HB-4115, As Passed House, April 29, 2015

SUBSTITUTE FOR

HOUSE BILL NO. 4115

(as amended April 29, 2015)

[A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 8b, 11, 11a, 11j, 11k, 11m, 15, 18, 18a,

20, 20d, 20f, 21f, 22a, 22b, 22c, 22d, 22g, 23a, 24, 24a, 24c, 25f,

26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 43, 51a, 51c, 51d,

53a, 54, 56, 61a, 62, 74, 81, 94, 94a, 95a, 98, 99, 99b, 99h, 101,

104, 104b, 104c, 107, 147, 147a, 147c, 152a, 163, 201, 201a, 206, 207a,

207b, 207c, 209, 210, 210b, 213, 217, 222, 225, 226, 229, 229a,

230, 236, 236a, 236b, 236c, 241, 244, 246, 252, 256, 258, 263,

263a, 264, 265, 265a, 267, 268, 269, 270, 274, 276, 277, 278, 279,

280, 281, 282, 283, 284, and 286 (MCL 388.1606, 388.1608b,

388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1615,

388.1618, 388.1618a, 388.1620, 388.1620d, 388.1620f, 388.1621f,

388.1622a, 388.1622b, 388.1622c, 388.1622d, 388.1622g, 388.1623a,

House Bill No. 4115 as amended April 29, 2015

388.1624, 388.1624a, 388.1624c, 388.1625f, 388.1626a, 388.1626b,

388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p,

388.1639, 388.1639a, 388.1643, 388.1651a, 388.1651c, 388.1651d,

388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674,

388.1681, 388.1694, 388.1694a, 388.1695a, 388.1698, 388.1699,

388.1699b, 388.1699h, 388.1701, 388.1704, 388.1704b, 388.1704c, 388.1707,

388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1763, 388.1801,

388.1801a, 388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1809,

388.1810, 388.1810b, 388.1813, 388.1817, 388.1822, 388.1825,

388.1826, 388.1829, 388.1829a, 388.1830, 388.1836, 388.1836a,

388.1836b, 388.1836c, 388.1841, 388.1844, 388.1846, 388.1852,

388.1856, 388.1858, 388.1863, 388.1863a, 388.1864, 388.1865,

388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1874,

388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881,

388.1882, 388.1883, 388.1884, and 388.1886), sections 6, 8b, 11a,

11j, 11k, 15, 20, 20d, 20f, 21f, 22c, 22d, 22g, 24, 24a, 24c, 25f,

26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 51d, 53a, 54, 56,

61a, 62, 74, 81, 94, 94a, 98, 99, 99h, 101, 104, 104b, 107, 147, 147a,

152a, 163, 201a, 206, 209, 210b, 217, 225, 229, 229a, 230, 236a,

236b, 236c, 241, 246, 252, 256, 263, 263a, 264, 265, 265a, 267,

268, 269, 270, 274, 276, 277, 278, 279, 280, 281, 282, 283, and 284

as amended and sections 43, 95a, 99b, 104c, 207a, 207b, and 207c as

added by 2014 PA 196, sections 11, 11m, 18, 22a, 22b, 51a, 51c,

147c, 201, and 236 as amended by 2015 PA 5, section 18a as amended

by 2004 PA 351, section 23a as added by 2012 PA 465, sections 210,

244, and 258 as amended by 2013 PA 60, and sections 213, 222, 226,

and 286 as amended by 2012 PA 201, and by adding sections 55, 65,

House Bill No. 4115 as amended April 29, 2015

67, 99q, 99r, 99s, 210c, 215, 260, and 274c; and to repeal acts and

parts of acts.]

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 6. (1) "Center program" means a program operated by a

district or by an intermediate district for special education

pupils from several districts in programs for pupils with autism

spectrum disorder, pupils with severe cognitive impairment, pupils

with moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

district or shall serve several districts with less than 50% of the

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

disabilities education act, 20 USC 1412, may be considered center

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult education

participants, in the district for the immediately preceding school

year, adjusted for those pupils who have transferred into or out of

the district or high school, who leave high school with a diploma

or other credential of equal status.

(4) "Membership", except as otherwise provided in this

article, means for a district, a public school academy, the

education achievement system, or an intermediate district the sum

of the product of .90 times the number of full-time equated pupils

in grades K to 12 actually enrolled and in regular daily attendance

on the pupil membership count day for the current school year, plus

the product of .10 times the final audited count from the

supplemental count day for the current school year. A district's,

public school academy's, or intermediate district's membership

shall be adjusted as provided under section 25e for pupils who

enroll in the district, public school academy, or intermediate

district after the pupil membership count day. All pupil counts

used in this subsection are as determined by the department and

calculated by adding the number of pupils registered for attendance

plus pupils received by transfer and minus pupils lost as defined

by rules promulgated by the superintendent, and as corrected by a

subsequent department audit. For the purposes of this section and

section 6a, for a school of excellence that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551, and

is in compliance with section 553a of the revised school code, MCL

380.553a, a pupil's participation, as determined by the department

in accordance with the pupil accounting manual, in the cyber

school's educational program is considered regular daily

attendance; for the education achievement system, a pupil's

participation, as determined by the department in accordance with

the pupil accounting manual, in an online educational program of

the education achievement system or of an achievement school is

considered regular daily attendance; and for a district a pupil's

participation in an online course as defined in section 21f is

considered regular daily attendance. The amount of the foundation

allowance for a pupil in membership is determined under section 20.

In making the calculation of membership, all of the following, as

applicable, apply to determining the membership of a district, a

public school academy, the education achievement system, or an

intermediate district:

(a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan schools for the deaf and

blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a career and technical education

program supported by a millage levied over an area larger than a

single district or in an area vocational-technical education

program established pursuant to section 690 of the revised school

code, MCL 380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

(h) A pupil enrolled in an achievement school shall be counted

in membership in the education achievement system.

(i) For a new district or public school academy beginning its

operation after December 31, 1994, or for the education achievement

system or an achievement school, membership for the first 2 full or

partial fiscal years of operation shall be determined as follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) In a district, a public school academy, the education

achievement system, or an intermediate district operating an

extended school year program approved by the superintendent, a

pupil enrolled, but not scheduled to be in regular daily attendance

on a pupil membership count day, shall be counted.

(l) To be counted in membership, a pupil shall meet the

minimum age requirement to be eligible to attend school under

section 1147 of the revised school code, MCL 380.1147, or shall be

enrolled under subsection (3) of that section, and shall be less

than 20 years of age on September 1 of the school year except as

follows:

(i) A special education pupil who is enrolled and receiving

instruction in a special education program or service approved by

the department, who does not have a high school diploma, and who is

less than 26 years of age as of September 1 of the current school

year shall be counted in membership.

(ii) A pupil who is determined by the department to meet all

of the following may be counted in membership:

(A) Is enrolled in a public school academy or an alternative

education high school diploma program, that is primarily focused on

educating homeless pupils.

(B) Had dropped out of school for more than 1 year and has re-

entered school.

current school year.

(D) Is considered to be homeless under 42 USC 11302.

(iii) If a child does not meet the minimum age requirement to

be eligible to attend school for that school year under section

1147 of the revised school code, MCL 380.1147, but will be 5 years

of age not later than December 1 of that school year, the district

may count the child in membership for that school year if the

parent or legal guardian has notified the district in writing that

he or she intends to enroll the child in kindergarten for that

school year.

(m) An individual who has obtained a high school diploma shall

not be counted in membership. An individual who has obtained a

general educational development (G.E.D.) certificate shall not be

counted in membership unless the individual is a ~~pupil~~ student with

a disability as defined in R 340.1702 of the Michigan

administrative code. An individual participating in a job training

program funded under former section 107a or a jobs program funded

under former section 107b, administered by the Michigan strategic

fund, or participating in any successor of either of those 2

programs, shall not be counted in membership.

(n) If a pupil counted in membership in a public school

academy or the education achievement system is also educated by a

district or intermediate district as part of a cooperative

education program, the pupil shall be counted in membership only in

the public school academy or the education achievement system

unless a written agreement signed by all parties designates the

party or parties in which the pupil shall be counted in membership,

and the instructional time scheduled for the pupil in the district

or intermediate district shall be included in the full-time equated

membership determination under subdivision (q) and section 101.

However, for pupils receiving instruction in both a public school

academy or the education achievement system and in a district or

intermediate district but not as a part of a cooperative education

program, the following apply:

(i) If the public school academy or the education achievement

system provides instruction for at least 1/2 of the class hours

~~specified in subdivision (q),~~ required under section 101, the

public school academy or the education achievement system shall

receive as its prorated share of the full-time equated membership

for each of those pupils an amount equal to 1 times the product of

the hours of instruction the public school academy or the education

achievement system provides divided by the number of hours

~~specified in subdivision (q)~~ required under section 101 for full-

time equivalency, and the remainder of the full-time membership for

each of those pupils shall be allocated to the district or

intermediate district providing the remainder of the hours of

instruction.

(ii) If the public school academy or the education achievement

system provides instruction for less than 1/2 of the class hours

~~specified in subdivision (q),~~ required under section 101, the

district or intermediate district providing the remainder of the

hours of instruction shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the

district or intermediate district provides divided by the number of

hours ~~specified in subdivision (q)~~ required under section 101 for

full-time equivalency, and the remainder of the full-time

membership for each of those pupils shall be allocated to the

public school academy or the education achievement system.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section ~~101(3).~~ 101.

In determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

considered to be less than a full-time equated pupil solely because

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

(r) ~~Beginning in 2012-2013, full-time~~ Full-time equated

memberships for pupils in kindergarten shall be determined by

dividing the number of instructional hours scheduled and provided

per year per kindergarten pupil by the same number used for

determining full-time equated memberships for pupils in grades 1 to

12. However, to the extent allowable under federal law, for a

district or public school academy that provides evidence

satisfactory to the department that it used federal title I money

in the 2 immediately preceding school fiscal years to fund full-

time kindergarten, full-time equated memberships for pupils in

kindergarten shall be determined by dividing the number of class

hours scheduled and provided per year per kindergarten pupil by a

number equal to 1/2 the number used for determining full-time

equated memberships for pupils in grades 1 to 12. The change in the

counting of full-time equated memberships for pupils in

kindergarten that took effect for 2012-2013 is not a mandate.

(s) For a district, a public school academy, or the education

achievement system that has pupils enrolled in a grade level that

was not offered by the district, the public school academy, or the

education achievement system in the immediately preceding school

year, the number of pupils enrolled in that grade level to be

counted in membership is the average of the number of those pupils

enrolled and in regular daily attendance on the pupil membership

count day and the supplemental count day of the current school

year, as determined by the department. Membership shall be

calculated by adding the number of pupils registered for attendance

in that grade level on the pupil membership count day plus pupils

received by transfer and minus pupils lost as defined by rules

promulgated by the superintendent, and as corrected by subsequent

department audit, plus the final audited count from the

supplemental count day for the current school year, and dividing

that sum by 2.

(t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours ~~specified in subdivision (q)~~ required under section 101 for

full-time equivalency. For the purposes of this subdivision, a

district shall be considered to be providing appropriate

instruction if all of the following are met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies that are comparable to those otherwise provided in the

district's alternative education program.

(iii) Course content is comparable to that in the district's

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

or the education achievement system within 45 days after the pupil

membership count day, the department shall adjust the district's or

the education achievement system's pupil count for the pupil

membership count day to include the pupil in the count.

(w) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .90 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .10 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(x) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and if the district does not

receive funding under section 22d(2), the district's membership

shall be considered to be the membership figure calculated under

this subdivision. If a district educates and counts in its

membership pupils in grades 9 to 12 who reside in a contiguous

district that does not operate grades 9 to 12 and if 1 or both of

the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

number of pupils per square mile for each of the districts for the

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

(ii) The district's actual membership for that fiscal year as

otherwise calculated under this subsection.

(y) Full-time equated memberships for special education pupils

who are not enrolled in kindergarten but are enrolled in a

classroom program under R 340.1754 of the Michigan administrative

code shall be determined by dividing the number of class hours

scheduled and provided per year by 450. Full-time equated

memberships for special education pupils who are not enrolled in

kindergarten but are receiving early childhood special education

services under R 340.1755 or R 340.1862 of the Michigan

administrative code shall be determined by dividing the number of

hours of service scheduled and provided per year per-pupil by 180.

(z) A pupil of a district that begins its school year after

Labor ~~day~~ Day who is enrolled in an intermediate district program

that begins before Labor ~~day~~ Day shall not be considered to be less

than a full-time pupil solely due to instructional time scheduled

but not attended by the pupil before Labor ~~day.~~Day.

(aa) For the first year in which a pupil is counted in

membership on the pupil membership count day in a middle college

program, the membership is the average of the full-time equated

membership on the pupil membership count day and on the

supplemental count day for the current school year, as determined

by the department.

(bb) A district, a public school academy, or the education

achievement system that educates a pupil who attends a United

States Olympic ~~education center~~ Education Center may count the

pupil in membership regardless of whether or not the pupil is a

resident of this state.

(cc) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148, shall be counted in the educating

district or the education achievement system.

(dd) For a pupil enrolled in a dropout recovery program that

meets the requirements of section 23a, the pupil shall be counted

as 1/12 of a full-time equated membership for each month that the

district operating the program reports that the pupil was enrolled

in the program and was in full attendance. However, if the special

membership counting provisions under this subdivision and the

operation of the other membership counting provisions under this

subsection result in a pupil being counted as more than 1.0 FTE in

a fiscal year, the payment made for the pupil under sections 22a

and 22b shall not be based on more than 1.0 FTE for that pupil, and

any portion of an FTE for that pupil that exceeds 1.0 shall instead

be paid under section 25f. The district operating the program shall

report to the center the number of pupils who were enrolled in the

program and were in full attendance for a month not later than the

tenth day of the next month. A district shall not report a pupil as

being in full attendance for a month unless both of the following

are met:

(i) A personalized learning plan is in place on or before the

first school day of the month for the first month the pupil

participates in the program.

(ii) The pupil meets the district's definition under section

23a of satisfactory monthly progress for that month or, if the

pupil does not meet that definition of satisfactory monthly

progress for that month, the pupil did meet that definition of

satisfactory monthly progress in the immediately preceding month

and appropriate interventions are implemented within 10 school days

after it is determined that the pupil does not meet that definition

of satisfactory monthly progress.

(ee) A pupil participating in an online course under section

21f shall be counted in membership in the pupil's primary district,

as defined under section 21f.

(5) "Public school academy" means that term as defined in

section 5 of the revised school code, MCL 380.5.

(6) "Pupil" means a person in membership in a public school. A

district must have the approval of the pupil's district of

residence to count the pupil in membership, except approval by the

pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

education achievement system.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90h, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(i) A pupil enrolled in the Michigan virtual school, for the

pupil's enrollment in the Michigan virtual school.

(j) A pupil who is the child of a person who works at the

district or who is the child of a person who worked at the district

as of the time the pupil first enrolled in the district but who no

longer works at the district due to a workforce reduction. As used

in this subdivision, "child" includes an adopted child, stepchild,

or legal ward.

(k) An expelled pupil who has been denied reinstatement by the

expelling district and is reinstated by another school board under

section 1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a.

