal that is served as part of the United States Department of

 

Agriculture's child nutrition programs and that uses Michigan-grown

 

fruits, vegetables, and legumes.


     (7) A district that receives a grant for reimbursement under

 

this section shall use the grant to purchase whole or minimally

 

processed fruits, vegetables, and legumes that are grown in this

 

state and, if minimally processed, are also processed in this

 

state.

 

     (8) In awarding grants under this section, the department

 

shall work in conjunction with prosperity region offices, in

 

consultation with Michigan-based farm to school resource

 

organizations, to develop scoring criteria that assess an

 

applicant's ability to procure Michigan-grown products, prepare and

 

menu Michigan-grown products, promote and market Michigan-grown

 

products, and submit letters of intent from districts on plans for

 

educational activities that promote the goals of the program.

 

     (9) The department shall give preference to districts that

 

propose educational activities that meet 1 or more of the

 

following: promote healthy food activities; have clear educational

 

objectives; involve parents or the community; and connect to a

 

school's farm-to-school procurement activities.

 

     (10) In awarding grants, the department shall also consider

 

all of the following: the percentage of children who qualify for

 

free or reduced price school meals under the Richard B. Russell

 

national school lunch act, 42 USC 1751 to 1769; the variety of

 

school sizes and geographic locations within the identified

 

prosperity regions; and existing or future collaboration

 

opportunities between more than 1 district in a prosperity region.

 

     (11) As a condition of receiving a grant under this section, a

 

district shall provide or direct its vendors to provide to


prosperity region offices copies of monthly receipts that show the

 

quantity of different Michigan-grown fruits, vegetables, and

 

legumes purchased, the amount of money spent on each of these

 

products, and the name and Michigan location of the farm that grew

 

the products. The district shall also provide to the prosperity

 

region monthly lunch numbers and lunch participation rates, and

 

calendars or monthly menus noting when and how Michigan-grown

 

products were used in meals. The district and school food service

 

director or directors also shall agree to respond to brief online

 

surveys and to provide a report that shows the percentage

 

relationship of Michigan spending compared to total food spending.

 

Not later than March 1, 2017, each prosperity region office shall

 

submit a report to the department on expected outcomes and related

 

measurements for economic development and children's nutrition and

 

readiness to learn based on progress so far. The report shall

 

include at least all of the following:

 

     (a) The extent to which farmers and related businesses,

 

including distributors and processors, see an increase in market

 

opportunities and income generation through sales of Michigan or

 

local products to districts. All of the following apply for

 

purposes of this subdivision:

 

     (i) The data used to determine the amount of this increase

 

shall be the total dollar amount of Michigan or local fruits,

 

vegetables, and legumes purchased by schools, along with the number

 

of different types of products purchased; school food purchasing

 

trends identified along with products that are of new and growing

 

interest among food service directors; the number of businesses


impacted; and the percentage of total food budget spent on

 

Michigan-grown fruits, vegetables, and legumes.

 

     (ii) The prosperity region office shall use purchasing data

 

collected for the project and surveys of school food service

 

directors on the impact and success of the project as the source

 

for the data described in subparagraph (i).

 

     (b) The ability to which pupils can access a variety of

 

healthy Michigan-grown foods through schools and increase their

 

consumption of those foods. All of the following apply for purposes

 

of this subdivision:

 

     (i) The data used to determine whether this subparagraph is

 

met shall be the number of pupils exposed to Michigan-grown fruits,

 

vegetables, and legumes at schools; the variety of products served;

 

new items taste-tested or placed on menus; and the increase in

 

pupil willingness to try new local, healthy foods.

 

     (ii) The prosperity region office shall use purchasing data

 

collected for the project, meal count and enrollment numbers,

 

school menu calendars, and surveys of school food service directors

 

as the source for the data described in subparagraph (i).

 

     (12) The department shall compile the reports provided by

 

prosperity region offices under subsection (11) into 1 legislative

 

report. The department shall provide this report not later than

 

April 1, 2017 to the house and senate subcommittees responsible for

 

school aid, the house and senate fiscal agencies, and the state

 

budget director.

 

     Sec. 32d. (1) From the funds appropriated in section 11, there

 

is allocated to eligible intermediate districts and consortia of


intermediate districts for great start readiness programs an amount

 

not to exceed $243,600,000.00 for 2015-2016. 2016-2017. Funds

 

allocated under this section for great start readiness programs

 

shall be used to provide part-day, school-day, or GSRP/head start

 

blended comprehensive free compensatory classroom programs designed

 

to improve the readiness and subsequent achievement of

 

educationally disadvantaged children who meet the participant

 

eligibility and prioritization guidelines as defined by the

 

department. For a child to be eligible to participate in a program

 

under this section, the child shall be at least 4, but less than 5,

 

years of age as of the date specified for determining a child's

 

eligibility to attend school under section 1147 of the revised

 

school code, MCL 380.1147.September 1 of the school year in which

 

the program is offered and shall meet those eligibility and

 

prioritization guidelines.

 

     (2) Funds allocated under subsection (1) shall be allocated to

 

intermediate districts or consortia of intermediate districts based

 

on the formula in section 39. An intermediate district or

 

consortium of intermediate districts receiving funding under this

 

section shall act as the fiduciary for the great start readiness

 

programs. In order to be eligible to receive funds allocated under

 

this subsection from an intermediate district or consortium of

 

intermediate districts, a district, a consortium of districts, or a

 

public or private for-profit or nonprofit legal entity or agency

 

shall comply with this section and section 39.

 

     (3) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is


allocated an amount not to exceed $300,000.00 for 2015-2016 2016-

 

2017 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in great start readiness

 

programs.

 

     (4) To be eligible for funding under this section, a program

 

shall prepare children for success in school through comprehensive

 

part-day, school-day, or GSRP/head start blended programs that

 

contain all of the following program components, as determined by

 

the department:

 

     (a) Participation in a collaborative recruitment and

 

enrollment process to assure that each child is enrolled in the

 

program most appropriate to his or her needs and to maximize the

 

use of federal, state, and local funds.

 

     (b) An age-appropriate educational curriculum that is in

 

compliance with the early childhood standards of quality for

 

prekindergarten children adopted by the state board.

 

     (c) Nutritional services for all program participants

 

supported by federal, state, and local resources as applicable.

 

     (d) Physical and dental health and developmental screening

 

services for all program participants.

 

     (e) Referral services for families of program participants to

 

community social service agencies, including mental health

 

services, as appropriate.

 

     (f) Active and continuous involvement of the parents or

 

guardians of the program participants.

 

     (g) A plan to conduct and report annual great start readiness

 

program evaluations and continuous improvement plans using criteria


approved by the department.

 

     (h) Participation in a school readiness advisory committee

 

convened as a workgroup of the great start collaborative that

 

provides for the involvement of classroom teachers, parents or

 

guardians of program participants, and community, volunteer, and

 

social service agencies and organizations, as appropriate. The

 

advisory committee annually shall review and make recommendations

 

regarding the program components listed in this subsection. The

 

advisory committee also shall make recommendations to the great

 

start collaborative regarding other community services designed to

 

improve all children's school readiness.

 

     (i) The ongoing articulation of the kindergarten and first

 

grade programs offered by the program provider.

 

     (j) Participation in this state's great start to quality

 

process with a rating of at least 3 stars.

 

     (5) An application for funding under this section shall

 

provide for the following, in a form and manner determined by the

 

department:

 

     (a) Ensure compliance with all program components described in

 

subsection (4).

 

     (b) Except as otherwise provided in this subdivision, ensure

 

that at least 90% of the children participating in an eligible

 

great start readiness program for whom the intermediate district is

 

receiving funds under this section are children who live with

 

families with a household income that is equal to or less than 250%

 

of the federal poverty level. If the intermediate district

 

determines that all eligible children are being served and that


there are no children on the waiting list under section 39(1)(d)

 

who live with families with a household income that is equal to or

 

less than 250% of the federal poverty level, the intermediate

 

district may then enroll children who live with families with a

 

household income that is equal to or less than 300% of the federal

 

poverty level. The enrollment process shall consider income and

 

risk factors, such that children determined with higher need are

 

enrolled before children with lesser need. For purposes of this

 

subdivision, all age-eligible children served in foster care or who

 

are experiencing homelessness or who have individualized education

 

plans recommending placement in an inclusive preschool setting

 

shall be considered to live with families with household income

 

equal to or less than 250% of the federal poverty level regardless

 

of actual family income and shall be prioritized for enrollment

 

within the lowest quintile.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. A lead teacher must

 

have a valid teaching certificate with an early childhood (ZA or

 

ZS) endorsement or a bachelor's or higher degree in child

 

development or early child development childhood education with

 

specialization in preschool teaching. However, if an applicant

 

demonstrates to the department that it is unable to fully comply

 

with this subparagraph after making reasonable efforts to comply,

 

teachers who have significant but incomplete training in early

 

childhood education or child development may be used if the

 

applicant provides to the department, and the department approves,


a plan for each teacher to come into compliance with the standards

 

in this subparagraph. A teacher's compliance plan must be completed

 

within 2 years of the date of employment. Progress toward

 

completion of the compliance plan shall consist of at least 2

 

courses per calendar year.

 

     (ii) Paraprofessionals possessing proper training in early

 

childhood development, education, including an associate's degree

 

in early childhood education or child development or the

 

equivalent, or a child development associate (CDA) credential.

 

However, if an applicant demonstrates to the department that it is

 

unable to fully comply with this subparagraph after making

 

reasonable efforts to comply, the applicant may use

 

paraprofessionals who have completed at least 1 course that earns

 

college credit in early childhood education or child development if

 

the applicant provides to the department, and the department

 

approves, a plan for each paraprofessional to come into compliance

 

with the standards in this subparagraph. A paraprofessional's

 

compliance plan must be completed within 2 years of the date of

 

employment. Progress toward completion of the compliance plan shall

 

consist of at least 2 courses or 60 clock hours of training per

 

calendar year.

 

     (d) Include a program budget that contains only those costs

 

that are not reimbursed or reimbursable by federal funding, that

 

are clearly and directly attributable to the great start readiness

 

program, and that would not be incurred if the program were not

 

being offered. Eligible costs include transportation costs. The

 

program budget shall indicate the extent to which these funds will


supplement other federal, state, local, or private funds. Funds

 

received under this section shall not be used to supplant any

 

federal funds received by the applicant to serve children eligible

 

for a federally funded preschool program that has the capacity to

 

serve those children.

 

     (6) For a grant recipient that enrolls pupils in a school-day

 

program funded under this section, each child enrolled in the

 

school-day program shall be counted as 2 children served by the

 

program described in section 39 for purposes of determining the

 

number of children to be served and for determining the amount of

 

the grant award. A grant award shall not be increased solely on the

 

basis of providing a school-day program.

 

     (7) For a grant recipient that enrolls pupils in a GSRP/head

 

start blended program, the grant recipient shall ensure that all

 

head start and GSRP policies and regulations are applied to the

 

blended slots, with adherence to the highest standard from either

 

program, to the extent allowable under federal law.

 

     (8) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall designate an

 

early childhood coordinator, and may provide services directly or

 

may contract with 1 or more districts or public or private for-

 

profit or nonprofit providers that meet all requirements of

 

subsection (4).subsections (4) and (5).

 

     (9) Funds received under this section may be retained for

 

administrative services as follows:

 

     (a) For the portion of the total grant amount for which

 

services are provided directly by an intermediate district or


consortium of intermediate districts, the intermediate district or

 

consortium of intermediate districts may retain an amount equal to

 

not more than 7% of that portion of the grant amount.

 

     (b) For the portion of the total grant amount for which

 

services are contracted, the intermediate district or consortium of

 

intermediate districts receiving the grant may retain an amount

 

equal to not more than 4% of that portion of the grant amount and

 

the subrecipients engaged by the intermediate district to provide

 

program services may retain for administrative services an amount

 

equal to not more than 4% of that portion of the grant amount.

 

     (9) An intermediate district or consortium of intermediate

 

districts may retain for administrative services provided by the

 

intermediate district or consortium of intermediate districts an

 

amount not to exceed 4% of the grant amount. Expenses incurred by

 

subrecipients engaged by the intermediate district or consortium of

 

intermediate districts for directly running portions of the program

 

shall be considered program costs or a contracted program fee for

 

service.

 

     (10) An intermediate district or consortium of intermediate

 

districts may expend not more than 2% of the total grant amount for

 

outreach, recruiting, and public awareness of the program.

 

     (11) Each grant recipient shall enroll children identified

 

under subsection (5)(b) according to how far the child's household

 

income is below 250% of the federal poverty level by ranking each

 

applicant child's household income from lowest to highest and

 

dividing the applicant children into quintiles based on how far the

 

child's household income is below 250% of the federal poverty


level, and then enrolling children in the quintile with the lowest

 

household income before enrolling children in the quintile with the

 

next lowest household income until slots are completely filled. If

 

the grant recipient determines that all eligible children are being

 

served and that there are no children on the waiting list under

 

section 39(1)(d) who live with families with a household income

 

that is equal to or less than 250% of the federal poverty level,

 

the grant recipient may then enroll children who live with families

 

with a household income that is equal to or less than 300% of the

 

federal poverty level. The enrollment process shall consider income

 

and risk factors, such that children determined with higher need

 

are enrolled before children with lesser need. For purposes of this

 

subdivision, all age-eligible children served in foster care or who

 

are experiencing homelessness or who have individualized education

 

plans recommending placement in an inclusive preschool setting

 

shall be considered to live with families with household income

 

equal to or less than 250% of the federal poverty level regardless

 

of actual family income and shall be prioritized for enrollment

 

within the lowest quintile.

 

     (12) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall allow parents

 

of eligible children who are residents of the intermediate district

 

or within the consortium to choose a program operated by or

 

contracted with another intermediate district or consortium of

 

intermediate districts and shall pay to the educating intermediate

 

district or consortium the per-child amount attributable to each

 

child enrolled pursuant to this sentence, as determined under


section 39.enter into a written agreement regarding payment, in a

 

manner prescribed the department.

 

     (13) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall conduct a

 

local process to contract with interested and eligible public and

 

private for-profit and nonprofit community-based providers that

 

meet all requirements of subsection (4) for at least 30% of its

 

total slot allocation. For the purposes of this 30% allocation, an

 

intermediate district or consortium of intermediate districts may

 

count children served by a head start grantee or delegate in a

 

blended head start and great start readiness school-day program.

 

Children served in a program funded only through head start shall

 

not be counted toward this 30% allocation. The intermediate

 

district or consortium shall report to the department, in a manner

 

prescribed by the department, a detailed list of community-based

 

providers by provider type, including private for-profit, private

 

nonprofit, community college or university, head start grantee or

 

delegate, and district or intermediate district, and the number and

 

proportion of its total slot allocation allocated to each provider

 

as subrecipient. If the intermediate district or consortium is not

 

able to contract for at least 30% of its total slot allocation, the

 

grant recipient shall notify the department and, if the department

 

verifies that the intermediate district or consortium attempted to

 

contract for at least 30% of its total slot allocation and was not

 

able to do so, then the intermediate district or consortium may

 

retain and use all of its allocated slots as provided under this

 

section. To be able to use this exemption, the intermediate


district or consortium shall demonstrate to the department that the

 

intermediate district or consortium increased the percentage of its

 

total slot allocation for which it contracts with a community-based

 

provider and the intermediate district or consortium shall submit

 

evidence satisfactory to the department, and the department must be

 

able to verify this evidence, demonstrating that the intermediate

 

district or consortium took measures to contract for at least 30%

 

of its total slot allocation as required under this subsection,

 

including, but not limited to, at least all of the following

 

measures:

 

     (a) The intermediate district or consortium notified each

 

nonparticipating licensed child care center located in the service

 

area of the intermediate district or consortium at least twice

 

regarding the center's eligibility to participate, in a manner

 

prescribed by the department. One of these notifications may be

 

made electronically, but at least 1 of these notifications shall be

 

made via hard copy through the United States mail. At least 1 of

 

these notifications shall be made within 7 days after the

 

intermediate district or consortium receives notice from the

 

department of its slot allocations.

 

     (b) The intermediate district or consortium provided to each

 

nonparticipating licensed child care center located in the service

 

area of the intermediate district or consortium information

 

regarding great start readiness program requirements and a

 

description of the application and selection process for community-

 

based providers.

 

     (c) The intermediate district or consortium provided to the


public and to participating families a list of community-based

 

great start readiness program subrecipients with a great start to

 

quality rating of at least 3 stars.

 

     (14) If an intermediate district or consortium of intermediate

 

districts receiving a grant under this section fails to submit

 

satisfactory evidence to demonstrate its effort to contract for at

 

least 30% of its total slot allocation, as required under

 

subsection (1), the department shall reduce the slots allocated to

 

the intermediate district or consortium by a percentage equal to

 

the difference between the percentage of an intermediate district's

 

or consortium's total slot allocation awarded to community-based

 

providers and 30% of its total slot allocation.

 

     (15) In order to assist intermediate districts and consortia

 

in complying with the requirement to contract with community-based

 

providers for at least 30% of their total slot allocation, the

 

department shall do all of the following:

 

     (a) Ensure that a great start resource center or the

 

department provides each intermediate district or consortium

 

receiving a grant under this section with the contact information

 

for each licensed child care center located in the service area of

 

the intermediate district or consortium by March 1 of each year.

 

     (b) Provide, or ensure that an organization with which the

 

department contracts provides, a community-based provider with a

 

validated great start to quality rating within 90 days of the

 

provider's having submitted a request and self-assessment.

 

     (c) Ensure that all intermediate district, district, community

 

college or university, head start grantee or delegate, private for-


profit, and private nonprofit providers are subject to a single

 

great start to quality rating system. The rating system shall

 

ensure that regulators process all prospective providers at the

 

same pace on a first-come, first-served basis and shall not allow 1

 

type of provider to receive a great start to quality rating ahead

 

of any other type of provider.

 

     (d) Not later than November December 1 of each year, compile

 

the results of the information reported by each intermediate

 

district or consortium under subsection (10) and report to the

 

legislature a list by intermediate district or consortium with the

 

number and percentage of each intermediate district's or

 

consortium's total slot allocation allocated to community-based

 

providers by provider type, including private for-profit, private

 

nonprofit, community college or university, head start grantee or

 

delegate, and district or intermediate district.

 

     (16) A recipient of funds under this section shall report to

 

the department in a form and manner prescribed by the department

 

the number of children participating in the program who meet the

 

income eligibility criteria under subsection (5)(b) and the total

 

number of children participating in the program. For children

 

participating in the program who meet the income eligibility

 

criteria specified under subsection (5)(b), a recipient shall also

 

report whether or not a parent is available to provide care based

 

on employment status. For the purposes of this subsection,

 

"employment status" shall be defined by the department of health

 

and human services in a manner consistent with maximizing the

 

amount of spending that may be claimed for temporary assistance for


needy families maintenance of effort purposes.

 

     (17) As used in this section:

 

     (a) "GSRP/head start blended program" means a part-day program

 

funded under this section and a head start program, which are

 

combined for a school-day program.

 

     (b) "Part-day program" means a program that operates at least

 

4 days per week, 30 weeks per year, for at least 3 hours of

 

teacher-child contact time per day but for fewer hours of teacher-

 

child contact time per day than a school-day program.

 

     (c) "School-day program" means a program that operates for at

 

least the same length of day as a district's first grade program

 

for a minimum of 4 days per week, 30 weeks per year. A classroom

 

that offers a school-day program must enroll all children for the

 

school day to be considered a school-day program.

 

     (18) An intermediate district or consortium of intermediate

 

districts receiving funds under this section shall establish a

 

sliding scale of tuition rates based upon household income for

 

children participating in an eligible great start readiness program

 

who live with families with a household income that is more than

 

250% of the federal poverty level to be used by all of its

 

providers, as approved by the department. A grant recipient shall

 

charge tuition according to that sliding scale of tuition rates on

 

a uniform basis for any child who does not meet the income

 

eligibility requirements under this section.

 

     (19) From the amount appropriated in subsection (1), there is

 

allocated an amount not to exceed $10,000,000.00 for reimbursement

 

of transportation costs for children attending great start


readiness programs funded under this section. To receive

 

reimbursement under this subsection, not later than November 1,

 

2015, 2016, a program funded under this section that provides

 

transportation shall submit to the intermediate district that is

 

the fiscal agent for the program a projected transportation budget.

 

The amount of the reimbursement for transportation under this

 

subsection shall be no more than the projected transportation

 

budget or $150.00 multiplied by the number of slots funded for the

 

program under this section. If the amount allocated under this

 

subsection is insufficient to fully reimburse the transportation

 

costs for all programs that provide transportation and submit the

 

required information, the reimbursement shall be prorated in an

 

equal amount per slot funded. Payments shall be made to the

 

intermediate district that is the fiscal agent for each program,

 

and the intermediate district shall then reimburse the program

 

provider for transportation costs as prescribed under this

 

subsection.

 

     Sec. 32p. (1) From the school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$13,400,000.00 to intermediate districts for 2015-2016 2016-2017

 

for the purpose of providing early childhood funding to

 

intermediate school districts to support the activities under

 

subsection (2) and subsection (4), and to provide early childhood

 

programs for children from birth through age 8. The funding

 

provided to each intermediate district under this section shall be

 

determined by the distribution formula established by the

 

department's office of great start to provide equitable funding


statewide. In order to receive funding under this section, each

 

intermediate district shall provide an application to the office of

 

great start not later than September 15 of the immediately

 

preceding fiscal year indicating the activities planned to be

 

provided.

 

     (2) Each intermediate district or consortium of intermediate

 

districts that receives funding under this section shall convene a

 

local great start collaborative and a parent coalition. The goal of

 

each great start collaborative and parent coalition shall be to

 

ensure the coordination and expansion of local early childhood

 

infrastructure and programs that allow every child in the community

 

to achieve the following outcomes:

 

     (a) Children born healthy.

 

     (b) Children healthy, thriving, and developmentally on track

 

from birth to third grade.

 

     (c) Children developmentally ready to succeed in school at the

 

time of school entry.

 

     (d) Children prepared to succeed in fourth grade and beyond by

 

reading proficiently by the end of third grade.

 

     (3) Each local great start collaborative and parent coalition

 

shall convene workgroups to make recommendations about community

 

services designed to achieve the outcomes described in subsection

 

(2) and to ensure that its local great start system includes the

 

following supports for children from birth through age 8:

 

     (a) Physical health.

 

     (b) Social-emotional health.

 

     (c) Family supports and basic needs.


     (d) Parent education.

 

     (e) Early education, including the child's vocabulary

 

development, and care.

 

     (4) From the funds allocated in subsection (1), at least

 

$2,500,000.00 shall be used for the purpose of providing home

 

visits to at-risk children and their families. The home visits

 

shall be conducted as part of a locally coordinated, family-

 

centered, evidence-based, data-driven home visit strategic plan

 

that is approved by the department. The goals of the home visits

 

funded under this subsection shall be to improve school readiness ,

 

using evidence-based methods, including vocabulary development, to

 

reduce the number of pupils retained in grade level, and to reduce

 

the number of pupils requiring special education services. The

 

department shall coordinate the goals of the home visit strategic

 

plans approved under this subsection with other state agency home

 

visit programs in a way that strengthens Michigan's home visiting

 

infrastructure and maximizes federal funds available for the

 

purposes of at-risk family home visits. The coordination among

 

departments and agencies is intended to avoid duplication of state

 

services and spending, and should emphasize efficient service

 

delivery of home visiting programs.

 

     (5) Not later than December 1 of each year, each intermediate

 

district shall provide a report to the department detailing the

 

activities actually provided during the immediately preceding

 

school year and the families and children actually served. At a

 

minimum, the report shall include an evaluation of the services

 

provided with additional funding under subsection (4) for home


visits, using the goals identified in subsection (4) as the basis

 

for the evaluation, including the degree to which school readiness

 

was improved, any change in the number of pupils retained at grade

 

level, and any change in the number of pupils receiving special

 

education services. The department shall compile and summarize

 

these reports and submit its summary to the house and senate

 

appropriations subcommittees on school aid and to the house and

 

senate fiscal agencies not later than February 15 of each year.

 

     (6) An intermediate district or consortium of intermediate

 

districts that receives funding under this section may carry over

 

any unexpended funds received under this section into the next

 

fiscal year and may expend those unused funds through June 30 of

 

the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.

