SB-0574, As Passed Senate, October 18, 2017
SUBSTITUTE FOR
SENATE BILL NO. 574
(As amended October 17, 2017)
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 705 (MCL 380.705), as amended by 2016 PA 192.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 705. (1) Beginning in 1997, and in each year after 1997,
a regional enhancement property tax may be levied by an
intermediate school district at a rate not to exceed 3 mills to
enhance
other state and local funding for local school district or<<,
as provided in this section,>>
public school academy operations if approved by a majority of the
intermediate school electors voting on the question.
(2) If a resolution requesting that the question of a regional
enhancement property tax be submitted to the voters is adopted
within a 180-day period and transmitted to the intermediate school
board by 1 or more boards or boards of directors of its constituent
districts representing a majority of the combined membership of the
constituent districts as of the most recent pupil membership count
day and if those resolutions all contain an identical specified
number of mills to be levied under this section and an identical
specified number of years for which the tax shall be levied, the
question of levying a regional enhancement property tax by the
intermediate school district shall be placed on the ballot by the
intermediate school district at the next regular school election
held in each of the constituent districts that are school
districts. If the question is to be submitted to the intermediate
school electors of an intermediate school district having a
population of more than 1,400,000, the intermediate school board
shall call a special election to be held at the next state primary
or general election. If the resolution requirement is met more than
180 days before the next regular school district elections, and if
requested in the resolutions, the intermediate school board shall
submit the question of levying a regional enhancement property tax
within the intermediate school district on the ballot at a special
election called by the intermediate school board for that purpose
not earlier than 90 days after the resolution requirements are met.
(3) Not later than 10 days after receipt by the intermediate
school district of the revenue from the regional enhancement
property tax, the intermediate school district shall calculate and
pay to each of its constituent districts an amount of the revenue
calculated by dividing the total amount of the revenue by the
combined membership of the constituent districts within the
intermediate school district, as of the most recent pupil
membership count day, and multiplying that quotient by the
constituent district's membership, as of the most recent pupil
membership count day for which a final department-audited pupil
count is available. If a constituent district has entered into an
agreement
with another a school district or public entity to
perform the functions and responsibilities of the constituent
district for operating a public school of the constituent district,
then for the purposes of this subsection the pupils in membership
in that public school shall be considered to be in membership in
the constituent district and a proportionate share of the revenue
payable to the constituent district under this section shall be
transferred by the constituent district to the school district or
public entity performing the functions and responsibilities of the
constituent district for operating the public school. The
proportionate share of that revenue to be paid to that school
district or public entity shall be determined according to the
percentage of the constituent district's membership that is
enrolled in the particular public school for the state fiscal year
corresponding to the tax year. Revenue from a regional enhancement
property tax under this section shall not be allocated or paid to a
constituent district that does not operate a public school directly
but retains a limited separate identity for purposes of section 12,
12b, 863, 903, or 947.
(4) Regional enhancement property tax under this section may
be levied for a term not to exceed 20 years, as specified in the
ballot question, and may be renewed for the same term and for the
purposes described in subsection (1) with the approval of a
majority of the intermediate school electors voting on the
Senate Bill No. 574 as amended October 17 and 18, 2017
question.
(5) The question of levying a regional enhancement property
tax under this section shall be presented to the intermediate
school electors as a separate question.
(6) For the purposes of this section, except as otherwise
provided in this subsection, a public school academy is considered
to be a single constituent district of an intermediate school
district if the public school academy's administrative offices are
located within that intermediate school district and the public
school academy operates 1 or more schools that are each located
entirely within the intermediate school district. A public school
academy that is a school of excellence operating as a cyber school,
as defined in section 551, is considered to be a constituent
district of an intermediate school district only if the
administrative office of that cyber school is located within the
intermediate school district and at least 80% of the students
enrolled in the cyber school reside within the intermediate school
district. <<However, in order to be considered a constituent district of
an intermediate school district, a public school academy described in this subsection must have been issued a contract by an authorizing body under sections 1311b to 1311m or part 6A, 6C, or 6E, as applicable, before the resolution requesting that the question of a regional enhancement property tax be submitted to the voters is adopted and transmitted to the intermediate school district under subsection (2).
(7) A public school academy that receives revenue from a regional enhancement property tax under this section shall use that money only for expenditures that directly benefit a school operated by the public school academy that is located in the intermediate school district in which the regional enhancement property tax was approved. Revenue from a regional enhancement property tax levied under this section shall not be used to benefit a public school academy that does not meet the requirements under subsection (6).>>
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.