(l) A pupil enrolled in a district other than the pupil's

district of residence in a middle college program if the pupil's

district of residence and the enrolling district are both

constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil's

district of residence who attends a United States Olympic ~~education~~

~~center.~~Education Center.

(n) A pupil enrolled in a district other than the pupil's

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148.

(o) A pupil who enrolls in a district other than the pupil's

district of residence as a result of the pupil's school not making

adequate yearly progress under the no child left behind act of

2001, Public Law 107-110.

~~(p) An online learning pupil enrolled in a district other than~~

~~the pupil's district of residence as an eligible pupil under~~

~~section 21f.~~

However, if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

(7) "Pupil membership count day" of a district or intermediate

district means:

(a) Except as provided in subdivision (b), the first Wednesday

in October each school year or, for a district or building in which

school is not in session on that Wednesday due to conditions not

within the control of school authorities, with the approval of the

superintendent, the immediately following day on which school is in

session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) First Wednesday in October.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

day and who does not attend each of those classes during the 10

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, shall not be counted as 1.0 full-time

equated membership. A pupil who is excused from attendance on the

pupil membership count day or supplemental count day and who fails

to attend each of the classes in which the pupil is enrolled within

30 calendar days after the pupil membership count day or

supplemental count day shall not be counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, an intermediate district, a public school

academy, or the education achievement system before the pupil

membership count day or supplemental count day of a particular year

but was expelled or suspended on the pupil membership count day or

supplemental count day shall only be counted as 1.0 full-time

equated membership if the pupil resumed attendance in the district,

intermediate district, public school academy, or education

achievement system within 45 days after the pupil membership count

day or supplemental count day of that particular year. Pupils not

counted as 1.0 full-time equated membership due to an absence from

a class shall be counted as a prorated membership for the classes

the pupil attended. For purposes of this subsection, "class" means

a period of time in 1 day when pupils and a certificated teacher or

legally qualified substitute teacher are together and instruction

is taking place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to

380.1852.

(11) "School district of the first class", "first class school

district", and "district of the first class" mean, for the purposes

of this article only, a district that had at least 40,000 pupils in

membership for the immediately preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(13) "State board" means the state board of education.

(14) "Superintendent", unless the context clearly refers to a

district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(15) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(16) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged to the district of residence.

Tuition pupil does not include a pupil who is a special education

pupil, a pupil described in subsection (6)(c) to (p), or a pupil

whose parent or guardian voluntarily enrolls the pupil in a

district that is not the pupil's district of residence. A pupil's

district of residence shall not require a high school tuition

pupil, as provided under section 111, to attend another school

district after the pupil has been assigned to a school district.

(17) "State school aid fund" means the state school aid fund

established in section 11 of article IX of the state constitution

of 1963.

(18) "Taxable value" means the taxable value of property as

determined under section 27a of the general property tax act, 1893

PA 206, MCL 211.27a.

(19) "Textbook" means a book, electronic book, or other

instructional print or electronic resource that is selected and

approved by the governing board of a district or, for an

achievement school, by the chancellor of the achievement authority

and that contains a presentation of principles of a subject, or

that is a literary work relevant to the study of a subject required

for the use of classroom pupils, or another type of course material

that forms the basis of classroom instruction.

(20) "Total state aid" or "total state school aid" means the

total combined amount of all funds due to a district, intermediate

district, or other entity under all of the provisions of this

article.

Sec. 8b. (1) The department shall assign a district code to

each public school academy that is authorized under the revised

school code and is eligible to receive funding under this article

within 30 days after a contract is submitted to the department by

the authorizing body of a public school academy.

(2) If the department does not assign a district code to a

public school academy within the 30-day period described in

subsection (1), the district code the department shall use to make

payments under this article to the newly authorized public school

academy shall be a number that is equivalent to the sum of the last

district code assigned to a public school academy located in the

same county as the newly authorized public school academy plus 1.

However, if there is not an existing public school academy located

in the same county as the newly authorized public school academy,

then the district code the department shall use to make payments

under this article to the newly authorized public school academy

shall be a 5-digit number that has the county code in which the

public school academy is located as its first 2 digits, 9 as its

third digit, 0 as its fourth digit, and 1 as its fifth digit. If

the number of public school academies in a county grows to exceed

100, the third digit in this 5-digit number shall then be 7 for the

public school academies in excess of 100.

(3) For each school of excellence that is a cyber school and

is authorized under part 6e of the revised school code, MCL 380.551

to 380.561, by a school district, intermediate school district,

community college other than a federal tribally controlled

community college, or other authorizing body that is not empowered

to authorize a school of excellence to operate statewide and is

eligible to receive funding under this article, the department

shall assign a district code that includes as the first 2 digits

the county code in which the authorizing body is located.

Sec. 11. (1) ~~For the fiscal year ending September 30, 2015,~~

~~there is appropriated for the public schools of this state and~~

~~certain other state purposes relating to education the sum of~~

~~$11,827,097,400.00 from the state school aid fund, the sum of~~

~~$18,000,000.00 from the MPSERS retirement obligation reform reserve~~

~~fund created under section 147b, and the sum of $33,700,000.00 from~~

~~the general fund.~~ For the fiscal year ending September 30, 2016,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

House Bill No. 4115 as amended April 29, 2015

[$12,084,799,900.00] from the state school aid fund and the sum of

$45,900,000.00 from the general fund. In addition, all other

available federal funds are appropriated for the fiscal year ending

September 30, ~~2015.~~2016.

(2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

from the general fund shall be expended to fund the purposes of

this article before the expenditure of money appropriated under

this section from the state school aid fund.

(3) Any general fund allocations under this article that are

not expended by the end of the state fiscal year are transferred to

the school aid stabilization fund created under section 11a.

Sec. 11a. (1) The school aid stabilization fund is created as

a separate account within the state school aid fund established by

section 11 of article IX of the state constitution of 1963.

(2) The state treasurer may receive money or other assets from

any source for deposit into the school aid stabilization fund. The

state treasurer shall deposit into the school aid stabilization

fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue

for a fiscal year that remains in the state school aid fund as of

the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid

stabilization fund.

(3) Money available in the school aid stabilization fund may

not be expended without a specific appropriation from the school

aid stabilization fund. Money in the school aid stabilization fund

shall be expended only for purposes for which state school aid fund

money may be expended.

(4) The state treasurer shall direct the investment of the

school aid stabilization fund. The state treasurer shall credit to

the school aid stabilization fund interest and earnings from fund

investments.

(5) Money in the school aid stabilization fund at the close of

a fiscal year shall remain in the school aid stabilization fund and

shall not lapse to the unreserved school aid fund balance or the

general fund.

(6) If the maximum amount appropriated under section 11 from

the state school aid fund for a fiscal year exceeds the amount

available for expenditure from the state school aid fund for that

fiscal year, there is appropriated from the school aid

stabilization fund to the state school aid fund an amount equal to

the projected shortfall as determined by the department of

treasury, but not to exceed available money in the school aid

stabilization fund. If the money in the school aid stabilization

fund is insufficient to fully fund an amount equal to the projected

shortfall, the state budget director shall notify the legislature

as required under section 296(2) and state payments in an amount

equal to the remainder of the projected shortfall shall be prorated

in the manner provided under section 296(3).

(7) For ~~2014-2015,~~ 2015-2016, in addition to the

appropriations in section 11, there is appropriated from the school

aid stabilization fund to the state school aid fund the amount

necessary to fully fund the allocations under this article.

Sec. 11j. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$126,000,000.00 for 2014-2015~~

$143,000,000.00 for 2015-2016 for payments to the school loan bond

redemption fund in the department of treasury on behalf of

districts and intermediate districts. Notwithstanding section 296

or any other provision of this act, funds allocated under this

section are not subject to proration and shall be paid in full.

Sec. 11k. For ~~2014-2015,~~ 2015-2016, there is appropriated from

the general fund to the school loan revolving fund an amount equal

to the amount of school bond loans assigned to the Michigan finance

authority, not to exceed the total amount of school bond loans held

in reserve as long-term assets. As used in this section, "school

loan revolving fund" means that fund created in section 16c of the

shared credit rating act, 1985 PA 227, MCL 141.1066c.

Sec. 11m. From the appropriation in section 11, there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

~~$3,000,000.00~~ $4,000,000.00 for fiscal year cash-flow borrowing

costs solely related to the state school aid fund established by

section 11 of article IX of the state constitution of 1963.

Sec. 15. (1) If a district or intermediate district fails to

receive its proper apportionment, the department, upon satisfactory

proof that the district or intermediate district was entitled

justly, shall apportion the deficiency in the next apportionment.

Subject to subsections (2) and (3), if a district or intermediate

district has received more than its proper apportionment, the

department, upon satisfactory proof, shall deduct the excess in the

next apportionment. Notwithstanding any other provision in this

article, state aid overpayments to a district, other than

overpayments in payments for special education or special education

transportation, may be recovered from any payment made under this

article other than a special education or special education

transportation payment, from the proceeds of a loan to the district

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

141.942, or from the proceeds of millage levied or pledged under

section 1211 of the revised school code, MCL 380.1211. State aid

overpayments made in special education or special education

transportation payments may be recovered from subsequent special

education or special education transportation payments, from the

proceeds of a loan to the district under the emergency municipal

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

of millage levied or pledged under section 1211 of the revised

school code, MCL 380.1211.

(2) If the result of an audit conducted by or for the

department affects the current fiscal year membership, affected

payments shall be adjusted in the current fiscal year. A deduction

due to an adjustment made as a result of an audit conducted by or

for the department, or as a result of information obtained by the

department from the district, an intermediate district, the

department of treasury, or the office of auditor general, shall be

deducted from the district's apportionments when the adjustment is

finalized. At the request of the district and upon the district

presenting evidence satisfactory to the department of the hardship,

the department may grant up to an additional 4 years for the

adjustment and may advance payments to the district otherwise

authorized under this article if the district would otherwise

experience a significant hardship in satisfying its financial

obligations.

(3) If, based on an audit by the department or the

department's designee or because of new or updated information

received by the department, the department determines that the

amount paid to a district or intermediate district under this

article for the current fiscal year or a prior fiscal year was

incorrect, the department shall make the appropriate deduction or

payment in the district's or intermediate district's allocation in

the next apportionment after the adjustment is finalized. The

deduction or payment shall be calculated according to the law in

effect in the fiscal year in which the incorrect amount was paid.

If the district does not receive an allocation for the fiscal year

or if the allocation is not sufficient to pay the amount of any

deduction, the amount of any deduction otherwise applicable shall

be satisfied from the proceeds of a loan to the district under the

emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942,

or from the proceeds of millage levied or pledged under section

1211 of the revised school code, MCL 380.1211, as determined by the

department.

(4) The department may conduct audits, or may direct audits by

designee of the department, for the current fiscal year and the

immediately preceding 3 fiscal years of all records related to a

program for which a district or intermediate district has received

funds under this article.

(5) Expenditures made by the department under this article

that are caused by the write-off of prior year accruals may be

funded by revenue from the write-off of prior year accruals.

(6) In addition to funds appropriated in section 11 for all

programs and services, there is appropriated for ~~2014-2015~~ 2015-

2016 for obligations in excess of applicable appropriations an

amount equal to the collection of overpayments, but not to exceed

amounts available from overpayments.

Sec. 18. (1) Except as provided in another section of this

article, each district or other entity shall apply the money

received by the district or entity under this article to salaries

and other compensation of teachers and other employees, tuition,

transportation, lighting, heating, ventilation, water service, the

purchase of textbooks, other supplies, and any other school

operating expenditures defined in section 7. However, not more than

20% of the total amount received by a district under sections 22a

and 22b or received by an intermediate district under section 81

may be transferred by the board to either the capital projects fund

or to the debt retirement fund for debt service. The money shall

not be applied or taken for a purpose other than as provided in

this section. The department shall determine the reasonableness of

expenditures and may withhold from a recipient of funds under this

article the apportionment otherwise due upon a violation by the

recipient.

(2) A district or intermediate district shall adopt an annual

budget in a manner that complies with the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days

after a board adopts its annual operating budget for the following

school fiscal year, or after a board adopts a subsequent revision

to that budget, the district shall make all of the following

available through a link on its website ~~home page,~~ homepage, or may

make the information available through a link on its intermediate

district's website ~~home page,~~ homepage, in a form and manner

prescribed by the department:

(a) The annual operating budget and subsequent budget

revisions.

(b) Using data that have already been collected and submitted

to the department, a summary of district expenditures for the most

recent fiscal year for which they are available, expressed in the

following 2 pie charts:

(i) A chart of personnel expenditures, broken into the

following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

(ii) A chart of all district expenditures, broken into the

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not

limited to, medical, dental, vision, disability, long-term care, or

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee in the

district.

(iii) The audit report of the audit conducted under subsection

(4) for the most recent fiscal year for which it is available.

(iv) The bids required under section 5 of the public employee

health benefits act, 2007 PA 106, MCL 124.75.

(v) The district's written policy governing procurement of

supplies, materials, and equipment.

(vi) The district's written policy establishing specific

categories of reimbursable expenses, as described in section

1254(2) of the revised school code, MCL 380.1254.

(vii) Either the district's accounts payable check register

for the most recent school fiscal year or a statement of the total

amount of expenses incurred by board members or employees of the

district that were reimbursed by the district for the most recent

school fiscal year.

(d) The total salary and a description and cost of each fringe

benefit included in the compensation package for the superintendent

of the district and for each employee of the district whose salary

exceeds $100,000.00.

(e) The annual amount spent on dues paid to associations.

(f) The annual amount spent on lobbying or lobbying services.

As used in this subdivision, "lobbying" means that term as defined

in section 5 of 1978 PA 472, MCL 4.415.

(g) Any deficit elimination plan or enhanced deficit

elimination plan the district was required to submit under this

article.

(h) Identification of all credit cards maintained by the

district as district credit cards, the identity of all individuals

authorized to use each of those credit cards, the credit limit on

each credit card, and the dollar limit, if any, for each

individual's authorized use of the credit card.

(i) Costs incurred for each instance of out-of-state travel by

the school administrator of the district that is fully or partially

paid for by the district and the details of each of those instances

of out-of-state travel, including at least identification of each

individual on the trip, destination, and purpose.

(3) For the information required under subsection (2)(a),

(2)(b)(i), and (2)(c), an intermediate district shall provide the

same information in the same manner as required for a district

under subsection (2).

(4) For the purposes of determining the reasonableness of

expenditures, whether a district or intermediate district has

received the proper amount of funds under this article, and whether

a violation of this article has occurred, all of the following

apply:

(a) The department shall require that each district and

intermediate district have an audit of the district's or

intermediate district's financial and pupil accounting records

conducted at least annually, and at such other times as determined

by the department, at the expense of the district or intermediate

district, as applicable. The audits must be performed by a

certified public accountant or by the intermediate district

superintendent, as may be required by the department, or in the

case of a district of the first class by a certified public

accountant, the intermediate superintendent, or the auditor general

of the city. A district or intermediate district shall retain these

records for the current fiscal year and from at least the 3

immediately preceding fiscal years.

