SENATE BILL No. 216

 

 

March 18, 2015, Introduced by Senator ROBERTSON and referred to the Committee on Education.

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

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

 

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

 

amended by 2012 PA 201 and sections 6, 98, 107, 230, and 256 as

 

amended by 2014 PA 196.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

achievement authority and all achievement schools.

 

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

 

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

 

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

 

eighth grade. For the purposes of calculating universal service

 

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

 

enrolled in a preschool program operated by a district in its


 

facilities.

 

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

 

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

 

necessarily in attendance on the pupil membership count day in an

 

extended year program. The mandatory clock hours shall be completed

 

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

 

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

 

shall prescribe pupil, personnel, and other reporting requirements

 

for the educational program.

 

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

 

October 1 and continues through September 30.

 

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

 

granted for the successful completion of a high school equivalency

 

test.

 

     (6) (5) "General educational development testing "High school

 

equivalency test preparation program" means a program that has high

 

school level courses in English language arts, social studies,

 

science, and mathematics and that prepares a person an individual

 

to successfully complete the general educational development (GED)

 

test.a high school equivalency test.

 

     (7) "High school equivalency test" means the GED test

 

developed by the GED Testing Service, the Test Assessing Secondary

 

Completion (TASC) developed by CTB/McGraw-Hill, the HiSet test

 

developed by the Education Testing Service (ETS), or another

 

comparable test approved by the department.

 

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

 

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


 

the eighth grade.

 

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

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

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

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

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 

report of the number of pupils, excluding adult 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 current school year. A district's,

 

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

 

shall be adjusted as provided under section 25e for pupils who

 

enroll in the district, public school academy, or intermediate

 

district after the pupil membership count day. All pupil counts

 

used in this subsection are as determined by the department and

 

calculated by adding the number of pupils registered for attendance

 

plus pupils received by transfer and minus pupils lost as defined

 

by rules promulgated by the superintendent, and as corrected by a

 

subsequent department audit. For the purposes of this section and

 

section 6a, for a school of excellence that is a cyber school, as

 

defined in section 551 of the revised school code, MCL 380.551, and

 

is in compliance with section 553a of the revised school code, MCL

 

380.553a, a pupil's participation in the cyber school's educational

 

program is considered regular daily attendance; for the education

 

achievement system, a pupil's participation in an online

 

educational program of the education achievement system or of an

 

achievement school is considered regular daily attendance; and for


 

a district a pupil's participation in an online course as defined

 

in section 21f is considered regular daily attendance. The amount

 

of the foundation allowance for a pupil in membership is determined

 

under section 20. In making the calculation of membership, all of

 

the following, as applicable, apply to determining the membership

 

of a district, a public school academy, the education achievement

 

system, or an intermediate district:

 

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

 

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

 

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

 

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

 

membership.

 

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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

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

 

district.

 

     (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.

 

     (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.

 

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

 

eligible to attend school for that school year under section 1147

 

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

 

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

 

count the child in membership for that school year if the parent or

 

legal guardian has notified the district in writing that he or she

 

intends to enroll the child in kindergarten for that school year.

 

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

 

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


 

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

 

equivalency certificate shall not be counted in membership unless

 

the individual is a pupil with a disability as defined in R

 

340.1702 of the Michigan administrative code. An individual

 

participating in a job training program funded under former section

 

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

 

administered by the Michigan strategic fund, or participating in

 

any successor of either of those 2 programs, shall not be counted

 

in membership.

 

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

 

academy or the education achievement system is also educated by a

 

district or intermediate district as part of a cooperative

 

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

 

the public school academy or the education achievement system

 

unless a written agreement signed by all parties designates the

 

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

 

and the instructional time scheduled for the pupil in the district

 

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

 

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

 

receiving instruction in both a public school academy or the

 

education achievement system and in a district or intermediate

 

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

 

following apply:

 

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

 

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

 

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

 

education achievement system shall receive as its prorated share of


 

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

 

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

 

school academy or the education achievement system provides divided

 

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

 

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

 

of those pupils shall be allocated to the district or intermediate

 

district providing the remainder of the hours of instruction.