 

     Sec. 32q. From the state school aid fund allocation under

 

section 11, there is allocated to an eligible intermediate district

 

an amount equal to $175,000.00 in 2016-2017 for the purpose of this

 

section. An intermediate district receiving a grant under this

 

section shall partner with an early childhood collaborative to

 

conduct a pilot program as provided under this section. It is the

 

intent of the legislature that this is the first of 3 years of

 

funding, and that funding shall continue in 2017-2018 and 2018-

 

2019. Funding allocated to an intermediate district shall be used

 

in partnership with a collaborative to conduct a pilot program to

 

evaluate the relative impact on vulnerable children of 1 versus 2


years of preschool education. All of the following apply to the

 

pilot program funded under this section:

 

     (a) An eligible intermediate district is an intermediate

 

district that is located in a county with a population as of the

 

most recent federal decennial census that was greater than 500,000

 

but fewer than 800,000 and that has an early learning collaborative

 

located within its boundaries.

 

     (b) The funds shall be used for research, family coaching

 

support, administration, information systems, and evaluation.

 

     (c) In order to be eligible to receive the allocated funds,

 

the early learning collaborative, in partnership with the

 

intermediate district, shall provide the funding for all eligible

 

children included in the pilot program.

 

     (d) The early learning collaborative, in partnership with the

 

intermediate district, shall develop a 3-year pilot program under

 

the supervision of the office of great start in the department.

 

     (e) For a child to be eligible for participation in the pilot

 

program under this section, the child shall be 3 years of age as of

 

the date specified for determining a child's eligibility to attend

 

school under section 1147 of the revised school code, MCL 380.1147.

 

     (f) A child participating in the pilot program shall meet the

 

participant eligibility and prioritization guidelines as defined by

 

the department.

 

     (g) Notwithstanding section 17b, the department shall

 

distribute funds under this section not later than November 15 of

 

the fiscal year.

 

     (h) The early learning collaborative, in partnership with the


intermediate district, shall provide annual progress evaluations to

 

the office of great start.

 

     (i) By December 1, 2019, the early learning collaborative, in

 

partnership with the intermediate district, shall provide a pilot

 

program report and evaluation to the office of great start. The

 

office of great start shall review the pilot program report and

 

evaluation and, by February 15, 2020, provide a report to the

 

senate and house appropriations subcommittees on state school aid

 

and to the senate and house fiscal agencies of its evaluation of

 

the pilot program.

 

     Sec. 35. (1) The funds allocated under section 35a shall be

 

used for programs to ensure children are reading at grade level by

 

the end of grade 3. The superintendent shall designate staff or

 

contracted employees funded under section 35a as critical shortage.

 

Programs funded under section 35a are intended to ensure that this

 

state will be in the top 10 most improved states in grade 4 reading

 

proficiency by the 2019 National Assessment of Educational Progress

 

(NAEP) and will be in the top 10 states overall in grade 4 reading

 

proficiency by 2025.

 

     (2) From the general fund appropriation in section 11, there

 

is allocated to the department an amount not to exceed

 

$1,000,000.00 for 2015-2016 2016-2017 for implementation costs

 

associated with programs funded under section 35a.

 

     (3) From the amount allocated under subsection (2), there is

 

allocated an amount not to exceed $100,000.00 for the purpose of

 

performing an evaluation of the pilot programs under section 35a(2)

 

in a manner approved by the department. The evaluation report shall


include at least all of the following:

 

     (a) A description of the components of the pilot programs that

 

were effective in helping parents prepare their children for

 

success in school.

 

     (b) A description of any barriers that parents and their

 

children encountered that prevented them from participating in the

 

pilot programs.

 

     (c) An assessment of whether these pilot programs should be

 

expanded to other locations in the state.

 

     Sec. 35a. (1) From the appropriations in section 11, there is

 

allocated for 2015-2016 for the purposes of this section an amount

 

not to exceed $23,900,000.00 $19,000,000.00 from the state school

 

aid fund appropriation and an amount not to exceed $1,500,000.00

 

from the general fund appropriation. From the appropriations in

 

section 11, there is allocated for 2016-2017 for the purposes of

 

this section an amount not to exceed $22,900,000.00 from the state

 

school aid fund and an amount not to exceed $1,000,000.00 from the

 

general fund.

 

     (2) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $1,000,000.00 for 2015-2016 for

 

the purpose of conducting parent education pilot programs for

 

parents of children less than 4 years of age so that children are

 

developmentally ready to succeed in school at the time of school

 

entry. All of the following apply to programs funded under this

 

subsection:

 

     (a) The department shall develop a competitive application

 

process and method of grant distribution consistent with the


provisions of this subsection. The amount of a grant award to a

 

pilot program shall be an amount equal to the number of children

 

residing in the district or consortium of districts operating the

 

program who are younger than 4 years of age as of the date

 

specified for determining a child's eligibility to attend school

 

under section 1147 of the revised school code, MCL 380.1147,

 

multiplied by $120.00 per child or $130,000.00, whichever is less.

 

The department shall ensure that grants are awarded in each

 

prosperity region or subregion.

 

     (b) An application for a competitive grant under this

 

subsection shall be submitted by an intermediate district on behalf

 

of a district or consortium of districts within the intermediate

 

district. The application shall be submitted in a form and manner

 

approved by the department and shall contain at least the following

 

components:

 

     (i) A description of the program design including the names of

 

the district or consortium of districts that will operate the

 

program, the physical location of the program, and the anticipated

 

number of families that will be served.

 

     (ii) An assurance that the program will be supervised by a

 

teacher who has a valid teaching certificate with an early

 

childhood (ZA or ZS) endorsement, a valid teaching certificate in

 

career education with both a KH and VH endorsement, a bachelor's

 

degree in child development or early child development, or a

 

bachelor's degree related to adult learning.

 

     (iii) An estimate of the number of families residing in the

 

district or consortium of districts that will operate the pilot


program that have at least 1 child less than 4 years of age as of

 

the date specified for determining a child's eligibility to attend

 

school under section 1147 of the revised school code, MCL 380.1147.

 

     (iv) A description of the public awareness and outreach

 

efforts that will be made.

 

     (v) An assurance that the intermediate district and the

 

district or consortium of districts operating the program will

 

provide information in a form and manner as approved by the

 

department to allow for an evaluation of the pilot projects.

 

     (vi) A description of the sliding fee scale that will be

 

established for tuition, with fees reduced or waived for those

 

unable to pay.

 

     (vii) A budget for the program. A program may use not more

 

than 5% of a grant to administer the program.

 

     (c) To be eligible for a grant under this subsection, a

 

program shall provide at least 2 hours per week throughout the

 

school year for parents and their eligible children to participate

 

in parent education programs and meet at least the following

 

minimum requirements:

 

     (i) Require that parents be physically present in classes with

 

their children or be in concurrent classes.

 

     (ii) Use research-based information to educate parents about

 

the physical, cognitive, social, and emotional development of

 

children.

 

     (iii) Provide structured learning activities requiring

 

interaction between children and their parents.

 

     (iv) Provide structured learning activities for children that


promote positive interaction with their peers.

 

     (d) For a child to be eligible to participate in a program

 

under this subsection, the child shall be less than 4 years of age

 

as of the date specified for determining a child's eligibility to

 

attend school under section 1147 of the revised school code, MCL

 

380.1147.

 

     (2) (3) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $950,000.00 each fiscal year for

 

2015-2016 and for 2016-2017 for professional development purposes

 

under this subsection. This The 2016-2017 allocation represents the

 

first second of 2 years of funding for the purposes of this

 

subsection. All of the following apply to funding under this

 

subsection:

 

     (a) The department shall award grants to districts to support

 

professional development for educators in a department-approved

 

research-based training program related to current state literacy

 

standards for pupils in grades K to 3. The professional development

 

shall also include training in the use of screening and diagnostic

 

tools, progress monitoring, and intervention methods used to

 

address barriers to learning and delays in learning that are

 

diagnosed through the use of these tools. The department shall

 

determine the amount of the grant awards.

 

     (b) In addition to other methods of professional development

 

delivery, the department shall collaborate with the Michigan

 

Virtual University to provide this training online to all educators

 

of pupils in grades K to 3.

 

     (c) The funds allocated under this subsection for 2015-2016


are a work project appropriation, and any unexpended funds for

 

2015-2016 are carried forward into 2016-2017. The purpose of the

 

work project is to continue to implement the professional

 

development training described in this subsection. The estimated

 

completion date of the work project is September 30, 2017.

 

     (d) The funds allocated under this subsection for 2016-2017

 

are a work project appropriation, and any unexpended funds for

 

2016-2017 are carried forward into 2017-2018. The purpose of the

 

work project is to continue to implement the professional

 

development training described in this subsection. The estimated

 

completion date of the work project is September 30, 2018.

 

     (3) (4) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $1,450,000.00 each fiscal year

 

for 2015-2016 and for 2016-2017 for grants under this subsection.

 

This The 2016-2017 allocation represents the first second of 2

 

years of funding. All of the following apply to grants under this

 

subsection:

 

     (a) The department shall award grants to districts to

 

administer department-approved screening and diagnostic tools to

 

monitor the development of early literacy and early reading skills

 

of pupils in grades K to 3 and to support research-based

 

professional development for educators in administering screening

 

and diagnostic tools and in data interpretation of the results

 

obtained through the use of those tools for the purpose of

 

implementing a multi-tiered system of support to improve reading

 

proficiency among pupils in grades K to 3. The department shall

 

award grants to eligible districts in an amount determined by the


department.

 

     (b) A department-approved screening and diagnostic tool

 

administered by a district using funding under this section must

 

include all of the following components: phonemic awareness,

 

phonics, fluency, and comprehension. Further, all of the following

 

sub-skills must be assessed within each of these components:

 

     (i) Phonemic awareness - segmentation, blending, and sound

 

manipulation (deletion and substitution).

 

     (ii) Phonics - decoding (reading) and encoding (spelling).

 

     (iii) Fluency - reading rate, accuracy, and expression.

 

     (iv) Comprehension - making meaning of text.

 

     (c) (b) In addition to other methods of professional

 

development delivery, the department shall collaborate with the

 

Michigan Virtual University to provide this training online to all

 

educators of pupils in grades K to 3.

 

     (d) (c) The funds allocated under this subsection for 2015-

 

2016 are a work project appropriation, and any unexpended funds for

 

2015-2016 are carried forward into 2016-2017. The purpose of the

 

work project is to continue to implement the professional

 

development training described in this subsection. The estimated

 

completion date of the work project is September 30, 2017.

 

     (e) The funds allocated under this subsection for 2016-2017

 

are a work project appropriation, and any unexpended funds for

 

2016-2017 are carried forward into 2017-2018. The purpose of the

 

work project is to continue to implement the professional

 

development training described in this subsection. The estimated

 

completion date of the work project is September 30, 2018.


     (4) (5) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $3,000,000.00 each fiscal year

 

for 2015-2016 and for 2016-2017 for the purpose of providing early

 

literacy coaches at intermediate districts to assist teachers in

 

developing and implementing instructional strategies for pupils in

 

grades K to 3 so that pupils are reading at grade level by the end

 

of grade 3. All of the following apply to funding under this

 

subsection:

 

     (a) The department shall develop an application process

 

consistent with the provisions of this subsection. An application

 

shall provide assurances that literacy coaches funded under this

 

subsection are knowledgeable about at least the following:

 

     (i) Current state literacy standards for pupils in grades K to

 

3.

 

     (ii) Implementing an instructional delivery model based on

 

frequent use of formative, screening, and diagnostic tools, known

 

as a multi-tiered system of support, to determine individual

 

progress for pupils in grades K to 3 so that pupils are reading at

 

grade level by the end of grade 3.

 

     (iii) The use of data from diagnostic tools to determine the

 

necessary additional supports and interventions needed by

 

individual pupils in grades K to 3 in order to be reading at grade

 

level.

 

     (b) From the allocation under this subsection, the department

 

shall award grants to intermediate districts for the support of

 

early literacy coaches. An intermediate district must provide

 

matching funds for at least 50% of the cost of the literacy coach.


The department shall provide this funding in the following manner:

 

     (i) Each intermediate district shall be awarded grant funding

 

to support the cost of 1 early literacy coach in an equal amount

 

per early literacy coach, not to exceed $37,500.00.

 

     (ii) After distribution of the grant funding under

 

subparagraph (i), the department shall distribute the remainder of

 

grant funding for additional early literacy coaches in an amount

 

not to exceed $37,500.00 per early literacy coach. The number of

 

funded early literacy coaches for each intermediate district shall

 

be based on the percentage of the total statewide number of pupils

 

in grades K to 3 who meet the income eligibility standards for the

 

federal free and reduced-price lunch programs who are enrolled in

 

districts in the intermediate district. For each additional early

 

literacy coach funded under this subparagraph, the department shall

 

not make an award to an intermediate district under this

 

subparagraph in an amount that is less than the amount necessary to

 

pay 1/2 of the total cost of that additional early literacy coach.

 

     (c) The funds allocated under this subsection for 2015-2016

 

are a work project appropriation, and any unexpended funds for

 

2015-2016 are carried forward into 2016-2017. The purpose of the

 

work project is to continue to provide early literacy coaches as

 

described in this subsection. The estimated completion date of the

 

work project is September 30, 2017.

 

     (d) The funds allocated under this subsection for 2016-2017

 

are a work project appropriation, and any unexpended funds for

 

2016-2017 are carried forward into 2017-2018. The purpose of the

 

work project is to continue to implement the professional


development training described in this subsection. The estimated

 

completion date of the work project is September 30, 2018.

 

     (5) (6) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $17,500,000.00 $13,600,000.00 for

 

2015-2016 and an amount not to exceed $17,500,000.00 for 2016-2017

 

to districts that provide additional instructional time to those

 

pupils in grades K to 3 who have been identified by using

 

department-approved screening and diagnostic tools as needing

 

additional supports and interventions in order to be reading at

 

grade level by the end of grade 3. Additional instructional time

 

may be provided before, during, and after regular school hours or

 

as part of a year-round balanced school calendar. All of the

 

following apply to funding under this subsection:

 

     (a) In order to be eligible to receive funding, a district

 

shall demonstrate to the satisfaction of the department that the

 

district has done all of the following:

 

     (i) Implemented a multi-tiered system of support instructional

 

delivery model that is an evidence-based model that uses data-

 

driven problem solving to integrate academic and behavioral

 

instruction and that uses intervention delivered to all pupils in

 

varying intensities based on pupil needs. The multi-tiered system

 

of supports must provide at least all of the following essential

 

elements:

 

     (A) Implements effective instruction for all learners.

 

     (B) Intervenes early.

 

     (C) Provides a multi-tiered model of instruction and

 

intervention that provides the following: a core curriculum and


classroom interventions available to all pupils that meet the needs

 

of most pupils; targeted group interventions; and intense

 

individual interventions.

 

     (D) Monitors pupil progress to inform instruction.

 

     (E) Uses data to make instructional decisions.

 

     (F) Uses assessments including universal screening,

 

diagnostics, and progress monitoring.

 

     (G) Engages families and the community.

 

     (H) Implements evidence-based, scientifically validated,

 

instruction and intervention.

 

     (I) Implements instruction and intervention practices with

 

fidelity.

 

     (J) Uses a collaborative problem-solving model.

 

     (ii) Used department-approved research-based diagnostic tools

 

to identify individual pupils in need of additional instructional

 

time.

 

     (iii) Used a reading instruction method that focuses on the 5

 

fundamental building blocks of reading: phonics, phonemic

 

awareness, fluency, vocabulary, and comprehension and content

 

knowledge.

 

     (iv) Provided teachers of pupils in grades K to 3 with

 

research-based professional development in diagnostic data

 

interpretation.

 

     (b) Funding allocated under this subsection shall be

 

distributed to eligible districts by multiplying the number of

 

full-time-equivalent pupils in grade 1 in the district by $165.00.

 

     (c) If the funds allocated under this subsection are


insufficient to fully fund the payments under this subsection,

 

payments under this subsection shall be prorated on an equal per-

 

pupil basis based on grade 1 pupils.

 

     (6) (7) From the general fund money allocated in subsection

 

(1), the department shall allocate the amount of $1,000,000.00 each

 

fiscal year for 2015-2016 and for 2016-2017 to the Michigan

 

Education Corps. All of the following apply to funding under this

 

subsection:

 

     (a) By August 1 , 2016, of the applicable fiscal year, the

 

Michigan Education Corps shall provide a report concerning its use

 

of the funding to the senate and house appropriations subcommittees

 

on state school aid, the senate and house fiscal agencies, and the

 

senate and house caucus policy offices on outcomes and performance

 

measures of the Michigan Education Corps, including, but not

 

limited to, the degree to which the Michigan Education Corps's

 

replication of the Michigan Reading Corps program is demonstrating

 

sufficient efficacy and impact. The report must include data

 

pertaining to at least all of the following:

 

     (i) The current impact of the Michigan Reading Corps on this

 

state in terms of numbers of children and programs receiving

 

support. This portion of the report shall specify the number of

 

children tutored, including dosage and completion, and the

 

demographics of those children.

 

     (ii) Whether the assessments and interventions are implemented

 

with fidelity. This portion of the report shall include details on

 

the total number of assessments and interventions completed and the

 

range, median, mean, and standard deviation for all assessments.


     (iii) Whether the literacy improvement of children

 

participating in the Michigan Reading Corps is consistent with

 

expectations. This portion of the report shall detail at least all

 

of the following:

 

     (A) Growth rate by grade level, in comparison to targeted

 

growth rate.

 

     (B) Average linear growth rates.

 

     (C) Exit rates.

 

     (D) Percentage of children who exit who also meet or exceed

 

spring benchmarks.

 

     (iv) The impact of the Michigan Reading Corps on organizations

 

and stakeholders, including, but not limited to, school

 

administrators, internal coaches, and AmeriCorps members.

 

     (b) If the department determines that the Michigan Education

 

Corps has misused the funds allocated under this subsection, the

 

Michigan Education Corps shall reimburse this state for the amount

 

of state funding misused.

 

     (7) (8) From the general fund money allocated under subsection

 

(1), there is allocated to the department an amount not to exceed

 

$500,000.00 for 2015-2016 for the adoption of a certification test

 

to ensure that all newly certificated elementary teachers have the

 

skills to deliver evidence-based literacy instruction.

 

     Sec. 39. (1) An eligible applicant receiving funds under

 

section 32d shall submit an application, in a form and manner

 

prescribed by the department, by a date specified by the department

 

in the immediately preceding state fiscal year. The application

 

shall include a comprehensive needs assessment using aggregated


data from the applicant's entire service area and a community

 

collaboration plan that is endorsed by the local great start

 

collaborative and is part of the community's great start strategic

 

plan that includes, but is not limited to, great start readiness

 

program and head start providers, and shall identify all of the

 

following:

 

     (a) The estimated total number of children in the community

 

who meet the criteria of section 32d and how that calculation was

 

made.

 

     (b) The estimated number of children in the community who meet

 

the criteria of section 32d and are being served by other early

 

childhood development programs operating in the community, and how

 

that calculation was made.

 

     (c) The number of children the applicant will be able to serve

 

slots the applicant will be able to fill with children who meet the

 

criteria of section 32d including a verification of physical

 

facility and staff resources capacity.

 

     (d) The estimated number of slots that will remain unfilled

 

and children who meet the criteria of section 32d who will remain

 

unserved after the applicant and community early childhood programs

 

have met their funded enrollments. The applicant shall maintain a

 

waiting list of identified unserved eligible children who would be

 

served when openings are available.

 

     (2) After notification of funding allocations, an applicant

 

receiving funds under section 32d shall also submit an

 

implementation plan for approval, in a form and manner prescribed

 

by the department, by a date specified by the department, that


details how the applicant complies with the program components

 

established by the department pursuant to section 32d.

 

     (3) The number of prekindergarten children construed to be in

 

need of special readiness assistance under section 32d shall be

 

calculated for each applicant in the following manner: 1/2 of the

 

percentage of the applicant's pupils in grades 1 to 5 in all

 

districts served by the applicant who are eligible for free lunch,

 

as determined using the district's pupil membership count as of the

 

pupil membership count day in the school year prior to the fiscal

 

year for which the calculation is made, under the Richard B.

 

Russell national school lunch act, 42 USC 1751 to 1769i, shall be

 

multiplied by the average kindergarten enrollment of the districts

 

served by the applicant on the pupil membership count day of the 2

 

immediately preceding fiscal years. Each child construed to be in

 

need constitutes 1 slot.

 

     (4) The initial allocation for each fiscal year to each

 

eligible applicant under section 32d shall be determined by

 

multiplying the number of children slots determined by the formula

 

under subsection (3) or the number of children slots the applicant

 

indicates it will be able to serve fill under subsection (1)(c),

 

whichever is less, by $3,625.00 and shall be distributed among

 

applicants in decreasing order of concentration of eligible

 

children as determined by the formula under subsection (3). If the

 

number of children slots an applicant indicates it will be able to

 

serve fill under subsection (1)(c) includes children able to be

 

served in a school-day program, then the number able to be served

 

in of slots for a school-day program shall be doubled for the


purposes of making this calculation. of the lesser of the number of

 

children determined by the formula under subsection (3) and the

 

number of children the applicant indicates it will be able to serve

 

under subsection (1)(c) and determining the amount of the initial

 

allocation to the applicant under section 32d. A district may

 

contract with a head start agency to serve children enrolled in

 

head start with a school-day program by blending head start funds

 

with a part-day great start readiness program allocation. All head

 

start and great start readiness program policies and regulations

 

apply to the blended program.

 

     (5) If funds allocated for eligible applicants under section

 

32d remain after the initial allocation under subsection (4), the

 

allocation under this subsection shall be distributed to each

 

eligible applicant under section 32d in decreasing order of

 

concentration of eligible children as determined by the formula

 

under subsection (3). The allocation shall be determined by

 

multiplying the number of children slots in each district within

 

the applicant's service area served filled in the immediately

 

preceding fiscal year or the number of children slots the applicant

 

indicates it will be able to serve fill under subsection (1)(c),

 

whichever is less, minus the number of children slots for which the

 

applicant received funding in subsection (4) by $3,625.00.

 

     (6) If funds allocated for eligible applicants under section

 

32d remain after the allocations under subsections (4) and (5),

 

remaining funds shall be distributed to each eligible applicant

 

under section 32d in decreasing order of concentration of eligible

 

children as determined by the formula under subsection (3). If the


number of children slots the applicant indicates it will be able to

 

serve fill under subsection (1)(c) exceeds the number of children

 

slots for which funds have been received under subsections (4) and

 

(5), the allocation under this subsection shall be determined by

 

multiplying the number of children slots the applicant indicates it

 

will be able to serve fill under subsection (1)(c) less the number

 

of children slots for which funds have been received under

 

subsections (4) and (5) by $3,625.00 until the funds allocated for

 

eligible applicants in section 32d are distributed.

 

     (7) An applicant that offers supplementary child care funded

 

by funds other than those received under section 32d and therefore

 

offers full-day programs as part of its early childhood development

 

program shall receive priority in the allocation of funds under

 

section 32d over other eligible applicants. As used in this

 

subsection, "full-day program" means a program that provides

 

supplementary child care that totals at least 10 hours of

 

programming per day.

 

     (7) (8) If, taking into account the total amount to be

 

allocated to the applicant as calculated under this section, an

 

applicant determines that it is able to include additional eligible

 

children in the great start readiness program without additional

 

funds under section 32d, the applicant may include additional

 

eligible children but shall not receive additional funding under

 

section 32d for those children.

 

     Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated for 2015-2016 2016-2017 to districts,

 

intermediate districts, and other eligible entities all available


federal funding, estimated at $779,076,400.00 $821,939,900.00 for

 

the federal programs under the no child left behind act of 2001,

 

Public Law 107-110, or the every student succeeds act, Public Law

 

114-95. These funds are allocated as follows:

 

     (a) An amount estimated at $5,000,000.00 $2,000,000.00 to

 

provide students with drug- and violence-prevention programs and to

 

implement strategies to improve school safety, funded from DED-

 

OESE, drug-free schools and communities funds.

 

     (b) An amount estimated at $111,111,900.00 for the purpose of

 

preparing, training, and recruiting high-quality teachers and class

 

size reduction, funded from DED-OESE, improving teacher quality

 

funds.