(b) If a district operates in a single building with fewer

than 700 full-time equated pupils, if the district has stable

membership, and if the error rate of the immediately preceding 2

pupil accounting field audits of the district is less than 2%, the

district may have a pupil accounting field audit conducted

biennially but must continue to have desk audits for each pupil

count. The auditor must document compliance with the audit cycle in

the pupil auditing manual. As used in this subdivision, "stable

membership" means that the district's membership for the current

fiscal year varies from the district's membership for the

immediately preceding fiscal year by less than 5%.

audit shall include an analysis of the financial and pupil

accounting data used as the basis for distribution of state school

aid.

(d) The pupil and financial accounting records and reports,

audits, and management letters are subject to requirements

established in the auditing and accounting manuals approved and

published by the department.

(e) All of the following shall be done not later than ~~November~~

~~15, 2014 for reporting 2013-2014 data during 2014-2015, and not~~

~~later than~~ November 1 each year for reporting the prior fiscal year

data: ~~for all subsequent fiscal years:~~

(i) A district shall file the annual financial audit reports

with the intermediate district and the department.

(ii) The intermediate district shall file the annual financial

audit reports for the intermediate district with the department.

(iii) The intermediate district shall enter the pupil

membership audit reports for its constituent districts and for the

intermediate district, for the pupil membership count day and

supplemental count day, in the Michigan student data system.

(f) The annual financial audit reports and pupil accounting

procedures reports shall be available to the public in compliance

with the freedom of information act, 1976 PA 442, MCL 15.231 to

15.246.

(g) Not later than January 31 of each year, the department

shall notify the state budget director and the legislative

appropriations subcommittees responsible for review of the school

aid budget of districts and intermediate districts that have not

filed an annual financial audit and pupil accounting procedures

report required under this section for the school year ending in

the immediately preceding fiscal year.

(5) By ~~November 15, 2014 for 2014-2015 and by~~ November 1 ~~for~~

~~all subsequent fiscal years,~~ each year, each district and

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

consistent with accounting manuals and charts of accounts approved

and published by the department. For an intermediate district, the

report shall also contain the website address where the department

can access the report required under section 620 of the revised

school code, MCL 380.620. The department shall ensure that the

prescribed Michigan public school accounting manual chart of

accounts includes standard conventions to distinguish expenditures

by allowable fund function and object. The functions shall include

at minimum categories for instruction, pupil support, instructional

staff support, general administration, school administration,

business administration, transportation, facilities operation and

maintenance, facilities acquisition, and debt service; and shall

include object classifications of salary, benefits, including

categories for active employee health expenditures, purchased

services, supplies, capital outlay, and other. Districts shall

report the required level of detail consistent with the manual as

part of the comprehensive annual financial report.

(6) By September 30 of each year, each district and

intermediate district shall file with the department the special

education actual cost report, known as "SE-4096", on a form and in

the manner prescribed by the department.

(7) By October 7 of each year, each district and intermediate

district shall file with the center the transportation expenditure

report, known as "SE-4094", on a form and in the manner prescribed

by the center.

(8) The department shall review its pupil accounting and pupil

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this article.

(9) If a district that is a public school academy purchases

property using money received under this article, the public school

academy shall retain ownership of the property unless the public

school academy sells the property at fair market value.

(10) If a district or intermediate district does not comply

with subsections (4), (5), (6), and (7), the department shall

withhold all state school aid due to the district or intermediate

district under this article, beginning with the next payment due to

the district or intermediate district, until the district or

intermediate district complies with subsections (4), (5), (6), and

(7). ~~However, the department shall not withhold the payment due on~~

~~October 20 due to the operation of this subsection.~~ If the district

or intermediate district does not comply with subsections (4), (5),

(6), and (7) by the end of the fiscal year, the district or

intermediate district forfeits the amount withheld.

(11) If a district or intermediate district does not comply

with subsection (2), the department may withhold up to 10% of the

state school aid otherwise payable to the district or intermediate

district under this article, beginning with the next payment due to

the district or intermediate district, until the district or

intermediate district complies with subsection (2). If the district

or intermediate district does not comply with subsection (2) by the

end of the fiscal year, the district or intermediate district

forfeits the amount withheld.

(12) ~~(11)~~ Not later than November 1, ~~2014,~~ 2015, if a district

or intermediate district offers online learning under section 21f,

the district or intermediate district shall submit to the

department a report that details the per-pupil costs of operating

the online learning by vendor type. The report shall include at

least all of the following information concerning the operation of

online learning for the school fiscal year ending June 30,

~~2014:~~2015:

(a) The name of the district operating the online learning and

of each district that enrolled students in the online learning.

(b) The total number of students enrolled in the online

learning and the total number of membership pupils enrolled in the

online learning.

the district offering online learning, the name of that district.

(d) The district in which the pupil was enrolled before

enrolling in the district offering online learning.

(e) The number of participating students who had previously

dropped out of school.

(f) The number of participating students who had previously

been expelled from school.

(g) The total cost to enroll a student in the program. This

cost shall be reported on a per-pupil, per-course, per-semester or

trimester basis by vendor type. The total shall include costs

broken down by cost for content development, content licensing,

training, online instruction and instructional support, personnel,

hardware and software, payment to each online learning provider,

and other costs associated with operating online learning.

(h) The name of each online education provider contracted by

the district and the state in which each online education provider

is headquartered.

(13) ~~(12)~~ Not later than March 31, ~~2015,~~ 2016, the department

shall submit to the house and senate appropriations subcommittees

on state school aid, the state budget director, and the house and

senate fiscal agencies a report summarizing the per pupil costs by

vendor type of online courses available under section 21f.

(14) ~~(13)~~ As used in subsections ~~(11) and (12),~~ (12) and (13),

"vendor type" means the following:

(a) Online courses provided by the Michigan virtual

university.

(b) Online courses provided by a school of excellence that is

a cyber school, as defined in section 551 of the revised school

code, MCL 380.551.

affiliated with a Michigan public school.

(d) Online courses created and offered by a district or

intermediate district.

Sec. 18a. Grant funds awarded and allotted to a district,

intermediate district, or other entity, unless otherwise specified

in this ~~act,~~ article, shall be expended by the grant recipient

before the end of the ~~school~~ fiscal year immediately following the

fiscal year in which the funds are received. If a grant recipient

does not expend the funds received under this ~~act~~ article before

the end of the fiscal year in which the funds are received, the

grant recipient shall submit a report to the department not later

than November 1 after the fiscal year in which the funds are

received indicating whether it expects to expend those funds during

the fiscal year in which the report is submitted. A recipient of a

grant shall return any unexpended grant funds to the department in

the manner prescribed by the department not later than September 30

after the fiscal year in which the funds are received.

Sec. 20. (1) For ~~2014-2015,~~ 2015-2016, both of the following

apply:

(a) The basic foundation allowance is ~~$8,099.00.~~$8,236.00.

(b) The minimum foundation allowance is ~~$7,126.00.~~$7,525.00.

(2) The amount of each district's foundation allowance shall

be calculated as provided in this section, using a basic foundation

allowance in the amount specified in subsection (1).

(3) Except as otherwise provided in this section, the amount

of a district's foundation allowance shall be calculated as

follows, using in all calculations the total amount of the

district's foundation allowance as calculated before any proration:

(a) Except as otherwise provided in this subdivision, for a

district that had a foundation allowance for the immediately

preceding state fiscal year that was equal to the minimum

foundation allowance for the immediately preceding state fiscal

year, but less than the basic foundation allowance for the

immediately preceding state fiscal year, the district shall receive

a foundation allowance in an amount equal to the sum of the

district's foundation allowance for the immediately preceding state

fiscal year plus the difference between twice the dollar amount of

the adjustment from the immediately preceding state fiscal year to

the current state fiscal year made in the basic foundation

allowance and [(the difference between the basic foundation

allowance for the current state fiscal year and basic foundation

allowance for the immediately preceding state fiscal year minus

$10.00) times (the difference between the district's foundation

allowance for the immediately preceding state fiscal year and the

minimum foundation allowance for the immediately preceding state

fiscal year) divided by the difference between the basic foundation

allowance for the current state fiscal year and the minimum

foundation allowance for the immediately preceding state fiscal

year]. However, the foundation allowance for a district that had

less than the basic foundation allowance for the immediately

preceding state fiscal year shall not exceed the basic foundation

allowance for the current state fiscal year. For the purposes of

this subdivision, for ~~2014-2015,~~ 2015-2016, the minimum foundation

allowance for the immediately preceding state fiscal year shall be

considered to be ~~$7,076.00. For 2014-2015, for a district that had~~

~~a foundation allowance for the immediately preceding state fiscal~~

~~year that was at least equal to the minimum foundation allowance~~

~~for the immediately preceding state fiscal year but less than the~~

~~basic foundation allowance for the immediately preceding state~~

~~fiscal year, the district shall receive a foundation allowance in~~

~~an amount equal to the district's foundation allowance for 2013-~~

~~2014 plus $50.00.~~$7,251.00.

(b) Except as otherwise provided in this subsection, for a

district that in the immediately preceding state fiscal year had a

foundation allowance in an amount equal to the amount of the basic

foundation allowance for the immediately preceding state fiscal

year, the district shall receive a foundation allowance for ~~2014-~~

~~2015~~ 2015-2016 in an amount equal to the basic foundation allowance

for ~~2014-2015.~~2015-2016.

immediately preceding state fiscal year that was greater than the

basic foundation allowance for the immediately preceding state

fiscal year, the district's foundation allowance is an amount equal

to the sum of the district's foundation allowance for the

immediately preceding state fiscal year plus the lesser of the

increase in the basic foundation allowance for the current state

fiscal year, as compared to the immediately preceding state fiscal

year, or the product of the district's foundation allowance for the

immediately preceding state fiscal year times the percentage

increase in the United States consumer price index in the calendar

year ending in the immediately preceding fiscal year as reported by

the May revenue estimating conference conducted under section 367b

of the management and budget act, 1984 PA 431, MCL 18.1367b.

(d) For a district that has a foundation allowance that is not

a whole dollar amount, the district's foundation allowance shall be

rounded up to the nearest whole dollar.

(e) For a district that received a payment under section 22c

as that section was in effect for ~~2013-2014,~~ 2014-2015, the

district's ~~2013-2014~~ 2014-2015 foundation allowance shall be

considered to have been an amount equal to the sum of the

district's actual ~~2013-2014~~ 2014-2015 foundation allowance as

otherwise calculated under this section plus the per-pupil amount

of the district's equity payment for ~~2013-2014~~ 2014-2015 under

section 22c as that section was in effect for ~~2013-2014.~~2014-2015.

(4) Except as otherwise provided in this subsection, the state

portion of a district's foundation allowance is an amount equal to

the district's foundation allowance or the basic foundation

allowance for the current state fiscal year, whichever is less,

minus the local portion of the district's foundation allowance

divided by the district's membership excluding special education

pupils. For a district described in subsection (3)(c), the state

portion of the district's foundation allowance is an amount equal

to $6,962.00 plus the difference between the district's foundation

allowance for the current state fiscal year and the district's

foundation allowance for 1998-99, minus the local portion of the

district's foundation allowance divided by the district's

membership excluding special education pupils. For a district that

has a millage reduction required under section 31 of article IX of

the state constitution of 1963, the state portion of the district's

foundation allowance shall be calculated as if that reduction did

not occur. For a receiving district, if school operating taxes

continue to be levied on behalf of a dissolved district that has

been attached in whole or in part to the receiving district to

satisfy debt obligations of the dissolved district under section 12

of the revised school code, MCL 380.12, the taxable value per

membership pupil of property in the receiving district used for the

purposes of this subsection does not include the taxable value of

property within the geographic area of the dissolved district.

(5) The allocation calculated under this section for a pupil

shall be based on the foundation allowance of the pupil's district

of residence. For a pupil enrolled pursuant to section 105 or 105c

in a district other than the pupil's district of residence, the

allocation calculated under this section shall be based on the

lesser of the foundation allowance of the pupil's district of

residence or the foundation allowance of the educating district.

For a pupil in membership in a K-5, K-6, or K-8 district who is

enrolled in another district in a grade not offered by the pupil's

district of residence, the allocation calculated under this section

shall be based on the foundation allowance of the educating

district if the educating district's foundation allowance is

greater than the foundation allowance of the pupil's district of

residence.

(6) Except as otherwise provided in this subsection, for

pupils in membership, other than special education pupils, in a

public school academy, the allocation calculated under this section

is an amount per membership pupil other than special education

pupils in the public school academy equal to the foundation

allowance of the district in which the public school academy is

located or the state maximum public school academy allocation,

whichever is less. For pupils in membership, other than special

education pupils, in a public school academy that is a cyber school

and is authorized by a school district, the allocation calculated

under this section is an amount per membership pupil other than

special education pupils in the public school academy equal to the

foundation allowance of the district that authorized the public

school academy or the state maximum public school academy

allocation, whichever is less. However, a public school academy

that had an allocation under this subsection before 2009-2010 that

was equal to the sum of the local school operating revenue per

membership pupil other than special education pupils for the

district in which the public school academy is located and the

state portion of that district's foundation allowance shall not

have that allocation reduced as a result of the 2010 amendment to

this subsection. Notwithstanding section 101, for a public school

academy that begins operations after the pupil membership count

day, the amount per membership pupil calculated under this

subsection shall be adjusted by multiplying that amount per

membership pupil by the number of hours of pupil instruction

provided by the public school academy after it begins operations,

as determined by the department, divided by the minimum number of

hours of pupil instruction required under section 101(3). The

result of this calculation shall not exceed the amount per

membership pupil otherwise calculated under this subsection.

(7) Except as otherwise provided in this subsection, for

pupils attending an achievement school and in membership in the

education achievement system, other than special education pupils,

the allocation calculated under this section is an amount per

membership pupil other than special education pupils equal to the

foundation allowance of the district in which the achievement

school is located, not to exceed the basic foundation allowance.

Notwithstanding section 101, for an achievement school that begins

operation after the pupil membership count day, the amount per

membership pupil calculated under this subsection shall be adjusted

by multiplying that amount per membership pupil by the number of

hours of pupil instruction provided by the achievement school after

it begins operations, as determined by the department, divided by

the minimum number of hours of pupil instruction required under

section 101(3). The result of this calculation shall not exceed the

amount per membership pupil otherwise calculated under this

subsection. For the purposes of this subsection, if a public school

is transferred from a district to the state school reform/redesign

district or the achievement authority under section 1280c of the

revised school code, MCL 380.1280c, that public school is

considered to be an achievement school within the education

achievement system and not a school that is part of a district, and

a pupil attending that public school is considered to be in

membership in the education achievement system and not in

membership in the district that operated the school before the

transfer.

(8) Subject to subsection (4), for a district that is formed

or reconfigured after June 1, 2002 by consolidation of 2 or more

districts or by annexation, the resulting district's foundation

allowance under this section beginning after the effective date of

the consolidation or annexation shall be the lesser of the sum of

the average of the foundation allowances of each of the original or

affected districts, calculated as provided in this section,

weighted as to the percentage of pupils in total membership in the

resulting district who reside in the geographic area of each of the

original or affected districts plus $100.00 or the highest

foundation allowance among the original or affected districts. This

subsection does not apply to a receiving district unless there is a

subsequent consolidation or annexation that affects the district.

