Empowerment Zone Legislation Draft
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Transcript of Empowerment Zone Legislation Draft
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DRAFT 1 07/16/2015CONFIDENTIAL
ADVISORY AND PRELIMINARY TO A FINAL DETERMINATION(School Empowerment Zones)
______'15 ____
DRAFT BILL No. _____
________ ____, 2015, Introduced by Rep./Sen. _______________ and referred to the Committee on__________________________________.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 4, 5, 7, 11a, 502, 504, 507, 522, 524, 528,
552, 556, and 561 of the revised school code, (MCL 380.3, 380.4,
380.5, 380.7, 380.11a, 380.502, 380.504, 380.507, 380.522, 380.524,
380.528, 380.552, 380.556, 380.561, sections 4 and 5 as amended by
2011 PA 232, section 7 as amended by 2007 PA 45, section 11a as
amended by 2010 PA 91, sections 502, 504, 507, 522, 524, 528, 556,
and 561 as amended by 2011 PA 277, section 552 as amended by 2012
PA 129, and by adding part 7C.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) "EDUCATION DISTRICT" MEANS A SCHOOL DISTRICT1
ORGANIZED UNDER PART 2A.2
2
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(2) "EDUCATION MANAGER" MEANS AN EDUCATION MANAGER APPOINTED1
UNDER SECTION ___.2
(3) (1) "Educational media center" means a program operated by3
an intermediate school district and approved by the state board4
SUPERINTENDENT OF PUBLIC INSTRUCTION that provides services to5
local school districts or constituent districts under section 671.6
(4) "EMPOWERED DISTRICT" MEANS AN EDUCATION DISTRICT OR A7
SCHOOL DISTRICT DEFINED UNDER PART 7C.8
(5) "EMPOWERMENT ZONE" MEANS A SCHOOL EMPOWERMENT ZONE9
ESTABLISHED UNDER PART 7C.10
(6) "EMPOWERMENT ZONE SCHOOL" MEANS A PUBLIC SCHOOL BUILDING11
LOCATED WITHIN AN EMPOWERMENT ZONE.12
(7) "EMPOWERMENT ZONE SCHOOL BOARD" MEANS THE BOARD OR BOARD13
OF DIRECTORS OF A PUBLIC SCHOOL THAT OCCUPIES A SCHOOL BUILDING14
LOCATED WITHIN A SCHOOL EMPOWERMENT ZONE.15
(8) "HIGH-PERFORMING SCHOOL" MEANS A PUBLIC SCHOOL BUILDING16
THAT SATISFIES ALL OF THE FOLLOWING:17
(i) IS LOCATED IN AN EMPOWERMENT ZONE.18
(ii) FOR A BUILDING THAT INCLUDES PUPILS IN SOME CONFIGURATION19
OF GRADES BETWEEN KINDERGARTEN AND 12TH GRADE, 80 PERCENT OR MORE20
OF THE PUPILS RECEIVED A SCORE OF PROFICIENT OR BETTER ON THE21
MICHIGAN STUDENT TEST OF EDUCATIONAL PROGRESS (M-STEP) MATHEMATICS22
AND READING TESTS OR ANY SUCCESSOR STATE ASSESSMENT.23
(iii) FOR A BUILDING THAT INCLUDES PUPILS IN GRADES 9 TO 12, 80%24
OR MORE OF THE PUPILS IN THE PRIOR YEAR FOR WHICH IS DATA IS25
AVAILABLE HAVE GONE ON TO A PUBLIC OR PRIVATE UNIVERSITY, A26
COMMUNITY COLLEGE, AN APPRENTICE OR SKILLED TRADES PROGRAM,27
MILITARY SERVICE, OR ANY OTHER TRAINING PROGRAM THAT RESULTS IN A28
3
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MARKETABLE LABOR CERTIFICATE UPON COMPLETION, AS DETERMINED BY THE1
EDUCATION MANAGER FOR THE BUILDING.2
(iv) HAS 70 PERCENT OR MORE OF PUPILS THAT MEET THE INCOME3
ELIGIBILITY CRITERIA FOR THE FEDERAL FREE OR REDUCED-PRICE LUNCH4
PROGRAM, AS DETERMINED UNDER THE RICHARD B. RUSSELL NATIONAL SCHOOL5
LUNCH ACT, 42 USC 1751 TO 1769I, BASED UPON INFORMATION REPORTED TO6
THE DEPARTMENT.7
(v) PARTICIPATES IN A ZONE ENROLLMENT PLAN UNDER PART 7C.8
(9) (2) "Intermediate school board" means the board of an9
intermediate school district.10
(10) (3) "Intermediate school district" means a corporate body11
established under part 7.12
(11) (4) "Intermediate school district election" means an13
election called by an intermediate school board and held on the14
date of the regular school elections of constituent districts or on15
a date determined by the intermediate school board under section16
642c of the Michigan election law, MCL 168.642c.17
(12) (5) "Intermediate school elector" means a person who is a18
school elector of a constituent district and who is registered in19
the city or township in which the person resides.20
(13) (6) "Intermediate superintendent" means the21
superintendent of an intermediate school district.22
Sec. 5. (1) "Local act school district" or "special act school23
district" means a district governed by a special or local act or24
chapter of a local act. "Local school district" and "local school25
district board" as used in article 3 include a local act school26
district and a local act school district board.27
4
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(2) "LOCAL EDUCATION COMMISSION" MEANS THE BOARD OF AN1
EMPOWERMENT ZONE.2
(3) (2) "Membership" means the number of full-time equivalent3
pupils in a public school as determined by the number of pupils4
registered for attendance plus pupils received by transfer and5
minus pupils lost as defined by rules promulgated by the state6
boardSUPERINTENDENT OF PUBLIC INSTRUCTION.7
(4) (3) "Michigan election law" means the Michigan election8
law, 1954 PA 116, MCL 168.1 to 168.992.9
(5) (4) "Nonpublic school" means a private, denominational, or10
parochial school.11
(6) (5) "Objectives" means measurable pupil academic skills12
and knowledge.13
(7) "OPERATOR" MEANS A PARTNERSHIP, NONPROFIT OR BUSINESS14
CORPORATION, LABOR ORGANIZATION, OR ANY OTHER ASSOCIATION,15
CORPORATION, TRUST, OR OTHER LEGAL ENTITY, INCLUDING AN EDUCATIONAL16
MANAGEMENT ORGANIZATION UNDER SECTIONS 503, 523C AND 553C, THAT17
CONTRACTS WITH A PUBLIC SCHOOL ACADEMY OR EMPOWERMENT ZONE SCHOOL,18
AS APPLICABLE, TO MANAGE OR PROVIDE EDUCATIONAL SERVICES TO THE19
PUBLIC SCHOOL ACADEMY OR EMPOWERMENT ZONE SCHOOL.20
(8) (6) "Public school" means a public elementary or secondary21
educational entity or agency that is established under this act OR22
OTHER LAWS OF THIS STATE, has as its primary mission the teaching23
and learning of academic and vocational-technical skills and24
knowledge, and is operated by a school district, local act school25
district, special act school district, intermediate school26
district, school of excellence, public school academy corporation,27
strict discipline academy corporation, urban high school academy28
5
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corporation, EMPOWERMENT ZONE SCHOOL, or by the department, or1
state board, OR OTHER PUBLIC BODY. Public school also includes a2
laboratory school or other elementary or secondary school that is3
controlled and operated by a state public university described in4
section 4, 5, or 6 of article VIII of the state constitution of5
1963. PUBLIC SCHOOL DOES NOT INCLUDE A NONPUBLIC SCHOOL.6
(9) (7) "Public school academy" means a public school academy7
established under part 6a and, except as used in part 6a, also8
includes an urban high school academy established under part 6c, a9
school of excellence established under part 6e, and a strict10
discipline academy established under sections 1311b to 1311m.11
(10) (8) "Pupil membership count day" of a school district12
means that term as defined in section 6 of the state school aid act13
of 1979, MCL 388.1606.14
(11) "RECONSTITUTE" OR "RECONSTITUTION" MEANS THE PROCESS BY15
WHICH AN AUTHORIZING BODY OR EDUCATION MANAGER REMOVES AN OPERATOR16
FROM, OR MAKES SIGNIFICANT CHANGES TO THE GOVERNANCE,17
ADMINISTRATION, MANAGEMENT, EDUCATIONAL PROGRAMMING, CURRICULA, OR18
INSTRUCTIONAL STAFFING OF A PUBLIC SCHOOL ACADEMY OR EMPOWERMENT19
ZONE SCHOOL, FOR THE PURPOSE OF IMPROVING THE EDUCATIONAL20
PERFORMANCE OF PUPILS ENROLLED IN THE PUBLIC SCHOOL ACADEMY OR21
EMPOWERMENT ZONE SCHOOL.22
(12) (9) "Regular school election" or "regular election" means23
the election held in a school district, local act school district,24
or intermediate school district to elect a school board member in25
the regular course of the terms of that office and held on the26
school district's regular election date as determined under section27
642c of the Michigan election law, MCL 168.642c.28
6
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(13) "REMOVE AND REPLACE" MEANS THE PROCESS WITHIN AN1
EMPOWERMENT ZONE BY WHICH AN EMPOWERMENT ZONE SCHOOL IS REMOVED2
FROM A SCHOOL BUILDING AND REPLACED BY ANOTHER PUBLIC SCHOOL IN3
THAT THE SCHOOL BUILDING TO DELIVER PUBLIC EDUCATIONAL SERVICES, AS4
AUTHORIZED BY AN EDUCATION MANAGER UNDER PART 7C.5
(14) (10) "Reorganized intermediate school district" means an6
intermediate school district formed by consolidation or annexation7
of 2 or more intermediate school districts under sections 701 and8
702.9
(15) "REPLICATE" OR "REPLICATION" MEANS THE PROCESS USED BY A10
SCHOOL DISTRICT OR PUBLIC SCHOOL ACADEMY WITHIN AN EMPOWERMENT ZONE11
THAT SUBSTANTIALLY REPRODUCES THE SCHOOL FACILITIES, ACADEMIC12
PROGRAM, CURRICULA, OR AGE OR GRADE RANGE CONFIGURATION OF A HIGH-13
PERFORMING SCHOOL, AS APPROVED BY AN EDUCATION MANAGER UNDER PART14
7C.15
(16) (11) "Rule" means a rule promulgated under the16
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to17
24.328.18
Sec. 7. (1) "Valuation of a fractional school district" means19
the sum of the valuations of the fractions thereof, each of which20
shall be computed in the same manner as the valuation of a whole21
school district.22
(2) "Valuation of the state" means the equalized value as23
determined by the state board of equalization.24
(3) "Valuation of a whole school district" means the total25
assessed value of the property contained in the district as fixed26
by the township or city board of review, which in turn is27
proportionately increased or decreased to the basis of the28
7
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valuation of the county containing the district as fixed by the1
county board of equalization, and the result in turn2
proportionately increased or decreased to the basis of the3
valuation of the county containing the district as last fixed by4
the state board of equalization, known as the "state equalized5
valuation".6
(4) "Vocational education" or "career and technical education"7
means education designed to provide career development and the8
knowledge and skills leading to technical employment or higher9
education in a technical field. Career and technical education10
programs include classroom and laboratory experiences and work-11
based instruction. The term includes guidance and counseling for a12
pupil related to the career for which the pupil is being educated13
and trained or designed to help the pupil benefit from the14
training. Allowable expenses related to career and technical15
education delivery include all instructional, support, and16
administrative costs associated with providing these activities,17
including, but not limited to, staff salaries, wages, and benefits18
for career and technical education programs only; information and19
awareness activities; acquisition and rental of real property;20
construction of buildings; acquisition of equipment and supplies;21
and maintenance, repair, and replacement of buildings, lands,22
equipment, and supplies.23
(5) "ZONE ACCOUNTABILITY PLAN" MEANS A PLAN DEVELOPED BY AN24
EDUCATION MANAGER TO MEASURE ACADEMIC GROWTH AND ACCOUNTABILITY OF25
AN EMPOWERMENT ZONE SCHOOL UNDER PART 7C.26
8
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(6) “ZONE ENROLLMENT PLAN” MEANS A PLAN DEVELOPED BY AN1
EDUCATION MANAGER UNDER PART 7C FOR THE ENROLLMENT OF PUPILS IN2
EMPOWERMENT ZONE SCHOOLS.3
(7) "ZONE FACILITIES PLAN" MEANS A PLAN DEVELOPED BY AN4
EDUCATION MANAGER UNDER PART 7C FOR THE USE OF SCHOOL BUILDINGS5
WITHIN AN SCHOOL EMPOWERMENT ZONE AND THE REPURPOSING OF UNUSED OR6
VACANT SCHOOL BUILDINGS UNDER PART 7C.7
Sec. 11a. (1) Beginning on July 1, 1996, each school district8
formerly organized as a primary school district or as a school9
district of the fourth class, third class, or second class shall be10
a general powers school district under this act.11
(2) Beginning on July 1, 1996, a school district operating12
under a special or local act shall operate as a general powers13
school district under this act except to the extent that the14
special or local act is inconsistent with this act. Upon repeal of15
a special or local act that governs a school district, that school16
district shall become a general powers school district under this17
act.18
(3) SUBJECT TO PART 7C, A A general powers school district has19
all of the rights, powers, and duties expressly stated in this act;20
may exercise a power implied or incident to a power expressly21
stated in this act; and, except as OTHERWISE provided by law, may22
exercise a power incidental or appropriate to the performance of a23
function related to operation of the school district PUBLIC SCHOOLS24
AND THE PROVISION OF PUBLIC EDUCATION SERVICES in the interests of25
public elementary and secondary education in the school district,26
including, but not limited to, all of the following:27
9
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(a) Educating pupils. In addition to educating pupils in1
grades K-12, this function may include operation of preschool,2
lifelong education, adult education, community education, training,3
enrichment, and recreation programs for other persons. A SCHOOL4
DISTRICT MAY DO EITHER OR BOTH OF THE FOLLOWING:5
(i) EDUCATE PUPILS BY DIRECTLY OPERATING 1 OR MORE PUBLIC6
SCHOOLS ON ITS OWN.7
(ii) CAUSE PUBLIC EDUCATION SERVICES TO BE PROVIDED TO8
RESIDENTS OF THE SCHOOL DISTRICT THROUGH AN AGREEMENT, CONTRACT, OR9
OTHER COOPERATIVE AGREEMENT WITH ANOTHER PUBLIC ENTITY, INCLUDING,10
BUT NOT LIMITED TO, ANOTHER SCHOOL DISTRICT OR AN INTERMEDIATE11
SCHOOL DISTRICT.12
(b) Providing for the safety and welfare of pupils while at13
school or a school sponsored activity or while en route to or from14
school or a school sponsored activity.15
(c) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ACQUIRING,16
Acquiring, constructing, maintaining, repairing, renovating,17
disposing of, or conveying school property, facilities, equipment,18
technology, or furnishings.19
(d) SUBJECT TO PART 7C, HIRING, Hiring, contracting for,20
scheduling, supervising, or terminating employees, independent21
contractors, and others, INCLUDING, BUT NOT LIMITED TO, ANOTHER22
SCHOOL DISTRICT OR AN INTERMEDIATE SCHOOL DISTRICT, to carry out23
school district powers. A school district may indemnify its24
employees AND CONTRACTORS.25
(e) Receiving, accounting for, investing, or expending school26
district PUBLIC SCHOOL money; borrowing money and pledging school27
district PUBLIC SCHOOL funds for repayment; and qualifying for28
10
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state school aid and other public or private money from local,1
regional, state, or federal sources.2
(4) A general powers school district may enter into3
agreements, CONTRACTS, or OTHER cooperative arrangements with other4
entities, public or private, INCLUDING, BUT NOT LIMITED TO, ANOTHER5
SCHOOL DISTRICT OR INTERMEDIATE SCHOOL DISTRICT, or join6
organizations as part of performing the functions of the school7
district. An agreement, CONTRACT, or OTHER cooperative arrangement8
that is entered into under this act is not required to comply with9
the provisions of the urban cooperation act of 1967, 1967 (Ex Sess)10
PA 7, MCL 124.501 to 124.512, as provided under section 503 of that11
act, MCL 124.503.12
(5) SUBJECT TO PART 7C, A A general powers school district is13
a body corporate and shall be governed by a school board. An act of14
a school board is not valid unless approved, at a meeting of the15
school board, by a majority vote of the members lawfully serving on16
the board.17
(6) The board of a general powers school district shall adopt18
bylaws. These bylaws may establish or change board procedures, the19
number of board officers, titles and duties of board officers, and20
any other matter related to effective and efficient functioning of21
the board. Regular meetings of the board shall be held at least22
once each month, at the time and place fixed by the bylaws. Special23
meetings may be called and held in the manner and for the purposes24
specified in the bylaws. Board procedures, bylaws, and policies in25
effect on the effective date of this section shall continue in26
effect until changed by action of the board.27
11
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(7) The board of a school district shall be elected as1
provided under this act and the Michigan election law. The number2
of members of the board of a general powers school district shall3
remain the same as for that school district before July 1, 19964
unless changed by the school electors of the school district at a5
regular or special school election. A ballot question for changing6
the number of board members may be placed on the ballot by action7
of the board or by petition submitted by school electors as8
provided under chapter XIV of the Michigan election law, MCL9
168.301 to 168.316.10
(8) Members of the board of a general powers school district11
shall be elected by the school electors for terms of 4 or 6 years,12
as provided by the school district's bylaws. At each regular school13
election, members of the board shall be elected to fill the14
positions of those whose terms will expire. A term of office begins15
as provided in section 302 of the Michigan election law, MCL16
168.302, and continues until a successor is elected and qualified.17
(9) The board of a general powers school district may submit18
to the school electors of the school district a question that is19
within the scope of the powers of the school electors and that the20
board considers proper for the management of the school system or21
the advancement of education in the school district. Upon the22
adoption of a question by the board, the board shall submit the23
question to the school electors by complying with section 312 of24
the Michigan election law, MCL 168.312.25
(10) A special election may be called by the board of a26
general powers school district as provided under chapter XIV of the27
Michigan election law, MCL 168.301 to 168.316.28
12
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(11) Unless expressly provided in 1995 PA 289, the THE powers1
of a school board or school district are not diminished by this2
section or by 1995 PA 289.3
(12) A school district operating a public library, public4
museum, or community recreational facility as of July 1, 1996 may5
continue to operate the public library, public museum, or community6
recreational facility.7
(13) A school district may establish and administer8
scholarships for its students or graduates to support their9
attendance at a postsecondary educational institution from funds10
the school district receives as a result of a compact entered into11
between this state and a federally recognized Indian tribe pursuant12
to the Indian gaming regulatory act, Public Law 100-497. A school13
district that establishes a scholarship program funded under this14
subsection shall ensure that the scholarship program provides for15
all of the following:16
(a) That a student or graduate is not eligible to be awarded a17
scholarship unless the student or graduate is enrolled in the18
school district for all of grades 9 to 12 and meets 1 of the19
following:20
(i) Is a resident of the school district for all of grades 9 to21
12.22
(ii) Was enrolled in the school district for the 2009-201023
school year but was not a resident of the school district for that24
school year, and is enrolled in the school district continuously25
after that school year until graduation.26
(b) That the amount of a scholarship awarded to a student or27
graduate who was not enrolled in and a continuous resident of the28
13
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school district for all of grades K to 12 shall be adjusted based1
on length of enrollment and continuous residency or, for a student2
or graduate described in subdivision (a)(ii), based on length of3
enrollment.4
(14) BEFORE OPENING A NEW PUBLIC SCHOOL BUILDING OR CHANGING5
THE CONFIGURATION OF AGES OR GRADE RANGES AT A PUBLIC SCHOOL6
BUILDING WITHIN A EMPOWERMENT ZONE, THE PUBLIC BODY SEEKING TO OPEN7
OR OCCUPY THE BUILDING MUST FIRST OBTAIN APPROVAL FROM THE8
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE. A REQUEST FOR APPROVAL9
UNDER THIS SUBSECTION MUST BE SUBMITTED TO THE EDUCATION MANAGER10
WITHIN 10 DAYS OF APPROVAL BY PUBLIC BODY. WITHIN 30 DAYS OF11
RECEIPT, THE EDUCATION MANAGER SHALL APPROVE THE REQUEST AS12
CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES13
PLAN FOR THE EMPOWERMENT ZONE, OR DENY THE REQUEST AS INCONSISTENT14
WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE15
DECISION OF AN EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND16
NOT SUBJECT TO APPEAL.17
(15) CLOSURE OF A SCHOOL BUILDING WITHIN A EMPOWERMENT ZONE18
DOES NOT REQUIRE APPROVAL BY AN EDUCATION MANAGER. A PUBLIC SCHOOL19
BUILDING WITHIN A EMPOWERMENT ZONE THAT IS VOLUNTARILY CLOSED,20
CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C, OR CLOSED21
BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY PLAN,22
SHALL BE MADE AVAILABLE FOR USE BY THE EDUCATION MANAGER FOR THE23
EMPOWERMENT ZONE AT THE BEGINNING OF THE NEXT SCHOOL FISCAL YEAR24
AFTER THE CLOSURE.25
(16) A PUBLIC BODY OPERATING A PUBLIC SCHOOL WITHIN A26
EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF AN27
EDUCATION MANAGER TO OPERATE A SCHOOL BUILDING IN USE AS A PUBLIC28
14
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SCHOOL ON THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS1
SUBSECTION.2
(17) A PUBLIC BODY OPERATING A HIGH-PERFORMING SCHOOL WITHIN A3
EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF AN4
EDUCATION MANAGER TO OPEN A NEW SCHOOL BUILDING IF THE EDUCATION5
MANAGER DETERMINES THAT THE PUBLIC BODY IS OPENING THE NEW SCHOOL6