 

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

 

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

 

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

 

providing the remainder of the hours of instruction shall receive

 

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

 

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

 

of instruction the district or intermediate district provides

 

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

 

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

 

membership for each of those pupils shall be allocated to the

 

public school academy or the education achievement system.

 

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

 

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

 

education program shall not be counted in membership if there are

 

also adult education participants being educated in the same

 

program or classroom.

 

     (p) The department shall give a uniform interpretation of

 

full-time and part-time memberships.

 

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

 

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


 

determining full-time equated memberships for pupils who are

 

enrolled in a postsecondary institution, a pupil shall not be

 

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

 

of the effect of his or her postsecondary enrollment, including

 

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

 

district to the pupil.

 

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

 

pupils in kindergarten shall be determined by dividing the number

 

of instructional hours scheduled and provided per year per

 

kindergarten pupil by the same number used for determining full-

 

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

 

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

 

school academy that provides evidence satisfactory to the

 

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

 

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

 

time equated memberships for pupils in kindergarten shall be

 

determined by dividing the number of class hours scheduled and

 

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

 

the number used for determining full-time equated memberships for

 

pupils in grades 1 to 12. 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 specified in subdivision (q) for full-time equivalency. For


 

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

 

be providing appropriate instruction if all of the following are

 

met:

 

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

 

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

 

apart from the general school population under the supervision of a

 

certificated teacher.

 

     (ii) The district provides instructional materials, resources,

 

and supplies 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 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 Day who is enrolled in an intermediate district program

 

that begins before Labor day 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.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.

 

     (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 25f. The district operating the program shall

 

report to the center the number of pupils who were enrolled in the

 

program and were in full attendance for a month not later than the

 

tenth day of the next month. A district shall not report a pupil as

 

being in full attendance for a month unless both of the following

 

are met:

 

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

 

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

 

participates in the program.

 

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

 

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

 

pupil does not meet that definition of satisfactory monthly

 

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

 

satisfactory monthly progress in the immediately preceding month


 

and appropriate interventions are implemented within 10 school days

 

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

 

of satisfactory monthly progress.

 

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

 

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 1 to 12 in

 

accordance with section 166b.

 

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

 

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

 

     (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.

 

     (p) An online learning pupil enrolled in a district other than

 

the pupil's district of residence as an eligible pupil under

 

section 21f.

 

     However, if a district educates pupils who reside in another

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating

 

district must have the approval of that other district to count

 

those pupils in membership.

 

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

 

district means:

 

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

 

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

 

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

 

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

 

superintendent, the immediately following day on which school is in

 

session in the district or building.

 

     (b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

     (i) Fourth Wednesday in July.


 

     (ii) First Wednesday in October.

 

     (iii) Second Wednesday in February.

 

     (iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

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

 

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

 

pupil membership count day or supplemental count day and who fails

 

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

 

30 calendar days after the pupil membership count day or

 

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

 

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

 

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

 

academy, or the education achievement system before the pupil

 

membership count day or supplemental count day of a particular year

 

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

 

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

 

equated membership if the pupil resumed attendance in the district,

 

intermediate district, public school academy, or education


 

achievement system within 45 days after the pupil membership count

 

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

 

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

 

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

 

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

 

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

 

legally qualified substitute teacher are together and instruction

 

is taking place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

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

 

district", and "district of the first class" mean, for the purposes

 

of this article only, a district that had at least 40,000 pupils in

 

membership for the immediately preceding fiscal year.

 

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

 

July 1 and continues through June 30.

 

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

 

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

 

district or intermediate district superintendent, means the

 

superintendent of public instruction described in section 3 of

 

article VIII of the state constitution of 1963.

 

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

 

supplemental pupil count is conducted under section 6a.

 

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


 

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

 

for whom tuition may be charged to the district of residence.

 

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

 

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

 

whose parent or guardian voluntarily enrolls the pupil in a

 

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

 

district of residence shall not require a high school tuition

 

pupil, as provided under section 111, to attend another school

 

district after the pupil has been assigned to a school district.