(9) Each fraction used in making calculations under this

section shall be rounded to the fourth decimal place and the dollar

amount of an increase in the basic foundation allowance shall be

rounded to the nearest whole dollar.

(10) State payments related to payment of the foundation

allowance for a special education pupil are not calculated under

this section but are instead calculated under section 51a.

(11) To assist the legislature in determining the basic

foundation allowance for the subsequent state fiscal year, each

revenue estimating conference conducted under section 367b of the

management and budget act, 1984 PA 431, MCL 18.1367b, shall

calculate a pupil membership factor, a revenue adjustment factor,

and an index as follows:

(a) The pupil membership factor shall be computed by dividing

the estimated membership in the school year ending in the current

state fiscal year, excluding intermediate district membership, by

the estimated membership for the school year ending in the

subsequent state fiscal year, excluding intermediate district

membership. If a consensus membership factor is not determined at

the revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

(b) The revenue adjustment factor shall be computed by

dividing the sum of the estimated total state school aid fund

revenue for the subsequent state fiscal year plus the estimated

total state school aid fund revenue for the current state fiscal

year, adjusted for any change in the rate or base of a tax the

proceeds of which are deposited in that fund and excluding money

transferred into that fund from the countercyclical budget and

economic stabilization fund under the management and budget act,

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

total school aid fund revenue for the current state fiscal year

plus the estimated total state school aid fund revenue for the

immediately preceding state fiscal year, adjusted for any change in

the rate or base of a tax the proceeds of which are deposited in

that fund. If a consensus revenue factor is not determined at the

revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

membership factor by the revenue adjustment factor. If a consensus

index is not determined at the revenue estimating conference, the

principals of the revenue estimating conference shall report their

estimates to the house and senate subcommittees responsible for

school aid appropriations not later than 7 days after the

conclusion of the revenue conference.

(12) Payments to districts, public school academies, or the

education achievement system shall not be made under this section.

Rather, the calculations under this section shall be used to

determine the amount of state payments under section 22b.

(13) If an amendment to section 2 of article VIII of the state

constitution of 1963 allowing state aid to some or all nonpublic

schools is approved by the voters of this state, each foundation

allowance or per-pupil payment calculation under this section may

be reduced.

(14) As used in this section:

(a) "Certified mills" means the lesser of 18 mills or the

number of mills of school operating taxes levied by the district in

1993-94.

(b) "Combined state and local revenue" means the aggregate of

the district's state school aid received by or paid on behalf of

the district under this section and the district's local school

operating revenue.

means the district's combined state and local revenue divided by

the district's membership excluding special education pupils.

(d) "Current state fiscal year" means the state fiscal year

for which a particular calculation is made.

(e) "Dissolved district" means a district that loses its

organization, has its territory attached to 1 or more other

districts, and is dissolved as provided under section 12 of the

revised school code, MCL 380.12.

(f) "Immediately preceding state fiscal year" means the state

fiscal year immediately preceding the current state fiscal year.

(g) "Local portion of the district's foundation allowance"

means an amount that is equal to the difference between (the sum of

the product of the taxable value per membership pupil of all

property in the district that is nonexempt property times the

district's certified mills and, for a district with certified mills

exceeding 12, the product of the taxable value per membership pupil

of property in the district that is commercial personal property

times the certified mills minus 12 mills) and (the quotient of the

product of the captured assessed valuation under tax increment

financing acts times the district's certified mills divided by the

district's membership excluding special education pupils).

(h) "Local school operating revenue" means school operating

taxes levied under section 1211 of the revised school code, MCL

380.1211. For a receiving district, if school operating taxes are

to be levied on behalf of a dissolved district that has been

attached in whole or in part to the receiving district to satisfy

debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, local school operating revenue

does not include school operating taxes levied within the

geographic area of the dissolved district.

(i) "Local school operating revenue per membership pupil"

means a district's local school operating revenue divided by the

district's membership excluding special education pupils.

(j) "Maximum public school academy allocation", ~~except as~~

~~otherwise provided in this subdivision, means the maximum per-pupil~~

~~allocation as calculated by adding the highest per-pupil allocation~~

~~among all public school academies for the immediately preceding~~

~~state fiscal year plus the difference between twice the amount of~~

~~the difference between the basic foundation allowance for the~~

~~current state fiscal year and the basic foundation for the~~

~~immediately preceding state fiscal year and [(the amount of the~~

~~difference between the basic foundation allowance for the current~~

~~state fiscal year and the basic foundation for the immediately~~

~~preceding state fiscal year minus $10.00) times (the difference~~

~~between the highest per-pupil allocation among all public school~~

~~academies for the immediately preceding state fiscal year and the~~

~~minimum foundation allowance for the immediately preceding state~~

~~fiscal year) divided by the difference between the basic foundation~~

~~allowance for the current state fiscal year and the minimum~~

~~foundation allowance for the immediately preceding state fiscal~~

~~year]. For the purposes of this subdivision, for 2014-2015, the~~

~~minimum foundation allowance for the immediately preceding state~~

~~fiscal year shall be considered to be $7,076.00. For 2014-2015, the~~

~~maximum public school academy allocation is $7,218.00.~~means the

minimum foundation allowance under subsection (1).

(k) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(l) "Nonexempt property" means property that is not a

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, or commercial personal property, or property occupied by

a public school academy.

(m) "Principal residence", "qualified agricultural property",

"qualified forest property", "supportive housing property",

"industrial personal property", and "commercial personal property"

mean those terms as defined in section 1211 of the revised school

code, MCL 380.1211.

(n) "Receiving district" means a district to which all or part

of the territory of a dissolved district is attached under section

12 of the revised school code, MCL 380.12.

(o) "School operating purposes" means the purposes included in

the operation costs of the district as prescribed in sections 7 and

18 and purposes authorized under section 1211 of the revised school

code, MCL 380.1211.

(p) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes.

(q) "Tax increment financing acts" means 1975 PA 197, MCL

125.1651 to 125.1681, the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830, the local development financing

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

or the corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899.

(r) "Taxable value per membership pupil" means taxable value,

as certified by the county treasurer and reported to the

department, for the calendar year ending in the current state

fiscal year divided by the district's membership excluding special

education pupils for the school year ending in the current state

fiscal year.

Sec. 20d. In making the final determination required under

former section 20a of a district's combined state and local revenue

per membership pupil in 1993-94 and in making calculations under

section 20 for ~~2014-2015,~~ 2015-2016, the department and the

department of treasury shall comply with all of the following:

(a) For a district that had combined state and local revenue

per membership pupil in the 1994-95 state fiscal year of $6,500.00

or more and served as a fiscal agent for a state board designated

area vocational education center in the 1993-94 school year, total

state school aid received by or paid on behalf of the district

pursuant to this act in 1993-94 shall exclude payments made under

former section 146 and under section 147 on behalf of the

district's employees who provided direct services to the area

vocational education center. Not later than June 30, 1996, the

department shall make an adjustment under this subdivision to the

district's combined state and local revenue per membership pupil in

the 1994-95 state fiscal year and the department of treasury shall

make a final certification of the number of mills that may be

levied by the district under section 1211 of the revised school

code, MCL 380.1211, as a result of the adjustment under this

subdivision.

(b) If a district had an adjustment made to its 1993-94 total

state school aid that excluded payments made under former section

146 and under section 147 on behalf of the district's employees who

provided direct services for intermediate district center programs

operated by the district under article 5, if nonresident pupils

attending the center programs were included in the district's

membership for purposes of calculating the combined state and local

revenue per membership pupil for 1993-94, and if there is a signed

agreement by all constituent districts of the intermediate district

that an adjustment under this subdivision shall be made, the

foundation allowances for 1995-96 and 1996-97 of all districts that

had pupils attending the intermediate district center program

operated by the district that had the adjustment shall be

calculated as if their combined state and local revenue per

membership pupil for 1993-94 included resident pupils attending the

center program and excluded nonresident pupils attending the center

program.

Sec. 20f. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $14,000,000.00 for 2015-2016

for supplemental payments to districts under this section.

(2) From the ~~funds appropriated in section 11,~~ amount

allocated under subsection (1), there is allocated an amount not to

exceed $6,000,000.00 for ~~2014-2015~~ 2015-2016 for payments to

eligible districts under this ~~section.~~ subsection. A district is

eligible for funding under this ~~section~~ subsection if the district

received a payment under this section as it was in effect for 2013-

2014. A district was eligible for funding in 2013-2014 if the sum

of the following was less than $5.00:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2012-2013 to

2013-2014.

(b) The district's equity payment per membership pupil under

section 22c for 2013-2014.

147a for 2012-2013 divided by the district's membership pupils for

2012-2013 minus the quotient of the district's allocation under

section 147a for 2013-2014 divided by the district's membership

pupils for 2013-2014.

(3) ~~(2)~~ The amount allocated to each eligible district under

~~this section~~ subsection (2) is an amount per membership pupil equal

to the amount per membership pupil the district received in 2013-

2014.

(4) ~~(3)~~ If the allocation under subsection ~~(1)~~ (2) is

insufficient to fully fund payments as otherwise calculated under

~~this section,~~ subsection (3), the department shall prorate payments

under ~~this section~~ subsection (2) on an equal per-pupil basis.

(5) From the amount allocated under subsection (1), there is

allocated an amount not to exceed $8,000,000.00 for 2015-2016 for

payments to eligible districts under this subsection. A district is

eligible for funding under this subsection if the sum of the

following is less than $25.00:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The district's per-pupil allocation under section 20g for

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 20g for 2014-2015.

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 22f for 2014-2015.

(d) The district's per-pupil allocation under section 22j for

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 22j for 2014-2015.

(e) The quotient of the district's allocation under section

147a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 147a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(6) The amount allocated to each eligible district under

subsection (5) is an amount per membership pupil equal to $25.00

minus the sum of the following:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The district's per-pupil allocation under section 20g for

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 20g for 2014-2015.

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 22f for 2014-2015.

(d) The district's per-pupil allocation under section 22j for

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 22j for 2014-2015.

(e) The quotient of the district's allocation under section

147a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 147a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(7) If the allocation under subsection (5) is insufficient to

fully fund payments as otherwise calculated under subsection (6),

the department shall prorate payments under subsection (5) on an

equal per-pupil basis.

Sec. 21f. (1) A pupil enrolled in a district in any of grades

6 to 12 is eligible to enroll in an online course as provided for

in this section.

(2) With the consent of the pupil's parent or legal guardian,

a district shall enroll an eligible pupil in up to 2 online courses

as requested by the pupil during an academic term, semester, or

trimester. Unless the pupil is newly enrolled in the pupil's

primary district, the request for online course enrollment must be

made in the academic term, semester, trimester, or summer preceding

the enrollment. A district may not establish additional

requirements that would prohibit a pupil from taking an online

course. If a pupil has demonstrated previous success with online

courses and the school leadership and the pupil's parent or legal

guardian determine that it is in the best interest of the pupil, a

pupil may be enrolled in more than 2 online courses in a specific

academic term, semester, or trimester. Consent of the pupil's

parent or legal guardian is not required if the pupil is at least

age 18 or is an emancipated minor.

(3) An eligible pupil may enroll in an online course published

in the pupil's ~~educating~~ primary district's catalog of online

courses described in subsection (7)(a) or the statewide catalog of

online courses maintained by the Michigan ~~virtual university~~

Virtual University pursuant to section 98.

(4) A providing district or community college shall determine

whether or not it has capacity to accept applications for

enrollment from nonresident applicants in online courses and may

use that limit as the reason for refusal to enroll an applicant. If

the number of nonresident applicants eligible for acceptance in an

online course does not exceed the capacity of the providing

district or community college to provide the online course, the

providing district or community college shall accept for enrollment

all of the nonresident applicants eligible for acceptance. If the

number of nonresident applicants exceeds the providing district's

or community college's capacity to provide the online course, the

providing district or community college shall use a random draw

system, subject to the need to abide by state and federal

antidiscrimination laws and court orders.

(5) A pupil's primary district may deny a the pupil enrollment

in an online course if any of the following apply, as determined by

the district:

(a) The pupil has previously gained the credits provided from

the completion of the online course.

(b) The online course is not capable of generating academic

credit.

graduation requirements or career interests of the pupil.

(d) The pupil does not possess the prerequisite knowledge and

skills to be successful in the online course or has demonstrated

failure in previous online coursework in the same subject.

(e) The online course is of insufficient quality or rigor. A

district that denies a pupil enrollment for this reason shall make

a reasonable effort to assist the pupil to find an alternative

course in the same or a similar subject that is of acceptable rigor

and quality.

(f) The cost of the online course exceeds the amount

identified in subsection ~~(8),~~ (10), unless the pupil's parent or

legal guardian agrees to pay the cost that exceeds this amount.

(g) The online course enrollment request does not occur within

the same timelines established by the pupil's primary district for

enrollment and schedule changes for regular courses.

(6) If a pupil is denied enrollment in an online course by a

the pupil's primary district, the pupil may appeal the denial by

submitting a letter to the superintendent of the intermediate

district in which the pupil's ~~educating~~ primary district is

located. The letter of appeal shall include the reason provided by

the pupil's primary district for not enrolling the pupil and the

reason why the pupil is claiming that the enrollment should be

approved. The intermediate district superintendent or designee

shall respond to the appeal within 5 days after it is received. If

the intermediate district superintendent or designee determines

that the denial of enrollment does not meet 1 or more of the

reasons specified in subsection (5), the pupil's primary district

shall allow the pupil to enroll in the online course.

(7) To ~~offer or~~ provide an online course under this section, a

the providing district or intermediate district shall do all of the

following:

(a) Provide the Michigan ~~virtual university~~ Virtual University

with the course syllabus in a form and method prescribed by the

Michigan ~~virtual university~~ Virtual University for inclusion in a

statewide online course catalog. The district or intermediate

district shall also provide on its publicly accessible website a

link to the course syllabi for all of the online courses offered by

the district or intermediate district and a link to the statewide

catalog of online courses maintained by the Michigan ~~virtual~~

~~university.~~Virtual University.

(b) Assign to each pupil a teacher of record and provide the

pupil's primary district with the personal identification code for

the teacher of record.

method, or aligned to a semester, trimester, or accelerated

academic term format.

(d) ~~(c)~~ Not later than October 1, ~~2014,~~ 2015, provide the

Michigan virtual university with the number of enrollments in each

online course the district or intermediate district ~~offered~~

provided to pupils pursuant to this section in the immediately

preceding school year, and the number of enrollments in which the

pupil earned 60% or more of the total course points for each online

course.

(8) To provide an online course under this section, a

community college shall do all of the following:

(a) Provide the Michigan Virtual University with the course

syllabus in a form and method prescribed by the Michigan Virtual

University for inclusion in a statewide online course catalog.

(b) Offer the online course on an open entry and exit method,

or aligned to a semester, trimester, or accelerated academic term

format.

section generates postsecondary credit.

(d) Beginning with October 1, 2016, and by October 1 of each

year thereafter, provide the Michigan Virtual University with the

number of enrollments in each online course the community college

provided to pupils pursuant to this section in the immediately

preceding school year, and the number of enrollments in which the

pupil earned 60% or more of the total course points for each online

course.

