Empowerment Zone Legislation Draft

DRAFT 1 07/16/2015
CONFIDENTIAL
ADVISORY AND PRELIMINARY TO A FINAL DETERMINATION
(School Empowerment Zones)
DRAFT BILL No. ____
DRAFT BILL No. _____

________ ____, 2015, Introduced by Rep./Sen. _______________ and referred to the Committee on
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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
DRAFT BILL No. ____
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:
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Sec. 4. (1) "EDUCATION DISTRICT" MEANS A SCHOOL DISTRICT

ORGANIZED UNDER PART 2A.
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(2) "EDUCATION MANAGER" MEANS AN EDUCATION MANAGER APPOINTED

UNDER SECTION ___.
(3) (1) "Educational media center" means a program operated by
an intermediate school district and approved by the state board
SUPERINTENDENT OF PUBLIC INSTRUCTION that provides services to
local school districts or constituent districts under section 671.
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(4) "EMPOWERED DISTRICT" MEANS AN EDUCATION DISTRICT OR A

SCHOOL DISTRICT DEFINED UNDER PART 7C.
(5) "EMPOWERMENT ZONE" MEANS A SCHOOL EMPOWERMENT ZONE
ESTABLISHED UNDER PART 7C.
(6) "EMPOWERMENT ZONE SCHOOL" MEANS A PUBLIC SCHOOL BUILDING
LOCATED WITHIN AN EMPOWERMENT ZONE.
(7) "EMPOWERMENT ZONE SCHOOL BOARD" MEANS THE BOARD OR BOARD
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OF DIRECTORS OF A PUBLIC SCHOOL THAT OCCUPIES A SCHOOL BUILDING
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LOCATED WITHIN A SCHOOL EMPOWERMENT ZONE.
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(8) "HIGH-PERFORMING SCHOOL" MEANS A PUBLIC SCHOOL BUILDING

THAT SATISFIES ALL OF THE FOLLOWING:
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(i) IS LOCATED IN AN EMPOWERMENT ZONE.
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(ii) FOR A BUILDING THAT INCLUDES PUPILS IN SOME CONFIGURATION
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OF GRADES BETWEEN KINDERGARTEN AND 12TH GRADE, 80 PERCENT OR MORE
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OF THE PUPILS RECEIVED A SCORE OF PROFICIENT OR BETTER ON THE
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MICHIGAN STUDENT TEST OF EDUCATIONAL PROGRESS (M-STEP) MATHEMATICS
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AND READING TESTS OR ANY SUCCESSOR STATE ASSESSMENT.
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(iii) FOR A BUILDING THAT INCLUDES PUPILS IN GRADES 9 TO 12, 80%
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OR MORE OF THE PUPILS IN THE PRIOR YEAR FOR WHICH IS DATA IS
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AVAILABLE HAVE GONE ON TO A PUBLIC OR PRIVATE UNIVERSITY, A
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COMMUNITY COLLEGE, AN APPRENTICE OR SKILLED TRADES PROGRAM,
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MILITARY SERVICE, OR ANY OTHER TRAINING PROGRAM THAT RESULTS IN A

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MARKETABLE LABOR CERTIFICATE UPON COMPLETION, AS DETERMINED BY THE
EDUCATION MANAGER FOR THE BUILDING.
(iv) HAS 70 PERCENT OR MORE OF PUPILS THAT MEET THE INCOME
ELIGIBILITY CRITERIA FOR THE FEDERAL FREE OR REDUCED-PRICE LUNCH
PROGRAM, AS DETERMINED UNDER THE RICHARD B. RUSSELL NATIONAL SCHOOL
LUNCH ACT, 42 USC 1751 TO 1769I, BASED UPON INFORMATION REPORTED TO
THE DEPARTMENT.
(v) PARTICIPATES IN A ZONE ENROLLMENT PLAN UNDER PART 7C.
(9) (2) "Intermediate school board" means the board of an
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intermediate school district.

(10) (3) "Intermediate school district" means a corporate body
established under part 7.
(11) (4) "Intermediate school district election" means an
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election called by an intermediate school board and held on the
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date of the regular school elections of constituent districts or on
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a date determined by the intermediate school board under section
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642c of the Michigan election law, MCL 168.642c.
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(12) (5) "Intermediate school elector" means a person who is a
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school elector of a constituent district and who is registered in
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the city or township in which the person resides.
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(13) (6) "Intermediate superintendent" means the

superintendent of an intermediate school district.
Sec. 5. (1) "Local act school district" or "special act school
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district" means a district governed by a special or local act or
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chapter of a local act. "Local school district" and "local school
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district board" as used in article 3 include a local act school
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district and a local act school district board.
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(2) "LOCAL EDUCATION COMMISSION" MEANS THE BOARD OF AN

EMPOWERMENT ZONE.
(3) (2) "Membership" means the number of full-time equivalent
pupils in a public school as determined by the number of pupils
registered for attendance plus pupils received by transfer and
minus pupils lost as defined by rules promulgated by the state
boardSUPERINTENDENT OF PUBLIC INSTRUCTION.
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(4) (3) "Michigan election law" means the Michigan election

law, 1954 PA 116, MCL 168.1 to 168.992.
(5) (4) "Nonpublic school" means a private, denominational, or
parochial school.
(6) (5) "Objectives" means measurable pupil academic skills
and knowledge.
(7) "OPERATOR" MEANS A PARTNERSHIP, NONPROFIT OR BUSINESS
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CORPORATION, LABOR ORGANIZATION, OR ANY OTHER ASSOCIATION,
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CORPORATION, TRUST, OR OTHER LEGAL ENTITY, INCLUDING AN EDUCATIONAL
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MANAGEMENT ORGANIZATION UNDER SECTIONS 503, 523C AND 553C, THAT
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CONTRACTS WITH A PUBLIC SCHOOL ACADEMY OR EMPOWERMENT ZONE SCHOOL,
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AS APPLICABLE, TO MANAGE OR PROVIDE EDUCATIONAL SERVICES TO THE
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PUBLIC SCHOOL ACADEMY OR EMPOWERMENT ZONE SCHOOL.
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(8) (6) "Public school" means a public elementary or secondary
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educational entity or agency that is established under this act OR
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OTHER LAWS OF THIS STATE, has as its primary mission the teaching
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and learning of academic and vocational-technical skills and
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knowledge, and is operated by a school district, local act school
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district, special act school district, intermediate school
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district, school of excellence, public school academy corporation,
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strict discipline academy corporation, urban high school academy

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corporation, EMPOWERMENT ZONE SCHOOL, or by the department, or
state board, OR OTHER PUBLIC BODY. Public school also includes a
laboratory school or other elementary or secondary school that is
controlled and operated by a state public university described in
section 4, 5, or 6 of article VIII of the state constitution of
1963. PUBLIC SCHOOL DOES NOT INCLUDE A NONPUBLIC SCHOOL.
(9) (7) "Public school academy" means a public school academy
established under part 6a and, except as used in part 6a, also
includes an urban high school academy established under part 6c, a
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school of excellence established under part 6e, and a strict
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discipline academy established under sections 1311b to 1311m.
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(10) (8) "Pupil membership count day" of a school district
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means that term as defined in section 6 of the state school aid act
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of 1979, MCL 388.1606.
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(11) "RECONSTITUTE" OR "RECONSTITUTION" MEANS THE PROCESS BY
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WHICH AN AUTHORIZING BODY OR EDUCATION MANAGER REMOVES AN OPERATOR
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FROM, OR MAKES SIGNIFICANT CHANGES TO THE GOVERNANCE,
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ADMINISTRATION, MANAGEMENT, EDUCATIONAL PROGRAMMING, CURRICULA, OR
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INSTRUCTIONAL STAFFING OF A PUBLIC SCHOOL ACADEMY OR EMPOWERMENT
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ZONE SCHOOL, FOR THE PURPOSE OF IMPROVING THE EDUCATIONAL
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PERFORMANCE OF PUPILS ENROLLED IN THE PUBLIC SCHOOL ACADEMY OR
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EMPOWERMENT ZONE SCHOOL.
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(12) (9) "Regular school election" or "regular election" means
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the election held in a school district, local act school district,
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or intermediate school district to elect a school board member in
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the regular course of the terms of that office and held on the
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school district's regular election date as determined under section
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642c of the Michigan election law, MCL 168.642c.

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(13) "REMOVE AND REPLACE" MEANS THE PROCESS WITHIN AN
EMPOWERMENT ZONE BY WHICH AN EMPOWERMENT ZONE SCHOOL IS REMOVED
FROM A SCHOOL BUILDING AND REPLACED BY ANOTHER PUBLIC SCHOOL IN
THAT THE SCHOOL BUILDING TO DELIVER PUBLIC EDUCATIONAL SERVICES, AS
AUTHORIZED BY AN EDUCATION MANAGER UNDER PART 7C.
(14) (10) "Reorganized intermediate school district" means an
intermediate school district formed by consolidation or annexation
of 2 or more intermediate school districts under sections 701 and
702.
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(15) "REPLICATE" OR "REPLICATION" MEANS THE PROCESS USED BY A
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SCHOOL DISTRICT OR PUBLIC SCHOOL ACADEMY WITHIN AN EMPOWERMENT ZONE
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THAT SUBSTANTIALLY REPRODUCES THE SCHOOL FACILITIES, ACADEMIC
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PROGRAM, CURRICULA, OR AGE OR GRADE RANGE CONFIGURATION OF A HIGH-
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PERFORMING SCHOOL, AS APPROVED BY AN EDUCATION MANAGER UNDER PART
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7C.
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(16) (11) "Rule" means a rule promulgated under the
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administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
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24.328.
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Sec. 7. (1) "Valuation of a fractional school district" means
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the sum of the valuations of the fractions thereof, each of which
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shall be computed in the same manner as the valuation of a whole
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school district.
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(2) "Valuation of the state" means the equalized value as

determined by the state board of equalization.
(3) "Valuation of a whole school district" means the total
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assessed value of the property contained in the district as fixed
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by the township or city board of review, which in turn is
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proportionately increased or decreased to the basis of the

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valuation of the county containing the district as fixed by the
county board of equalization, and the result in turn
proportionately increased or decreased to the basis of the
valuation of the county containing the district as last fixed by
the state board of equalization, known as the "state equalized
valuation".
(4) "Vocational education" or "career and technical education"
means education designed to provide career development and the
knowledge and skills leading to technical employment or higher
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education in a technical field. Career and technical education
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programs include classroom and laboratory experiences and work-
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based instruction. The term includes guidance and counseling for a
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pupil related to the career for which the pupil is being educated
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and trained or designed to help the pupil benefit from the
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training. Allowable expenses related to career and technical
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education delivery include all instructional, support, and
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administrative costs associated with providing these activities,
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including, but not limited to, staff salaries, wages, and benefits
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for career and technical education programs only; information and
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awareness activities; acquisition and rental of real property;
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construction of buildings; acquisition of equipment and supplies;
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and maintenance, repair, and replacement of buildings, lands,
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equipment, and supplies.
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(5) "ZONE ACCOUNTABILITY PLAN" MEANS A PLAN DEVELOPED BY AN
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EDUCATION MANAGER TO MEASURE ACADEMIC GROWTH AND ACCOUNTABILITY OF
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AN EMPOWERMENT ZONE SCHOOL UNDER PART 7C.
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(6)
ZONE ENROLLMENT PLAN MEANS A PLAN DEVELOPED BY AN
EDUCATION MANAGER UNDER PART 7C FOR THE ENROLLMENT OF PUPILS IN
EMPOWERMENT ZONE SCHOOLS.
(7) "ZONE FACILITIES PLAN" MEANS A PLAN DEVELOPED BY AN
EDUCATION MANAGER UNDER PART 7C FOR THE USE OF SCHOOL BUILDINGS
WITHIN AN SCHOOL EMPOWERMENT ZONE AND THE REPURPOSING OF UNUSED OR
VACANT SCHOOL BUILDINGS UNDER PART 7C.
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Sec. 11a. (1) Beginning on July 1, 1996, each school district

formerly organized as a primary school district or as a school
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district of the fourth class, third class, or second class shall be
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a general powers school district under this act.
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(2) Beginning on July 1, 1996, a school district operating
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under a special or local act shall operate as a general powers
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school district under this act except to the extent that the
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special or local act is inconsistent with this act. Upon repeal of
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a special or local act that governs a school district, that school
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district shall become a general powers school district under this
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act.
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(3) SUBJECT TO PART 7C, A A general powers school district has
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all of the rights, powers, and duties expressly stated in this act;
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may exercise a power implied or incident to a power expressly
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stated in this act; and, except as OTHERWISE provided by law, may
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exercise a power incidental or appropriate to the performance of a
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function related to operation of the school district PUBLIC SCHOOLS
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AND THE PROVISION OF PUBLIC EDUCATION SERVICES in the interests of
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public elementary and secondary education in the school district,
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including, but not limited to, all of the following:
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(a) Educating pupils. In addition to educating pupils in
grades K-12, this function may include operation of preschool,
lifelong education, adult education, community education, training,
enrichment, and recreation programs for other persons. A SCHOOL
DISTRICT MAY DO EITHER OR BOTH OF THE FOLLOWING:
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(i) EDUCATE PUPILS BY DIRECTLY OPERATING 1 OR MORE PUBLIC

SCHOOLS ON ITS OWN.
(ii) CAUSE PUBLIC EDUCATION SERVICES TO BE PROVIDED TO
RESIDENTS OF THE SCHOOL DISTRICT THROUGH AN AGREEMENT, CONTRACT, OR
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OTHER COOPERATIVE AGREEMENT WITH ANOTHER PUBLIC ENTITY, INCLUDING,
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BUT NOT LIMITED TO, ANOTHER SCHOOL DISTRICT OR AN INTERMEDIATE
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SCHOOL DISTRICT.
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(b) Providing for the safety and welfare of pupils while at
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school or a school sponsored activity or while en route to or from
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school or a school sponsored activity.
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(c) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ACQUIRING,
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Acquiring, constructing, maintaining, repairing, renovating,
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disposing of, or conveying school property, facilities, equipment,
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technology, or furnishings.
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(d) SUBJECT TO PART 7C, HIRING, Hiring, contracting for,
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scheduling, supervising, or terminating employees, independent
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contractors, and others, INCLUDING, BUT NOT LIMITED TO, ANOTHER
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SCHOOL DISTRICT OR AN INTERMEDIATE SCHOOL DISTRICT, to carry out
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school district powers. A school district may indemnify its
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employees AND CONTRACTORS.
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(e) Receiving, accounting for, investing, or expending school
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district PUBLIC SCHOOL money; borrowing money and pledging school
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district PUBLIC SCHOOL funds for repayment; and qualifying for

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state school aid and other public or private money from local,
regional, state, or federal sources.
(4) A general powers school district may enter into
agreements, CONTRACTS, or OTHER cooperative arrangements with other
entities, public or private, INCLUDING, BUT NOT LIMITED TO, ANOTHER
SCHOOL DISTRICT OR INTERMEDIATE SCHOOL DISTRICT, or join
organizations as part of performing the functions of the school
district. An agreement, CONTRACT, or OTHER cooperative arrangement
that is entered into under this act is not required to comply with
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the provisions of the urban cooperation act of 1967, 1967 (Ex Sess)
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PA 7, MCL 124.501 to 124.512, as provided under section 503 of that
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act, MCL 124.503.
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(5) SUBJECT TO PART 7C, A A general powers school district is
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a body corporate and shall be governed by a school board. An act of
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a school board is not valid unless approved, at a meeting of the
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school board, by a majority vote of the members lawfully serving on
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the board.
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(6) The board of a general powers school district shall adopt
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bylaws. These bylaws may establish or change board procedures, the
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number of board officers, titles and duties of board officers, and
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any other matter related to effective and efficient functioning of
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the board. Regular meetings of the board shall be held at least
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once each month, at the time and place fixed by the bylaws. Special
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meetings may be called and held in the manner and for the purposes
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specified in the bylaws. Board procedures, bylaws, and policies in
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effect on the effective date of this section shall continue in
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effect until changed by action of the board.
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(7) The board of a school district shall be elected as
provided under this act and the Michigan election law. The number
of members of the board of a general powers school district shall
remain the same as for that school district before July 1, 1996
unless changed by the school electors of the school district at a
regular or special school election. A ballot question for changing
the number of board members may be placed on the ballot by action
of the board or by petition submitted by school electors as
provided under chapter XIV of the Michigan election law, MCL
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168.301 to 168.316.
(8) Members of the board of a general powers school district
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shall be elected by the school electors for terms of 4 or 6 years,
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as provided by the school district's bylaws. At each regular school
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election, members of the board shall be elected to fill the
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positions of those whose terms will expire. A term of office begins
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as provided in section 302 of the Michigan election law, MCL
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168.302, and continues until a successor is elected and qualified.
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(9) The board of a general powers school district may submit
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to the school electors of the school district a question that is
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within the scope of the powers of the school electors and that the
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board considers proper for the management of the school system or
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the advancement of education in the school district. Upon the
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adoption of a question by the board, the board shall submit the
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question to the school electors by complying with section 312 of
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the Michigan election law, MCL 168.312.
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(10) A special election may be called by the board of a
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general powers school district as provided under chapter XIV of the
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Michigan election law, MCL 168.301 to 168.316.

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(11) Unless expressly provided in 1995 PA 289, the THE powers
of a school board or school district are not diminished by this
section or by 1995 PA 289.
(12) A school district operating a public library, public
museum, or community recreational facility as of July 1, 1996 may
continue to operate the public library, public museum, or community
recreational facility.
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(13) A school district may establish and administer

scholarships for its students or graduates to support their
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attendance at a postsecondary educational institution from funds
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the school district receives as a result of a compact entered into
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between this state and a federally recognized Indian tribe pursuant
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to the Indian gaming regulatory act, Public Law 100-497. A school
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district that establishes a scholarship program funded under this
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subsection shall ensure that the scholarship program provides for
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all of the following:
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(a) That a student or graduate is not eligible to be awarded a
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scholarship unless the student or graduate is enrolled in the
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school district for all of grades 9 to 12 and meets 1 of the
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following:
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(i) Is a resident of the school district for all of grades 9 to

12.
(ii) Was enrolled in the school district for the 2009-2010
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school year but was not a resident of the school district for that
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school year, and is enrolled in the school district continuously
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after that school year until graduation.
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(b) That the amount of a scholarship awarded to a student or
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graduate who was not enrolled in and a continuous resident of the

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school district for all of grades K to 12 shall be adjusted based
on length of enrollment and continuous residency or, for a student
or graduate described in subdivision (a)(ii), based on length of
enrollment.
(14) BEFORE OPENING A NEW PUBLIC SCHOOL BUILDING OR CHANGING
THE CONFIGURATION OF AGES OR GRADE RANGES AT A PUBLIC SCHOOL
BUILDING WITHIN A EMPOWERMENT ZONE, THE PUBLIC BODY SEEKING TO OPEN
OR OCCUPY THE BUILDING MUST FIRST OBTAIN APPROVAL FROM THE
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE. A REQUEST FOR APPROVAL
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UNDER THIS SUBSECTION MUST BE SUBMITTED TO THE EDUCATION MANAGER
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WITHIN 10 DAYS OF APPROVAL BY PUBLIC BODY. WITHIN 30 DAYS OF
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RECEIPT, THE EDUCATION MANAGER SHALL APPROVE THE REQUEST AS
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CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES
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PLAN FOR THE EMPOWERMENT ZONE, OR DENY THE REQUEST AS INCONSISTENT
15
WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE
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DECISION OF AN EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND
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NOT SUBJECT TO APPEAL.
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(15) CLOSURE OF A SCHOOL BUILDING WITHIN A EMPOWERMENT ZONE
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DOES NOT REQUIRE APPROVAL BY AN EDUCATION MANAGER. A PUBLIC SCHOOL
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BUILDING WITHIN A EMPOWERMENT ZONE THAT IS VOLUNTARILY CLOSED,
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CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C, OR CLOSED
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BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY PLAN,
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SHALL BE MADE AVAILABLE FOR USE BY THE EDUCATION MANAGER FOR THE
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EMPOWERMENT ZONE AT THE BEGINNING OF THE NEXT SCHOOL FISCAL YEAR
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AFTER THE CLOSURE.
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(16) A PUBLIC BODY OPERATING A PUBLIC SCHOOL WITHIN A
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EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF AN
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EDUCATION MANAGER TO OPERATE A SCHOOL BUILDING IN USE AS A PUBLIC

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SCHOOL ON THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS
SUBSECTION.
(17) A PUBLIC BODY OPERATING A HIGH-PERFORMING SCHOOL WITHIN A
EDUCATION MANAGER TO OPEN A NEW SCHOOL BUILDING IF THE EDUCATION
MANAGER DETERMINES THAT THE PUBLIC BODY IS OPENING THE NEW SCHOOL
BUILDING TO REPLICATE A HIGH-PERFORMING SCHOOL.
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(18) A PUBLIC BODY OPERATING A HIGH-PERFORMING SCHOOL WITHIN A

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EDUCATION MANAGER TO CHANGE THE AGE OR GRADE RANGE CONFIGURATION AT
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THE HIGH-PERFORMING SCHOOL.
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(19) THE ENROLLMENT AND ADMISSIONS PROCESS OF A EMPOWERMENT
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ZONE SCHOOL SHALL BE CONSISTENT WITH THE ZONE ENROLLMENT PLAN UNDER
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PART 7C.
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(4) IF AN EDUCATION DISTRICT IS AN EMPOWERED DISTRICT OR IS A
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EMPOWERMENT ZONE SCHOOL, AND THE EDUCATION DISTRICT SEEKS TO OPEN A
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NEW SCHOOL BUILDING OR CHANGE THE AGE OR GRADE RANGE CONFIGURATION
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AT ANY EDUCATION DISTRICT BUILDING, THE EDUCATION DISTRICT MUST
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OBTAIN THE APPROVAL OF THE EDUCATION MANAGER. WITHIN 10 BUSINESS
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DAYS FOLLOWING SCHOOL BOARD APPROVAL, A EDUCATION DISTRICT SHALL
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SUBMIT THE EDUCATION DISTRICT'S REQUEST TO THE EDUCATION MANAGER.
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WITHIN 30 DAYS OF RECEIPT, THE EDUCATION MANAGER SHALL, CONSISTENT
23
WITH THE ZONE ACCOUNTABILITY PLAN AND THE ZONE FACILITIES PLAN,
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APPROVE OR DENY THE SCHOOL DISTRICT'S REQUEST. THE DECISION OF THE
25
EDUCATION MANAGER IS FINAL AND NOT SUBJECT TO APPEAL.
26
Sec. 502. (1) SUBJECT TO PART 7C, A A public school academy
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shall be organized and administered under the direction of a board
28
of directors in accordance with this part and with bylaws adopted