BUILDING TO REPLICATE A HIGH-PERFORMING SCHOOL.7
(18) A PUBLIC BODY OPERATING A HIGH-PERFORMING SCHOOL WITHIN A8
EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF AN9
EDUCATION MANAGER TO CHANGE THE AGE OR GRADE RANGE CONFIGURATION AT10
THE HIGH-PERFORMING SCHOOL.11
(19) THE ENROLLMENT AND ADMISSIONS PROCESS OF A EMPOWERMENT12
ZONE SCHOOL SHALL BE CONSISTENT WITH THE ZONE ENROLLMENT PLAN UNDER13
PART 7C.14
(4) IF AN EDUCATION DISTRICT IS AN EMPOWERED DISTRICT OR IS A15
EMPOWERMENT ZONE SCHOOL, AND THE EDUCATION DISTRICT SEEKS TO OPEN A16
NEW SCHOOL BUILDING OR CHANGE THE AGE OR GRADE RANGE CONFIGURATION17
AT ANY EDUCATION DISTRICT BUILDING, THE EDUCATION DISTRICT MUST18
OBTAIN THE APPROVAL OF THE EDUCATION MANAGER. WITHIN 10 BUSINESS19
DAYS FOLLOWING SCHOOL BOARD APPROVAL, A EDUCATION DISTRICT SHALL20
SUBMIT THE EDUCATION DISTRICT'S REQUEST TO THE EDUCATION MANAGER.21
WITHIN 30 DAYS OF RECEIPT, THE EDUCATION MANAGER SHALL, CONSISTENT22
WITH THE ZONE ACCOUNTABILITY PLAN AND THE ZONE FACILITIES PLAN,23
APPROVE OR DENY THE SCHOOL DISTRICT'S REQUEST. THE DECISION OF THE24
EDUCATION MANAGER IS FINAL AND NOT SUBJECT TO APPEAL.25
Sec. 502. (1) SUBJECT TO PART 7C, A A public school academy26
shall be organized and administered under the direction of a board27
of directors in accordance with this part and with bylaws adopted28
15
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by the board of directors. A public school academy corporation1
shall be organized under the nonprofit corporation act, 1982 PA2
162, MCL 450.2101 to 450.3192, except that a public school academy3
corporation is not required to comply with sections 170 to 177 of4
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified5
under the state or federal constitution, a public school academy6
shall not be organized by a church or other religious organization7
and shall not have any organizational or contractual affiliation8
with or constitute a church or other religious organization.9
(2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, Any ANY of10
the following may act as an authorizing body to issue a contract to11
organize and operate 1 or more public school academies under this12
part:13
(a) The board of a school district that operates grades K to14
12. However, the board of a school district shall not issue a15
contract for a public school academy to operate outside the school16
district's boundaries, and a public school academy authorized by17
the board of a school district shall not operate outside that18
school district's boundaries. FOR PURPOSES OF THIS PART, THE BOARD19
OF A SCHOOL DISTRICT DOES NOT INCLUDE A LOCAL EDUCATION COMMISSION.20
(b) An intermediate school board. However, the board of an21
intermediate school district shall not issue a contract for a22
public school academy to operate outside the intermediate school23
district's boundaries, and a public school academy authorized by24
the board of an intermediate school district shall not operate25
outside that intermediate school district's boundaries.26
(c) The board of a community college. However, except as27
otherwise provided in this subdivision, the board of a community28
16
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college shall not issue a contract for a public school academy to1
operate in a school district organized as a school district of the2
first class, a public school academy authorized by the board of a3
community college shall not operate in a school district organized4
as a school district of the first class, the board of a community5
college shall not issue a contract for a public school academy to6
operate outside the boundaries of the community college district,7
and a public school academy authorized by the board of a community8
college shall not operate outside the boundaries of the community9
college district. The board of a community college also may issue a10
contract for not more than 1 public school academy to operate on11
the grounds of an active or closed federal military installation12
located outside the boundaries of the community college district,13
or may operate a public school academy itself on the grounds of14
such a federal military installation, if the federal military15
installation is not located within the boundaries of any community16
college district and the community college has previously offered17
courses on the grounds of the federal military installation for at18
least 10 years.19
(d) The governing board of a state public university. However,20
the combined total number of contracts for public school academies21
issued by all state public universities shall not exceed 30022
through December 31, 2012 and shall not exceed 500 through December23
31, 2014. After December 31, 2014, there is no limit on the24
combined total number of contracts for public school academies that25
may be issued by all state public universities.26
(e) Two or more of the public agencies described in27
subdivisions (a) to (d) exercising power, privilege, or authority28
17
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jointly pursuant to an interlocal agreement under the urban1
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to2
124.512.3
(3) To obtain a contract to organize and operate 1 or more4
public school academies, 1 or more persons or an entity may apply5
to an authorizing body described in subsection (2). The application6
shall include at least all of the following:7
(a) Identification of the applicant for the contract.8
(b) Subject to the resolution adopted by the authorizing body9
under section 503(5), a list of the proposed members of the board10
of directors of the public school academy and a description of the11
qualifications and method for appointment or election of members of12
the board of directors.13
(c) The proposed articles of incorporation, which shall14
include at least all of the following:15
(i) The name of the proposed public school academy.16
(ii) The purposes for the public school academy corporation.17
This language shall provide that the public school academy is18
incorporated pursuant to this part and that the public school19
academy corporation is a governmental entity.20
(iii) The name of the authorizing body.21
(iv) The proposed time when the articles of incorporation will22
be effective.23
(v) Other matters considered expedient to be in the articles24
of incorporation.25
(d) A copy of the proposed bylaws of the public school26
academy.27
18
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(e) Documentation meeting the application requirements of the1
authorizing body, including at least all of the following:2
(i) The governance structure of the public school academy.3
(ii) A copy of the educational goals of the public school4
academy and the curricula to be offered and methods of pupil5
assessment to be used by the public school academy. The educational6
goals shall include demonstrated improved pupil academic7
achievement for all groups of pupils. To the extent applicable, the8
progress of the pupils in the public school academy shall be9
assessed using at least a Michigan education assessment program10
(MEAP) test or the Michigan merit examination under section 1279g,11
as applicable.12
(iii) The admission policy and criteria to be maintained by the13
public school academy. The admission policy and criteria shall14
comply with section 504. This part of the application also shall15
include a description of how the applicant will provide to the16
general public adequate notice that a public school academy is17
being created and adequate information on the admission policy,18
criteria, and process.19
(iv) The school calendar and school day schedule.20
(v) The age or grade range of pupils to be enrolled.21
(f) Descriptions of staff responsibilities and of the public22
school academy's governance structure.23
(g) For an application to the board of a school district, an24
intermediate school board, or board of a community college,25
identification of the local and intermediate school districts in26
which the public school academy will be located.27
19
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(h) An agreement that the public school academy will comply1
with the provisions of this part and, subject to the provisions of2
this part, with all other state law applicable to public bodies and3
with federal law applicable to public bodies or school districts.4
(i) A description of and address for the proposed physical5
plant in which the public school academy will be located. An6
applicant may request the authorizing body to issue a contract7
allowing the public school academy board of directors to operate8
the same configuration of age or grade levels at more than 1 site.9
(4) An authorizing body shall oversee, or shall contract with10
an intermediate school district, community college, or state public11
university to oversee, each public school academy operating under a12
contract issued by the authorizing body. The authorizing body is13
responsible for overseeing compliance by the board of directors14
with the contract and all applicable law. This subsection does not15
relieve any other government entity of its enforcement or16
supervisory responsibility.17
(5) If the superintendent of public instruction finds that an18
authorizing body is not engaging in appropriate continuing19
oversight of 1 or more public school academies operating under a20
contract issued by the authorizing body, the superintendent of21
public instruction may suspend the power of the authorizing body to22
issue new contracts to organize and operate public school23
academies. A contract issued by the authorizing body during the24
suspension is void. A contract issued by the authorizing body25
before the suspension is not affected by the suspension.26
(6) An authorizing body shall not charge a fee, or require27
reimbursement of expenses, for considering an application for a28
20
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contract, for issuing a contract, or for providing oversight of a1
contract for a public school academy in an amount that exceeds a2
combined total of 3% of the total state school aid received by the3
public school academy in the school year in which the fees or4
expenses are charged. An authorizing body may provide other5
services for a public school academy and charge a fee for those6
services, but shall not require such an arrangement as a condition7
to issuing the contract authorizing the public school academy.8
(7) A public school academy shall be presumed to be legally9
organized if it has exercised the franchises and privileges of a10
public school academy for at least 2 years.11
(8) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, An AN12
authorizing body may enter into an intergovernmental agreement with13
another authorizing body to issue public school academy contracts.14
At a minimum, the agreement shall further the purposes set forth in15
section 501, describe which authorizing body shall issue the16
contract, and set forth which authorizing body will be responsible17
for monitoring compliance by the board of directors of the public18
school academy with the contract and all applicable law.19
(9) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW PUBLIC20
SCHOOL ACADEMY TO OPERATE WITHIN A EMPOWERMENT ZONE, THE21
AUTHORIZING BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION22
MANAGER FOR THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 1023
BUSINESS DAYS OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY24
SHALL SUBMIT ITS REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS25
OF RECEIPT, THE EDUCATION MANAGER SHALL APPROVE OR DENY THE26
REQUEST. THE DECISION OF THE EDUCATION MANAGER TO DENY AN27
AUTHORIZING BODY'S REQUEST TO ISSUE A CONTRACT FOR A NEW PUBLIC28
21
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SCHOOL ACADEMY WITHIN THE EMPOWERMENT ZONE UNDER THIS SUBSECTION IS1
FINAL AND NOT SUBJECT TO APPEAL.2
(10) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE3
APPROVAL OF AN EDUCATION MANAGER TO REVOKE OR TERMINATE AN EXISTING4
PUBLIC SCHOOL ACADEMY CONTRACT.5
(11) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE6
APPROVAL OF AN EDUCATION MANAGER TO REAUTHORIZE OR NOT REAUTHORIZE7
AN EXISTING PUBLIC SCHOOL ACADEMY CONTRACT.8
(12) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE9
APPROVAL OF AN EDUCATION MANAGER FOR THE MERGER OR CONSOLIDATION OF10
2 OR MORE PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE EMPOWERMENT11
ZONE.12
(13) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A PUBLIC13
SCHOOL ACADEMY THAT IS A HIGH-PERFORMING SCHOOL OPERATING WITHIN A14
EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF THE15
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW CONTRACT16
FOR A PUBLIC SCHOOL ACADEMY IF THE EDUCATION MANAGER DETERMINES17
THAT THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO REPLICATE18
THE HIGH-PERFORMING SCHOOL.19
(14) A PUBLIC SCHOOL ACADEMY SCHOOL BUILDING THAT IS CLOSED BY20
AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION, TERMINATION,21
OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A PUBLIC SCHOOL22
ACADEMY; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C; OR23
CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY24
PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE AVAILABLE FOR USE25
BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE26
BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT SCHOOL FISCAL27
YEAR.28
22
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Sec. 504. (1) A public school academy may be located in all or1
part of an existing public school building. EXCEPT AS OTHERWISE2
PROVIDED IN THIS SECTION, A A public school academy shall not3
operate at a site other than the site or sites requested for the4
configuration of age or grade levels that will use the site or5
sites, as specified in the contract. Under a contract AND EXCEPT AS6
OTHERWISE PROVIDED IN THIS SECTION, an authorizing body may permit7
a public school academy to operate the same configuration of age or8
grade levels at more than 1 site, and a public school academy may9
operate the same configuration of age or grade levels at more than10
1 site, as long as the public school academy is operating in11
compliance with its contract and is making measurable progress12
toward meeting its educational goals. EXCEPT AS OTHERWISE PROVIDED13
IN THIS SECTION, For FOR a contract for a new public school14
academy, an authorizing body may permit a public school academy to15
operate the same configuration of age or grade levels at more than16
1 site, and a public school academy may operate the same17
configuration of age or grade levels at more than 1 site, if the18
applicant for the proposed public school academy presents19
documentation to the authorizing body demonstrating that the20
applicant's proposed educational model has resulted in schools21
making measurable progress toward meeting their education goals.22
(2) A public school academy shall not charge tuition and shall23
not discriminate in its pupil admissions policies or practices on24
the basis of intellectual or athletic ability, measures of25
achievement or aptitude, status as a student with a disability, or26
any other basis that would be illegal if used by a school district.27
However, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, a public28
23
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school academy may limit admission to pupils who are within a1
particular range of age or grade level or on any other basis that2
would be legal if used by a school district and may give enrollment3
priority as provided in subsection (4).4
(3) Except for a foreign exchange student who is not a United5
States citizen, a public school academy shall not enroll a pupil6
who is not a resident of this state. EXCEPT AS OTHERWISE PROVIDED7
IN THIS SECTION, For FOR a public school academy authorized by a8
school district, intermediate school district, or community9
college, enrollment in the public school academy may be open to all10
individuals who reside in this state who meet the admission policy11
and shall be open to all pupils who reside within the geographic12
boundaries of that authorizing body who meet the admission policy,13
except that admission to a public school academy authorized by the14
board of a community college to operate, or operated by the board15
of a community college, on the grounds of a federal military16
installation, as described in section 502(2)(c), shall be open to17
all pupils who reside in the county in which the federal military18
installation is located. EXCEPT AS OTHERWISE PROVIDED IN THIS19
SECTION, For FOR a public school academy authorized by a state20
public university, enrollment shall be open to all pupils who21
reside in this state who meet the admission policy. Subject to22
subsection (4) AND SUBSECTION (10), if there are more applications23
to enroll in the public school academy than there are spaces24
available, pupils shall be selected to enroll using a random25
selection process. A public school academy shall allow any pupil26
who was enrolled in the public school academy in the immediately27
preceding school year to enroll in the public school academy in the28
24
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appropriate grade unless the appropriate grade is not offered at1
that public school academy.2
(4) A public school academy may give enrollment priority to 13
or more of the following:4
(a) A sibling of a pupil enrolled in the public school5
academy.6
(b) A pupil who transfers to the public school academy from7
another public school pursuant to a matriculation agreement between8
the public school academy and other public school that provides for9
this enrollment priority, if all of the following requirements are10
met:11
(i) Each public school that enters into the matriculation12
agreement remains a separate and independent public school.13
(ii) The public school academy that gives the enrollment14
priority selects at least 5% of its pupils for enrollment using a15
random selection process.16
(iii) The matriculation agreement allows any pupil who was17
enrolled at any time during elementary school in a public school18
that is party to the matriculation agreement and who was not19
expelled from the public school to enroll in the public school20
academy giving enrollment priority under the matriculation21
agreement.22
(c) A child of a person who is employed by or at the public23
school academy or who is on the board of directors of the public24
school academy. As used in this subdivision, "child" includes an25
adopted child or a legal ward.26
(5) A public school academy may include any grade up to grade27
12 or any configuration of those grades, including kindergarten and28
25
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early childhood education, as specified in its contract. If1
specified in its contract, a public school academy may also operate2
an adult basic education program, adult high school completion3
program, or general education development testing preparation4
program. SUBJECT TO PART 7C, The THE authorizing body may approve5
amendment of a contract with respect to ages of pupils or grades6
offered.7
(6) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A8
PUBLIC SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE SCHOOL, AN9
AUTHORIZING BODY SHALL NOT APPROVE A PUBLIC SCHOOL ACADEMY TO ADD10
ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE OR11
GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE12
EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A PUBLIC13
SCHOOL ACADEMY'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE PUBLIC14
SCHOOL ACADEMY’S AUTHORIZING BODY SHALL SUBMIT THE ADDITIONAL SITE15
REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE16
EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE REQUEST AS17
CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES18
PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL SITE REQUEST19
AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE20
FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER THIS21
SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.22
(7) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, AN23
AUTHORIZING BODY THAT ISSUES A CONTRACT TO A PUBLIC SCHOOL ACADEMY24
OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO OBTAIN THE25
APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL SITE IF THE26
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE ADDITION27
SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE IS FOR28
26
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THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS1
SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE AN ADDITIONAL2
SITE REQUEST FOR A PUBLIC SCHOOL ACADEMY.3
(8) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A4
PUBLIC SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE SCHOOL, AN5
AUTHORIZING BODY SHALL NOT PERMIT A PUBLIC SCHOOL ACADEMY TO CHANGE6
THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE PUBLIC7
SCHOOL ACADEMY WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR8
THE SCHOOL EMPOWERMENT ZONE IN WHICH THE PUBLIC SCHOOL ACADEMY IS9
LOCATED. WITHIN 10 BUSINESS DAYS AFTER A PUBLIC SCHOOL ACADEMY'S10
APPROVAL OF AN AGE OR GRADE RANGE CHANGE REQUEST, THE AUTHORIZING11
BODY FOR THE PUBLIC SCHOOL ACADEMY SHALL SUBMIT THE PUBLIC SCHOOL12
ACADEMY'S AGE OR GRADE RANGE CHANGE REQUEST TO THE EDUCATION13
MANAGER. WITHIN 30 DAYS OF RECEIPT, THE EDUCATION MANAGER SHALL14