(e) Be taught by an instructor employed by or contracted

through the community college.

(9) For any online course a pupil enrolls in under this

section, the pupil's primary district must assign to the pupil a

mentor to monitor the pupil's progress during the online course and

shall supply the providing district with the mentor's contact

information.

(10) ~~(8)~~ For a pupil enrolled in 1 or more online courses

published in the pupil's ~~educating~~ primary district's catalog of

online courses under subsection (7) or in the statewide catalog of

online courses maintained by the Michigan ~~virtual university,~~

Virtual University, the pupil's primary district shall use

foundation allowance or per-pupil funds calculated under section 20

to pay for the expenses associated with the online course or

courses. The district shall pay 80% of the cost of the online

course upon enrollment and 20% upon completion as determined by the

district. A district is not required to pay toward the cost of an

online course an amount that exceeds 8.33% of the minimum

foundation allowance for the current fiscal year as calculated

under section 20.

(11) ~~(9)~~ An online learning pupil shall have the same rights

and access to technology in his or her primary district's school

facilities as all other pupils enrolled in the pupil's primary

district.

(12) ~~(10)~~ If a pupil successfully completes an online course,

as determined by the pupil's primary district, the pupil's primary

district shall grant appropriate academic credit for completion of

the course and shall count that credit toward completion of

graduation and subject area requirements. A pupil's school record

and transcript shall identify the online course title as it appears

in the online course syllabus.

(13) ~~(11)~~ The enrollment of a pupil in 1 or more online

courses shall not result in a pupil being counted as more than 1.0

full-time equivalent pupils under this article.

(14) ~~(12)~~ The portion of the full-time equated pupil

membership for which a pupil is enrolled in 1 or more online

courses under this section shall not be transferred under the pupil

transfer process under section 25e.

(15) ~~(13)~~ As used in this section:

(a) "Mentor" means a professional employee of the primary

district who monitors the pupil's progress, ensures the pupil has

access to needed technology, is available for assistance, and

ensures access to the teacher of record. A mentor may also serve as

the teacher of record if the mentor meets the requirements under

subdivision (g).

(b) ~~(a)~~ "Online course" means a course of study that is

capable of generating a credit or a grade, that is provided in an

interactive ~~internet-connected~~ Internet-connected learning

environment, in which pupils are separated from their teachers by

time or location, or both, and, for a course provided by a district

or intermediate district, in which a teacher who holds a valid

Michigan teaching certificate that qualifies the teacher to teach

the course is responsible for providing instruction, determining

appropriate instructional methods for each pupil, diagnosing

learning needs, assessing pupil learning, prescribing intervention

strategies, reporting outcomes, and evaluating the effects of

instruction and support strategies.

includes all of the following:

(i) The state academic standards addressed in an online

course.

(ii) The online course content outline.

(iii) The online course required assessments.

(iv) The online course prerequisites.

(v) Expectations for actual instructor contact time with the

online learning pupil and other pupil-to-instructor communications.

(vi) Academic support available to the online learning pupil.

(vii) The online course learning outcomes and objectives.

(viii) The name of the institution or organization providing

the online content.

(ix) The name of the institution or organization providing the

online instructor.

(x) The course titles assigned by the district or intermediate

district and the course titles and course codes from the ~~national~~

~~center for education statistics~~ National Center for Education

Statistics (NCES) school codes for the exchange of data (SCED).

(xi) The number of eligible nonresident pupils that will be

accepted by the district or intermediate district in the online

course.

(xii) The results of the online course quality review using

the guidelines and model review process published by the Michigan

~~virtual university.~~Virtual University.

(d) ~~(c)~~ "Online learning pupil" means a pupil enrolled in 1 or

more online courses.

(e) ~~(d)~~ "Primary district" means the district that enrolls the

pupil and reports the pupil as a full-time equated pupil for pupil

membership purposes.

(f) "Providing district" means the district, intermediate

district, or community college that the primary district pays to

provide the online course.

(g) "Teacher of record" means a teacher who holds a valid

Michigan teaching certificate; who, where applicable, is endorsed

in the subject area and grade of the online course; and is

responsible for providing instruction, determining instructional

methods for each pupil, diagnosing learning needs, assessing pupil

learning, prescribing intervention strategies, reporting outcomes,

and evaluating the effects of instruction and support strategies.

Sec. 22a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$5,380,000,000.00 for 2014-2015~~

$5,277,000,000.00 for 2015-2016 for payments to districts and

qualifying public school academies to guarantee each district and

qualifying public school academy an amount equal to its 1994-95

total state and local per pupil revenue for school operating

purposes under section 11 of article IX of the state constitution

of 1963. Pursuant to section 11 of article IX of the state

constitution of 1963, this guarantee does not apply to a district

in a year in which the district levies a millage rate for school

district operating purposes less than it levied in 1994. However,

subsection (2) applies to calculating the payments under this

section. Funds allocated under this section that are not expended

in the state fiscal year for which they were allocated, as

determined by the department, may be used to supplement the

allocations under sections 22b and 51c in order to fully fund those

calculated allocations for the same fiscal year.

(2) To ensure that a district receives an amount equal to the

district's 1994-95 total state and local per pupil revenue for

school operating purposes, there is allocated to each district a

state portion of the district's 1994-95 foundation allowance in an

amount calculated as follows:

(a) Except as otherwise provided in this subsection, the state

portion of a district's 1994-95 foundation allowance is an amount

equal to the district's 1994-95 foundation allowance or $6,500.00,

whichever is less, minus the difference between the sum of the

product of the taxable value per membership pupil of all property

in the district that is nonexempt property times the district's

certified mills and, for a district with certified mills exceeding

12, the product of the taxable value per membership pupil of

property in the district that is commercial personal property times

the certified mills minus 12 mills and the quotient of the ad

valorem property tax revenue of the district captured under tax

increment financing acts divided by the district's membership. For

a district that has a millage reduction required under section 31

of article IX of the state constitution of 1963, the state portion

of the district's foundation allowance shall be calculated as if

that reduction did not occur. For a receiving district, if school

operating taxes are to be levied on behalf of a dissolved district

that has been attached in whole or in part to the receiving

district to satisfy debt obligations of the dissolved district

under section 12 of the revised school code, MCL 380.12, taxable

value per membership pupil of all property in the receiving

district that is nonexempt property and taxable value per

membership pupil of property in the receiving district that is

commercial personal property do not include property within the

geographic area of the dissolved district; ad valorem property tax

revenue of the receiving district captured under tax increment

financing acts does not include ad valorem property tax revenue

captured within the geographic boundaries of the dissolved district

under tax increment financing acts; and certified mills do not

include the certified mills of the dissolved district.

(b) For a district that had a 1994-95 foundation allowance

greater than $6,500.00, the state payment under this subsection

shall be the sum of the amount calculated under subdivision (a)

plus the amount calculated under this subdivision. The amount

calculated under this subdivision shall be equal to the difference

between the district's 1994-95 foundation allowance minus $6,500.00

and the current year hold harmless school operating taxes per

pupil. If the result of the calculation under subdivision (a) is

negative, the negative amount shall be an offset against any state

payment calculated under this subdivision. If the result of a

calculation under this subdivision is negative, there shall not be

a state payment or a deduction under this subdivision. The taxable

values per membership pupil used in the calculations under this

subdivision are as adjusted by ad valorem property tax revenue

captured under tax increment financing acts divided by the

district's membership. For a receiving district, if school

operating taxes are to be levied on behalf of a dissolved district

that has been attached in whole or in part to the receiving

district to satisfy debt obligations of the dissolved district

under section 12 of the revised school code, MCL 380.12, ad valorem

property tax revenue captured under tax increment financing acts do

not include ad valorem property tax revenue captured within the

geographic boundaries of the dissolved district under tax increment

financing acts.

(3) Beginning in 2003-2004, for pupils in membership in a

qualifying public school academy, there is allocated under this

section to the authorizing body that is the fiscal agent for the

qualifying public school academy for forwarding to the qualifying

public school academy an amount equal to the 1994-95 per pupil

payment to the qualifying public school academy under section 20.

(4) A district or qualifying public school academy may use

funds allocated under this section in conjunction with any federal

funds for which the district or qualifying public school academy

otherwise would be eligible.

(5) Except as otherwise provided in this subsection, for a

district that is formed or reconfigured after June 1, 2000 by

consolidation of 2 or more districts or by annexation, the

resulting district's 1994-95 foundation allowance under this

section beginning after the effective date of the consolidation or

annexation shall be the average of the 1994-95 foundation

allowances of each of the original or affected districts,

calculated as provided in this section, weighted as to the

percentage of pupils in total membership in the resulting district

in the state fiscal year in which the consolidation takes place who

reside in the geographic area of each of the original districts. If

an affected district's 1994-95 foundation allowance is less than

the 1994-95 basic foundation allowance, the amount of that

district's 1994-95 foundation allowance shall be considered for the

purpose of calculations under this subsection to be equal to the

amount of the 1994-95 basic foundation allowance. This subsection

does not apply to a receiving district unless there is a subsequent

consolidation or annexation that affects the district.

(6) Payments under this section are subject to section 25f.

(7) As used in this section:

(a) "1994-95 foundation allowance" means a district's 1994-95

foundation allowance calculated and certified by the department of

treasury or the superintendent under former section 20a as enacted

in 1993 PA 336 and as amended by 1994 PA 283.

(b) "Certified mills" means the lesser of 18 mills or the

number of mills of school operating taxes levied by the district in

1993-94.

for which a particular calculation is made.

(d) "Current year hold harmless school operating taxes per

pupil" means the per pupil revenue generated by multiplying a

district's 1994-95 hold harmless millage by the district's current

year taxable value per membership pupil. For a receiving district,

if school operating taxes are to be levied on behalf of a dissolved

district that has been attached in whole or in part to the

receiving district to satisfy debt obligations of the dissolved

district under section 12 of the revised school code, MCL 380.12,

taxable value per membership pupil does not include the taxable

value of property within the geographic area of the dissolved

district.

(e) "Dissolved district" means a district that loses its

organization, has its territory attached to 1 or more other

districts, and is dissolved as provided under section 12 of the

revised school code, MCL 380.12.

(f) "Hold harmless millage" means, for a district with a 1994-

95 foundation allowance greater than $6,500.00, the number of mills

by which the exemption from the levy of school operating taxes on a

homestead, qualified agricultural property, qualified forest

property, supportive housing property, industrial personal

property, ~~and~~ commercial personal property, and property occupied

by a public school academy could be reduced as provided in section

1211 of the revised school code, MCL 380.1211, and the number of

mills of school operating taxes that could be levied on all

property as provided in section 1211(2) of the revised school code,

MCL 380.1211, as certified by the department of treasury for the

1994 tax year. For a receiving district, if school operating taxes

are to be levied on behalf of a dissolved district that has been

attached in whole or in part to the receiving district to satisfy

debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, school operating taxes do not

include school operating taxes levied within the geographic area of

the dissolved district.

(g) "Homestead", "qualified agricultural property", "qualified

forest property", "supportive housing property", "industrial

personal property", and "commercial personal property" mean those

terms as defined in section 1211 of the revised school code, MCL

380.1211.

(h) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(i) "Nonexempt property" means property that is not a

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, or commercial personal property, or property occupied by

a public school academy.

(j) "Qualifying public school academy" means a public school

academy that was in operation in the 1994-95 school year and is in

operation in the current state fiscal year.

(k) "Receiving district" means a district to which all or part

of the territory of a dissolved district is attached under section

12 of the revised school code, MCL 380.12.

(l) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes as defined in

section 20.

(m) "Tax increment financing acts" means 1975 PA 197, MCL

125.1651 to 125.1681, the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830, the local development financing

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

or the corridor improvement authority act, 2005 PA 280, MCL

125.2871 to 125.2899.

(n) "Taxable value per membership pupil" means each of the

following divided by the district's membership:

(i) For the number of mills by which the exemption from the

levy of school operating taxes on a homestead, qualified

agricultural property, qualified forest property, supportive

housing property, industrial personal property, ~~and~~ commercial

personal property, and property occupied by a public school academy

may be reduced as provided in section 1211 of the revised school

code, MCL 380.1211, the taxable value of homestead, qualified

agricultural property, qualified forest property, supportive

housing property, industrial personal property, ~~and~~ commercial

personal property, and property occupied by a public school academy

for the calendar year ending in the current state fiscal year. For

a receiving district, if school operating taxes are to be levied on

behalf of a dissolved district that has been attached in whole or

in part to the receiving district to satisfy debt obligations of

the dissolved district under section 12 of the revised school code,

MCL 380.12, mills do not include mills within the geographic area

of the dissolved district.

(ii) For the number of mills of school operating taxes that

may be levied on all property as provided in section 1211(2) of the

revised school code, MCL 380.1211, the taxable value of all

property for the calendar year ending in the current state fiscal

year. For a receiving district, if school operating taxes are to be

levied on behalf of a dissolved district that has been attached in

whole or in part to the receiving district to satisfy debt

obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, school operating taxes do not

include school operating taxes levied within the geographic area of

the dissolved district.

Sec. 22b. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$3,434,000,000.00 for 2014-2015~~

$3,912,400,000.00 for 2015-2016 for discretionary nonmandated

payments to districts under this section. Funds allocated under

this section that are not expended in the state fiscal year for

which they were allocated, as determined by the department, may be

used to supplement the allocations under sections 22a and 51c in

order to fully fund those calculated allocations for the same

fiscal year.

(2) Subject to subsection (3) and section 296, the allocation

to a district under this section shall be an amount equal to the

sum of the amounts calculated under sections 20, 51a(2), 51a(3),

and 51a(11), minus the sum of the allocations to the district under

sections 22a and 51c.

(3) In order to receive an allocation under subsection (1),

each district shall do all of the following:

(a) Comply with section 1280b of the revised school code, MCL

380.1280b.

(b) Comply with sections 1278a and 1278b of the revised school

code, MCL 380.1278a and 380.1278b.

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

(d) Comply with section 1230g of the revised school code, MCL

380.1230g.

(e) Comply with section 21f.

(4) Districts are encouraged to use funds allocated under this

section for the purchase and support of payroll, human resources,

and other business function software that is compatible with that

of the intermediate district in which the district is located and

with other districts located within that intermediate district.

(5) From the allocation in subsection (1), the department

shall pay up to $1,000,000.00 in litigation costs incurred by this

state related to commercial or industrial property tax appeals,

including, but not limited to, appeals of classification, that

impact revenues dedicated to the state school aid fund.

(6) From the allocation in subsection (1), the department

shall pay up to $1,000,000.00 in litigation costs incurred by this

state associated with lawsuits filed by 1 or more districts or

intermediate districts against this state. If the allocation under

this section is insufficient to fully fund all payments required

under this section, the payments under this subsection shall be

made in full before any proration of remaining payments under this

section.

