SENATE BILL NO. 512
September 19, 2023, Introduced by Senators DALEY, MCBROOM, VICTORY, LAUWERS,
OUTMAN, JOHNSON, BELLINO, NESBITT, MCDONALD RIVET and DAMOOSE and
referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 15 and 163 (MCL 388.1615 and 388.1763),
section 15 as amended by 2022 PA 144 and section 163 as amended by
2021 PA 15.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 15. (1) If a district or intermediate district fails to
2 receive its proper apportionment, the department, upon satisfactory
3 proof that the district or intermediate district was entitled
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1 justly, shall apportion the deficiency in the next apportionment.
2 Subject to subsections (2) and (3), if a district or intermediate
3 district has received more than its proper apportionment, the
4 department, upon satisfactory proof, shall deduct the excess in the
5 next apportionment. Notwithstanding any other provision in this
6 article, state aid overpayments to a district, other than
7 overpayments in payments for special education or special education
8 transportation, may be recovered from any payment made under this
9 article other than a special education or special education
10 transportation payment, from the proceeds of a loan to the district
11 under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to
12 141.942, or from the proceeds of millage levied or pledged under
13 section 1211 of the revised school code, MCL 380.1211. State aid
14 overpayments made in special education or special education
15 transportation payments may be recovered from subsequent special
16 education or special education transportation payments, from the
17 proceeds of a loan to the district under the emergency municipal
18 loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds
19 of millage levied or pledged under section 1211 of the revised
20 school code, MCL 380.1211.
21 (2) If the result of an audit conducted by or for the
22 department affects the current fiscal year membership, the
23 department shall adjust affected payments in the current fiscal
24 year. A deduction due to an adjustment made as a result of an audit
25 conducted by or for the department, or as a result of information
26 obtained by the department from the district, an intermediate
27 district, the department of treasury, or the office of auditor
28 general, must be deducted from the district's apportionments when
29 the adjustment is finalized. At the request of the district and
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1 upon the district presenting evidence satisfactory to the
2 department of the hardship, the department may grant up to an
3 additional 4 years for the adjustment and may advance payments to
4 the district otherwise authorized under this article if the
5 district would otherwise experience a significant hardship in
6 satisfying its financial obligations. However, a district that
7 presented satisfactory evidence of hardship and was undergoing an
8 extended adjustment during 2018-2019 may continue to use the period
9 of extended adjustment as originally granted by the department.
10 (3) If, based on an audit by the department or the
11 department's designee or because of new or updated information
12 received by the department, the department determines that the
13 amount paid to a district or intermediate district under this
14 article for the current fiscal year or a prior fiscal year was
15 incorrect, the department shall make the appropriate deduction or
16 payment in the district's or intermediate district's allocation in
17 the next apportionment after the adjustment is finalized. The
18 department shall calculate the deduction or payment according to
19 the law in effect in the fiscal year in which the incorrect amount
20 was paid. If the district does not receive an allocation for the
21 fiscal year or if the allocation is not sufficient to pay the
22 amount of any deduction, the amount of any deduction otherwise
23 applicable must be satisfied from the proceeds of a loan to the
24 district under the emergency municipal loan act, 1980 PA 243, MCL
25 141.931 to 141.942, or from the proceeds of millage levied or
26 pledged under section 1211 of the revised school code, MCL
27 380.1211, as determined by the department.
28 (4) If the Before the effective date of the 2023 amendatory
29 act that amended this section, if the department makes an
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1 adjustment under this section based in whole or in part on a
2 membership audit finding that a district or intermediate district
3 employed an educator in violation of certification requirements
4 under the revised school code, and rules promulgated by the
5 department, the department shall prorate the adjustment according
6 to the period of noncompliance with the certification requirements.
7 On or after the effective date of the amendatory act that added
8 this sentence, the department shall not make an adjustment under
9 this section based in whole or in part on a membership audit
10 finding that a district or intermediate district employed an
11 educator in violation of this act, certification requirements under
12 the revised school code, or rules promulgated by the department.
13 The department shall credit a district or intermediate district
14 under section 163(6) for any adjustments made before the effective
15 date of the amendatory act that added this sentence under this
16 section based in whole or in part on a membership audit finding
17 that the district or intermediate district employed an educator in
18 violation of this act, certification requirements under the revised
19 school code, or rules promulgated by the department from July 1,
20 2020 through June 30, 2023 or the effective date of the amendatory
21 act that added this sentence, whichever occurs first.
22 (5) The department may conduct audits, or may direct audits by
23 designee of the department, for the current fiscal year and the
24 immediately preceding fiscal year of all records related to a
25 program for which a district or intermediate district has received
26 funds under this article.
27 (6) Expenditures made by the department under this article
28 that are caused by the write-off of prior year accruals may be
29 funded by revenue from the write-off of prior year accruals.
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1 (7) In addition to funds appropriated in section 11 for all
2 programs and services, there is appropriated for 2022-2023 for
3 obligations in excess of applicable appropriations an amount equal
4 to the collection of overpayments, but not to exceed amounts
5 available from overpayments.
6 Sec. 163. (1) Except as otherwise provided in the revised
7 school code, the board of a district or intermediate district shall
8 not permit any of the following:
9 (a) An individual who is not appropriately placed under a
10 valid certificate, valid substitute permit, authorization, or
11 approval issued under rules promulgated by the department to teach
12 in an elementary or secondary school.
13 (b) An individual who does not satisfy the requirements of
14 section 1233 of the revised school code, MCL 380.1233, and rules
15 promulgated by the department to provide school counselor services
16 to pupils in an elementary or secondary school.