 

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

 

established in section 11 of article IX of the state constitution

 

of 1963.

 

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

 

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

 

PA 206, MCL 211.27a.

 

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

 

instructional print or electronic resource that is selected and

 

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

 

achievement school, by the chancellor of the achievement authority

 

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

 

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

 

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

 

that forms the basis of classroom instruction.

 

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

 

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

 

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

 

article.


 

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

 

section 11, there is allocated an amount not to exceed

 

$7,387,500.00 for 2014-2015 for the purposes described in this

 

section.

 

     (2) The Michigan virtual university shall operate the Michigan

 

virtual learning research institute. The Michigan virtual learning

 

research institute shall do all of the following:

 

     (a) Support and accelerate innovation in education through the

 

following activities:

 

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

 

technology-based instructional tools and resources.

 

     (ii) Research, design, and recommend digital education delivery

 

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

 

multimedia instructional content.

 

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

 

department criteria by which cyber schools and online course

 

providers should be monitored and evaluated to ensure a quality

 

education for their pupils.

 

     (iv) Based on pupil completion and performance data reported to

 

the department or the center for educational performance and

 

information from cyber schools and other online course providers

 

operating in this state, analyze the effectiveness of online

 

learning delivery models in preparing pupils to be college- and

 

career-ready and publish a report that highlights enrollment

 

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

 

report shall be submitted to the house and senate appropriations

 

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


 

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

 

December 1, 2015.

 

     (v) Before August 31, 2015, provide an extensive professional

 

development program to at least 500 educational personnel,

 

including teachers, school administrators, and school board

 

members, that focuses on the effective integration of digital

 

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

 

2015, the Michigan virtual learning research institute shall submit

 

a report to the house and senate appropriations subcommittees on

 

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

 

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

 

teachers, school administrators, and school board members who have

 

received professional development services from the Michigan

 

virtual university. The report shall also identify barriers and

 

other opportunities to encourage the adoption of digital learning

 

in the public education system.

 

     (vi) Identify and share best practices for planning,

 

implementing, and evaluating online and blended education delivery

 

models with intermediate districts, districts, and public school

 

academies to accelerate the adoption of innovative education

 

delivery models statewide.

 

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

 

learning education by doing the following activities:

 

     (i) Develop and report policy recommendations to the governor

 

and the legislature that accelerate the expansion of effective

 

online learning in this state's schools.

 

     (ii) Provide a clearinghouse for research reports, academic


 

studies, evaluations, and other information related to online

 

learning.

 

     (iii) Promote and distribute the most current instructional

 

design standards and guidelines for online teaching.

 

     (iv) In collaboration with the department and interested

 

colleges and universities in this state, support implementation and

 

improvements related to effective digital learning instruction.

 

     (v) Pursue public/private partnerships that include districts

 

to study and implement competency-based technology-rich online

 

learning models.

 

     (vi) Convene focus groups and conduct annual surveys of

 

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

 

barriers and opportunities related to online learning.

 

     (vii) Produce an annual consumer awareness report for schools

 

and parents about effective online education providers and

 

education delivery models, performance data, cost structures, and

 

research trends.

 

     (viii) Research and establish an internet-based platform that

 

educators can use to create student-centric learning tools and

 

resources and facilitate a user network that assists educators in

 

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

 

virtual university shall work collaboratively with districts and

 

intermediate districts to establish a plan to make available online

 

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

 

use by students, educators, and parents.

 

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

 

learning courses being offered by all public schools in this state.


 

The Michigan virtual learning research institute shall identify and

 

develop a list of nationally recognized best practices for online

 

learning and use this list to support reviews of online course

 

vendors, courses, and instructional practices. The Michigan virtual

 

learning research institute shall also provide a mechanism for

 

intermediate districts to use the identified best practices to

 

review content offered by constituent districts. The Michigan

 

virtual learning research institute shall review the online course

 

offerings of the Michigan virtual university, and make the results

 

from these reviews available to the public as part of the statewide

 

catalog. The Michigan virtual learning research institute shall

 

ensure that the statewide catalog is made available to the public

 

on the Michigan virtual university website and shall allow the

 

ability to link it to each district's website as provided for in

 

section 21f. Beginning in 2014-2015, the statewide catalog shall

 

also contain all of the following:

 

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

 

immediately preceding school year.