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by the board of directors. A public school academy corporation
shall be organized under the nonprofit corporation act, 1982 PA
162, MCL 450.2101 to 450.3192, except that a public school academy
corporation is not required to comply with sections 170 to 177 of
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified
under the state or federal constitution, a public school academy
shall not be organized by a church or other religious organization
and shall not have any organizational or contractual affiliation
with or constitute a church or other religious organization.
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(2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, Any ANY of
11
the following may act as an authorizing body to issue a contract to
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organize and operate 1 or more public school academies under this
13
part:
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(a) The board of a school district that operates grades K to
15
12. However, the board of a school district shall not issue a
16
contract for a public school academy to operate outside the school
17
district's boundaries, and a public school academy authorized by
18
the board of a school district shall not operate outside that
19
school district's boundaries. FOR PURPOSES OF THIS PART, THE BOARD
20
OF A SCHOOL DISTRICT DOES NOT INCLUDE A LOCAL EDUCATION COMMISSION.
21
(b) An intermediate school board. However, the board of an
22
intermediate school district shall not issue a contract for a
23
public school academy to operate outside the intermediate school
24
district's boundaries, and a public school academy authorized by
25
the board of an intermediate school district shall not operate
26
outside that intermediate school district's boundaries.
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(c) The board of a community college. However, except as

otherwise provided in this subdivision, the board of a community
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college shall not issue a contract for a public school academy to
operate in a school district organized as a school district of the
first class, a public school academy authorized by the board of a
community college shall not operate in a school district organized
as a school district of the first class, the board of a community
college shall not issue a contract for a public school academy to
operate outside the boundaries of the community college district,
and a public school academy authorized by the board of a community
college shall not operate outside the boundaries of the community
10
college district. The board of a community college also may issue a
11
contract for not more than 1 public school academy to operate on
12
the grounds of an active or closed federal military installation
13
located outside the boundaries of the community college district,
14
or may operate a public school academy itself on the grounds of
15
such a federal military installation, if the federal military
16
installation is not located within the boundaries of any community
17
college district and the community college has previously offered
18
courses on the grounds of the federal military installation for at
19
least 10 years.
20
(d) The governing board of a state public university. However,
21
the combined total number of contracts for public school academies
22
issued by all state public universities shall not exceed 300
23
through December 31, 2012 and shall not exceed 500 through December
24
31, 2014. After December 31, 2014, there is no limit on the
25
combined total number of contracts for public school academies that
26
may be issued by all state public universities.
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(e) Two or more of the public agencies described in

subdivisions (a) to (d) exercising power, privilege, or authority
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17
jointly pursuant to an interlocal agreement under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
(3) To obtain a contract to organize and operate 1 or more
public school academies, 1 or more persons or an entity may apply
to an authorizing body described in subsection (2). The application
shall include at least all of the following:
(a) Identification of the applicant for the contract.
(b) Subject to the resolution adopted by the authorizing body
10
under section 503(5), a list of the proposed members of the board
11
of directors of the public school academy and a description of the
12
qualifications and method for appointment or election of members of
13
the board of directors.
14
15
(c) The proposed articles of incorporation, which shall

include at least all of the following:
16
(i) The name of the proposed public school academy.
17
(ii) The purposes for the public school academy corporation.
18
This language shall provide that the public school academy is
19
incorporated pursuant to this part and that the public school
20
academy corporation is a governmental entity.
21
(iii) The name of the authorizing body.
22
(iv) The proposed time when the articles of incorporation will
23
24
25
26
27
be effective.
(v) Other matters considered expedient to be in the articles
of incorporation.
(d) A copy of the proposed bylaws of the public school
academy.
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18
1
2
(e) Documentation meeting the application requirements of the

authorizing body, including at least all of the following:
(i) The governance structure of the public school academy.
(ii) A copy of the educational goals of the public school
academy and the curricula to be offered and methods of pupil
assessment to be used by the public school academy. The educational
goals shall include demonstrated improved pupil academic
achievement for all groups of pupils. To the extent applicable, the
progress of the pupils in the public school academy shall be
10
assessed using at least a Michigan education assessment program
11
(MEAP) test or the Michigan merit examination under section 1279g,
12
as applicable.
13
(iii) The admission policy and criteria to be maintained by the
14
public school academy. The admission policy and criteria shall
15
comply with section 504. This part of the application also shall
16
include a description of how the applicant will provide to the
17
general public adequate notice that a public school academy is
18
being created and adequate information on the admission policy,
19
criteria, and process.
20
(iv) The school calendar and school day schedule.
21
(v) The age or grade range of pupils to be enrolled.
22
(f) Descriptions of staff responsibilities and of the public
23
24
school academy's governance structure.

(g) For an application to the board of a school district, an
25
intermediate school board, or board of a community college,
26
identification of the local and intermediate school districts in
27
which the public school academy will be located.
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19
(h) An agreement that the public school academy will comply
with the provisions of this part and, subject to the provisions of
this part, with all other state law applicable to public bodies and
with federal law applicable to public bodies or school districts.
(i) A description of and address for the proposed physical
plant in which the public school academy will be located. An
applicant may request the authorizing body to issue a contract
allowing the public school academy board of directors to operate
the same configuration of age or grade levels at more than 1 site.
10
(4) An authorizing body shall oversee, or shall contract with
11
an intermediate school district, community college, or state public
12
university to oversee, each public school academy operating under a
13
contract issued by the authorizing body. The authorizing body is
14
responsible for overseeing compliance by the board of directors
15
with the contract and all applicable law. This subsection does not
16
relieve any other government entity of its enforcement or
17
supervisory responsibility.
18
(5) If the superintendent of public instruction finds that an
19
authorizing body is not engaging in appropriate continuing
20
oversight of 1 or more public school academies operating under a
21
contract issued by the authorizing body, the superintendent of
22
public instruction may suspend the power of the authorizing body to
23
issue new contracts to organize and operate public school
24
academies. A contract issued by the authorizing body during the
25
suspension is void. A contract issued by the authorizing body
26
before the suspension is not affected by the suspension.
27
(6) An authorizing body shall not charge a fee, or require
28
reimbursement of expenses, for considering an application for a

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____
20
contract, for issuing a contract, or for providing oversight of a
contract for a public school academy in an amount that exceeds a
combined total of 3% of the total state school aid received by the
public school academy in the school year in which the fees or
expenses are charged. An authorizing body may provide other
services for a public school academy and charge a fee for those
services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the public school academy.
(7) A public school academy shall be presumed to be legally
10
organized if it has exercised the franchises and privileges of a
11
public school academy for at least 2 years.
12
(8) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, An AN
13
authorizing body may enter into an intergovernmental agreement with
14
another authorizing body to issue public school academy contracts.
15
At a minimum, the agreement shall further the purposes set forth in
16
section 501, describe which authorizing body shall issue the
17
contract, and set forth which authorizing body will be responsible
18
for monitoring compliance by the board of directors of the public
19
school academy with the contract and all applicable law.
20
(9) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW PUBLIC
21
SCHOOL ACADEMY TO OPERATE WITHIN A EMPOWERMENT ZONE, THE
22
AUTHORIZING BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION
23
MANAGER FOR THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 10
24
BUSINESS DAYS OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY
25
SHALL SUBMIT ITS REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS
26
OF RECEIPT, THE EDUCATION MANAGER SHALL APPROVE OR DENY THE
27
REQUEST. THE DECISION OF THE EDUCATION MANAGER TO DENY AN
28
AUTHORIZING BODY'S REQUEST TO ISSUE A CONTRACT FOR A NEW PUBLIC

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____
21
SCHOOL ACADEMY WITHIN THE EMPOWERMENT ZONE UNDER THIS SUBSECTION IS
FINAL AND NOT SUBJECT TO APPEAL.
(10) AN AUTHORIZING BODY IS NOT REQUIRED TO OBTAIN THE
APPROVAL OF AN EDUCATION MANAGER TO REVOKE OR TERMINATE AN EXISTING
PUBLIC SCHOOL ACADEMY CONTRACT.
APPROVAL OF AN EDUCATION MANAGER TO REAUTHORIZE OR NOT REAUTHORIZE
AN EXISTING PUBLIC SCHOOL ACADEMY CONTRACT.
10
APPROVAL OF AN EDUCATION MANAGER FOR THE MERGER OR CONSOLIDATION OF
11
2 OR MORE PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE EMPOWERMENT
12
ZONE.
13
(13) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A PUBLIC
14
SCHOOL ACADEMY THAT IS A HIGH-PERFORMING SCHOOL OPERATING WITHIN A
15
EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF THE
16
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW CONTRACT
17
FOR A PUBLIC SCHOOL ACADEMY IF THE EDUCATION MANAGER DETERMINES
18
THAT THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO REPLICATE
19
THE HIGH-PERFORMING SCHOOL.
20
(14) A PUBLIC SCHOOL ACADEMY SCHOOL BUILDING THAT IS CLOSED BY
21
AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION, TERMINATION,
22
OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A PUBLIC SCHOOL
23
ACADEMY; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C; OR
24
CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY
25
PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE AVAILABLE FOR USE
26
BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE
27
BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT SCHOOL FISCAL
28
YEAR.
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____
22
Sec. 504. (1) A public school academy may be located in all or
part of an existing public school building. EXCEPT AS OTHERWISE
PROVIDED IN THIS SECTION, A A public school academy shall not
operate at a site other than the site or sites requested for the
configuration of age or grade levels that will use the site or
sites, as specified in the contract. Under a contract AND EXCEPT AS
OTHERWISE PROVIDED IN THIS SECTION, an authorizing body may permit
a public school academy to operate the same configuration of age or
grade levels at more than 1 site, and a public school academy may
10
operate the same configuration of age or grade levels at more than
11
1 site, as long as the public school academy is operating in
12
compliance with its contract and is making measurable progress
13
toward meeting its educational goals. EXCEPT AS OTHERWISE PROVIDED
14
IN THIS SECTION, For FOR a contract for a new public school
15
academy, an authorizing body may permit a public school academy to
16
17
1 site, and a public school academy may operate the same
18
configuration of age or grade levels at more than 1 site, if the
19
applicant for the proposed public school academy presents
20
documentation to the authorizing body demonstrating that the
21
applicant's proposed educational model has resulted in schools
22
making measurable progress toward meeting their education goals.
23
(2) A public school academy shall not charge tuition and shall
24
not discriminate in its pupil admissions policies or practices on
25
the basis of intellectual or athletic ability, measures of
26
achievement or aptitude, status as a student with a disability, or
27
any other basis that would be illegal if used by a school district.
28
However, EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, a public

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____
23
school academy may limit admission to pupils who are within a
particular range of age or grade level or on any other basis that
would be legal if used by a school district and may give enrollment
priority as provided in subsection (4).
(3) Except for a foreign exchange student who is not a United
States citizen, a public school academy shall not enroll a pupil
who is not a resident of this state. EXCEPT AS OTHERWISE PROVIDED
IN THIS SECTION, For FOR a public school academy authorized by a
school district, intermediate school district, or community
10
college, enrollment in the public school academy may be open to all
11
individuals who reside in this state who meet the admission policy
12
and shall be open to all pupils who reside within the geographic
13
boundaries of that authorizing body who meet the admission policy,
14
except that admission to a public school academy authorized by the
15
board of a community college to operate, or operated by the board
16
of a community college, on the grounds of a federal military
17
installation, as described in section 502(2)(c), shall be open to
18
all pupils who reside in the county in which the federal military
19
installation is located. EXCEPT AS OTHERWISE PROVIDED IN THIS
20
SECTION, For FOR a public school academy authorized by a state
21
public university, enrollment shall be open to all pupils who
22
reside in this state who meet the admission policy. Subject to
23
subsection (4) AND SUBSECTION (10), if there are more applications
24
to enroll in the public school academy than there are spaces
25
available, pupils shall be selected to enroll using a random
26
selection process. A public school academy shall allow any pupil
27
who was enrolled in the public school academy in the immediately
28
preceding school year to enroll in the public school academy in the

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____
24
appropriate grade unless the appropriate grade is not offered at
that public school academy.
3
4
(4) A public school academy may give enrollment priority to 1

or more of the following:
5
6
(a) A sibling of a pupil enrolled in the public school

academy.
(b) A pupil who transfers to the public school academy from
another public school pursuant to a matriculation agreement between
the public school academy and other public school that provides for
10
this enrollment priority, if all of the following requirements are
11
met:
12
13
(i) Each public school that enters into the matriculation

agreement remains a separate and independent public school.
14
(ii) The public school academy that gives the enrollment
15
priority selects at least 5% of its pupils for enrollment using a
16
random selection process.
17
(iii) The matriculation agreement allows any pupil who was
18
enrolled at any time during elementary school in a public school
19
that is party to the matriculation agreement and who was not
20
expelled from the public school to enroll in the public school
21
academy giving enrollment priority under the matriculation
22
agreement.
23
(c) A child of a person who is employed by or at the public
24
school academy or who is on the board of directors of the public
25
school academy. As used in this subdivision, "child" includes an
26
adopted child or a legal ward.
27
28
(5) A public school academy may include any grade up to grade

12 or any configuration of those grades, including kindergarten and
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____
25
early childhood education, as specified in its contract. If
specified in its contract, a public school academy may also operate
an adult basic education program, adult high school completion
program, or general education development testing preparation
program. SUBJECT TO PART 7C, The THE authorizing body may approve
amendment of a contract with respect to ages of pupils or grades
offered.
8
9
(6) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A

PUBLIC SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE SCHOOL, AN
10
AUTHORIZING BODY SHALL NOT APPROVE A PUBLIC SCHOOL ACADEMY TO ADD
11
ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE OR
12
GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE
13
EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A PUBLIC
14
SCHOOL ACADEMY'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE PUBLIC
15
SCHOOL ACADEMYS AUTHORIZING BODY SHALL SUBMIT THE ADDITIONAL SITE
16
REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE
17
EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE REQUEST AS
18
19
PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL SITE REQUEST
20
AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE
21
FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER THIS
22
SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.
23
(7) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, AN
24
AUTHORIZING BODY THAT ISSUES A CONTRACT TO A PUBLIC SCHOOL ACADEMY
25
OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO OBTAIN THE
26
APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL SITE IF THE
27
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE ADDITION
28
SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE IS FOR

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26
THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS
SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE AN ADDITIONAL
SITE REQUEST FOR A PUBLIC SCHOOL ACADEMY.
PUBLIC SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE SCHOOL, AN
AUTHORIZING BODY SHALL NOT PERMIT A PUBLIC SCHOOL ACADEMY TO CHANGE
THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE PUBLIC
SCHOOL ACADEMY WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR
THE SCHOOL EMPOWERMENT ZONE IN WHICH THE PUBLIC SCHOOL ACADEMY IS
10
LOCATED. WITHIN 10 BUSINESS DAYS AFTER A PUBLIC SCHOOL ACADEMY'S
11
APPROVAL OF AN AGE OR GRADE RANGE CHANGE REQUEST, THE AUTHORIZING
12
BODY FOR THE PUBLIC SCHOOL ACADEMY SHALL SUBMIT THE PUBLIC SCHOOL
13
ACADEMY'S AGE OR GRADE RANGE CHANGE REQUEST TO THE EDUCATION
14
MANAGER. WITHIN 30 DAYS OF RECEIPT, THE EDUCATION MANAGER SHALL
15
APPROVE THE REQUEST AS CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN
16
AND ZONE FACILITIES PLAN FOR THE EMPOWERMENT ZONE OR DENY THE
17
REQUEST AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE
18
19
20
(9) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A PUBLIC
21
SCHOOL ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED
22
TO OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE THE
23
CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING SCHOOL.
24
NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE
25
AN AGE OR GRADE RANGE REQUEST FOR A PUBLIC SCHOOL ACADEMY.
26
(10) FOR A PUBLIC SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE
27
SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT AND
28
ADMISSIONS PROCESS OF THE PUBLIC SCHOOL ACADEMY INCORPORATED INTO

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____
27
THE CONTRACT FOR THE PUBLIC SCHOOL ACADEMY IS CONSISTENT WITH ZONE
ENROLLMENT PLAN UNDER PART 7C.
Sec. 507. (1) An authorizing body that issues a contract for a
public school academy under this part shall do all of the
following:
6
7
8
9
10
(a) Ensure that the contract and the application for the
contract comply with the requirements of this part AND PART 7C.
(b) Within 10 days after issuing the contract, submit to the
department a copy of the contract.
(c) Establish the method of selection, length of term, and
11
number of members of the board of directors of each public school
12
academy that it authorizes. The authorizing body shall ensure that
13
the board of directors includes representation from the local
14
community.
15
(d) Oversee each public school academy operating under a
16
contract issued by the authorizing body. The oversight shall be
17
sufficient to ensure that the board of directors is in compliance
18
with the terms of the contract and with applicable law.
19
(e) Develop and implement a process for holding a public
20
school academy accountable for meeting applicable academic
21
performance standards set forth in the contract and for
22
implementing corrective action for a public school academy that
23
does not meet those standards.
24
(f) Take necessary measures to ensure that the board of
25
directors of a public school academy operates independently of any
26
educational management company involved in the operations of the
27
public school academy.
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____
28
(g) Oversee and ensure that the pupil admission process used
by the public school academy is operated in a fair and open manner
and is in compliance with the contract ,this part AND PART 7C.
(h) Ensure that the board of directors of the public school
academy maintains and releases information as necessary to comply
with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
10
(3) The authorizing body for a public school academy is the
11
fiscal agent for the public school academy. A state school aid
12
payment for a public school academy shall be paid to the
13
authorizing body that is the fiscal agent for that public school
14
academy, and the authorizing body shall then forward the payment to
15
the public school academy. Within 30 days after a contract is
16
submitted to the department by an authorizing body under subsection
17
(1), the department shall issue a district code to the public
18
school academy for which the contract was issued. If the department
19
does not issue a district code within 30 days after a contract is
20
filed, the state treasurer shall assign a temporary district code
21
in order for the public school academy to receive funding under the
22
state school aid act of 1979.
23
(4) A contract issued under this part may be revoked by the
24
authorizing body if the authorizing body determines that 1 or more
25
of the following have occurred:
26
(a) Failure of the public school academy to demonstrate
27
improved pupil academic achievement for all groups of pupils or
28
meet the educational goals set forth in the contract.