17 (c) An individual who does not satisfy the requirements of
18 section 1246 of the revised school code, MCL 380.1246, or who is
19 not working under a valid substitute permit issued under rules
20 promulgated by the department, to be employed as a superintendent,
21 principal, or assistant principal, or as an individual whose
22 primary responsibility is to administer instructional programs in
23 an elementary or secondary school or in a district or intermediate
24 district.
25 (2) Except as otherwise provided in the revised school code,
26 this subsection, or subsection (4) or (7), a district or
27 intermediate district employing an individual in violation of this
28 section before July 1, 2021 must have deducted an amount equal to
29 the amount paid to the individual for the period of employment that
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1 is in violation of this section. Except as otherwise provided under
2 subsection (4) or (7), a district or intermediate district
3 employing an individual in violation of this section on or after
4 July 1, 2021 must have deducted an amount equal to 50% of the
5 amount paid to the individual for the period of employment that is
6 in violation of this section. Except as otherwise provided under
7 subsection (4) or (6), beginning July 1, 2021, if a district or
8 intermediate district is notified by the department that it is
9 employing employs an individual in violation of this section, and
10 it continues to employ the individual in violation of this section
11 10 business days after receiving the notification, both of the
12 following apply:all of the following apply:
13 (a) The district or intermediate district must have deducted
14 an amount equal to 50% of the amount paid to the individual for the
15 period of employment that is in violation of this section that
16 occurs before the expiration of the 10-day period described in this
17 subsection.
18 (b) The district or intermediate district must have deducted
19 an amount equal to 100% of the amount paid to the individual for
20 the period of employment that is in violation of this section that
21 occurs after the 10-day period described in this subsection.
22 (a) The district or intermediate district shall discontinue
23 its violation of this section not later than 10 school days after
24 discovering that the individual is employed in violation of this
25 section or not later than 10 school days after the department
26 informs the district or intermediate district that the individual
27 is employed in violation of this section, whichever occurs first.
28 (b) The district or intermediate district shall submit a
29 corrective action plan to the department, not later than 60 days
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1 after discovering that the individual is employed in violation of
2 this section or not later than 60 days after the department
3 notifies the district or intermediate district that the individual
4 is employed in violation of this section, whichever occurs first,
5 outlining steps the district or intermediate district is going to
6 take to ensure that individuals are not employed in violation of
7 this section.
8 (c) The district or intermediate district must have deducted
9 an amount equal to 100% of the amount paid to the individual for
10 the period of employment that is in violation of this section if
11 the superintendent of public instruction finds any of the
12 following:
13 (i) The district or intermediate district submitted a
14 corrective action plan to the department as described in
15 subdivision (b) within the last 3 years and subsequently employed
16 an individual in violation of this section.
17 (ii) The board or board of directors of the district or the
18 intermediate district board knowingly employed an individual in
19 violation of this section.
20 (iii) The district or intermediate district continued to employ
21 an individual in violation of this section for more than 10 school
22 days after discovering that the individual was employed in
23 violation of this section or being told by the department that the
24 individual was employed in violation of this section, whichever
25 occurs first.
26 (3) For purposes of subsection (2), if a district or
27 intermediate district on behalf of an individual or an individual
28 successfully completes the credential application process through
29 the department, including the submission of an appropriate
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1 application, required fees, and all required supporting
2 documentation, the individual's employment with the district or
3 intermediate district after this completion is not considered a
4 period of employment that is in violation of this section.
5 (4) A Subject to subsection (6), a deduction under subsection
6 (2) for employment in violation of this section that occurs on or
7 after July 1, 2021, may be less than the amount required under that
8 subsection if the superintendent of public instruction finds that
9 the district or intermediate district was hindered in its ability
10 to obtain a substitute credential to enable the district or
11 intermediate district to employ the individual in compliance with
12 this section due to because of unusual and extenuating
13 circumstances resulting from conditions not within the control of
14 school authorities, including, but not limited to, a natural
15 disaster, death or serious illness of the individual or another
16 employee, an emergency school closure, fraud or other intentional
17 wrongdoing of the individual or another employee, or an emergency
18 health condition as defined by city, county, or state health
19 authorities.
20 (5) For employment of an individual in violation of this
21 section that occurs on or after July 1, 2021, upon request by a
22 district or intermediate district, the department shall credit the
23 amount of an adjustment in payments under section 15 that is based
24 on the employment of the individual that gave rise to the deduction
25 under subsection (2) or (4) against the amount of the deduction
26 under subsection (2) or (4). The amount of the credit under this
27 subsection must not be in an amount that is greater than the
28 deduction assessed under subsection (2) or (4).
29 (5) (6) If a school official is notified by the department
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1 that he or she the school official is employing an individual in
2 violation of this section and knowingly continues to employ that
3 individual, the school official is guilty of a misdemeanor
4 punishable by a fine of $1,500.00 for each incidence. This penalty
5 is in addition to all other financial penalties otherwise specified
6 in this article.
7 (6) (7) There must be no deduction under subsection (2) or (4)
8 or any adjustment in payments under section 15 that is based on the
9 employment of the individual that gave rise to the deduction under
10 subsection (2) or (4) for a period of employment in violation of
11 this section that occurs between occurred after July 1, 2020 and
12 before June 30, 2021.2023 or the effective date of the amendatory
13 act that added subsection (2)(c), whichever occurs first. The
14 department shall credit a district or intermediate district for any
15 deductions under this section or adjustments under section 15 that
16 occurred before the effective date of the amendatory act that added
17 subsection (2)(c) and that are inconsistent with this subsection.
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Statutes affected:
Senate Introduced Bill: 388.1615, 388.1763