 

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

 

total course points for each online course in the immediately

 

preceding school year.

 

     (C) The completion rate for each online course.

 

     (x) Collaborate with key stakeholders to examine the need and

 

process for incorporating registration, payment services, and

 

transcript functionality to the statewide catalog.

 

     (xi) Collaborate with key stakeholders to examine district

 

level accountability and teacher effectiveness issues related to


 

online learning under section 21f and make findings and

 

recommendations publicly available.

 

     (3) In order for the Michigan virtual university to receive

 

any funds allocated under this section, the Michigan virtual school

 

must maintain its accreditation status from recognized national and

 

international accrediting entities.

 

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

 

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

 

virtual school operated by the Michigan virtual university may

 

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

 

of the following:

 

     (a) Information technology courses.

 

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

 

1471 of the revised school code, MCL 380.1471.

 

     (c) Courses and dual enrollment opportunities.

 

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

 

     (e) General education development High school equivalency test

 

preparation courses for adjudicated youth.

 

     (f) Special interest courses.

 

     (g) Professional development programs for teachers, school

 

administrators, other school employees, and school board members.

 

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

 

resident of a district that subscribes to services provided by the

 

Michigan virtual school, the student may use the services provided

 

by the Michigan virtual school to the district without charge to

 

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

 

same services.


 

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

 

Michigan virtual university shall provide a report to the house and

 

senate appropriations subcommittees on state school aid, the state

 

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

 

department that includes at least all of the following information

 

related to the Michigan virtual school for the preceding state

 

fiscal year:

 

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

 

school.

 

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

 

     (c) The total number of online course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

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

 

Michigan virtual learning research institute established under

 

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

 

the pleasure of the governor and shall serve without compensation.

 

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

 

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

 

Michigan virtual university that will accelerate innovation in this

 

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

 

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

 

promote the goal of increasing the percentage of citizens of this

 

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

 

2025.

 

     (8) Not later than November 1, 2014, 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

 

2014-2015 fiscal year that includes a breakdown on its projected

 

costs to deliver online educational services to districts and a

 

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

 

services. Beginning in 2013-2014, not later than February 1, the

 

Michigan virtual university shall submit to the house and senate

 

appropriations subcommittees on state school aid, the state budget

 

director, and the house and senate fiscal agencies a breakdown on

 

its actual costs to deliver online educational services to

 

districts and a summary of the actual fees paid by districts for

 

those services based on audited financial statements for the

 

immediately preceding fiscal year.

 

     (9) As used in this section:

 

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

 

model where pupils are provided content, instruction, and

 

assessment, in part at a supervised educational facility away from

 

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

 

certificate are in the same physical location and in part through

 

internet-connected learning environments with some degree of pupil

 

control over time, location, and pace of instruction.

 

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

 

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

 

a physical school location.

 

     (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.

 

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

 

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

 

internet-connected learning environment, in which pupils are

 

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

 

which a teacher who holds a valid Michigan teaching certificate is

 

responsible for determining appropriate instructional methods for

 

each pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 

evaluating the effects of instruction and support strategies.

 

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

 

allocated an amount not to exceed $22,000,000.00 for 2014-2015 for

 

adult education programs authorized under this section. 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, a program

 

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, a person shall be enrolled in an adult basic education

 

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

 

educational development (G.E.D.) high school equivalency test

 

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

 

high school completion program, that meets the requirements of this


 

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

 

either of the following, as applicable:

 

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

 

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

 

equivalency certificate, the individual meets 1 of the following:

 

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

 

year and is enrolled in the Michigan career and technical

 

institute.

 

     (ii) 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.

 

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

 

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

 

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

 

or G.E.D. achieved a high school equivalency certificate, the

 

individual meets 1 of the following:

 

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

 

year.

 

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

 

year, has been permanently expelled from school under section

 

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

 

380.1311a, and has no appropriate alternative education program

 

available through his or her district of residence.