______'15
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29
1
2
3
(b) Failure of the public school academy to comply with all

applicable law.
(c) Failure of the public school academy to meet generally
accepted public sector accounting principles and demonstrate sound
fiscal stewardship.
6
7
(d) The existence of 1 or more other grounds for revocation as

specified in the contract.
(5) Except for a public school academy that is an alternative
school serving a special student population, if the superintendent
10
of public instruction STATE SCHOOL REFORM/REDESIGN OFFICER
11
determines that a public school academy site that has been
12
operating for at least 4 years is among the lowest achieving 5% of
13
all public schools in this state FOR 3 CONSECUTIVE YEARS, as
14
defined IN SECTION 1280C, for the purposes of the federal incentive
15
grant program created under sections 14005 and 14006 of title XIV
16
of the American recovery and reinvestment act of 2009, Public Law
17
111-5, is in year 2 of restructuring sanctions under the no child
18
left behind act of 2001, Public Law 107-110, not to include the ANY
19
individualized education plan subgroup, and is not currently
20
undergoing reconstitution under this section, the superintendent of
21
public instruction STATE SCHOOL REFORM/REDESIGN OFFICER shall
22
notify the public school academy's authorizing body. If an
23
authorizing body receives notice from the superintendent of public
24
instruction STATE SCHOOL REFORM/REDESIGN OFFICER under this
25
subsection, the authorizing body shall amend the public school
26
academy's contract to eliminate the public school academy's
27
authority to operate the existing age and grade levels at the site
28
and the public school academy shall cease operating the existing
______'15
____
30
age and grade levels at the site, effective at the end of the
current school year. If the public school academy operates at only
1 site, and the authorizing body receives notice from the
superintendent of public instruction STATE SCHOOL REFORM/REDESIGN
OFFICER under this subsection, the authorizing body shall revoke
the public school academy's contract, effective at the end of the
current school year.
8
9
(6) FOR A PUBLIC SCHOOL ACADEMY THAT IS A SCHOOL EMPOWERMENT

ZONE SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN
10
AUTHORIZING BODY SHALL PERMIT AN EDUCATION MANAGER TO RECONSTITUTE
11
THE PUBLIC SCHOOL ACADEMY IF THE PUBLIC SCHOOL ACADEMY IS LISTED ON
12
THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR THREE
13
CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A
14
RECONSTITUTION PROVISION IN THE CONTRACT FOR THE PUBLIC SCHOOL
15
ACADEMY THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT
16
LIMITED TO, 1 OR MORE OF THE FOLLOWING:
17
18
(A) AUTOMATIC CANCELLATION OF A CONTRACT WITH AN EDUCATIONAL

MANAGEMENT ORGANIZATION.
19
(B) WITHDRAWAL OF APPROVAL OF A CONTRACT UNDER SECTION 506.
20
(C) AUTHORIZING AN EDUCATION MANAGER TO CONDUCT ON BEHALF OF
21
THE PUBLIC SCHOOL ACADEMY BOARD OF DIRECTORS A REQUEST FOR PROPOSAL
22
PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES FOR THE
23
PUBLIC SCHOOL ACADEMY.
24
(D) IF THE BUILDING IS SUBJECT TO A SUPERINTENDENT'S CLOSURE
25
ORDER UNDER PART 7C, A REQUEST FOR PROPOSAL PROCESS TO REMOVE AND
26
REPLACE, OR APPOINTING A NEW BOARD OF DIRECTORS OR A TRUSTEE TO
27
TAKE OVER OPERATION OF THE PUBLIC SCHOOL ACADEMY.
______'15
____
31
(7) NOTHING IN THIS SECTION PROHIBITS AN AUTHORIZING BODY FROM
RECONSTITUTING A PUBLIC SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE
SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS THAT
A PUBLIC SCHOOL ACADEMY IS LISTED ON THE LOWEST ACHIEVING SCHOOLS
LIST UNDER SECTION 1280C.
(6)(8) EXCEPT AS PROVIDED IN SECTION 502, The THE decision of
an authorizing body to issue, not issue, or reconstitute a contract
under this part, or to terminate or revoke a contract under this
section, is solely within the discretion of the authorizing body,
10
is final, and is not subject to review by a court or any state
11
agency. An authorizing body that issues, does not issue, or
12
reconstitutes a contract under this part, or that terminates or
13
revokes a contract under this section, is not liable for that
14
action to the public school academy, the public school academy
15
corporation, a pupil of the public school academy, the parent or
16
guardian of a pupil of the public school academy, or any other
17
person.
18
(7) (11) Except as otherwise provided in subsection (5),
19
before EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE an
20
authorizing body revokes OR ELECTS NOT TO REISSUE a contract, the
21
authorizing body may consider and take corrective measures to avoid
22
revocation. An authorizing body may reconstitute the public school
23
academy in a final attempt to improve student educational
24
performance or to avoid interruption of the educational process. An
25
authorizing body shall include a reconstituting provision in the
26
contract that identifies these corrective measures, including, but
27
not limited to, canceling a contract with an educational management
28
organization, if any, withdrawing approval of a contract under

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____
32
section 506, or appointing a new board of directors or a trustee to
take over operation of the public school academy.
(8) (12) If an authorizing body revokes a contract, the
authorizing body shall work with a school district or another
public school, or with a combination of these entities, to ensure a
smooth transition for the affected pupils. If the revocation occurs
during the school year, the authorizing body, as the fiscal agent
for the public school academy under this part, shall return any
school aid funds held by the authorizing body that are attributable
10
to the affected pupils to the state treasurer for deposit into the
11
state school aid fund. The state treasurer shall distribute funds
12
to the public school in which the pupils enroll after the
13
revocation pursuant to a methodology established by the department
14
and the center for educational performance and information.
15
(9) (13) Not more than 10 days after a public school academy's
16
contract terminates or is revoked, the authorizing body shall
17
notify the superintendent of public instruction in writing of the
18
name of the public school academy whose contract has terminated or
19
been revoked and the date of contract termination or revocation.
20
Sec. 522.(1) SUBJECT TO PART 7C, An AN urban high school
21
academy shall be organized and administered under the direction of
22
a board of directors in accordance with this part and with bylaws
23
adopted by the board of directors. An urban high school academy
24
corporation shall be organized under the nonprofit corporation act,
25
1982 PA 162, MCL 450.2101 to 450.3192, except that an urban high
26
school academy corporation is not required to comply with sections
27
170 to 177 of 1931 PA 327, MCL 450.170 to 450.177. To the extent
28
disqualified under the state or federal constitution, an urban high

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____
33
school academy shall not be organized by a church or other
religious organization and shall not have any organizational or
contractual affiliation with or constitute a church or other
religious organization.
(2) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, The THE
governing board of a state public university may act as an
authorizing body to issue a contract for the organization and
operation of an urban high school academy under this part.
(3) A contract issued under this part shall be issued for an
10
initial term of 10 years. If the urban high school academy meets
11
the educational goals set forth in the contract and operates in
12
substantial compliance with this part, the authorizing body shall
13
automatically renew the contract for a subsequent 10-year term.
14
15
urban high school academies, an entity may apply to an authorizing
16
body described in subsection (2). The contract shall be issued to
17
an urban high school academy corporation designated by the entity
18
applying for the contract. The application shall include at least
19
20
(a) Name of the entity applying for the contract.
21
22
under section 528, a list of the proposed members of the board of
23
directors of the urban high school academy and a description of the
24
25
26
27

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34
1
2
3
(i) The name of the proposed urban high school academy to which
the contract will be issued.
(ii) The purposes for the urban high school academy
corporation. This language shall provide that the urban high school
academy is incorporated pursuant to this part and that the urban
high school academy corporation is a governmental entity and
political subdivision of this state.
10
11
12
13
14
15
16
be effective.
of incorporation.
(d) A copy of the proposed bylaws of the urban high school
academy.
17
(i) The governance structure of the urban high school academy.
18
(ii) A copy of the educational goals of the urban high school
19
academy and the curricula to be offered and methods of pupil
20
assessment to be used by the urban high school academy. The
21
educational goals shall include demonstrated improved pupil
22
academic achievement for all groups of pupils. To the extent
23
applicable, the progress of the pupils in the urban high school
24
academy shall be assessed using at least a Michigan education
25
assessment program (MEAP) test or the Michigan merit examination
26
under section 1279g, as applicable.
27
28

urban high school academy. The admission policy and criteria shall
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____
35
general public adequate notice that an urban high school academy is
being created and adequate information on the admission policy,
criteria, and process.
(iv) The school calendar and school day schedule.
(f) Descriptions of staff responsibilities and of the urban
9
10
high school academy's governance structure.

(g) A description of and address for the proposed building or
11
buildings in which the urban high school academy will be located,
12
and a financial commitment by the entity applying for the contract
13
to construct or renovate the building or buildings that will be
14
occupied by the urban high school academy that is issued the
15
contract.
16
(5) If a particular state public university issues a contract
17
that allows an urban high school academy to operate the same
18
configuration of grades at more than 1 site, as provided in section
19
524(1), each of those sites shall be under the direction of the
20
board of directors that is a party to the contract.
21
22
23
oversight of 1 or more urban high school academies operating under
24
a contract issued by the authorizing body, the superintendent of
25
26
issue new contracts to organize and operate urban high school
27
academies. A contract issued by the authorizing body during the
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____
36
suspension is void. A contract issued by the authorizing body
before the suspension is not affected by the suspension.
contract for an urban high school academy in an amount that exceeds
a combined total of 3% of the total state school aid received by
the urban high school academy in the school year in which the fees
or expenses are charged. All of the following apply to this fee:
10
11
12
13
14
15
16
17
(a) An authorizing body may use this fee only for the
following purposes:
(i) Considering applications and issuing or administering
contracts.
(ii) Compliance monitoring and oversight of urban high school
academies.
(iii) Training for urban high school academy applicants,
administrators, and boards of directors.
18
(iv) Technical assistance to urban high school academies.
19
(v) Academic support to urban high school academies or to
20
pupils or graduates of urban high school academies.
21
(vi) Evaluation of urban high school academy performance.
22
(vii) Training of teachers, including supervision of teacher
23
24
interns.
(viii) Other purposes that assist the urban high school
25
academies or traditional public schools in achieving improved
26
academic performance.
27
28
(b) An authorizing body may provide other services for an

urban high school academy and charge a fee for those services, but
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____
37
shall not require such an arrangement as a condition to issuing the
contract authorizing the urban high school academy.
(8) An urban high school academy shall be presumed to be
legally organized if it has exercised the franchises and privileges
of an urban high school academy for at least 2 years.
(9) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW URBAN
HIGH SCHOOL ACADEMY TO OPERATE WITHIN A EMPOWERMENT ZONE, THE
AUTHORIZING BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION
MANAGER FOR THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 10
10
BUSINESS DAYS OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY
11
SHALL SUBMIT ITS REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS
12
OF RECEIPT, THE EDUCATION MANAGER SHALL APPROVE OR DENY THE
13
REQUEST. THE DECISION OF THE EDUCATION MANAGER TO DENY AN
14
AUTHORIZING BODY'S REQUEST TO ISSUE A CONTRACT FOR A NEW URBAN HIGH
15
SCHOOL ACADEMY WITHIN THE EMPOWERMENT ZONE UNDER THIS SUBSECTION IS
16
FINAL AND NOT SUBJECT TO APPEAL.
17
18
19
URBAN HIGH SCHOOL ACADEMY CONTRACT.
20
21
22
AN EXISTING URBAN HIGH SCHOOL ACADEMY CONTRACT.
23
24
25
26
ZONE.
27
28
(13) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A URBAN

HIGH SCHOOL ACADEMY THAT IS A HIGH-PERFORMING SCHOOL OPERATING
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____
38
WITHIN A EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF
THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW
CONTRACT FOR A URBAN HIGH SCHOOL ACADEMY IF THE EDUCATION MANAGER
DETERMINES THAT THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO
REPLICATE THE HIGH-PERFORMING SCHOOL.
(14) A URBAN HIGH SCHOOL ACADEMY SCHOOL BUILDING THAT IS
CLOSED BY AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION,
TERMINATION, OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A URBAN
HIGH SCHOOL ACADEMY; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER
10
PART 7C; OR CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE
11
ACCOUNTABILITY PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE
12
AVAILABLE FOR USE BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE
13
IN WHICH THE BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT
14
SCHOOL FISCAL YEAR.
15
Sec. 524. (1) An urban high school academy may be located in
16
all or part of an existing public school building. EXCEPT AS
17
OTHERWISE PROVIDED IN THIS SECTION, An AN urban high school academy
18
shall not operate at a site other than the site or sites, requested
19
for the configuration of age or grade levels that will use the site
20
or sites, as specified in the contract. Under a contract AND EXCEPT
21
AS OTHERWISE PROVIDED IN THIS SECTION, an authorizing body may
22
permit an urban high school academy to operate the same
23
configuration of age or grade levels at more than 1 site, and an
24
urban high school academy may operate the same configuration of age
25
or grade levels at more than 1 site, as long as the urban high
26
school academy is operating in compliance with its contract and is
27
making measurable progress toward meeting its educational goals.
28
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, For FOR a contract

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____
39
for a new urban high school academy, an authorizing body may permit
an urban high school academy to operate the same configuration of
age or grade levels at more than 1 site, and an urban high school
academy may operate the same configuration of age or grade levels
at more than 1 site, if the applicant for the proposed urban high
school academy presents documentation to the authorizing body
demonstrating that the applicant's proposed educational model has
resulted in schools making measurable progress toward meeting their
educational goals.
10
(2) An urban high school academy shall not charge tuition.
11
Except as otherwise provided in this section, an urban high school
12
academy shall not discriminate in its pupil admissions policies or
13
practices on the basis of intellectual or athletic ability,
14
measures of achievement or aptitude, status as a handicapped
15
person, or any other basis that would be illegal if used by a
16
school district. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,
17
However, an urban high school academy may limit admission to pupils
18
who are within a particular range of age or grade level or on any
19
other basis that would be legal if used by a school district and
20
may give enrollment priority as provided in subsection (4).
21
22
States citizen, an urban high school academy shall not enroll a
23
pupil who is not a resident of this state. EXCEPT AS OTHERWISE
24
PROVIDED IN THIS SECTION, Enrollment ENROLLMENT in an urban high
25
school academy shall be open to all pupils who reside in this state
26
who meet the admission policy. Subject to subsection (4) AND
27
SUBSECTION (11), if there are more applications to enroll in the
28
urban high school academy than there are spaces available, pupils
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____
40
shall be selected to attend using a random selection process. An
urban high school academy shall allow any pupil who was enrolled in
the urban high school academy in the immediately preceding school
year to enroll in the urban high school academy in the appropriate
grade unless the appropriate grade is not offered at that urban
high school academy.
7
8
9
10
11
(4) An urban high school academy may give enrollment priority

to 1 or more of the following:
(a) A sibling of a pupil enrolled in the urban high school
academy.
(b) A child of a person who is employed by or at the urban
12
high school academy or who is on the board of directors of the
13
urban high school academy. As used in this subdivision, "child"
14
includes an adopted child or a legal ward.
15
(5) Subject to the terms of the contract authorizing the urban
16
high school academy, an urban high school academy shall include at
17
least grades 9 through 12 within 5 years after beginning operations
18
and may include other grades or any configuration of those grades,
19
including kindergarten and early childhood education, as specified
20
in its contract. If specified in its contract, an urban high school
21
academy may also operate an adult basic education program, adult
22
high school completion program, or general education development
23
testing preparation program.
24
(6) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A URBAN
25
HIGH SCHOOL ACADEMY THAT IS AN EMPOWERMENT ZONE SCHOOL, AN
26
AUTHORIZING BODY SHALL NOT APPROVE A URBAN HIGH SCHOOL ACADEMY TO
27
ADD ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE
28
OR GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR

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____
41
THE EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A URBAN
HIGH SCHOOL ACADEMY'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE
URBAN HIGH SCHOOL ACADEMYS AUTHORIZING BODY SHALL SUBMIT THE
ADDITIONAL SITE REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF
RECEIPT, THE EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE
REQUEST AS CONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE
FACILITIES PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL
SITE REQUEST AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND
ZONE FACILITIES PLAN. THE DECISION OF AN EDUCATION MANAGER UNDER
10
11
THIS SUBSECTION IS FINAL AND NOT SUBJECT TO APPEAL.

12
AUTHORIZING BODY THAT ISSUES A CONTRACT TO A URBAN HIGH SCHOOL
13
ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO
14
OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL
15
SITE IF THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE
16
ADDITION SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE
17
IS FOR THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS
18
19
SITE REQUEST FOR A URBAN HIGH SCHOOL ACADEMY.
20
(8) EXCEPT AS OTHERWISE PERMITTED IN THIS SECTION, FOR A URBAN
21
HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE SCHOOL, AN
22
AUTHORIZING BODY SHALL NOT PERMIT A URBAN HIGH SCHOOL ACADEMY TO
23
CHANGE THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE
24
URBAN HIGH SCHOOL ACADEMY WITHOUT THE APPROVAL OF THE EDUCATION
25
MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE URBAN HIGH SCHOOL
26
ACADEMY IS LOCATED. WITHIN 10 BUSINESS DAYS AFTER A URBAN HIGH
27
SCHOOL ACADEMY'S APPROVAL OF AN AGE OR GRADE RANGE CHANGE REQUEST,
28
THE AUTHORIZING BODY FOR THE URBAN HIGH SCHOOL ACADEMY SHALL SUBMIT
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____
42
THE URBAN HIGH SCHOOL ACADEMY'S AGE OR GRADE RANGE CHANGE REQUEST
TO THE EDUCATION MANAGER. WITHIN 30 DAYS OF RECEIPT, THE EDUCATION
MANAGER SHALL, APPROVE THE REQUEST AS CONSISTENT WITH THE ZONE
ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN FOR THE EMPOWERMENT
ZONE OR DENY THE REQUEST AS INCONSISTENT WITH THE ZONE
ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE DECISION OF AN
EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND NOT SUBJECT TO
APPEAL.
(9) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A URBAN
10
HIGH SCHOOL ACADEMY OPERATING A HIGH-PERFORMING SCHOOL IS NOT
11
REQUIRED TO OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE
12
THE CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING
13
SCHOOL. NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO
14
APPROVE AN AGE OR GRADE RANGE REQUEST FOR A URBAN HIGH SCHOOL
15
ACADEMY.
16
(10) FOR A URBAN HIGH SCHOOL ACADEMY THAT IS AN EMPOWERMENT
17
ZONE SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT
18
AND ADMISSIONS PROCESS OF THE URBAN HIGH SCHOOL ACADEMY
19
INCORPORATED INTO THE CONTRACT FOR THE PUBLIC SCHOOL ACADEMY IS
20
CONSISTENT WITH ZONE ENROLLMENT PLAN UNDER PART 7C.
21
Sec. 528. (1) An authorizing body that issues a contract for
22
an urban high school academy under this part shall do all of the
23
following:
24
25
26
27
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____
43
(c) Adopt a resolution establishing the method of selection,
length of term, and number of members of the board of directors of
each urban high school academy that it authorizes. The resolution
shall be written or amended as necessary to include a requirement
that each member of the board of directors must be a citizen of the
United States.
(d) Oversee the operations of each urban high school academy
operating under a contract issued by the authorizing body. The
oversight shall be sufficient to ensure that the urban high school
10
academy is in compliance with the terms of the contract and with
11
applicable law. An authorizing body may enter into an agreement
12
with 1 or more other authorizing bodies to oversee an urban high
13
school academy operating under a contract issued by the authorizing
14
body.
15
(e) Develop and implement a process for holding an urban high
16
school academy board of directors accountable for meeting
17
applicable academic performance standards set forth in the contract
18
and for implementing corrective action for an urban high school
19
academy that does not meet those standards.
20
(f) Take necessary measures to ensure that an urban high
21
school academy board of directors operates independently of any
22
educational management company involved in the operations of the
23
urban high school academy.
24
25
by the urban high school academy is operated in a fair and open
26
manner and is in compliance with the contract and , this part AND
27
PART 7C.
______'15
____
44
(h) Ensure that the board of directors of the urban high
school academy maintains and releases information as necessary to
comply with applicable law.
(2) An authorizing body may enter into an agreement with 1 or
more other authorizing bodies to carry out any function of an
authorizing body under this act.
(3) The authorizing body for an urban high school academy is
the fiscal agent for the urban high school academy. A state school
aid payment for an urban high school academy shall be paid to the
10
authorizing body that is the fiscal agent for that urban high
11
school academy, which shall then forward the payment to the urban
12
high school academy. Within 30 days after a contract is submitted
13
to the department by an authorizing body under subsection (1), the
14
department shall issue a district code to the urban high school
15
academy for which the contract was issued. If the department does
16
not issue a district code within 30 days after a contract is filed,
17
the state treasurer shall assign a temporary district code in order
18
for the urban high school academy to receive funding under the
19
state school aid act of 1979.
20
21
authorizing body that issued the contract if the authorizing body
22
determines that 1 or more of the following have occurred:
23
(a) Failure of the urban high school academy to demonstrate
24
25
26
27
(b) Failure of the urban high school academy to comply with

all applicable law.
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____
45
(c) Failure of the urban high school academy to meet generally
fiscal stewardship.
4
5
6

(5) Except for an urban high school academy that is an
alternative school serving a special student population, if the
OFFICER determines that an urban high school academy site that has
10
been operating for at least 4 years is among the lowest achieving
11
5% of all public schools in this state FOR 3 CONSECUTIVE YEARS, as
12
defined IN SECTION 1280C, for the purposes of the federal incentive
13
grant program created under sections 14005 and 14006 of title XIV
14
of the American recovery and reinvestment act of 2009, Public Law
15
111-5, is in year 2 of restructuring sanctions under the no child
16
left behind act of 2001, Public Law 107-110, not to include the ANY
17
18
19
20
notify the urban high school academy's authorizing body. If an
21
22
23
subsection, the authorizing body shall amend the urban high school
24
academy's contract to eliminate the urban high school academy's
25
26
and the urban high school academy shall cease operating the
27
existing age and grade levels at the site, effective at the end of
28
the current school year. If the urban high school academy operates
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____
46
at only 1 site, and the authorizing body receives notice from the
OFFICER under this subsection, the authorizing body shall revoke
the urban high school academy's contract, effective at the end of
the current school year.
(6) FOR A URBAN HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT ZONE
SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN
THE URBAN HIGH SCHOOL ACADEMY IF THE URBAN HIGH SCHOOL ACADEMY IS
10
LISTED ON THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR
11
THREE CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A
12
RECONSTITUTION PROVISION IN THE CONTRACT FOR THE URBAN HIGH SCHOOL
13
ACADEMY THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT
14
15
16

17
18
19
THE URBAN HIGH SCHOOL ACADEMY BOARD OF DIRECTORS A REQUEST FOR
20
PROPOSAL PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES
21
FOR THE URBAN HIGH SCHOOL ACADEMY.
22
23
24
25
TAKE OVER OPERATION OF THE URBAN HIGH SCHOOL ACADEMY.
26
27
RECONSTITUTING A URBAN HIGH SCHOOL ACADEMY THAT IS A EMPOWERMENT
28
ZONE SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS
______'15
____
47
THAT A URBAN HIGH SCHOOL ACADEMY IS LISTED ON THE LOWEST ACHIEVING
SCHOOLS LIST UNDER SECTION 1280C.
(6) (8) EXCEPT AS PROVIDED IN SECTION 522, The THE decision
of an authorizing body to issue, not issue, or reconstitute a
contract under this part, or to terminate or revoke a contract
under this section, is solely within the discretion of the
authorizing body, is final, and is not subject to review by a court
or any state agency. An authorizing body that issues, does not
issue, or reconstitutes a contract under this part, or that
10
terminates or revokes a contract under this section, is not liable
11
for that action to the urban high school academy, the urban high
12
school academy corporation, a pupil of the urban high school
13
academy, the parent or guardian of a pupil of the urban high school
14
academy, or any other person.
15
(7) (9) Except as otherwise provided in subsection (5), before
16
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE an authorizing
17
body revokes OR ELECTS NOT TO REISSURE a contract, the authorizing
18
body may consider and take corrective measures to avoid revocation.
19
An authorizing body may reconstitute the urban high school academy
20
in a final attempt to improve student educational performance or to
21
avoid interruption of the educational process. An authorizing body
22
shall include a reconstituting provision in the contract that
23
identifies these corrective measures, including, but not limited
24
to, removing 1 or more members of the board of directors,
25
withdrawing approval to contract under section 527, or appointing a
26
new board of directors or a trustee to take over operation of the
27
urban high school academy.
______'15
____
48
(8) (10) If an authorizing body revokes a contract, the
for the urban high school academy under this part, shall return any
10
11
12
13
(9) If an authorizing body revokes a contract issued under
14
this part, the authorizing body may issue a new contract within the
15
1-year period following the revocation without the new contract
16
counting toward the maximum number of contracts that may be issued
17
under this part.
18
(10) (11) Not more than 10 days after an urban high school
19
academy's contract terminates or is revoked, the authorizing body
20
shall notify the superintendent of public instruction in writing of
21
the name of the urban high school academy whose contract has
22
terminated or been revoked and the date of contract termination or
23
revocation.
24
(11) (12) If an urban high school academy's contract
25
terminates or is revoked, title to all real and personal property,
26
interest in real or personal property, and other assets owned by
27
the urban high school academy shall revert to the state. This
28
property shall be distributed in accordance with the following:

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____
49
(a) Within 30 days following the termination or revocation,
the board of directors of an urban high school academy shall hold a
public meeting to adopt a plan of distribution of assets and to
approve the dissolution of the urban high school academy
corporation, all in accordance with chapter 8 of the nonprofit
corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.
(b) The urban high school academy shall file a certificate of
dissolution with the bureau of commercial services within 10
business days following board approval.
10
(c) Simultaneously with the filing of the certificate of
11
dissolution under subdivision (b), the urban high school academy
12
board of directors shall provide a copy of the board of directors'
13
plan of distribution of assets to the state treasurer for approval.
14
Within 30 days, the state treasurer, or his or her designee, shall
15
review and approve the board of directors' plan of distribution of
16
assets. If the proposed plan of distribution of assets is not
17
approved within 30 days, the state treasurer, or his or her
18
designee, shall provide the board of directors with an acceptable
19
plan of distribution of assets.
20
(d) The state treasurer, or his or her designee, shall monitor
21
the urban high school academy's winding up of the dissolved
22
corporation in accordance with the plan of distribution of assets
23
approved or provided under subdivision (c).
24
(e) As part of the plan of distribution of assets, the urban
25
high school academy board of directors shall designate the director
26
of the department of technology, management, and budget, or his or
27
her designee, to dispose of all real property of the urban high
28
school academy corporation in accordance with the directives

______'15
____
50
developed for disposition of surplus land and facilities under
section 251 of the management and budget act, 1984 PA 431, MCL
18.1251.
(f) If the board of directors of an urban high school academy
fails to take any necessary action under this section, the state
treasurer, or his or her designee, may suspend the urban high
school academy board of directors and appoint a trustee to carry
out the board's plan of distribution of assets. Upon appointment,
the trustee shall have all the rights, powers, and privileges under
10
law that the urban high school academy board of directors had
11
before being suspended.
12
(g) Following the sale of the real or personal property or
13
interests in the real or personal property, and after payment of
14
any urban high school academy debt secured by the property or
15
interest in property, whether real or personal, the urban high
16
school academy board of directors, or a trustee appointed under
17
this section, shall forward any remaining money to the state
18
treasurer. Following receipt, the state treasurer, or his or her
19
designee, shall deposit this remaining money in the state school
20
aid fund.
21
Sec. 552. (1) SUBJECT TO SUBSECTION (22), An AN authorizing
22
body may issue contracts under this subsection to organize and
23
operate a school of excellence. All of the following apply to the
24
issuance of a contract by an authorizing body under this
25
subsection:
26
(a) The issuance of the contract must be approved by the
27
superintendent of public instruction. The superintendent of public
28
instruction shall approve issuance of a contract if he or she

______'15
____
51
determines that the proposed school of excellence is modeled after
a high-performing school or program.
(b) The first 5 contracts issued by all authorizing bodies
under this subsection shall be for schools of excellence that offer
1 or more of high school grades 9 to 12, or any combination of
those grades, as specified in the contract.
(c) A school of excellence authorized under this subsection
shall not be located in a school district that has a graduation
rate of over 75%, on average, for the most recent 3 school years
10
11
for which the data are available, as determined by the department.

(2) Subject to the limitations in this subsection, and
12
subsection (14) AND SUBSECTION (22), an authorizing body may issue
13
contracts under this subsection for 1 or more schools of excellence
14
that are cyber schools. Until December 31, 2013, the combined total
15
number of contracts that may be issued by all statewide authorizing
16
bodies under this subsection for schools of excellence that are
17
cyber schools shall not exceed 5. Until December 31, 2014, the
18
combined total number of contracts that may be issued by all
19
statewide authorizing bodies under this subsection for schools of
20
excellence that are cyber schools shall not exceed 10. After
21
December 31, 2014, the combined total number of contracts issued by
22
all statewide authorizing bodies under this subsection for schools
23
of excellence that are cyber schools shall not exceed 15. The board
24
of a school district, an intermediate school board, the board of a
25
community college that is not a statewide authorizing body, or 2 or
26
more public agencies acting jointly as described in subsection
27
(6)(e) may not act as the authorizing body for more than 1 school
28
of excellence that is a cyber school. An authorizing body shall not

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____
52
issue a contract for a school of excellence that is a cyber school
unless the school of excellence that is a cyber school meets all of
the following requirements:
(a) Is available for enrollment to all pupils in this state.
(b) Offers some configuration of or all of grades K to 12.
(c) The entity applying for the school of excellence that is a
cyber school demonstrates experience in delivering a quality
education program that improves pupil academic achievement. In
determining whether this requirement is met, an authorizing body
10
shall refer to the standards for quality online learning
11
established by the national association of charter school
12
authorizers or other similar nationally recognized standards for
13
quality online learning.
14
(d) The enrollment in the school of excellence that is a cyber
15
school is limited to not more than 2,500 pupils in membership for
16
the first school year of operation of the school of excellence that
17
is a cyber school, not more than 5,000 pupils in membership for the
18
second school year of operation of the school of excellence that is
19
a cyber school, and not more than 10,000 pupils in membership for
20
the third and subsequent school years of operation of the school of
21
excellence that is a cyber school. As used in this subdivision,
22
"membership" means that term as defined in section 6 of the state
23
school aid act of 1979, MCL 388.1606.
24
(e) The school of excellence that is a cyber school offers
25
each pupil's family a computer and subsidizes the cost of internet
26
access.
27
28
(3) For a public school academy operating under part 6a that

meets the requirements of subsection (4), with the approval of its
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authorizing body, the board of directors of the public school
academy may adopt a resolution choosing to convert the public
school academy to a school of excellence under this part. If the
board of directors of a public school academy that meets the
requirements of subsection (4) is issued a contract as a school of
excellence under this subsection, all the following apply:
(a) The public school academy shall cease to operate as a
public school academy under part 6a and shall operate as a school
of excellence upon the issuance of a contract or at another time as
10
11
determined by the authorizing body.

(b) The public school academy shall be considered to be a
12
school of excellence for all purposes upon the issuance of a
13
contract or at another time as determined by the authorizing body,
14
but shall retain its corporate identity.
15
(c) The conversion of a public school academy under part 6a to
16
a school of excellence operating under this part shall not impair
17
any agreement, mortgage, loan, bond, note or other instrument of
18
indebtedness, or any other agreement entered into by a public
19
school academy while it was operating under part 6a.
20
(d) The contract issued to the public school academy under
21
part 6a shall automatically terminate upon the issuance of a
22
contract or at another time as determined by the authorizing body.
23
(4) Subsection (3) applies to a public school academy that is
24
determined by the department to meet all of the following, as
25
applicable:
26
27
(a) If the public school academy operates only some or all of

grades K to 8, meets at least 1 of the following:
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54
(i) On average over a 3-year period, at least 90% of the pupils
enrolled in the public school academy achieved a score of
proficient or better on the Michigan education assessment program
mathematics and reading tests or successor state assessment
program.
(ii) On average over a 3-year period, at least 70% of the
pupils enrolled in the public school academy achieved a score of
proficient or better on the Michigan education assessment program
mathematics and reading tests or successor state assessment program
10
and at least 50% of the pupils enrolled in the public school
11
academy met the income eligibility criteria for the federal free or
12
reduced-price lunch program, as determined under the Richard B.
13
Russell national school lunch act, 42 USC 1751 to 1769i, and
14
reported to the department.
15
(b) If the public school academy operates grades 9 to 12, at
16
least 80% of the school's pupils graduate from high school or are
17
determined by the department to be on track to graduate from high
18
school, the school has at least 80% average attendance, and the
19
school has at least an 80% postsecondary enrollment rate.
20
(5) A school of excellence shall be organized and administered
21
under the direction of a board of directors in accordance with this
22
part and with bylaws adopted by the board of directors. A school of
23
excellence shall be organized under the nonprofit corporation act,
24
1982 PA 162, MCL 450.2101 to 450.3192, except that a school of
25
excellence is not required to comply with sections 170 to 177 of
26
1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified
27
under the state or federal constitution, a school of excellence
28
shall not be organized by a church or other religious organization

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55
and shall not have any organizational or contractual affiliation
with or constitute a church or other religious organization.
(6) SUBJECT TO SUBSECTION (22), Any ANY of the following may
act as an authorizing body to issue a contract to organize and
operate 1 or more schools of excellence under this part:
(a) The board of a school district that operates grades K to
12. However, except as otherwise provided in this subdivision, the
board of a school district shall not issue a contract for a school
of excellence to operate outside the school district's boundaries,
10
and a school of excellence authorized by the board of a school
11
district shall not operate outside that school district's
12
boundaries. If the board of a school district issues a contract for
13
a school of excellence that is a cyber school, the contract may
14
authorize the school of excellence that is a cyber school to
15
operate outside that school district's boundaries. FOR PURPOSES OF
16
THIS PART, THE BOARD OF A SCHOOL DISTRICT DOES NOT INCLUDE A LOCAL
17
EDUCATION COMMISSION.
18
(b) An intermediate school board. However, except as otherwise
19
provided in this subdivision, the board of an intermediate school
20
district shall not issue a contract for a school of excellence to
21
operate outside the intermediate school district's boundaries, and
22
a school of excellence authorized by the board of an intermediate
23
school district shall not operate outside that intermediate school
24
district's boundaries. If the board of an intermediate school
25
district issues a contract for a school of excellence that is a
26
cyber school, the contract may authorize the school of excellence
27
that is a cyber school to operate outside that intermediate school
28
district's boundaries.
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(c) The board of a community college. Except as otherwise
provided in this subdivision, the board of a community college
shall not issue a contract for a school of excellence to operate
outside the boundaries of the community college district, and a
school of excellence authorized by the board of a community college
shall not operate outside the boundaries of the community college
district. If the board of a community college issues a contract for
a school of excellence that is a cyber school, the contract may
authorize the school of excellence that is a cyber school to
10
operate outside the boundaries of the community college district.
11
The board of a community college also may issue a contract for not
12
more than 1 school of excellence to operate on the grounds of an
13
active or closed federal military installation located outside the
14
boundaries of the community college district, or may operate a
15
school of excellence itself on the grounds of such a federal
16
military installation, if the federal military installation is not
17
located within the boundaries of any community college district and
18
the community college has previously offered courses on the grounds
19
of the federal military installation for at least 10 years.
20
(d) The governing board of a state public university.
21
(e) Two or more of the public agencies described in
22
subdivisions (a) to (d) exercising power, privilege, or authority
23
jointly pursuant to an interlocal agreement under the urban
24
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
25
124.512.
26
27

schools of excellence, 1 or more persons or an entity may apply to
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57
an authorizing body described in this section. The application
shall include at least all of the following:
(a) Identification of the applicant for the contract.
under section 553(4), a list of the proposed members of the board
of directors of the school of excellence and a description of the
9
10

11
(i) The name of the proposed school of excellence.
12
(ii) The purposes for the school of excellence corporation.
13
This language shall provide that the school of excellence is
14
incorporated pursuant to this part and that the school of
15
excellence is a governmental entity.
16
17
18
19
20
be effective.
of incorporation.
21
(d) A copy of the proposed bylaws of the school of excellence.
22
23
24
(i) The governance structure of the school of excellence.
25
(ii) A copy of the educational goals of the school of
26
excellence and the curricula to be offered and methods of pupil
27
assessment to be used by the school of excellence. The educational
28
goals shall include demonstrated improved pupil academic

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achievement for all groups of pupils. To the extent applicable, the
progress of the pupils in the school of excellence shall be
assessed using at least a Michigan education assessment program
(MEAP) test or the Michigan merit examination under section 1279g,
as applicable.
school of excellence. The admission policy and criteria shall
10
general public adequate notice that a school of excellence is being
11
created and adequate information on the admission policy, criteria,
12
and process.
13
14
(iv) Except for a school of excellence that is a cyber school,

the school calendar and school day schedule.
15
16
(f) Descriptions of staff responsibilities and of the school
17
18
of excellence governance structure.

(g) For an application to the board of a school district, an
19
intermediate school board, or board of a community college,
20
identification of the school district and intermediate school
21
district in which the school of excellence will be located.
22
(h) An agreement that the school of excellence will comply
23
with the provisions of this part and, subject to the provisions of
24
this part, with all other state law applicable to public bodies and
25
with federal law applicable to public bodies or school districts.
26
(i) A description of and address for the proposed physical
27
plant in which the school of excellence will be located. An
28
applicant may request the authorizing body to issue a contract

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59
allowing the board of directors of the school of excellence to
1 site.
(8) An authorizing body shall oversee, or shall contract with
an intermediate school district, community college, or state public
university to oversee, each school of excellence operating under a
contract issued by the authorizing body. The authorizing body is
responsible for overseeing compliance by the board of directors
with the contract and all applicable law. This subsection does not
10
relieve any other government entity of its enforcement or
11
supervisory responsibility.
12
13
14
oversight of 1 or more schools of excellence operating under a
15
contract issued by the authorizing body, the superintendent of
16
17
issue new contracts to organize and operate schools of excellence.
18
A contract issued by the authorizing body during the suspension is
19
void. A contract issued by the authorizing body before the
20
suspension is not affected by the suspension.
21
22
23
24
contract for a school of excellence in an amount that exceeds a
25
combined total of 3% of the total state school aid received by the
26
school of excellence in the school year in which the fees or
27
expenses are charged. The authorizing body may provide other
28
services for a school of excellence and charge a fee for those

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services, but shall not require such an arrangement as a condition
to issuing the contract authorizing the school of excellence.
(11) A school of excellence shall be presumed to be legally
organized if it has exercised the franchises and privileges of a
public school academy for at least 2 years.
(12) A member of the board of directors of a school of
excellence is a public officer and shall, before entering upon the
duties of the office, take the constitutional oath of office for
public officers under section 1 of article XI of the state
10
constitution of 1963.
11
(13) A school of excellence that is a cyber school may make
12
available to other public schools for purchase any of the course
13
offerings that the cyber school offers to its own pupils.
14
(14) If the department determines that the combined total
15
statewide final audited membership for all pupils in membership in
16
schools of excellence that are cyber schools for the 2012-2013
17
state fiscal year exceeds a number equal to 1% of the combined
18
total statewide final audited membership for all pupils in
19
membership in public schools for the 2011-2012 state fiscal year,
20
then all of the following apply:
21
(a) An authorizing body may not issue a new contract for a new
22
school of excellence that is a cyber school to begin operations in
23
the 2013-2014 school year.
24
(b) A school of excellence that is a cyber school may not
25
enroll any new pupils in the school of excellence that is a cyber
26
school in the 2013-2014 school year.
27
28
(15) Beginning July 1, 2013, if the department determines that

the combined total statewide final audited membership for all
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61
pupils in membership in schools of excellence that are cyber
schools for a state fiscal year exceeds a number equal to 2% of the
combined total statewide final audited membership for all pupils in
membership in public schools for the 2011-2012 state fiscal year,
then all of the following apply:
(a) Subject to subdivision (c), an authorizing body may not
issue a new contract for a new school of excellence that is a cyber
school to begin operations in a school year that begins after that
determination is made.
10
(b) Subject to subdivision (c), a school of excellence that is
11
a cyber school may not enroll any new pupils in the school of
12
excellence that is a cyber school in a school year that begins
13
after that determination is made.
14
(c) If the department determines that the combined total
15
16
schools of excellence that are cyber schools for a state fiscal
17
year does not exceed a number equal to 2% of the combined total
18
19
public schools for the 2011-2012 state fiscal year, then
20
subdivisions (a) and (b) do not apply for a school year that begins
21
after that determination is made unless the department makes a new
22
determination that the membership limits under this subsection have
23
been exceeded.
24
(16) For the purposes of subsections (14) and (15), not later
25
than July 1, 2012, and by not later than July 1 of each year
26
thereafter, the department shall determine the percentage of the
27
combined total statewide final audited membership for all pupils in
28
membership in public schools that are pupils in membership in

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62
schools of excellence that are cyber schools for the state fiscal
year that includes that July 1.
(17) As used in this section:
(a) "Membership" means that term as defined in section 6 of
the state school aid act of 1979, MCL 388.1606.
(b) "Statewide authorizing body" means the governing board of
a state public university or the board of a federal tribally
controlled community college that is recognized under the tribally
controlled colleges and universities assistance act of 1978, 25 USC
10
1801 to 1852, and is determined by the department to meet the
11
requirements for accreditation by a recognized regional accrediting
12
body.
13
(18) Not later than October 1, 2012, If a district, an
14
intermediate school district, a public school academy, or the
15
education achievement system offers online learning, the board or
16
board of directors of the district, intermediate school district,
17
or public school academy, or the education achievement system,
18
shall submit to the department a report that details the per-pupil
19
costs of operating the online learning. The report shall include,
20
on a per-pupil basis, at least all of the following costs:
21
(a) Textbooks, instructional materials, and supplies,
22
23
24
including electronic instructional material.

(b) Computer and other electronic equipment, including
internet and telephone access.
25
(c) Salaries and benefits for the online learning employees.
26
(d) Purchased courses and curricula.
27
(e) Fees associated with oversight and regulation.
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1
2
(f) Travel costs associated with school activities and

testing.
(g) Facilities costs.
(h) Costs associated with special education.
(19) Not later than December 31, 2012, the department shall
issue a report to the legislature including the following:
(a) A review of the data submitted under subsection (14).
(b) A comparison with costs of substantially similar programs
9
10
11
in other states and relevant national research on the costs of

online learning.
(c) Any conclusions concerning factors or characteristics of
12
online learning programs that make a difference in the costs of
13
operating the programs.
14
(20) The board of directors of a school of excellence that is
15
a cyber school, or the board of a school district, intermediate
16
school district, or public school academy that operates an online
17
or other distance learning program, shall submit a monthly report
18
to the department, in the form and manner prescribed by the
19
department, that reports the number of pupils enrolled in the
20
school of excellence that is a cyber school, or in the online or
21
other distance learning program, during the immediately preceding
22
month.
23
(21) The board of directors of a school of excellence that is
24
a cyber school shall ensure that, when a pupil enrolls in the
25
school of excellence that is a cyber school, the pupil and his or
26
her parent or legal guardian are provided with a parent-student
27
orientation. If the pupil is at least age 18 or is an emancipated
28
minor, the orientation may be provided to just the pupil.