APPROVE THE REQUEST AS CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN15
AND ZONE FACILITIES PLAN FOR THE EMPOWERMENT ZONE OR DENY THE16
REQUEST AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE17
FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER THIS18
SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.19
(9) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A PUBLIC20
SCHOOL ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED21
TO OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE THE22
CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING SCHOOL.23
NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE24
AN AGE OR GRADE RANGE REQUEST FOR A PUBLIC SCHOOL ACADEMY.25
(10) FOR A PUBLIC SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE26
SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT AND27
ADMISSIONS PROCESS OF THE PUBLIC SCHOOL ACADEMY INCORPORATED INTO28
27
______'15 ____
THE CONTRACT FOR THE PUBLIC SCHOOL ACADEMY IS CONSISTENT WITH ZONE1
ENROLLMENT PLAN UNDER PART 7C.2
Sec. 507. (1) An authorizing body that issues a contract for a3
public school academy under this part shall do all of the4
following:5
(a) Ensure that the contract and the application for the6
contract comply with the requirements of this part AND PART 7C.7
(b) Within 10 days after issuing the contract, submit to the8
department a copy of the contract.9
(c) Establish the method of selection, length of term, and10
number of members of the board of directors of each public school11
academy that it authorizes. The authorizing body shall ensure that12
the board of directors includes representation from the local13
community.14
(d) Oversee each public school academy operating under a15
contract issued by the authorizing body. The oversight shall be16
sufficient to ensure that the board of directors is in compliance17
with the terms of the contract and with applicable law.18
(e) Develop and implement a process for holding a public19
school academy accountable for meeting applicable academic20
performance standards set forth in the contract and for21
implementing corrective action for a public school academy that22
does not meet those standards.23
(f) Take necessary measures to ensure that the board of24
directors of a public school academy operates independently of any25
educational management company involved in the operations of the26
public school academy.27
28
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(g) Oversee and ensure that the pupil admission process used1
by the public school academy is operated in a fair and open manner2
and is in compliance with the contract ,this part AND PART 7C.3
(h) Ensure that the board of directors of the public school4
academy maintains and releases information as necessary to comply5
with applicable law.6
(2) An authorizing body may enter into an agreement with 1 or7
more other authorizing bodies to carry out any function of an8
authorizing body under this act.9
(3) The authorizing body for a public school academy is the10
fiscal agent for the public school academy. A state school aid11
payment for a public school academy shall be paid to the12
authorizing body that is the fiscal agent for that public school13
academy, and the authorizing body shall then forward the payment to14
the public school academy. Within 30 days after a contract is15
submitted to the department by an authorizing body under subsection16
(1), the department shall issue a district code to the public17
school academy for which the contract was issued. If the department18
does not issue a district code within 30 days after a contract is19
filed, the state treasurer shall assign a temporary district code20
in order for the public school academy to receive funding under the21
state school aid act of 1979.22
(4) A contract issued under this part may be revoked by the23
authorizing body if the authorizing body determines that 1 or more24
of the following have occurred:25
(a) Failure of the public school academy to demonstrate26
improved pupil academic achievement for all groups of pupils or27
meet the educational goals set forth in the contract.28
29
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(b) Failure of the public school academy to comply with all1
applicable law.2
(c) Failure of the public school academy to meet generally3
accepted public sector accounting principles and demonstrate sound4
fiscal stewardship.5
(d) The existence of 1 or more other grounds for revocation as6
specified in the contract.7
(5) Except for a public school academy that is an alternative8
school serving a special student population, if the superintendent9
of public instruction STATE SCHOOL REFORM/REDESIGN OFFICER10
determines that a public school academy site that has been11
operating for at least 4 years is among the lowest achieving 5% of12
all public schools in this state FOR 3 CONSECUTIVE YEARS, as13
defined IN SECTION 1280C, for the purposes of the federal incentive14
grant program created under sections 14005 and 14006 of title XIV15
of the American recovery and reinvestment act of 2009, Public Law16
111-5, is in year 2 of restructuring sanctions under the no child17
left behind act of 2001, Public Law 107-110, not to include the ANY18
individualized education plan subgroup, and is not currently19
undergoing reconstitution under this section, the superintendent of20
public instruction STATE SCHOOL REFORM/REDESIGN OFFICER shall21
notify the public school academy's authorizing body. If an22
authorizing body receives notice from the superintendent of public23
instruction STATE SCHOOL REFORM/REDESIGN OFFICER under this24
subsection, the authorizing body shall amend the public school25
academy's contract to eliminate the public school academy's26
authority to operate the existing age and grade levels at the site27
and the public school academy shall cease operating the existing28
30
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age and grade levels at the site, effective at the end of the1
current school year. If the public school academy operates at only2
1 site, and the authorizing body receives notice from the3
superintendent of public instruction STATE SCHOOL REFORM/REDESIGN4
OFFICER under this subsection, the authorizing body shall revoke5
the public school academy's contract, effective at the end of the6
current school year.7
(6) FOR A PUBLIC SCHOOL ACADEMY THAT IS A SCHOOL EMPOWERMENT8
ZONE SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN9
AUTHORIZING BODY SHALL PERMIT AN EDUCATION MANAGER TO RECONSTITUTE10
THE PUBLIC SCHOOL ACADEMY IF THE PUBLIC SCHOOL ACADEMY IS LISTED ON11
THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR THREE12
CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A13
RECONSTITUTION PROVISION IN THE CONTRACT FOR THE PUBLIC SCHOOL14
ACADEMY THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT15
LIMITED TO, 1 OR MORE OF THE FOLLOWING:16
(A) AUTOMATIC CANCELLATION OF A CONTRACT WITH AN EDUCATIONAL17
MANAGEMENT ORGANIZATION.18
(B) WITHDRAWAL OF APPROVAL OF A CONTRACT UNDER SECTION 506.19
(C) AUTHORIZING AN EDUCATION MANAGER TO CONDUCT ON BEHALF OF20
THE PUBLIC SCHOOL ACADEMY BOARD OF DIRECTORS A REQUEST FOR PROPOSAL21
PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES FOR THE22
PUBLIC SCHOOL ACADEMY.23
(D) IF THE BUILDING IS SUBJECT TO A SUPERINTENDENT'S CLOSURE24
ORDER UNDER PART 7C, A REQUEST FOR PROPOSAL PROCESS TO REMOVE AND25
REPLACE, OR APPOINTING A NEW BOARD OF DIRECTORS OR A TRUSTEE TO26
TAKE OVER OPERATION OF THE PUBLIC SCHOOL ACADEMY.27
31
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(7) NOTHING IN THIS SECTION PROHIBITS AN AUTHORIZING BODY FROM1
RECONSTITUTING A PUBLIC SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE2
SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS THAT3
A PUBLIC SCHOOL ACADEMY IS LISTED ON THE LOWEST ACHIEVING SCHOOLS4
LIST UNDER SECTION 1280C.5
(6)(8) EXCEPT AS PROVIDED IN SECTION 502, The THE decision of6
an authorizing body to issue, not issue, or reconstitute a contract7
under this part, or to terminate or revoke a contract under this8
section, is solely within the discretion of the authorizing body,9
is final, and is not subject to review by a court or any state10
agency. An authorizing body that issues, does not issue, or11
reconstitutes a contract under this part, or that terminates or12
revokes a contract under this section, is not liable for that13
action to the public school academy, the public school academy14
corporation, a pupil of the public school academy, the parent or15
guardian of a pupil of the public school academy, or any other16
person.17
(7) (11) Except as otherwise provided in subsection (5),18
before EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE an19
authorizing body revokes OR ELECTS NOT TO REISSUE a contract, the20
authorizing body may consider and take corrective measures to avoid21
revocation. An authorizing body may reconstitute the public school22
academy in a final attempt to improve student educational23
performance or to avoid interruption of the educational process. An24
authorizing body shall include a reconstituting provision in the25
contract that identifies these corrective measures, including, but26
not limited to, canceling a contract with an educational management27
organization, if any, withdrawing approval of a contract under28
32
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section 506, or appointing a new board of directors or a trustee to1
take over operation of the public school academy.2
(8) (12) If an authorizing body revokes a contract, the3
authorizing body shall work with a school district or another4
public school, or with a combination of these entities, to ensure a5
smooth transition for the affected pupils. If the revocation occurs6
during the school year, the authorizing body, as the fiscal agent7
for the public school academy under this part, shall return any8
school aid funds held by the authorizing body that are attributable9
to the affected pupils to the state treasurer for deposit into the10
state school aid fund. The state treasurer shall distribute funds11
to the public school in which the pupils enroll after the12
revocation pursuant to a methodology established by the department13
and the center for educational performance and information.14
(9) (13) Not more than 10 days after a public school academy's15
contract terminates or is revoked, the authorizing body shall16
notify the superintendent of public instruction in writing of the17
name of the public school academy whose contract has terminated or18
been revoked and the date of contract termination or revocation.19
Sec. 522.(1) SUBJECT TO PART 7C, An AN urban high school20
academy shall be organized and administered under the direction of21
a board of directors in accordance with this part and with bylaws22
adopted by the board of directors. An urban high school academy23
corporation shall be organized under the nonprofit corporation act,24
1982 PA 162, MCL 450.2101 to 450.3192, except that an urban high25
school academy corporation is not required to comply with sections26
170 to 177 of 1931 PA 327, MCL 450.170 to 450.177. To the extent27
disqualified under the state or federal constitution, an urban high28
33
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school academy shall not be organized by a church or other1
religious organization and shall not have any organizational or2
contractual affiliation with or constitute a church or other3
religious organization.4
(2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, The THE5
governing board of a state public university may act as an6
authorizing body to issue a contract for the organization and7
operation of an urban high school academy under this part.8
(3) A contract issued under this part shall be issued for an9
initial term of 10 years. If the urban high school academy meets10
the educational goals set forth in the contract and operates in11
substantial compliance with this part, the authorizing body shall12
automatically renew the contract for a subsequent 10-year term.13
(4) To obtain a contract to organize and operate 1 or more14
urban high school academies, an entity may apply to an authorizing15
body described in subsection (2). The contract shall be issued to16
an urban high school academy corporation designated by the entity17
applying for the contract. The application shall include at least18
all of the following:19
(a) Name of the entity applying for the contract.20
(b) Subject to the resolution adopted by the authorizing body21
under section 528, a list of the proposed members of the board of22
directors of the urban high school academy and a description of the23
qualifications and method for appointment or election of members of24
the board of directors.25
(c) The proposed articles of incorporation, which shall26
include at least all of the following:27
34
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(i) The name of the proposed urban high school academy to which1
the contract will be issued.2
(ii) The purposes for the urban high school academy3
corporation. This language shall provide that the urban high school4
academy is incorporated pursuant to this part and that the urban5
high school academy corporation is a governmental entity and6
political subdivision of this state.7
(iii) The name of the authorizing body.8
(iv) The proposed time when the articles of incorporation will9
be effective.10
(v) Other matters considered expedient to be in the articles11
of incorporation.12
(d) A copy of the proposed bylaws of the urban high school13
academy.14
(e) Documentation meeting the application requirements of the15
authorizing body, including at least all of the following:16
(i) The governance structure of the urban high school academy.17
(ii) A copy of the educational goals of the urban high school18
academy and the curricula to be offered and methods of pupil19
assessment to be used by the urban high school academy. The20
educational goals shall include demonstrated improved pupil21
academic achievement for all groups of pupils. To the extent22
applicable, the progress of the pupils in the urban high school23
academy shall be assessed using at least a Michigan education24
assessment program (MEAP) test or the Michigan merit examination25
under section 1279g, as applicable.26
(iii) The admission policy and criteria to be maintained by the27
urban high school academy. The admission policy and criteria shall28
35
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comply with section 524. This part of the application also shall1
include a description of how the applicant will provide to the2
general public adequate notice that an urban high school academy is3
being created and adequate information on the admission policy,4
criteria, and process.5
(iv) The school calendar and school day schedule.6
(v) The age or grade range of pupils to be enrolled.7
(f) Descriptions of staff responsibilities and of the urban8
high school academy's governance structure.9
(g) A description of and address for the proposed building or10
buildings in which the urban high school academy will be located,11
and a financial commitment by the entity applying for the contract12
to construct or renovate the building or buildings that will be13
occupied by the urban high school academy that is issued the14
contract.15
(5) If a particular state public university issues a contract16
that allows an urban high school academy to operate the same17
configuration of grades at more than 1 site, as provided in section18
524(1), each of those sites shall be under the direction of the19
board of directors that is a party to the contract.20
(6) If the superintendent of public instruction finds that an21
authorizing body is not engaging in appropriate continuing22
oversight of 1 or more urban high school academies operating under23
a contract issued by the authorizing body, the superintendent of24
public instruction may suspend the power of the authorizing body to25
issue new contracts to organize and operate urban high school26
academies. A contract issued by the authorizing body during the27
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suspension is void. A contract issued by the authorizing body1
before the suspension is not affected by the suspension.2
(7) An authorizing body shall not charge a fee, or require3
reimbursement of expenses, for considering an application for a4
contract, for issuing a contract, or for providing oversight of a5
contract for an urban high school academy in an amount that exceeds6
a combined total of 3% of the total state school aid received by7
the urban high school academy in the school year in which the fees8
or expenses are charged. All of the following apply to this fee:9
(a) An authorizing body may use this fee only for the10
following purposes:11
(i) Considering applications and issuing or administering12
contracts.13
(ii) Compliance monitoring and oversight of urban high school14
academies.15
(iii) Training for urban high school academy applicants,16
administrators, and boards of directors.17
(iv) Technical assistance to urban high school academies.18
(v) Academic support to urban high school academies or to19
pupils or graduates of urban high school academies.20
(vi) Evaluation of urban high school academy performance.21
(vii) Training of teachers, including supervision of teacher22
interns.23
(viii) Other purposes that assist the urban high school24
academies or traditional public schools in achieving improved25
academic performance.26
(b) An authorizing body may provide other services for an27
urban high school academy and charge a fee for those services, but28
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shall not require such an arrangement as a condition to issuing the1
contract authorizing the urban high school academy.2
(8) An urban high school academy shall be presumed to be3
legally organized if it has exercised the franchises and privileges4
of an urban high school academy for at least 2 years.5
(9) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW URBAN6
HIGH SCHOOL ACADEMY TO OPERATE WITHIN A EMPOWERMENT ZONE, THE7
AUTHORIZING BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION8
MANAGER FOR THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 109
BUSINESS DAYS OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY10
SHALL SUBMIT ITS REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS11
OF RECEIPT, THE EDUCATION MANAGER SHALL APPROVE OR DENY THE12
REQUEST. THE DECISION OF THE EDUCATION MANAGER TO DENY AN13
AUTHORIZING BODY'S REQUEST TO ISSUE A CONTRACT FOR A NEW URBAN HIGH14
SCHOOL ACADEMY WITHIN THE EMPOWERMENT ZONE UNDER THIS SUBSECTION IS15
FINAL AND NOT SUBJECT TO APPEAL.16
(10) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE17
APPROVAL OF AN EDUCATION MANAGER TO REVOKE OR TERMINATE AN EXISTING18
URBAN HIGH SCHOOL ACADEMY CONTRACT.19
(11) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE20
APPROVAL OF AN EDUCATION MANAGER TO REAUTHORIZE OR NOT REAUTHORIZE21
AN EXISTING URBAN HIGH SCHOOL ACADEMY CONTRACT.22
(12) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE23
APPROVAL OF AN EDUCATION MANAGER FOR THE MERGER OR CONSOLIDATION OF24
2 OR MORE PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE EMPOWERMENT25
ZONE.26
(13) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A URBAN27
HIGH SCHOOL ACADEMY THAT IS A HIGH-PERFORMING SCHOOL OPERATING28
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WITHIN A EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF1
THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW2
CONTRACT FOR A URBAN HIGH SCHOOL ACADEMY IF THE EDUCATION MANAGER3
DETERMINES THAT THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO4
REPLICATE THE HIGH-PERFORMING SCHOOL.5
(14) A URBAN HIGH SCHOOL ACADEMY SCHOOL BUILDING THAT IS6
CLOSED BY AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION,7
TERMINATION, OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A URBAN8
HIGH SCHOOL ACADEMY; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER9
PART 7C; OR CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE10
ACCOUNTABILITY PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE11
AVAILABLE FOR USE BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE12
IN WHICH THE BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT13
SCHOOL FISCAL YEAR.14
Sec. 524. (1) An urban high school academy may be located in15
all or part of an existing public school building. EXCEPT AS16
OTHERWISE PROVIDED IN THIS SECTION, An AN urban high school academy17
shall not operate at a site other than the site or sites, requested18
for the configuration of age or grade levels that will use the site19
or sites, as specified in the contract. Under a contract AND EXCEPT20
AS OTHERWISE PROVIDED IN THIS SECTION, an authorizing body may21
permit an urban high school academy to operate the same22
configuration of age or grade levels at more than 1 site, and an23
urban high school academy may operate the same configuration of age24
or grade levels at more than 1 site, as long as the urban high25
school academy is operating in compliance with its contract and is26
making measurable progress toward meeting its educational goals.27
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, For FOR a contract28
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for a new urban high school academy, an authorizing body may permit1
an urban high school academy to operate the same configuration of2
age or grade levels at more than 1 site, and an urban high school3