 

     (c) An amount estimated at $12,200,000.00 for programs to

 

teach English to limited English proficient (LEP) children, funded

 

from DED-OESE, language acquisition state grant funds.

 

     (d) An amount estimated at $10,286,500.00 $250,000.00 for the

 

Michigan charter school subgrant program, funded from DED-OESE,

 

charter school funds.

 

     (e) An amount estimated at $3,000,000.00 for rural and low

 

income schools, funded from DED-OESE, rural and low income school

 

funds.

 

     (f) An amount estimated at $565,000,000.00 to provide

 

supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.

 

     (g) An amount estimated at $8,878,000.00 for the purpose of

 

identifying and serving migrant children, funded from DED-OESE,


title I, migrant education funds.

 

     (h) An amount estimated at $39,000,000.00 for the purpose of

 

providing high-quality extended learning opportunities, after

 

school and during the summer, for children in low-performing

 

schools, funded from DED-OESE, twenty-first century community

 

learning center funds.

 

     (i) An amount estimated at $24,600,000.00 to help support

 

local school improvement efforts, funded from DED-OESE, title I,

 

local school improvement grants.

 

     (j) An amount estimated at $55,900,000.00 to improve the

 

academic achievement of students, funded from DED-OESE, title IV,

 

student support and academic enrichment grants.

 

     (2) From the federal funds appropriated in section 11, there

 

is allocated for 2015-2016 2016-2017 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $30,800,000.00 for the following programs

 

that are funded by federal grants:

 

     (a) An amount estimated at $200,000.00 for acquired

 

immunodeficiency syndrome education grants, funded from HHS –

 

Centers for Disease Control and Prevention, AIDS funding.

 

     (b) An amount estimated at $2,600,000.00 to provide services

 

to homeless children and youth, funded from DED-OVAE, homeless

 

children and youth funds.

 

     (c) An amount estimated at $4,000,000.00 to provide mental

 

health, substance abuse, or violence prevention services to

 

students, funded from HHS-SAMHSA.

 

     (d) An amount estimated at $24,000,000.00 for providing career


and technical education services to pupils, funded from DED-OVAE,

 

basic grants to states.

 

     (3) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

     (4) For the purposes of applying for federal grants

 

appropriated under this article, the department shall allow an

 

intermediate district to submit a consortium application on behalf

 

of 2 or more districts with the agreement of those districts as

 

appropriate according to federal rules and guidelines.

 

     (5) For the purposes of funding federal title I grants under

 

this article, in addition to any other federal grants for which a

 

strict discipline academy is eligible, the department shall

 

allocate to strict discipline academies out of title I, part A

 

funds equal to what a strict discipline academy would have received

 

if included and calculated under title I, part D, or what it would

 

receive under the formula allocation under title I, part A,

 

whichever is greater.

 

     (6) (5) As used in this section:

 

     (a) "DED" means the United States Department of Education.

 

     (b) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.


     (c) "DED-OVAE" means the DED Office of Vocational and Adult

 

Education.

 

     (d) "HHS" means the United States Department of Health and

 

Human Services.

 

     (e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

 

Health Services Administration.

 

     Sec. 41. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,200,000.00 for 2015-2016 2016-

 

2017 to applicant districts and intermediate districts offering

 

programs of instruction for pupils of limited English-speaking

 

ability under section 1153 of the revised school code, MCL

 

380.1153. Reimbursement shall be on a per-pupil basis and shall be

 

based on the number of pupils of limited English-speaking ability

 

in membership on the pupil membership count day. Funds allocated

 

under this section shall be used solely for instruction in

 

speaking, reading, writing, or comprehension of English. A pupil

 

shall not be counted under this section or instructed in a program

 

under this section for more than 3 years.

 

     Sec. 51a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $901,946,100.00 $945,246,100.00

 

for 2014-2015 2015-2016 and an amount not to exceed $918,546,100.00

 

for 2015-2016 $973,046,100.00 for 2016-2017 from state sources and

 

all available federal funding under sections 611 to 619 of part B

 

of the individuals with disabilities education act, 20 USC 1411 to

 

1419, estimated at $370,000,000.00 each fiscal year for 2014-2015

 

and for 2015-2016 , and for 2016-2017, plus any carryover federal

 

funds from previous year appropriations. The allocations under this


subsection are for the purpose of reimbursing districts and

 

intermediate districts for special education programs, services,

 

and special education personnel as prescribed in article 3 of the

 

revised school code, MCL 380.1701 to 380.1766; net tuition payments

 

made by intermediate districts to the Michigan schools for the deaf

 

and blind; and special education programs and services for pupils

 

who are eligible for special education programs and services

 

according to statute or rule. For meeting the costs of special

 

education programs and services not reimbursed under this article,

 

a district or intermediate district may use money in general funds

 

or special education funds, not otherwise restricted, or

 

contributions from districts to intermediate districts, tuition

 

payments, gifts and contributions from individuals or other

 

entities, or federal funds that may be available for this purpose,

 

as determined by the intermediate district plan prepared pursuant

 

to article 3 of the revised school code, MCL 380.1701 to 380.1766.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

     (2) From the funds allocated under subsection (1), there is

 

allocated the amount necessary, estimated at $248,100,000.00 for

 

2014-2015 $263,500,000.00 for 2015-2016 and estimated at

 

$251,800,000.00 for 2015-2016, $271,600,000.00 for 2016-2017, for

 

payments toward reimbursing districts and intermediate districts

 

for 28.6138% of total approved costs of special education,

 

excluding costs reimbursed under section 53a, and 70.4165% of total


approved costs of special education transportation. Allocations

 

under this subsection shall be made as follows:

 

     (a) The initial amount allocated to a district under this

 

subsection toward fulfilling the specified percentages shall be

 

calculated by multiplying the district's special education pupil

 

membership, excluding pupils described in subsection (11), times

 

the foundation allowance under section 20 of the pupil's district

 

of residence plus the amount of the district's per-pupil allocation

 

under section 20m, not to exceed the basic foundation allowance

 

under section 20 for the current fiscal year, or, for a special

 

education pupil in membership in a district that is a public school

 

academy, times an amount equal to the amount per membership pupil

 

calculated under section 20(6) or, for a pupil described in this

 

subsection who is counted in membership in the education

 

achievement system, times an amount equal to the amount per

 

membership pupil under section 20(7). For an intermediate district,

 

the amount allocated under this subdivision toward fulfilling the

 

specified percentages shall be an amount per special education

 

membership pupil, excluding pupils described in subsection (11),

 

and shall be calculated in the same manner as for a district, using

 

the foundation allowance under section 20 of the pupil's district

 

of residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year, and that district's per-

 

pupil allocation under section 20m.

 

     (b) After the allocations under subdivision (a), districts and

 

intermediate districts for which the payments calculated under

 

subdivision (a) do not fulfill the specified percentages shall be


paid the amount necessary to achieve the specified percentages for

 

the district or intermediate district.

 

     (3) From the funds allocated under subsection (1), there is

 

allocated for 2014-2015 2015-2016 an amount not to exceed

 

$1,000,000.00 and there is allocated for 2015-2016 2016-2017 an

 

amount not to exceed $1,300,000.00 $1,100,000.00 to make payments

 

to districts and intermediate districts under this subsection. If

 

the amount allocated to a district or intermediate district for a

 

fiscal year under subsection (2)(b) is less than the sum of the

 

amounts allocated to the district or intermediate district for

 

1996-97 under sections 52 and 58, there is allocated to the

 

district or intermediate district for the fiscal year an amount

 

equal to that difference, adjusted by applying the same proration

 

factor that was used in the distribution of funds under section 52

 

in 1996-97 as adjusted to the district's or intermediate district's

 

necessary costs of special education used in calculations for the

 

fiscal year. This adjustment is to reflect reductions in special

 

education program operations or services between 1996-97 and

 

subsequent fiscal years. Adjustments for reductions in special

 

education program operations or services shall be made in a manner

 

determined by the department and shall include adjustments for

 

program or service shifts.

 

     (4) If the department determines that the sum of the amounts

 

allocated for a fiscal year to a district or intermediate district

 

under subsection (2)(a) and (b) is not sufficient to fulfill the

 

specified percentages in subsection (2), then the shortfall shall

 

be paid to the district or intermediate district during the fiscal


year beginning on the October 1 following the determination and

 

payments under subsection (3) shall be adjusted as necessary. If

 

the department determines that the sum of the amounts allocated for

 

a fiscal year to a district or intermediate district under

 

subsection (2)(a) and (b) exceeds the sum of the amount necessary

 

to fulfill the specified percentages in subsection (2), then the

 

department shall deduct the amount of the excess from the

 

district's or intermediate district's payments under this article

 

for the fiscal year beginning on the October 1 following the

 

determination and payments under subsection (3) shall be adjusted

 

as necessary. However, if the amount allocated under subsection

 

(2)(a) in itself exceeds the amount necessary to fulfill the

 

specified percentages in subsection (2), there shall be no

 

deduction under this subsection.

 

     (5) State funds shall be allocated on a total approved cost

 

basis. Federal funds shall be allocated under applicable federal

 

requirements, except that an amount not to exceed $3,500,000.00 may

 

be allocated by the department each fiscal year for 2014-2015 2015-

 

2016 and for 2015-2016 2016-2017 to districts, intermediate

 

districts, or other eligible entities on a competitive grant basis

 

for programs, equipment, and services that the department

 

determines to be designed to benefit or improve special education

 

on a statewide scale.

 

     (6) From the amount allocated in subsection (1), there is

 

allocated an amount not to exceed $2,200,000.00 each fiscal year

 

for 2014-2015 and for 2015-2016 and for 2016-2017 to reimburse 100%

 

of the net increase in necessary costs incurred by a district or


intermediate district in implementing the revisions in the

 

administrative rules for special education that became effective on

 

July 1, 1987. As used in this subsection, "net increase in

 

necessary costs" means the necessary additional costs incurred

 

solely because of new or revised requirements in the administrative

 

rules minus cost savings permitted in implementing the revised

 

rules. Net increase in necessary costs shall be determined in a

 

manner specified by the department.

 

     (7) For purposes of sections 51a to 58, all of the following

 

apply:

 

     (a) "Total approved costs of special education" shall be

 

determined in a manner specified by the department and may include

 

indirect costs, but shall not exceed 115% of approved direct costs

 

for section 52 and section 53a programs. The total approved costs

 

include salary and other compensation for all approved special

 

education personnel for the program, including payments for social

 

security and Medicare and public school employee retirement system

 

contributions. The total approved costs do not include salaries or

 

other compensation paid to administrative personnel who are not

 

special education personnel as defined in section 6 of the revised

 

school code, MCL 380.6. Costs reimbursed by federal funds, other

 

than those federal funds included in the allocation made under this

 

article, are not included. Special education approved personnel not

 

utilized full time in the evaluation of students or in the delivery

 

of special education programs, ancillary, and other related

 

services shall be reimbursed under this section only for that

 

portion of time actually spent providing these programs and


services, with the exception of special education programs and

 

services provided to youth placed in child caring institutions or

 

juvenile detention programs approved by the department to provide

 

an on-grounds education program.

 

     (b) Beginning with the 2004-2005 fiscal year, a district or

 

intermediate district that employed special education support

 

services staff to provide special education support services in

 

2003-2004 or in a subsequent fiscal year and that in a fiscal year

 

after 2003-2004 receives the same type of support services from

 

another district or intermediate district shall report the cost of

 

those support services for special education reimbursement purposes

 

under this article. This subdivision does not prohibit the transfer

 

of special education classroom teachers and special education

 

classroom aides if the pupils counted in membership associated with

 

those special education classroom teachers and special education

 

classroom aides are transferred and counted in membership in the

 

other district or intermediate district in conjunction with the

 

transfer of those teachers and aides.

 

     (c) If the department determines before bookclosing for a

 

fiscal year that the amounts allocated for that fiscal year under

 

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

 

will exceed expenditures for that fiscal year under subsections

 

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

 

district or intermediate district whose reimbursement for that

 

fiscal year would otherwise be affected by subdivision (b),

 

subdivision (b) does not apply to the calculation of the

 

reimbursement for that district or intermediate district and


reimbursement for that district or intermediate district shall be

 

calculated in the same manner as it was for 2003-2004. If the

 

amount of the excess allocations under subsections (2), (3), (6),

 

and (11) and sections 53a, 54, and 56 is not sufficient to fully

 

fund the calculation of reimbursement to those districts and

 

intermediate districts under this subdivision, then the

 

calculations and resulting reimbursement under this subdivision

 

shall be prorated on an equal percentage basis. Beginning in 2015-

 

2016, the amount of reimbursement under this subdivision for a

 

fiscal year shall not exceed $2,000,000.00 for any district or

 

intermediate district.

 

     (d) Reimbursement for ancillary and other related services, as

 

defined by R 340.1701c of the Michigan administrative code, shall

 

not be provided when those services are covered by and available

 

through private group health insurance carriers or federal

 

reimbursed program sources unless the department and district or

 

intermediate district agree otherwise and that agreement is

 

approved by the state budget director. Expenses, other than the

 

incidental expense of filing, shall not be borne by the parent. In

 

addition, the filing of claims shall not delay the education of a

 

pupil. A district or intermediate district shall be responsible for

 

payment of a deductible amount and for an advance payment required

 

until the time a claim is paid.

 

     (e) Beginning with calculations for 2004-2005, if an

 

intermediate district purchases a special education pupil

 

transportation service from a constituent district that was

 

previously purchased from a private entity; if the purchase from


the constituent district is at a lower cost, adjusted for changes

 

in fuel costs; and if the cost shift from the intermediate district

 

to the constituent does not result in any net change in the revenue

 

the constituent district receives from payments under sections 22b

 

and 51c, then upon application by the intermediate district, the

 

department shall direct the intermediate district to continue to

 

report the cost associated with the specific identified special

 

education pupil transportation service and shall adjust the costs

 

reported by the constituent district to remove the cost associated

 

with that specific service.

 

     (8) A pupil who is enrolled in a full-time special education

 

program conducted or administered by an intermediate district or a

 

pupil who is enrolled in the Michigan schools for the deaf and

 

blind shall not be included in the membership count of a district,

 

but shall be counted in membership in the intermediate district of

 

residence.

 

     (9) Special education personnel transferred from 1 district to

 

another to implement the revised school code shall be entitled to

 

the rights, benefits, and tenure to which the person would

 

otherwise be entitled had that person been employed by the

 

receiving district originally.

 

     (10) If a district or intermediate district uses money

 

received under this section for a purpose other than the purpose or

 

purposes for which the money is allocated, the department may

 

require the district or intermediate district to refund the amount

 

of money received. Money that is refunded shall be deposited in the

 

state treasury to the credit of the state school aid fund.


     (11) From the funds allocated in subsection (1), there is

 

allocated the amount necessary, estimated at $3,400,000.00 for

 

2014-2015 $3,800,000.00 for 2015-2016 and estimated at

 

$3,300,000.00 for 2015-2016, $3,700,000.00 for 2016-2017, to pay

 

the foundation allowances for pupils described in this subsection.

 

The allocation to a district under this subsection shall be

 

calculated by multiplying the number of pupils described in this

 

subsection who are counted in membership in the district times sum

 

of the foundation allowance under section 20 of the pupil's

 

district of residence plus the amount of the district's per-pupil

 

allocation under section 20m, not to exceed the basic foundation

 

allowance under section 20 for the current fiscal year, or, for a

 

pupil described in this subsection who is counted in membership in

 

a district that is a public school academy, times an amount equal

 

to the amount per membership pupil under section 20(6) or, for a

 

pupil described in this subsection who is counted in membership in

 

the education achievement system, times an amount equal to the

 

amount per membership pupil under section 20(7). The allocation to

 

an intermediate district under this subsection shall be calculated

 

in the same manner as for a district, using the foundation

 

allowance under section 20 of the pupil's district of residence,

 

not to exceed the basic foundation allowance under section 20 for

 

the current fiscal year, and that district's per-pupil allocation

 

under section 20m. This subsection applies to all of the following

 

pupils:

 

     (a) Pupils described in section 53a.

 

     (b) Pupils counted in membership in an intermediate district


who are not special education pupils and are served by the

 

intermediate district in a juvenile detention or child caring

 

facility.

 

     (c) Pupils with an emotional impairment counted in membership

 

by an intermediate district and provided educational services by

 

the department of health and human services.

 

     (12) If it is determined that funds allocated under subsection

 

(2) or (11) or under section 51c will not be expended, funds up to

 

the amount necessary and available may be used to supplement the

 

allocations under subsection (2) or (11) or under section 51c in

 

order to fully fund those allocations. After payments under

 

subsections (2) and (11) and section 51c, the remaining

 

expenditures from the allocation in subsection (1) shall be made in

 

the following order:

 

     (a) 100% of the reimbursement required under section 53a.

 

     (b) 100% of the reimbursement required under subsection (6).

 

     (c) 100% of the payment required under section 54.

 

     (d) 100% of the payment required under subsection (3).

 

     (e) 100% of the payments under section 56.

 

     (13) The allocations under subsections (2), (3), and (11)

 

shall be allocations to intermediate districts only and shall not

 

be allocations to districts, but instead shall be calculations used

 

only to determine the state payments under section 22b.

 

     (14) If a public school academy enrolls pursuant to this

 

section a pupil who resides outside of the intermediate district in

 

which the public school academy is located and who is eligible for

 

special education programs and services according to statute or


rule, or who is a child with disabilities, as defined under the

 

individuals with disabilities education act, Public Law 108-446,

 

the provision of special education programs and services and the

 

payment of the added costs of special education programs and

 

services for the pupil are the responsibility of the district and

 

intermediate district in which the pupil resides unless the

 

enrolling district or intermediate district has a written agreement

 

with the district or intermediate district in which the pupil

 

resides or the public school academy for the purpose of providing

 

the pupil with a free appropriate public education and the written

 

agreement includes at least an agreement on the responsibility for

 

the payment of the added costs of special education programs and

 

services for the pupil.

 

     (15) It is the intent of the legislature that, beginning

 

Beginning in 2016-2017, a district, public school academy, or

 

intermediate district that fails to comply with subsection (14) or

 

with the requirements of federal regulations regarding the

 

treatment of public school academies and public school academy

 

pupils for the purposes of special education, 34 CFR 300.209,

 

forfeits from its total state aid an amount equal to 10% of its

 

total state aid.

 

     Sec. 51c. As required by the court in the consolidated cases

 

known as Durant v State of Michigan, Michigan supreme court docket

 

no. 104458-104492, from the allocation under section 51a(1), there

 

is allocated each fiscal year for 2014-2015 2015-2016 and for 2015-

 

2016 2016-2017 the amount necessary, estimated at $597,300,000.00

 

for 2014-2015 $624,800,000.00 for 2015-2016 and estimated at


$610,000,000.00 for 2015-2016, $644,500,000.00 for 2016-2017, for

 

payments to reimburse districts for 28.6138% of total approved

 

costs of special education excluding costs reimbursed under section

 

53a, and 70.4165% of total approved costs of special education

 

transportation. Funds allocated under this section that are not

 

expended in the state fiscal year for which they were allocated, as

 

determined by the department, may be used to supplement the

 

allocations under sections 22a and 22b in order to fully fund those

 

calculated allocations for the same fiscal year.

 

     Sec. 51d. (1) From the federal funds appropriated in section

 

11, there is allocated for 2015-2016, 2016-2017, all available

 

federal funding, estimated at $71,000,000.00, for special education

 

programs and services that are funded by federal grants. All

 

federal funds allocated under this section shall be distributed in

 

accordance with federal law. Notwithstanding section 17b, payments

 

of federal funds to districts, intermediate districts, and other

 

eligible entities under this section shall be paid on a schedule

 

determined by the department.

 

     (2) From the federal funds allocated under subsection (1), the

 

following amounts are allocated for 2015-2016:2016-2017:

 

     (a) An amount estimated at $14,000,000.00 for handicapped

 

infants and toddlers, funded from DED-OSERS, handicapped infants

 

and toddlers funds.

 

     (b) An amount estimated at $12,000,000.00 for preschool grants

 

(Public Law 94-142), funded from DED-OSERS, handicapped preschool

 

incentive funds.

 

     (c) An amount estimated at $45,000,000.00 for special


education programs funded by DED-OSERS, handicapped program,

 

individuals with disabilities act funds.

 

     (3) As used in this section, "DED-OSERS" means the United

 

States Department of Education Office of Special Education and

 

Rehabilitative Services.

 

     Sec. 53a. (1) For districts, reimbursement for pupils

 

described in subsection (2) shall be 100% of the total approved

 

costs of operating special education programs and services approved

 

by the department and included in the intermediate district plan

 

adopted pursuant to article 3 of the revised school code, MCL

 

380.1701 to 380.1766, minus the district's foundation allowance

 

calculated under section 20 and minus the district's per-pupil

 

allocation under section 20m. For intermediate districts,

 

reimbursement for pupils described in subsection (2) shall be

 

calculated in the same manner as for a district, using the

 

foundation allowance under section 20 of the pupil's district of

 

residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year, and that district's per-

 

pupil allocation under section 20m.

 

     (2) Reimbursement under subsection (1) is for the following

 

special education pupils:

 

     (a) Pupils assigned to a district or intermediate district

 

through the community placement program of the courts or a state

 

agency, if the pupil was a resident of another intermediate

 

district at the time the pupil came under the jurisdiction of the

 

court or a state agency.

 

     (b) Pupils who are residents of institutions operated by the


department of health and human services.

 

     (c) Pupils who are former residents of department of community

 

health institutions for the developmentally disabled who are placed

 

in community settings other than the pupil's home.

 

     (d) Pupils enrolled in a department-approved on-grounds

 

educational program longer than 180 days, but not longer than 233

 

days, at a residential child care institution, if the child care

 

institution offered in 1991-92 an on-grounds educational program

 

longer than 180 days but not longer than 233 days.

 

     (e) Pupils placed in a district by a parent for the purpose of

 

seeking a suitable home, if the parent does not reside in the same

 

intermediate district as the district in which the pupil is placed.

 

     (3) Only those costs that are clearly and directly

 

attributable to educational programs for pupils described in

 

subsection (2), and that would not have been incurred if the pupils

 

were not being educated in a district or intermediate district, are

 

reimbursable under this section.

 

     (4) The costs of transportation shall be funded under this

 

section and shall not be reimbursed under section 58.

 

     (5) Not more than $10,500,000.00 of the allocation for 2015-

 

2016 2016-2017 in section 51a(1) shall be allocated under this

 

section.

 

     Sec. 54. Each intermediate district shall receive an amount

 

per-pupil for each pupil in attendance at the Michigan schools for

 

the deaf and blind. The amount shall be proportionate to the total

 

instructional cost at each school. Not more than $1,688,000.00 of

 

the allocation for 2015-2016 2016-2017 in section 51a(1) shall be


allocated under this section.

 

     Sec. 54b. (1) From the general fund appropriation in section

 

11, there is allocated an amount not to exceed $1,125,000.00 for

 

2016-2017 to begin implementation of the recommendations of the

 

special education reform task force published in January 2016.

 

     (2) From the allocation in subsection (1), there is allocated

 

for 2016-2017 an amount not to exceed $625,000.00 for the purpose

 

of piloting statewide implementation of the Michigan Integrated

 

Behavior and Learning Support Initiative (MiBLSI), a nationally

 

recognized program that includes positive behavioral intervention

 

and supports and provides a statewide structure to support local

 

initiatives for an integrated behavior and reading program. With

 

the assistance of the intermediate districts involved in MiBLSI,

 

the department shall identify at least 3 intermediate districts to

 

participate in the pilot to ensure that MiBLSI can be implemented

 

statewide with fidelity and sustainability. In addition, the

 

department shall identify an intermediate district to act as a

 

fiscal agent for these funds.

 

     (3) From the allocation in subsection (1), there is allocated

 

for 2016-2017 an amount not to exceed $500,000.00 for the purpose

 

of providing training to intermediate districts and districts

 

related to the safe implementation of emergency restraints and

 

seclusion. The department shall develop and implement a training

 

program that is based on the state board's adopted standards and on

 

any other legislation enacted by the legislature regarding the

 

emergency use of seclusion and restraint.