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(22) IF AN AUTHORIZING BODY ISSUES A CONTRACT FOR A NEW SCHOOL
OF EXCELLENCE TO OPERATE WITHIN A EMPOWERMENT ZONE, THE AUTHORIZING
BODY MUST FIRST OBTAIN THE APPROVAL OF THE EDUCATION MANAGER FOR
THE EMPOWERMENT ZONE UNDER THIS SUBSECTION. WITHIN 10 BUSINESS DAYS
OF ISSUANCE OF THE CONTRACT, THE AUTHORIZING BODY SHALL SUBMIT ITS
EDUCATION MANAGER SHALL APPROVE OR DENY THE REQUEST. THE DECISION
OF THE EDUCATION MANAGER TO DENY AN AUTHORIZING BODY'S REQUEST TO
ISSUE A CONTRACT FOR A NEW SCHOOL OF EXCELLENCE WITHIN THE
10
EMPOWERMENT ZONE UNDER THIS SUBSECTION IS FINAL AND NOT SUBJECT TO
11
APPEAL.
12
13
14
SCHOOL OF EXCELLENCE CONTRACT.
15
16
17
AN EXISTING SCHOOL OF EXCELLENCE CONTRACT.
18
19
20
21
ZONE.
22
(26) AN AUTHORIZING BODY THAT ISSUES A CONTRACT TO A SCHOOL OF
23
EXCELLENCE THAT IS A HIGH-PERFORMING SCHOOL OPERATING WITHIN A
24
EMPOWERMENT ZONE IS NOT REQUIRED TO OBTAIN THE APPROVAL OF THE
25
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE TO ISSUE A NEW CONTRACT
26
FOR A SCHOOL OF EXCELLENCE IF THE EDUCATION MANAGER DETERMINES THAT
27
THE AUTHORIZING BODY IS ISSUING THE NEW CONTRACT TO REPLICATE THE
28
HIGH-PERFORMING SCHOOL.
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(27) A SCHOOL OF EXCELLENCE SCHOOL BUILDING THAT IS CLOSED BY
AN AUTHORIZING BODY BECAUSE OF A CONTRACT REVOCATION, TERMINATION,
OR NON-REAUTHORIZATION; VOLUNTARILY CLOSED BY A SCHOOL OF
EXCELLENCE; CLOSED BY A SUPERINTENDENT CLOSURE ORDER UNDER PART 7C;
OR CLOSED BY AN EDUCATION MANAGER PURSUANT TO A ZONE ACCOUNTABILITY
PLAN UNDER PART 7C, SHALL AUTOMATICALLY BE MADE AVAILABLE FOR USE
BY THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE
BUILDING IS LOCATED AT THE BEGINNING OF THE NEXT SCHOOL FISCAL
YEAR.
10
Sec. 556. (1) A school of excellence may be located in all or
11
part of an existing public school building. EXCEPT AS OTHERWISE
12
PROVIDED IN THIS SECTION, A A school of excellence, other than a
13
cyber school operated under section 553a, shall not operate at a
14
site other than the site or sites requested for the configuration
15
of age or grade levels that will use the site or sites, as
16
specified in the contract. Under a contract AND EXCEPT AS OTHERWISE
17
PROVIDED IN THIS SECTION, an authorizing body may permit a school
18
of excellence to operate the same configuration of age or grade
19
levels at more than 1 site, and a school of excellence may operate
20
the same configuration of age or grade levels at more than 1 site,
21
as long as the school of excellence is operating in compliance with
22
its contract and is making measurable progress toward meeting its
23
educational goals. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,
24
For FOR a contract for a new school of excellence, an authorizing
25
body may permit a school of excellence to operate the same
26
configuration of age or grade levels at more than 1 site, and a
27
school of excellence may operate the same configuration of age or
28
grade levels at more than 1 site, if the applicant for the proposed
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66
school of excellence presents documentation to the authorizing body
demonstrating that the applicant's proposed educational model has
resulted in schools making measurable progress toward meeting their
educational goals.
(2) A school of excellence shall not charge tuition and shall
not discriminate in its pupil admissions policies or practices on
the basis of intellectual or athletic ability, measures of
achievement or aptitude, status as a student with a disability, or
any other basis that would be illegal if used by a school district.
10
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, However, a school of
11
excellence may limit admission to pupils who are within a
12
particular range of age or grade level or on any other basis that
13
would be legal if used by a school district and may give enrollment
14
priority as provided in subsection (4).
15
16
States citizen, a school of excellence shall not enroll a pupil who
17
is not a resident of this state. EXCEPT AS OTHERWISE PROVIDED IN
18
THIS SECTION, For FOR a school of excellence authorized by a school
19
district, intermediate school district, or community college,
20
enrollment in the school of excellence may be open to all
21
individuals who reside in this state who meet the admission policy
22
and shall be open to all pupils who reside within the geographic
23
boundaries of that authorizing body who meet the admission policy,
24
except that admission to a school of excellence authorized by the
25
board of a community college to operate, or operated by the board
26
of a community college, on the grounds of a federal military
27
installation, as described in section 552(6)(c), shall be open to
28
all pupils who reside in the county in which the federal military
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67
installation is located. EXCEPT AS OTHERWISE PROVIDED IN THIS
SECTION, For FOR a school of excellence authorized by a state
public university, enrollment shall be open to all pupils who
reside in this state who meet the admission policy. EXCEPT AS
OTHERWISE PROVIDED IN THIS SECTION, If IF there are more
applications to enroll in the school of excellence than there are
spaces available, pupils shall be selected to attend using a random
selection process. A school of excellence shall allow any pupil who
was enrolled in the school of excellence in the immediately
10
preceding school year to enroll in the school of excellence in the
11
appropriate grade unless the appropriate grade is not offered at
12
that school of excellence.
13
14
(4) A school of excellence may give enrollment priority to 1

or more of the following:
15
(a) A sibling of a pupil enrolled in the school of excellence.
16
(b) A pupil who transfers to the school of excellence from
17
another public school pursuant to a matriculation agreement between
18
the school of excellence and another public school that provides
19
for this enrollment priority, if all of the following requirements
20
are met:
21
(i) Each school of excellence or other public school that
22
enters into the matriculation agreement remains a separate and
23
independent public school.
24
(ii) The school of excellence that gives the enrollment
25
priority selects at least 5% of its pupils for enrollment using a
26
random selection process.
27
28
(iii) The matriculation agreement allows any pupil who was

enrolled at any time during elementary school in a public school
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68
that is party to the matriculation agreement and who was not
expelled from the public school to enroll in the school of
excellence giving enrollment priority under the matriculation
agreement.
(c) A child of a person who is employed by or at the school of
excellence or who is on the board of directors of the school of
excellence. As used in this subdivision, "child" includes an
adopted child or a legal ward.
(5) Subject to subsection (6), a school of excellence may
10
include any grade up to grade 12 or any configuration of those
11
grades, including kindergarten and early childhood education, as
12
specified in its contract. If specified in its contract, a school
13
of excellence may also operate an adult basic education program,
14
adult high school completion program, or general education
15
development testing preparation program. SUBJECT TO PART 7C, The
16
THE authorizing body may approve amendment of a contract with
17
respect to ages of pupils or grades offered.
18
(6) In addition to any other grade levels it operates, a
19
school of excellence shall work toward operating all of grades 9 to
20
12 within 6 years after it begins operations, unless a
21
matriculation agreement has been reached with another public school
22
that provides grades 9 to 12.
23
(7) If a school of excellence is a cyber school and its
24
authorizing body is a school district or intermediate school
25
district, the school of excellence shall give enrollment priority
26
to pupils who reside in the school district or intermediate school
27
district that is the authorizing body.
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SCHOOL OF EXCELLENCE THAT IS AN EMPOWERMENT ZONE SCHOOL, AN
AUTHORIZING BODY SHALL NOT APPROVE A SCHOOL OF EXCELLENCE TO ADD
ANOTHER SITE TO ITS CONTRACT FOR THE SAME CONFIGURATION OF AGE OR
GRADE RANGE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE
EMPOWERMENT ZONE SCHOOL. WITHIN 10 BUSINESS DAYS AFTER A SCHOOL OF
EXCELLENCE'S APPROVAL OF AN ADDITIONAL SITE REQUEST, THE SCHOOL OF
EXCELLENCES AUTHORIZING BODY SHALL SUBMIT THE ADDITIONAL SITE
10
EDUCATION MANAGER SHALL, APPROVE THE ADDITIONAL SITE REQUEST AS
11
12
PLAN FOR THE EMPOWERMENT ZONE OR DENY THE ADDITIONAL SITE REQUEST
13
AS INCONSISTENT WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE
14
15
16
17
AUTHORIZING BODY THAT ISSUES A CONTRACT TO A SCHOOL OF EXCELLENCE
18
OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO OBTAIN THE
19
APPROVAL OF AN EDUCATION MANAGER TO ADD AN ADDITIONAL SITE IF THE
20
EDUCATION MANAGER FOR THE EMPOWERMENT ZONE IN WHICH THE ADDITION
21
SITE WOULD BE LOCATED DETERMINES THAT THE ADDITIONAL SITE IS FOR
22
THE REPLICATION OF A HIGH-PERFORMING SCHOOL. NOTHING IN THIS
23
24
SITE REQUEST FOR A SCHOOL OF EXCELLENCE.
25
26
SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE SCHOOL, AN
27
AUTHORIZING BODY SHALL NOT PERMIT A SCHOOL OF EXCELLENCE TO CHANGE
28
THE AGE OR GRADE RANGE CONFIGURATION AT THE SITE OF THE SCHOOL OF

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EXCELLENCE WITHOUT THE APPROVAL OF THE EDUCATION MANAGER FOR THE
EMPOWERMENT ZONE IN WHICH THE SCHOOL OF EXCELLENCE IS LOCATED.
WITHIN 10 BUSINESS DAYS AFTER A SCHOOL OF EXCELLENCE'S APPROVAL OF
AN AGE OR GRADE RANGE CHANGE REQUEST, THE AUTHORIZING BODY FOR THE
SCHOOL OF EXCELLENCE SHALL SUBMIT THE SCHOOL OF EXCELLENCE'S AGE OR
GRADE RANGE CHANGE REQUEST TO THE EDUCATION MANAGER. WITHIN 30 DAYS
OF RECEIPT, THE EDUCATION MANAGER SHALL, APPROVE THE REQUEST AS
PLAN FOR THE EMPOWERMENT ZONE OR DENY THE REQUEST AS INCONSISTENT
10
WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE FACILITIES PLAN. THE
11
DECISION OF AN EDUCATION MANAGER UNDER THIS SUBSECTION IS FINAL AND
12
NOT SUBJECT TO APPEAL.
13
(11) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, A SCHOOL
14
OF EXCELLENCE OPERATING A HIGH-PERFORMING SCHOOL IS NOT REQUIRED TO
15
OBTAIN THE APPROVAL OF AN EDUCATION MANAGER TO CHANGE THE
16
CONFIGURATION OF AGE OR GRADE RANGE AT THE HIGH-PERFORMING SCHOOL.
17
NOTHING IN THIS SUBSECTION REQUIRES AN AUTHORIZING BODY TO APPROVE
18
AN AGE OR GRADE RANGE REQUEST FOR A SCHOOL OF EXCELLENCE.
19
(12) FOR A SCHOOL OF EXCELLENCE THAT IS AN EMPOWERMENT ZONE
20
SCHOOL, AN AUTHORIZING BODY SHALL ENSURE THAT THE ENROLLMENT AND
21
ADMISSIONS PROCESS OF THE SCHOOL OF EXCELLENCE INCORPORATED INTO
22
THE CONTRACT FOR THE SCHOOL OF EXCELLENCE IS CONSISTENT WITH ZONE
23
ENROLLMENT PLAN UNDER PART 7C.
24
Sec. 561. (1) If an authorizing body issues a contract for a
25
school of excellence under this part, the authorizing body shall do
26
27
28
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71
1
2
3

(c) Establish the method of selection, length of term, and
number of members of the board of directors of each school of
excellence that it authorizes. The authorizing body shall ensure
that the board of directors includes representation from the local
community.
8
9
(d) Oversee the operations of each school of excellence

operating under a contract issued by the authorizing body. The
10
oversight shall be sufficient to ensure that the school of
11
excellence is in compliance with the terms of the contract and with
12
applicable law. This subdivision does not relieve any other
13
governmental entity of its enforcement or supervisory
14
responsibility.
15
(e) Develop and implement a process for holding a school of
16
excellence board of directors accountable for meeting applicable
17
academic performance standards set forth in the contract and for
18
implementing corrective action for a school of excellence that does
19
not meet those standards.
20
(f) Take necessary measures to ensure that a school of
21
excellence board of directors operates independently of any
22
educational management organization involved in the operations of
23
the school of excellence.
24
25
by the school of excellence is operated in a fair and open manner
26
and is in compliance with the contract and , this part AND PART 7C.
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72
(h) Ensure that the board of directors of the school of
excellence maintains and releases information as necessary to
comply with applicable law.
(2) The authorizing body may enter into an agreement with 1 or
more authorizing bodies, as defined under part 6a, to carry out any
function of the authorizing body under subsection (1)(a) to (h).
(3) The authorizing body for a school of excellence is the
fiscal agent for the school of excellence. A state school aid
payment for a school of excellence shall be paid to the authorizing
10
body as the fiscal agent for that school of excellence, and the
11
authorizing body shall then forward the payment to the school of
12
excellence. Within 30 days after a contract is submitted to the
13
department by the authorizing body under subsection (1), the
14
department shall issue a district code to the school of excellence
15
for which the contract was issued. If the department does not issue
16
a district code within 30 days after a contract is filed, the state
17
treasurer shall assign a temporary district code in order for the
18
school of excellence to receive funding under the state school aid
19
act of 1979.
20
21
authorizing body if the authorizing body determines that 1 or more
22
of the following have occurred:
23
(a) Failure of the school of excellence to demonstrate
24
25
26
27
(b) Failure of the school of excellence to comply with all

applicable law.
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73
(c) Failure of the school of excellence to meet generally
fiscal stewardship.
4
5
6

(5) Except for a school of excellence that is an alternative
school serving a special student population, if the superintendent
of public instruction STATE SCHOOL REFORM/REDESIGN OFFICER
determines that a school of excellence site that has been operating
10
for at least 4 years is among the lowest achieving 5% of all public
11
schools in this state FOR 3 CONSECUTIVE YEARS, as defined IN
12
SECTION 1280C, for the purposes of the federal incentive grant
13
program created under sections 14005 and 14006 of title XIV of the
14
American recovery and reinvestment act of 2009, Public Law 111-5,
15
is in year 2 of restructuring sanctions under the no child left
16
behind act of 2001, Public Law 107-110, not to include the ANY
17
18
19
20
notify the school of excellence's authorizing body. If an
21
22
23
subsection, the authorizing body shall amend the school of
24
excellence's contract to eliminate the school of excellence's
25
26
and the school of excellence shall cease operating the existing age
27
and grade levels at the site, effective at the end of the current
28
school year. If the school of excellence operates at only 1 site or

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74
is a cyber school, and the authorizing body receives notice from
the superintendent of public instruction STATE SCHOOL
REFORM/REDESIGN OFFICER under this subsection, the authorizing body
shall revoke the school of excellence's contract, effective at the
end of the current school year.
(6) FOR A SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE
SCHOOL AND IS LISTED ON THE CLOSURE LIST UNDER PART 7C, AN
THE SCHOOL OF EXCELLENCE IF THE SCHOOL OF EXCELLENCE IS LISTED ON
10
THE LOWEST ACHIEVING SCHOOLS LIST UNDER SECTION 1280C FOR THREE
11
CONSECUTIVE YEARS. AN AUTHORIZING BODY SHALL INCLUDE A
12
RECONSTITUTION PROVISION IN THE CONTRACT FOR THE SCHOOL OF
13
EXCELLENCE THAT IDENTIFIES CORRECTIVE MEASURES, INCLUDING, BUT NOT
14
15
16

17
18
19
THE SCHOOL OF EXCELLENCE BOARD OF DIRECTORS A REQUEST FOR PROPOSAL
20
PROCESS AND THE SELECTION OF A NEW PROVIDER OF SERVICES FOR THE
21
SCHOOL OF EXCELLENCE.
22
23
24
25
TAKE OVER OPERATION OF THE SCHOOL OF EXCELLENCE.
26
27
RECONSTITUTING A SCHOOL OF EXCELLENCE THAT IS A EMPOWERMENT ZONE
28
SCHOOL IF THE RECONSTITUTION OCCURS DURING THE FIRST TWO YEARS THAT
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75
A SCHOOL OF EXCELLENCE IS LISTED ON THE LOWEST ACHIEVING SCHOOLS
LIST UNDER SECTION 1280C.
(6) (8) Except AS PROVIDED IN SECTION 552 AND EXCEPT for a
contract issued by a school district pursuant to a vote by the
school electors on a ballot question under section 553(2), the
decision of the authorizing body to issue, not issue, or
reconstitute a contract under this part, or to terminate or revoke
a contract under this section, is solely within the discretion of
the authorizing body, is final, and is not subject to review by a
10
court or any other state agency. If the authorizing body issues,
11
does not issue, or reconstitutes a contract under this part, or
12
terminates or revokes a contract under this section, the
13
authorizing body is not liable for that action to the school of
14
excellence, the school of excellence corporation, a pupil of the
15
school of excellence, the parent or guardian of a pupil of the
16
school of excellence, or any other person.
17
(7) (9) Except as otherwise provided in subsection (5), before
18
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, BEFORE the
19
authorizing body revokes OR ELECTS NOT TO REISSUE a contract, the
20
authorizing body may consider and take corrective measures to avoid
21
revocation. The authorizing body may reconstitute the school of
22
excellence in a final attempt to improve student educational
23
performance or to avoid interruption of the educational process.
24
The authorizing body shall include a reconstituting provision in
25
the contract that identifies these corrective measures, including,
26
but not limited to, canceling a contract with an educational
27
management organization, if any, withdrawing approval to contract
______'15
____
76
under section 560, or appointing a new board of directors or a
trustee to take over operation of the school of excellence.
(8) (10) If the authorizing body revokes a contract, the
for the school of excellence under this part, shall return any
10
11
12
13
14
15
(9) (11) Not more than 10 days after a school of excellence's
16
contract terminates or is revoked, the authorizing body shall
17
notify the superintendent of public instruction in writing of the
18
name of the school of excellence whose contract has terminated or
19
been revoked and the date of contract termination or revocation.
20
(10) (12) If a school of excellence's contract terminates or
21
is revoked, title to all real and personal property, interest in
22
real or personal property, and other assets owned by the school of
23
excellence shall revert to the state. This property shall be
24
distributed in accordance with the following:
25
(a) Within 30 days following the termination or revocation,
26
the board of directors of a school of excellence shall hold a
27
public meeting to adopt a plan of distribution of assets and to
28
approve the dissolution of the school of excellence corporation,

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77
all in accordance with chapter 8 of the nonprofit corporation act,
1982 PA 162, MCL 450.2801 to 450.2864.
(b) The school of excellence shall file a certificate of
dissolution with the bureau of commercial services within 10
business days following board approval.
(c) Simultaneously with the filing of the certificate of
dissolution under subdivision (b), the school of excellence board
of directors shall provide a copy of the board of directors' plan
of distribution of assets to the state treasurer for approval.
10
Within 30 days, the state treasurer, or his or her designee, shall
11
review and approve the board of directors' plan of distribution of
12
assets. If the proposed plan of distribution of assets is not
13
approved within 30 days, the state treasurer, or his or her
14
designee, shall provide the board of directors with an acceptable
15
plan of distribution of assets.
16
(d) The state treasurer, or his or her designee, shall monitor
17
the school of excellence's winding up of the dissolved corporation
18
in accordance with the plan of distribution of assets approved or
19
provided under subdivision (c).
20
(e) As part of the plan of distribution of assets, the school
21
of excellence board of directors shall designate the director of
22
the department of technology, management, and budget, or his or her
23
designee, to dispose of all real property of the school of
24
excellence corporation in accordance with the directives developed
25
for disposition of surplus land and facilities under section 251 of
26
the management and budget act, 1984 PA 431, MCL 18.1251.
27
28
(f) If the board of directors of a school of excellence fails

to take any necessary action under this section, the state
______'15
____
78
treasurer, or his or her designee, may suspend the school of
excellence board of directors and appoint a trustee to carry out
the board's plan of distribution of assets. Upon appointment, the
trustee shall have all the rights, powers, and privileges under law
that the school of excellence board of directors had before being
suspended.
(g) Following the sale of the real or personal property or
interests in the real or personal property, and after payment of
any school of excellence debt secured by the property or interest
10
in property, whether real or personal, the school of excellence
11
board of directors, or a trustee appointed under this section,
12
shall forward any remaining money to the state treasurer. Following
13
receipt, the state treasurer, or his or her designee, shall deposit
14
this remaining money in the state school aid fund.
15
PART 7C
16
EMPOWERMENT ZONES
17
SEC. 771. (1) A EMPOWERMENT ZONE IS A BODY CORPORATE AND SHALL
18
BE GOVERNED BY THIS PART AND BY THOSE PROVISIONS OF ARTICLES 2, 3,
19
AND 4 APPLICABLE TO EMPOWERMENT ZONES, LOCAL EDUCATION COMMISSIONS,
20
EMPOWERMENT ZONE SCHOOLS, EMPOWERMENT ZONE SCHOOL BOARDS AND
21
EDUCATION MANAGERS.
22
(2) A EMPOWERMENT ZONE IS A SCHOOL DISTRICT FOR THE PURPOSE OF
23
RECEIVING AID FROM THE STATE SCHOOL AID FUND UNDER SECTION 11 OF
24
ARTICLE IX OF THE STATE CONSTITUTION OF 1963.
25
26
27
28
(3) EACH EMPOWERMENT ZONE SHALL EMPLOY A EMPOWERMENT ZONE

EDUCATION MANAGER.
SEC. 772. (1) A EMPOWERMENT ZONE HAS ALL OF THE RIGHTS,
POWERS, AND DUTIES EXPRESSLY STATED IN THIS ACT; MAY EXERCISE A
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79
POWER IMPLIED OR INCIDENT TO ANY POWER EXPRESSLY STATED IN THIS
ACT; AND, EXCEPT AS PROVIDED BY LAW, MAY EXERCISE A POWER
INCIDENTAL OR APPROPRIATE TO THE PERFORMANCE OF ANY FUNCTION
RELATED TO THE OPERATION OF THE EMPOWERMENT ZONE IN THE INTERESTS
OF PUBLIC ELEMENTARY AND SECONDARY EDUCATION LOCATED WITHIN A
EMPOWERMENT ZONE CREATED UNDER THIS PART, INCLUDING, IMPLEMENTATION
OF THE FOLLOWING:
(A) A ZONE ACCOUNTABILITY PLAN.
(B) A ZONE FACILITIES PLAN.
10
(C) A ZONE ENROLLMENT PLAN.
11
(D) HIRING OR CONTRACTING WITH PERSONNEL AS NECESSARY FOR THE
12
EDUCATION MANAGER TO CARRY OUT THE ZONE ACCOUNTABILITY PLAN, ZONE
13
FACILITIES PLAN, AND ZONE ENROLLMENT PLAN, OR ANY REQUEST FOR
14
PROPOSAL PROCESS AUTHORIZED UNDER THIS PART. A EMPOWERMENT ZONE MAY
15
INDEMNIFY ITS EMPLOYEES.
16
(E) PROCURING APPROPRIATE GOODS AND SERVICES IN KINDS AND
17
AMOUNTS NECESSARY TO CARRY OUT THE PURPOSES OF THE EMPOWERMENT
18
ZONE.
19
(F) PROCURING INSURANCE FOR THE EMPOWERMENT ZONE, LOCAL
20
EDUCATION COMMISSION AND ITS EMPLOYEES AND CONTRACTORS IN TYPES AND
21
AMOUNTS NECESSARY TO OPERATE THE EMPOWERMENT ZONE.
22
(G) RECEIVING, ACCOUNTING FOR, INVESTING, OR EXPENDING
23
EMPOWERMENT ZONE MONEY; BORROWING MONEY AND PLEDGING EMPOWERMENT
24
ZONE FUNDS FOR REPAYMENT; AND QUALIFYING FOR STATE SCHOOL AID AND
25
OTHER PUBLIC OR PRIVATE MONEY FROM LOCAL, REGIONAL, STATE, OR
26
FEDERAL SOURCES.
27
28
(H) ADMINISTERING A RECONSTITUTION REQUEST FOR PROPOSAL

PROCESS.
______'15
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80
1
2
3
(I) ADMINISTERING A REMOVE AND REPLACE REQUEST FOR PROPOSAL