academy may operate the same configuration of age or grade levels4
at more than 1 site, if the applicant for the proposed urban high5
school academy presents documentation to the authorizing body6
demonstrating that the applicant's proposed educational model has7
resulted in schools making measurable progress toward meeting their8
educational goals.9
(2) An urban high school academy shall not charge tuition.10
Except as otherwise provided in this section, an urban high school11
academy shall not discriminate in its pupil admissions policies or12
practices on the basis of intellectual or athletic ability,13
measures of achievement or aptitude, status as a handicapped14
person, or any other basis that would be illegal if used by a15
school district. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,16
However, an urban high school academy may limit admission to pupils17
who are within a particular range of age or grade level or on any18
other basis that would be legal if used by a school district and19
may give enrollment priority as provided in subsection (4).20
(3) Except for a foreign exchange student who is not a United21
States citizen, an urban high school academy shall not enroll a22
pupil who is not a resident of this state. EXCEPT AS OTHERWISE23
PROVIDED IN THIS SECTION, Enrollment ENROLLMENT in an urban high24
school academy shall be open to all pupils who reside in this state25
who meet the admission policy. Subject to subsection (4) AND26
SUBSECTION (11), if there are more applications to enroll in the27
urban high school academy than there are spaces available, pupils28
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shall be selected to attend using a random selection process. An1
urban high school academy shall allow any pupil who was enrolled in2
the urban high school academy in the immediately preceding school3
year to enroll in the urban high school academy in the appropriate4
grade unless the appropriate grade is not offered at that urban5
high school academy.6
(4) An urban high school academy may give enrollment priority7
to 1 or more of the following:8
(a) A sibling of a pupil enrolled in the urban high school9
academy.10
(b) A child of a person who is employed by or at the urban11
high school academy or who is on the board of directors of the12
urban high school academy. As used in this subdivision, "child"13
includes an adopted child or a legal ward.14
(5) Subject to the terms of the contract authorizing the urban15
high school academy, an urban high school academy shall include at16
least grades 9 through 12 within 5 years after beginning operations17
and may include other grades or any configuration of those grades,18
including kindergarten and early childhood education, as specified19
in its contract. If specified in its contract, an urban high school20
academy may also operate an adult basic education program, adult21
high school completion program, or general education development22
testing preparation program.23
(6) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A URBAN24
HIGH SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE SCHOOL, AN25
AUTHORIZING BODY SHALL NOT APPROVE A URBAN HIGH SCHOOL ACADEMY TO26
ADD ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE27
OR GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR28
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THE EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A URBAN1
HIGH SCHOOL ACADEMY'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE2
URBAN HIGH SCHOOL ACADEMY’S AUTHORIZING BODY SHALL SUBMIT THE3
ADDITIONAL SITE REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF4
RECEIPT, THE EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE5
REQUEST AS CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE6
FACILITIES PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL7
SITE REQUEST AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND8
ZONE FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER9
THIS SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.10
(7) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, AN11
AUTHORIZING BODY THAT ISSUES A CONTRACT TO A URBAN HIGH SCHOOL12
ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO13
OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL14
SITE IF THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE15
ADDITION SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE16
IS FOR THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS17
SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE AN ADDITIONAL18
SITE REQUEST FOR A URBAN HIGH SCHOOL ACADEMY.19
(8) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A URBAN20
HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE SCHOOL, AN21
AUTHORIZING BODY SHALL NOT PERMIT A URBAN HIGH SCHOOL ACADEMY TO22
CHANGE THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE23
URBAN HIGH SCHOOL ACADEMY WITHOUT THE APPROVAL OF THE EDUCATION24
MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE URBAN HIGH SCHOOL25
ACADEMY IS LOCATED. WITHIN 10 BUSINESS DAYS AFTER A URBAN HIGH26
SCHOOL ACADEMY'S APPROVAL OF AN AGE OR GRADE RANGE CHANGE REQUEST,27
THE AUTHORIZING BODY FOR THE URBAN HIGH SCHOOL ACADEMY SHALL SUBMIT28
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THE URBAN HIGH SCHOOL ACADEMY'S AGE OR GRADE RANGE CHANGE REQUEST1
TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE EDUCATION2
MANAGER SHALL, APPROVE THE REQUEST AS CONSISTENT WITH THE ZONE3
ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN FOR THE EMPOWERMENT4
ZONE OR DENY THE REQUEST AS INCONSISTENT WITH THE ZONE5
ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE DECISION OF AN6
EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND NOT SUBJECT TO7
APPEAL.8
(9) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A URBAN9
HIGH SCHOOL ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT10
REQUIRED TO OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE11
THE CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING12
SCHOOL. NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO13
APPROVE AN AGE OR GRADE RANGE REQUEST FOR A URBAN HIGH SCHOOL14
ACADEMY.15
(10) FOR A URBAN HIGH SCHOOL ACADEMY THAT IS AN EMPOWERMENT16
ZONE SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT17
AND ADMISSIONS PROCESS OF THE URBAN HIGH SCHOOL ACADEMY18
INCORPORATED INTO THE CONTRACT FOR THE PUBLIC SCHOOL ACADEMY IS19
CONSISTENT WITH ZONE ENROLLMENT PLAN UNDER PART 7C.20
Sec. 528. (1) An authorizing body that issues a contract for21
an urban high school academy under this part shall do all of the22
following:23
(a) Ensure that the contract and the application for the24
contract comply with the requirements of this part AND PART 7C.25
(b) Within 10 days after issuing the contract, submit to the26
department a copy of the contract.27
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(c) Adopt a resolution establishing the method of selection,1
length of term, and number of members of the board of directors of2
each urban high school academy that it authorizes. The resolution3
shall be written or amended as necessary to include a requirement4
that each member of the board of directors must be a citizen of the5
United States.6
(d) Oversee the operations of each urban high school academy7
operating under a contract issued by the authorizing body. The8
oversight shall be sufficient to ensure that the urban high school9
academy is in compliance with the terms of the contract and with10
applicable law. An authorizing body may enter into an agreement11
with 1 or more other authorizing bodies to oversee an urban high12
school academy operating under a contract issued by the authorizing13
body.14
(e) Develop and implement a process for holding an urban high15
school academy board of directors accountable for meeting16
applicable academic performance standards set forth in the contract17
and for implementing corrective action for an urban high school18
academy that does not meet those standards.19
(f) Take necessary measures to ensure that an urban high20
school academy board of directors operates independently of any21
educational management company involved in the operations of the22
urban high school academy.23
(g) Oversee and ensure that the pupil admission process used24
by the urban high school academy is operated in a fair and open25
manner and is in compliance with the contract and , this part AND26
PART 7C.27
44
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(h) Ensure that the board of directors of the urban high1
school academy maintains and releases information as necessary to2
comply with applicable law.3
(2) An authorizing body may enter into an agreement with 1 or4
more other authorizing bodies to carry out any function of an5
authorizing body under this act.6
(3) The authorizing body for an urban high school academy is7
the fiscal agent for the urban high school academy. A state school8
aid payment for an urban high school academy shall be paid to the9
authorizing body that is the fiscal agent for that urban high10
school academy, which shall then forward the payment to the urban11
high school academy. Within 30 days after a contract is submitted12
to the department by an authorizing body under subsection (1), the13
department shall issue a district code to the urban high school14
academy for which the contract was issued. If the department does15
not issue a district code within 30 days after a contract is filed,16
the state treasurer shall assign a temporary district code in order17
for the urban high school academy to receive funding under the18
state school aid act of 1979.19
(4) A contract issued under this part may be revoked by the20
authorizing body that issued the contract if the authorizing body21
determines that 1 or more of the following have occurred:22
(a) Failure of the urban high school academy to demonstrate23
improved pupil academic achievement for all groups of pupils or24
meet the educational goals set forth in the contract.25
(b) Failure of the urban high school academy to comply with26
all applicable law.27
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(c) Failure of the urban high school academy to meet generally1
accepted public sector accounting principles and demonstrate sound2
fiscal stewardship.3
(d) The existence of 1 or more other grounds for revocation as4
specified in the contract.5
(5) Except for an urban high school academy that is an6
alternative school serving a special student population, if the7
superintendent of public instruction STATE SCHOOL REFORM/REDESIGN8
OFFICER determines that an urban high school academy site that has9
been operating for at least 4 years is among the lowest achieving10
5% of all public schools in this state FOR 3 CONSECUTIVE YEARS, as11
defined IN SECTION 1280C, for the purposes of the federal incentive12
grant program created under sections 14005 and 14006 of title XIV13
of the American recovery and reinvestment act of 2009, Public Law14
111-5, is in year 2 of restructuring sanctions under the no child15
left behind act of 2001, Public Law 107-110, not to include the ANY16
individualized education plan subgroup, and is not currently17
undergoing reconstitution under this section, the superintendent of18
public instruction STATE SCHOOL REFORM/REDESIGN OFFICER shall19
notify the urban high school academy's authorizing body. If an20
authorizing body receives notice from the superintendent of public21
instruction STATE SCHOOL REFORM/REDESIGN OFFICER under this22
subsection, the authorizing body shall amend the urban high school23
academy's contract to eliminate the urban high school academy's24
authority to operate the existing age and grade levels at the site25
and the urban high school academy shall cease operating the26
existing age and grade levels at the site, effective at the end of27
the current school year. If the urban high school academy operates28
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at only 1 site, and the authorizing body receives notice from the1
superintendent of public instruction STATE SCHOOL REFORM/REDESIGN2
OFFICER under this subsection, the authorizing body shall revoke3
the urban high school academy's contract, effective at the end of4
the current school year.5
(6) FOR A URBAN HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE6
SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN7
AUTHORIZING BODY SHALL PERMIT AN EDUCATION MANAGER TO RECONSTITUTE8
THE URBAN HIGH SCHOOL ACADEMY IF THE URBAN HIGH SCHOOL ACADEMY IS9
LISTED ON THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR10
THREE CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A11
RECONSTITUTION PROVISION IN THE CONTRACT FOR THE URBAN HIGH SCHOOL12
ACADEMY THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT13
LIMITED TO, 1 OR MORE OF THE FOLLOWING:14
(A) AUTOMATIC CANCELLATION OF A CONTRACT WITH AN EDUCATIONAL15
MANAGEMENT ORGANIZATION.16
(B) WITHDRAWAL OF APPROVAL OF A CONTRACT UNDER SECTION 506.17
(C) AUTHORIZING AN EDUCATION MANAGER TO CONDUCT ON BEHALF OF18
THE URBAN HIGH SCHOOL ACADEMY BOARD OF DIRECTORS A REQUEST FOR19
PROPOSAL PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES20
FOR THE URBAN HIGH SCHOOL ACADEMY.21
(D) IF THE BUILDING IS SUBJECT TO A SUPERINTENDENT'S CLOSURE22
ORDER UNDER PART 7C, A REQUEST FOR PROPOSAL PROCESS TO REMOVE AND23
REPLACE, OR APPOINTING A NEW BOARD OF DIRECTORS OR A TRUSTEE TO24
TAKE OVER OPERATION OF THE URBAN HIGH SCHOOL ACADEMY.25
(7) NOTHING IN THIS SECTION PROHIBITS AN AUTHORIZING BODY FROM26
RECONSTITUTING A URBAN HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT27
ZONE SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS28
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THAT A URBAN HIGH SCHOOL ACADEMY IS LISTED ON THE LOWEST ACHIEVING1
SCHOOLS LIST UNDER SECTION 1280C.2
(6) (8) EXCEPT AS PROVIDED IN SECTION 522, The THE decision3
of an authorizing body to issue, not issue, or reconstitute a4
contract under this part, or to terminate or revoke a contract5
under this section, is solely within the discretion of the6
authorizing body, is final, and is not subject to review by a court7
or any state agency. An authorizing body that issues, does not8
issue, or reconstitutes a contract under this part, or that9
terminates or revokes a contract under this section, is not liable10
for that action to the urban high school academy, the urban high11
school academy corporation, a pupil of the urban high school12
academy, the parent or guardian of a pupil of the urban high school13
academy, or any other person.14
(7) (9) Except as otherwise provided in subsection (5), before15
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE an authorizing16
body revokes OR ELECTS NOT TO REISSURE a contract, the authorizing17
body may consider and take corrective measures to avoid revocation.18
An authorizing body may reconstitute the urban high school academy19
in a final attempt to improve student educational performance or to20
avoid interruption of the educational process. An authorizing body21
shall include a reconstituting provision in the contract that22
identifies these corrective measures, including, but not limited23
to, removing 1 or more members of the board of directors,24
withdrawing approval to contract under section 527, or appointing a25
new board of directors or a trustee to take over operation of the26
urban high school academy.27
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(8) (10) If an authorizing body revokes a contract, the1
authorizing body shall work with a school district or another2
public school, or with a combination of these entities, to ensure a3
smooth transition for the affected pupils. If the revocation occurs4
during the school year, the authorizing body, as the fiscal agent5
for the urban high school academy under this part, shall return any6
school aid funds held by the authorizing body that are attributable7
to the affected pupils to the state treasurer for deposit into the8
state school aid fund. The state treasurer shall distribute funds9
to the public school in which the pupils enroll after the10
revocation pursuant to a methodology established by the department11
and the center for educational performance and information.12
(9) If an authorizing body revokes a contract issued under13
this part, the authorizing body may issue a new contract within the14
1-year period following the revocation without the new contract15
counting toward the maximum number of contracts that may be issued16
under this part.17
(10) (11) Not more than 10 days after an urban high school18
academy's contract terminates or is revoked, the authorizing body19
shall notify the superintendent of public instruction in writing of20
the name of the urban high school academy whose contract has21
terminated or been revoked and the date of contract termination or22
revocation.23
(11) (12) If an urban high school academy's contract24
terminates or is revoked, title to all real and personal property,25
interest in real or personal property, and other assets owned by26
the urban high school academy shall revert to the state. This27
property shall be distributed in accordance with the following:28
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(a) Within 30 days following the termination or revocation,1
the board of directors of an urban high school academy shall hold a2
public meeting to adopt a plan of distribution of assets and to3
approve the dissolution of the urban high school academy4
corporation, all in accordance with chapter 8 of the nonprofit5
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.6
(b) The urban high school academy shall file a certificate of7
dissolution with the bureau of commercial services within 108
business days following board approval.9
(c) Simultaneously with the filing of the certificate of10
dissolution under subdivision (b), the urban high school academy11
board of directors shall provide a copy of the board of directors'12
plan of distribution of assets to the state treasurer for approval.13
Within 30 days, the state treasurer, or his or her designee, shall14
review and approve the board of directors' plan of distribution of15
assets. If the proposed plan of distribution of assets is not16
approved within 30 days, the state treasurer, or his or her17
designee, shall provide the board of directors with an acceptable18
plan of distribution of assets.19
(d) The state treasurer, or his or her designee, shall monitor20
the urban high school academy's winding up of the dissolved21
corporation in accordance with the plan of distribution of assets22
approved or provided under subdivision (c).23
(e) As part of the plan of distribution of assets, the urban24
high school academy board of directors shall designate the director25
of the department of technology, management, and budget, or his or26
her designee, to dispose of all real property of the urban high27
school academy corporation in accordance with the directives28
50
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developed for disposition of surplus land and facilities under1
section 251 of the management and budget act, 1984 PA 431, MCL2
18.1251.3
(f) If the board of directors of an urban high school academy4
fails to take any necessary action under this section, the state5
treasurer, or his or her designee, may suspend the urban high6
school academy board of directors and appoint a trustee to carry7
out the board's plan of distribution of assets. Upon appointment,8
the trustee shall have all the rights, powers, and privileges under9
law that the urban high school academy board of directors had10
before being suspended.11
(g) Following the sale of the real or personal property or12
interests in the real or personal property, and after payment of13
any urban high school academy debt secured by the property or14
interest in property, whether real or personal, the urban high15
school academy board of directors, or a trustee appointed under16
this section, shall forward any remaining money to the state17
treasurer. Following receipt, the state treasurer, or his or her18
designee, shall deposit this remaining money in the state school19
aid fund.20
Sec. 552. (1) SUBJECT TO SUBSECTION (22), An AN authorizing21
body may issue contracts under this subsection to organize and22
operate a school of excellence. All of the following apply to the23
issuance of a contract by an authorizing body under this24
subsection:25
(a) The issuance of the contract must be approved by the26
superintendent of public instruction. The superintendent of public27
instruction shall approve issuance of a contract if he or she28
51
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determines that the proposed school of excellence is modeled after1
a high-performing school or program.2
(b) The first 5 contracts issued by all authorizing bodies3
under this subsection shall be for schools of excellence that offer4
1 or more of high school grades 9 to 12, or any combination of5
those grades, as specified in the contract.6
(c) A school of excellence authorized under this subsection7
shall not be located in a school district that has a graduation8
rate of over 75%, on average, for the most recent 3 school years9
for which the data are available, as determined by the department.10
(2) Subject to the limitations in this subsection, and11
subsection (14) AND SUBSECTION (22), an authorizing body may issue12
contracts under this subsection for 1 or more schools of excellence13
that are cyber schools. Until December 31, 2013, the combined total14