 

     Sec. 55. (1) From the money appropriated in section 11, there


is allocated an amount not to exceed $150,000.00 for 2015-2016

 

2016-2017 to Michigan State University, Department of Epidemiology,

 

for a study of the Conductive Learning Center located at Aquinas

 

College. This funding shall be used to develop and implement an

 

evaluation of the effectiveness of conductive education for

 

children with cerebral palsy. The evaluation shall be

 

multidimensional and shall include a control group of children with

 

cerebral palsy not enrolled in conductive education. It should

 

include an assessment of the motor system itself as well as the

 

impact of conductive education on each of the following:

 

     (a) The acquisition of skills permitting complex motor

 

functions.

 

     (b) The performance of tasks essential to daily living.

 

     (c) The attitudes and feelings of both children and parents.

 

     (d) The long-term need for special education for children with

 

cerebral palsy.

 

     (2) It is the intent of the legislature that this This funding

 

is for the first second of 2 years of funding for this purpose.

 

     Sec. 56. (1) For the purposes of this section:

 

     (a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district.

 

     (b) "Millage levied" means the millage levied for special

 

education pursuant to part 30 of the revised school code, MCL

 

380.1711 to 380.1743, including a levy for debt service

 

obligations.


     (c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district, except that if a

 

district has elected not to come under part 30 of the revised

 

school code, MCL 380.1711 to 380.1743, membership and taxable value

 

of the district shall not be included in the membership and taxable

 

value of the intermediate district.

 

     (2) From the allocation under section 51a(1), there is

 

allocated an amount not to exceed $37,758,100.00 each fiscal year

 

for 2015-2016 and for 2016-2017 to reimburse intermediate districts

 

levying millages for special education pursuant to part 30 of the

 

revised school code, MCL 380.1711 to 380.1743. The purpose, use,

 

and expenditure of the reimbursement shall be limited as if the

 

funds were generated by these millages and governed by the

 

intermediate district plan adopted pursuant to article 3 of the

 

revised school code, MCL 380.1701 to 380.1766. As a condition of

 

receiving funds under this section, an intermediate district

 

distributing any portion of special education millage funds to its

 

constituent districts shall submit for departmental approval and

 

implement a distribution plan.

 

     (3) Reimbursement for those millages levied in 2014-2015 shall

 

be made in 2015-2016 at an amount per 2014-2015 membership pupil

 

computed by subtracting from $174,400.00 $175,300.00 the 2014-2015

 

taxable value behind each membership pupil and multiplying the

 

resulting difference by the 2014-2015 millage levied.

 

     (4) Reimbursement for those millages levied in 2015-2016 shall

 

be made in 2016-2017 at an amount per 2015-2016 membership pupil

 

computed by subtracting from $179,600.00 the 2015-2016 taxable


value behind each membership pupil and multiplying the resulting

 

difference by the 2015-2016 millage levied.

 

     (5) (4) The amount paid to a single intermediate district

 

under this section shall not exceed 62.9% of the total amount

 

allocated under subsection (2).

 

     (6) (5) The amount paid to a single intermediate district

 

under this section shall not be less than 75% of the amount

 

allocated to the intermediate district under this section for the

 

immediately preceding fiscal year.

 

     Sec. 61a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $36,611,300.00 for 2015-2016

 

2016-2017 to reimburse on an added cost basis districts, except for

 

a district that served as the fiscal agent for a vocational

 

education consortium in the 1993-94 school year, and secondary area

 

vocational-technical education centers for secondary-level career

 

and technical education programs according to rules approved by the

 

superintendent. Applications for participation in the programs

 

shall be submitted in the form prescribed by the department. The

 

department shall determine the added cost for each career and

 

technical education program area. The allocation of added cost

 

funds shall be prioritized based on the capital and program

 

expenditures needed to operate the career and technical education

 

programs provided; the number of pupils enrolled; the advancement

 

of pupils through the instructional program; the existence of an

 

articulation agreement with at least 1 postsecondary institution

 

that provides pupils with opportunities to earn postsecondary

 

credit during the pupil's participation in the career and technical


education program and transfers those credits to the postsecondary

 

institution upon completion of the career and technical education

 

program; and the program rank in student placement, job openings,

 

and wages, ; and the length of the training period provided, and

 

shall not exceed 75% of the added cost of any program.

 

Notwithstanding any rule or department determination to the

 

contrary, when determining a district's allocation or the formula

 

for making allocations under this section, the department shall

 

include the participation of pupils in grade 9 in all of those

 

determinations and in all portions of the formula. With the

 

approval of the department, the board of a district maintaining a

 

secondary career and technical education program may offer the

 

program for the period from the close of the school year until

 

September 1. The program shall use existing facilities and shall be

 

operated as prescribed by rules promulgated by the superintendent.

 

     (2) Except for a district that served as the fiscal agent for

 

a vocational education consortium in the 1993-94 school year,

 

districts and intermediate districts shall be reimbursed for local

 

career and technical education administration, shared time career

 

and technical education administration, and career education

 

planning district career and technical education administration.

 

The definition of what constitutes administration and reimbursement

 

shall be pursuant to guidelines adopted by the superintendent. Not

 

more than $800,000.00 of the allocation in subsection (1) shall be

 

distributed under this subsection.

 

     (3) A career and technical education program funded under this

 

section may provide an opportunity for participants who are


eligible to be funded under section 107 to enroll in the career and

 

technical education program funded under this section if the

 

participation does not occur during regular school hours.

 

      (4) In addition to the money allocated under subsection (1),

 

from the general fund money appropriated in section 11, there is

 

allocated for 2016-2017 an amount not to exceed $79,000.00 to an

 

eligible Michigan-approved 501(c)(3) organization for the purposes

 

of teaching or training restaurant management and culinary arts for

 

career and professional development. The department shall oversee

 

funds distributed to an eligible grantee under this section. As

 

used in this subsection, "eligible Michigan-approved 501(c)(3)

 

organization" means an organization that is exempt from taxation

 

under section 501(c)(3) of the internal revenue code of 1986, 26

 

USC 501, that provides curriculum and training to state-approved

 

career and technology education programs with classification of

 

instructional programs (CIP) codes in the 12.05XX category, and

 

that administers national certification for the purpose of

 

restaurant management and culinary arts for career and professional

 

development.

 

     Sec. 61b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $10,000,000.00 $1,000,000.00 for

 

2015-2016 and there is allocated an amount not to exceed

 

$9,000,000.00 for 2016-2017 for CTE early/middle college and CTE

 

dual enrollment programs authorized under this section. The purpose

 

of these programs is to increase the number of Michigan residents

 

with high-quality degrees or credentials, and to increase the

 

number of students who are college and career ready upon high


school graduation.

 

     (2) 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 state-approved

 

CTE early/middle college and CTE dual enrollment programs in each

 

of the prosperity regions and subregions identified by the

 

department. An intermediate district shall not use more than 5% of

 

the funds allocated under this subsection for administrative costs

 

for serving as the fiscal agent.

 

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

 

must agree to do all of the following in a form and manner

 

determined by the department:

 

     (a) Distribute funds to eligible CTE early/middle college and

 

CTE dual enrollment programs in a prosperity region or subregion as

 

described in this section.

 

     (b) Collaborate with the talent district career council that

 

is located in the prosperity region or subregion to develop a

 

regional strategic plan under subsection (4) that aligns CTE

 

programs and services into an efficient and effective delivery

 

system for high school students.

 

     (c) Implement a regional process to rank career clusters in

 

the prosperity region or subregion as described under subsection

 

(4). Regional processes shall be approved by the department before

 

the ranking of career clusters.

 

     (d) Report CTE early/middle college and CTE dual enrollment

 

program and student data and information as prescribed by the

 

department.


     (4) A regional strategic plan must be approved by the talent

 

district career council before submission to the department. A

 

regional strategic plan shall include, but not be limited to, the

 

following:

 

     (a) An identification of regional employer need based on a

 

ranking of all career clusters in the prosperity region or

 

subregion ranked by 10-year job openings projections and median

 

wage for each standard occupational code in each career cluster as

 

obtained from the United States Bureau of Labor Statistics.

 

Standard occupational codes within high-ranking clusters also may

 

be further ranked by median wage. The rankings shall be reviewed by

 

the talent district career council located in the prosperity region

 

or subregion and modified if necessary to accurately reflect

 

employer demand for talent in the prosperity region or subregion. A

 

talent district career council shall document that it has conducted

 

this review and certify that it is accurate. These career cluster

 

rankings shall be determined and updated once every 3 4 years.

 

     (b) An identification of educational entities in the

 

prosperity region or subregion that will provide eligible CTE

 

early/middle college and CTE dual enrollment programs including

 

districts, intermediate districts, postsecondary institutions, and

 

noncredit occupational training programs leading to an industry-

 

recognized credential.

 

     (c) A strategy to inform parents and students of CTE

 

early/middle college and CTE dual enrollment programs in the

 

prosperity region or subregion.

 

     (d) Any other requirements as defined by the department.


     (5) An eligible CTE early/middle college program is a 5-year

 

high school program that meets all of the following:

 

     (a) Has been identified in the highest 5 career cluster

 

rankings in any of the 10 regional strategic plans jointly approved

 

by the Michigan talent investment agency in the department of

 

talent and economic development and the department.

 

     (b) Has a coherent sequence of courses that will allow a

 

student to earn a high school diploma and achieve at least 1 of the

 

following in a specific career cluster:

 

     (i) An associate degree.

 

     (ii) An industry-recognized technical certification approved

 

by the Michigan talent investment agency in the department of

 

talent and economic development.

 

     (iii) Up to 60 transferable college credits.

 

     (iv) Participation in a registered apprenticeship.

 

     (c) Is aligned with the Michigan merit curriculum.

 

     (d) Has an articulation agreement with at least 1

 

postsecondary institution that provides students with opportunities

 

to receive postsecondary credits during the student's participation

 

in the CTE early/middle college or CTE dual enrollment program and

 

transfers those credits to the postsecondary institution upon

 

completion of the CTE early/middle college or CTE dual enrollment

 

program.

 

     (e) Provides instruction that is supervised, directed, or

 

coordinated by an appropriately certificated CTE teacher or, for

 

concurrent enrollment courses, a postsecondary faculty member.

 

     (f) Provides for highly integrated student support services


that include at least the following:

 

     (i) Teachers as academic advisors.

 

     (ii) Supervised course selection.

 

     (iii) Monitoring of student progress and completion.

 

     (iv) Career planning services provided by a local one-stop

 

service center as described in the Michigan works one-stop service

 

center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a

 

high school counselor or advisor.

 

     (g) Has courses that are taught on a college campus, are

 

college courses offered at the high school and taught by college

 

faculty, or are courses taught in combination with online

 

instruction.

 

     (6) Funds to eligible CTE early/middle college and CTE dual

 

enrollment programs shall be distributed as follows:

 

     (a) The department shall calculate statewide average CTE costs

 

per full-time equated pupil for each career cluster CIP code

 

program by dividing total prior year statewide costs for each

 

career cluster CIP code program by prior year full-time equated

 

pupils for each career cluster.CIP code program.

 

     (b) Distribution to each eligible CTE early/middle college or

 

CTE dual enrollment program shall be the product of 50% of CTE

 

costs per full-time equated pupil times the current year full-time

 

equated pupil enrollment of each career cluster in an eligible CTE

 

early/middle college or CTE dual enrollment program.

 

     (7) In order to receive funds under this section, a CTE

 

early/middle college or CTE dual enrollment program shall furnish

 

to the intermediate district that is the fiscal agent identified in


subsection (1), 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.

 

     (8) There is allocated from the funds under subsection (1) an

 

amount not to exceed $500,000.00 each fiscal year for 2015-2016 and

 

for 2016-2017 for grants to intermediate districts or consortia of

 

intermediate districts for the purpose of planning for new or

 

expanded early middle college programs. Applications for grants

 

shall be submitted in a form and manner determined by the

 

department. The amount of a grant under this subsection shall not

 

exceed $50,000.00. To be eligible for a grant under this

 

subsection, an intermediate district or consortia of intermediate

 

districts must provide matching funds equal to the grant received

 

under this subsection. Notwithstanding section 17b, payments under

 

this subsection may be made as determined by the department.

 

     (9) (8) Funds distributed under this section may be used to

 

fund program expenditures that would otherwise be paid from

 

foundation allowances. A program receiving funding under section

 

61a may receive funding under this section for allowable costs that

 

exceed the reimbursement the program received under section 61a.

 

The combined payments received by a program under section 61a and

 

this section shall not exceed the total allowable costs of the

 

program. A program provider shall not use more than 5% of the funds

 

allocated under this section to the program for administrative


costs.

 

     (10) (9) If the allocation under subsection (1) is

 

insufficient to fully fund payments as otherwise calculated under

 

this section, the department shall prorate payments under this

 

section on an equal percentage basis.

 

     (11) (10) If pupils enrolled in a career cluster in an

 

eligible CTE early/middle college or CTE dual enrollment program

 

qualify to be reimbursed under this section, those pupils continue

 

to qualify for reimbursement until graduation, even if the career

 

cluster is no longer identified as being in the highest 5 career

 

cluster rankings.

 

     (12) It is the intent of the legislature to provide funds in

 

2017-2018 to reimburse districts with early/middle college programs

 

for the added costs of providing both a high school diploma and an

 

associate's degree, industry-recognized certification, up to 60

 

transferable college credits, or participation in a registered

 

apprenticeship in less than 5 years.

 

     (13) (11) As used in this section:

 

     (a) "Allowable costs" means those costs directly attributable

 

to the program as jointly determined by the Michigan talent

 

investment agency and the department.

 

     (b) "CIP" means classification of instructional programs.

 

     (c) (b) "CTE" means career and technical education programs.

 

     (d) "CTE dual enrollment program" means a 4-year high school

 

program of postsecondary courses offered by eligible postsecondary

 

educational institutions that leads to an industry-recognized

 

certification or degree.


     (e) "Early/middle college program" means a 5-year high school

 

program.

 

     (f) "Eligible postsecondary educational institution" means

 

that term as defined in section 3 of the career and technical

 

preparation act, 2000 PA 258, MCL 388.1903.

 

     (g) (c) "Talent district career council" means an advisory

 

council to the local workforce development boards located in a

 

prosperity region consisting of educational, employer, labor, and

 

parent representatives.

 

     Sec. 61c. (1) From the general fund appropriation in section

 

11, there is allocated for 2016-2017 an amount not to exceed

 

$3,000,000.00 to career education planning districts for the CTE

 

skilled trades initiative under this section.

 

     (2) To be eligible to receive funding under this section, each

 

CEPD shall apply in a form and manner determined by the department.

 

Funding to each CEPD shall be equal to the quotient of the

 

allocation under subsection (1) and the sum of the number of

 

cooperating educational policy districts applying for funding under

 

this section.

 

     (3) The funding allocated to each CEPD shall be used to update

 

equipment in current CTE programs that are supporting and driving

 

economic development in their individual communities, or for new

 

and emerging certified CTE programs to allow CEPD administrators to

 

provide programming in communities that will enhance economic

 

development. The funding for equipment should be used to support

 

and enhance community areas that have sustained job growth, and act

 

as a commitment to build a more qualified and skilled workforce.


     (4) The allocation of funds at the local level shall be

 

determined by CEPD administrators using data from the state,

 

region, and local sources to make well-informed decisions on

 

program equipment improvements. Grants awarded by CEPD

 

administrators for capital infrastructure shall be used to ensure

 

that CTE programs can deliver educational programs in high-wage,

 

high-skill, and high-demand occupations. Each CEPD shall continue

 

to ensure that program advisory boards make recommendations on

 

needed improvements for equipment that support job growth and job

 

skill development and retention for both the present and the

 

future.

 

     (5) Not later than September 15 of each fiscal year, each CEPD

 

receiving funding under this section shall annually report to the

 

department, the senate and house appropriations subcommittees on

 

state school aid, and the senate and house fiscal agencies and

 

legislature on equipment purchased under this section. In addition,

 

the report shall identify growth data on program involvement,

 

retention, and development of student skills.

 

     (6) In addition to the funds allocated under subsection (1),

 

from the funds appropriated under section 11, there is allocated

 

for 2016-2017 an amount not to exceed $200,000.00 to a district to

 

support a mechatronics program that operated in 2015-2016 for

 

updating mechatronics program equipment. To be eligible to receive

 

a grant under this subsection, a program shall be a flexible

 

learning program that offered in 2015-2016 both classroom and

 

hands-on training in mechatronics.

 

     (7) As used in this section, "CEPD" means a career education


planning district described in this section.

 

     Sec. 62. (1) For the purposes of this section:

 

     (a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district or the total membership for the immediately

 

preceding fiscal year of the area vocational-technical program.

 

     (b) "Millage levied" means the millage levied for area

 

vocational-technical education pursuant to sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690, including a levy

 

for debt service obligations incurred as the result of borrowing

 

for capital outlay projects and in meeting capital projects fund

 

requirements of area vocational-technical education.

 

     (c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district or area

 

vocational-technical education program, except that if a district

 

has elected not to come under sections 681 to 690 of the revised

 

school code, MCL 380.681 to 380.690, the membership and taxable

 

value of that district shall not be included in the membership and

 

taxable value of the intermediate district. However, the membership

 

and taxable value of a district that has elected not to come under

 

sections 681 to 690 of the revised school code, MCL 380.681 to

 

380.690, shall be included in the membership and taxable value of

 

the intermediate district if the district meets both of the

 

following:

 

     (i) The district operates the area vocational-technical

 

education program pursuant to a contract with the intermediate


district.

 

     (ii) The district contributes an annual amount to the

 

operation of the program that is commensurate with the revenue that

 

would have been raised for operation of the program if millage were

 

levied in the district for the program under sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690.

 

     (2) From the appropriation in section 11, there is allocated

 

an amount not to exceed $9,190,000.00 each fiscal year for 2015-

 

2016 and for 2016-2017 to reimburse intermediate districts and area

 

vocational-technical education programs established under section

 

690(3) of the revised school code, MCL 380.690, levying millages

 

for area vocational-technical education pursuant to sections 681 to

 

690 of the revised school code, MCL 380.681 to 380.690. The

 

purpose, use, and expenditure of the reimbursement shall be limited

 

as if the funds were generated by those millages.

 

     (3) Reimbursement for the millages levied in 2014-2015 shall

 

be made in 2015-2016 at an amount per 2014-2015 membership pupil

 

computed by subtracting from $189,400.00 $192,200.00 the 2014-2015

 

taxable value behind each membership pupil and multiplying the

 

resulting difference by the 2014-2015 millage levied.

 

     (4) Reimbursement for the millages levied in 2015-2016 shall

 

be made in 2016-2017 at an amount per 2015-2016 membership pupil

 

computed by subtracting from $196,300.00 the 2015-2016 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2015-2016 millage levied.

 

     (5) (4) The amount paid to a single intermediate district

 

under this section shall not exceed 38.4% of the total amount


allocated under subsection (2).

 

     (6) (5) The amount paid to a single intermediate district

 

under this section shall not be less than 75% of the amount

 

allocated to the intermediate district under this section for the

 

immediately preceding fiscal year.

 

     Sec. 63. From the appropriation under section 11, there is

 

allocated for 2016-2017 an amount not to exceed $250,000.00 for a

 

payment to an intermediate district that is participating in a

 

joint capital project with a local health department in which the

 

health department is constructing a new building on the

 

intermediate district's property that will have an enclosed hallway

 

to connect with a career and technical education center. This

 

allocation is to support the costs incurred by the intermediate

 

district due to this project.

 

     Sec. 64b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,750,000.00 each fiscal year

 

for 2015-2016 and for 2016-2017 for supplemental payments to

 

districts that support the attendance of district pupils in grades

 

9 to 12 under the postsecondary enrollment options act, 1996 PA

 

160, MCL 388.511 to 388.524, or under the career and technical

 

preparation act, 2000 PA 258, MCL 388.1901 to 388.1913, consistent

 

with section 21b, or that support the attendance of district pupils

 

in a concurrent enrollment program if the district meets the

 

requirements under subsection (3). Programs funded under this

 

section are intended to increase the number of pupils who are

 

college- and career-ready upon high school graduation.

 

     (2) To be eligible for payments under this section for


supporting the attendance of district pupils under the

 

postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to

 

388.524, or under the career and technical preparation act, 2000 PA

 

258, MCL 388.1901 to 388.1913, a district shall do all of the

 

following:

 

     (a) Provide information to all high school pupils on

 

postsecondary enrollment options, including enrollment eligibility,

 

the institutions and types of courses that are eligible for

 

participation, the decision-making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by

 

the district.

 

     (b) Enter into a written agreement with a postsecondary

 

institution before the enrollment of district pupils.

 

     (c) Agree to pay all eligible charges pursuant to section 21b.

 

     (d) Award high school credit for the postsecondary course if

 

the pupil successfully completes the course.

 

     (3) To be eligible for payments under this section for pupils

 

enrolled in a concurrent enrollment program, a district shall do

 

all of the following:

 

     (a) Provide information to all high school pupils on

 

postsecondary enrollment options, including enrollment eligibility,

 

the institutions and types of courses that are eligible for

 

participation, the decision-making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by

 

the district.

 

     (b) Enter into a written agreement with a postsecondary

 

institution establishing the concurrent enrollment program before


the enrollment of district pupils in a postsecondary course through

 

the postsecondary institution.

 

     (c) Ensure that the course is taught by either a high school

 

teacher or postsecondary faculty pursuant to standards established

 

by the postsecondary institution with which the district has

 

entered into a written agreement to operate the concurrent

 

enrollment program.

 

     (d) Ensure that the written agreement provides that the

 

postsecondary institution agrees not to charge the pupil for any

 

cost of the program.

 

     (e) Ensure that the course is taught in the local district or

 

intermediate district.

 

     (f) Ensure that the pupil is awarded both high school and

 

college credit at any a community college or state public

 

university in this state upon successful completion of the course

 

as outlined in the agreement with the postsecondary institution.

 

     (4) Funds shall be awarded to eligible districts under this

 

section in the following manner:

 

     (a) A payment of $10.00 per credit, for up to 3 credits, for a

 

credit-bearing course in which a pupil enrolls during the 2015-2016

 

or 2016-2017 school year, as applicable, as described under either

 

subsection (2) or (3).

 

     (b) An additional payment of $30.00 per-pupil per course

 

identified in subdivision (a), if the pupil successfully completes,

 

and is awarded both high school and postsecondary credit for, the

 

course during the 2015-2016 or 2016-2017 school year, as

 

applicable.


     (5) A district requesting payment under this section shall

 

submit an application to the department in the form and manner

 

prescribed by the department. Notwithstanding section 17b, payments

 

under this section shall be made on a schedule determined by the

 

department.

 

     Sec. 65. (1) From the general fund money appropriated under

 

section 11, there is allocated an amount not to exceed $340,000.00

 

for 2015-2016 2016-2017 for a pre-college engineering K-12

 

educational program that is focused on the development of a diverse

 

future Michigan workforce, that serves multiple communities within

 

southeast Michigan, that enrolls pupils from multiple districts,

 

and that received funds appropriated for this purpose in the

 

appropriations act that provided the Michigan strategic fund budget

 

for 2014-2015.

 

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

 

must have the ability to expose pupils to, and motivate and prepare

 

pupils for, science, technology, engineering, and mathematics

 

careers and postsecondary education with special attention given to

 

groups of pupils who are at-risk and underrepresented in technical

 

professions and careers.

 

     Sec. 67. (1) From the general fund amount appropriated in

 

section 11, there is allocated an amount not to exceed

 

$3,600,000.00 for 2015-2016 $3,050,000.00 for 2016-2017 for college

 

and career preparation activities. The programs funded under this

 

section are intended to inform students of college and career

 

options and to provide a wide array of tools and resources intended

 

to increase the number of pupils who are adequately prepared with


the information needed to make informed decisions on college and

 

career. The funds appropriated under this section are intended to

 

be used to increase the number of Michigan residents with high-

 

quality degrees or credentials. Funds appropriated under this

 

section shall not be used to supplant funding for counselors

 

already funded by districts.

 

     (2) From the amount allocated in subsection (1), an amount not

 

to exceed $3,000,000.00 shall be used for the college access

 

program. The talent investment agency of the department of talent

 

and economic development shall administer these funds in

 

collaboration with the Michigan college access network. These funds

 

may be used for any of the following purposes:

 

     (a) Michigan college access network operations, programming,

 

and services to local college access networks.