(7) It is the intent of the legislature that all

constitutional obligations of this state have been fully funded

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

an entity receiving funds under this article that challenges the

legislative determination of the adequacy of this funding or

alleges that there exists an unfunded constitutional requirement,

the state budget director may escrow or allocate from the

discretionary funds for nonmandated payments under this section the

amount as may be necessary to satisfy the claim before making any

payments to districts under subsection (2). If funds are escrowed,

the escrowed funds are a work project appropriation and the funds

are carried forward into the following fiscal year. The purpose of

the work project is to provide for any payments that may be awarded

to districts as a result of litigation. The work project shall be

completed upon resolution of the litigation.

(8) If the local claims review board or a court of competent

jurisdiction makes a final determination that this state is in

violation of section 29 of article IX of the state constitution of

1963 regarding state payments to districts, the state budget

director shall use work project funds under subsection (7) or

allocate from the discretionary funds for nonmandated payments

under this section the amount as may be necessary to satisfy the

amount owed to districts before making any payments to districts

under subsection (2).

(9) If a claim is made in court that challenges the

legislative determination of the adequacy of funding for this

state's constitutional obligations or alleges that there exists an

unfunded constitutional requirement, any interested party may seek

an expedited review of the claim by the local claims review board.

If the claim exceeds $10,000,000.00, this state may remove the

action to the court of appeals, and the court of appeals shall have

and shall exercise jurisdiction over the claim.

(10) If payments resulting from a final determination by the

local claims review board or a court of competent jurisdiction that

there has been a violation of section 29 of article IX of the state

constitution of 1963 exceed the amount allocated for discretionary

nonmandated payments under this section, the legislature shall

provide for adequate funding for this state's constitutional

obligations at its next legislative session.

(11) If a lawsuit challenging payments made to districts

related to costs reimbursed by federal title XIX Medicaid funds is

filed against this state, then, for the purpose of addressing

potential liability under such a lawsuit, the state budget director

may place funds allocated under this section in escrow or allocate

money from the funds otherwise allocated under this section, up to

a maximum of 50% of the amount allocated in subsection (1). If

funds are placed in escrow under this subsection, those funds are a

work project appropriation and the funds are carried forward into

the following fiscal year. The purpose of the work project is to

provide for any payments that may be awarded to districts as a

result of the litigation. The work project shall be completed upon

resolution of the litigation. In addition, this state reserves the

right to terminate future federal title XIX Medicaid reimbursement

payments to districts if the amount or allocation of reimbursed

funds is challenged in the lawsuit. As used in this subsection,

"title XIX" means title XIX of the social security act, 42 USC 1396

to 1396v.

(12) Payments under this section are subject to section 25f.

Sec. 22c. From the appropriation in section 11, there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

~~$103,000,000.00~~ $24,000,000.00 to make equity payments to districts

that have a foundation allowance or per-pupil payment as calculated

under section 20 for ~~2014-2015~~ 2015-2016 of less than ~~$7,251.00.~~

$7,550.00. The equity payment for a district shall be an amount per

membership pupil equal to the lesser of ~~$125.00~~ $25.00 or the

difference between ~~$7,251.00~~ $7,550.00 and the district's ~~2014-2015~~

2015-2016 foundation allowance or per-pupil payment as calculated

under section 20.

Sec. 22d. (1) From the appropriation in section 11, an amount

not to exceed $2,584,600.00 is allocated for ~~2014-2015~~ 2015-2016

for supplemental payments to rural districts under this section.

(2) From the allocation under subsection (1), there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

$957,300.00 for payments under this subsection to districts that

meet all of the following:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

least 1 of the following:

(i) Is located in the Upper Peninsula at least 30 miles from

any other public school building.

(ii) Is located on an island that is not accessible by bridge.

(3) The amount of the additional funding to each eligible

district under subsection (2) shall be determined under a spending

plan developed as provided in this subsection and approved by the

superintendent of public instruction. The spending plan shall be

developed cooperatively by the intermediate superintendents of each

intermediate district in which an eligible district is located. The

intermediate superintendents shall review the financial situation

of each eligible district, determine the minimum essential

financial needs of each eligible district, and develop and agree on

a spending plan that distributes the available funding under

subsection (2) to the eligible districts based on those financial

needs. The intermediate superintendents shall submit the spending

plan to the superintendent of public instruction for approval. Upon

approval by the superintendent of public instruction, the amounts

specified for each eligible district under the spending plan are

allocated under subsection (2) and shall be paid to the eligible

districts in the same manner as payments under section 22b.

(4) Subject to subsection (6), from the allocation in

subsection (1), there is allocated for ~~2014-2015~~ 2015-2016 an

amount not to exceed $1,627,300.00 for payments under this

subsection to districts that meet all of the following:

(a) The district has 5.0 or fewer pupils per square mile as

determined by the department.

(b) The district has a total square mileage greater than 200.0

or is 1 of 2 districts that have consolidated transportation

services and have a combined total square mileage greater than

200.0.

(5) The funds allocated under subsection (4) shall be

allocated on an equal per-pupil basis.

(6) A district receiving funds allocated under subsection (2)

is not eligible for funding allocated under subsection (4).

Sec. 22g. (1) From the funds appropriated in section 11, there

is allocated for ~~2014-2015~~ 2015-2016 only an amount not to exceed

~~$2,000,000.00~~ $5,000,000.00 for competitive assistance grants to

districts and intermediate districts.

(2) Funds received under this section may be used for

reimbursement of transition costs associated with the consolidation

or annexation of ~~operations or services between 2 or more~~ districts

, or intermediate districts. ~~, or other local units of government,~~

~~the consolidation or sharing of technology and data operations or~~

~~services between 50 or more districts or 5 or more intermediate~~

~~districts, or the consolidation of districts or intermediate~~

~~districts.~~ Grant funding shall be available for consolidations or

annexations that occur on or after June 1, ~~2014. The department~~

~~shall develop an application process and method of grant~~

~~distribution. The department shall give priority to applicants that~~

~~propose including at least 1 of the following statewide activities:~~

2015. Districts may spend funds allocated under this section over 3

fiscal years.

~~(a) A comprehensive, research-based academic early warning~~

~~indicator and dropout prevention solution.~~

~~(b) A data-driven system for identifying early reading~~

~~challenges and establishing individual reading development plans~~

~~for every student by the end of grade 3.~~

Sec. 23a. (1) A dropout recovery program operated by a

district qualifies for the special membership counting provisions

of section ~~6(4)(ff)~~ 6(4)(dd) and the hours and day of pupil

instruction exemption under section 101(12) if the dropout recovery

program meets all of the following:

(a) Enrolls only eligible pupils.

(b) Provides an advocate. An advocate may serve in that role

for more than 1 pupil but no more than 50 pupils. An advocate may

be employed by the district or may be provided by an education

management organization that is partnering with the district.

Before an individual is assigned to be an advocate for a pupil in

the dropout recovery program, the district shall comply with

sections 1230 and 1230a of the revised school code, MCL 380.1230

and 380.1230a, with respect to that individual.

(d) Monitors the pupil's progress against the written learning

plan.

(e) Requires each pupil to make satisfactory monthly progress,

as defined by the district under subsection (2).

(f) Reports the pupil's progress results to the partner

district at least monthly.

(g) The program may be operated on or off a district school

campus, but may be operated using distance learning online only if

the program provides a computer and internet access for each

eligible pupil participating in the program.

(h) Is operated throughout the entire calendar year.

(i) If the district partners with an education management

organization for the program, the education management organization

has a dropout recovery program partnership relationship with at

least 1 other district.

(2) A district operating a dropout recovery program under this

section shall adopt a definition of satisfactory monthly progress

that is consistent with the definition of that term under

subsection (3).

(3) As used in this section:

(a) "Advocate" means an adult available to meet in person with

assigned pupils, as needed, to conduct social interventions, to

proctor final examinations, and to provide academic and social

support to pupils enrolled in the district's dropout recovery

program.

(b) "Education management organization" means a private

provider that operates 1 or more other dropout recovery programs

that meet the requirements of this section in partnership with 1 or

more districts.

school under the mandatory expulsion provisions in section 1311 or

1311a of the revised school code, MCL 380.1311 and 380.1311a, a

pupil who has been suspended or expelled from school under a local

policy, a pupil who is referred by a court, a pupil who is pregnant

or is a parent, a pupil who was previously a dropout, or a pupil

who is determined by the district to be at risk of dropping out.

(d) "Satisfactory monthly progress" means an amount of

progress that is measurable on a monthly basis and that, if

continued for a full 12 months, would result in the same amount of

academic credit being awarded to the pupil as would be awarded to a

general education pupil completing a full school year. Satisfactory

monthly progress may include a lesser required amount of progress

for the first 2 months a pupil participates in the program.

(e) "Written learning plan" means a written plan developed in

conjunction with the advocate that includes the plan start and end

dates, courses to be taken, credit to be earned for each course,

teacher of record for each course, and advocate name and contact

information.

Sec. 24. (1) From the appropriation in section 11, there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

$8,000,000.00 for payments to the educating district or

intermediate district for educating pupils assigned by a court or

the department of human services to reside in or to attend a

juvenile detention facility or child caring institution licensed by

the department of human services and approved by the department to

provide an on-grounds education program. The amount of the payment

under this section to a district or intermediate district shall be

calculated as prescribed under subsection (2).

(2) The total amount allocated under this section shall be

allocated by paying to the educating district or intermediate

district an amount equal to the lesser of the district's or

intermediate district's added cost or the department's approved

per-pupil allocation for the district or intermediate district. For

the purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils assigned by a court or the department of

human services to reside in or to attend a juvenile detention

facility or child caring institution licensed by the department of

human services or the department of licensing and regulatory

affairs and approved by the department to provide an on-grounds

education program. Added cost shall be computed by deducting all

other revenue received under this article for pupils described in

this section from total costs, as approved by the department, in

whole or in part, for educating those pupils in the on-grounds

education program or in a program approved by the department that

is located on property adjacent to a juvenile detention facility or

child caring institution. Costs reimbursed by federal funds are not

included.

(b) "Department's approved per-pupil allocation" for a

district or intermediate district shall be determined by dividing

the total amount allocated under this section for a fiscal year by

the full-time equated membership total for all pupils approved by

the department to be funded under this section for that fiscal year

for the district or intermediate district.

(3) A district or intermediate district educating pupils

described in this section at a residential child caring institution

may operate, and receive funding under this section for, a

department-approved on-grounds educational program for those pupils

that is longer than 181 days, but not longer than 233 days, if the

child caring institution was licensed as a child caring institution

and offered in 1991-92 an on-grounds educational program that was

longer than 181 days but not longer than 233 days and that was

operated by a district or intermediate district.

(4) Special education pupils funded under section 53a shall

not be funded under this section.

Sec. 24a. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$2,195,500.00 for 2014-2015~~

$2,189,800.00 for 2015-2016 for payments to intermediate districts

for pupils who are placed in juvenile justice service facilities

operated by the department of human services. Each intermediate

district shall receive an amount equal to the state share of those

costs that are clearly and directly attributable to the educational

programs for pupils placed in facilities described in this section

that are located within the intermediate district's boundaries. The

intermediate districts receiving payments under this section shall

cooperate with the department of human services to ensure that all

funding allocated under this section is utilized by the

intermediate district and department of human services for

educational programs for pupils described in this section. Pupils

described in this section are not eligible to be funded under

section 24. However, a program responsibility or other fiscal

responsibility associated with these pupils shall not be

transferred from the department of human services to a district or

intermediate district unless the district or intermediate district

consents to the transfer.

Sec. 24c. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$1,500,000.00 for 2014-2015~~

$1,497,400.00 for 2015-2016 for payments to districts for pupils

who are enrolled in a nationally administered community-based

education and youth mentoring program, known as the youth challenge

program, that is administered by the department of military and

veterans affairs. Both of the following apply to a district

receiving payments under this section:

(a) The district shall contract with the department of

military and veterans affairs to ensure that all funding allocated

under this section is utilized by the district and the department

of military and veterans affairs for the youth challenge program.

(b) The district may retain for its administrative expenses an

amount not to exceed 3% of the amount of the payment the district

receives under this section.

Sec. 25f. (1) From the state school aid fund money

appropriated in section 11, there is allocated an amount not to

exceed ~~$2,000,000.00 for 2014-2015~~ $1,000,000.00 for 2015-2016 for

~~payments to strict discipline academies established under sections~~

~~1311b to 1311m of the revised school code, MCL 380.1311b to~~

~~380.1311m, as provided under this section and for~~ the purposes

described in subsection ~~(5).~~(2).

~~(2) In order to receive funding under this section, a strict~~

~~discipline academy shall first comply with section 25e and use the~~

~~pupil transfer process under that section for changes in enrollment~~

~~as prescribed under that section.~~

~~(3) Not later than June 30, 2015, a strict discipline academy~~

~~shall report to the center and to the department, in a manner~~

~~prescribed by the center and the department, the following~~

~~information for 2014-2015:~~

~~(a) The number of pupils enrolled and in attendance at the~~

~~strict discipline academy.~~

~~(b) The number of days each pupil enrolled was in attendance~~

~~at the strict discipline academy, not to exceed 180.~~

~~(4) The amount of the payment to a strict discipline academy~~

~~under this section shall be an amount equal to the difference~~

~~between the product of 1/180 of the per-pupil payment as calculated~~

~~under section 20 for the strict discipline academy multiplied by~~

~~the number of days of pupil attendance reported under subsection~~

~~(3)(b) minus the product of the per-pupil payment as calculated~~

~~under section 20 for the strict discipline academy multiplied by~~

~~the pupils in membership at the strict discipline academy as~~

~~calculated under section 6 and as adjusted by section 25e.~~

(2) ~~(5)~~ If the operation of the special membership counting

provisions under section 6(4)(dd) and the other membership counting

provisions under section 6(4) result in a pupil being counted as

more than 1.0 FTE in a fiscal year, then the payment made for the

pupil under sections 22a and 22b shall not be based on more than

1.0 FTE for that pupil, and that portion of the FTE that exceeds

1.0 shall be paid under this section in an amount equal to that

portion multiplied by the educating district's foundation allowance

or per-pupil payment calculated under section 20.

(3) ~~(6)~~ If the funds allocated under this section are

insufficient to fully fund the adjustments under ~~subsections (4)~~

~~and (5),~~ subsection (2), payments under this section shall be

prorated on an equal per-pupil basis.

(4) ~~(7)~~ Payments to districts under this section shall be made

according to the payment schedule under section 17b.

Sec. 26a. From the funds appropriated in section 11, there is

allocated an amount not to exceed $26,300,000.00 for ~~2014-2015~~

2015-2016 to reimburse districts and intermediate districts

pursuant to section 12 of the Michigan renaissance zone act, 1996

PA 376, MCL 125.2692, for taxes levied in ~~2014.~~ 2015. The

allocations shall be made not later than 60 days after the

department of treasury certifies to the department and to the state

budget director that the department of treasury has received all

necessary information to properly determine the amounts due to each

eligible recipient.

Sec. 26b. (1) From the appropriation in section 11, there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

~~$4,210,000.00~~ $4,276,800.00 for payments to districts, intermediate

districts, and community college districts for the portion of the

payment in lieu of taxes obligation that is attributable to

districts, intermediate districts, and community college districts

pursuant to section 2154 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.2154.

(2) If the amount appropriated under this section is not

sufficient to fully pay obligations under this section, payments

shall be prorated on an equal basis among all eligible districts,

intermediate districts, and community college districts.