number of contracts that may be issued by all statewide authorizing15
bodies under this subsection for schools of excellence that are16
cyber schools shall not exceed 5. Until December 31, 2014, the17
combined total number of contracts that may be issued by all18
statewide authorizing bodies under this subsection for schools of19
excellence that are cyber schools shall not exceed 10. After20
December 31, 2014, the combined total number of contracts issued by21
all statewide authorizing bodies under this subsection for schools22
of excellence that are cyber schools shall not exceed 15. The board23
of a school district, an intermediate school board, the board of a24
community college that is not a statewide authorizing body, or 2 or25
more public agencies acting jointly as described in subsection26
(6)(e) may not act as the authorizing body for more than 1 school27
of excellence that is a cyber school. An authorizing body shall not28
52
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issue a contract for a school of excellence that is a cyber school1
unless the school of excellence that is a cyber school meets all of2
the following requirements:3
(a) Is available for enrollment to all pupils in this state.4
(b) Offers some configuration of or all of grades K to 12.5
(c) The entity applying for the school of excellence that is a6
cyber school demonstrates experience in delivering a quality7
education program that improves pupil academic achievement. In8
determining whether this requirement is met, an authorizing body9
shall refer to the standards for quality online learning10
established by the national association of charter school11
authorizers or other similar nationally recognized standards for12
quality online learning.13
(d) The enrollment in the school of excellence that is a cyber14
school is limited to not more than 2,500 pupils in membership for15
the first school year of operation of the school of excellence that16
is a cyber school, not more than 5,000 pupils in membership for the17
second school year of operation of the school of excellence that is18
a cyber school, and not more than 10,000 pupils in membership for19
the third and subsequent school years of operation of the school of20
excellence that is a cyber school. As used in this subdivision,21
"membership" means that term as defined in section 6 of the state22
school aid act of 1979, MCL 388.1606.23
(e) The school of excellence that is a cyber school offers24
each pupil's family a computer and subsidizes the cost of internet25
access.26
(3) For a public school academy operating under part 6a that27
meets the requirements of subsection (4), with the approval of its28
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authorizing body, the board of directors of the public school1
academy may adopt a resolution choosing to convert the public2
school academy to a school of excellence under this part. If the3
board of directors of a public school academy that meets the4
requirements of subsection (4) is issued a contract as a school of5
excellence under this subsection, all the following apply:6
(a) The public school academy shall cease to operate as a7
public school academy under part 6a and shall operate as a school8
of excellence upon the issuance of a contract or at another time as9
determined by the authorizing body.10
(b) The public school academy shall be considered to be a11
school of excellence for all purposes upon the issuance of a12
contract or at another time as determined by the authorizing body,13
but shall retain its corporate identity.14
(c) The conversion of a public school academy under part 6a to15
a school of excellence operating under this part shall not impair16
any agreement, mortgage, loan, bond, note or other instrument of17
indebtedness, or any other agreement entered into by a public18
school academy while it was operating under part 6a.19
(d) The contract issued to the public school academy under20
part 6a shall automatically terminate upon the issuance of a21
contract or at another time as determined by the authorizing body.22
(4) Subsection (3) applies to a public school academy that is23
determined by the department to meet all of the following, as24
applicable:25
(a) If the public school academy operates only some or all of26
grades K to 8, meets at least 1 of the following:27
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(i) On average over a 3-year period, at least 90% of the pupils1
enrolled in the public school academy achieved a score of2
proficient or better on the Michigan education assessment program3
mathematics and reading tests or successor state assessment4
program.5
(ii) On average over a 3-year period, at least 70% of the6
pupils enrolled in the public school academy achieved a score of7
proficient or better on the Michigan education assessment program8
mathematics and reading tests or successor state assessment program9
and at least 50% of the pupils enrolled in the public school10
academy met the income eligibility criteria for the federal free or11
reduced-price lunch program, as determined under the Richard B.12
Russell national school lunch act, 42 USC 1751 to 1769i, and13
reported to the department.14
(b) If the public school academy operates grades 9 to 12, at15
least 80% of the school's pupils graduate from high school or are16
determined by the department to be on track to graduate from high17
school, the school has at least 80% average attendance, and the18
school has at least an 80% postsecondary enrollment rate.19
(5) A school of excellence shall be organized and administered20
under the direction of a board of directors in accordance with this21
part and with bylaws adopted by the board of directors. A school of22
excellence shall be organized under the nonprofit corporation act,23
1982 PA 162, MCL 450.2101 to 450.3192, except that a school of24
excellence is not required to comply with sections 170 to 177 of25
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified26
under the state or federal constitution, a school of excellence27
shall not be organized by a church or other religious organization28
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and shall not have any organizational or contractual affiliation1
with or constitute a church or other religious organization.2
(6) SUBJECT TO SUBSECTION (22), Any ANY of the following may3
act as an authorizing body to issue a contract to organize and4
operate 1 or more schools of excellence under this part:5
(a) The board of a school district that operates grades K to6
12. However, except as otherwise provided in this subdivision, the7
board of a school district shall not issue a contract for a school8
of excellence to operate outside the school district's boundaries,9
and a school of excellence authorized by the board of a school10
district shall not operate outside that school district's11
boundaries. If the board of a school district issues a contract for12
a school of excellence that is a cyber school, the contract may13
authorize the school of excellence that is a cyber school to14
operate outside that school district's boundaries. FOR PURPOSES OF15
THIS PART, THE BOARD OF A SCHOOL DISTRICT DOES NOT INCLUDE A LOCAL16
EDUCATION COMMISSION.17
(b) An intermediate school board. However, except as otherwise18
provided in this subdivision, the board of an intermediate school19
district shall not issue a contract for a school of excellence to20
operate outside the intermediate school district's boundaries, and21
a school of excellence authorized by the board of an intermediate22
school district shall not operate outside that intermediate school23
district's boundaries. If the board of an intermediate school24
district issues a contract for a school of excellence that is a25
cyber school, the contract may authorize the school of excellence26
that is a cyber school to operate outside that intermediate school27
district's boundaries.28
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(c) The board of a community college. Except as otherwise1
provided in this subdivision, the board of a community college2
shall not issue a contract for a school of excellence to operate3
outside the boundaries of the community college district, and a4
school of excellence authorized by the board of a community college5
shall not operate outside the boundaries of the community college6
district. If the board of a community college issues a contract for7
a school of excellence that is a cyber school, the contract may8
authorize the school of excellence that is a cyber school to9
operate outside the boundaries of the community college district.10
The board of a community college also may issue a contract for not11
more than 1 school of excellence to operate on the grounds of an12
active or closed federal military installation located outside the13
boundaries of the community college district, or may operate a14
school of excellence itself on the grounds of such a federal15
military installation, if the federal military installation is not16
located within the boundaries of any community college district and17
the community college has previously offered courses on the grounds18
of the federal military installation for at least 10 years.19
(d) The governing board of a state public university.20
(e) Two or more of the public agencies described in21
subdivisions (a) to (d) exercising power, privilege, or authority22
jointly pursuant to an interlocal agreement under the urban23
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to24
124.512.25
(7) To obtain a contract to organize and operate 1 or more26
schools of excellence, 1 or more persons or an entity may apply to27
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an authorizing body described in this section. The application1
shall include at least all of the following:2
(a) Identification of the applicant for the contract.3
(b) Subject to the resolution adopted by the authorizing body4
under section 553(4), a list of the proposed members of the board5
of directors of the school of excellence and a description of the6
qualifications and method for appointment or election of members of7
the board of directors.8
(c) The proposed articles of incorporation, which shall9
include at least all of the following:10
(i) The name of the proposed school of excellence.11
(ii) The purposes for the school of excellence corporation.12
This language shall provide that the school of excellence is13
incorporated pursuant to this part and that the school of14
excellence is a governmental entity.15
(iii) The name of the authorizing body.16
(iv) The proposed time when the articles of incorporation will17
be effective.18
(v) Other matters considered expedient to be in the articles19
of incorporation.20
(d) A copy of the proposed bylaws of the school of excellence.21
(e) Documentation meeting the application requirements of the22
authorizing body, including at least all of the following:23
(i) The governance structure of the school of excellence.24
(ii) A copy of the educational goals of the school of25
excellence and the curricula to be offered and methods of pupil26
assessment to be used by the school of excellence. The educational27
goals shall include demonstrated improved pupil academic28
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achievement for all groups of pupils. To the extent applicable, the1
progress of the pupils in the school of excellence shall be2
assessed using at least a Michigan education assessment program3
(MEAP) test or the Michigan merit examination under section 1279g,4
as applicable.5
(iii) The admission policy and criteria to be maintained by the6
school of excellence. The admission policy and criteria shall7
comply with section 556. This part of the application also shall8
include a description of how the applicant will provide to the9
general public adequate notice that a school of excellence is being10
created and adequate information on the admission policy, criteria,11
and process.12
(iv) Except for a school of excellence that is a cyber school,13
the school calendar and school day schedule.14
(v) The age or grade range of pupils to be enrolled.15
(f) Descriptions of staff responsibilities and of the school16
of excellence governance structure.17
(g) For an application to the board of a school district, an18
intermediate school board, or board of a community college,19
identification of the school district and intermediate school20
district in which the school of excellence will be located.21
(h) An agreement that the school of excellence will comply22
with the provisions of this part and, subject to the provisions of23
this part, with all other state law applicable to public bodies and24
with federal law applicable to public bodies or school districts.25
(i) A description of and address for the proposed physical26
plant in which the school of excellence will be located. An27
applicant may request the authorizing body to issue a contract28
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allowing the board of directors of the school of excellence to1
operate the same configuration of age or grade levels at more than2
1 site.3
(8) An authorizing body shall oversee, or shall contract with4
an intermediate school district, community college, or state public5
university to oversee, each school of excellence operating under a6
contract issued by the authorizing body. The authorizing body is7
responsible for overseeing compliance by the board of directors8
with the contract and all applicable law. This subsection does not9
relieve any other government entity of its enforcement or10
supervisory responsibility.11
(9) If the superintendent of public instruction finds that an12
authorizing body is not engaging in appropriate continuing13
oversight of 1 or more schools of excellence operating under a14
contract issued by the authorizing body, the superintendent of15
public instruction may suspend the power of the authorizing body to16
issue new contracts to organize and operate schools of excellence.17
A contract issued by the authorizing body during the suspension is18
void. A contract issued by the authorizing body before the19
suspension is not affected by the suspension.20
(10) An authorizing body shall not charge a fee, or require21
reimbursement of expenses, for considering an application for a22
contract, for issuing a contract, or for providing oversight of a23
contract for a school of excellence in an amount that exceeds a24
combined total of 3% of the total state school aid received by the25
school of excellence in the school year in which the fees or26
expenses are charged. The authorizing body may provide other27
services for a school of excellence and charge a fee for those28
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services, but shall not require such an arrangement as a condition1
to issuing the contract authorizing the school of excellence.2
(11) A school of excellence shall be presumed to be legally3
organized if it has exercised the franchises and privileges of a4
public school academy for at least 2 years.5
(12) A member of the board of directors of a school of6
excellence is a public officer and shall, before entering upon the7
duties of the office, take the constitutional oath of office for8
public officers under section 1 of article XI of the state9
constitution of 1963.10
(13) A school of excellence that is a cyber school may make11
available to other public schools for purchase any of the course12
offerings that the cyber school offers to its own pupils.13
(14) If the department determines that the combined total14
statewide final audited membership for all pupils in membership in15
schools of excellence that are cyber schools for the 2012-201316
state fiscal year exceeds a number equal to 1% of the combined17
total statewide final audited membership for all pupils in18
membership in public schools for the 2011-2012 state fiscal year,19
then all of the following apply:20
(a) An authorizing body may not issue a new contract for a new21
school of excellence that is a cyber school to begin operations in22
the 2013-2014 school year.23
(b) A school of excellence that is a cyber school may not24
enroll any new pupils in the school of excellence that is a cyber25
school in the 2013-2014 school year.26
(15) Beginning July 1, 2013, if the department determines that27
the combined total statewide final audited membership for all28
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pupils in membership in schools of excellence that are cyber1
schools for a state fiscal year exceeds a number equal to 2% of the2
combined total statewide final audited membership for all pupils in3
membership in public schools for the 2011-2012 state fiscal year,4
then all of the following apply:5
(a) Subject to subdivision (c), an authorizing body may not6
issue a new contract for a new school of excellence that is a cyber7
school to begin operations in a school year that begins after that8
determination is made.9
(b) Subject to subdivision (c), a school of excellence that is10
a cyber school may not enroll any new pupils in the school of11
excellence that is a cyber school in a school year that begins12
after that determination is made.13
(c) If the department determines that the combined total14
statewide final audited membership for all pupils in membership in15
schools of excellence that are cyber schools for a state fiscal16
year does not exceed a number equal to 2% of the combined total17
statewide final audited membership for all pupils in membership in18
public schools for the 2011-2012 state fiscal year, then19
subdivisions (a) and (b) do not apply for a school year that begins20
after that determination is made unless the department makes a new21
determination that the membership limits under this subsection have22
been exceeded.23
(16) For the purposes of subsections (14) and (15), not later24
than July 1, 2012, and by not later than July 1 of each year25
thereafter, the department shall determine the percentage of the26
combined total statewide final audited membership for all pupils in27
membership in public schools that are pupils in membership in28
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schools of excellence that are cyber schools for the state fiscal1
year that includes that July 1.2
(17) As used in this section:3
(a) "Membership" means that term as defined in section 6 of4
the state school aid act of 1979, MCL 388.1606.5
(b) "Statewide authorizing body" means the governing board of6
a state public university or the board of a federal tribally7
controlled community college that is recognized under the tribally8
controlled colleges and universities assistance act of 1978, 25 USC9
1801 to 1852, and is determined by the department to meet the10
requirements for accreditation by a recognized regional accrediting11
body.12
(18) Not later than October 1, 2012, If a district, an13
intermediate school district, a public school academy, or the14
education achievement system offers online learning, the board or15
board of directors of the district, intermediate school district,16
or public school academy, or the education achievement system,17
shall submit to the department a report that details the per-pupil18
costs of operating the online learning. The report shall include,19
on a per-pupil basis, at least all of the following costs:20
(a) Textbooks, instructional materials, and supplies,21
including electronic instructional material.22
(b) Computer and other electronic equipment, including23
internet and telephone access.24
(c) Salaries and benefits for the online learning employees.25
(d) Purchased courses and curricula.26
(e) Fees associated with oversight and regulation.27
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(f) Travel costs associated with school activities and1
testing.2
(g) Facilities costs.3
(h) Costs associated with special education.4
(19) Not later than December 31, 2012, the department shall5
issue a report to the legislature including the following:6
(a) A review of the data submitted under subsection (14).7
(b) A comparison with costs of substantially similar programs8
in other states and relevant national research on the costs of9
online learning.10
(c) Any conclusions concerning factors or characteristics of11
online learning programs that make a difference in the costs of12
operating the programs.13
(20) The board of directors of a school of excellence that is14
a cyber school, or the board of a school district, intermediate15
school district, or public school academy that operates an online16
or other distance learning program, shall submit a monthly report17
to the department, in the form and manner prescribed by the18
department, that reports the number of pupils enrolled in the19
school of excellence that is a cyber school, or in the online or20
other distance learning program, during the immediately preceding21
month.22
(21) The board of directors of a school of excellence that is23
a cyber school shall ensure that, when a pupil enrolls in the24
school of excellence that is a cyber school, the pupil and his or25
her parent or legal guardian are provided with a parent-student26
orientation. If the pupil is at least age 18 or is an emancipated27
minor, the orientation may be provided to just the pupil.28
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(22) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW SCHOOL1
OF EXCELLENCE TO OPERATE WITHIN A EMPOWERMENT ZONE, THE AUTHORIZING2
BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION MANAGER FOR3
THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 10 BUSINESS DAYS4
OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY SHALL SUBMIT ITS5
REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE6
EDUCATION MANAGER SHALL APPROVE OR DENY THE REQUEST. THE DECISION7
OF THE EDUCATION MANAGER TO DENY AN AUTHORIZING BODY'S REQUEST TO8
ISSUE A CONTRACT FOR A NEW SCHOOL OF EXCELLENCE WITHIN THE9
EMPOWERMENT ZONE UNDER THIS SUBSECTION IS FINAL AND NOT SUBJECT TO10
APPEAL.11
(23) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE12
APPROVAL OF AN EDUCATION MANAGER TO REVOKE OR TERMINATE AN EXISTING13
SCHOOL OF EXCELLENCE CONTRACT.14
(24) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE15
APPROVAL OF AN EDUCATION MANAGER TO REAUTHORIZE OR NOT REAUTHORIZE16
AN EXISTING SCHOOL OF EXCELLENCE CONTRACT.17
(25) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE18
APPROVAL OF AN EDUCATION MANAGER FOR THE MERGER OR CONSOLIDATION OF19
2 OR MORE PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE EMPOWERMENT20
ZONE.21
(26) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A SCHOOL OF22
EXCELLENCE THAT IS A HIGH-PERFORMING SCHOOL OPERATING WITHIN A23
EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF THE24
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW CONTRACT25
FOR A SCHOOL OF EXCELLENCE IF THE EDUCATION MANAGER DETERMINES THAT26
THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO REPLICATE THE27
HIGH-PERFORMING SCHOOL.28
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(27) A SCHOOL OF EXCELLENCE SCHOOL BUILDING THAT IS CLOSED BY1
AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION, TERMINATION,2
OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A SCHOOL OF3
EXCELLENCE; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C;4
OR CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY5
PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE AVAILABLE FOR USE6
BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE7
BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT SCHOOL FISCAL8
YEAR.9
Sec. 556. (1) A school of excellence may be located in all or10
part of an existing public school building. EXCEPT AS OTHERWISE11
PROVIDED IN THIS SECTION, A A school of excellence, other than a12
cyber school operated under section 553a, shall not operate at a13
site other than the site or sites requested for the configuration14
of age or grade levels that will use the site or sites, as15
specified in the contract. Under a contract AND EXCEPT AS OTHERWISE16
PROVIDED IN THIS SECTION, an authorizing body may permit a school17
of excellence to operate the same configuration of age or grade18
levels at more than 1 site, and a school of excellence may operate19
the same configuration of age or grade levels at more than 1 site,20
as long as the school of excellence is operating in compliance with21
its contract and is making measurable progress toward meeting its22
educational goals. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,23
For FOR a contract for a new school of excellence, an authorizing24
body may permit a school of excellence to operate the same25
configuration of age or grade levels at more than 1 site, and a26
school of excellence may operate the same configuration of age or27
grade levels at more than 1 site, if the applicant for the proposed28
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school of excellence presents documentation to the authorizing body1
demonstrating that the applicant's proposed educational model has2
resulted in schools making measurable progress toward meeting their3
educational goals.4
(2) A school of excellence shall not charge tuition and shall5
not discriminate in its pupil admissions policies or practices on6
the basis of intellectual or athletic ability, measures of7
achievement or aptitude, status as a student with a disability, or8
any other basis that would be illegal if used by a school district.9
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, However, a school of10
excellence may limit admission to pupils who are within a11
particular range of age or grade level or on any other basis that12
would be legal if used by a school district and may give enrollment13
priority as provided in subsection (4).14
(3) Except for a foreign exchange student who is not a United15
States citizen, a school of excellence shall not enroll a pupil who16
is not a resident of this state. EXCEPT AS OTHERWISE PROVIDED IN17
THIS SECTION, For FOR a school of excellence authorized by a school18
district, intermediate school district, or community college,19
enrollment in the school of excellence may be open to all20
individuals who reside in this state who meet the admission policy21
and shall be open to all pupils who reside within the geographic22
boundaries of that authorizing body who meet the admission policy,23
except that admission to a school of excellence authorized by the24
board of a community college to operate, or operated by the board25
of a community college, on the grounds of a federal military26
installation, as described in section 552(6)(c), shall be open to27
all pupils who reside in the county in which the federal military28
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installation is located. EXCEPT AS OTHERWISE PROVIDED IN THIS1
SECTION, For FOR a school of excellence authorized by a state2
public university, enrollment shall be open to all pupils who3
reside in this state who meet the admission policy. EXCEPT AS4
OTHERWISE PROVIDED IN THIS SECTION, If IF there are more5
applications to enroll in the school of excellence than there are6
spaces available, pupils shall be selected to attend using a random7
selection process. A school of excellence shall allow any pupil who8
was enrolled in the school of excellence in the immediately9
preceding school year to enroll in the school of excellence in the10
appropriate grade unless the appropriate grade is not offered at11
that school of excellence.12
(4) A school of excellence may give enrollment priority to 113
or more of the following:14
(a) A sibling of a pupil enrolled in the school of excellence.15
(b) A pupil who transfers to the school of excellence from16
another public school pursuant to a matriculation agreement between17
the school of excellence and another public school that provides18
for this enrollment priority, if all of the following requirements19
are met:20
(i) Each school of excellence or other public school that21
enters into the matriculation agreement remains a separate and22
independent public school.23
(ii) The school of excellence that gives the enrollment24
priority selects at least 5% of its pupils for enrollment using a25
random selection process.26
(iii) The matriculation agreement allows any pupil who was27
enrolled at any time during elementary school in a public school28
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that is party to the matriculation agreement and who was not1
expelled from the public school to enroll in the school of2
excellence giving enrollment priority under the matriculation3
agreement.4
(c) A child of a person who is employed by or at the school of5
excellence or who is on the board of directors of the school of6
excellence. As used in this subdivision, "child" includes an7
adopted child or a legal ward.8
(5) Subject to subsection (6), a school of excellence may9
include any grade up to grade 12 or any configuration of those10
grades, including kindergarten and early childhood education, as11
specified in its contract. If specified in its contract, a school12
of excellence may also operate an adult basic education program,13
adult high school completion program, or general education14
development testing preparation program. SUBJECT TO PART 7C, The15
THE authorizing body may approve amendment of a contract with16
respect to ages of pupils or grades offered.17
(6) In addition to any other grade levels it operates, a18
school of excellence shall work toward operating all of grades 9 to19
12 within 6 years after it begins operations, unless a20
matriculation agreement has been reached with another public school21
that provides grades 9 to 12.22
(7) If a school of excellence is a cyber school and its23
authorizing body is a school district or intermediate school24
district, the school of excellence shall give enrollment priority25
to pupils who reside in the school district or intermediate school26
district that is the authorizing body.27
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(8) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A1
SCHOOL OF EXCELLENCE THAT IS AN EMPOWERMENT ZONE SCHOOL, AN2
AUTHORIZING BODY SHALL NOT APPROVE A SCHOOL OF EXCELLENCE TO ADD3
ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE OR4
GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE5
EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A SCHOOL OF6
EXCELLENCE'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE SCHOOL OF7
EXCELLENCE’S AUTHORIZING BODY SHALL SUBMIT THE ADDITIONAL SITE8
REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE9
EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE REQUEST AS10
CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES11
PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL SITE REQUEST12
AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE13
FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER THIS14
SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.15
(9) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, AN16
AUTHORIZING BODY THAT ISSUES A CONTRACT TO A SCHOOL OF EXCELLENCE17
OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO OBTAIN THE18
APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL SITE IF THE19
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE ADDITION20
SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE IS FOR21
THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS22
SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE AN ADDITIONAL23
SITE REQUEST FOR A SCHOOL OF EXCELLENCE.24
(10) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A25
SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE SCHOOL, AN26
AUTHORIZING BODY SHALL NOT PERMIT A SCHOOL OF EXCELLENCE TO CHANGE27
THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE SCHOOL OF28
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EXCELLENCE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE1
EMPOWERMENT ZONE IN WHICH THE SCHOOL OF EXCELLENCE IS LOCATED.2
WITHIN 10 BUSINESS DAYS AFTER A SCHOOL OF EXCELLENCE'S APPROVAL OF3
AN AGE OR GRADE RANGE CHANGE REQUEST, THE AUTHORIZING BODY FOR THE4
SCHOOL OF EXCELLENCE SHALL SUBMIT THE SCHOOL OF EXCELLENCE'S AGE OR5
GRADE RANGE CHANGE REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS6
OF RECEIPT, THE EDUCATION MANAGER SHALL, APPROVE THE REQUEST AS7
CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES8
PLAN FOR THE EMPOWERMENT ZONE OR DENY THE REQUEST AS INCONSISTENT9
WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE10
DECISION OF AN EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND11
NOT SUBJECT TO APPEAL.12
(11) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A SCHOOL13
OF EXCELLENCE OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO14
OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE THE15
CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING SCHOOL.16
NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE17
AN AGE OR GRADE RANGE REQUEST FOR A SCHOOL OF EXCELLENCE.18
(12) FOR A SCHOOL OF EXCELLENCE THAT IS AN EMPOWERMENT ZONE19
SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT AND20
ADMISSIONS PROCESS OF THE SCHOOL OF EXCELLENCE INCORPORATED INTO21
THE CONTRACT FOR THE SCHOOL OF EXCELLENCE IS CONSISTENT WITH ZONE22
ENROLLMENT PLAN UNDER PART 7C.23
Sec. 561. (1) If an authorizing body issues a contract for a24
school of excellence under this part, the authorizing body shall do25
all of the following:26
(a) Ensure that the contract and the application for the27
contract comply with the requirements of this part AND PART 7C.28
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(b) Within 10 days after issuing the contract, submit to the1
department a copy of the contract.2
(c) Establish the method of selection, length of term, and3
number of members of the board of directors of each school of4
excellence that it authorizes. The authorizing body shall ensure5
that the board of directors includes representation from the local6
community.7
(d) Oversee the operations of each school of excellence8
operating under a contract issued by the authorizing body. The9
oversight shall be sufficient to ensure that the school of10
excellence is in compliance with the terms of the contract and with11
applicable law. This subdivision does not relieve any other12
governmental entity of its enforcement or supervisory13
responsibility.14
(e) Develop and implement a process for holding a school of15
excellence board of directors accountable for meeting applicable16
academic performance standards set forth in the contract and for17
implementing corrective action for a school of excellence that does18
not meet those standards.19
(f) Take necessary measures to ensure that a school of20
excellence board of directors operates independently of any21
educational management organization involved in the operations of22
the school of excellence.23
(g) Oversee and ensure that the pupil admission process used24
by the school of excellence is operated in a fair and open manner25
and is in compliance with the contract and , this part AND PART 7C.26
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(h) Ensure that the board of directors of the school of1
excellence maintains and releases information as necessary to2
comply with applicable law.3
(2) The authorizing body may enter into an agreement with 1 or4
more authorizing bodies, as defined under part 6a, to carry out any5
function of the authorizing body under subsection (1)(a) to (h).6
(3) The authorizing body for a school of excellence is the7
fiscal agent for the school of excellence. A state school aid8
payment for a school of excellence shall be paid to the authorizing9
body as the fiscal agent for that school of excellence, and the10
authorizing body shall then forward the payment to the school of11
excellence. Within 30 days after a contract is submitted to the12
department by the authorizing body under subsection (1), the13
department shall issue a district code to the school of excellence14
for which the contract was issued. If the department does not issue15
a district code within 30 days after a contract is filed, the state16
treasurer shall assign a temporary district code in order for the17
school of excellence to receive funding under the state school aid18
act of 1979.19
(4) A contract issued under this part may be revoked by the20
authorizing body if the authorizing body determines that 1 or more21
of the following have occurred:22
(a) Failure of the school of excellence to demonstrate23
improved pupil academic achievement for all groups of pupils or24
meet the educational goals set forth in the contract.25
(b) Failure of the school of excellence to comply with all26
applicable law.27
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(c) Failure of the school of excellence to meet generally1
accepted public sector accounting principles and demonstrate sound2
fiscal stewardship.3
(d) The existence of 1 or more other grounds for revocation as4
specified in the contract.5
(5) Except for a school of excellence that is an alternative6
school serving a special student population, if the superintendent7
of public instruction STATE SCHOOL REFORM/REDESIGN OFFICER8
determines that a school of excellence site that has been operating9
for at least 4 years is among the lowest achieving 5% of all public10
schools in this state FOR 3 CONSECUTIVE YEARS, as defined IN11
SECTION 1280C, for the purposes of the federal incentive grant12
program created under sections 14005 and 14006 of title XIV of the13
American recovery and reinvestment act of 2009, Public Law 111-5,14
is in year 2 of restructuring sanctions under the no child left15
behind act of 2001, Public Law 107-110, not to include the ANY16
individualized education plan subgroup, and is not currently17
undergoing reconstitution under this section, the superintendent of18
public instruction STATE SCHOOL REFORM/REDESIGN OFFICER shall19
notify the school of excellence's authorizing body. If an20
authorizing body receives notice from the superintendent of public21
instruction STATE SCHOOL REFORM/REDESIGN OFFICER under this22
subsection, the authorizing body shall amend the school of23
excellence's contract to eliminate the school of excellence's24
authority to operate the existing age and grade levels at the site25
and the school of excellence shall cease operating the existing age26
and grade levels at the site, effective at the end of the current27
school year. If the school of excellence operates at only 1 site or28
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is a cyber school, and the authorizing body receives notice from1
the superintendent of public instruction STATE SCHOOL2
REFORM/REDESIGN OFFICER under this subsection, the authorizing body3
shall revoke the school of excellence's contract, effective at the4
end of the current school year.5
(6) FOR A SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE6
SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN7
AUTHORIZING BODY SHALL PERMIT AN EDUCATION MANAGER TO RECONSTITUTE8
THE SCHOOL OF EXCELLENCE IF THE SCHOOL OF EXCELLENCE IS LISTED ON9
THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR THREE10
CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A11
RECONSTITUTION PROVISION IN THE CONTRACT FOR THE SCHOOL OF12
EXCELLENCE THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT13
LIMITED TO, 1 OR MORE OF THE FOLLOWING:14
(A) AUTOMATIC CANCELLATION OF A CONTRACT WITH AN EDUCATIONAL15
MANAGEMENT ORGANIZATION.16
(B) WITHDRAWAL OF APPROVAL OF A CONTRACT UNDER SECTION 506.17
(C) AUTHORIZING AN EDUCATION MANAGER TO CONDUCT ON BEHALF OF18
THE SCHOOL OF EXCELLENCE BOARD OF DIRECTORS A REQUEST FOR PROPOSAL19
PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES FOR THE20
SCHOOL OF EXCELLENCE.21
(D) IF THE BUILDING IS SUBJECT TO A SUPERINTENDENT'S CLOSURE22
ORDER UNDER PART 7C, A REQUEST FOR PROPOSAL PROCESS TO REMOVE AND23
REPLACE, OR APPOINTING A NEW BOARD OF DIRECTORS OR A TRUSTEE TO24
TAKE OVER OPERATION OF THE SCHOOL OF EXCELLENCE.25
(7) NOTHING IN THIS SECTION PROHIBITS AN AUTHORIZING BODY FROM26
RECONSTITUTING A SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE27
SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS THAT28
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A SCHOOL OF EXCELLENCE IS LISTED ON THE LOWEST ACHIEVING SCHOOLS1
LIST UNDER SECTION 1280C.2
(6) (8) Except AS PROVIDED IN SECTION 552 AND EXCEPT for a3
contract issued by a school district pursuant to a vote by the4
school electors on a ballot question under section 553(2), the5
decision of the authorizing body to issue, not issue, or6
reconstitute a contract under this part, or to terminate or revoke7
a contract under this section, is solely within the discretion of8
the authorizing body, is final, and is not subject to review by a9
court or any other state agency. If the authorizing body issues,10
does not issue, or reconstitutes a contract under this part, or11
terminates or revokes a contract under this section, the12
authorizing body is not liable for that action to the school of13
excellence, the school of excellence corporation, a pupil of the14
school of excellence, the parent or guardian of a pupil of the15
school of excellence, or any other person.16
(7) (9) Except as otherwise provided in subsection (5), before17
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE the18
authorizing body revokes OR ELECTS NOT TO REISSUE a contract, the19
authorizing body may consider and take corrective measures to avoid20
revocation. The authorizing body may reconstitute the school of21
excellence in a final attempt to improve student educational22
performance or to avoid interruption of the educational process.23
The authorizing body shall include a reconstituting provision in24
the contract that identifies these corrective measures, including,25
but not limited to, canceling a contract with an educational26
management organization, if any, withdrawing approval to contract27
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under section 560, or appointing a new board of directors or a1
trustee to take over operation of the school of excellence.2
(8) (10) If the authorizing body revokes a contract, the3
authorizing body shall work with a school district or another4
public school, or with a combination of these entities, to ensure a5
smooth transition for the affected pupils. If the revocation occurs6
during the school year, the authorizing body, as the fiscal agent7
for the school of excellence under this part, shall return any8
school aid funds held by the authorizing body that are attributable9
to the affected pupils to the state treasurer for deposit into the10
state school aid fund. The state treasurer shall distribute funds11
to the public school in which the pupils enroll after the12
revocation pursuant to a methodology established by the department13
and the center for educational performance and information.14
(9) (11) Not more than 10 days after a school of excellence's15
contract terminates or is revoked, the authorizing body shall16