 

     (4) 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 10 prosperity regions 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. The department shall ensure that

 

the funds allocated under this subsection for 2014-2015 will

 

provide services in 2014-2015 to at least the same number of

 

individuals as the number of individuals who were enrolled in

 

programs funded under this section in 2013-2014. For 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 in 2013-2014, and 33% shall be allocated based on

 

the factors in subdivisions (a), (b), and (c). For 2015-2016, 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). For 2016-

 

2017, 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, as

 

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


 

community survey (ACS) from the United States census bureau.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, as reported by the most

 

recent 5-year estimates from the American community survey (ACS)

 

from the United States census bureau.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, as

 

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

 

community survey (ACS) from the United States census bureau.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 as described in this section.

 

     (b) Collaborate with education advisory groups of the

 

workforce development boards located in the prosperity region to

 

develop a regional strategy that aligns adult education programs

 

and services into an efficient and effective delivery system for

 

adult education learners.

 

     (c) Collaborate with education advisory groups of the

 

workforce development boards located in the prosperity region 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, and cost to provide

 

instructional services. All local processes, criteria, and provider

 

determinations must be approved by the department before funds may

 

be distributed to the fiscal agent.

 

     (d) Report adult education program and participant data and

 

information as prescribed by the department.

 

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

 

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

 

program. The amount shall be proportionately reduced for a program

 

offering less than 450 hours of instruction.

 

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

 

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

 

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

 

following:

 

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

 

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

 

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

 

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

 

     (b) The program tests individuals for eligibility under

 

subdivision (a) before enrollment and upon completion of the

 

program in compliance with the state-approved assessment policy.

 

     (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 funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

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

 

     (i) The participant is assessed as having attained basic

 

English proficiency as determined by a department-approved

 

assessment.

 

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

 

department-approved assessments after having completed at least 450

 

hours of instruction. The department shall provide information to a

 

funding recipient regarding appropriate assessment instruments for

 

this program.

 

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

 

equivalency test preparation program operated on a year-round or

 

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

 

of the following:

 

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

 

diploma.

 

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

 

department before enrolling an individual to determine the

 

individual's literacy levels, shall administer a G.E.D. practice

 

high school equivalency test to determine the individual's

 

potential for success on the G.E.D. a 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) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

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

 

equivalency certificate.

 

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

 

department-approved assessments used to determine readiness to take

 

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

 

least 450 hours of instruction.

 

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

 

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

 

all of the following:

 

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

 

diploma.

 

     (b) The program tests participants described in subdivision

 

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

 

compliance with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

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

 

subsection until 1 of the following occurs:

 

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

 

diploma.

 

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

 

semesters or terms in which the participant is enrolled after

 

having completed at least 900 hours of instruction.

 

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

 

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


 

this section, subject to all of the following:

 

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

 

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

 

determined to be in need of remedial mathematics or communication

 

arts skills and are not attending an institution of higher

 

education.

 

     (b) The program tests participants described in subdivision

 

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

 

compliance with the department-approved assessment policy.

 

     (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.

 

     (11) A funding recipient shall receive payments under this

 

section in accordance with the following:

 

     (a) Seventy-five percent for enrollment of eligible

 

participants.

 

     (b) Twenty-five percent for participant completion of the

 

adult basic education objectives by achieving an educational gain

 

as determined by the national reporting system levels; for

 

achieving basic English proficiency; for obtaining a G.E.D.

 

achieving a high school equivalency certificate or passage of 1 or

 

more individual G.E.D. high school equivalency tests; for


 

attainment of a high school diploma or passage of a course required

 

for a participant to attain a high school diploma; for enrollment

 

in a postsecondary institution, or for entry into or retention of

 

employment, as applicable.

 

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

 

under this section may receive adult education services upon the

 

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

 

served in a program under this section due to the program

 

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

 

continue to receive adult education services in that program upon

 

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

 

the local or intermediate district conducting the program.

 

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

 

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

 

     (14) A funding recipient shall not commingle money received

 

under this section or from another source for adult education

 

purposes with any other funds and shall establish a separate ledger

 

account for funds received under this section. This subsection does

 

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

 

support an adult education or community education program.