 

     (b) Local college access networks, which are community-based

 

college access/success partnerships committed to increasing the

 

college participation and completion rates within geographically

 

defined communities through a coordinated strategy.

 

     (c) The Michigan college advising program, a program intended

 

to place trained, recently graduated college advisors in high

 

schools that serve significant numbers of low-income and first-

 

generation college-going pupils. State funds used for this purpose

 

may not exceed 33% of the total funds available under this

 

subsection.

 

     (d) Subgrants of up to $5,000.00 to districts with

 

comprehensive high schools that establish a college access team and

 

implement specific strategies to create a college-going culture in


a high school in a form and manner approved by the Michigan college

 

access network and the Michigan talent investment agency.

 

     (e) The Michigan college access portal, an online one-stop

 

portal to help pupils and families plan and apply for college.

 

     (f) Public awareness and outreach campaigns to encourage low-

 

income and first-generation college-going pupils to take necessary

 

steps toward college and to assist pupils and families in

 

completing a timely and accurate free application for federal

 

student aid.

 

     (g) Subgrants to postsecondary institutions to recruit, hire,

 

and train college student mentors and college advisors to assist

 

high school pupils in navigating the postsecondary planning and

 

enrollment process.

 

     (3) From the amount allocated in subsection (1), an amount not

 

to exceed $600,000.00 $50,000.00 shall be used for the purposes of

 

this subsection. The talent investment agency of the department of

 

talent and economic development shall administer these funds in

 

collaboration with the Michigan college access network and the

 

Michigan Virtual University to provide all of the following:

 

     (a) A pilot an outreach program to provide information to

 

pupils, parents, and educators on dual enrollment and other

 

opportunities available to high school pupils to earn postsecondary

 

credits, industry-recognized technical certifications, and

 

participation in registered apprenticeships at no cost.

 

     (b) An online career planning tool that meets all of the

 

following:

 

     (i) Helps pupils create educational development plans before


starting high school.

 

     (ii) Provides information to pupils allowing them to make more

 

informed choices about career and education options.

 

     (iii) Is available to pupils at no cost.

 

     (4) For the purposes of this section, "college" means any

 

postsecondary educational opportunity that leads to a career,

 

including, but not limited to, a postsecondary degree, industry-

 

recognized technical certification, or registered apprenticeship.

 

     Sec. 74. (1) From the amount appropriated in section 11, there

 

is allocated an amount not to exceed $3,315,700.00 for 2015-2016

 

$3,320,600.00 for 2016-2017 for the purposes of this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

for each fiscal year the amount necessary for payments to state

 

supported colleges or universities and intermediate districts

 

providing school bus driver safety instruction pursuant to section

 

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

 

payments shall be in an amount determined by the department not to

 

exceed the actual cost of instruction and driver compensation for

 

each public or nonpublic school bus driver attending a course of

 

instruction. For the purpose of computing compensation, the hourly

 

rate allowed each school bus driver shall not exceed the hourly

 

rate received for driving a school bus. Reimbursement compensating

 

the driver during the course of instruction shall be made by the

 

department to the college or university or intermediate district

 

providing the course of instruction.

 

     (3) From the allocation in subsection (1), there is allocated

 

for 2015-2016 2016-2017 the amount necessary to pay the reasonable


costs of nonspecial education auxiliary services transportation

 

provided pursuant to section 1323 of the revised school code, MCL

 

380.1323. Districts funded under this subsection shall not receive

 

funding under any other section of this article for nonspecial

 

education auxiliary services transportation.

 

     (4) From the funds allocated in subsection (1), there is

 

allocated an amount not to exceed $1,690,700.00 for 2015-2016

 

$1,695,600.00 for 2016-2017 for reimbursement to districts and

 

intermediate districts for costs associated with the inspection of

 

school buses and pupil transportation vehicles by the department of

 

state police as required under section 715a of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

 

transportation act, 1990 PA 187, MCL 257.1839. The department of

 

state police shall prepare a statement of costs attributable to

 

each district for which bus inspections are provided and submit it

 

to the department and to an intermediate district serving as

 

fiduciary in a time and manner determined jointly by the department

 

and the department of state police. Upon review and approval of the

 

statement of cost, the department shall forward to the designated

 

intermediate district serving as fiduciary the amount of the

 

reimbursement on behalf of each district and intermediate district

 

for costs detailed on the statement within 45 days after receipt of

 

the statement. The designated intermediate district shall make

 

payment in the amount specified on the statement to the department

 

of state police within 45 days after receipt of the statement. The

 

total reimbursement of costs under this subsection shall not exceed

 

the amount allocated under this subsection. Notwithstanding section


17b, payments to eligible entities under this subsection shall be

 

paid on a schedule prescribed by the department.

 

     Sec. 81. (1) From the appropriation in section 11, there is

 

allocated for 2015-2016 2016-2017 to the intermediate districts the

 

sum necessary, but not to exceed $67,108,000.00 to provide state

 

aid to intermediate districts under this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

for 2015-2016 2016-2017 an amount not to exceed $67,108,000.00 for

 

allocations to each intermediate district in an amount equal to

 

103.1% 100% of the amount allocated to the intermediate district

 

under this subsection for 2014-2015. 2015-2016. Funding provided

 

under this section shall be used to comply with requirements of

 

this article and the revised school code that are applicable to

 

intermediate districts, and for which funding is not provided

 

elsewhere in this article, and to provide technical assistance to

 

districts as authorized by the intermediate school board.

 

     (3) Intermediate districts receiving funds under subsection

 

(2) shall collaborate with the department to develop expanded

 

professional development opportunities for teachers to update and

 

expand their knowledge and skills needed to support the Michigan

 

merit curriculum.

 

     (4) From the allocation in subsection (1), there is allocated

 

to an intermediate district, formed by the consolidation or

 

annexation of 2 or more intermediate districts or the attachment of

 

a total intermediate district to another intermediate school

 

district or the annexation of all of the constituent K-12 districts

 

of a previously existing intermediate school district which has


disorganized, an additional allotment of $3,500.00 each fiscal year

 

for each intermediate district included in the new intermediate

 

district for 3 years following consolidation, annexation, or

 

attachment.

 

     (5) In order to receive funding under subsection (2), an

 

intermediate district shall do all of the following:

 

     (a) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

pupil accounting and auditing procedures, rules, and regulations.

 

     (b) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

rules, regulations, and district reporting procedures for the

 

individual-level student data that serves as the basis for the

 

calculation of the district and high school graduation and dropout

 

rates.

 

     (c) Comply with sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b.

 

     (d) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

     (e) Comply with section 1230g of the revised school code, MCL

 

380.1230g.

 

     (f) Comply with section 761 of the revised school code, MCL

 

380.761.

 

     Sec. 94. (1) From the general fund appropriation in section

 

11, there is allocated to the department for 2015-2016 2016-2017 an

 

amount not to exceed $250,000.00 for efforts to increase the number


of pupils who participate and succeed in advanced placement and

 

international baccalaureate programs.

 

     (2) From the funds allocated under this section, the

 

department shall award funds to cover all or part of the costs of

 

advanced placement test fees or international baccalaureate test

 

fees and international baccalaureate registration fees for low-

 

income pupils who take an advanced placement or an international

 

baccalaureate test. Payments shall not exceed $20.00 per test

 

completed or $150.00 per international baccalaureate registration

 

fees per pupil registered.

 

     (3) The department shall only award funds under this section

 

if the department determines that all of the following criteria are

 

met:

 

     (a) Each pupil for whom payment is made meets eligibility

 

requirements of the federal advanced placement test fee program

 

under section 1701 of the no child left behind act of 2001, Public

 

Law 107-110, or under a corresponding provision of the every

 

student succeeds act, Public Law 114-95.

 

     (b) The tests are administered by the college board, the

 

international baccalaureate organization, or another test provider

 

approved by the department.

 

     (c) The pupil for whom payment is made pays at least $5.00

 

toward the cost of each test for which payment is made.

 

     (4) The department shall establish procedures for awarding

 

funds under this section.

 

     (5) Notwithstanding section 17b, payments under this section

 

shall be made on a schedule determined by the department.


     Sec. 94a. (1) There is created within the state budget office

 

in the department of technology, management, and budget the center

 

for educational performance and information. The center shall do

 

all of the following:

 

     (a) Coordinate the collection of all data required by state

 

and federal law from districts, intermediate districts, and

 

postsecondary institutions.

 

     (b) Create, maintain, and enhance this state's P-20

 

longitudinal data system and ensure that it meets the requirements

 

of subsection (4).

 

     (c) Collect data in the most efficient manner possible in

 

order to reduce the administrative burden on reporting entities,

 

including, but not limited to, electronic transcript services.

 

     (d) Create, maintain, and enhance this state's web-based

 

educational portal to provide information to school leaders,

 

teachers, researchers, and the public in compliance with all

 

federal and state privacy laws. Data shall include, but are not

 

limited to, all of the following:

 

     (i) Data sets that link teachers to student information,

 

allowing districts to assess individual teacher impact on student

 

performance and consider student growth factors in teacher and

 

principal evaluation systems.

 

     (ii) Data access or, if practical, data sets, provided for

 

regional data warehouses that, in combination with local data, can

 

improve teaching and learning in the classroom.

 

     (iii) Research-ready data sets for researchers to perform

 

research that advances this state's educational performance.


     (e) Provide data in a useful manner to allow state and local

 

policymakers to make informed policy decisions.

 

     (f) Provide public reports to the citizens of this state to

 

allow them to assess allocation of resources and the return on

 

their investment in the education system of this state.

 

     (g) Other functions as assigned by the state budget director.

 

     (2) Each state department, officer, or agency that collects

 

information from districts, intermediate districts, or

 

postsecondary institutions as required under state or federal law

 

shall make arrangements with the center to ensure that the state

 

department, officer, or agency is in compliance with subsection

 

(1). This subsection does not apply to information collected by the

 

department of treasury under the uniform budgeting and accounting

 

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

 

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

 

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

 

388.1939; or section 1351a of the revised school code, MCL

 

380.1351a.

 

     (3) The center may enter into any interlocal agreements

 

necessary to fulfill its functions.

 

     (4) The center shall ensure that the P-20 longitudinal data

 

system required under subsection (1)(b) meets all of the following:

 

     (a) Includes data at the individual student level from

 

preschool through postsecondary education and into the workforce.

 

     (b) Supports interoperability by using standard data

 

structures, data formats, and data definitions to ensure linkage

 

and connectivity in a manner that facilitates the exchange of data


among agencies and institutions within the state and between

 

states.

 

     (c) Enables the matching of individual teacher and student

 

records so that an individual student may be matched with those

 

teachers providing instruction to that student.

 

     (d) Enables the matching of individual teachers with

 

information about their certification and the institutions that

 

prepared and recommended those teachers for state certification.

 

     (e) Enables data to be easily generated for continuous

 

improvement and decision-making, including timely reporting to

 

parents, teachers, and school leaders on student achievement.

 

     (f) Ensures the reasonable quality, validity, and reliability

 

of data contained in the system.

 

     (g) Provides this state with the ability to meet federal and

 

state reporting requirements.

 

     (h) For data elements related to preschool through grade 12

 

and postsecondary, meets all of the following:

 

     (i) Contains a unique statewide student identifier that does

 

not permit a student to be individually identified by users of the

 

system, except as allowed by federal and state law.

 

     (ii) Contains student-level enrollment, demographic, and

 

program participation information.

 

     (iii) Contains student-level information about the points at

 

which students exit, transfer in, transfer out, drop out, or

 

complete education programs.

 

     (iv) Has the capacity to communicate with higher education

 

data systems.


     (i) For data elements related to preschool through grade 12

 

only, meets all of the following:

 

     (i) Contains yearly test records of individual students for

 

assessments approved by DED-OESE for accountability purposes under

 

section 1111(b) of the elementary and secondary education act of

 

1965, 20 USC 6311, including information on individual students not

 

tested, by grade and subject.

 

     (ii) Contains student-level transcript information, including

 

information on courses completed and grades earned.

 

     (iii) Contains student-level college readiness test scores.

 

     (j) For data elements related to postsecondary education only:

 

     (i) Contains data that provide information regarding the

 

extent to which individual students transition successfully from

 

secondary school to postsecondary education, including, but not

 

limited to, all of the following:

 

     (A) Enrollment in remedial coursework.

 

     (B) Completion of 1 year's worth of college credit applicable

 

to a degree within 2 years of enrollment.

 

     (ii) Contains data that provide other information determined

 

necessary to address alignment and adequate preparation for success

 

in postsecondary education.

 

     (5) From the general fund appropriation in section 11, there

 

is allocated an amount not to exceed $11,967,000.00 for 2015-2016

 

$12,173,200.00 for 2016-2017 to the department of technology,

 

management, and budget to support the operations of the center. In

 

addition, from the federal funds appropriated in section 11 there

 

is allocated for 2015-2016 2016-2017 the amount necessary,


estimated at $193,500.00, to support the operations of the center

 

and to establish a P-20 longitudinal data system necessary for

 

state and federal reporting purposes. The center shall cooperate

 

with the department to ensure that this state is in compliance with

 

federal law and is maximizing opportunities for increased federal

 

funding to improve education in this state.

 

     (6) From the funds allocated in subsection (5), the center may

 

use an amount determined by the center for competitive grants for

 

2015-2016 2016-2017 to support collaborative efforts on the P-20

 

longitudinal data system. All of the following apply to grants

 

awarded under this subsection:

 

     (a) The center shall award competitive grants to eligible

 

intermediate districts or a consortium of intermediate districts

 

based on criteria established by the center.

 

     (b) Activities funded under the grant shall support the P-20

 

longitudinal data system portal and may include portal hosting,

 

hardware and software acquisition, maintenance, enhancements, user

 

support and related materials, and professional learning tools and

 

activities aimed at improving the utility of the P-20 longitudinal

 

data system.

 

     (c) An applicant that received a grant under this subsection

 

for the immediately preceding fiscal year shall receive priority

 

for funding under this section. However, after 3 fiscal years of

 

continuous funding, an applicant is required to compete openly with

 

new applicants.

 

     (7) Funds allocated under this section that are not expended

 

in the fiscal year in which they were allocated may be carried


forward to a subsequent fiscal year and are appropriated for the

 

purposes for which the funds were originally allocated.

 

     (8) The center may bill departments as necessary in order to

 

fulfill reporting requirements of state and federal law. The center

 

may also enter into agreements to supply custom data, analysis, and

 

reporting to other principal executive departments, state agencies,

 

local units of government, and other individuals and organizations.

 

The center may receive and expend funds in addition to those

 

authorized in subsection (5) to cover the costs associated with

 

salaries, benefits, supplies, materials, and equipment necessary to

 

provide such data, analysis, and reporting services.

 

     (9) As used in this section:

 

     (a) "DED-OESE" means the United States Department of Education

 

Office of Elementary and Secondary Education.

 

     (b) "State education agency" means the department.

 

     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 2016-2017 for the purposes described in

 

this section. The Michigan Virtual University shall provide a

 

report to the legislature not later than November 1, 2016 that

 

includes its mission, its plans, and proposed benchmarks it must

 

meet, which shall include a plan to achieve a 50% increase in

 

documented improvement in each requirement of the Michigan Virtual

 

Learning Research Institute and Michigan Virtual School, and all

 

other organizational priorities identified in this section, in

 

order to receive full funding for 2017-2018. Not later than March

 

1, 2017, the Michigan Virtual University shall provide an update to


the house and senate appropriations subcommittees on school aid to

 

show the progress being made to meet the benchmarks identified.

 

     (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 virtual 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 virtual

 

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 virtual course

 

providers operating in this state, analyze the effectiveness of

 

online virtual 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,

 

districts, and intermediate districts not later than March 31,


2016.2017.

 

     (v) Before August 31, 2016, 2017, provide an extensive

 

professional development program to at least 500 30,000 educational

 

personnel, including teachers, school administrators, and school

 

board members, that focuses on the effective integration of digital

 

virtual learning into curricula and instruction. The Michigan

 

Virtual Learning Research Institute is encouraged to work with the

 

MiSTEM advisory council created under section 99s to coordinate

 

professional development of teachers in applicable fields. In

 

addition, the department shall coordinate with the Michigan Virtual

 

Learning Research Institute and external stakeholders for

 

professional development in this state. Not later than December 1,

 

2016, 2017, 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 virtual learning in the public education system.

 

     (vi) Identify and share best practices for planning,

 

implementing, and evaluating online virtual 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


virtual 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 virtual learning in this state's schools.

 

     (ii) Provide a clearinghouse for research reports, academic

 

studies, evaluations, and other information related to online

 

virtual learning.

 

     (iii) Promote and distribute the most current instructional

 

design standards and guidelines for online virtual teaching.

 

     (iv) In collaboration with the department and interested

 

colleges and universities in this state, support implementation and

 

improvements related to effective digital virtual learning

 

instruction.

 

     (v) Pursue public/private partnerships that include districts

 

to study and implement competency-based technology-rich online

 

virtual learning models.

 

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

 

serving as liaisons between pupils, online virtual instructors,

 

parents, and school staff, as provided by the department or the

 

center, and provide mentors with research-based training and

 

technical assistance designed to help more pupils be successful

 

online virtual learners.

 

     (vii) Convene focus groups and conduct annual surveys of

 

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

 

barriers and opportunities related to online virtual learning.

 

     (viii) Produce an annual consumer awareness report for schools

 

and parents about effective online virtual education providers and


education delivery models, performance data, cost structures, and

 

research trends.

 

     (ix) Research and establish an Internet-based 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 virtual 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

 

virtual 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 virtual learning and use this

 

list to support reviews of online virtual 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 virtual 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 virtual 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 virtual course in the

 

immediately preceding school year.

 

     (C) The completion rate for each online virtual course.

 

     (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 virtual learning under section 21f and make findings and

 

recommendations publicly available.

 

     (xiii) Provide a report on the activities of the Michigan

 

Virtual Learning Research Institute.

 

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

 

virtual 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 virtual 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 virtual courses.

 

     (c) In providing educators responsible for the teaching of

 

online virtual 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 virtual courses under subsection (2)(b)(ix), the

 

Michigan Virtual School operated by the Michigan Virtual University

 

may offer online virtual 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.

 

     (c) Courses and dual enrollment opportunities.

 

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

 

     (e) 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 virtual course titles available to

 

districts.

 

     (c) The total number of online virtual course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

     (7) In addition to the information listed in subsection (6),

 

the report under subsection (6) shall also include a plan to serve

 

at least 600 schools with courses from the Michigan Virtual School

 

or with content available through the internet-based platform

 

identified in subsection (2)(b)(ix).

 

     (8) (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.

 

     (9) (8) Not later than November 1, 2015, 2016, 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 2016-2017 fiscal year that includes a

 

breakdown on its projected costs to deliver online virtual

 

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 virtual

 

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.

 

     (10) (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 virtual courses for pupils that may or may not require

 

attendance at a physical school location.

 

     (c) "Digital learning" means instruction delivered via a web-

 

based educational delivery system that uses various information

 

technologies to provide a structured learning environment,

 

including online and blended learning instructional methods.

 

     (c) (d) "Online "Virtual course" means a course of study that

 

is capable of generating a credit or a grade , and that is provided

 

in an interactive Internet-connected learning environment , in

 

which the majority of the curriculum is delivered using the

 

Internet and in which pupils are separated from their teachers

 

instructor or teacher of record 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. 99h. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $2,000,000.00 $2,500,000.00 for

 

2015-2016 2016-2017 for competitive grants to districts that

 

provide pupils in grades 7 K to 12 with expanded opportunities to

 

improve mathematics, science, and technology skills by


participating in events hosted by a science and technology

 

development program known as FIRST (for inspiration and recognition

 

of science and technology) robotics, including JR FIRST Lego

 

League, FIRST Lego League, FIRST tech challenge, and FIRST Robotics

 

competition. Programs funded under this section are intended to

 

increase the number of pupils demonstrating proficiency in science

 

and mathematics on the state assessments and to increase the number

 

of pupils who are college- and career-ready upon high school

 

graduation.

 

     (2) A district applying for a FIRST tech challenge or FIRST

 

robotics competition program grant under this section shall submit

 

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

 

To be eligible for a grant, a district shall demonstrate in its

 

application that the district has established a partnership for the

 

purposes of the FIRST program with at least 1 sponsor, business

 

entity, higher education institution, or technical school, shall

 

submit a spending plan, and shall pay at least 25% of the cost of

 

the FIRST robotics program.

 

     (3) The department shall distribute the grant funding under

 

this section for the following purposes:

 

     (a) Grants to districts to pay for stipends of $1,500.00 for 1

 

coach per team. , distributed as follows:

 

     (i) Not more than 500 stipends for coaches of high school

 

teams, including existing teams.

 

     (ii) Not more than 100 stipends for coaches of middle school

 

or junior high teams, including existing teams.

 

     (iii) If the requests for stipends exceed the numbers of


stipends allowed, under subparagraphs (i) and (ii), and if there is

 

funding remaining unspent under subdivisions (b) and (c), the

 

department shall use that remaining unspent funding for grants to

 

districts to pay for additional stipends in a manner that expands

 

the geographical distribution of teams.

 

     (b) Grants to districts for event registrations, materials,

 

travel costs, and other expenses associated with the preparation

 

for and attendance at FIRST tech challenge and FIRST robotics

 

events and competitions. Each grant recipient shall provide a local

 

match from other private or local funds for the funds received

 

under this subdivision equal to at least 50% of the costs of

 

participating in an event. The department shall set maximum grant

 

amounts under this subdivision in a manner that maximizes the

 

number of teams that will be able to receive funding.

 

     (c) Grants to districts for awards to teams that advance to

 

the state and world championship competitions. The department shall

 

determine an equal amount per team for those teams that advance to

 

the state championship and a second equal award amount to those

 

teams that advance to the world championship.

 

     (4) The funds allocated under this section are a work project

 

appropriation, and any unexpended funds for 2015-2016 2016-2017 are

 

carried forward into 2016-2017. 2017-2018. The purpose of the work

 

project is to continue to implement the projects described under

 

subsection (1). The estimated completion date of the work project

 

is September 30, 2018.2019.

 

     Sec. 99s. (1) From the funds appropriated under section 11,

 

there is allocated for 2015-2016 2016-2017 an amount not to exceed


$3,250,000.00 $3,000,000.00 from the state school aid fund

 

appropriation and an amount not to exceed $775,000.00 $1,300,000.00

 

from the general fund appropriation for Michigan science,

 

technology, engineering, and mathematics (MiSTEM) programs. In

 

addition, from the federal funds appropriated in section 11, there

 

is allocated for 2015-2016 2016-2017 an amount estimated at

 

$5,249,300.00 from DED-OESE, title II, mathematics and science

 

partnership grants. Programs funded under this section are intended

 

to increase the number of pupils demonstrating proficiency in

 

science and mathematics on the state assessments and to increase

 

the number of pupils who are college- and career-ready upon high

 

school graduation.

 

     (2) From the general fund allocation in subsection (1), there

 

is allocated an amount not to exceed $50,000.00 to the department

 

for administrative, training, and travel costs related to the

 

MiSTEM advisory council. All of the following apply to the MiSTEM

 

advisory council funded under this subsection:

 

     (a) The MiSTEM advisory council is created. The MiSTEM

 

advisory council shall provide to the governor, legislature,

 

department of talent and economic development, and department

 

recommendations designed to improve and promote innovation in STEM

 

education and to prepare students for careers in science,

 

technology, engineering, and mathematics.

 

     (b) The MiSTEM advisory council created under subdivision (a)

 

shall consist of the following members:

 

     (i) The governor shall appoint 11 voting members who are

 

representative of business sectors that are important to Michigan's


economy and rely on a STEM-educated workforce, nonprofit

 

organizations and associations that promote STEM education, K-12

 

and postsecondary education entities involved in STEM-related

 

career education, or other sectors as considered appropriate by the

 

governor. Each of these members shall serve at the pleasure of the

 

governor and for a term determined by the governor.

 

     (ii) The senate majority leader shall appoint 2 members of the

 

senate to serve as nonvoting, ex-officio members of the MiSTEM

 

advisory council, including 1 majority party member and 1 minority

 

party member.