Sec. 26c. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$293,100.00 for 2014-2015~~

$610,000.00 for 2015-2016 to the promise zone fund created in

subsection (3).

(2) Funds allocated to the promise zone fund under this

section shall be used solely for payments to eligible districts and

intermediate districts that have a promise zone development plan

approved by the department of treasury under section 7 of the

Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

(3) The promise zone fund is created as a separate account

within the state school aid fund to be used solely for the purposes

of the Michigan promise zone authority act, 2008 PA 549, MCL

390.1661 to 390.1679. All of the following apply to the promise

zone fund:

(a) The state treasurer shall direct the investment of the

promise zone fund. The state treasurer shall credit to the promise

zone fund interest and earnings from fund investments.

(b) Money in the promise zone fund at the close of a fiscal

year shall remain in the promise zone fund and shall not lapse to

the general fund.

(4) Subject to subsection (2), the state treasurer may make

payments from the promise zone fund to eligible districts and

intermediate districts pursuant to the Michigan promise zone

House Bill No. 4115 as amended April 28, 2015

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

for the purposes of a promise zone authority created under that

act.

Sec. 31a. (1) From the state school aid fund money

appropriated in section 11, there is allocated for ~~2014-2015~~ 2015-

2016 an amount not to exceed $317,695,500.00 for payments to

eligible districts, eligible public school academies, and the

education achievement system for the purposes of ensuring that

pupils are proficient in reading by the end of grade 3 and that

high school graduates are career and college ready and for the

purposes under subsections ~~(6) and (7).~~(5) and (6).

(2) [~~For~~ If the total amount allocated under subsection (1) is less

than $347,695,500.00, then for] a district or public school academy, or the education

achievement system, to be eligible to receive funding under this

section, other than funding under subsection ~~(6) or (7),~~ (5) or

(6), the sum of the district's or public school academy's or the

education achievement system's combined state and local revenue per

membership pupil in the current state fiscal year, as calculated

under section 20, must be less than or equal to the basic

foundation allowance under section 20 for the current state fiscal

year.

(3) For a district or public school academy, or the education

achievement system, to be eligible to receive funding under this

section, other than funding under subsection (5) or (6), the

district or public school academy, or the education achievement

system, must implement a multi-tiered system of supports that is an

evidence-based model that uses data-driven problem solving to

integrate academic and behavioral instruction and that uses

House Bill No. 4115 as amended April 29, 2015

intervention delivered to all pupils in varying intensities based

on pupil needs. To qualify a district or public school academy, or

the education achievement system, for funding under this section, a

multi-tiered system of supports must provide at least all of the

following essential elements:

(a) Implements effective instruction for all learners.

(b) Intervenes early.

intervention that provides the following:

(i) A core curriculum and classroom interventions available to

all pupils that meet the needs of [most ] pupils.

(ii) Targeted group interventions[.

]

(iii) Intense individual interventions[.

]

(d) Monitors pupil progress to inform instruction.

(e) Uses data to make instructional decisions.

(f) Uses assessments including universal screening,

diagnostics, and progress monitoring.

(g) Engages families and the community.

(h) Implements evidence-based, scientifically validated,

instruction and intervention.

(i) Implements instruction and intervention practices with

fidelity.

(j) Uses a collaborative problem-solving model.

(4) ~~(3)~~ Except as otherwise provided in this subsection, an

eligible district or eligible public school academy or the

education achievement system shall receive under this section for

each membership pupil in the district or public school academy or

the education achievement system who met the income eligibility

criteria for free breakfast, lunch, or milk, as determined under

the Richard B. Russell national school lunch act, 42 USC 1751 to

1769, and as reported to the department in the form and manner

prescribed by the department not later than the fifth Wednesday

after the pupil membership count day of the immediately preceding

fiscal year and adjusted not later than December 31 of the

immediately preceding fiscal year, an amount per pupil equal to

11.5% of the sum of the district's foundation allowance or the

public school academy's or the education achievement system's per

pupil amount calculated under section 20, not to exceed the basic

foundation allowance under section 20 for the current state fiscal

year, or of the public school academy's or the education

achievement system's per membership pupil amount calculated under

section 20 for the current state fiscal year. However, a public

school academy that began operations as a public school academy, or

an achievement school that began operations as an achievement

school, after the pupil membership count day of the immediately

preceding school year shall receive under this section for each

membership pupil in the public school academy or in the education

achievement system who met the income eligibility criteria for free

breakfast, lunch, or milk, as determined under the Richard B.

Russell national school lunch act and as reported to the department

not later than the fifth Wednesday after the pupil membership count

day of the current fiscal year and adjusted not later than December

31 of the current fiscal year, an amount per pupil equal to 11.5%

of the public school academy's or the education achievement

system's per membership pupil amount calculated under section 20

for the current state fiscal year.

~~(4) Except as otherwise provided in this section, a district~~

~~or public school academy, or the education achievement system,~~

~~receiving funding under this section shall use that money only to~~

~~provide instructional programs and direct noninstructional~~

~~services, including, but not limited to, medical, mental health, or~~

~~counseling services, for at-risk pupils; for school health clinics;~~

~~and for the purposes of subsection (5), (6), (7), or (10). In~~

~~addition, a district that is a school district of the first class~~

~~or a district or public school academy in which at least 50% of the~~

~~pupils in membership met the income eligibility criteria for free~~

~~breakfast, lunch, or milk in the immediately preceding state fiscal~~

~~year, as determined and reported as described in subsection (3), or~~

~~the education achievement system if it meets this requirement, may~~

~~use not more than 20% of the funds it receives under this section~~

~~for school security. A district, the public school academy, or the~~

~~education achievement system shall not use any of that money for~~

~~administrative costs. The instruction or direct noninstructional~~

~~services provided under this section may be conducted before or~~

~~after regular school hours or by adding extra school days to the~~

~~school year.~~

~~(5) A district or public school academy that receives funds~~

~~under this section and that operates a school breakfast program~~

~~under section 1272a of the revised school code, MCL 380.1272a, or~~

~~the education achievement system if it operates a school breakfast~~

~~program, shall use from the funds received under this section an~~

~~amount, not to exceed $10.00 per pupil for whom the district or~~

~~public school academy or the education achievement system receives~~

~~funds under this section, necessary to pay for costs associated~~

~~with the operation of the school breakfast program.~~

(5) ~~(6)~~ From the funds allocated under subsection (1), there

is allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

$3,557,300.00 to support child and adolescent health centers. These

grants shall be awarded for 5 consecutive years beginning with

2003-2004 in a form and manner approved jointly by the department

and the department of community health. Each grant recipient shall

remain in compliance with the terms of the grant award or shall

forfeit the grant award for the duration of the 5-year period after

the noncompliance. To continue to receive funding for a child and

adolescent health center under this section a grant recipient shall

ensure that the child and adolescent health center has an advisory

committee and that at least one-third of the members of the

advisory committee are parents or legal guardians of school-aged

children. A child and adolescent health center program shall

recognize the role of a child's parents or legal guardian in the

physical and emotional well-being of the child. Funding under this

subsection shall be used to support child and adolescent health

center services provided to children up to age 21. ~~If any funds~~

~~allocated under this subsection are not used for the purposes of~~

~~this subsection for the fiscal year in which they are allocated,~~

~~those unused funds shall be used that fiscal year to avoid or~~

~~minimize any proration that would otherwise be required under~~

~~subsection (14) for that fiscal year.~~

(6) ~~(7)~~ From the funds allocated under subsection (1), there

is allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

$5,150,000.00 for the state portion of the hearing and vision

screenings as described in section 9301 of the public health code,

1978 PA 368, MCL 333.9301. A local public health department shall

pay at least 50% of the total cost of the screenings. The frequency

of the screenings shall be as required under R 325.13091 to R

325.13096 and R 325.3271 to R 325.3276 of the Michigan

administrative code. Funds shall be awarded in a form and manner

approved jointly by the department and the department of community

health. Notwithstanding section 17b, payments to eligible entities

under this subsection shall be paid on a schedule determined by the

department.

~~(8) Each district or public school academy receiving funds~~

~~under this section and the education achievement system shall~~

~~submit to the department by July 15 of each fiscal year a report,~~

~~not to exceed 10 pages, on the usage by the district or public~~

~~school academy or the education achievement system of funds under~~

~~this section, which report shall include a brief description of~~

~~each program conducted or services performed by the district or~~

~~public school academy or the education achievement system using~~

~~funds under this section, the amount of funds under this section~~

~~allocated to each of those programs or services, the total number~~

~~of at-risk pupils served by each of those programs or services, and~~

~~the data necessary for the department and the department of human~~

~~services to verify matching funds for the temporary assistance for~~

~~needy families program. If a district or public school academy or~~

~~the education achievement system does not comply with this~~

~~subsection, the department shall withhold an amount equal to the~~

~~August payment due under this section until the district or public~~

~~school academy or the education achievement system complies with~~

~~this subsection. If the district or public school academy or the~~

~~education achievement system does not comply with this subsection~~

~~by the end of the state fiscal year, the withheld funds shall be~~

~~forfeited to the school aid fund.~~

~~(9) In order to receive funds under this section, a district~~

~~or public school academy or the education achievement system shall~~

~~allow access for the department or the department's designee to~~

~~audit all records related to the program for which it receives~~

~~those funds. The district or public school academy or the education~~

~~achievement system shall reimburse the state for all disallowances~~

~~found in the audit.~~

~~(10) Subject to subsections (5), (6), and (7), a district may~~

~~use up to 100% of the funds it receives under this section to~~

~~implement schoolwide reform in schools with 40% or more of their~~

~~pupils identified as at-risk pupils by providing supplemental~~

~~instructional or noninstructional services consistent with the~~

~~school improvement plan.~~

(7) ~~(11)~~ If necessary, and before any proration required under

section 296, the department shall prorate payments under this

section by reducing the amount of the per pupil payment under this

section by a dollar amount calculated by determining the amount by

which the amount necessary to fully fund the requirements of this

section exceeds the maximum amount allocated under this section and

then dividing that amount by the total statewide number of pupils

who met the income eligibility criteria for free breakfast, lunch,

or milk in the immediately preceding fiscal year, as described in

subsection (3).

(8) ~~(12)~~ If a district is formed by consolidation after June

1, 1995, and if 1 or more of the original districts ~~was~~ were not

eligible before the consolidation for an additional allowance under

this section, the amount of the additional allowance under this

section for the consolidated district shall be based on the number

of pupils described in subsection (1) enrolled in the consolidated

district who reside in the territory of an original district that

was eligible before the consolidation for an additional allowance

under this section. In addition, if a district is dissolved

pursuant to section 12 of the revised school code, MCL 380.12, the

intermediate district to which the dissolved school district was

constituent shall determine the estimated number of pupils that

meet the income eligibility criteria for free breakfast, lunch, or

milk, as described under subsection (3), enrolled in each of the

other districts within the intermediate district and provide that

estimate to the department for the purposes of distributing funds

under this section within 60 days after the school district is

declared dissolved.

~~(13) As used in this section, "at-risk pupil" means a pupil~~

~~for whom the district has documentation that the pupil meets any of~~

~~the following criteria:~~

~~(a) Is a victim of child abuse or neglect.~~

~~(b) Is a pregnant teenager or teenage parent.~~

~~(c) Has a family history of school failure, incarceration, or~~

~~substance abuse.~~

~~(d) For pupils for whom the results of the Michigan merit~~

~~examination have been received, is a pupil who does not meet the~~

~~other criteria under this subsection but who did not achieve~~

~~proficiency on the reading, writing, mathematics, science, or~~

~~social studies components of the most recent Michigan merit~~

~~examination for which results for the pupil have been received.~~

~~(e) For pupils in grades K-3, is a pupil who is at risk of not~~

~~meeting the district's core academic curricular objectives in~~

~~English language arts or mathematics.~~

~~(f) The pupil is enrolled in a priority or priority-successor~~

~~school, as defined in the elementary and secondary education act of~~

~~2001 flexibility waiver approved by the United States department of~~

~~education.~~

~~(g) The pupil did not achieve a score of at least proficient~~

~~on 2 or more state-administered assessments for English language~~

~~arts, mathematics, science, or social studies.~~

~~(h) For high school pupils in grades not assessed by the~~

~~state, the pupil did not receive a satisfactory score on 2 or more~~

~~end-of-course examinations that are aligned with state standards in~~

~~English language arts, mathematics, science, or social studies. For~~

~~middle school pupils in grades not assessed by the state, the pupil~~

~~did not receive a satisfactory score on 2 or more end-of-semester~~

~~or end-of-trimester examinations that are aligned with state~~

~~standards in science or social studies. For pupils in the~~

~~elementary grades in grades and subjects not assessed by the state,~~

~~the pupil did not receive a satisfactory score or did not have a~~

~~satisfactory outcome on 2 or more interim assessments in English~~

~~language arts, mathematics, science, or social studies.~~

~~(i) In the absence of state or local assessment data, the~~

~~pupil meets at least 2 of the following criteria, as documented in~~

~~a form and manner approved by the department:~~

(i~~) The pupil is eligible for free breakfast, lunch, or milk.~~

(ii~~) The pupil is absent more than 10% of enrolled days or 10~~

~~school days during the school year.~~

(~~iii~~~~) The pupil is homeless.~~

(iv~~) The pupil is a migrant.~~

(v~~) The pupil is an English language learner.~~

(vi~~) The pupil is an immigrant who has immigrated within the~~

~~immediately preceding 3 years.~~

(~~vii~~~~) The pupil did not complete high school in 4 years and is~~

~~still continuing in school as identified in the Michigan cohort~~

~~graduation and dropout report.~~

~~(14) Beginning in 2014-2015, if a district, public school~~

~~academy, or the education achievement system does not demonstrate~~

~~to the satisfaction of the department that at least 50% of at-risk~~

~~pupils are reading at grade level by the end of grade 3 as measured~~

~~by the state assessment and demonstrate to the satisfaction of the~~

~~department improvement over 3 consecutive years in the percentage~~

~~of at-risk pupils that are career- and college-ready as measured by~~

~~the pupil's score on each of the individual subject areas on the~~

~~college entrance examination portion of the Michigan merit~~

~~examination under section 1279g(2)(a) of the revised school code,~~

~~MCL 380.1279g, the district, public school academy, or education~~

~~achievement system shall ensure all of the following:~~

~~(a) The district, public school academy, or the education~~

~~achievement system shall determine the proportion of total at-risk~~

~~pupils that represents the number of pupils in grade 3 that are not~~

~~reading at grade level by the end of grade 3, and the district,~~

~~public school academy, or the education achievement system shall~~

~~expend that same proportion multiplied by 1/2 of its total at-risk~~

~~funds under this section on tutoring and other methods of improving~~

~~grade 3 reading levels.~~

~~(b) The district, public school academy, or the education~~

~~achievement system shall determine the proportion of total at-risk~~

~~pupils that represent the number of pupils in grade 11 that are not~~

~~career- and college-ready as measured by the student's score on~~

~~each of the individual subject areas on the college entrance~~

~~examination portion of the Michigan merit examination under section~~

~~1279g(2)(a) of the revised school code, MCL 380.1279g, and the~~

~~district, public school academy, or the education achievement~~

~~system shall expend that same proportion multiplied by 1/2 of its~~

~~total at-risk funds under this section on tutoring and other~~

~~activities to improve scores on the college entrance examination~~

~~portion of the Michigan merit examination.~~

~~(15) As used in subsection (14), "total at risk pupils" means~~

~~the sum of the number of pupils in grade 3 that are not reading at~~

~~grade level by the end of third grade and the number of pupils in~~

~~grade 11 that are not career- and college-ready as measured by the~~

~~student's score on each of the individual subject areas on the~~

~~college entrance examination portion of the Michigan merit~~

~~examination under section 1279g(2)(a) of the revised school code,~~

~~MCL 380.1279g.~~

~~(16) A district or public school academy that receives funds~~

~~under this section or the education achievement system may use~~

~~funds received under this section to provide an anti-bullying or~~

~~crisis intervention program.~~

Sec. 31d. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $22,495,100.00 for ~~2014-2015~~

2015-2016 for the purpose of making payments to districts and other

eligible entities under this section.