PROCESS.
(2) A EMPOWERMENT ZONE MAY ENTER INTO AGREEMENTS OR
COOPERATIVE ARRANGEMENTS WITH OTHER PUBLIC SCHOOLS, AUTHORIZING
BODIES AND OTHER ENTITIES, PUBLIC OR PRIVATE, OR JOIN ORGANIZATIONS
AS PART OF PERFORMING THE FUNCTIONS OF THE EMPOWERMENT ZONE. AN
AGREEMENT OR COOPERATIVE ARRANGEMENT THAT IS ENTERED INTO UNDER
THIS PART IS NOT REQUIRED TO COMPLY WITH THE PROVISIONS OF THE
URBAN COOPERATION ACT OF 1967, 1967 (EX SESS) PA 7, MCL 124.501 TO
10
124.512, AS PROVIDED UNDER SECTION 503 OF THAT ACT, MCL 124.503.
11
(3) UNLESS OTHERWISE EXPRESSLY PROVIDED IN THIS ACT, A
12
EMPOWERMENT ZONE SHALL NOT DIRECTLY OPERATE A PUBLIC SCHOOL OR
13
PROVIDE EDUCATIONAL SERVICES TO ANY PUPIL ATTENDING A EMPOWERMENT
14
ZONE SCHOOL.
15
(4) A EMPOWERMENT ZONE, LOCAL EDUCATION COMMISSION,
16
EMPOWERMENT ZONE SCHOOL BOARD, EDUCATION MANAGER, EMPOWERMENT ZONE
17
EMPLOYEES, CONTRACTORS AND AGENTS SHALL TREAT ALL EMPOWERMENT ZONE
18
SCHOOLS, AND PUPILS ATTENDING EMPOWERMENT ZONE SCHOOLS, FAIRLY AND
19
EQUALLY AND SHALL NOT MAKE DECISIONS THAT FAVOR ONE EMPOWERMENT
20
ZONE SCHOOL OR PUPIL OVER ANOTHER EMPOWERMENT ZONE SCHOOL OR PUPIL,
21
OR THAT DISADVANTAGE OR DISCRIMINATE AGAINST ONE TYPE OF
22
EMPOWERMENT ZONE SCHOOL OR PUPIL.
23
SEC. 773. (1) A EMPOWERMENT ZONE SHALL BE ORGANIZED TO OPERATE
24
WITHIN THE GEOGRAPHICAL BOUNDARIES OF AN EMPOWERED DISTRICT AND THE
25
CONTIGUOUS BOUNDARIES OF THE EMPOWERED DISTRICT INCLUDED WITHIN THE
26
EMPOWERMENT ZONE UNDER THIS PART. A EMPOWERMENT ZONE IS
27
AUTOMATICALLY FORMED FOR AN EDUCATION DISTRICT AND THE CONTIGUOUS
28
BOUNDARIES OF THE EDUCATION DISTRICT INCLUDED WITHIN THE

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81
EMPOWERMENT ZONE FOR THE EDUCATION DISTRICT UNDER THIS PART AND FOR
A SCHOOL DISTRICT AND THE CONTIGUOUS BOUNDARIES OF THE SCHOOL
DISTRICT INCLUDED WITHIN THE EMPOWERMENT ZONE FOR THE SCHOOL
DISTRICT UNDER THIS PART UPON THE DESIGNATION OF THE SCHOOL
DISTRICT AS AN EMPOWERED DISTRICT UNDER THIS SECTION.
6
7
(2) A SCHOOL DISTRICT OTHER THAN AN EDUCATION DISTRICT BECOMES

AN EMPOWERED DISTRICT IF ANY OF THE FOLLOWING OCCURS:
(A) THE SUPERINTENDENT OF PUBLIC INSTRUCTION, THE STATE
TREASURER, OR THE STATE SCHOOL REFORM/REDESIGN OFFICER DETERMINES
10
THAT SCHOOL DISTRICT IS NOT FINANCIALLY VIABLE AND IS UNABLE TO
11
EDUCATE PUPILS IN GRADES K-12 RESIDING IN THE SCHOOL DISTRICT BY
12
OPERATING SCHOOLS FOR A FULL SCHOOL YEAR AND PROVIDING THE REQUIRED
13
NUMBER OF INSTRUCTIONAL HOURS UNDER THIS ACT AND THE STATE SCHOOL
14
AID ACT OF 1979. AS USED IN THIS SUBDIVISION "FINANCIALLY VIABLE"
15
MEANS THAT A SCHOOL DISTRICT HAS THE FINANCIAL RESOURCES TO CARRY
16
OUT AT LEAST THE EDUCATIONAL PROGRAM REQUIRED BY LAW AND PAY ITS
17
EXISTING DEBTS AS THEY BECOME DUE TAKING INTO CONSIDERATION THE
18
PROJECTED ENROLLMENT, CASH FLOW, REVENUES, AND BORROWING CAPABILITY
19
OF THE SCHOOL DISTRICT.
20
21
22
23
24
(B) THE SCHOOL BOARD OF A SCHOOL DISTRICT ADOPTS A RESOLUTION

DESIGNATING THE SCHOOL DISTRICT AS AN EMPOWERED DISTRICT.
(C) THE SCHOOL DISTRICT IS DESIGNATED AS AN EMPOWERED DISTRICT
UNDER SUBSECTION (3).
(3) A SCHOOL DISTRICT RESIDENT MAY FILE A WRITTEN REQUEST WITH
25
THE BOARD OF THE SCHOOL DISTRICT TO DESIGNATE THE SCHOOL DISTRICT
26
AS AN EMPOWERED DISTRICT. IF THE SCHOOL DISTRICT BOARD DOES NOT
27
APPROVE THE REQUEST TO DESIGNATE THE SCHOOL DISTRICT AS AN
28
EMPOWERED DISTRICT, SCHOOL DISTRICT ELECTORS MAY PETITION THE BOARD

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82
TO SUBMIT THE QUESTION OF DESIGNATING THE SCHOOL DISTRICT AS AN
EMPOWERED DISTRICT TO THE ELECTORS OF THE SCHOOL DISTRICT. A
PETITION UNDER THIS SUBSECTION SHALL INCLUDE A WRITTEN REQUEST TO
DESIGNATE THE SCHOOL DISTRICT AS AN EMPOWERED DISTRICT AND MUST BE
SIGNED BY A NUMBER OF SCHOOL ELECTORS OF THE SCHOOL DISTRICT EQUAL
TO AT LEAST 5% OF THE TOTAL NUMBER OF SCHOOL ELECTORS OF THAT
SCHOOL DISTRICT. THE PETITION SHALL BE FILED WITH THE SCHOOL
DISTRICT FILING OFFICIAL. IF THE BOARD RECEIVES A PETITION
SATISFYING THE REQUIREMENTS OF THIS SUBSECTION, THE BOARD SHALL
10
HAVE THE QUESTION OF DESIGNATING THE SCHOOL DISTRICT AS AN
11
EMPOWERED DISTRICT PLACED ON THE BALLOT AT ITS NEXT REGULAR SCHOOL
12
ELECTION HELD AT LEAST 60 DAYS AFTER RECEIVING THE PETITION. IF A
13
MAJORITY OF THE SCHOOL ELECTORS OF THE SCHOOL DISTRICT VOTING ON
14
THE QUESTION VOTE IF FAVOR OF DESIGNATING THE SCHOOL DISTRICT AS AN
15
EDUCATION SCHOOL DISTRICT, THE SUPERINTENDENT OF PUBLIC INSTRUCTION
16
SHALL ISSUE AN ORDER ORGANIZING THE EMPOWERMENT ZONE FOR THE
17
EMPOWERED DISTRICT AND ITS CONTIGUOUS AREAS UNDER THIS PART WITHIN
18
30 DAYS AFTER THE VOTE IS CERTIFIED.
19
(4) IF A EMPOWERMENT ZONE IS CREATED UNDER SUBSECTION (2), ALL
20
OF THE FOLLOWING SCHOOL BUILDINGS SHALL BE CONSIDERED EMPOWERMENT
21
ZONE SCHOOLS SUBJECT TO THE POWERS OF AN EDUCATION MANAGER FOR THE
22
EMPOWERMENT ZONE UNDER THIS PART:
23
(A) FOR AN EMPOWERED DISTRICT THAT IS AN EDUCATION DISTRICT,
24
ALL PUBLIC SCHOOL BUILDINGS OF THE EDUCATION DISTRICT, ALL SCHOOL
25
BUILDINGS OF ANY PUBLIC SCHOOL ACADEMY LOCATED WITHIN THE
26
GEOGRAPHICAL BOUNDARIES OF THE EDUCATION DISTRICT, AND ALL SCHOOL
27
BUILDINGS OF A SCHOOL DISTRICT, OR ANY PUBLIC SCHOOL ACADEMY
28
LOCATED IN THAT SCHOOL DISTRICT, WITH A CONTIGUOUS BOUNDARY LINE

______'15
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83
WITH THE EDUCATION DISTRICT AND WHOSE PUPIL MEMBERSHIP COUNT AFTER
THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SECTION,
AS OF THE MOST RECENT PUPIL MEMBERSHIP COUNT, INCLUDES MORE THAN
FIFTY PERCENT OF ITS PUPILS WHO ARE RESIDENTS OF THE EDUCATION
SCHOOL DISTRICT. A SCHOOL DISTRICT THAT HAS A CONTIGUOUS BOUNDARY
LINE WITH THE EDUCATION DISTRICT, AND THAT INCLUDES MORE THAN FIFTY
PERCENT OF ITS PUPILS RESIDING IN THE EDUCATION DISTRICT, IS
SUBJECT TO THE EMPOWERMENT ZONE ACCOUNTABILITY PLAN BUT IS NOT
SUBJECT TO CLOSE AND REPLACE BY THE EDUCATION MANAGER FOR THE
10
11
EMPOWERMENT ZONE.
(B) FOR AN EMPOWERED DISTRICT THAT IS NOT AN EDUCATION
12
DISTRICT, ALL SCHOOL BUILDINGS OF THAT EMPOWERED DISTRICT, ALL
13
SCHOOL BUILDINGS OF ANY PUBLIC SCHOOL ACADEMIES LOCATED WITHIN THE
14
GEOGRAPHICAL BOUNDARIES OF THE EMPOWERED DISTRICT, AND ALL SCHOOL
15
BUILDINGS OF ANOTHER SCHOOL DISTRICT, OR ANY PUBLIC SCHOOL ACADEMY
16
LOCATED IN THAT OTHER SCHOOL DISTRICT, THAT HAS A CONTIGUOUS
17
BOUNDARY LINE WITH THE EMPOWERED DISTRICT AND WHOSE PUPIL
18
MEMBERSHIP COUNT AFTER THE EFFECTIVE DATE OF THE AMENDATORY ACT
19
THAT ADDED THIS SECTION, AS OF THE MOST RECENT PUPIL MEMBERSHIP
20
COUNT, INCLUDES MORE THAN FIFTY PERCENT OF ITS PUPILS WHO ARE
21
RESIDENTS OF THE EMPOWERED DISTRICT. A SCHOOL DISTRICT THAT HAS A
22
CONTIGUOUS BOUNDARY LINE WITH THE EMPOWERED DISTRICT SHALL, AND
23
THAT INCLUDES MORE THAN FIFTY PERCENT OF ITS PUPILS RESIDING IN THE
24
EMPOWERED DISTRICT, IS SUBJECT TO THE EMPOWERMENT ZONE
25
ACCOUNTABILITY PLAN BUT IS NOT SUBJECT TO CLOSE AND REPLACE BY THE
26
EDUCATION MANAGER.
27
28
(C) A SCHOOL BUILDING OCCUPIED BY THE EDUCATION ACHIEVEMENT

AUTHORITY, AND ANY SCHOOL BUILDING OCCUPIED BY A PUBLIC SCHOOL
______'15
____
84
ACADEMY AUTHORIZED BY THE EDUCATIONAL ACHIEVEMENT AUTHORITY, IS A
SEC. 774. A EMPOWERMENT ZONE IS A BODY CORPORATE GOVERNED BY A
BOARD, TO BE KNOWN AS "THE LOCAL EDUCATION COMMISSION OF THE
____________ SCHOOL EMPOWERMENT ZONE," AND UNDER THAT NAME MAY SUE
AND BE SUED.
SEC. 775. (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A
EMPOWERMENT ZONE SHALL BE UNDER THE SUPERVISION AND CONTROL OF A
LOCAL EDUCATION COMMISSION COMPOSED OF 5 MEMBERS APPOINTED UNDER
10
THIS PART AND THE EDUCATION MANAGER FOR THE EMPOWERMENT ZONE WHO
11
SHALL SERVE AS AN EX OFFICIO, NO-VOTING MEMBER OF THE LOCAL
12
13
(2) WITHIN 30 DAYS OF THE ISSUANCE OF THE CREATION OF A
14
EMPOWERMENT ZONE, THE MAYOR OF THE LARGEST CITY WITHIN THE
15
EMPOWERMENT ZONE SHALL APPOINT 2 MEMBERS OF THE LOCAL EDUCATION
16
COMMISSION FOR THE EMPOWERMENT ZONE AND THE GOVERNOR SHALL APPOINT
17
3 MEMBERS. OF THE INITIAL APPOINTMENTS, UNDER THIS SUBSECTION, 1
18
MEMBER APPOINTED BY THE MAYOR SHALL BE APPOINTED FOR A TERM OF 3
19
YEARS, 1 MEMBER APPOINTED BY THE MAYOR SHALL BE APPOINTED FOR A
20
TERM OF 2 YEARS, 1 MEMBER APPOINTED BY THE GOVERNOR SHALL BE
21
APPOINTED FOR A TERM OF 2 YEARS, 1 MEMBER APPOINTED BY THE GOVERNOR
22
SHALL BE APPOINTED FOR A TERM OF 3 YEARS, AND 1 MEMBER APPOINTED BY
23
THE GOVERNOR SHALL BE APPOINTED FOR A TERM OF 4 YEARS. AFTER THE
24
EXPIRATION OF THE INITIAL TERMS, MEMBERS SHALL BE APPOINTED FOR A
25
TERM OF 4 YEARS. A VACANCY IN THE OFFICE OF A MEMBER OF A LOCAL
26
EDUCATION COMMISSION SHALL BE FILLED IN THE SAME MANNER AS THE
27
ORIGINAL APPOINTMENT WITHIN 30 DAYS OF THE VACANCY. A VACANCY
28
ARISING BEFORE THE END OF A TERM SHALL BE FILLED FOR THE BALANCE OF
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____
85
THE UNEXPIRED TERM. NOTWITHSTANDING ANY CONTRACT, BYLAW, CHARTER OR
ORDINANCE, AN APPOINTMENT BY A MAYOR UNDER THIS SUBSECTION IS NOT
SUBJECT TO APPROVAL OR DISAPPROVAL BY ANY OTHER PUBLIC BODY OR
OFFICER. IF A MAYOR FAILS TO MAKE AN APPOINTMENT WITHIN THE TIME
REQUIRED UNDER THIS SUBSECTION, THE GOVERNOR SHALL INSTEAD MAKE THE
APPOINTMENT.
(4) A LOCAL EDUCATION COMMISSION MEMBER IS A PUBLIC OFFICER
AND SHALL, BEFORE ENTERING UPON THE DUTIES OF THE OFFICE, TAKE THE
CONSTITUTIONAL OATH OF OFFICE FOR PUBLIC OFFICERS UNDER SECTION 1
10
11
12
13
OF ARTICLE XI OF THE STATE CONSTITUTION OF 1963.

(5) A MEMBER OF A LOCAL EDUCATION COMMISSION MAY ADMINISTER
OATHS FOR QUALIFYING BOARD MEMBERS.
SEC. 776. (1) SUBJECT TO SUBSECTIONS (2),(3) AND (4), ANY
14
INDIVIDUAL RESIDING IN THE EMPOWERMENT ZONE IS ELIGIBLE FOR
15
APPOINTMENT TO MEMBERSHIP ON THE LOCAL EDUCATION COMMISSION.
16
(2) A MEMBER OF THE BOARD OF AN SCHOOL DISTRICT, INTERMEDIATE
17
SCHOOL DISTRICT, OR PUBLIC SCHOOL ACADEMY IS INELIGIBLE TO SERVE AS
18
A MEMBER OF THE LOCAL EDUCATION COMMISSION.
19
(3) A MEMBER OF THE GOVERNING BOARD OR ANY OTHER OFFICER OR
20
EMPLOYEE OF A COUNTY, CITY, TOWNSHIP, OR VILLAGE LOCATED WITHIN THE
21
EMPOWERMENT ZONE IS INELIGIBLE TO SERVE AS A MEMBER OF THE LOCAL
22
23
(4) THE GOVERNOR MAY APPOINT AN INDIVIDUAL AS A MEMBER OF A
24
LOCAL EDUCATION COMMISSION WHO DOES NOT RESIDE IN THE EMPOWERMENT
25
ZONE IF THAT PERSON IS A RESIDENT OF THIS STATE.
26
27
SEC. 777. (1) A LOCAL EDUCATION COMMISSION SHALL MEET NOT LESS
THAN ANNUALLY. THE FIRST ORGANIZATIONAL MEETING OF A LOCAL
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86
EDUCATION COMMISSION SHALL BE HELD WITHIN 30 DAYS AFTER THE LAST
APPOINTMENT OF A MEMBER UNDER SECTION 775.
(2) A NEWLY-FORMED LOCAL EDUCATION COMMISSION SHALL ORGANIZE
ITSELF BY ELECTING A CHAIRPERSON, A VICE-CHAIRPERSON, A SECRETARY,
AND A TREASURER. UNTIL JULY 1, 2017, THE CHAIRPERSON AND VICE-
CHAIRPERSON SHALL BE DESIGNATED BY THE MAYOR OF THE LARGEST CITY
WITHIN THE EMPOWERMENT ZONE, BUT THE SECRETARY AND TREASURER SHALL
BE SELECTED BY THE LOCAL EDUCATION COMMISSION. IF THE MAYOR FAILS
TO DESIGNATE A CHAIRPERSON OR A VICE-CHAIRPERSON, THE CHAIRPERSON
10
11
AND VICE-CHAIRPERSON SHALL BE DESIGNATED BY THE GOVERNOR.

(3) THE OFFICERS OF A LOCAL EDUCATION COMMISSION SHALL PERFORM
12
DUTIES PROVIDED BY LAW AND PRESCRIBED BY THE POLICIES AND
13
REGULATIONS OF THE LOCAL EDUCATION COMMISSION NOT INCONSISTENT WITH
14
THIS PART OR OTHER LAWS OF THIS STATE.
15
SEC. 778. (1) THE GOVERNOR MAY REMOVE ANY MEMBER OF A LOCAL
16
EDUCATION COMMISSION FROM OFFICE FOR GROSS NEGLECT OF DUTY, CORRUPT
17
CONDUCT IN OFFICE, OR ANY OTHER MISFEASANCE OR MALFEASANCE IN
18
OFFICE.
19
(2) A PERSON REMOVED FROM OFFICE UNDER THIS SECTION IS NOT
20
ELIGIBLE FOR APPOINTMENT TO A PUBLIC SCHOOL BOARD FOR A PERIOD OF 3
21
YEARS FROM THE DATE OF REMOVAL.
22
SEC. 779. (1) A LOCAL EDUCATION COMMISSION MEMBER SHALL SERVE
23
ON A VOLUNTARY BASIS AND RECEIVE NO COMPENSATION FOR THEIR SERVICE
24
AS A LOCAL EDUCATION COMMISSION MEMBER, BUT MAY BE REIMBURSED FOR
25
REASONABLE EXPENSES.
26
(2) A EMPOWERMENT ZONE AND ITS BOARD MEMBERS, OFFICERS,
27
EMPLOYEES, AND VOLUNTEERS HAVE GOVERNMENTAL IMMUNITY AS PROVIDED IN
28
SECTION 7 OF 1964 PA 170, MCL 691.1407. A EMPOWERMENT ZONE AND ITS

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BOARD MEMBERS, OFFICERS, AND EMPLOYEES ARE IMMUNE FROM CIVIL
LIABILITY, BOTH PERSONALLY AND PROFESSIONALLY, FOR AN ACT OR
OMISSION IN CARRYING OUT THE FUNCTIONS OF A EMPOWERMENT ZONE IF THE
EMPOWERMENT ZONE OR THE PERSON ACTED OR REASONABLY BELIEVED HE OR
SHE ACTED WITHIN THE EMPOWERMENT ZONE'S OR THE PERSON'S SCOPE OF
AUTHORITY.
SEC. 780. A EMPOWERMENT ZONE IS EXEMPT FROM ALL TAXATION ON
ITS EARNINGS AND PROPERTY. INSTRUMENTS OF CONVEYANCE TO OR FROM A
EMPOWERMENT ZONE ARE EXEMPT FROM ALL TAXATION INCLUDING TAXES
10
IMPOSED BY 1966 PA 134, MCL 207.501 TO 207.513. UNLESS THE PROPERTY
11
IS ALREADY FULLY EXEMPT FROM REAL AND PERSONAL PROPERTY TAXES UNDER
12
THE GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.1 TO 211.155,
13
PROPERTY OCCUPIED BY A EMPOWERMENT ZONE AND USED EXCLUSIVELY FOR
14
EDUCATIONAL PURPOSES IS EXEMPT FROM REAL AND PERSONAL PROPERTY
15
TAXES LEVIED FOR SCHOOL OPERATING PURPOSES UNDER SECTION 1211, TO
16
THE EXTENT EXEMPTED UNDER THAT SECTION, AND FROM REAL AND PERSONAL
17
PROPERTY TAXES LEVIED UNDER THE STATE EDUCATION TAX ACT, 1993 PA
18
331, MCL 211.901 TO 211.906. A EMPOWERMENT ZONE MAY NOT LEVY AD
19
VALOREM PROPERTY TAXES OR ANOTHER TAX FOR ANY PURPOSE. HOWEVER,
20
OPERATION OF AN EMPOWERMENT ZONE DOES NOT AFFECT THE ABILITY OF ANY
21
SCHOOL DISTRICT OR INTERMEDIATE SCHOOL DISTRICT TO LEVY AD VALOREM
22
PROPERTY TAXES OR ANOTHER TAX.
23
SEC 781. (1) THE LOCAL EDUCATION COMMISSION SHALL SELECT
24
FINANCIAL INSTITUTIONS FOR THE DEPOSIT OF SCHOOL FUNDS. THE LOCAL
25
EDUCATION COMMISSION SHALL KEEP A SET OF CODED ACCOUNTS TO BE
26
APPROVED BY THE SUPERINTENDENT OF PUBLIC INSTRUCTION AND SHALL HAVE
27
ITS BOOKS AUDITED AT LEAST ANNUALLY BY A CERTIFIED PUBLIC
28
ACCOUNTANT.
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(2) THE TREASURER OF A EMPOWERMENT ZONE, IF AUTHORIZED BY
RESOLUTION OF THE LOCAL EDUCATION COMMISSION, MAY INVEST FUNDS
THROUGH A FINANCIAL INSTITUTION THAT IS NOT INELIGIBLE TO BE A
DEPOSITORY OF SURPLUS FUNDS BELONGING TO THIS STATE UNDER SECTION 6
OF 1855 PA 105, MCL 21.146.
(3) AS USED IN THIS SECTION, "FINANCIAL INSTITUTION" MEANS A
STATE OR NATIONALLY CHARTERED BANK OR A STATE OR FEDERALLY
CHARTERED SAVINGS AND LOAN ASSOCIATION, SAVINGS BANK, OR CREDIT
UNION WHOSE DEPOSITS ARE INSURED BY AN AGENCY OF THE UNITED STATES
10
GOVERNMENT AND THAT MAINTAINS A PRINCIPAL OFFICE OR BRANCH OFFICE
11
LOCATED IN THIS STATE UNDER THE LAWS OF THIS STATE OR THE UNITED
12
STATES.
13
14
SEC. 782. A EMPOWERMENT ZONE AND ITS LOCAL EDUCATION