notify the superintendent of public instruction in writing of the17
name of the school of excellence whose contract has terminated or18
been revoked and the date of contract termination or revocation.19
(10) (12) If a school of excellence's contract terminates or20
is revoked, title to all real and personal property, interest in21
real or personal property, and other assets owned by the school of22
excellence shall revert to the state. This property shall be23
distributed in accordance with the following:24
(a) Within 30 days following the termination or revocation,25
the board of directors of a school of excellence shall hold a26
public meeting to adopt a plan of distribution of assets and to27
approve the dissolution of the school of excellence corporation,28
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all in accordance with chapter 8 of the nonprofit corporation act,1
1982 PA 162, MCL 450.2801 to 450.2864.2
(b) The school of excellence shall file a certificate of3
dissolution with the bureau of commercial services within 104
business days following board approval.5
(c) Simultaneously with the filing of the certificate of6
dissolution under subdivision (b), the school of excellence board7
of directors shall provide a copy of the board of directors' plan8
of distribution of assets to the state treasurer for approval.9
Within 30 days, the state treasurer, or his or her designee, shall10
review and approve the board of directors' plan of distribution of11
assets. If the proposed plan of distribution of assets is not12
approved within 30 days, the state treasurer, or his or her13
designee, shall provide the board of directors with an acceptable14
plan of distribution of assets.15
(d) The state treasurer, or his or her designee, shall monitor16
the school of excellence's winding up of the dissolved corporation17
in accordance with the plan of distribution of assets approved or18
provided under subdivision (c).19
(e) As part of the plan of distribution of assets, the school20
of excellence board of directors shall designate the director of21
the department of technology, management, and budget, or his or her22
designee, to dispose of all real property of the school of23
excellence corporation in accordance with the directives developed24
for disposition of surplus land and facilities under section 251 of25
the management and budget act, 1984 PA 431, MCL 18.1251.26
(f) If the board of directors of a school of excellence fails27
to take any necessary action under this section, the state28
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treasurer, or his or her designee, may suspend the school of1
excellence board of directors and appoint a trustee to carry out2
the board's plan of distribution of assets. Upon appointment, the3
trustee shall have all the rights, powers, and privileges under law4
that the school of excellence board of directors had before being5
suspended.6
(g) Following the sale of the real or personal property or7
interests in the real or personal property, and after payment of8
any school of excellence debt secured by the property or interest9
in property, whether real or personal, the school of excellence10
board of directors, or a trustee appointed under this section,11
shall forward any remaining money to the state treasurer. Following12
receipt, the state treasurer, or his or her designee, shall deposit13
this remaining money in the state school aid fund.14
PART 7C15
EMPOWERMENT ZONES16
SEC. 771. (1) A EMPOWERMENT ZONE IS A BODY CORPORATE AND SHALL17
BE GOVERNED BY THIS PART AND BY THOSE PROVISIONS OF ARTICLES 2, 3,18
AND 4 APPLICABLE TO EMPOWERMENT ZONES, LOCAL EDUCATION COMMISSIONS,19
EMPOWERMENT ZONE SCHOOLS, EMPOWERMENT ZONE SCHOOL BOARDS AND20
EDUCATION MANAGERS.21
(2) A EMPOWERMENT ZONE IS A SCHOOL DISTRICT FOR THE PURPOSE OF22
RECEIVING AID FROM THE STATE SCHOOL AID FUND UNDER SECTION 11 OF23
ARTICLE IX OF THE STATE CONSTITUTION OF 1963.24
(3) EACH EMPOWERMENT ZONE SHALL EMPLOY A EMPOWERMENT ZONE25
EDUCATION MANAGER.26
SEC. 772. (1) A EMPOWERMENT ZONE HAS ALL OF THE RIGHTS,27
POWERS, AND DUTIES EXPRESSLY STATED IN THIS ACT; MAY EXERCISE A28
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POWER IMPLIED OR INCIDENT TO ANY POWER EXPRESSLY STATED IN THIS1
ACT; AND, EXCEPT AS PROVIDED BY LAW, MAY EXERCISE A POWER2
INCIDENTAL OR APPROPRIATE TO THE PERFORMANCE OF ANY FUNCTION3
RELATED TO THE OPERATION OF THE EMPOWERMENT ZONE IN THE INTERESTS4
OF PUBLIC ELEMENTARY AND SECONDARY EDUCATION LOCATED WITHIN A5
EMPOWERMENT ZONE CREATED UNDER THIS PART, INCLUDING, IMPLEMENTATION6
OF THE FOLLOWING:7
(A) A ZONE ACCOUNTABILITY PLAN.8
(B) A ZONE FACILITIES PLAN.9
(C) A ZONE ENROLLMENT PLAN.10
(D) HIRING OR CONTRACTING WITH PERSONNEL AS NECESSARY FOR THE11
EDUCATION MANAGER TO CARRY OUT THE ZONE ACCOUNTABILITY PLAN, ZONE12
FACILITIES PLAN, AND ZONE ENROLLMENT PLAN, OR ANY REQUEST FOR13
PROPOSAL PROCESS AUTHORIZED UNDER THIS PART. A EMPOWERMENT ZONE MAY14
INDEMNIFY ITS EMPLOYEES.15
(E) PROCURING APPROPRIATE GOODS AND SERVICES IN KINDS AND16
AMOUNTS NECESSARY TO CARRY OUT THE PURPOSES OF THE EMPOWERMENT17
ZONE.18
(F) PROCURING INSURANCE FOR THE EMPOWERMENT ZONE, LOCAL19
EDUCATION COMMISSION AND ITS EMPLOYEES AND CONTRACTORS IN TYPES AND20
AMOUNTS NECESSARY TO OPERATE THE EMPOWERMENT ZONE.21
(G) RECEIVING, ACCOUNTING FOR, INVESTING, OR EXPENDING22
EMPOWERMENT ZONE MONEY; BORROWING MONEY AND PLEDGING EMPOWERMENT23
ZONE FUNDS FOR REPAYMENT; AND QUALIFYING FOR STATE SCHOOL AID AND24
OTHER PUBLIC OR PRIVATE MONEY FROM LOCAL, REGIONAL, STATE, OR25
FEDERAL SOURCES.26
(H) ADMINISTERING A RECONSTITUTION REQUEST FOR PROPOSAL27
PROCESS.28
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(I) ADMINISTERING A REMOVE AND REPLACE REQUEST FOR PROPOSAL1
PROCESS.2
(2) A EMPOWERMENT ZONE MAY ENTER INTO AGREEMENTS OR3
COOPERATIVE ARRANGEMENTS WITH OTHER PUBLIC SCHOOLS, AUTHORIZING4
BODIES AND OTHER ENTITIES, PUBLIC OR PRIVATE, OR JOIN ORGANIZATIONS5
AS PART OF PERFORMING THE FUNCTIONS OF THE EMPOWERMENT ZONE. AN6
AGREEMENT OR COOPERATIVE ARRANGEMENT THAT IS ENTERED INTO UNDER7
THIS PART IS NOT REQUIRED TO COMPLY WITH THE PROVISIONS OF THE8
URBAN COOPERATION ACT OF 1967, 1967 (EX SESS) PA 7, MCL 124.501 TO9
124.512, AS PROVIDED UNDER SECTION 503 OF THAT ACT, MCL 124.503.10
(3) UNLESS OTHERWISE EXPRESSLY PROVIDED IN THIS ACT, A11
EMPOWERMENT ZONE SHALL NOT DIRECTLY OPERATE A PUBLIC SCHOOL OR12
PROVIDE EDUCATIONAL SERVICES TO ANY PUPIL ATTENDING A EMPOWERMENT13
ZONE SCHOOL.14
(4) A EMPOWERMENT ZONE, LOCAL EDUCATION COMMISSION,15
EMPOWERMENT ZONE SCHOOL BOARD, EDUCATION MANAGER, EMPOWERMENT ZONE16
EMPLOYEES, CONTRACTORS AND AGENTS SHALL TREAT ALL EMPOWERMENT ZONE17
SCHOOLS, AND PUPILS ATTENDING EMPOWERMENT ZONE SCHOOLS, FAIRLY AND18
EQUALLY AND SHALL NOT MAKE DECISIONS THAT FAVOR ONE EMPOWERMENT19
ZONE SCHOOL OR PUPIL OVER ANOTHER EMPOWERMENT ZONE SCHOOL OR PUPIL,20
OR THAT DISADVANTAGE OR DISCRIMINATE AGAINST ONE TYPE OF21
EMPOWERMENT ZONE SCHOOL OR PUPIL.22
SEC. 773. (1) A EMPOWERMENT ZONE SHALL BE ORGANIZED TO OPERATE23
WITHIN THE GEOGRAPHICAL BOUNDARIES OF AN EMPOWERED DISTRICT AND THE24
CONTIGUOUS BOUNDARIES OF THE EMPOWERED DISTRICT INCLUDED WITHIN THE25
EMPOWERMENT ZONE UNDER THIS PART. A EMPOWERMENT ZONE IS26
AUTOMATICALLY FORMED FOR AN EDUCATION DISTRICT AND THE CONTIGUOUS27
BOUNDARIES OF THE EDUCATION DISTRICT INCLUDED WITHIN THE28
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EMPOWERMENT ZONE FOR THE EDUCATION DISTRICT UNDER THIS PART AND FOR1
A SCHOOL DISTRICT AND THE CONTIGUOUS BOUNDARIES OF THE SCHOOL2
DISTRICT INCLUDED WITHIN THE EMPOWERMENT ZONE FOR THE SCHOOL3
DISTRICT UNDER THIS PART UPON THE DESIGNATION OF THE SCHOOL4
DISTRICT AS AN EMPOWERED DISTRICT UNDER THIS SECTION.5
(2) A SCHOOL DISTRICT OTHER THAN AN EDUCATION DISTRICT BECOMES6
AN EMPOWERED DISTRICT IF ANY OF THE FOLLOWING OCCURS:7
(A) THE SUPERINTENDENT OF PUBLIC INSTRUCTION, THE STATE8
TREASURER, OR THE STATE SCHOOL REFORM/REDESIGN OFFICER DETERMINES9
THAT SCHOOL DISTRICT IS NOT FINANCIALLY VIABLE AND IS UNABLE TO10
EDUCATE PUPILS IN GRADES K-12 RESIDING IN THE SCHOOL DISTRICT BY11
OPERATING SCHOOLS FOR A FULL SCHOOL YEAR AND PROVIDING THE REQUIRED12
NUMBER OF INSTRUCTIONAL HOURS UNDER THIS ACT AND THE STATE SCHOOL13
AID ACT OF 1979. AS USED IN THIS SUBDIVISION "FINANCIALLY VIABLE"14
MEANS THAT A SCHOOL DISTRICT HAS THE FINANCIAL RESOURCES TO CARRY15
OUT AT LEAST THE EDUCATIONAL PROGRAM REQUIRED BY LAW AND PAY ITS16
EXISTING DEBTS AS THEY BECOME DUE TAKING INTO CONSIDERATION THE17
PROJECTED ENROLLMENT, CASH FLOW, REVENUES, AND BORROWING CAPABILITY18
OF THE SCHOOL DISTRICT.19
(B) THE SCHOOL BOARD OF A SCHOOL DISTRICT ADOPTS A RESOLUTION20
DESIGNATING THE SCHOOL DISTRICT AS AN EMPOWERED DISTRICT.21
(C) THE SCHOOL DISTRICT IS DESIGNATED AS AN EMPOWERED DISTRICT22
UNDER SUBSECTION (3).23
(3) A SCHOOL DISTRICT RESIDENT MAY FILE A WRITTEN REQUEST WITH24
THE BOARD OF THE SCHOOL DISTRICT TO DESIGNATE THE SCHOOL DISTRICT25
AS AN EMPOWERED DISTRICT. IF THE SCHOOL DISTRICT BOARD DOES NOT26
APPROVE THE REQUEST TO DESIGNATE THE SCHOOL DISTRICT AS AN27
EMPOWERED DISTRICT, SCHOOL DISTRICT ELECTORS MAY PETITION THE BOARD28
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TO SUBMIT THE QUESTION OF DESIGNATING THE SCHOOL DISTRICT AS AN1
EMPOWERED DISTRICT TO THE ELECTORS OF THE SCHOOL DISTRICT. A2
PETITION UNDER THIS SUBSECTION SHALL INCLUDE A WRITTEN REQUEST TO3
DESIGNATE THE SCHOOL DISTRICT AS AN EMPOWERED DISTRICT AND MUST BE4
SIGNED BY A NUMBER OF SCHOOL ELECTORS OF THE SCHOOL DISTRICT EQUAL5
TO AT LEAST 5% OF THE TOTAL NUMBER OF SCHOOL ELECTORS OF THAT6
SCHOOL DISTRICT. THE PETITION SHALL BE FILED WITH THE SCHOOL7
DISTRICT FILING OFFICIAL. IF THE BOARD RECEIVES A PETITION8
SATISFYING THE REQUIREMENTS OF THIS SUBSECTION, THE BOARD SHALL9
HAVE THE QUESTION OF DESIGNATING THE SCHOOL DISTRICT AS AN10
EMPOWERED DISTRICT PLACED ON THE BALLOT AT ITS NEXT REGULAR SCHOOL11
ELECTION HELD AT LEAST 60 DAYS AFTER RECEIVING THE PETITION. IF A12
MAJORITY OF THE SCHOOL ELECTORS OF THE SCHOOL DISTRICT VOTING ON13
THE QUESTION VOTE IF FAVOR OF DESIGNATING THE SCHOOL DISTRICT AS AN14
EDUCATION SCHOOL DISTRICT, THE SUPERINTENDENT OF PUBLIC INSTRUCTION15
SHALL ISSUE AN ORDER ORGANIZING THE EMPOWERMENT ZONE FOR THE16
EMPOWERED DISTRICT AND ITS CONTIGUOUS AREAS UNDER THIS PART WITHIN17
30 DAYS AFTER THE VOTE IS CERTIFIED.18
(4) IF A EMPOWERMENT ZONE IS CREATED UNDER SUBSECTION (2), ALL19
OF THE FOLLOWING SCHOOL BUILDINGS SHALL BE CONSIDERED EMPOWERMENT20
ZONE SCHOOLS SUBJECT TO THE POWERS OF AN EDUCATION MANAGER FOR THE21
EMPOWERMENT ZONE UNDER THIS PART:22
(A) FOR AN EMPOWERED DISTRICT THAT IS AN EDUCATION DISTRICT,23
ALL PUBLIC SCHOOL BUILDINGS OF THE EDUCATION DISTRICT, ALL SCHOOL24
BUILDINGS OF ANY PUBLIC SCHOOL ACADEMY LOCATED WITHIN THE25
GEOGRAPHICAL BOUNDARIES OF THE EDUCATION DISTRICT, AND ALL SCHOOL26
BUILDINGS OF A SCHOOL DISTRICT, OR ANY PUBLIC SCHOOL ACADEMY27
LOCATED IN THAT SCHOOL DISTRICT, WITH A CONTIGUOUS BOUNDARY LINE28
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WITH THE EDUCATION DISTRICT AND WHOSE PUPIL MEMBERSHIP COUNT AFTER1
THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SECTION,2
AS OF THE MOST RECENT PUPIL MEMBERSHIP COUNT, INCLUDES MORE THAN3
FIFTY PERCENT OF ITS PUPILS WHO ARE RESIDENTS OF THE EDUCATION4
SCHOOL DISTRICT. A SCHOOL DISTRICT THAT HAS A CONTIGUOUS BOUNDARY5
LINE WITH THE EDUCATION DISTRICT, AND THAT INCLUDES MORE THAN FIFTY6
PERCENT OF ITS PUPILS RESIDING IN THE EDUCATION DISTRICT, IS7
SUBJECT TO THE EMPOWERMENT ZONE ACCOUNTABILITY PLAN BUT IS NOT8
SUBJECT TO CLOSE AND REPLACE BY THE EDUCATION MANAGER FOR THE9
EMPOWERMENT ZONE.10
(B) FOR AN EMPOWERED DISTRICT THAT IS NOT AN EDUCATION11
DISTRICT, ALL SCHOOL BUILDINGS OF THAT EMPOWERED DISTRICT, ALL12
SCHOOL BUILDINGS OF ANY PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE13
GEOGRAPHICAL BOUNDARIES OF THE EMPOWERED DISTRICT, AND ALL SCHOOL14
BUILDINGS OF ANOTHER SCHOOL DISTRICT, OR ANY PUBLIC SCHOOL ACADEMY15
LOCATED IN THAT OTHER SCHOOL DISTRICT, THAT HAS A CONTIGUOUS16
BOUNDARY LINE WITH THE EMPOWERED DISTRICT AND WHOSE PUPIL17
MEMBERSHIP COUNT AFTER THE EFFECTIVE DATE OF THE AMENDATORY ACT18
THAT ADDED THIS SECTION, AS OF THE MOST RECENT PUPIL MEMBERSHIP19
COUNT, INCLUDES MORE THAN FIFTY PERCENT OF ITS PUPILS WHO ARE20
RESIDENTS OF THE EMPOWERED DISTRICT. A SCHOOL DISTRICT THAT HAS A21
CONTIGUOUS BOUNDARY LINE WITH THE EMPOWERED DISTRICT SHALL, AND22
THAT INCLUDES MORE THAN FIFTY PERCENT OF ITS PUPILS RESIDING IN THE23
EMPOWERED DISTRICT, IS SUBJECT TO THE EMPOWERMENT ZONE24
ACCOUNTABILITY PLAN BUT IS NOT SUBJECT TO CLOSE AND REPLACE BY THE25
EDUCATION MANAGER.26
(C) A SCHOOL BUILDING OCCUPIED BY THE EDUCATION ACHIEVEMENT27
AUTHORITY, AND ANY SCHOOL BUILDING OCCUPIED BY A PUBLIC SCHOOL28
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ACADEMY AUTHORIZED BY THE EDUCATIONAL ACHIEVEMENT AUTHORITY, IS A1
EMPOWERMENT ZONE SCHOOL.2
SEC. 774. A EMPOWERMENT ZONE IS A BODY CORPORATE GOVERNED BY A3
BOARD, TO BE KNOWN AS "THE LOCAL EDUCATION COMMISSION OF THE4
____________ SCHOOL EMPOWERMENT ZONE," AND UNDER THAT NAME MAY SUE5
AND BE SUED.6
SEC. 775. (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A7
EMPOWERMENT ZONE SHALL BE UNDER THE SUPERVISION AND CONTROL OF A8
LOCAL EDUCATION COMMISSION COMPOSED OF 5 MEMBERS APPOINTED UNDER9
THIS PART AND THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE WHO10
SHALL SERVE AS AN EX OFFICIO, NO-VOTING MEMBER OF THE LOCAL11
EDUCATION COMMISSION.12
(2) WITHIN 30 DAYS OF THE ISSUANCE OF THE CREATION OF A13
EMPOWERMENT ZONE, THE MAYOR OF THE LARGEST CITY WITHIN THE14
EMPOWERMENT ZONE SHALL APPOINT 2 MEMBERS OF THE LOCAL EDUCATION15
COMMISSION FOR THE EMPOWERMENT ZONE AND THE GOVERNOR SHALL APPOINT16
3 MEMBERS. OF THE INITIAL APPOINTMENTS, UNDER THIS SUBSECTION, 117
MEMBER APPOINTED BY THE MAYOR SHALL BE APPOINTED FOR A TERM OF 318
YEARS, 1 MEMBER APPOINTED BY THE MAYOR SHALL BE APPOINTED FOR A19
TERM OF 2 YEARS, 1 MEMBER APPOINTED BY THE GOVERNOR SHALL BE20
APPOINTED FOR A TERM OF 2 YEARS, 1 MEMBER APPOINTED BY THE GOVERNOR21
SHALL BE APPOINTED FOR A TERM OF 3 YEARS, AND 1 MEMBER APPOINTED BY22
THE GOVERNOR SHALL BE APPOINTED FOR A TERM OF 4 YEARS. AFTER THE23
EXPIRATION OF THE INITIAL TERMS, MEMBERS SHALL BE APPOINTED FOR A24
TERM OF 4 YEARS. A VACANCY IN THE OFFICE OF A MEMBER OF A LOCAL25
EDUCATION COMMISSION SHALL BE FILLED IN THE SAME MANNER AS THE26
ORIGINAL APPOINTMENT WITHIN 30 DAYS OF THE VACANCY. A VACANCY27
ARISING BEFORE THE END OF A TERM SHALL BE FILLED FOR THE BALANCE OF28
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THE UNEXPIRED TERM. NOTWITHSTANDING ANY CONTRACT, BYLAW, CHARTER OR1
ORDINANCE, AN APPOINTMENT BY A MAYOR UNDER THIS SUBSECTION IS NOT2
SUBJECT TO APPROVAL OR DISAPPROVAL BY ANY OTHER PUBLIC BODY OR3
OFFICER. IF A MAYOR FAILS TO MAKE AN APPOINTMENT WITHIN THE TIME4
REQUIRED UNDER THIS SUBSECTION, THE GOVERNOR SHALL INSTEAD MAKE THE5
APPOINTMENT.6
(4) A LOCAL EDUCATION COMMISSION MEMBER IS A PUBLIC OFFICER7
AND SHALL, BEFORE ENTERING UPON THE DUTIES OF THE OFFICE, TAKE THE8
CONSTITUTIONAL OATH OF OFFICE FOR PUBLIC OFFICERS UNDER SECTION 19
OF ARTICLE XI OF THE STATE CONSTITUTION OF 1963.10
(5) A MEMBER OF A LOCAL EDUCATION COMMISSION MAY ADMINISTER11
OATHS FOR QUALIFYING BOARD MEMBERS.12
SEC. 776. (1) SUBJECT TO SUBSECTIONS (2),(3) AND (4), ANY13
INDIVIDUAL RESIDING IN THE EMPOWERMENT ZONE IS ELIGIBLE FOR14
APPOINTMENT TO MEMBERSHIP ON THE LOCAL EDUCATION COMMISSION.15
(2) A MEMBER OF THE BOARD OF AN SCHOOL DISTRICT, INTERMEDIATE16
SCHOOL DISTRICT, OR PUBLIC SCHOOL ACADEMY IS INELIGIBLE TO SERVE AS17
A MEMBER OF THE LOCAL EDUCATION COMMISSION.18
(3) A MEMBER OF THE GOVERNING BOARD OR ANY OTHER OFFICER OR19
EMPLOYEE OF A COUNTY, CITY, TOWNSHIP, OR VILLAGE LOCATED WITHIN THE20
EMPOWERMENT ZONE IS INELIGIBLE TO SERVE AS A MEMBER OF THE LOCAL21
EDUCATION COMMISSION.22
(4) THE GOVERNOR MAY APPOINT AN INDIVIDUAL AS A MEMBER OF A23
LOCAL EDUCATION COMMISSION WHO DOES NOT RESIDE IN THE EMPOWERMENT24
ZONE IF THAT PERSON IS A RESIDENT OF THIS STATE.25
SEC. 777. (1) A LOCAL EDUCATION COMMISSION SHALL MEET NOT LESS26
THAN ANNUALLY. THE FIRST ORGANIZATIONAL MEETING OF A LOCAL27
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EDUCATION COMMISSION SHALL BE HELD WITHIN 30 DAYS AFTER THE LAST1
APPOINTMENT OF A MEMBER UNDER SECTION 775.2
(2) A NEWLY-FORMED LOCAL EDUCATION COMMISSION SHALL ORGANIZE3
ITSELF BY ELECTING A CHAIRPERSON, A VICE-CHAIRPERSON, A SECRETARY,4
AND A TREASURER. UNTIL JULY 1, 2017, THE CHAIRPERSON AND VICE-5
CHAIRPERSON SHALL BE DESIGNATED BY THE MAYOR OF THE LARGEST CITY6
WITHIN THE EMPOWERMENT ZONE, BUT THE SECRETARY AND TREASURER SHALL7
BE SELECTED BY THE LOCAL EDUCATION COMMISSION. IF THE MAYOR FAILS8
TO DESIGNATE A CHAIRPERSON OR A VICE-CHAIRPERSON, THE CHAIRPERSON9
AND VICE-CHAIRPERSON SHALL BE DESIGNATED BY THE GOVERNOR.10
(3) THE OFFICERS OF A LOCAL EDUCATION COMMISSION SHALL PERFORM11
DUTIES PROVIDED BY LAW AND PRESCRIBED BY THE POLICIES AND12
REGULATIONS OF THE LOCAL EDUCATION COMMISSION NOT INCONSISTENT WITH13
THIS PART OR OTHER LAWS OF THIS STATE.14
SEC. 778. (1) THE GOVERNOR MAY REMOVE ANY MEMBER OF A LOCAL15
EDUCATION COMMISSION FROM OFFICE FOR GROSS NEGLECT OF DUTY, CORRUPT16
CONDUCT IN OFFICE, OR ANY OTHER MISFEASANCE OR MALFEASANCE IN17
OFFICE.18
(2) A PERSON REMOVED FROM OFFICE UNDER THIS SECTION IS NOT19
ELIGIBLE FOR APPOINTMENT TO A PUBLIC SCHOOL BOARD FOR A PERIOD OF 320
YEARS FROM THE DATE OF REMOVAL.21
SEC. 779. (1) A LOCAL EDUCATION COMMISSION MEMBER SHALL SERVE22
ON A VOLUNTARY BASIS AND RECEIVE NO COMPENSATION FOR THEIR SERVICE23
AS A LOCAL EDUCATION COMMISSION MEMBER, BUT MAY BE REIMBURSED FOR24
REASONABLE EXPENSES.25
(2) A EMPOWERMENT ZONE AND ITS BOARD MEMBERS, OFFICERS,26
EMPLOYEES, AND VOLUNTEERS HAVE GOVERNMENTAL IMMUNITY AS PROVIDED IN27
SECTION 7 OF 1964 PA 170, MCL 691.1407. A EMPOWERMENT ZONE AND ITS28
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BOARD MEMBERS, OFFICERS, AND EMPLOYEES ARE IMMUNE FROM CIVIL1
LIABILITY, BOTH PERSONALLY AND PROFESSIONALLY, FOR AN ACT OR2
OMISSION IN CARRYING OUT THE FUNCTIONS OF A EMPOWERMENT ZONE IF THE3
EMPOWERMENT ZONE OR THE PERSON ACTED OR REASONABLY BELIEVED HE OR4
SHE ACTED WITHIN THE EMPOWERMENT ZONE'S OR THE PERSON'S SCOPE OF5
AUTHORITY.6
SEC. 780. A EMPOWERMENT ZONE IS EXEMPT FROM ALL TAXATION ON7
ITS EARNINGS AND PROPERTY. INSTRUMENTS OF CONVEYANCE TO OR FROM A8
EMPOWERMENT ZONE ARE EXEMPT FROM ALL TAXATION INCLUDING TAXES9
IMPOSED BY 1966 PA 134, MCL 207.501 TO 207.513. UNLESS THE PROPERTY10
IS ALREADY FULLY EXEMPT FROM REAL AND PERSONAL PROPERTY TAXES UNDER11
THE GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.1 TO 211.155,12
PROPERTY OCCUPIED BY A EMPOWERMENT ZONE AND USED EXCLUSIVELY FOR13
EDUCATIONAL PURPOSES IS EXEMPT FROM REAL AND PERSONAL PROPERTY14
TAXES LEVIED FOR SCHOOL OPERATING PURPOSES UNDER SECTION 1211, TO15
THE EXTENT EXEMPTED UNDER THAT SECTION, AND FROM REAL AND PERSONAL16
PROPERTY TAXES LEVIED UNDER THE STATE EDUCATION TAX ACT, 1993 PA17
331, MCL 211.901 TO 211.906. A EMPOWERMENT ZONE MAY NOT LEVY AD18
VALOREM PROPERTY TAXES OR ANOTHER TAX FOR ANY PURPOSE. HOWEVER,19
OPERATION OF AN EMPOWERMENT ZONE DOES NOT AFFECT THE ABILITY OF ANY20
SCHOOL DISTRICT OR INTERMEDIATE SCHOOL DISTRICT TO LEVY AD VALOREM21
PROPERTY TAXES OR ANOTHER TAX.22
SEC 781. (1) THE LOCAL EDUCATION COMMISSION SHALL SELECT23
FINANCIAL INSTITUTIONS FOR THE DEPOSIT OF SCHOOL FUNDS. THE LOCAL24
EDUCATION COMMISSION SHALL KEEP A SET OF CODED ACCOUNTS TO BE25
APPROVED BY THE SUPERINTENDENT OF PUBLIC INSTRUCTION AND SHALL HAVE26
ITS BOOKS AUDITED AT LEAST ANNUALLY BY A CERTIFIED PUBLIC27
ACCOUNTANT.28
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(2) THE TREASURER OF A EMPOWERMENT ZONE, IF AUTHORIZED BY1
RESOLUTION OF THE LOCAL EDUCATION COMMISSION, MAY INVEST FUNDS2
THROUGH A FINANCIAL INSTITUTION THAT IS NOT INELIGIBLE TO BE A3
DEPOSITORY OF SURPLUS FUNDS BELONGING TO THIS STATE UNDER SECTION 64
OF 1855 PA 105, MCL 21.146.5
(3) AS USED IN THIS SECTION, "FINANCIAL INSTITUTION" MEANS A6
STATE OR NATIONALLY CHARTERED BANK OR A STATE OR FEDERALLY7
CHARTERED SAVINGS AND LOAN ASSOCIATION, SAVINGS BANK, OR CREDIT8
UNION WHOSE DEPOSITS ARE INSURED BY AN AGENCY OF THE UNITED STATES9
GOVERNMENT AND THAT MAINTAINS A PRINCIPAL OFFICE OR BRANCH OFFICE10
LOCATED IN THIS STATE UNDER THE LAWS OF THIS STATE OR THE UNITED11
STATES.12
SEC. 782. A EMPOWERMENT ZONE AND ITS LOCAL EDUCATION13
COMMISSION SHALL COMPLY WITH ALL OF THE FOLLOWING:14
(A) THE OPEN MEETINGS ACT, 1976 PA 267, MCL 15.261 TO 15.275.15
(B) THE FREEDOM OF INFORMATION ACT, 1976 PA 442, MCL 15.231 TO16
15.246.17
(C) 1947 PA 336, MCL 423.201 TO 423.217.18
(D) 1968 PA 2, MCL 141.421 TO 141.1440A.19
(E) SECTIONS 1263(3), 1267, AND 1274.20
SEC 783. (1) UPON DESIGNATION OF A EMPOWERMENT ZONE, A21
EMPOWERMENT ZONE SCHOOL SHALL AUTOMATICALLY BE SUBJECT TO THE22
FOLLOWING:23
(A) THE ZONE ACCOUNTABILITY PLAN.24
(B) THE ZONE FACILITIES PLAN.25
(C) THE ZONE ENROLLMENT PLAN.26
(2) UPON DESIGNATION OF A EMPOWERMENT ZONE, AND TO FOCUS27
ATTENTION OF A EMPOWERMENT ZONE SCHOOL ON THE CONTINUED IMPROVEMENT28
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OF THE EDUCATIONAL PROGRAM AT THE SCHOOL, THE SUPERINTENDENT OF1
PUBLIC INSTRUCTION SHALL, EXCEPT FOR ANY REQUIREMENT PROVIDED FOR2
IN THIS PART OR SUBSECTION (3), WAIVE ANY OTHERWISE APPLICABLE3
REQUIREMENT PLACED ON A EMPOWERMENT ZONE SCHOOL UNDER THIS ACT OR4
THE STATE SCHOOL AID ACT OF 1979, OR OF A RULE PROMULGATED UNDER5
THIS ACT OR THE STATE SCHOOL AID ACT OF 1979.6
(3) THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL NOT WAIVE7