 

     (iii) The speaker of the house of representatives shall

 

appoint 2 members of the house of representatives to serve as

 

nonvoting, ex-officio members of the MiSTEM advisory council,

 

including 1 majority party member and 1 minority party member.

 

     (c) Each member of the MiSTEM advisory council shall serve

 

without compensation.

 

     (d) The MiSTEM advisory council shall recommend to the

 

governor, the legislature, and the department a statewide strategy

 

for delivering STEM education-related opportunities to pupils and

 

objective criteria for determining preferred STEM programs. The

 

MiSTEM advisory council also shall make funding recommendations to

 

the governor, legislature, and department for funding programs

 

under this section for 2016-2017 not later than March 1, 2016,

 

including, but not limited to, recommendations concerning funding

 

for the STEM programs funded under this section for 2015-2016, and

 

shall continue to make funding recommendations annually

 

thereafter.The MiSTEM advisory council shall use funds received


under this subsection to purchase training for its members or their

 

designees from the Change the Equation STEMworks rating system

 

program for the purpose of rating STEM programs.

 

     (e) Not later than October 15 of each fiscal year, the MiSTEM

 

advisory council shall provide STEM quality ratings for programs

 

recommended for funding under subsection (3). The MiSTEM advisory

 

council shall make specific funding recommendations for the funds

 

allocated under subsection (3) by December 15 of each fiscal year.

 

The amount of each grant recommended shall not exceed $250,000.00.

 

     (f) If the MiSTEM advisory council is unable to make specific

 

funding recommendations by December 15 of a fiscal year, the

 

department shall distribute the funds allocated under subsection

 

(3) on a competitive grant basis that at least follows the quality

 

guidelines and priority areas recommended by the MiSTEM advisory

 

council. Each grant shall not exceed $250,000.00 and must provide

 

STEM education-related opportunities for pupils.

 

     (g) (e) The MiSTEM advisory council shall work with directors

 

of mathematics and science centers funded under subsection (3) (4)

 

to connect educators with businesses, workforce developers,

 

economic developers, community colleges, and universities.

 

     (3) From the general fund money allocated under subsection

 

(1), there is allocated for 2016-2017 an amount not to exceed

 

$1,000,000.00 for the purpose of funding programs under this

 

section for 2016-2017, as recommended by the MiSTEM advisory

 

council.

 

     (4) (3) From the state school aid fund allocation under

 

subsection (1), there is allocated for 2015-2016 2016-2017 an


amount not to exceed $2,750,000.00 to support the activities and

 

programs of mathematics and science centers. In addition, from the

 

federal funds allocated under subsection (1), there is allocated

 

for 2015-2016 2016-2017 an amount estimated at $5,249,300.00 from

 

DED-OESE, title II, mathematics and science partnership grants, for

 

the purposes of this subsection. All of the following apply to the

 

programs and funding under this subsection:

 

     (a) Within a service area designated locally, approved by the

 

department, and consistent with the comprehensive master plan for

 

mathematics and science centers developed by the department and

 

approved by the state board, an established mathematics and science

 

center shall provide 2 or more of the following 6 basic services,

 

as described in the master plan, to constituent districts and

 

communities: leadership, pupil services, curriculum support,

 

community involvement, professional development, and resource

 

clearinghouse services.

 

     (b) The department shall not award a state grant under this

 

subsection to more than 1 mathematics and science center located in

 

a designated region as prescribed in the 2007 master plan unless

 

each of the grants serves a distinct target population or provides

 

a service that does not duplicate another program in the designated

 

region.

 

     (c) As part of the technical assistance process, the

 

department shall provide minimum standard guidelines that may be

 

used by the mathematics and science center for providing fair

 

access for qualified pupils and professional staff as prescribed in

 

this subsection.


     (d) Allocations under this subsection to support the

 

activities and programs of mathematics and science centers shall be

 

continuing support grants to all 33 established mathematics and

 

science centers. For 2015-2016, 2016-2017, each established

 

mathematics and science center that was funded for 2014-2015 under

 

former section 99 shall receive state funding in an amount equal to

 

100% of the amount it was allocated under former section 99 for

 

2014-2015. 2015-2016. If a center declines state funding or a

 

center closes, the remaining money available under this subsection

 

shall be distributed to the remaining centers, as determined by the

 

department.

 

     (e) From the funds allocated under this subsection, the

 

department shall distribute for 2015-2016 2016-2017 an amount not

 

to exceed $750,000.00 in a form and manner determined by the

 

department to those centers able to provide curriculum and

 

professional development support to assist districts in

 

implementing the Michigan merit curriculum components for

 

mathematics and science. Funding under this subdivision is in

 

addition to funding allocated under subdivision (d).

 

     (f) In order to receive state or federal funds under this

 

subsection, a grant recipient shall allow access for the department

 

or the department's designee to audit all records related to the

 

program for which it receives those funds. The grant recipient

 

shall reimburse the state for all disallowances found in the audit.

 

     (g) Not later than September 30, 2018, 2017, the department

 

shall reevaluate and update work with the MiSTEM advisory council

 

to revise the comprehensive master plan described in subdivision


(a) to ensure that the comprehensive master plan is in compliance

 

with the statewide strategy developed by the council under

 

subsection (2)(d). The comprehensive master plan shall include a

 

review of the feasibility of consolidating and reducing the number

 

of mathematics and science centers.

 

     (h) The department shall give preference in awarding the

 

federal grants allocated under this subsection to eligible existing

 

mathematics and science centers.

 

     (i) In order to receive state funds under this subsection, a

 

grant recipient shall provide at least a 10% local match from local

 

public or private resources for the funds received under this

 

subsection.

 

     (j) Not later than July 1 of each year, a mathematics and

 

science center that receives funds under this subsection shall

 

report to the department in a form and manner prescribed by the

 

department on the following performance measures:

 

     (i) Statistical change in pre- and post-assessment scores for

 

students who enrolled in mathematics and science activities

 

provided to districts by the mathematics and science center.

 

     (ii) Statistical change in pre- and post-assessment scores for

 

teachers who enrolled in professional development activities

 

provided by the mathematics and science center.

 

     (k) As used in this subsection:

 

     (i) "DED" means the United States Department of Education.

 

     (ii) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.

 

     (4) From the general fund money allocated under subsection


(1), there is allocated for 2015-2016 an amount not to exceed

 

$100,000.00 to the Michigan STEM partnership, to be used to

 

administer the grant process under this subsection. From the

 

general fund money allocated in subsection (1), there is allocated

 

for 2015-2016 an amount not to exceed $375,000.00 to the Michigan

 

STEM partnership to be used for a competitive grant process to

 

award competitive grants to organizations conducting student-

 

focused, project-based programs and competitions, either in the

 

classroom or extracurricular, in science, technology, engineering,

 

and mathematics subjects such as, but not limited to, robotics,

 

coding, and design-build-test projects, from pre-kindergarten

 

through college level. All of the following apply to the grant

 

funding under this subsection:

 

     (a) Funding under this subsection is in addition to funding

 

allocated under subsection (3) and shall be used for connecting

 

mathematics and science centers for science, technology,

 

engineering, and mathematics purposes and to support the goals of

 

the Michigan STEM partnership.

 

     (b) A program receiving funds under section 99h may not

 

receive funds under this subsection.

 

     (c) In order to receive state funds under this subsection, a

 

grant recipient shall provide at least a 10% local match from local

 

public or private resources for the funds received under this

 

subsection.

 

     (5) From the funds allocated under subsection (1), there is

 

allocated an amount not to exceed $250,000.00 for 2015-2016 only

 

for grants to districts to support professional development for


teachers in a department-approved training program for science,

 

technology, engineering, and mathematics (STEM) instruction. All of

 

the following apply to the grant funding under this subsection:

 

     (a) Any district may apply for funding under this subsection

 

for 2015-2016 by a date determined by the department. In awarding

 

grants, the department shall give priority, in a form and manner

 

determined by the department, to applicant districts with teachers

 

who have not previously received training in programs funded under

 

this subsection or former section 99b.

 

     (b) For a training program to be approved by the department

 

for the purposes of this subsection, the program shall meet all of

 

the following criteria:

 

     (i) Utilize an integrative STEM approach to content

 

organization and delivery. The integrative STEM approach shall

 

include content derived from science, technology, engineering, and

 

mathematics.

 

     (ii) Offer evidence that the program outcomes address

 

mathematics, science, and technological literacy standards in an

 

exploratory middle school or high school offering.

 

     (iii) Offer evidence that the program positively influences

 

student career choices along STEM career paths and increases

 

student engagement through peer-reviewed research.

 

     (iv) Present evidence of the periodic updating of the

 

curriculum.

 

     (v) Utilize outcome measures for teacher professional

 

development.

 

     (vi) Provide peer-reviewed evidence that the program is


effective with disadvantaged students and those with language

 

barriers.

 

     (c) The department shall award grants to districts in an

 

amount determined by the department, but not to exceed $3,200.00

 

per participant.

 

     (d) A district receiving funds under this subsection shall use

 

the funds only for department-approved training programs under this

 

subsection.

 

     (5) (6) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $250,000.00 for 2015-2016 only

 

$250,000.00 for 2016-2017 for competitive grants to districts that

 

provide pupils in grades K to 12 with expanded opportunities in

 

science education and skills by participating in events and

 

competitions hosted by Science Olympiad. All of the following apply

 

to the grant funding under this subsection:

 

     (a) A district applying for a grant under this subsection

 

shall submit an application in the form and manner determined by

 

the department not later than November 15, 2015. 2016. The

 

department shall select districts for grants and make notification

 

not later than December 15, 2015. 2016. To be eligible for a grant,

 

a district shall pay at least 25% of the cost of participating in

 

the Science Olympiad program.

 

     (b) The department shall distribute the grant funding

 

allocated under this subsection for the following purposes:

 

     (i) Grants to districts of up to $800.00 for per new

 

elementary teams.team.

 

     (ii) Grants to districts of up to $400.00 for per established


elementary teams.team.

 

     (iii) Grants to districts of up to $1,600.00 for per new

 

secondary teams.team.

 

     (iv) Grants to districts of up to $800.00 for per established

 

secondary teams.team.

 

     (6) (7) From the general fund allocation under subsection (1),

 

there is allocated an amount not to exceed $250,000.00 for 2015-

 

2016 only 2016-2017 for a grant to the Van Andel Education

 

Institute for the purposes of advancing and promoting science

 

education and increasing the number of students who choose to

 

pursue careers in science or science-related fields. Funds

 

allocated under this subsection shall be used to provide

 

professional development for science teachers in using student-

 

driven, inquiry-based instruction.

 

     Sec. 99t. (1) From the general fund appropriation under

 

section 11, there is allocated an amount not to exceed

 

$1,500,000.00 for 2016-2017 to purchase statewide access to an

 

online algebra tool that meets all of the following:

 

     (a) Provides students statewide with complete access to videos

 

aligned with state standards including study guides and workbooks

 

that are aligned with the videos.

 

     (b) Provides students statewide with access to a personalized

 

online algebra learning tool including adaptive diagnostics.

 

     (c) Provides students statewide with dynamic algebra practice

 

assessments that emulate the state assessment with immediate

 

feedback and help solving problems.

 

     (d) Provides students statewide with online access to algebra


help 24 hours a day and 7 days a week from study experts, teachers,

 

and peers on a moderated social networking platform.

 

     (e) Provides an online algebra professional development

 

network for teachers.

 

     (f) Is already provided under a statewide contract in at least

 

1 other state.

 

     (2) The department shall choose the online algebra tool by

 

October 1, 2016.

 

     Sec. 101. (1) To be eligible to receive state aid under this

 

article, not later than the fifth Wednesday after the pupil

 

membership count day and not later than the fifth Wednesday after

 

the supplemental count day, each district superintendent shall

 

submit to the center and the intermediate superintendent, in the

 

form and manner prescribed by the center, the number of pupils

 

enrolled and in regular daily attendance in the district as of the

 

pupil membership count day and as of the supplemental count day, as

 

applicable, for the current school year. In addition, a district

 

maintaining school during the entire year, as provided under

 

section 1561 of the revised school code, MCL 380.1561, shall submit

 

to the center and the intermediate superintendent, in the form and

 

manner prescribed by the center, the number of pupils enrolled and

 

in regular daily attendance in the district for the current school

 

year pursuant to rules promulgated by the superintendent. Not later

 

than the sixth Wednesday after the pupil membership count day and

 

not later than the sixth Wednesday after the supplemental count

 

day, the district shall certify the data in a form and manner

 

prescribed by the center and file the certified data with the


intermediate superintendent. If a district fails to submit and

 

certify the attendance data, as required under this subsection, the

 

center shall notify the department and state aid due to be

 

distributed under this article shall be withheld from the

 

defaulting district immediately, beginning with the next payment

 

after the failure and continuing with each payment until the

 

district complies with this subsection. If a district does not

 

comply with this subsection by the end of the fiscal year, the

 

district forfeits the amount withheld. A person who willfully

 

falsifies a figure or statement in the certified and sworn copy of

 

enrollment shall be punished in the manner prescribed by section

 

161.

 

     (2) To be eligible to receive state aid under this article,

 

not later than the twenty-fourth Wednesday after the pupil

 

membership count day and not later than the twenty-fourth Wednesday

 

after the supplemental count day, an intermediate district shall

 

submit to the center, in a form and manner prescribed by the

 

center, the audited enrollment and attendance data for the pupils

 

of its constituent districts and of the intermediate district. If

 

an intermediate district fails to submit the audited data as

 

required under this subsection, state aid due to be distributed

 

under this article shall be withheld from the defaulting

 

intermediate district immediately, beginning with the next payment

 

after the failure and continuing with each payment until the

 

intermediate district complies with this subsection. If an

 

intermediate district does not comply with this subsection by the

 

end of the fiscal year, the intermediate district forfeits the


amount withheld.

 

     (3) Except as otherwise provided in subsections (11) and (12),

 

all of the following apply to the provision of pupil instruction:

 

     (a) Except as otherwise provided in this section, each

 

district shall provide at least 1,098 hours and, beginning in 2010-

 

2011, the required minimum number of days of pupil instruction.

 

Beginning in 2014-2015, the required minimum number of days of

 

pupil instruction is 175. However, all of the following apply to

 

these requirements:

 

     (i) If a collective bargaining agreement that provides a

 

complete school calendar was in effect for employees of a district

 

as of July 1, 2013, and if that school calendar is not in

 

compliance with this subsection, then this subsection does not

 

apply to that district until after the expiration of that

 

collective bargaining agreement. If a district entered into a

 

collective bargaining agreement on or after July 1, 2013 and if

 

that collective bargaining agreement did not provide for at least

 

175 days of pupil instruction beginning in 2014-2015, then the

 

department shall withhold from the district's total state school

 

aid an amount equal to 5% of the funding the district receives in

 

2014-2015 under sections 22a and 22b.

 

     (ii) A district may apply for a waiver under subsection (9)

 

from the requirements of this subdivision.

 

     (b) Beginning in 2016-2017, the required minimum number of

 

days of pupil instruction is 180. If a collective bargaining

 

agreement that provides a complete school calendar was in effect

 

for employees of a district as of the effective date of the


amendatory act that added this subdivision, and if that school

 

calendar is not in compliance with this subdivision, then this

 

subdivision does not apply to that district until after the

 

expiration of that collective bargaining agreement. A district may

 

apply for a waiver under subsection (9) from the requirements of

 

this subdivision.

 

     (c) Except as otherwise provided in this article, a district

 

failing to comply with the required minimum hours and days of pupil

 

instruction under this subsection shall forfeit from its total

 

state aid allocation an amount determined by applying a ratio of

 

the number of hours or days the district was in noncompliance in

 

relation to the required minimum number of hours and days under

 

this subsection. Not later than August 1, the board of each

 

district shall either certify to the department that the district

 

was in full compliance with this section regarding the number of

 

hours and days of pupil instruction in the previous school year, or

 

report to the department, in a form and manner prescribed by the

 

center, each instance of noncompliance. If the district did not

 

provide at least the required minimum number of hours and days of

 

pupil instruction under this subsection, the deduction of state aid

 

shall be made in the following fiscal year from the first payment

 

of state school aid. A district is not subject to forfeiture of

 

funds under this subsection for a fiscal year in which a forfeiture

 

was already imposed under subsection (6).

 

     (d) Hours or days lost because of strikes or teachers'

 

conferences shall not be counted as hours or days of pupil

 

instruction.


     (e) If a collective bargaining agreement that provides a

 

complete school calendar is in effect for employees of a district

 

as of October 19, 2009, and if that school calendar is not in

 

compliance with this subsection, then this subsection does not

 

apply to that district until after the expiration of that

 

collective bargaining agreement.

 

     (f) Except as otherwise provided in subdivisions (g) and (h),

 

a district not having at least 75% of the district's membership in

 

attendance on any day of pupil instruction shall receive state aid

 

in that proportion of 1/180 that the actual percent of attendance

 

bears to the specified percentage.

 

     (g) If a district adds 1 or more days of pupil instruction to

 

the end of its instructional calendar for a school year to comply

 

with subdivision (a) because the district otherwise would fail to

 

provide the required minimum number of days of pupil instruction

 

even after the operation of subsection (4) due to conditions not

 

within the control of school authorities, then subdivision (f) does

 

not apply for any day of pupil instruction that is added to the end

 

of the instructional calendar. Instead, for any of those days, if

 

the district does not have at least 60% of the district's

 

membership in attendance on that day, the district shall receive

 

state aid in that proportion of 1/180 that the actual percentage of

 

attendance bears to the specified percentage. For any day of pupil

 

instruction added to the instructional calendar as described in

 

this subdivision, the district shall report to the department the

 

percentage of the district's membership that is in attendance, in

 

the form and manner prescribed by the department.


     (h) At the request of a district that operates a department-

 

approved alternative education program and that does not provide

 

instruction for pupils in all of grades K to 12, the superintendent

 

shall grant a waiver from the requirements of subdivision (f). The

 

waiver shall indicate that an eligible district is subject to the

 

proration provisions of subdivision (f) only if the district does

 

not have at least 50% of the district's membership in attendance on

 

any day of pupil instruction. In order to be eligible for this

 

waiver, a district must maintain records to substantiate its

 

compliance with the following requirements:

 

     (i) The district offers the minimum hours of pupil instruction

 

as required under this section.

 

     (ii) For each enrolled pupil, the district uses appropriate

 

academic assessments to develop an individual education plan that

 

leads to a high school diploma.

 

     (iii) The district tests each pupil to determine academic

 

progress at regular intervals and records the results of those

 

tests in that pupil's individual education plan.

 

     (i) All of the following apply to a waiver granted under

 

subdivision (h):

 

     (i) If the waiver is for a blended model of delivery, a waiver

 

that is granted for the 2011-2012 fiscal year or a subsequent

 

fiscal year remains in effect unless it is revoked by the

 

superintendent.

 

     (ii) If the waiver is for a 100% online model of delivery and

 

the educational program for which the waiver is granted makes

 

educational services available to pupils for a minimum of at least


1,098 hours during a school year and ensures that each pupil

 

participates in the educational program for at least 1,098 hours

 

during a school year, a waiver that is granted for the 2011-2012

 

fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

     (iii) A waiver that is not a waiver described in subparagraph

 

(i) or (ii) is valid for 1 fiscal year and must be renewed annually

 

to remain in effect.

 

     (j) The superintendent shall promulgate rules for the

 

implementation of this subsection.

 

     (4) Except as otherwise provided in this subsection, the first

 

6 days or the equivalent number of hours for which pupil

 

instruction is not provided because of conditions not within the

 

control of school authorities, such as severe storms, fires,

 

epidemics, utility power unavailability, water or sewer failure, or

 

health conditions as defined by the city, county, or state health

 

authorities, shall be counted as hours and days of pupil

 

instruction. With the approval of the superintendent of public

 

instruction, the department shall count as hours and days of pupil

 

instruction for a fiscal year not more than 3 additional days or

 

the equivalent number of additional hours for which pupil

 

instruction is not provided in a district due to unusual and

 

extenuating occurrences resulting from conditions not within the

 

control of school authorities such as those conditions described in

 

this subsection. Subsequent such hours or days shall not be counted

 

as hours or days of pupil instruction.

 

     (5) A district shall not forfeit part of its state aid


appropriation because it adopts or has in existence an alternative

 

scheduling program for pupils in kindergarten if the program

 

provides at least the number of hours required under subsection (3)

 

for a full-time equated membership for a pupil in kindergarten as

 

provided under section 6(4).

 

     (6) In addition to any other penalty or forfeiture under this

 

section, if at any time the department determines that 1 or more of

 

the following have occurred in a district, the district shall

 

forfeit in the current fiscal year beginning in the next payment to

 

be calculated by the department a proportion of the funds due to

 

the district under this article that is equal to the proportion

 

below the required minimum number of hours and days of pupil

 

instruction under subsection (3), as specified in the following:

 

     (a) The district fails to operate its schools for at least the

 

required minimum number of hours and days of pupil instruction

 

under subsection (3) in a school year, including hours and days

 

counted under subsection (4).

 

     (b) The board of the district takes formal action not to

 

operate its schools for at least the required minimum number of

 

hours and days of pupil instruction under subsection (3) in a

 

school year, including hours and days counted under subsection (4).

 

     (7) In providing the minimum number of hours and days of pupil

 

instruction required under subsection (3), a district shall use the

 

following guidelines, and a district shall maintain records to

 

substantiate its compliance with the following guidelines:

 

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

 

must be scheduled for at least the required minimum number of hours


of instruction, excluding study halls, or at least the sum of 90

 

hours plus the required minimum number of hours of instruction,

 

including up to 2 study halls.

 

     (b) The time a pupil is assigned to any tutorial activity in a

 

block schedule may be considered instructional time, unless that

 

time is determined in an audit to be a study hall period.

 

     (c) Except as otherwise provided in this subdivision, a pupil

 

in grades 9 to 12 for whom a reduced schedule is determined to be

 

in the individual pupil's best educational interest must be

 

scheduled for a number of hours equal to at least 80% of the

 

required minimum number of hours of pupil instruction to be

 

considered a full-time equivalent pupil. A pupil in grades 9 to 12

 

who is scheduled in a 4-block schedule may receive a reduced

 

schedule under this subsection if the pupil is scheduled for a

 

number of hours equal to at least 75% of the required minimum

 

number of hours of pupil instruction to be considered a full-time

 

equivalent pupil.

 

     (d) If a pupil in grades 9 to 12 who is enrolled in a

 

cooperative education program or a special education pupil cannot

 

receive the required minimum number of hours of pupil instruction

 

solely because of travel time between instructional sites during

 

the school day, that travel time, up to a maximum of 3 hours per

 

school week, shall be considered to be pupil instruction time for

 

the purpose of determining whether the pupil is receiving the

 

required minimum number of hours of pupil instruction. However, if

 

a district demonstrates to the satisfaction of the department that

 

the travel time limitation under this subdivision would create


undue costs or hardship to the district, the department may

 

consider more travel time to be pupil instruction time for this

 

purpose.

 

     (e) In grades 7 through 12, instructional time that is part of

 

a junior reserve officer training corps (JROTC) program shall be

 

considered to be pupil instruction time regardless of whether the

 

instructor is a certificated teacher if all of the following are

 

met:

 

     (i) The instructor has met all of the requirements established

 

by the United States Department of Defense and the applicable

 

branch of the armed services for serving as an instructor in the

 

junior reserve officer training corps program.

 

     (ii) The board of the district or intermediate district

 

employing or assigning the instructor complies with the

 

requirements of sections 1230 and 1230a of the revised school code,

 

MCL 380.1230 and 380.1230a, with respect to the instructor to the

 

same extent as if employing the instructor as a regular classroom

 

teacher.

 

     (8) Except as otherwise provided in subsections (11) and (12),

 

the department shall apply the guidelines under subsection (7) in

 

calculating the full-time equivalency of pupils.