COMMISSION SHALL COMPLY WITH ALL OF THE FOLLOWING:
15
(A) THE OPEN MEETINGS ACT, 1976 PA 267, MCL 15.261 TO 15.275.
16
(B) THE FREEDOM OF INFORMATION ACT, 1976 PA 442, MCL 15.231 TO
17
15.246.
18
(C) 1947 PA 336, MCL 423.201 TO 423.217.
19
(D) 1968 PA 2, MCL 141.421 TO 141.1440A.
20
(E) SECTIONS 1263(3), 1267, AND 1274.
21
SEC 783. (1) UPON DESIGNATION OF A EMPOWERMENT ZONE, A
22
EMPOWERMENT ZONE SCHOOL SHALL AUTOMATICALLY BE SUBJECT TO THE
23
FOLLOWING:
24
(A) THE ZONE ACCOUNTABILITY PLAN.
25
(B) THE ZONE FACILITIES PLAN.
26
(C) THE ZONE ENROLLMENT PLAN.
27
(2) UPON DESIGNATION OF A EMPOWERMENT ZONE, AND TO FOCUS
28
ATTENTION OF A EMPOWERMENT ZONE SCHOOL ON THE CONTINUED IMPROVEMENT

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OF THE EDUCATIONAL PROGRAM AT THE SCHOOL, THE SUPERINTENDENT OF
PUBLIC INSTRUCTION SHALL, EXCEPT FOR ANY REQUIREMENT PROVIDED FOR
IN THIS PART OR SUBSECTION (3), WAIVE ANY OTHERWISE APPLICABLE
REQUIREMENT PLACED ON A EMPOWERMENT ZONE SCHOOL UNDER THIS ACT OR
THE STATE SCHOOL AID ACT OF 1979, OR OF A RULE PROMULGATED UNDER
THIS ACT OR THE STATE SCHOOL AID ACT OF 1979.
(3) THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL NOT WAIVE
THE REQUIREMENTS SET FORTH IN SECTIONS 1134, 1135, 1137, 1137A,
1138, 1139, 1146, 1153, 1230 TO 1230H, 1263(3), 1267, 1274, 1278 TO
10
1278B, 1280C, 1285A, 1306, 1309 TO 1311A, 1312, 1317, 1535A, AND
11
1539B OF THIS ACT.
12
(4) IN EXCHANGE FOR PROVIDING EMPOWERMENT ZONE SCHOOLS WITH
13
ADMINISTRATIVE, EVALUATION, AND TECHNICAL ASSISTANCE, A EMPOWERMENT
14
ZONE SHALL, TO THE EXTENT PERMITTED UNDER APPLICABLE FEDERAL LAW,
15
BE ENTITLED TO RECEIVE 1 PERCENT OF THE TITLE I, PART A FUNDING
16
ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS WHICH SHALL BE
17
PAID BY THE STATE FROM THE DEPARTMENT'S PORTION OF THE STATE
18
EDUCATIONAL AGENCY ADMINISTRATIVE COSTS FOR TITLE I, PART A UP TO
19
AN AMOUNT EQUAL TO 1 PERCENT OF THE TOTAL STATE SCHOOL AID RECEIVED
20
BY ALL EMPOWERMENT ZONE SCHOOLS LOCATED WITHIN A EMPOWERMENT ZONE.
21
(5) IF THE ASSESSMENT OF 1 PERCENT OF THE TITLE I, PART A
22
FUNDING ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS IS LESS
23
THAN 1 PERCENT OF THE TOTAL STATE SCHOOL AID RECEIVED BY
24
EMPOWERMENT ZONE SCHOOLS IN ANY GIVEN YEAR, THEN EACH EMPOWERMENT
25
ZONE SCHOOL SHALL PAY THE REMAINING AMOUNT TO THE EMPOWERMENT ZONE
26
ON A PRO RATA BASIS BASED ON THE TOTAL NUMBER OF PUPILS ENROLLED AT
27
THE EMPOWERMENT ZONE SCHOOL IN THE PRIOR SCHOOL FISCAL YEAR, AS
28
DETERMINED BY THE STATE BUDGET DIRECTOR. ON AN ANNUAL BASIS, THE

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STATE BUDGET DIRECTOR SHALL DETERMINE THE DIFFERENCE BETWEEN TITLE
I, PART A FUNDING ALLOCATED AND AWARDED TO EMPOWERMENT ZONE SCHOOLS
AND 1% OF THE TOTAL STATE SCHOOL AID FUNDS RECEIVED BY EMPOWERMENT
ZONE SCHOOLS AND SHALL REPORT SUCH AMOUNT TO THE STATE TREASURER.
THE STATE TREASURER IS AUTHORIZED TO DIRECTLY INTERCEPT THE
DIFFERENCE FROM THE STATE SCHOOL AID FUNDS ATTRIBUTABLE TO EACH
EMPOWERMENT ZONE SCHOOL, AND SHALL FORWARD SUCH FUNDS TO THE
EMPOWERMENT ZONE IN ACCORDANCE WITH THE PAYMENT SCHEDULE OF STATE
SCHOOL AID FUNDS.
10
SEC. 784. (1) IF A EMPOWERMENT ZONE SCHOOL HAS OPERATED FOR AT
11
LEAST 4 YEARS AND IS LISTED ON THE LOWEST ACHIEVING SCHOOLS LIST
12
ISSUED UNDER SECTION 1280C FOR 3 CONSECUTIVE YEARS, AND THE
13
EMPOWERMENT ZONE SCHOOL HAS NOT BEEN RECONSTITUTED BY ITS
14
AUTHORIZING BODY, IF APPLICABLE, THEN THE EMPOWERMENT ZONE SCHOOL
15
SHALL, SUBJECT TO SUBSECTION (3), BE CLOSED AT THE END OF THE
16
CURRENT SCHOOL FISCAL YEAR.
17
(2) BY SEPTEMBER 1 OF EACH YEAR, THE EDUCATION MANAGER SHALL
18
PROVIDE THE STATE SCHOOL REFORM/REDESIGN OFFICE WITH A LIST OF
19
EMPOWERMENT ZONE SCHOOLS THAT HAVE RECEIVED A LETTER GRADE OF "D"
20
FOR 3 CONSECUTIVE YEARS, AS DEFINED IN THE EMPOWERMENT ZONE'S
21
ACCOUNTABILITY PLAN. UPON RECEIPT, THE STATE SCHOOL REFORM/
22
REDESIGN OFFICE SHALL INCLUDE THESE EMPOWERMENT ZONE SCHOOLS ON THE
23
LIST OF SCHOOLS SUBJECT TO CLOSURE UNDER SUBSECTION (3).
24
(3) BY OCTOBER 1 OF EACH YEAR, THE STATE SCHOOL
25
REFORM/REDESIGN OFFICE SHALL PREPARE AND PUBLISH A LIST OF
26
EMPOWERMENT ZONE SCHOOLS SUBJECT TO CLOSURE UNDER THIS SECTION. THE
27
LIST SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE
______'15
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91
AND SHALL BE PROVIDED TO EACH EDUCATION MANAGER WHERE A EMPOWERMENT
ZONE SCHOOL IS SUBJECT TO CLOSURE.
(4) WITHIN 30 DAYS OF THE PUBLICATION OF THE STATE SCHOOL
REFORM/REDESIGN OFFICE'S LIST OF EMPOWERMENT ZONE SCHOOL CLOSURES,
THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL ISSUE AN ORDER
SUBJECTING EACH EMPOWERMENT ZONE SCHOOL ON THE LIST TO CLOSURE AT
THE END OF THE CURRENT SCHOOL FISCAL YEAR.
8
9
(5) UPON ISSUANCE OF THE SUPERINTENDENT'S CLOSURE ORDER, THE

EDUCATION MANAGER SHALL INITIATE A PROCESS TO EVALUATE WHETHER THE
10
EMPOWERMENT ZONE SCHOOL THAT IS SUBJECT TO CLOSURE SHOULD BE
11
RECONSTITUTED. ALL OF THE FOLLOWING APPLY TO THE RECONSTITUTE
12
REQUEST FOR PROPOSAL PROCESS:
13
14
15
(A) THE EDUCATION MANAGER MAY ISSUE A REQUEST FOR PROPOSAL TO

RECONSTITUTE THE EMPOWERMENT ZONE SCHOOL.
(B) IF THE EDUCATION MANAGER IDENTIFIES AN OPERATOR FOR THE
16
EMPOWERMENT ZONE SCHOOL, THE EDUCATION MANAGER MAY SELECT THE
17
OPERATOR FOR THE EMPOWERMENT ZONE SCHOOL COMMENCING AT THE
18
BEGINNING OF THE NEXT SCHOOL FISCAL YEAR.
19
(C) THE EDUCATION MANAGER SHALL NEGOTIATE A CONTRACT WITH AN
20
OPERATOR FOR THE EMPOWERMENT ZONE SCHOOL. THE CONTRACT SHALL
21
INCLUDE AGREEMENT BY THE OPERATOR TO COMPLY WITH THE ZONE
22
ACCOUNTABILITY PLAN AND OTHER PLANS ADOPTED BY THE EDUCATION
23
MANAGER.
24
(D) IF AN EDUCATION MANAGER ELECTS NOT TO RECONSTITUTE THE
25
EMPOWERMENT ZONE SCHOOL, THEN THE SUPERINTENDENT'S CLOSURE ORDER
26
SHALL TAKE EFFECT.
27
28
(E) THE EDUCATION MANAGER SHALL ACT IN PLACE AND STEAD OF THE
EMPOWERMENT ZONE SCHOOL BOARD FOR THE PURPOSE OF RECONSTITUTING THE
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92
SCHOOL. THE EMPOWERMENT ZONE SCHOOL BOARD SHALL CONTINUE TO OPERATE
THE SCHOOL FOR THE REMAINDER OF THE SCHOOL YEAR FOLLOWING ISSUANCE
OF THE SUPERINTENDENT'S CLOSURE ORDER.
(6) FOR A EMPOWERMENT ZONE SCHOOL LISTED ON THE
SUPERINTENDENT'S CLOSURE ORDER, THE EMPOWERMENT ZONE SCHOOL BOARD
SHALL DO ALL OF THE FOLLOWING:
(A) CONTINUE DELIVERY OF EDUCATIONAL SERVICES TO THE
EMPOWERMENT ZONE SCHOOL FOR THE REMAINDER OF THE SCHOOL FISCAL
YEAR.
10
11
(B) COOPERATE WITH THE EDUCATION MANAGER IN THE RECONSTITUTION

OF THE EMPOWERMENT ZONE SCHOOL.
12
(C) CONSIDER SUBMITTING A PROPOSAL IN RESPONSE TO ANY
13
EDUCATION MANAGER'S REQUEST FOR PROPOSALS OFFERING TO PROVIDE A
14
DIFFERENT EDUCATIONAL, ADMINISTRATIVE AND INSTRUCTIONAL STAFFING
15
MODELS AT THE SCHOOL BUILDING. THE EDUCATION MANAGER SHALL CONSIDER
16
THE EMPOWERMENT ZONE SCHOOL BOARD'S PROPOSAL ALONG WITH OTHER
17
SUBMITTED PROPOSALS.
18
(D) TAKE THE NECESSARY STEPS TO FACILITATE THE RECONSTITUTION
19
PROCESS INCLUDING, BUT NOT LIMITED TO, THE ORDERLY TRANSFER OF
20
FINANCIAL, PUPIL AND EDUCATIONAL RECORDS TO A NEW OPERATOR, IF
21
APPLICABLE.
22
(7) SUBJECT TO SUBSECTION (8), THE EDUCATION MANAGER MAY
23
CONTRACT WITH AN AUTHORIZING BODY TO ASSIST THE EDUCATION MANAGER
24
IN ADMINISTERING A RECONSTITUTE REQUEST FOR PROPOSAL. SELECTION OF
25
ANY PROPOSAL SHALL BE MADE BY THE EDUCATION MANAGER.
26
(8) IF AN ACCREDITATION SYSTEM IS IMPLEMENTED FOR AUTHORIZING
27
BODIES UNDER THIS ACT, THEN AN EDUCATION MANAGER MAY ONLY CONTRACT
28
WITH AUTHORIZING BODIES THAT ARE ACCREDITED.

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SEC. 785. (1) IF AN EDUCATION MANAGER DOES NOT RECONSTITUTE A
EMPOWERMENT ZONE SCHOOL AND A SUPERINTENDENT CLOSURE ORDER ISSUED
UNDER SECTION 784 TAKES EFFECT, THEN ALL OF THE FOLLOWING SHALL
OCCUR:
(A) THE SCHOOL BUILDING THAT WAS SUBJECT TO THE
SUPERINTENDENT'S CLOSURE ORDER SHALL AUTOMATICALLY BE CLOSED AND
MADE AVAILABLE FOR USE BY ANOTHER PUBLIC SCHOOL, AS DETERMINED BY
THE EDUCATION MANAGER.
(B) IN ACCORDANCE WITH THE ZONE ACCOUNTABILITY PLAN AND ZONE
10
FACILITIES PLAN, THE EDUCATION MANAGER SHALL ISSUE REQUEST FOR
11
PROPOSALS TO REMOVE AND REPLACE.
12
(C) UPON CLOSURE, ALL POSITIONS AT THE SCHOOL BUILDING SHALL
13
IMMEDIATELY BE ABOLISHED WITH NOTICES ISSUED AS REQUIRED BY THE
14
APPLICABLE COLLECTIVE BARGAINING AGREEMENTS. THE INDIVIDUALS
15
SUBJECT TO THE POSITION ABOLISHMENT SHALL BE ENTITLED TO EXERCISE
16
SUCH BUMPING AND SENIORITY RIGHTS AS PERMITTED BY THE APPLICABLE
17
COLLECTIVE BARGAINING AGREEMENTS.
18
(D) A PERSON WHOSE POSITION HAS BEEN ABOLISHED BY THE BUILDING
19
CLOSURE MAY APPLY FOR A NEWLY CREATED POSITION WITH THE NEW PUBLIC
20
SCHOOL SELECTED AS PART OF THE REMOVE AND REPLACE PROCESS.
21
(E) A PUBLIC SCHOOL SELECTED BY THE EDUCATION MANAGER AS PART
22
OF A REMOVE AND REPLACE PROCESS IS NOT CONSIDERED TO BE THE
23
SUCCESSOR EMPLOYER TO ANY EXISTING COLLECTIVE BARGAINING AGREEMENT
24
AND IS NOT SUBJECT TO ANY COLLECTIVE BARGAINING AGREEMENT THAT
25
APPLIED TO THE EMPOWERMENT ZONE SCHOOL BUILDING THAT WAS CLOSED.
26
ANY NEW PUBLIC SCHOOL SELECTED BY THE EMPOWERMENT ZONE EDUCATIONAL
27
MANAGER SHALL NOT BE DEEMED A SUCCESSOR EMPLOYER FOR ANY PURPOSE
28
FOR ANY EMPLOYEES WHO WORKED AT THE EMPOWERMENT ZONE SCHOOL

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BUILDING THAT WAS CLOSED. ANY RIGHTS AND OBLIGATIONS UNDER EXISTING
COLLECTIVE BARGAINING AGREEMENTS ENTERED INTO BY A EMPOWERMENT ZONE
SCHOOL THAT INCLUDED THE SCHOOL BUILDING THAT WAS CLOSED SHALL
REMAIN THE SOLE RESPONSIBILITY OF THAT EMPOWERMENT ZONE SCHOOL.
(F) ANY CONTRACT OR PORTION OF A CONTRACT ENTERED INTO BY A
EMPOWERMENT ZONE SCHOOL THAT APPLIED TO A CLOSED SCHOOL BUILDING,
INCLUDING, BUT NOT LIMITED TO COLLECTIVE BARGAINING AGREEMENTS,
SHALL NO LONGER APPLY TO THAT BUILDING BUT SHALL REMAIN AN
OBLIGATION OF THE EMPOWERMENT ZONE SCHOOL SUBJECT TO THE
10
SUPERINTENDENT'S CLOSURE ORDER. HOWEVER, THIS SUBSECTION DOES NOT
11
ALLOW ANY TERMINATION OR DIMINISHMENT OF A VALID LEASE AGREEMENT,
12
OR OBLIGATIONS TO PAY DEBT SERVICE ON LEGALLY AUTHORIZED CONTRACTS
13
ENTERED INTO BY THE EMPOWERMENT ZONE SCHOOL BOARD. A CONTRACT
14
TERMINATED BY THE CLOSURE OF A EMPOWERMENT ZONE SCHOOL BUILDING
15
UNDER THIS SUBSECTION IS VOID.
16
(2) ANY NEW OR EXISTING PUBLIC SCHOOL LOCATED IN THE
17
EMPOWERMENT ZONE IS ELIGIBLE TO SUBMIT A REMOVE AND REPLACE
18
PROPOSAL. FOR NEW OR EXISTING PUBLIC SCHOOL ACADEMIES, AN
19
AUTHORIZING BODY SHALL SUBMIT THE PROPOSAL TO THE EDUCATION
20
MANAGER.
21
(3) IF THE EDUCATION MANAGER SELECTS A REMOVE AND REPLACE
22
PROPOSAL, THE PUBLIC SCHOOL IDENTIFIED IN THE PROPOSAL SHALL
23
COMMENCE OPERATIONS AT THE SCHOOL BUILDING AT THE BEGINNING OF THE
24
NEXT SCHOOL FISCAL YEAR. THE SELECTED PUBLIC SCHOOL MAY EXERCISE
25
ALL THE POWERS AND DUTIES OTHERWISE VESTED BY LAW IN THE
26
EMPOWERMENT ZONE SCHOOL BOARD THAT PREVIOUSLY USED THE SCHOOL
27
BUILDING PLACED IN THE EMPOWERMENT ZONE AND IN ITS OFFICERS, EXCEPT
28
THOSE RELATING TO TAXATION OR BORROWING, AND MAY EXERCISE ALL

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95
ADDITIONAL POWERS AND DUTIES PROVIDED UNDER THIS SECTION; AND,
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE PUBLIC SCHOOL
IDENTIFIED IN THE PROPOSAL ACCEDES TO ALL THE RIGHTS, DUTIES, AND
OBLIGATIONS OF THE EMPOWERMENT ZONE SCHOOL BOARD WITH RESPECT TO
THAT SCHOOL BUILDING. THESE POWERS, RIGHTS, DUTIES, AND OBLIGATIONS
INCLUDE, BUT ARE NOT LIMITED TO, ALL OF THE FOLLOWING:
(A) AUTHORITY OVER THE EXPENDITURE OF ALL FUNDS ATTRIBUTABLE
TO PUPILS AT THAT SCHOOL, INCLUDING THAT PORTION OF PROCEEDS FROM
BONDED INDEBTEDNESS AND OTHER FUNDS DEDICATED TO CAPITAL PROJECTS,
10
THAT WOULD OTHERWISE BE APPORTIONED TO THAT SCHOOL BY THE
11
EMPOWERMENT ZONE SCHOOL BOARD THAT PREVIOUSLY USED THE SCHOOL
12
ACCORDING TO THE TERMS OF THE BOND ISSUE OR FINANCING DOCUMENTS.
13
14
(B) ASSIGNMENT OF ANY LEASE AGREEMENT WITH A THIRD PARTY FOR

THE USE OF THE SCHOOL BUILDING.
15
16
(C) RIGHTS TO PROSECUTE AND DEFEND LITIGATION RELATED TO THE

SCHOOL BUILDING AND PUPILS AT THAT SCHOOL.
17
18
19
(D) RIGHTS AND OBLIGATIONS UNDER STATUTE, RULE, AND COMMON

LAW.
(E) AUTHORITY TO DELEGATE ANY OF THE PUBLIC SCHOOL'S POWERS
20
AND DUTIES TO 1 OR MORE DESIGNEES, WITH PROPER SUPERVISION BY THE
21
SELECTED PUBLIC SCHOOL'S GOVERNING BOARD.
22
SEC 786. (1) THE LOCAL EDUCATION COMMISSION FOR A EMPOWERMENT
23
ZONE SHALL IDENTIFY AND SELECT AN EDUCATION MANAGER CANDIDATE FOR
24
APPOINTMENT AND EMPLOYMENT BY THE EMPOWERMENT ZONE. A CANDIDATE
25
SHALL BE SELECTED ON THE BASIS OF HIS OR HER DEMONSTRATED ABILITY
26
OF COMPETENCE, EXPERIENCE IN INCREASING ACADEMIC ACHIEVEMENT IN
27
SCHOOLS OR SCHOOL SYSTEMS, EDUCATIONAL REFORM AND REDESIGN
28
EXPERIENCE, DEMONSTRATED ABILITY TO MAKE EVIDENCE BASED DECISIONS