 

     (15) A funding recipient receiving funds under this section

 

may establish a sliding scale of tuition rates based upon a

 

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

 

participant tuition to receive adult education services under this

 

section from that sliding scale of tuition rates on a uniform

 

basis. The amount of tuition charged per participant shall not

 

exceed the actual operating cost per participant minus any funds


 

received under this section per participant. A funding recipient

 

may not charge a participant tuition under this section if the

 

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

 

guidelines published by the United States department of health and

 

human services.Department of Health and Human Services.

 

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

 

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

 

determined by the department, all information needed to administer

 

this program and meet federal reporting requirements; shall allow

 

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

 

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

 

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

 

determined by the department.

 

     (17) All intermediate district participant audits of adult

 

education programs shall be performed pursuant to the adult

 

education participant auditing and accounting manuals published by

 

the department.

 

     (18) As used in this section:

 

     (a) "Department" means the Michigan strategic fund.

 

     (b) "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.

 

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

 

equated individuals enrolled in and attending a department-approved


 

adult education program under this section, using quarterly

 

participant count days on the schedule described in section

 

6(7)(b).

 

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

 

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

 

2014-2015 for performance funding is distributed based on the

 

following formula:

 

     (a) Allocated proportionate to fiscal year 2013-2014 base

 

appropriations, 50%.

 

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

 

     (c) Based on administrative costs, 7.5%.

 

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

 

2006 recommendations of the performance indicators task force,

 

17.5%.

 

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

 

in cooperation with the Michigan community college association

 

Community College Association and described in subsection (2), 15%.

 

     (2) Money included in the appropriations for community college

 

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

 

allocated to each community college that certifies to the state

 

budget director, through a board of trustees resolution on or

 

before October 15, 2014, that the college has met 4 out of 5 best

 

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

 

resolution shall provide specifics as to how the community college

 

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

 

funding available under the strategic value component shall be

 

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


 

distributed under local strategic value shall be on a proportionate

 

basis to each college's fiscal year 2013-2014 operations funding.

 

Payments to community colleges that qualify for local strategic

 

value funding shall be distributed with the November installment

 

payment described in section 206.

 

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

 

of best practices reflect functional activities of community

 

colleges that have strategic value to the local communities and

 

regional economies:

 

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

 

industry partnerships, the following:

 

     (i) The community college has active partnerships with local

 

employers including hospitals and health care providers.

 

     (ii) The community college provides customized on-site training

 

for area companies, employees, or both.

 

     (iii) The community college supports entrepreneurship through a

 

small business assistance center or other training or consulting

 

activities targeted toward small businesses.

 

     (iv) The community college supports technological advancement

 

through industry partnerships, incubation activities, or operation

 

of a Michigan technical education center or other advanced

 

technology center.

 

     (v) The community college has active partnerships with local

 

or regional workforce and economic development agencies.

 

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

 

     (i) The community college has active partnerships with regional

 

high schools, intermediate school districts, and career-tech


 

centers to provide instruction through dual enrollment, concurrent

 

enrollment, direct credit, middle college, or academy programs.

 

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

 

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

 

summer or after-school programming, or science Olympiad.

 

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

 

in programming to promote successful transitions to college for

 

traditional age students, including grant programs such as talent

 

search, upward bound, or other activities to promote college

 

readiness in area high schools and community centers.

 

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

 

in programming to promote successful transitions to college for new

 

or reentering adult students, such as adult basic education,

 

general education development certificate high school equivalency

 

test preparation and testing, or recruiting, advising, or

 

orientation activities specific to adults.

 

     (v) The community college has active partnerships with

 

regional 4-year colleges and universities to promote successful

 

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

 

or operation of a university center.

 

     (c) For Category C, community services, the following:

 

     (i) The community college provides continuing education

 

programming for leisure, wellness, personal enrichment, or

 

professional development.

 

     (ii) The community college operates or sponsors opportunities

 

for community members to engage in activities that promote leisure,

 

wellness, cultural or personal enrichment such as community sports


 

teams, theater or musical ensembles, or artist guilds.