 

     (9) Upon application by the district for a particular fiscal

 

year, the superintendent shall waive for a district the minimum

 

number of hours and days of pupil instruction requirement of

 

subsection (3) for a department-approved alternative education

 

program or another innovative program approved by the department,

 

including a 4-day school week. If a district applies for and


receives a waiver under this subsection and complies with the terms

 

of the waiver, the district is not subject to forfeiture under this

 

section for the specific program covered by the waiver. If the

 

district does not comply with the terms of the waiver, the amount

 

of the forfeiture shall be calculated based upon a comparison of

 

the number of hours and days of pupil instruction actually provided

 

to the minimum number of hours and days of pupil instruction

 

required under subsection (3). Pupils enrolled in a department-

 

approved alternative education program under this subsection shall

 

be reported to the center in a form and manner determined by the

 

center. All of the following apply to a waiver granted under this

 

subsection:

 

     (a) If the waiver is for a blended model of delivery, a waiver

 

that is granted for the 2011-2012 fiscal year or a subsequent

 

fiscal year remains in effect unless it is revoked by the

 

superintendent.

 

     (b) If the waiver is for a 100% online model of delivery and

 

the educational program for which the waiver is granted makes

 

educational services available to pupils for a minimum of at least

 

1,098 hours during a school year and ensures that each pupil is on

 

track for course completion at proficiency level, a waiver that is

 

granted for the 2011-2012 fiscal year or a subsequent fiscal year

 

remains in effect unless it is revoked by the superintendent.

 

     (c) A waiver that is not a waiver described in subdivision (a)

 

or (b) is valid for 1 fiscal year and must be renewed annually to

 

remain in effect.

 

     (10) Until 2014-2015, a district may count up to 38 hours of


qualifying professional development for teachers as hours of pupil

 

instruction. However, if a collective bargaining agreement that

 

provides for the counting of up to 38 hours of qualifying

 

professional development for teachers as pupil instruction is in

 

effect for employees of a district as of July 1, 2013, then until

 

the school year that begins after the expiration of that collective

 

bargaining agreement a district may count up to the contractually

 

specified number of hours of qualifying professional development

 

for teachers as hours of pupil instruction. Professional

 

development provided online is allowable and encouraged, as long as

 

the instruction has been approved by the district. The department

 

shall issue a list of approved online professional development

 

providers, which shall include the Michigan Virtual School. As used

 

in this subsection, "qualifying professional development" means

 

professional development that is focused on 1 or more of the

 

following:

 

     (a) Achieving or improving adequate yearly progress as defined

 

under the no child left behind act of 2001, Public Law 107-110.

 

     (b) Achieving accreditation or improving a school's

 

accreditation status under section 1280 of the revised school code,

 

MCL 380.1280.

 

     (c) Achieving highly qualified teacher status as defined under

 

the no child left behind act of 2001, Public Law 107-110.

 

     (d) Integrating technology into classroom instruction.

 

     (e) Maintaining teacher certification.

 

     (11) Subsections (3) and (8) do not apply to 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.

 

     (12) Subsections (3) and (8) do not apply to eligible pupils

 

enrolled in a dropout recovery program that meets the requirements

 

of section 23a. As used in this subsection, "eligible pupil" means

 

that term as defined in section 23a.

 

     (13) Beginning in 2013, at least every 2 years the

 

superintendent shall review the waiver standards set forth in the

 

pupil accounting and auditing manuals to ensure that the waiver

 

standards and waiver process continue to be appropriate and

 

responsive to changing trends in online learning. The

 

superintendent shall solicit and consider input from stakeholders

 

as part of this review.

 

     Sec. 102d. (1) From the funds appropriated in section 11,

 

there is allocated an amount not to exceed $1,500,000.00 for 2015-

 

2016 2016-2017 for reimbursements to districts and intermediate

 

districts for the licensing of school data analytical tools as

 

described under this section. The reimbursement is for districts

 

and intermediate districts that choose to use a school data

 

analytical tool to assist the district or intermediate district and

 

that enter into a licensing agreement for a school data analytical

 

tool with 1 of the vendors approved by the department of

 

technology, management, and budget under subsection (2). Funds

 

allocated under this section are intended to provide districts and

 

intermediate districts with financial forecasting and transparency

 

reporting tools to help improve the financial health of districts

 

and to improve communication with the public, resulting in


increased fund balances for districts and intermediate districts.

 

     (2) Not later than October 15, 2015, 2016, the department of

 

technology, management, and budget shall review vendors for school

 

data analytical tools and provide districts and intermediate

 

districts with a list of at least 2 and up to 4 2 approved vendors

 

that districts and intermediate districts may use to be eligible

 

for a reimbursement paid under this section. For a vendor to be

 

approved under this section, the department of technology,

 

management, and budget must determine that the In addition, a

 

vendor approved under this section for 2015-2016 is considered to

 

be approved for use by a district or intermediate district and for

 

reimbursement for 2016-2017. An approved school data analytical

 

tool supplied by the vendor meets must meet at least all of the

 

following:

 

     (a) Analyzes financial data.

 

     (b) Analyzes academic data.

 

     (c) Provides early warning indicators of financial stress.

 

     (d) Has the capability to provide peer district comparisons of

 

both financial and academic data.

 

     (e) Has the capability to provide financial projections for at

 

least 3 subsequent fiscal years.

 

     (3) Funds allocated under this section shall be paid to

 

districts and intermediate districts as a reimbursement for already

 

having a licensing agreement or for entering into a licensing

 

agreement not later than December 1, 2015 2016 with a vendor

 

approved under subsection (2) to implement a school data analytical

 

tool. Reimbursement will be prorated for the portion of the state


fiscal year not covered by the licensing agreement. However, a

 

licensing agreement that takes effect after October 1, 2016 and

 

before December 1, 2016 will not be prorated if the term of the

 

agreement is at least 1 year. Reimbursement under this section

 

shall be made on an equal per-pupil basis.as follows:

 

     (a) All districts and intermediate districts seeking

 

reimbursement shall submit requests not later than December 1, 2016

 

indicating the cost paid for the financial data analytical tool.

 

     (b) The department shall determine the sum of the funding

 

requests under subdivision (a) and, if there are sufficient funds,

 

shall pay 1/2 of the costs submitted under subdivision (a). If

 

there are insufficient funds to pay 1/2 of the costs submitted

 

under (a), then reimbursement shall be made on an equal percentage

 

basis.

 

     (c) Funds remaining after the calculation and payment under

 

subdivision (b) shall be distributed on an equal per-pupil basis,

 

with an intermediate district's pupils considered to be the sum of

 

the pupil memberships of the constituent districts for which the

 

intermediate district is purchasing the financial data analytical

 

tool.

 

     (d) The reimbursement to a district or intermediate district

 

shall not be greater than the amount paid for a data analytics

 

application.

 

     (e) A district or intermediate district shall not be

 

reimbursed for the purchase of more than 1 software application.

 

     (4) Notwithstanding section 17b, payments under this section

 

shall be made on a schedule determined by the department.


     Sec. 104. (1) In order to receive state aid under this

 

article, a district shall comply with sections 1249, 1278a, 1278b,

 

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

 

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

 

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

 

the state school aid fund money appropriated in section 11, there

 

is allocated for 2015-2016 2016-2017 an amount not to exceed

 

$43,994,400.00 $33,894,400.00 for payments on behalf of districts

 

for costs associated with complying with those provisions of law.

 

In addition, from the federal funds appropriated in section 11,

 

there is allocated for 2015-2016 2016-2017 an amount estimated at

 

$6,250,000.00, funded from DED-OESE, title VI, state assessment

 

funds, and from DED-OSERS, section 504 of part B of the individuals

 

with disabilities education act, Public Law 94-142, plus any

 

carryover federal funds from previous year appropriations, for the

 

purposes of complying with the federal no child left behind act of

 

2001, Public Law 107-110, or the every student succeeds act, Public

 

Law 114-95.

 

     (2) The results of each test administered as part of the

 

Michigan student test of educational progress (M-STEP), including

 

tests administered to high school students, shall include an item

 

analysis that lists all items that are counted for individual pupil

 

scores and the percentage of pupils choosing each possible

 

response. The department shall work with the center to identify the

 

number of students enrolled at the time assessments are given by

 

each district. In calculating the percentage of pupils assessed for

 

a district's scorecard, the department shall use only the number of


pupils enrolled in the district at the time the district

 

administers the assessments and shall exclude pupils who enroll in

 

the district after the district administers the assessments.

 

     (3) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

     (4) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $185,000.00 for the implementation of a

 

kindergarten readiness assessment pilot project in 2016-2017. The

 

funding would be allocated to an intermediate district located in a

 

prosperity region with 2 or more subregions to participate in the

 

Maryland-Ohio pilot and cover the cost of a contract with a

 

university for implementation of version 1.75 of the kindergarten

 

readiness assessment tool. The kindergarten readiness assessment

 

pilot shall assess an estimated 4,000 children, and the designated

 

intermediate district shall work with other intermediate districts

 

to implement the pilot project, engage with the office of great

 

start and the department, and provide a report to the legislature

 

on the efficacy and usefulness of a kindergarten readiness

 

assessment. Allowable costs under this pilot program include those

 

incurred in August and September 2016.

 

     (5) The department shall continue to make the kindergarten

 

entry assessment developed by the department and field tested in

 

2015-2016 available to districts in 2016-2017.

 

     (6) The department may recommend, but may not require,

 

districts to allow pupils to use an external keyboard with tablet


devices for online M-STEP testing, including, but not limited to,

 

open-ended test items such as constructed response or equation

 

builder items.

 

     (7) (4) Notwithstanding section 17b, payments on behalf of

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

     (5) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $8,500,000.00 for the following purposes:

 

     (a) Converting existing student assessments to online

 

assessments.

 

     (b) Providing paper and pencil test versions to districts not

 

prepared to implement online assessments.

 

     (c) Expanding writing assessments to additional grade levels.

 

     (d) Providing an increased number of constructed response test

 

questions so that pupils can demonstrate higher-order skills such

 

as problem solving and communicating reasoning.

 

     (8) (6) From the allocation in subsection (1), there is

 

allocated an amount not to exceed $3,200,000.00 for the development

 

or selection of an online reporting tool to provide student-level

 

assessment data in a secure environment to educators, parents, and

 

pupils immediately after assessments are scored. The department and

 

the center shall ensure that any data collected by the online

 

reporting tool do not provide individually identifiable student

 

data to the federal government.

 

     (9) (7) From the allocation in subsection (1), there is

 

allocated an amount not to exceed $5,600,000.00 for the purpose of


implementing a summative assessment system pursuant to section

 

104c.

 

     (10) (8) As used in this section:

 

     (a) "DED" means the United States Department of Education.

 

     (b) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.

 

     (c) "DED-OSERS" means the DED Office of Special Education and

 

Rehabilitative Services.

 

     Sec. 104b. (1) In order to receive state aid under this

 

article, a district shall comply with this section and shall

 

administer the Michigan merit examination to pupils in grade 11,

 

and to pupils in grade 12 who did not take the complete Michigan

 

merit examination in grade 11, as provided in this section. The

 

Michigan merit examination consists of a college entrance test,

 

work skills test, and the summative assessment known as the

 

Michigan student test of educational progress (M-STEP).

 

     (2) For the purposes of this section, the department of

 

technology, management, and budget shall contract with 1 or more

 

providers to develop, supply, and score the Michigan merit

 

examination. The Michigan merit examination shall consist of all of

 

the following:

 

     (a) Assessment instruments that measure English language arts,

 

mathematics, reading, and science, and are used by the majority of

 

colleges and universities in this state for entrance purposes. This

 

may include 1 or more writing components. In selecting assessment

 

instruments to fulfill the requirements of this subdivision, the

 

department may consider the degree to which those assessment


instruments are aligned to this state's content standards.

 

     (b) One or more tests from 1 or more test developers that

 

assess a pupil's ability to apply at least reading and mathematics

 

skills in a manner that is intended to allow employers to use the

 

results in making employment decisions. The department of

 

technology, management, and budget and the superintendent shall

 

ensure that any test or tests selected under this subdivision have

 

all the components necessary to allow a pupil to be eligible to

 

receive the results of a nationally recognized evaluation of

 

workforce readiness if the pupil's test performance is adequate.

 

     (c) A social studies component.

 

     (d) Any other component that is necessary to obtain the

 

approval of the United States Department of Education to use the

 

Michigan merit examination for the purposes of the no child left

 

behind act of 2001, Public Law 107-110, or the every student

 

succeeds act, Public Law 114-95.

 

     (3) In addition to all other requirements of this section, all

 

of the following apply to the Michigan merit examination:

 

     (a) The department of technology, management, and budget and

 

the superintendent shall ensure that any contractor used for

 

scoring the Michigan merit examination supplies an individual

 

report for each pupil that will identify for the pupil's parents

 

and teachers whether the pupil met expectations or failed to meet

 

expectations for each standard, to allow the pupil's parents and

 

teachers to assess and remedy problems before the pupil moves to

 

the next grade.

 

     (b) The department of technology, management, and budget and


the superintendent shall ensure that any contractor used for

 

scoring, developing, or processing the Michigan merit examination

 

meets quality management standards commonly used in the assessment

 

industry, including at least meeting level 2 of the capability

 

maturity model developed by the Software Engineering Institute of

 

Carnegie Mellon University for the first year the Michigan merit

 

examination is offered to all grade 11 pupils and at least meeting

 

level 3 of the capability maturity model for subsequent years.

 

     (c) The department of technology, management, and budget and

 

the superintendent shall ensure that any contract for scoring,

 

administering, or developing the Michigan merit examination

 

includes specific deadlines for all steps of the assessment

 

process, including, but not limited to, deadlines for the correct

 

testing materials to be supplied to schools and for the correct

 

results to be returned to schools, and includes penalties for

 

noncompliance with these deadlines.

 

     (d) The superintendent shall ensure that the Michigan merit

 

examination meets all of the following:

 

     (i) Is designed to test pupils on this state's content

 

standards in all subjects tested.

 

     (ii) Complies with requirements of the no child left behind

 

act of 2001, Public Law 107-110 or the every student succeeds act,

 

Public Law 114-95.

 

     (iii) Is consistent with the code of fair testing practices in

 

education prepared by the Joint Committee on Testing Practices of

 

the American Psychological Association.

 

     (iv) Is factually accurate. If the superintendent determines


that a question is not factually accurate and should be excluded

 

from scoring, the state board and the superintendent shall ensure

 

that the question is excluded from scoring.

 

     (4) A district shall include on each pupil's high school

 

transcript all of the following:

 

     (a) For each high school graduate who has completed the

 

Michigan merit examination under this section, the pupil's scaled

 

score on each subject area component of the Michigan merit

 

examination.

 

     (b) The number of school days the pupil was in attendance at

 

school each school year during high school and the total number of

 

school days in session for each of those school years.

 

     (5) The superintendent shall work with the provider or

 

providers of the Michigan merit examination to produce Michigan

 

merit examination subject area scores for each pupil participating

 

in the Michigan merit examination. To the extent that the

 

department determines that additional test items beyond those

 

included in the college entrance component of the Michigan merit

 

examination are required in a particular subject area, the

 

department shall ensure that all test items in that subject area

 

are scaled and merged for the purposes of producing a Michigan

 

merit examination subject area score. The superintendent shall

 

design and distribute to districts, intermediate districts, and

 

nonpublic schools a simple and concise document that describes the

 

scoring for each subject area and indicates the scaled score ranges

 

for each subject area.

 

     (6) The Michigan merit examination shall be administered in


each district during the last 12 weeks of the district's school

 

year. The superintendent shall ensure that the Michigan merit

 

examination is scored and the scores are returned to pupils, their

 

parents or legal guardians, and districts not later than the

 

beginning of the pupil's first semester of grade 12. The returned

 

scores shall indicate at least the pupil's scaled score for each

 

subject area component and the range of scaled scores for each

 

subject area. In reporting the scores to pupils, parents, and

 

schools, the superintendent shall provide standards-specific,

 

meaningful, and timely feedback on the pupil's performance on the

 

Michigan merit examination.

 

     (7) A district shall administer the complete Michigan merit

 

examination to a pupil only once and shall not administer the

 

complete Michigan merit examination to the same pupil more than

 

once. If a pupil does not take the complete Michigan merit

 

examination in grade 11, the district shall administer the complete

 

Michigan merit examination to the pupil in grade 12. If a pupil

 

chooses to retake the college entrance examination component of the

 

Michigan merit examination, as described in subsection (2)(a), the

 

pupil may do so through the provider of the college entrance

 

examination component and the cost of the retake is the

 

responsibility of the pupil unless all of the following are met:

 

     (a) The pupil has taken the complete Michigan merit

 

examination.

 

     (b) The pupil meets the income eligibility criteria for free

 

breakfast, lunch, or milk, as determined under the Richard B.

 

Russell national school lunch act, 42 USC 1751 to 1769i.


     (c) The pupil has applied to the provider of the college

 

entrance examination component for a scholarship or fee waiver to

 

cover the cost of the retake and that application has been denied.

 

     (d) After taking the complete Michigan merit examination, the

 

pupil has not already received a free retake of the college

 

entrance examination component paid for either by this state or

 

through a scholarship or fee waiver by the provider.

 

     (8) The superintendent shall ensure that the length of the

 

Michigan merit examination and the combined total time necessary to

 

administer all of the components of the Michigan merit examination

 

are the shortest possible that will still maintain the degree of

 

reliability and validity of the Michigan merit examination results

 

determined necessary by the superintendent. The superintendent

 

shall ensure that the maximum total combined length of time that

 

schools are required to set aside for pupils to answer all test

 

questions on the Michigan merit examination does not exceed 8 hours

 

if the superintendent determines that sufficient alignment to

 

applicable Michigan merit curriculum content standards can be

 

achieved within that time limit.

 

     (9) A district shall provide accommodations to a pupil with

 

disabilities for the Michigan merit examination, as provided under

 

section 504 of title V of the rehabilitation act of 1973, 29 USC

 

794; subtitle A of title II of the Americans with disabilities act

 

of 1990, 42 USC 12131 to 12134; the individuals with disabilities

 

education act amendments of 1997, Public Law 105-17; and the

 

implementing regulations for those statutes. The provider or

 

providers of the Michigan merit examination and the superintendent


shall mutually agree upon the accommodations to be provided under

 

this subsection.

 

     (10) To the greatest extent possible, the Michigan merit

 

examination shall be based on this state's content standards, as

 

appropriate. Annually, after each administration of the Michigan

 

merit examination, the department shall provide a report of the

 

points per standard so that teachers will know what content will be

 

covered within the Michigan merit examination. The department may

 

augment the college entrance and work skills components of the

 

Michigan merit examination to develop the assessment, depending on

 

the alignment of those components to this state's content

 

standards. If these components do not align to these standards, the

 

department shall produce additional components as required by law,

 

while minimizing the amount of time needed for assessments.

 

     (11) A child who is a student in a nonpublic school or home

 

school may take the Michigan merit examination under this section.

 

To take the Michigan merit examination, a child who is a student in

 

a home school shall contact the district in which the child

 

resides, and that district shall administer the Michigan merit

 

examination, or the child may take the Michigan merit examination

 

at a nonpublic school if allowed by the nonpublic school. Upon

 

request from a nonpublic school, the superintendent shall direct

 

the provider or providers to supply the Michigan merit examination

 

to the nonpublic school and the nonpublic school may administer the

 

Michigan merit examination. If a district administers the Michigan

 

merit examination under this subsection to a child who is not

 

enrolled in the district, the scores for that child are not


considered for any purpose to be scores of a pupil of the district.

 

     (12) In contracting under subsection (2), the department of

 

technology, management, and budget shall consider a contractor that

 

provides electronically-scored essays with the ability to score

 

constructed response feedback in multiple languages and provide

 

ongoing instruction and feedback.

 

     (13) The purpose of the Michigan merit examination is to

 

assess pupil performance in mathematics, science, social studies,

 

and English language arts for the purpose of improving academic

 

achievement and establishing a statewide standard of competency.

 

The assessment under this section provides a common measure of data

 

that will contribute to the improvement of Michigan schools'

 

curriculum and instruction by encouraging alignment with Michigan's

 

curriculum framework standards and promotes pupil participation in

 

higher level mathematics, science, social studies, and English

 

language arts courses. These standards are based upon the

 

expectations of what pupils should learn through high school and

 

are aligned with national standards.

 

     (14) For a pupil enrolled in a middle college program, other

 

than a middle college operated as a shared educational entity or a

 

specialized shared educational entity, if the pupil receives at

 

least 50% of his or her instruction at the high school while in

 

grade 11, the Michigan merit examination shall be administered to

 

the pupil at the high school at which the pupil receives high

 

school instruction, and the department shall include the pupil's

 

scores on the Michigan merit examination in the scores for that

 

high school for all purposes for which a school's or district's


results are reported. The department shall allow the middle college

 

program to use a 5-year graduation rate for determining adequate

 

yearly progress. As used in this subsection, "middle college" means

 

a program consisting of a series of courses and other requirements

 

and conditions, including an early college or other program created

 

under a memorandum of understanding, that allows a pupil to

 

graduate from high school with both a high school diploma and a

 

certificate or degree from a community college or state public

 

university.

 

     (15) As used in this section:

 

     (a) "English language arts" means reading and writing.

 

     (b) "Social studies" means United States history, world

 

history, world geography, economics, and American government.

 

     Sec. 104c. (1) In order to receive state aid under this

 

article, a district shall administer the state assessments

 

described in this section.

 

     (2) For the purposes of this section, the department shall

 

develop for use in the spring of 2015-2016 the Michigan student

 

test of educational progress (M-STEP) assessments in English

 

language arts and mathematics. These assessments shall be aligned

 

to state standards.

 

     (3) For the purposes of this section, the department shall

 

implement a summative assessment system that is proven to be valid

 

and reliable for administration to pupils as provided under this

 

subsection. The summative assessment system shall meet all of the

 

following requirements:

 

     (a) The summative assessment system shall measure student


proficiency on the current state standards, shall measure student

 

growth for consecutive grade levels in which students are assessed

 

in the same subject area in both grade levels, and shall be capable

 

of measuring individual student performance.

 

     (b) The summative assessments for English language arts and

 

mathematics shall be administered to all public school pupils in

 

grades 3 to 11, including those pupils as required by the federal

 

individuals with disabilities education act, Public Law 108-446,

 

and by title I of the federal elementary and secondary education

 

act.

 

     (c) The summative assessments for science shall be

 

administered to all public school pupils in at least grades 4 and

 

7, including those pupils as required by the federal individuals

 

with disabilities education act, Public Law 108-446, and by title I

 

of the federal elementary and secondary education act.

 

     (d) The summative assessments for social studies shall be

 

administered to all public school pupils in at least grades 5 and

 

8, including those pupils as required by the federal individuals

 

with disabilities education act, Public Law 108-446, and by title I

 

of the federal elementary and secondary education act.

 

     (e) The content of the summative assessments shall be aligned

 

to state standards.

 

     (f) The pool of questions for the summative assessments shall

 

be subject to a transparent review process for quality, bias, and

 

sensitive issues involving educator review and comment. The

 

department shall post samples from tests or retired tests featuring

 

questions from this pool for review by the public.


     (g) The summative assessment system shall ensure that

 

students, parents, and teachers are provided with reports that

 

convey individual student proficiency and growth on the assessment

 

and that convey individual student domain-level performance in each

 

subject area, including representative questions, and individual

 

student performance in meeting state standards.

 

     (h) The summative assessment system shall be capable of

 

providing, and the department shall ensure that students, parents,

 

teachers, administrators, and community members are provided with,

 

reports that convey aggregate student proficiency and growth data

 

by teacher, grade, school, and district.

 

     (i) The summative assessment system shall ensure the

 

capability of reporting the available data to support educator

 

evaluations.

 

     (j) The summative assessment system shall ensure that the

 

reports provided to districts containing individual student data

 

are available within 60 days after completion of the assessments.

 

     (k) The summative assessment system shall ensure that access

 

to individually identifiable student data meets all of the

 

following:

 

     (i) Is in compliance with 20 USC 1232g, commonly referred to

 

as the family educational rights and privacy act of 1974.

 

     (ii) Except as may be provided for in an agreement with a

 

vendor to provide assessment services, as necessary to support

 

educator evaluations pursuant to subdivision (i), or for research

 

or program evaluation purposes, is available only to the student;

 

to the student's parent or legal guardian; and to a school


administrator or teacher, to the extent that he or she has a

 

legitimate educational interest.

 

     (l) The summative assessment system shall ensure that the

 

assessments are pilot tested before statewide implementation.