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REGARDING THE OPENING, CLOSING AND RECONSTITUTION OF PUBLIC
SCHOOLS, AND EXPERTISE IN THE TURN AROUND OF ACADEMICALLY FAILING
PUBLIC SCHOOLS. THE EMPLOYMENT AGREEMENT SHALL INCLUDE THE PROPOSED
TERMS AND CONDITIONS OF EMPLOYMENT, INCLUDING PROPOSED SALARY AND
BENEFITS WHICH ARE TO BE PAID BY THE EMPOWERMENT ZONE.
(2) IF A LOCAL EDUCATION COMMISSION TERMINATES AN EDUCATION
MANAGER, THE LOCAL EDUCATION COMMISSION SHALL IDENTIFY AND SELECT A
SUCCESSOR EDUCATION MANAGER IN ACCORDANCE WITH THIS SECTION.
SEC. 787. (1) THE EDUCATION MANAGER SHALL BE THE CHIEF
10
EXECUTIVE OFFICER AND SUPERINTENDENT OF THE EMPOWERMENT ZONE AND
11
SHALL BE RESPONSIBLE FOR ALL OF THE FOLLOWING:
12
(A) DEVELOPING AND IMPLEMENTING A ZONE ACCOUNTABILITY PLAN FOR
13
ALL EMPOWERMENT ZONE SCHOOLS. IN DEVELOPING THE ZONE ACCOUNTABILITY
14
PLAN, THE EDUCATION MANAGER SHALL CONSULT WITH EXPERTS, INCLUDING
15
PSYCHOMETRICIANS, KNOWLEDGEABLE IN THE DESIGN OF SCHOOL
16
ACCOUNTABILITY SYSTEMS. THE STATE SCHOOL REFORM/REDESIGN OFFICER
17
SHALL REVIEW AND APPROVE THE INITIAL ZONE ACCOUNTABILITY PLAN FOR A
18
EMPOWERMENT ZONE WITHIN 45 DAYS AFTER SUBMISSION BY THE EDUCATION
19
MANAGER. THE EDUCATION MANAGER MAY AMEND THE ZONE ACCOUNTABILITY
20
PLAN AT ANYTIME. IF THE EDUCATION MANAGER AMENDS THE ZONE
21
ACCOUNTABILITY PLAN, THE AMENDED PLAN SHALL BE APPROVED BY THE
22
STATE SCHOOL REFORM/REDESIGN OFFICER BEFORE IT TAKES EFFECT. IF THE
23
STATE SCHOOL REFORM/REDESIGN OFFICER DOES NOT APPROVE THE AMENDED
24
PLAN WITHIN 45 DAYS FOLLOWING SUBMISSION, THEN THE LAST APPROVED
25
ZONE ACCOUNTABILITY PLAN SHALL REMAIN IN EFFECT UNTIL THE AMENDED
26
PLAN IS APPROVED BY THE STATE SCHOOL REFORM/REDESIGN OFFICER. A
27
ZONE ACCOUNTABILITY PLAN SHALL INCLUDE THE FOLLOWING ELEMENTS:
______'15
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97
(i) STUDENT PERFORMANCE STANDARDS THAT ARE NO LESS STRINGENT
THAN THE STATE'S ACCOUNTABILITY PLAN, WHICH MUST INCLUDE ACADEMIC
MEASUREMENTS TO ASSESS STUDENT GROWTH AND PROFICIENCY FOR THE
SCHOOL AND SUBGROUPS AT THE SCHOOL. NOT MORE THAN 10 PERCENT OF THE
SCORE FOR ANY SCHOOL MAY INCLUDE NON-ACADEMIC FACTORS FOR THAT
SCHOOL.
(ii) AN A-F LETTER GRADING SYSTEM, WITH AN "A" SCHOOL BEING
PART OF THE DEFINITION OF AS A HIGH-PERFORMING SCHOOL, AN "F"
SCHOOL BEING DEFINED AS A SCHOOL THAT IS ON THE LOWEST ACHIEVING
10
SCHOOLS LIST UNDER SECTION 1280C, AND THAT UTILIZES INDIVIDUAL
11
STUDENT GROWTH, AS MEASURED IN YEARS OF ACADEMIC PROGRESS, AS BEING
12
AT LEAST 33% BUT NOT MORE THAN 50% OF A SCHOOL'S OVERALL GRADE
13
CALCULATION.
14
(iii) IF THE LEGISLATURE ADOPTS A LETTER GRADING SYSTEM FOR ALL
15
PUBLIC SCHOOLS IN THIS STATE, THE EDUCATION MANAGER SHALL ADOPT THE
16
STATE'S LETTER GRADING SYSTEM AS PART OF THE ZONE ACCOUNTABILITY
17
PLAN.
18
(B) DEVELOPING AND IMPLEMENTING THE ZONE FACILITIES PLAN FOR
19
THE EMPOWERMENT ZONE. IF THE EMPOWERED DISTRICT IS LOCATED WITHIN
20
THE GEOGRAPHICAL BOUNDARIES OF ONE OR MORE CITIES, THE EDUCATION
21
MANAGER SHALL DEVELOP THE ZONE FACILITIES PLAN IN COORDINATION WITH
22
ANY MASTER FACILITIES PLAN DEVELOPED FOR THE LARGEST CITY LOCATED
23
WITHIN THE EMPOWERMENT ZONE.
24
25
26
27
(C) DEVELOPING AND IMPLEMENTING A ZONE ENROLLMENT PLAN FOR ALL

EMPOWERMENT ZONE SCHOOLS THAT MEETS ALL OF THE FOLLOWING:
(i) THE ZONE ENROLLMENT PLAN SHALL APPLY ONLY TO PROSPECTIVE
ADMISSIONS AND ENROLLMENTS AT A EMPOWERMENT ZONE SCHOOL, AND SHALL
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NOT AFFECT THE ENROLLMENT OF ANY PUPIL ALREADY ENROLLED AT A
(ii) THE ZONE ENROLLMENT PLAN SHALL NOT DISCRIMINATE IN ITS
PUPIL ADMISSIONS POLICIES OR PRACTICES ON THE BASIS OF INTELLECTUAL
OR ATHLETIC ABILITY, MEASURES OF ACHIEVEMENT OR APTITUDE, STATUS AS
A STUDENT WITH A DISABILITY, OR ANY OTHER BASIS THAT WOULD BE
ILLEGAL IF USED BY ANY OTHER PUBLIC SCHOOL.
8
9
(iii) THE ZONE ENROLLMENT PLAN SHALL ALLOW ANY PUPIL WHO WAS
ENROLLED IN A EMPOWERMENT ZONE SCHOOL IN THE IMMEDIATELY PRECEDING
10
SCHOOL YEAR TO ENROLL IN THE SAME EMPOWERMENT ZONE SCHOOL IN THE
11
APPROPRIATE GRADE UNLESS THE APPROPRIATE GRADE IS NOT OFFERED AT
12
THE SCHOOL.
13
14
(iv) THE ZONE ENROLLMENT PLAN SHALL RECOGNIZE ANY EXISTING

ENROLLMENT PREFERENCE PERMITTED UNDER THIS ACT.
15
(v) THE ZONE ENROLLMENT PLAN SHALL TREAT PROSPECTIVE PUPILS
16
SEEKING TO ATTEND AND PUPILS ATTENDING EMPOWERMENT ZONE SCHOOLS,
17
FAIRLY AND EQUALLY, AND SHALL NOT FAVOR ONE PUPIL OVER ANOTHER
18
PUPIL, OR DISADVANTAGE OR DISCRIMINATE AGAINST ANY PUPIL.
19
(vi) IF MORE PUPILS APPLY TO ENROLL IN A EMPOWERMENT ZONE
20
SCHOOL THAN THERE ARE SPACES AVAILABLE, THE ZONE ENROLLMENT PLAN
21
SHALL USE A RANDOM SELECTION PROCESS TO DETERMINE ADMISSIONS.
22
(vii) THE ZONE ENROLLMENT PLAN SHALL GRANT EACH PARENT OR LEGAL
23
GUARDIAN OF A PUPIL THEIR FIRST SCHOOL CHOICE EXCEPT IN THE CASE OF
24
ENROLLMENT OVERCAPACITY AT THAT SCHOOL. IF THE RANDOM SELECTION
25
PROCESS RESULTS IN A PUPIL'S PARENT OR LEGAL GUARDIAN NOT BEING
26
ABLE TO ENROLL THE PUPIL IN THEIR FIRST SCHOOL CHOICE, THEN THE
27
PUPIL SHALL BE GRANTED ADMISSION INTO THE PARENT'S OR LEGAL
28
GUARDIAN'S SECOND CHOICE EXCEPT IN THE CASE OF ENROLLMENT

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99
OVERCAPACITY AT THAT SCHOOL. THE ZONE ENROLLMENT PLAN SHALL PROVIDE
FOR AN ENROLLMENT PROCESS THAT CONTINUES UNTIL ALL PUPILS HAVE BEEN
ENROLLED IN A SCHOOL CHOSEN BY THEIR PARENT OR LEGAL GUARDIAN.
(viii) THE ZONE ENROLLMENT PLAN SHALL NOT TREAT PUPILS,
DISTRICTS, PROVIDERS OF EDUCATIONAL SERVICES, OR SCHOOLS
INEQUITABLY IN ANY FASHION, INCLUDING BUT NOT LIMITED TO UTILIZING
BALANCING, WEIGHTING, OR QUOTAS OTHER THAN ENROLLMENT CAPACITY.
8
9
10
11
12
13
14
15
16
17
18
19
(ix) THE ZONE ENROLLMENT PLAN SHALL NOT LIMIT A EMPOWERMENT

ZONE SCHOOL'S ABILITY TO MARKET OR ADVERTISE FOR PROSPECTIVE
PUPILS.
(D) DETERMINE WHETHER A EMPOWERMENT ZONE SCHOOL MEETS THE
DEFINITION OF A HIGH-PERFORMING SCHOOL UNDER THIS ACT.
(E) DETERMINE WHETHER A EMPOWERMENT ZONE SCHOOL IS BEING
REPLICATED AS A HIGH-PERFORMING SCHOOL.
(F) DETERMINE WHETHER TO RECONSTITUTE A EMPOWERMENT ZONE
SCHOOL.
(G) DETERMINE WHETHER TO REMOVE AND REPLACE A EMPOWERMENT ZONE
SCHOOL.
(H) DETERMINE, IN ACCORDANCE WITH THE ZONE FACILITIES PLAN,
20
WHETHER A SCHOOL BUILDING MADE AVAILABLE FOR USE BY THE EDUCATION
21
MANAGER UNDER THIS ACT, SHOULD BE REMOVED AND REPLACED.
22
(2) THE EDUCATION MANAGER MAY PERFORM OTHER DUTIES PRESCRIBED
23
UNDER THIS ACT, MAKE REGULAR REPORTS TO AND AS REQUESTED BY THE
24
LOCAL EDUCATION COMMISSION, AND AT THE CLOSE OF HIS OR HER TERM OF
25
OFFICE DELIVER ALL RECORDS, BOOKS, AND PAPERS BELONGING TO THE
26
OFFICE TO THE EDUCATION MANAGERS SUCCESSOR.
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100
(3) THE EDUCATION MANAGER MAY MAKE WRITTEN REPORTS TO THE
BOARDS OF EMPOWERMENT ZONE SCHOOLS AND AUTHORIZING BODIES IN REGARD
TO MATTERS PERTAINING TO THE EMPOWERMENT ZONE.
(4) ON AN ANNUAL BASIS, THE EDUCATION MANAGER SHALL BE
EVALUATED BY THE LOCAL EDUCATION COMMISSION. THE EVALUATION
CRITERIA SHALL BE DETERMINED BY THE LOCAL EDUCATION COMMISSION AND
SHALL, AT A MINIMUM, INCLUDE THE INCREASING PROPORTION OF PUPILS IN
THE EMPOWERMENT ZONE WHO ACHIEVE SCORES EQUIVALENT TO PROFICIENCY
OR HIGHER ON ASSESSMENTS, THE REDUCING PROPORTION OF PUPILS IN THE
10
EMPOWERMENT ZONE WHO ATTEND SCHOOLS THAT RECEIVE A LETTER GRADE OF
11
"D" OR LOWER, AND THE INCREASING PROPORTION OF PUPILS IN THE
12
EMPOWERMENT ZONE SCHOOL DISTRICT WHO ATTEND SCHOOLS THAT RECEIVE A
13
LETTER GRADE OF "B" OR HIGHER.
14
SEC. 778. (1) A EMPOWERMENT ZONE MAY BORROW, SUBJECT TO THE
15
REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO
16
141.2821, SUMS OF MONEY ON TERMS THE LOCAL EDUCATION COMMISSION
17
CONSIDERS NECESSARY FOR 1 OR MORE OF THE FOLLOWING PURPOSES:
18
(A) FOR TEMPORARY PURPOSES FOR WHICH THE LOCAL EDUCATION
19
COMMISSION MAY GIVE NOTES OF THE EMPOWERMENT ZONE IN ACCORDANCE
20
WITH SECTION 1225.
21
(B) TO PURCHASE SITES FOR BUILDINGS; TO PURCHASE, ERECT,
22
COMPLETE, REMODEL, IMPROVE, FURNISH, REFURNISH, EQUIP, OR REEQUIP
23
BUILDINGS AND FACILITIES THE BOARD IS AUTHORIZED TO ACQUIRE,
24
INCLUDING, BUT NOT LIMITED TO, GENERAL ADMINISTRATIVE, VOCATIONAL,
25
OR SPECIAL EDUCATION BUILDINGS OR FACILITIES, OR PARTS OF THOSE
26
BUILDINGS OR FACILITIES, OR ADDITIONS TO THOSE BUILDINGS OR
27
FACILITIES, AND PREPARE, DEVELOP, OR IMPROVE SITES FOR THOSE
28
BUILDINGS OR FACILITIES; TO PURCHASE AND INSTALL INFORMATION

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101
TECHNOLOGY SYSTEMS, TOGETHER WITH THE EQUIPMENT AND SOFTWARE, AS
ARE NECESSARY FOR PROGRAMS CONDUCTED BY THE EMPOWERMENT ZONE; AND
TO ISSUE AND SELL BONDS OF THE EMPOWERMENT ZONE IN THE FORM AND ON
THE TERMS THE BOARD CONSIDERS ADVISABLE.
SEC. 791. WITHIN SIX MONTHS OF ITS FIRST MEETING, A LOCAL
EDUCATION COMMISSION SHALL ADOPT AND IMPLEMENT A CONFLICT OF
INTEREST POLICY DESIGNED TO AVOID CONFLICTS OF INTEREST BY
EMPOWERMENT ZONE OFFICIALS AND EMPLOYEES. A LOCAL EDUCATION
COMMISSION'S CONFLICT OF INTEREST POLICY SHALL COMPLY WITH 1968 PA
10
11
317, MCL 15.321 TO 15.330.

SEC. 792. (1) NOTWITHSTANDING ANY OTHER PROVISIONS IN THIS
12
ACT, THE STATE SCHOOL REFORM/REDESIGN OFFICER SHALL NOT ISSUE AN
13
ORDER PLACING ANY EMPOWERMENT ZONE SCHOOL UNDER THE SUPERVISION OF
14
THE STATE SCHOOL REFORM/REDESIGN OFFICE FOR TWO YEARS AFTER A
15
EMPOWERMENT ZONE IS CREATED.
16
(2) IF AN EDUCATION MANAGER RECONSTITUTES A EMPOWERMENT ZONE
17
SCHOOL, AND THE EMPOWERMENT ZONE SCHOOL REMAINS ON THE CLOSURE LIST
18
UNDER SECTION 784 FOR 2 CONSECUTIVE YEARS AFTER RECONSTITUTION,
19
THEN STATE SCHOOL REFORM/REDESIGN OFFICER SHALL HAVE THE AUTHORITY
20
TO ISSUE AN ORDER PLACING THE EMPOWERMENT ZONE SCHOOL WITHIN THE
21
STATE SCHOOL REFORM/REDESIGN DISTRICT.
22
(3) IF AN EDUCATION MANAGER ELECTS TO REMOVE AND REPLACE A
23
SCHOOL BUILDING IN THE EMPOWERMENT ZONE, AND THE EMPOWERMENT ZONE
24
SCHOOL REMAINS ON THE CLOSURE LIST UNDER SECTION 784 FOR 4
25
CONSECUTIVE YEARS AFTER BEING REMOVED AND REPLACED, THEN THE STATE
26
SCHOOL REFORM/ REDESIGN OFFICER SHALL HAVE THE AUTHORITY TO ISSUE
27
AN ORDER PLACING THE EMPOWERMENT ZONE SCHOOL WITHIN THE STATE
28
SCHOOL REFORM/REDESIGN DISTRICT.

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DRAFT 1 07/16/2015

DRAFT BILL No. ____

DRAFT BILL No. _____

A bill to amend 1976 PA 451, entitled

DRAFT BILL No. ____

2011 PA 232, section 7 as amended by 2007 PA 45, section 11a as

Sec. 4. (1) "EDUCATION DISTRICT" MEANS A SCHOOL DISTRICT

(2) "EDUCATION MANAGER" MEANS AN EDUCATION MANAGER APPOINTED

an intermediate school district and approved by the state board

SUPERINTENDENT OF PUBLIC INSTRUCTION that provides services to

local school districts or constituent districts under section 671.

(4) "EMPOWERED DISTRICT" MEANS AN EDUCATION DISTRICT OR A

OF DIRECTORS OF A PUBLIC SCHOOL THAT OCCUPIES A SCHOOL BUILDING

LOCATED WITHIN A SCHOOL EMPOWERMENT ZONE.

(8) "HIGH-PERFORMING SCHOOL" MEANS A PUBLIC SCHOOL BUILDING

(i) IS LOCATED IN AN EMPOWERMENT ZONE.

(ii) FOR A BUILDING THAT INCLUDES PUPILS IN SOME CONFIGURATION

OF GRADES BETWEEN KINDERGARTEN AND 12TH GRADE, 80 PERCENT OR MORE

OF THE PUPILS RECEIVED A SCORE OF PROFICIENT OR BETTER ON THE

MICHIGAN STUDENT TEST OF EDUCATIONAL PROGRESS (M-STEP) MATHEMATICS

AND READING TESTS OR ANY SUCCESSOR STATE ASSESSMENT.

(iii) FOR A BUILDING THAT INCLUDES PUPILS IN GRADES 9 TO 12, 80%

OR MORE OF THE PUPILS IN THE PRIOR YEAR FOR WHICH IS DATA IS

AVAILABLE HAVE GONE ON TO A PUBLIC OR PRIVATE UNIVERSITY, A

COMMUNITY COLLEGE, AN APPRENTICE OR SKILLED TRADES PROGRAM,

MILITARY SERVICE, OR ANY OTHER TRAINING PROGRAM THAT RESULTS IN A

MARKETABLE LABOR CERTIFICATE UPON COMPLETION, AS DETERMINED BY THE

EDUCATION MANAGER FOR THE BUILDING.

(iv) HAS 70 PERCENT OR MORE OF PUPILS THAT MEET THE INCOME

ELIGIBILITY CRITERIA FOR THE FEDERAL FREE OR REDUCED-PRICE LUNCH

PROGRAM, AS DETERMINED UNDER THE RICHARD B. RUSSELL NATIONAL SCHOOL

LUNCH ACT, 42 USC 1751 TO 1769I, BASED UPON INFORMATION REPORTED TO

(v) PARTICIPATES IN A ZONE ENROLLMENT PLAN UNDER PART 7C.

(9) (2) "Intermediate school board" means the board of an

intermediate school district.

election called by an intermediate school board and held on the

date of the regular school elections of constituent districts or on

a date determined by the intermediate school board under section

642c of the Michigan election law, MCL 168.642c.

(12) (5) "Intermediate school elector" means a person who is a

school elector of a constituent district and who is registered in

the city or township in which the person resides.

(13) (6) "Intermediate superintendent" means the

district" means a district governed by a special or local act or

chapter of a local act. "Local school district" and "local school

district board" as used in article 3 include a local act school

district and a local act school district board.

(2) "LOCAL EDUCATION COMMISSION" MEANS THE BOARD OF AN

pupils in a public school as determined by the number of pupils

registered for attendance plus pupils received by transfer and

minus pupils lost as defined by rules promulgated by the state

boardSUPERINTENDENT OF PUBLIC INSTRUCTION.

(4) (3) "Michigan election law" means the Michigan election

CORPORATION, LABOR ORGANIZATION, OR ANY OTHER ASSOCIATION,

CORPORATION, TRUST, OR OTHER LEGAL ENTITY, INCLUDING AN EDUCATIONAL

MANAGEMENT ORGANIZATION UNDER SECTIONS 503, 523C AND 553C, THAT

CONTRACTS WITH A PUBLIC SCHOOL ACADEMY OR EMPOWERMENT ZONE SCHOOL,

AS APPLICABLE, TO MANAGE OR PROVIDE EDUCATIONAL SERVICES TO THE

PUBLIC SCHOOL ACADEMY OR EMPOWERMENT ZONE SCHOOL.

(8) (6) "Public school" means a public elementary or secondary

educational entity or agency that is established under this act OR

and learning of academic and vocational-technical skills and

knowledge, and is operated by a school district, local act school

district, special act school district, intermediate school