 

     (iii) The community college operates public facilities to

 

promote cultural, educational, or personal enrichment for community

 

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

 

museums, art galleries, or television or radio stations.

 

     (iv) The community college operates public facilities to

 

promote leisure or wellness activities for community members,

 

including gymnasiums, athletic fields, tennis courts, fitness

 

centers, hiking or biking trails, or natural areas.

 

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

 

community service activities for students, staff, or community

 

members.

 

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

 

tuition incentive program shall be distributed as provided in this

 

section and pursuant to the administrative procedures for the

 

tuition incentive program of the department of treasury.

 

     (2) As used in this section:

 

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

 

assistance program defined as the academic period of 80 semester or

 

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

 

certificate.

 

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

 

assistance program which provides assistance in the third and

 

fourth year of 4-year degree programs.

 

     (c) "Department" means the department of treasury.

 

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

 

financial thresholds to be eligible for tuition incentive benefits:


 

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

 

of the following criteria:

 

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

 

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

 

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

 

completing a general education development achieving a high school

 

equivalency certificate.

 

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

 

graduates from high school with a diploma or certificate of

 

completion or completes a general education development achieves a

 

high school equivalency certificate.

 

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

 

according to institutional criteria.

 

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

 

semester or 120 term credits at a participating educational

 

institution within 4 years of high school graduation or completion

 

of a general education development achievement of a high school

 

equivalency certificate.

 

     (v) Request information on filing a FAFSA.

 

     (vi) Must meet the satisfactory academic progress policy of the

 

educational institution he or she attends.

 

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

 

either of the following criteria in addition to the criteria in

 

subdivision (a):

 

     (i) Complete at least 56 transferable semester or 84

 

transferable term credits.

 

     (ii) Obtain an associate degree or certificate at a


 

participating institution.

 

     (c) To be eligible for phase I or phase II, an individual must

 

not be incarcerated and must be financially eligible as determined

 

by the department. An individual is financially eligible for the

 

tuition incentive program if he or she was eligible for Medicaid

 

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

 

before application. The department shall accept certification of

 

Medicaid eligibility only from the department of human services for

 

the purposes of verifying if a person is Medicaid eligible for 24

 

months within the 36 months before application. Certification of

 

eligibility may begin in the sixth grade. As used in this

 

subdivision, "incarcerated" does not include detention of a

 

juvenile in a state-operated or privately operated juvenile

 

detention facility.

 

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

 

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

 

shall reject billings that are excessive or outside the guidelines

 

for the type of educational institution.

 

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

 

     (a) Payments for associate degree or certificate programs

 

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

 

any individual student at any participating institution.

 

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

 

department shall pay the current in-district tuition and mandatory

 

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

 

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

 

authorized.


 

     (c) For persons enrolled at a Michigan public university, the

 

department shall pay lower division resident tuition and mandatory

 

fees for the current year.

 

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

 

degree-granting college or university, or a Michigan federal

 

tribally controlled community college, or Focus: HOPE, the

 

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

 

credit payment that does not exceed the average community college

 

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

 

the immediately preceding academic year.

 

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

 

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

 

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

 

conditions:

 

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

 

degree-granting 4-year college or university.

 

     (b) The tuition reimbursement is for coursework completed

 

within 30 months of completion of the phase I requirements.

 

     (7) The department shall work closely with participating

 

institutions to develop an application and eligibility

 

determination process that will provide the highest level of

 

participation and ensure that all requirements of the program are

 

met.

 

     (8) Applications for the tuition incentive program may be

 

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

 

determination of financial eligibility is made, that determination

 

is valid as long as the student meets all other program


 

requirements and conditions.

 

     (9) Each institution shall ensure that all known available

 

restricted grants for tuition and fees are used prior to billing

 

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

 

tuition and fees.

 

     (10) The department shall ensure that the tuition incentive

 

program is well publicized and that eligible Medicaid clients are

 

provided information on the program. The department shall provide

 

the necessary funding and staff to fully operate the program.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.