 

     (m) The summative assessment system shall ensure that

 

assessments are designed so that the maximum total combined length

 

of time that schools are required to set aside for a pupil to

 

answer all test questions on all assessments that are part of the

 

system for the pupil's grade level does not exceed that maximum

 

total combined length of time for the previous statewide assessment

 

system or 9 hours, whichever is less. This subdivision does not

 

limit the amount of time a district may allow a pupil to complete a

 

test.

 

     (n) The total cost of executing the summative assessment

 

system statewide each year, including, but not limited to, the cost

 

of contracts for administration, scoring, and reporting, shall not

 

exceed an amount equal to 2 times the cost of executing the

 

previous statewide assessment after adjustment for inflation.

 

     (4) Beginning in the 2015-2016 school year, the department

 

shall field test additional components in the assessment system

 

under this subsection assessments in the fall and spring of each

 

school year to measure English language arts and mathematics in

 

each of grades K to 2 for full implementation in the 2016-2017

 

subsequent school year. The additional components years. These

 

assessments are necessary to determine a pupil's proficiency level

 

before grade 3. The additional components are as follows:

 

     (a) Assessments administered in the fall and spring of each


year to measure English language arts and mathematics in each of

 

grades 1 and 2.

 

     (b) The kindergarten entry assessment (KEA), to be

 

administered in the fall of the kindergarten year. The KEA shall

 

include the same components as under subdivision (a) and also may

 

include observational components that measure cognitive, social-

 

emotional, and physical skills.

 

     (5) This section does not prohibit districts from adopting

 

interim assessments.

 

     (6) As used in this section, "English language arts" means

 

that term as defined in section 104b.

 

     Sec. 104d. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2015-2016 2016-

 

2017 an amount not to exceed $4,000,000.00 for providing

 

reimbursement to districts that purchase a computer-adaptive test,

 

for each pupil enrolled in the district or that purchase 1 or more

 

diagnostic tools, screening tools, or benchmark assessments for

 

pupils in grades K to 3 that are intended to increase reading

 

proficiency by grade 4.

 

     (2) In order to receive reimbursement under this section for

 

the purchase of a computer-adaptive test, the computer-adaptive

 

test must provide for at least all of the following:

 

     (a) Internet-delivered, standards-based assessment using a

 

computer-adaptive model to target the instructional level of each

 

pupil.

 

     (b) Unlimited testing opportunities throughout the 2015-2016

 

2016-2017 school year.


     (c) Valid and reliable diagnostic assessment data.

 

     (d) Adjustment of testing difficulty based on previous answers

 

to test questions.

 

     (e) Immediate feedback to pupils and teachers.

 

     (3) In order to receive reimbursement under this section for

 

the purchase of 1 or more diagnostic tools or screening tools for

 

pupils in grades K to 3, each of the tools must meet all of the

 

following:

 

     (a) Be reliable.

 

     (b) Be valid.

 

     (c) Be useful. As used in this subdivision, "useful" means

 

that a tool is easy to administer and requires a short time to

 

complete and that results are linked to intervention.

 

     (4) In order to receive funding under this section for the

 

purchase of 1 or more benchmark assessments for pupils in grades K

 

to 3, each of the benchmark assessments must meet all of the

 

following:

 

     (a) Be aligned to the state standards of this state.

 

     (b) Complement this state's summative assessment system.

 

     (c) Be administered at least once a year before the

 

administration of any summative assessment to monitor pupil

 

progress.

 

     (d) Provide information on pupil achievement with regard to

 

learning the content required in a given year or grade span.

 

     (5) Reimbursement under this section shall be made to eligible

 

districts that purchase a computer-adaptive test or 1 or more

 

diagnostic tools, screening tools, or benchmark assessments


described in this section by October 15, 2015 2016 and shall be

 

made on an equal per-pupil basis according to the available

 

funding, based on the number of pupils for whom assessments were

 

purchased.

 

     (6) In order to receive reimbursement under this section, a

 

district shall demonstrate to the satisfaction of the department

 

that each qualifying computer-adaptive test, diagnostic tool,

 

screening tool, or benchmark assessment was purchased by the

 

district by December 1, 2015.2016.

 

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

 

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

 

2016-2017 for adult education programs authorized under this

 

section. Except as otherwise provided under subsections (16) and

 

(18), (14) and (15), 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 secondary education program, an adult

 

English as a second language program, a 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 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 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.

 

     (a) Has attained 20 years of age.

 

     (b) Has attained 18 years of age and the individual's


graduating class has graduated.

 

     (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, 2017-2018, 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, 2018-2019, 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.

 

     (c) Five percent of this portion of the funding shall be

 

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 and addressing barriers

 

to education and employment.

 

     (c) 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 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.

 

     (6) (7) An adult basic education program, an adult secondary

 

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 twelfth 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.

 

     (c) A participant in an adult basic education program is

 

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 participant in an adult secondary education program is

 

eligible for reimbursement until 1 of the following occurs:

 

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

 

assessed above the twelfth grade level.

 

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

 

assessments after having at least 450 hours of instruction.

 

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


English as a second language program is eligible for funding

 

according to subsection (11) (9) 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.

 

     (7) (8) A 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 or a high school equivalency certificate.

 

     (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 high school

 

equivalency practice test to determine the individual's potential

 

for success on the high school equivalency test, and shall

 

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

 

with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) (9) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

     (i) The participant 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

 

a high school equivalency test after having completed at least 450

 

hours of instruction.

 

     (8) (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.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) (9) 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.

 

     (c) An individual may be enrolled in this program and the

 

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.

 

     (9) (11) A funding recipient shall receive payments under this

 

section in accordance with all of the following:

 

     (a) Eighty percent for enrollment of eligible

 

participants.Statewide allocation criteria, including 3-year

 

average enrollments, census data, and local needs.

 

     (b) Twenty percent for participant 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 achieving a high school equivalency certificate or

 

passage of 1 or more individual 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.

 

     (c) Participant completion of core indicators as identified in

 

the innovation and opportunity act.

 

     (d) Allowable expenditures.

 

     (10) (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) (6),

 

(7), or (8) 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.

 

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

 

correctional facility shall not be counted as a participant under

 

this section.

 

     (12) (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.

 

     (13) (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.

 

     (14) (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.

 

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


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

 

2016-2017 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). (16) and (17). Funding under this subsection for

 

2015-2016 2016-2017 is for the first second of 3 years of funding.

 

     (16) (19) A pilot program funded under subsection (18) (15)

 

shall require adult education staff to work with Michigan 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.

 

     (17) (20) A pilot program funded under subsection (18) (15)

 

shall have on staff an adult education navigator who will serve as

 

a caseworker for each participant identified under subsection (19).

 

(16). 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.

 

     (18) (21) Not later than December 1, 2016, 2017, the pilot


program funded under subsection (18) (15) 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.

 

     (19) (22) The department shall develop an application process

 

for a pilot program to be funded under subsection (18) (15) and

 

shall award funding not later than November 1, 2015. October 1,

 

2016. Funding allocated under subsection (18) (15) may be paid on a

 

schedule other than that specified under section 17b.

 

     (20) (23) The department shall approve at least 1 3 high

 

school equivalency test tests and determine whether a high school

 

equivalency certificate meets the requisite standards for high

 

school equivalency in this state.

 

     (21) (24) 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.

 

     (c) "Eligible adult education provider" means a district,

 

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. 147. (1) The allocation for 2015-2016 2016-2017 for the

 

public school employees' retirement system pursuant to the public


school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

 

to 38.1408, shall be made using the individual projected benefit

 

entry age normal cost method of valuation and risk assumptions

 

adopted by the public school employees retirement board and the

 

department of technology, management, and budget.

 

     (2) The annual level percentage of payroll contribution rates

 

for the 2015-2016 2016-2017 fiscal year, as determined by the

 

retirement system, are estimated as follows:

 

     (a) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who are enrolled in

 

the health premium subsidy, the annual level percentage of payroll

 

contribution rate is estimated at 36.31%, 36.64%, with 25.78%

 

24.94% paid directly by the employer.

 

     (b) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who are enrolled

 

in the health premium subsidy, the annual level percentage of

 

payroll contribution rate is estimated at 35.09%, 36.01%, with

 

24.56% 24.31% paid directly by the employer.

 

     (c) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who participate

 

in the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 34.66%, 35.79%, with

 

24.13% 24.09% paid directly by the employer.

 

     (d) For public school employees who first worked for a public

 

school reporting unit on or after September 4, 2012, who elect

 

defined contribution, and who participate in the personal

 

healthcare fund, the annual level percentage of payroll


contribution rate is estimated at 31.49%, 32.66%, with 20.96% paid

 

directly by the employer.

 

     (e) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who are enrolled in the health premium subsidy,

 

the annual level percentage of payroll contribution rate is

 

estimated at 31.92%, 32.88%, with 21.39% 21.18% paid directly by

 

the employer.

 

     (f) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who participate in the personal healthcare fund,

 

the annual level percentage of payroll contribution rate is

 

estimated at 31.49%, 32.66%, with 20.96% paid directly by the

 

employer.

 

     (g) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who participate in

 

the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 35.88%, 36.42%, with

 

25.35% 24.72% paid directly by the employer.

 

     (3) In addition to the employer payments described in

 

subsection (2), the employer shall pay the applicable contributions

 

to the Tier 2 plan, as determined by the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408.

 

     (4) The contribution rates in subsection (2) reflect an

 

amortization period of 23 22 years for 2015-2016. 2016-2017. The

 

public school employees' retirement system board shall notify each

 

district and intermediate district by February 28 of each fiscal


year of the estimated contribution rate for the next fiscal year.

 

     Sec. 147a. From the appropriation in section 11, there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$100,000,000.00 for payments to participating districts. A district

 

that receives money under this section shall use that money solely

 

for the purpose of offsetting a portion of the retirement

 

contributions owed by the district for the fiscal year in which it

 

is received. The amount allocated to each participating district

 

under this section shall be based on each participating district's

 

percentage of the total statewide payroll for all participating

 

districts for the immediately preceding fiscal year. As used in

 

this section, "participating district" means a district that is a

 

reporting unit of the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1301 to 38.1408, and that reports employees to

 

the Michigan public school employees' retirement system for the

 

applicable fiscal year.

 

     Sec. 147c. (1) From the appropriation in section 11, there is

 

allocated for 2015-2016 2016-2017 an amount not to exceed

 

$892,900,000.00 $982,200,000.00 from the state school aid fund for

 

payments to districts and intermediate districts that are

 

participating entities of the Michigan public school employees'

 

retirement system. In addition, from the general fund money

 

appropriated in section 11, there is allocated for 2015-2016 2016-

 

2017 an amount not to exceed $600,000.00 for payments to district

 

libraries that are participating entities of the Michigan public

 

school employees' retirement system.


     (2) For 2015-2016, 2016-2017, the amounts allocated under

 

subsection (1) are estimated to provide an average MPSERS rate cap

 

per pupil amount of $601.00 $660.00 and are estimated to provide a

 

rate cap per pupil for districts ranging between $4.00 $5.00 and

 

$2,300.00.$3,100.00.

 

     (3) Payments made under this section for 2015-2016 shall be

 

equal to the difference between the unfunded actuarial accrued

 

liability contribution rate as calculated pursuant to section 41 of

 

the public school employees retirement act of 1979, 1980 PA 300,

 

MCL 38.1341, as calculated without taking into account the maximum

 

employer rate of 20.96% included in section 41 of the public school

 

employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the

 

maximum employer rate of 20.96% included in section 41 of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341.

 

     (4) The amount allocated to each participating entity under

 

this section shall be based on each participating entity's

 

proportion of the total covered payroll for the immediately

 

preceding fiscal year for the same type of participating entities.

 

A participating entity that receives funds under this section shall

 

use the funds solely for the purpose of retirement contributions as

 

specified in subsection (5).

 

     (5) Each participating entity receiving funds under this

 

section shall forward an amount equal to the amount allocated under

 

subsection (4) to the retirement system in a form, manner, and time

 

frame determined by the retirement system.

 

     (6) Funds allocated under this section should be considered


when comparing a district's growth in total state aid funding from

 

1 fiscal year to the next.

 

     (7) Not later than December 20, 2015, 2016, the department

 

shall publish and post on its website an estimated MPSERS rate cap

 

per pupil for each district.

 

     (8) As used in this section:

 

     (a) "MPSERS rate cap per pupil" means an amount equal to the

 

quotient of the district's payment under this section divided by

 

the district's pupils in membership.

 

     (b) "Participating entity" means a district, intermediate

 

district, or district library that is a reporting unit of the

 

Michigan public school employees' retirement system under the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1301 to 38.1437, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable

 

fiscal year.

 

     (c) "Retirement board" means the board that administers the

 

retirement system under the public school employees retirement act

 

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     (d) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     Sec. 152a. (1) As required by the court in the consolidated

 

cases known as Adair v State of Michigan, Michigan supreme court

 

docket nos. 137424 and 137453, from the state school aid fund money

 

appropriated in section 11 there is allocated for 2015-2016 2016-

 

2017 an amount not to exceed $38,000,500.00 to be used solely for


the purpose of paying necessary costs related to the state-mandated

 

collection, maintenance, and reporting of data to this state.

 

     (2) From the allocation in subsection (1), the department

 

shall make payments to districts and intermediate districts in an

 

equal amount per-pupil based on the total number of pupils in

 

membership in each district and intermediate district. The

 

department shall not make any adjustment to these payments after

 

the final installment payment under section 17b is made.

 

     Sec. 152b. (1) From the general fund money appropriated under

 

section 11, there is allocated an amount not to exceed

 

$2,500,000.00 for 2016-2017 to reimburse costs incurred by

 

nonpublic schools as identified in the nonpublic school mandate

 

report published by the department on November 25, 2014 and under

 

subsection (2).

 

     (2) By January 1, 2017, the department shall publish a form

 

containing the requirements identified in the report under

 

subsection (1). The department shall include other requirements on

 

the form that were enacted into law after publication of the

 

report. The form shall be posted on the department's website in

 

electronic form.

 

     (3) By June 15, 2017, a nonpublic school seeking reimbursement

 

under subsection (1) of costs incurred during the 2016-2017 school

 

year shall submit the form described in subsection (2) to the

 

department. This section does not require a nonpublic school to

 

submit a form described in subsection (2). A nonpublic school is

 

not eligible for reimbursement under this section unless the

 

nonpublic school submits the form described in subsection (2) in a


timely manner.

 

     (4) By August 15, 2017, the department shall distribute funds

 

to nonpublic schools that submit a completed form described under

 

subsection (2) in a timely manner. The superintendent shall

 

determine the amount of funds to be paid to each nonpublic school

 

in an amount that does not exceed the nonpublic school's actual

 

cost to comply with requirements under subsections (1) and (2). The

 

superintendent shall calculate a nonpublic school's actual cost in

 

accordance with this section.

 

     (5) If the funds allocated under this section are insufficient

 

to fully fund payments as otherwise calculated under this section,

 

the department shall distribute funds under this section on a

 

prorated or other equitable basis as determined by the

 

superintendent.

 

     (6) The department has the authority to review the records of

 

a nonpublic school submitting a form described in subsection (2)

 

only for the limited purpose of verifying the nonpublic school's

 

compliance with this section. If a nonpublic school does not allow

 

the department to review records under this subsection for this

 

limited purpose, the nonpublic school is not eligible for

 

reimbursement under this section.

 

     (7) The funds appropriated under this section are for purposes

 

related to education, are considered to be incidental to the

 

operation of a nonpublic school, are noninstructional in character,

 

and are intended for the public purpose of ensuring the health,

 

safety, and welfare of the children in nonpublic schools and to

 

reimburse nonpublic schools for costs described in this section.


     (8) Funds allocated under this section are not intended to aid

 

or maintain any nonpublic school, support the attendance of any

 

student at a nonpublic school, employ any person at a nonpublic

 

school, support the attendance of any student at any location where

 

instruction is offered to a nonpublic school student, or support

 

the employment of any person at any location where instruction is

 

offered to a nonpublic school student.

 

     (9) For purposes of this section, "actual cost" means the

 

hourly wage for the employee or employees performing the reported

 

task or tasks and is to be calculated in accordance with the form

 

published by the department under subsection (2), which shall

 

include a detailed itemization of cost. The nonpublic school shall

 

not charge more than the hourly wage of its lowest-paid employee

 

capable of performing the reported task regardless of whether that

 

individual is available and regardless of who actually performs the

 

reported task. Labor costs under this subsection shall be estimated

 

and charged in increments of 15 minutes or more, with all partial

 

time increments rounded down. When calculating costs under

 

subsection (4), fee components shall be itemized in a manner that

 

expresses both the hourly wage and the number of hours charged. The

 

nonpublic school may not charge any applicable labor charge amount

 

to cover or partially cover the cost of health or fringe benefits.

 

A nonpublic school shall not charge any overtime wages in the

 

calculation of labor costs.

 

     Sec. 166. (1) A district in which a school official, member of

 

a board, or other person dispenses or otherwise distributes a

 

family planning drug or device in a public school in violation of


section 1507 of the revised school code, being section 380.1507 of

 

the Michigan Compiled Laws, dispenses prescriptions for any family

 

planning drug, or makes referrals for abortions shall forfeit 5% of

 

its total state aid appropriation. The governing board of a

 

district or intermediate district shall adopt and implement a

 

disciplinary policy as described in subsection (2) to provide

 

penalties for violations of section 1507 of the revised school

 

code, MCL 380.1507, and penalties for a school official, member of

 

a governing board, employee of the district or intermediate

 

district, or other person who refers a pupil for an abortion or

 

assists a pupil in obtaining an abortion. A district or

 

intermediate district that fails to adopt a policy required under

 

this section within 3 years after the effective date of the 2016

 

amendments to this section shall forfeit from its total state

 

school aid an amount equal to $100,000.00.

 

     (2) A disciplinary policy required under subsection (1) shall

 

provide for a financial penalty to be applied against an individual

 

employed by the district or intermediate district who violates the

 

policy under subsection (1) that is equivalent to not less than 3%

 

of that individual's annual compensation.

 

     (3) A district or intermediate district that applies a

 

financial penalty against or collects a fine from an individual as

 

provided under subsection (2) shall refund to the state school aid

 

fund an amount of money equal to the amount of the penalty or fine.

 

     Sec. 166b. (1) This act does not prohibit a parent or legal

 

guardian of a minor who is enrolled in any of grades kindergarten

 

to 12 in a nonpublic school or who is being home-schooled from also


enrolling the minor in a district, public school academy, or

 

intermediate district in any curricular offering that is provided

 

by the district, public school academy, or intermediate district at

 

a public school site and is available to pupils in the minor's

 

grade level or age group, subject to compliance with the same

 

requirements that apply to a full-time pupil's participation in the

 

offering. However, state school aid shall be provided under this

 

act for a minor enrolled as described in this subsection only for

 

curricular offerings that are offered to full-time pupils in the

 

minor's grade level or age group during regularly scheduled school

 

hours.

 

     (2) This act does not prohibit a parent or legal guardian of a

 

minor who is enrolled in any of grades kindergarten to 12 in a

 

nonpublic school or who resides within the district and is being

 

home-schooled from also enrolling the minor in the district in a

 

curricular offering being provided by the district at the nonpublic

 

school site. However, state school aid shall be provided under this

 

act for a minor enrolled as described in this subsection only if

 

all of the following apply:

 

     (a) Either of the following:

 

     (i) The nonpublic school site is located, or the nonpublic

 

students are educated, within the geographic boundaries of the

 

district.

 

     (ii) If the nonpublic school has submitted a written request

 

to the district in which the nonpublic school is located for the

 

district to provide certain instruction under this subsection for a

 

school year and the district does not agree to provide some or all


of that instruction by May 1 immediately preceding that school year

 

or, if the request is submitted after March 1 immediately preceding

 

that school year, within 60 days after the nonpublic school submits

 

the request, the instruction is instead provided by an eligible

 

other district. This subparagraph does not require a nonpublic

 

school to submit more than 1 request to the district in which the

 

nonpublic school is located for that district to provide

 

instruction under this subsection, and does not require a nonpublic

 

school to submit an additional request to the district in which the

 

nonpublic school is located for that district to provide additional

 

instruction under this subsection beyond the instruction requested

 

in the original request, before having the instruction provided by

 

an eligible other district. A public school academy that is located

 

in the district in which the nonpublic school is located or in an

 

eligible other district also may provide instruction under this

 

subparagraph under the same conditions as an eligible other

 

district. As used in this subparagraph, "eligible other district"

 

means a district that is located in the same intermediate district

 

as the district in which the nonpublic school is located or is

 

located in an intermediate district that is contiguous to that

 

intermediate district.

 

     (b) The nonpublic school is registered with the department as

 

a nonpublic school and meets all state reporting requirements for

 

nonpublic schools.

 

     (c) The instruction is scheduled to occur during the regular

 

school day.

 

     (d) The instruction is provided directly by a certified


teacher at the district or public school academy or at an

 

intermediate district.

 

     (e) The curricular offering is also available to full-time

 

pupils in the minor's grade level or age group in the district or

 

public school academy during the regular school day at a public

 

school site.

 

     (f) The curricular offering is restricted to nonessential

 

elective courses for pupils in grades kindergarten to 12.

 

     (3) A minor enrolled as described in this section is a part-

 

time pupil for purposes of state school aid under this act.

 

     (4) A district that receives a written request to provide

 

instruction under subsection (2) shall reply to the request in

 

writing by May 1 immediately preceding the applicable school year

 

or, if the request is made after March 1 immediately preceding that

 

school year, within 60 days after the nonpublic school submits the

 

request. The written reply shall specify whether the district

 

agrees to provide or does not agree to provide the instruction for

 

each portion of instruction included in the request.

 

     (5) The department shall establish a workgroup consisting of

 

staff from the department, staff from the center, pupil accounting

 

staff from districts and intermediate districts, other applicable

 

staff from districts and intermediate districts, representatives

 

from nonpublic schools, and representatives from home schools to

 

examine the issue of providing a uniform definition of nonessential

 

elective courses, and also to provide a uniform definition of a

 

part-time pupil for the purposes of this section.

 

     Sec. 167a. A district is encouraged to implement a plan to


reduce pupil expulsions and suspensions that exceed 10 days. It is

 

the intent of the legislature that a district that has not

 

implemented a plan to reduce pupil expulsions and suspensions that

 

exceed 10 days will be subject to forfeiture of a portion of its

 

total state school aid.

 

     Enacting section 1. In accordance with section 30 of article

 

IX of the state constitution of 1963, total state spending from

 

state sources on state school aid under article I of the state

 

school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as

 

amended by 2015 PA 85, 2015 PA 139, and this amendatory act for

 

fiscal year 2015-2016 is estimated at $11,960,539,300.00 and state

 

appropriations for school aid to be paid to local units of

 

government for fiscal year 2015-2016 are estimated at

 

$11,919,909,800.00. In accordance with section 30 of article IX of

 

the state constitution of 1963, total state spending on school aid

 

under article I of the state school aid act of 1979, 1979 PA 94,

 

MCL 388.1601 to 388.1772, as amended by this amendatory act, from

 

state sources for fiscal year 2016-2017 is estimated at

 

$12,343,209,400.00 and state appropriations for school aid to be

 

paid to local units of government for fiscal year 2016-2017 are

 

estimated at $12,181,929,700.00.

 

     Enacting section 2. Sections 22i, 43, and 99c of the state

 

school aid act of 1979, 1979 PA 94, MCL 388.1622i, 388.1643, and

 

388.1699c, are repealed effective October 1, 2016.

 

     Enacting section 3. (1) Except as otherwise provided in

 

subsection (2), this amendatory act takes effect October 1, 2016.

 

     (2) Sections 11, 11j, 11m, 11r, 20g, 22a, 22b, 24a, 26a, 26c,


31f, 35a, 51a, 51c, 56, 61a, 61b, 62, and 64b of the state school

 

aid act of 1979, 1979 PA 94, MCL 388.1611, 388.1611j, 388.1611m,

 

388.1611r, 388.1620g, 388.1622a, 388.1622b, 388.1624a, 388.1626a,

 

388.1626c, 388.1631f, 388.1635a, 388.1651a, 388.1651c, 388.1656,

 

388.1661a, 388.1661b, 388.1662, and 388.1664b, as amended by this

 

amendatory act, and section 11o of the state school aid act of

 

1979, 1979 PA 94, MCL 388.1611o, as added by this amendatory act,

 

take effect upon enactment of this amendatory act.