Bill Summary – FastDemocracy

HOUSE BILL NO. 5992
     September 26, 2024, Introduced by Reps. Thompson, Jaime Greene, BeGole, Bierlein, Rigas,
        Beson, Cavitt, Hoadley and Markkanen and referred to the Committee on Education.
          A bill to amend 1976 PA 451, entitled
    "The revised school code,"
    by amending sections 502, 503, 522, 552, and 1279g (MCL 380.502,
503, 380.522, 380.552, and 380.1279g), sections 502, 503, 522,
    and 552 as amended by 2023 PA 34 and section 1279g as amended by
PA 170.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 502. (1) A public school academy must be organized and
 administered under the direction of a board of directors in
 accordance with this part and with bylaws adopted by the board of
 directors. A public school academy corporation must be organized
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 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 must not be organized
 by a church or other religious organization and must not have any
 organizational or contractual affiliation with or constitute a
 church or other religious organization.
       (2) Subject to subsection (9), any of the following may act as
 an authorizing body to issue a contract to organize and operate 1
 or more public school academies under this part:
       (a) The board of a school district. However, the board of a
 school district shall not issue a contract for a public school
 academy to operate outside the school district's boundaries, and a
 public school academy authorized by the board of a school district
 shall not operate outside that school district's boundaries.
       (b) An intermediate school board. However, the board of an
 intermediate school district shall not issue a contract for a
 public school academy to operate outside the intermediate school
 district's boundaries, and a public school academy authorized by
 the board of an intermediate school district shall not operate
 outside that intermediate school district's boundaries.
       (c) The board of a community college. However, except as
 otherwise provided in this subdivision, the board of a community
 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
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 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
 college district. The board of a community college also may issue a
 contract for not more than 1 public school academy to operate on
 the grounds of an active or closed federal military installation
 located outside the boundaries of the community college district,
 or may operate a public school academy itself on the grounds of
 such a federal military installation, if the federal military
 installation is not located within the boundaries of any community
 college district and the community college has previously offered
 courses on the grounds of the federal military installation for at
 least 10 years.
       (d) The governing board of a state public university. There is
 no limit on the combined total number of contracts for public
 school academies that may be issued by all state public
 universities.
       (e) Two or more of the public agencies described in
 subdivisions (a) to (d) exercising power, privilege, or authority
 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
 must 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
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 under section 503(5), a list of the proposed members of the board
 of directors of the public school academy and a description of the
 qualifications and method for appointment or election of members of
 the board of directors.
       (c) The proposed articles of incorporation, which must include
 at least all of the following:
       (i) The name of the proposed public school academy.
       (ii) The purposes for the public school academy corporation.
 This language must provide that the public school academy is
 incorporated under this part and that the public school academy
 corporation is a governmental entity.
       (iii) The name of the authorizing body.
       (iv) The proposed time when the articles of incorporation will
 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.
       (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 must 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 must be assessed using both
 the mathematics and reading portions of the Michigan student test
 of educational progress (M-STEP) or, if the public school academy
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 is enrolled in a pilot program under section 104d of the state
 school aid act of 1979, MCL 388.1704d, a state-administered
 assessment system described in section 104d of the state school aid
 act of 1979, MCL 388.1704d, or the Michigan merit examination under
 section 1279g, as applicable.
       (iii) The admission policy and criteria to be maintained by the
 public school academy. The admission policy and criteria must
 comply with section 504. This part of the application also must
 include a description of how the applicant will provide to the
 general public adequate notice that a public school academy is
 being created and adequate information on the admission policy,
 criteria, and process.
       (iv) The school calendar and school day schedule.
       (v) The age or grade range of pupils to be enrolled.
       (f) Descriptions of staff responsibilities and of the public
 school academy's governance structure.
       (g) For an application to the board of a school district, an
 intermediate school board, or board of a community college,
 identification of the local and intermediate school districts in
 which the public school academy will be located.
       (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.
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       (4) An authorizing body shall oversee, or shall contract with
 an intermediate school district, community college, or state public
 university to oversee, each public school academy 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
 relieve any other government entity of its enforcement or
 supervisory responsibility.
       (5) If the superintendent of public instruction finds that an
 authorizing body is not engaging in appropriate continuing
 oversight of 1 or more public school academies operating under a
 contract issued by the authorizing body, the superintendent of
 public instruction may suspend the power of the authorizing body to
 issue new contracts to organize and operate public school
 academies. A contract issued by the authorizing body during the
 suspension is void. A contract issued by the authorizing body
 before the suspension is not affected by the suspension.