THE REQUIREMENTS SET FORTH IN SECTIONS 1134, 1135, 1137, 1137A,8
1138, 1139, 1146, 1153, 1230 TO 1230H, 1263(3), 1267, 1274, 1278 TO9
1278B, 1280C, 1285A, 1306, 1309 TO 1311A, 1312, 1317, 1535A, AND10
1539B OF THIS ACT.11
(4) IN EXCHANGE FOR PROVIDING EMPOWERMENT ZONE SCHOOLS WITH12
ADMINISTRATIVE, EVALUATION, AND TECHNICAL ASSISTANCE, A EMPOWERMENT13
ZONE SHALL, TO THE EXTENT PERMITTED UNDER APPLICABLE FEDERAL LAW,14
BE ENTITLED TO RECEIVE 1 PERCENT OF THE TITLE I, PART A FUNDING15
ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS WHICH SHALL BE16
PAID BY THE STATE FROM THE DEPARTMENT'S PORTION OF THE STATE17
EDUCATIONAL AGENCY ADMINISTRATIVE COSTS FOR TITLE I, PART A UP TO18
AN AMOUNT EQUAL TO 1 PERCENT OF THE TOTAL STATE SCHOOL AID RECEIVED19
BY ALL EMPOWERMENT ZONE SCHOOLS LOCATED WITHIN A EMPOWERMENT ZONE.20
(5) IF THE ASSESSMENT OF 1 PERCENT OF THE TITLE I, PART A21
FUNDING ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS IS LESS22
THAN 1 PERCENT OF THE TOTAL STATE SCHOOL AID RECEIVED BY23
EMPOWERMENT ZONE SCHOOLS IN ANY GIVEN YEAR, THEN EACH EMPOWERMENT24
ZONE SCHOOL SHALL PAY THE REMAINING AMOUNT TO THE EMPOWERMENT ZONE25
ON A PRO RATA BASIS BASED ON THE TOTAL NUMBER OF PUPILS ENROLLED AT26
THE EMPOWERMENT ZONE SCHOOL IN THE PRIOR SCHOOL FISCAL YEAR, AS27
DETERMINED BY THE STATE BUDGET DIRECTOR. ON AN ANNUAL BASIS, THE28
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STATE BUDGET DIRECTOR SHALL DETERMINE THE DIFFERENCE BETWEEN TITLE1
I, PART A FUNDING ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS2
AND 1% OF THE TOTAL STATE SCHOOL AID FUNDS RECEIVED BY EMPOWERMENT3
ZONE SCHOOLS AND SHALL REPORT SUCH AMOUNT TO THE STATE TREASURER.4
THE STATE TREASURER IS AUTHORIZED TO DIRECTLY INTERCEPT THE5
DIFFERENCE FROM THE STATE SCHOOL AID FUNDS ATTRIBUTABLE TO EACH6
EMPOWERMENT ZONE SCHOOL, AND SHALL FORWARD SUCH FUNDS TO THE7
EMPOWERMENT ZONE IN ACCORDANCE WITH THE PAYMENT SCHEDULE OF STATE8
SCHOOL AID FUNDS.9
SEC. 784. (1) IF A EMPOWERMENT ZONE SCHOOL HAS OPERATED FOR AT10
LEAST 4 YEARS AND IS LISTED ON THE LOWEST ACHIEVING SCHOOLS LIST11
ISSUED UNDER SECTION 1280C FOR 3 CONSECUTIVE YEARS, AND THE12
EMPOWERMENT ZONE SCHOOL HAS NOT BEEN RECONSTITUTED BY ITS13
AUTHORIZING BODY, IF APPLICABLE, THEN THE EMPOWERMENT ZONE SCHOOL14
SHALL, SUBJECT TO SUBSECTION (3), BE CLOSED AT THE END OF THE15
CURRENT SCHOOL FISCAL YEAR.16
(2) BY SEPTEMBER 1 OF EACH YEAR, THE EDUCATION MANAGER SHALL17
PROVIDE THE STATE SCHOOL REFORM/REDESIGN OFFICE WITH A LIST OF18
EMPOWERMENT ZONE SCHOOLS THAT HAVE RECEIVED A LETTER GRADE OF "D"19
FOR 3 CONSECUTIVE YEARS, AS DEFINED IN THE EMPOWERMENT ZONE'S20
ACCOUNTABILITY PLAN. UPON RECEIPT, THE STATE SCHOOL REFORM/21
REDESIGN OFFICE SHALL INCLUDE THESE EMPOWERMENT ZONE SCHOOLS ON THE22
LIST OF SCHOOLS SUBJECT TO CLOSURE UNDER SUBSECTION (3).23
(3) BY OCTOBER 1 OF EACH YEAR, THE STATE SCHOOL24
REFORM/REDESIGN OFFICE SHALL PREPARE AND PUBLISH A LIST OF25
EMPOWERMENT ZONE SCHOOLS SUBJECT TO CLOSURE UNDER THIS SECTION. THE26
LIST SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE27
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AND SHALL BE PROVIDED TO EACH EDUCATION MANAGER WHERE A EMPOWERMENT1
ZONE SCHOOL IS SUBJECT TO CLOSURE.2
(4) WITHIN 30 DAYS OF THE PUBLICATION OF THE STATE SCHOOL3
REFORM/REDESIGN OFFICE'S LIST OF EMPOWERMENT ZONE SCHOOL CLOSURES,4
THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL ISSUE AN ORDER5
SUBJECTING EACH EMPOWERMENT ZONE SCHOOL ON THE LIST TO CLOSURE AT6
THE END OF THE CURRENT SCHOOL FISCAL YEAR.7
(5) UPON ISSUANCE OF THE SUPERINTENDENT'S CLOSURE ORDER, THE8
EDUCATION MANAGER SHALL INITIATE A PROCESS TO EVALUATE WHETHER THE9
EMPOWERMENT ZONE SCHOOL THAT IS SUBJECT TO CLOSURE SHOULD BE10
RECONSTITUTED. ALL OF THE FOLLOWING APPLY TO THE RECONSTITUTE11
REQUEST FOR PROPOSAL PROCESS:12
(A) THE EDUCATION MANAGER MAY ISSUE A REQUEST FOR PROPOSAL TO13
RECONSTITUTE THE EMPOWERMENT ZONE SCHOOL.14
(B) IF THE EDUCATION MANAGER IDENTIFIES AN OPERATOR FOR THE15
EMPOWERMENT ZONE SCHOOL, THE EDUCATION MANAGER MAY SELECT THE16
OPERATOR FOR THE EMPOWERMENT ZONE SCHOOL COMMENCING AT THE17
BEGINNING OF THE NEXT SCHOOL FISCAL YEAR.18
(C) THE EDUCATION MANAGER SHALL NEGOTIATE A CONTRACT WITH AN19
OPERATOR FOR THE EMPOWERMENT ZONE SCHOOL. THE CONTRACT SHALL20
INCLUDE AGREEMENT BY THE OPERATOR TO COMPLY WITH THE ZONE21
ACCOUNTABILITY PLAN AND OTHER PLANS ADOPTED BY THE EDUCATION22
MANAGER.23
(D) IF AN EDUCATION MANAGER ELECTS NOT TO RECONSTITUTE THE24
EMPOWERMENT ZONE SCHOOL, THEN THE SUPERINTENDENT'S CLOSURE ORDER25
SHALL TAKE EFFECT.26
(E) THE EDUCATION MANAGER SHALL ACT IN PLACE AND STEAD OF THE27
EMPOWERMENT ZONE SCHOOL BOARD FOR THE PURPOSE OF RECONSTITUTING THE28
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SCHOOL. THE EMPOWERMENT ZONE SCHOOL BOARD SHALL CONTINUE TO OPERATE1
THE SCHOOL FOR THE REMAINDER OF THE SCHOOL YEAR FOLLOWING ISSUANCE2
OF THE SUPERINTENDENT'S CLOSURE ORDER.3
(6) FOR A EMPOWERMENT ZONE SCHOOL LISTED ON THE4
SUPERINTENDENT'S CLOSURE ORDER, THE EMPOWERMENT ZONE SCHOOL BOARD5
SHALL DO ALL OF THE FOLLOWING:6
(A) CONTINUE DELIVERY OF EDUCATIONAL SERVICES TO THE7
EMPOWERMENT ZONE SCHOOL FOR THE REMAINDER OF THE SCHOOL FISCAL8
YEAR.9
(B) COOPERATE WITH THE EDUCATION MANAGER IN THE RECONSTITUTION10
OF THE EMPOWERMENT ZONE SCHOOL.11
(C) CONSIDER SUBMITTING A PROPOSAL IN RESPONSE TO ANY12
EDUCATION MANAGER'S REQUEST FOR PROPOSALS OFFERING TO PROVIDE A13
DIFFERENT EDUCATIONAL, ADMINISTRATIVE AND INSTRUCTIONAL STAFFING14
MODELS AT THE SCHOOL BUILDING. THE EDUCATION MANAGER SHALL CONSIDER15
THE EMPOWERMENT ZONE SCHOOL BOARD'S PROPOSAL ALONG WITH OTHER16
SUBMITTED PROPOSALS.17
(D) TAKE THE NECESSARY STEPS TO FACILITATE THE RECONSTITUTION18
PROCESS INCLUDING, BUT NOT LIMITED TO, THE ORDERLY TRANSFER OF19
FINANCIAL, PUPIL AND EDUCATIONAL RECORDS TO A NEW OPERATOR, IF20
APPLICABLE.21
(7) SUBJECT TO SUBSECTION (8), THE EDUCATION MANAGER MAY22
CONTRACT WITH AN AUTHORIZING BODY TO ASSIST THE EDUCATION MANAGER23
IN ADMINISTERING A RECONSTITUTE REQUEST FOR PROPOSAL. SELECTION OF24
ANY PROPOSAL SHALL BE MADE BY THE EDUCATION MANAGER.25
(8) IF AN ACCREDITATION SYSTEM IS IMPLEMENTED FOR AUTHORIZING26
BODIES UNDER THIS ACT, THEN AN EDUCATION MANAGER MAY ONLY CONTRACT27
WITH AUTHORIZING BODIES THAT ARE ACCREDITED.28
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SEC. 785. (1) IF AN EDUCATION MANAGER DOES NOT RECONSTITUTE A1
EMPOWERMENT ZONE SCHOOL AND A SUPERINTENDENT CLOSURE ORDER ISSUED2
UNDER SECTION 784 TAKES EFFECT, THEN ALL OF THE FOLLOWING SHALL3
OCCUR:4
(A) THE SCHOOL BUILDING THAT WAS SUBJECT TO THE5
SUPERINTENDENT'S CLOSURE ORDER SHALL AUTOMATICALLY BE CLOSED AND6
MADE AVAILABLE FOR USE BY ANOTHER PUBLIC SCHOOL, AS DETERMINED BY7
THE EDUCATION MANAGER.8
(B) IN ACCORDANCE WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE9
FACILITIES PLAN, THE EDUCATION MANAGER SHALL ISSUE REQUEST FOR10
PROPOSALS TO REMOVE AND REPLACE.11
(C) UPON CLOSURE, ALL POSITIONS AT THE SCHOOL BUILDING SHALL12
IMMEDIATELY BE ABOLISHED WITH NOTICES ISSUED AS REQUIRED BY THE13
APPLICABLE COLLECTIVE BARGAINING AGREEMENTS. THE INDIVIDUALS14
SUBJECT TO THE POSITION ABOLISHMENT SHALL BE ENTITLED TO EXERCISE15
SUCH BUMPING AND SENIORITY RIGHTS AS PERMITTED BY THE APPLICABLE16
COLLECTIVE BARGAINING AGREEMENTS.17
(D) A PERSON WHOSE POSITION HAS BEEN ABOLISHED BY THE BUILDING18
CLOSURE MAY APPLY FOR A NEWLY CREATED POSITION WITH THE NEW PUBLIC19
SCHOOL SELECTED AS PART OF THE REMOVE AND REPLACE PROCESS.20
(E) A PUBLIC SCHOOL SELECTED BY THE EDUCATION MANAGER AS PART21
OF A REMOVE AND REPLACE PROCESS IS NOT CONSIDERED TO BE THE22
SUCCESSOR EMPLOYER TO ANY EXISTING COLLECTIVE BARGAINING AGREEMENT23
AND IS NOT SUBJECT TO ANY COLLECTIVE BARGAINING AGREEMENT THAT24
APPLIED TO THE EMPOWERMENT ZONE SCHOOL BUILDING THAT WAS CLOSED.25
ANY NEW PUBLIC SCHOOL SELECTED BY THE EMPOWERMENT ZONE EDUCATIONAL26
MANAGER SHALL NOT BE DEEMED A SUCCESSOR EMPLOYER FOR ANY PURPOSE27
FOR ANY EMPLOYEES WHO WORKED AT THE EMPOWERMENT ZONE SCHOOL28
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BUILDING THAT WAS CLOSED. ANY RIGHTS AND OBLIGATIONS UNDER EXISTING1
COLLECTIVE BARGAINING AGREEMENTS ENTERED INTO BY A EMPOWERMENT ZONE2
SCHOOL THAT INCLUDED THE SCHOOL BUILDING THAT WAS CLOSED SHALL3
REMAIN THE SOLE RESPONSIBILITY OF THAT EMPOWERMENT ZONE SCHOOL.4
(F) ANY CONTRACT OR PORTION OF A CONTRACT ENTERED INTO BY A5
EMPOWERMENT ZONE SCHOOL THAT APPLIED TO A CLOSED SCHOOL BUILDING,6
INCLUDING, BUT NOT LIMITED TO COLLECTIVE BARGAINING AGREEMENTS,7
SHALL NO LONGER APPLY TO THAT BUILDING BUT SHALL REMAIN AN8
OBLIGATION OF THE EMPOWERMENT ZONE SCHOOL SUBJECT TO THE9
SUPERINTENDENT'S CLOSURE ORDER. HOWEVER, THIS SUBSECTION DOES NOT10
ALLOW ANY TERMINATION OR DIMINISHMENT OF A VALID LEASE AGREEMENT,11
OR OBLIGATIONS TO PAY DEBT SERVICE ON LEGALLY AUTHORIZED CONTRACTS12
ENTERED INTO BY THE EMPOWERMENT ZONE SCHOOL BOARD. A CONTRACT13
TERMINATED BY THE CLOSURE OF A EMPOWERMENT ZONE SCHOOL BUILDING14
UNDER THIS SUBSECTION IS VOID.15
(2) ANY NEW OR EXISTING PUBLIC SCHOOL LOCATED IN THE16
EMPOWERMENT ZONE IS ELIGIBLE TO SUBMIT A REMOVE AND REPLACE17
PROPOSAL. FOR NEW OR EXISTING PUBLIC SCHOOL ACADEMIES, AN18
AUTHORIZING BODY SHALL SUBMIT THE PROPOSAL TO THE EDUCATION19
MANAGER.20
(3) IF THE EDUCATION MANAGER SELECTS A REMOVE AND REPLACE21
PROPOSAL, THE PUBLIC SCHOOL IDENTIFIED IN THE PROPOSAL SHALL22
COMMENCE OPERATIONS AT THE SCHOOL BUILDING AT THE BEGINNING OF THE23
NEXT SCHOOL FISCAL YEAR. THE SELECTED PUBLIC SCHOOL MAY EXERCISE24
ALL THE POWERS AND DUTIES OTHERWISE VESTED BY LAW IN THE25
EMPOWERMENT ZONE SCHOOL BOARD THAT PREVIOUSLY USED THE SCHOOL26
BUILDING PLACED IN THE EMPOWERMENT ZONE AND IN ITS OFFICERS, EXCEPT27
THOSE RELATING TO TAXATION OR BORROWING, AND MAY EXERCISE ALL28
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ADDITIONAL POWERS AND DUTIES PROVIDED UNDER THIS SECTION; AND,1
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE PUBLIC SCHOOL2
IDENTIFIED IN THE PROPOSAL ACCEDES TO ALL THE RIGHTS, DUTIES, AND3
OBLIGATIONS OF THE EMPOWERMENT ZONE SCHOOL BOARD WITH RESPECT TO4
THAT SCHOOL BUILDING. THESE POWERS, RIGHTS, DUTIES, AND OBLIGATIONS5
INCLUDE, BUT ARE NOT LIMITED TO, ALL OF THE FOLLOWING:6
(A) AUTHORITY OVER THE EXPENDITURE OF ALL FUNDS ATTRIBUTABLE7
TO PUPILS AT THAT SCHOOL, INCLUDING THAT PORTION OF PROCEEDS FROM8
BONDED INDEBTEDNESS AND OTHER FUNDS DEDICATED TO CAPITAL PROJECTS,9
THAT WOULD OTHERWISE BE APPORTIONED TO THAT SCHOOL BY THE10
EMPOWERMENT ZONE SCHOOL BOARD THAT PREVIOUSLY USED THE SCHOOL11
ACCORDING TO THE TERMS OF THE BOND ISSUE OR FINANCING DOCUMENTS.12
(B) ASSIGNMENT OF ANY LEASE AGREEMENT WITH A THIRD PARTY FOR13
THE USE OF THE SCHOOL BUILDING.14
(C) RIGHTS TO PROSECUTE AND DEFEND LITIGATION RELATED TO THE15
SCHOOL BUILDING AND PUPILS AT THAT SCHOOL.16
(D) RIGHTS AND OBLIGATIONS UNDER STATUTE, RULE, AND COMMON17
LAW.18
(E) AUTHORITY TO DELEGATE ANY OF THE PUBLIC SCHOOL'S POWERS19
AND DUTIES TO 1 OR MORE DESIGNEES, WITH PROPER SUPERVISION BY THE20
SELECTED PUBLIC SCHOOL'S GOVERNING BOARD.21
SEC 786. (1) THE LOCAL EDUCATION COMMISSION FOR A EMPOWERMENT22
ZONE SHALL IDENTIFY AND SELECT AN EDUCATION MANAGER CANDIDATE FOR23
APPOINTMENT AND EMPLOYMENT BY THE EMPOWERMENT ZONE. A CANDIDATE24
SHALL BE SELECTED ON THE BASIS OF HIS OR HER DEMONSTRATED ABILITY25
OF COMPETENCE, EXPERIENCE IN INCREASING ACADEMIC ACHIEVEMENT IN26
SCHOOLS OR SCHOOL SYSTEMS, EDUCATIONAL REFORM AND REDESIGN27
EXPERIENCE, DEMONSTRATED ABILITY TO MAKE EVIDENCE BASED DECISIONS28
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REGARDING THE OPENING, CLOSING AND RECONSTITUTION OF PUBLIC1
SCHOOLS, AND EXPERTISE IN THE TURN AROUND OF ACADEMICALLY FAILING2
PUBLIC SCHOOLS. THE EMPLOYMENT AGREEMENT SHALL INCLUDE THE PROPOSED3
TERMS AND CONDITIONS OF EMPLOYMENT, INCLUDING PROPOSED SALARY AND4
BENEFITS WHICH ARE TO BE PAID BY THE EMPOWERMENT ZONE.5
(2) IF A LOCAL EDUCATION COMMISSION TERMINATES AN EDUCATION6
MANAGER, THE LOCAL EDUCATION COMMISSION SHALL IDENTIFY AND SELECT A7
SUCCESSOR EDUCATION MANAGER IN ACCORDANCE WITH THIS SECTION.8
SEC. 787. (1) THE EDUCATION MANAGER SHALL BE THE CHIEF9
EXECUTIVE OFFICER AND SUPERINTENDENT OF THE EMPOWERMENT ZONE AND10
SHALL BE RESPONSIBLE FOR ALL OF THE FOLLOWING:11
(A) DEVELOPING AND IMPLEMENTING A ZONE ACCOUNTABILITY PLAN FOR12
ALL EMPOWERMENT ZONE SCHOOLS. IN DEVELOPING THE ZONE ACCOUNTABILITY13
PLAN, THE EDUCATION MANAGER SHALL CONSULT WITH EXPERTS, INCLUDING14
PSYCHOMETRICIANS, KNOWLEDGEABLE IN THE DESIGN OF SCHOOL15
ACCOUNTABILITY SYSTEMS. THE STATE SCHOOL REFORM/REDESIGN OFFICER16
SHALL REVIEW AND APPROVE THE INITIAL ZONE ACCOUNTABILITY PLAN FOR A17
EMPOWERMENT ZONE WITHIN 45 DAYS AFTER SUBMISSION BY THE EDUCATION18
MANAGER. THE EDUCATION MANAGER MAY AMEND THE ZONE ACCOUNTABILITY19
PLAN AT ANYTIME. IF THE EDUCATION MANAGER AMENDS THE ZONE20
ACCOUNTABILITY PLAN, THE AMENDED PLAN SHALL BE APPROVED BY THE21
STATE SCHOOL REFORM/REDESIGN OFFICER BEFORE IT TAKES EFFECT. IF THE22
STATE SCHOOL REFORM/REDESIGN OFFICER DOES NOT APPROVE THE AMENDED23
PLAN WITHIN 45 DAYS FOLLOWING SUBMISSION, THEN THE LAST APPROVED24
ZONE ACCOUNTABILITY PLAN SHALL REMAIN IN EFFECT UNTIL THE AMENDED25
PLAN IS APPROVED BY THE STATE SCHOOL REFORM/REDESIGN OFFICER. A26
ZONE ACCOUNTABILITY PLAN SHALL INCLUDE THE FOLLOWING ELEMENTS:27
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(i) STUDENT PERFORMANCE STANDARDS THAT ARE NO LESS STRINGENT1
THAN THE STATE'S ACCOUNTABILITY PLAN, WHICH MUST INCLUDE ACADEMIC2
MEASUREMENTS TO ASSESS STUDENT GROWTH AND PROFICIENCY FOR THE3
SCHOOL AND SUBGROUPS AT THE SCHOOL. NOT MORE THAN 10 PERCENT OF THE4
SCORE FOR ANY SCHOOL MAY INCLUDE NON-ACADEMIC FACTORS FOR THAT5
SCHOOL.6
(ii) AN A-F LETTER GRADING SYSTEM, WITH AN "A" SCHOOL BEING7
PART OF THE DEFINITION OF AS A HIGH-PERFORMING SCHOOL, AN "F"8
SCHOOL BEING DEFINED AS A SCHOOL THAT IS ON THE LOWEST ACHIEVING9
SCHOOLS LIST UNDER SECTION 1280C, AND THAT UTILIZES INDIVIDUAL10
STUDENT GROWTH, AS MEASURED IN YEARS OF ACADEMIC PROGRESS, AS BEING11
AT LEAST 33% BUT NOT MORE THAN 50% OF A SCHOOL'S OVERALL GRADE12
CALCULATION.13
(iii) IF THE LEGISLATURE ADOPTS A LETTER GRADING SYSTEM FOR ALL14
PUBLIC SCHOOLS IN THIS STATE, THE EDUCATION MANAGER SHALL ADOPT THE15
STATE'S LETTER GRADING SYSTEM AS PART OF THE ZONE ACCOUNTABILITY16
PLAN.17
(B) DEVELOPING AND IMPLEMENTING THE ZONE FACILITIES PLAN FOR18
THE EMPOWERMENT ZONE. IF THE EMPOWERED DISTRICT IS LOCATED WITHIN19
THE GEOGRAPHICAL BOUNDARIES OF ONE OR MORE CITIES, THE EDUCATION20
MANAGER SHALL DEVELOP THE ZONE FACILITIES PLAN IN COORDINATION WITH21
ANY MASTER FACILITIES PLAN DEVELOPED FOR THE LARGEST CITY LOCATED22
WITHIN THE EMPOWERMENT ZONE.23
(C) DEVELOPING AND IMPLEMENTING A ZONE ENROLLMENT PLAN FOR ALL24
EMPOWERMENT ZONE SCHOOLS THAT MEETS ALL OF THE FOLLOWING:25
(i) THE ZONE ENROLLMENT PLAN SHALL APPLY ONLY TO PROSPECTIVE26
ADMISSIONS AND ENROLLMENTS AT A EMPOWERMENT ZONE SCHOOL, AND SHALL27
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NOT AFFECT THE ENROLLMENT OF ANY PUPIL ALREADY ENROLLED AT A1
EMPOWERMENT ZONE SCHOOL.2
(ii) THE ZONE ENROLLMENT PLAN SHALL NOT DISCRIMINATE IN ITS3
PUPIL ADMISSIONS POLICIES OR PRACTICES ON THE BASIS OF INTELLECTUAL4
OR ATHLETIC ABILITY, MEASURES OF ACHIEVEMENT OR APTITUDE, STATUS AS5
A STUDENT WITH A DISABILITY, OR ANY OTHER BASIS THAT WOULD BE6
ILLEGAL IF USED BY ANY OTHER PUBLIC SCHOOL.7
(iii) THE ZONE ENROLLMENT PLAN SHALL ALLOW ANY PUPIL WHO WAS8
ENROLLED IN A EMPOWERMENT ZONE SCHOOL IN THE IMMEDIATELY PRECEDING9
SCHOOL YEAR TO ENROLL IN THE SAME EMPOWERMENT ZONE SCHOOL IN THE10
APPROPRIATE GRADE UNLESS THE APPROPRIATE GRADE IS NOT OFFERED AT11
THE SCHOOL.12
(iv) THE ZONE ENROLLMENT PLAN SHALL RECOGNIZE ANY EXISTING13
ENROLLMENT PREFERENCE PERMITTED UNDER THIS ACT.14
(v) THE ZONE ENROLLMENT PLAN SHALL TREAT PROSPECTIVE PUPILS15
SEEKING TO ATTEND AND PUPILS ATTENDING EMPOWERMENT ZONE SCHOOLS,16
FAIRLY AND EQUALLY, AND SHALL NOT FAVOR ONE PUPIL OVER ANOTHER17
PUPIL, OR DISADVANTAGE OR DISCRIMINATE AGAINST ANY PUPIL.18
(vi) IF MORE PUPILS APPLY TO ENROLL IN A EMPOWERMENT ZONE19
SCHOOL THAN THERE ARE SPACES AVAILABLE, THE ZONE ENROLLMENT PLAN20
SHALL USE A RANDOM SELECTION PROCESS TO DETERMINE ADMISSIONS.21
(vii) THE ZONE ENROLLMENT PLAN SHALL GRANT EACH PARENT OR LEGAL22
GUARDIAN OF A PUPIL THEIR FIRST SCHOOL CHOICE EXCEPT IN THE CASE OF23
ENROLLMENT OVERCAPACITY AT THAT SCHOOL. IF THE RANDOM SELECTION24
PROCESS RESULTS IN A PUPIL'S PARENT OR LEGAL GUARDIAN NOT BEING25
ABLE TO ENROLL THE PUPIL IN THEIR FIRST SCHOOL CHOICE, THEN THE26
PUPIL SHALL BE GRANTED ADMISSION INTO THE PARENT'S OR LEGAL27
GUARDIAN'S SECOND CHOICE EXCEPT IN THE CASE OF ENROLLMENT28
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OVERCAPACITY AT THAT SCHOOL. THE ZONE ENROLLMENT PLAN SHALL PROVIDE1
FOR AN ENROLLMENT PROCESS THAT CONTINUES UNTIL ALL PUPILS HAVE BEEN2
ENROLLED IN A SCHOOL CHOSEN BY THEIR PARENT OR LEGAL GUARDIAN.3
(viii) THE ZONE ENROLLMENT PLAN SHALL NOT TREAT PUPILS,4
DISTRICTS, PROVIDERS OF EDUCATIONAL SERVICES, OR SCHOOLS5
INEQUITABLY IN ANY FASHION, INCLUDING BUT NOT LIMITED TO UTILIZING6
BALANCING, WEIGHTING, OR QUOTAS OTHER THAN ENROLLMENT CAPACITY.7
(ix) THE ZONE ENROLLMENT PLAN SHALL NOT LIMIT A EMPOWERMENT8
ZONE SCHOOL'S ABILITY TO MARKET OR ADVERTISE FOR PROSPECTIVE9
PUPILS.10
(D) DETERMINE WHETHER A EMPOWERMENT ZONE SCHOOL MEETS THE11
DEFINITION OF A HIGH-PERFORMING SCHOOL UNDER THIS ACT.12
(E) DETERMINE WHETHER A EMPOWERMENT ZONE SCHOOL IS BEING13
REPLICATED AS A HIGH-PERFORMING SCHOOL.14
(F) DETERMINE WHETHER TO RECONSTITUTE A EMPOWERMENT ZONE15
SCHOOL.16
(G) DETERMINE WHETHER TO REMOVE AND REPLACE A EMPOWERMENT ZONE17
SCHOOL.18
(H) DETERMINE, IN ACCORDANCE WITH THE ZONE FACILITIES PLAN,19
WHETHER A SCHOOL BUILDING MADE AVAILABLE FOR USE BY THE EDUCATION20
MANAGER UNDER THIS ACT, SHOULD BE REMOVED AND REPLACED.21
(2) THE EDUCATION MANAGER MAY PERFORM OTHER DUTIES PRESCRIBED22
UNDER THIS ACT, MAKE REGULAR REPORTS TO AND AS REQUESTED BY THE23
LOCAL EDUCATION COMMISSION, AND AT THE CLOSE OF HIS OR HER TERM OF24
OFFICE DELIVER ALL RECORDS, BOOKS, AND PAPERS BELONGING TO THE25
OFFICE TO THE EDUCATION MANAGER’S SUCCESSOR.26
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(3) THE EDUCATION MANAGER MAY MAKE WRITTEN REPORTS TO THE1
BOARDS OF EMPOWERMENT ZONE SCHOOLS AND AUTHORIZING BODIES IN REGARD2
TO MATTERS PERTAINING TO THE EMPOWERMENT ZONE.3
(4) ON AN ANNUAL BASIS, THE EDUCATION MANAGER SHALL BE4
EVALUATED BY THE LOCAL EDUCATION COMMISSION. THE EVALUATION5
CRITERIA SHALL BE DETERMINED BY THE LOCAL EDUCATION COMMISSION AND6
SHALL, AT A MINIMUM, INCLUDE THE INCREASING PROPORTION OF PUPILS IN7
THE EMPOWERMENT ZONE WHO ACHIEVE SCORES EQUIVALENT TO PROFICIENCY8
OR HIGHER ON ASSESSMENTS, THE REDUCING PROPORTION OF PUPILS IN THE9
EMPOWERMENT ZONE WHO ATTEND SCHOOLS THAT RECEIVE A LETTER GRADE OF10
"D" OR LOWER, AND THE INCREASING PROPORTION OF PUPILS IN THE11
EMPOWERMENT ZONE SCHOOL DISTRICT WHO ATTEND SCHOOLS THAT RECEIVE A12
LETTER GRADE OF "B" OR HIGHER.13
SEC. 778. (1) A EMPOWERMENT ZONE MAY BORROW, SUBJECT TO THE14
REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO15
141.2821, SUMS OF MONEY ON TERMS THE LOCAL EDUCATION COMMISSION16
CONSIDERS NECESSARY FOR 1 OR MORE OF THE FOLLOWING PURPOSES:17
(A) FOR TEMPORARY PURPOSES FOR WHICH THE LOCAL EDUCATION18
COMMISSION MAY GIVE NOTES OF THE EMPOWERMENT ZONE IN ACCORDANCE19
WITH SECTION 1225.20
(B) TO PURCHASE SITES FOR BUILDINGS; TO PURCHASE, ERECT,21
COMPLETE, REMODEL, IMPROVE, FURNISH, REFURNISH, EQUIP, OR REEQUIP22
BUILDINGS AND FACILITIES THE BOARD IS AUTHORIZED TO ACQUIRE,23
INCLUDING, BUT NOT LIMITED TO, GENERAL ADMINISTRATIVE, VOCATIONAL,24
OR SPECIAL EDUCATION BUILDINGS OR FACILITIES, OR PARTS OF THOSE25
BUILDINGS OR FACILITIES, OR ADDITIONS TO THOSE BUILDINGS OR26
FACILITIES, AND PREPARE, DEVELOP, OR IMPROVE SITES FOR THOSE27
BUILDINGS OR FACILITIES; TO PURCHASE AND INSTALL INFORMATION28
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TECHNOLOGY SYSTEMS, TOGETHER WITH THE EQUIPMENT AND SOFTWARE, AS1
ARE NECESSARY FOR PROGRAMS CONDUCTED BY THE EMPOWERMENT ZONE; AND2
TO ISSUE AND SELL BONDS OF THE EMPOWERMENT ZONE IN THE FORM AND ON3
THE TERMS THE BOARD CONSIDERS ADVISABLE.4
SEC. 791. WITHIN SIX MONTHS OF ITS FIRST MEETING, A LOCAL5
EDUCATION COMMISSION SHALL ADOPT AND IMPLEMENT A CONFLICT OF6
INTEREST POLICY DESIGNED TO AVOID CONFLICTS OF INTEREST BY7
EMPOWERMENT ZONE OFFICIALS AND EMPLOYEES. A LOCAL EDUCATION8
COMMISSION'S CONFLICT OF INTEREST POLICY SHALL COMPLY WITH 1968 PA9
317, MCL 15.321 TO 15.330.10
SEC. 792. (1) NOTWITHSTANDING ANY OTHER PROVISIONS IN THIS11
ACT, THE STATE SCHOOL REFORM/REDESIGN OFFICER SHALL NOT ISSUE AN12
ORDER PLACING ANY EMPOWERMENT ZONE SCHOOL UNDER THE SUPERVISION OF13
THE STATE SCHOOL REFORM/REDESIGN OFFICE FOR TWO YEARS AFTER A14
EMPOWERMENT ZONE IS CREATED.15
(2) IF AN EDUCATION MANAGER RECONSTITUTES A EMPOWERMENT ZONE16
SCHOOL, AND THE EMPOWERMENT ZONE SCHOOL REMAINS ON THE CLOSURE LIST17
UNDER SECTION 784 FOR 2 CONSECUTIVE YEARS AFTER RECONSTITUTION,18
THEN STATE SCHOOL REFORM/REDESIGN OFFICER SHALL HAVE THE AUTHORITY19
TO ISSUE AN ORDER PLACING THE EMPOWERMENT ZONE SCHOOL WITHIN THE20
STATE SCHOOL REFORM/REDESIGN DISTRICT.21
(3) IF AN EDUCATION MANAGER ELECTS TO REMOVE AND REPLACE A22
SCHOOL BUILDING IN THE EMPOWERMENT ZONE, AND THE EMPOWERMENT ZONE23
SCHOOL REMAINS ON THE CLOSURE LIST UNDER SECTION 784 FOR 424
CONSECUTIVE YEARS AFTER BEING REMOVED AND REPLACED, THEN THE STATE25
SCHOOL REFORM/ REDESIGN OFFICER SHALL HAVE THE AUTHORITY TO ISSUE26
AN ORDER PLACING THE EMPOWERMENT ZONE SCHOOL WITHIN THE STATE27
SCHOOL REFORM/REDESIGN DISTRICT.28