       (6) An authorizing body shall not charge a fee, or require
 reimbursement of expenses, for considering an application for a
 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 is presumed to be legally
 organized if it has exercised the franchises and privileges of a
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 public school academy for at least 2 years.
        (8) An authorizing body may enter into an intergovernmental
 agreement with another authorizing body to issue public school
 academy contracts. At a minimum, the agreement must further the
 purposes set forth in section 501, describe which authorizing body
 shall issue the contract, and set forth which authorizing body will
 be responsible for monitoring compliance by the board of directors
 of the public school academy with the contract and all applicable
 law.
        (9) Both of the following apply to the issuance of a contract
 for a public school academy to be located within a community
 district:
        (a) An authorizing body shall not issue a contract to organize
 and operate a new public school academy to be located in a
 community district unless, before issuing the contract, the
 governing board of the authorizing body has certified to the
 department that the authorizing body has been accredited as an
 authorizing body by a nationally recognized accreditation body. For
 an authorizing body described in subsection (2)(e), the authorizing
 body shall not issue a contract to organize and operate a new
 public school academy to be located in a community district unless,
 before issuing the contract, the governing board of each of the
 public agencies that is party to the interlocal agreement has
 certified to the department that the public agency has been
 accredited as an authorizing body by a nationally recognized
 accreditation body.
        (b) An authorizing body shall not issue a contract for a new
 public school academy to be located in a community district if both
 of the following circumstances exist:
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       (i) Either of the following:
       (A) The proposed public school academy would operate at the
 same location as a public school that currently is on the list
 under federal accountability requirements as provided under the
 every student succeeds act, Public Law 114-95, of the public
 schools in this state determined to be among the lowest achieving
 5% of public schools in this state or has been on the list under
 federal accountability requirements as provided under the every
 student succeeds act, Public Law 114-95, of the public schools in
 this state determined to be among the lowest achieving 5% of public
 schools in this state during the immediately preceding 3-year
 period.
       (B) The proposed public school academy would operate at the
 same location as a public school academy, urban high school
 academy, school of excellence, or strict discipline academy that
 has had its contract revoked or terminated by an authorizing body
 under the applicable part or section.
       (ii) The proposed public school academy would have
 substantially the same board of directors, substantially the same
 leadership, and substantially the same curriculum offerings as the
 public school that previously operated at that location.
       Sec. 503. (1) An authorizing body is not required to issue a
 contract to any person or entity. Subject to subsection (2), public
 school academy contracts must be issued on a competitive basis. In
 deciding whether to issue a contract for a proposed public school
 academy, an authorizing body shall consider all of the following:
       (a) The resources available for the proposed public school
 academy.
       (b) The population to be served by the proposed public school
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 academy.
       (c) The educational goals to be achieved by the proposed
 public school academy.
       (d) The applicant's track record, if any, in organizing public
 school academies or other public schools.
       (e) The graduation rate of a school district in which the
 proposed public school academy is proposed to be located.
       (f) The population of a county in which the proposed public
 school academy is proposed to be located.
       (g) The number of schools in the proximity of a proposed
 location of the proposed public school academy that are on the list
 under federal accountability requirements as provided under the
 every student succeeds act, Public Law 114-95, of the public
 schools in this state determined to be among the lowest achieving
 5% of public schools in this state.
       (h) The number of pupils on waiting lists of public school
 academies in the proximity of a proposed location of the proposed
 public school academy.
       (2) An authorizing body may give priority to a proposed public
 school academy that is intended to replace a public school academy
 that has been closed pursuant to section 507(5), that will operate
 all of the same grade levels as the public school academy that has
 been closed, and that will work toward operating all of grades 9 to
 12 within 6 years after it begins operations unless a matriculation
 agreement has been entered into with another public school that
 provides grades 9 to 12.
       (3) If a person or entity applies to the board of a school
 district for a contract to organize and operate 1 or more public
 school academies within the boundaries of the school district and
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 the board does not issue the contract, the person or entity may
 petition the board to place the question of issuing the contract on
 the ballot to be decided by the school electors of the school
 district. The petition must contain all of the information required
 to be in the contract application under section 502 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 must be filed with the school
 district filing official. If the board receives a petition meeting
 the requirements of this subsection, the board shall have the
 question of issuing the contract placed on the ballot at its next
 regular school election held at least 60 days after receiving the
 petition. If a majority of the school electors of the school
 district voting on the question vote to issue the contract, the
 board shall issue the contract.
       (4) Within 10 days after issuing a contract for a public
 school academy, the authorizing body shall submit to the
 superintendent of public instruction a copy of the contract.
       (5) An authorizing body shall adopt a resolution establishing
 the method of selection, length of term, and number of members of
 the board of directors of each public school academy subject to its
 jurisdiction. The reso