(2) The amounts allocated from state sources under this

section shall be used to pay the amount necessary to reimburse

districts for 6.0127% of the necessary costs of the state mandated

portion of the school lunch programs provided by those districts.

The amount due to each district under this section shall be

computed by the department using the methods of calculation adopted

by the Michigan supreme court in the consolidated cases known as

Durant v State of Michigan, Michigan supreme court docket no.

104458-104492.

(3) The payments made under this section include all state

payments made to districts so that each district receives at least

6.0127% of the necessary costs of operating the state mandated

portion of the school lunch program in a fiscal year.

(4) The payments made under this section to districts and

other eligible entities that are not required under section 1272a

of the revised school code, MCL 380.1272a, to provide a school

lunch program shall be in an amount not to exceed $10.00 per

eligible pupil plus 5 cents for each free lunch and 2 cents for

each reduced price lunch provided, as determined by the department.

(5) From the federal funds appropriated in section 11, there

is allocated for ~~2014-2015~~ 2015-2016 all available federal funding,

estimated at $510,000,000.00 for the national school lunch program

and all available federal funding, estimated at $3,200,000.00 for

the emergency food assistance program.

(6) Notwithstanding section 17b, payments to eligible entities

other than districts under this section shall be paid on a schedule

determined by the department.

(7) In purchasing food for a school lunch program funded under

this section, preference shall be given to food that is grown or

produced by Michigan businesses if it is competitively priced and

of comparable quality.

Sec. 31f. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $5,625,000.00 for ~~2014-2015~~ 2015-

2016 for the purpose of making payments to districts to reimburse

for the cost of providing breakfast.

(2) The funds allocated under this section for school

breakfast programs shall be made available to all eligible

applicant districts that meet all of the following criteria:

(a) The district participates in the federal school breakfast

program and meets all standards as prescribed by 7 CFR parts 220

and 245.

(b) Each breakfast eligible for payment meets the federal

standards described in subdivision (a).

(3) The payment for a district under this section is at a per

meal rate equal to the lesser of the district's actual cost or 100%

of the statewide average cost of a breakfast served, as determined

and approved by the department, less federal reimbursement,

participant payments, and other state reimbursement. The statewide

average cost shall be determined by the department using costs as

reported in a manner approved by the department for the preceding

school year.

(4) Notwithstanding section 17b, payments under this section

may be made pursuant to an agreement with the department.

(5) In purchasing food for a school breakfast program funded

under this section, preference shall be given to food that is grown

or produced by Michigan businesses if it is competitively priced

and of comparable quality.

Sec. 32d. (1) From the funds appropriated in section 11, there

is allocated to eligible intermediate districts and consortia of

intermediate districts for great start readiness programs an amount

not to exceed ~~$214,275,000.00 for 2014-2015. In addition, from the~~

~~funds appropriated in section 11, there is allocated to the great~~

~~start readiness reserve fund created under subsection (19) an~~

~~amount not to exceed $25,000,000.00 for 2014-2015.~~ $239,275,000.00

for 2015-2016. Funds allocated under this section for great start

readiness programs shall be used to provide part-day, school-day,

or GSRP/head start blended comprehensive free compensatory

classroom programs designed to improve the readiness and subsequent

achievement of educationally disadvantaged children who meet the

participant eligibility and prioritization guidelines as defined by

the department. For a child to be eligible to participate in a

program under this section, the child shall be at least 4, but less

than 5, years of age as of the date specified for determining a

child's eligibility to attend school under section 1147 of the

revised school code, MCL 380.1147.

(2) Funds allocated under subsection (1) shall be allocated to

intermediate districts or consortia of intermediate districts based

on the formula in section 39. An intermediate district or

consortium of intermediate districts receiving funding under this

section shall act as the fiduciary for the great start readiness

programs. In order to be eligible to receive funds allocated under

this subsection from an intermediate district or consortium of

intermediate districts, a district, a consortium of districts, or a

public or private for-profit or nonprofit legal entity or agency

shall comply with this section and section 39.

(3) In addition to the allocation under subsection (1), from

the general fund money appropriated under section 11, there is

allocated an amount not to exceed $300,000.00 for ~~2014-2015~~ 2015-

2016 for a competitive grant to continue a longitudinal evaluation

of children who have participated in great start readiness

programs.

(4) To be eligible for funding under this section, a program

shall prepare children for success in school through comprehensive

part-day, school-day, or GSRP/head start blended programs that

contain all of the following program components, as determined by

the department:

(a) Participation in a collaborative recruitment and

enrollment process to assure that each child is enrolled in the

program most appropriate to his or her needs and to maximize the

use of federal, state, and local funds.

(b) An age-appropriate educational curriculum that is in

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board.

supported by federal, state, and local resources as applicable.

(d) Physical and dental health and developmental screening

services for all program participants.

(e) Referral services for families of program participants to

community social service agencies, including mental health

services, as appropriate.

(f) Active and continuous involvement of the parents or

guardians of the program participants.

(g) A plan to conduct and report annual great start readiness

program evaluations and continuous improvement plans using criteria

approved by the department.

(h) Participation in a school readiness advisory committee

convened as a workgroup of the great start collaborative that

provides for the involvement of classroom teachers, parents or

guardians of program participants, and community, volunteer, and

social service agencies and organizations, as appropriate. The

advisory committee annually shall review and make recommendations

regarding the program components listed in this subsection. The

advisory committee also shall make recommendations to the great

start collaborative regarding other community services designed to

improve all children's school readiness.

(i) The ongoing articulation of the kindergarten and first

grade programs offered by the program provider.

(j) Participation in this state's great start to quality

process with a rating of at least 3 stars.

(5) An application for funding under this section shall

provide for the following, in a form and manner determined by the

department:

(a) Ensure compliance with all program components described in

subsection (4).

(b) Except as otherwise provided in this subdivision, ensure

that at least 90% of the children participating in an eligible

great start readiness program for whom the intermediate district is

receiving funds under this section are children who live with

families with a household income that is equal to or less than 250%

of the federal poverty level. If the intermediate district

determines that all eligible children are being served and that

there are no children on the waiting list under section 39(1)(d)

who live with families with a household income that is equal to or

less than 250% of the federal poverty level, the intermediate

district may then enroll children who live with families with a

household income that is equal to or less than 300% of the federal

poverty level. The enrollment process shall consider income and

risk factors, such that children determined with higher need are

enrolled before children with lesser need. For purposes of this

subdivision, all age-eligible children served in foster care or who

are experiencing homelessness or who have individualized education

plans recommending placement in an inclusive preschool setting

shall be considered to live with families with household income

equal to or less than 250% of the federal poverty level regardless

of actual family income.

for this program, as follows:

(i) Teachers possessing proper training. A lead teacher must

have a valid teaching certificate with an early childhood (ZA or

ZS) endorsement or a bachelor's degree in child development or

early child development with specialization in preschool teaching.

However, if an applicant demonstrates to the department that it is

unable to fully comply with this subparagraph after making

reasonable efforts to comply, teachers who have significant but

incomplete training in early childhood education or child

development may be used if the applicant provides to the

department, and the department approves, a plan for each teacher to

come into compliance with the standards in this subparagraph. A

teacher's compliance plan must be completed within 2 years of the

date of employment. Progress toward completion of the compliance

plan shall consist of at least 2 courses per calendar year.

(ii) Paraprofessionals possessing proper training in early

childhood development, including an associate's degree in early

childhood education or child development or the equivalent, or a

child development associate (CDA) credential. However, if an

applicant demonstrates to the department that it is unable to fully

comply with this subparagraph after making reasonable efforts to

comply, the applicant may use paraprofessionals who have completed

at least 1 course that earns college credit in early childhood

education or child development if the applicant provides to the

department, and the department approves, a plan for each

paraprofessional to come into compliance with the standards in this

subparagraph. A paraprofessional's compliance plan must be

completed within 2 years of the date of employment. Progress toward

completion of the compliance plan shall consist of at least 2

courses or 60 clock hours of training per calendar year.

(d) Include a program budget that contains only those costs

that are not reimbursed or reimbursable by federal funding, that

are clearly and directly attributable to the great start readiness

program, and that would not be incurred if the program were not

being offered. Eligible costs include transportation costs. The

program budget shall indicate the extent to which these funds will

supplement other federal, state, local, or private funds. Funds

received under this section shall not be used to supplant any

federal funds received by the applicant to serve children eligible

for a federally funded preschool program that has the capacity to

serve those children.

(6) For a grant recipient that enrolls pupils in a school-day

program funded under this section, each child enrolled in the

school-day program shall be counted as 2 children served by the

program for purposes of determining the number of children to be

served and for determining the amount of the grant award. A grant

award shall not be increased solely on the basis of providing a

school-day program.

(7) For a grant recipient that enrolls pupils in a GSRP/head

start blended program, the grant recipient shall ensure that all

head start and GSRP policies and regulations are applied to the

blended slots, with adherence to the highest standard from either

program, to the extent allowable under federal law.

(8) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall designate an

early childhood coordinator, and may provide services directly or

may contract with 1 or more districts or public or private for-

profit or nonprofit providers that meet all requirements of

subsection (4).

(9) Funds received under this section may be retained for

administrative services as follows:

(a) For the portion of the total grant amount for which

services are provided directly by an intermediate district or

consortium of intermediate districts, the intermediate district or

consortium of intermediate districts may retain an amount equal to

not more than 7% of that portion of the grant amount.

(b) For the portion of the total grant amount for which

services are contracted, the intermediate district or consortium of

intermediate districts receiving the grant may retain an amount

equal to not more than 2% 5% of that portion of the grant amount

and the subrecipients engaged by the intermediate district to

provide program services may retain for administrative services an

amount equal to not more than 5% 2% of that portion of the grant

amount.

(10) An intermediate district or consortium of intermediate

districts may expend not more than 2% of the total grant amount for

outreach, recruiting, and public awareness of the program.

(11) Each grant recipient shall enroll children identified

under subsection (5)(b) according to how far the child's household

income is below 250% of the federal poverty level by ranking each

applicant child's household income from lowest to highest and

dividing the applicant children into quintiles based on how far the

child's household income is below 250% of the federal poverty

level, and then enrolling children in the quintile with the lowest

household income before enrolling children in the quintile with the

next lowest household income until slots are completely filled. If

the grant recipient determines that all eligible children are being

served and that there are no children on the waiting list under

section 39(1)(d) who live with families with a household income

that is equal to or less than 250% of the federal poverty level,

the grant recipient may then enroll children who live with families

with a household income that is equal to or less than 300% of the

federal poverty level. The enrollment process shall consider income

and risk factors, such that children determined with higher need

are enrolled before children with lesser need. For purposes of this

subdivision, all age-eligible children served in foster care or who

are experiencing homelessness or who have individualized education

plans recommending placement in an inclusive preschool setting

shall be considered to live with families with household income

equal to or less than 250% of the federal poverty level regardless

of actual family income.

(12) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall allow parents

of eligible children who are residents of the intermediate district

or within the consortium to choose a program operated by or

contracted with another intermediate district or consortium of

intermediate districts and shall pay to the educating intermediate

district or consortium the per-child amount attributable to each

child enrolled pursuant to this sentence, as determined under

section 39.

(13) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall conduct a

local process to contract with interested and eligible public and

private for-profit and nonprofit community-based providers that

meet all requirements of subsection (4) for at least 30% of its

total slot allocation. The intermediate district or consortium

shall report to the department, in a manner prescribed by the

department, a detailed list of community-based providers by

provider type, including private for-profit, private nonprofit,

community college or university, head start grantee or delegate,

and district or intermediate district, and the number and

proportion of its total slot allocation allocated to each provider

as subrecipient. If the intermediate district or consortium is not

able to contract for at least 30% of its total slot allocation, the

grant recipient shall notify the department and, if the department

verifies that the intermediate district or consortium attempted to

contract for at least 30% of its total slot allocation and was not

able to do so, then the intermediate district or consortium may

retain and use all of its allocated slots as provided under this

section. To be able to use this exemption, the intermediate

district or consortium shall demonstrate to the department that the

intermediate district or consortium increased the percentage of its

total slot allocation for which it contracts with a community-based

provider and the intermediate district or consortium shall submit

evidence satisfactory to the department, and the department must be

able to verify this evidence, demonstrating that the intermediate

district or consortium took measures to contract for at least 30%

of its total slot allocation as required under this subsection,

including, but not limited to, at least all of the following

measures:

(a) The intermediate district or consortium notified each

licensed child care center located in the service area of the

intermediate district or consortium at least twice regarding the

center's eligibility to participate. One of these notifications may

be made electronically, but at least 1 of these notifications shall

be made via hard copy through the United States mail. At least 1 of

these notifications shall be made within 7 days after the

intermediate district or consortium receives notice from the

department of its slot allocations.

(b) The intermediate district or consortium provided to each

licensed child care center located in the service area of the

intermediate district or consortium information regarding great

start readiness program requirements and a description of the

application and selection process for community-based providers.

public and to participating families a list of community-based

great start readiness program subrecipients with a great start to

quality rating of at least 3 stars.

(14) If an intermediate district or consortium of intermediate

districts receiving a grant under this section fails to submit

satisfactory evidence to demonstrate its effort to contract for at

least 30% of its total slot allocation, as required under

subsection (1), the department shall reduce the slots allocated to

the intermediate district or consortium by a percentage equal to

the difference between the percentage of an intermediate district's

or consortium's total slot allocation awarded to community-based

providers and 30% of its total slot allocation.

(15) In order to assist intermediate districts and consortia

in complying with the requirement to contract with community-based

providers for at least 30% of their total slot allocation, the

department shall do all of the following:

(a) Ensure that a great start resource center or the

department provides each intermediate district or consortium

receiving a grant under this section with the contact information

for each licensed child care center located in the service area of

the intermediate district or consortium by March 1 of each year.

(b) Provide, or ensure that an organization with which the

department contracts provides, a community-based provider with a

validated great start to quality rating within 90 days of the

provider's having submitted a request and self-assessment.

college or university, head start grantee or delegate, private for-

profit, and private nonprofit providers are subject to a single

great start to quality rating system. The rating system shall

ensure that regulators process all prospective providers at the

same pace on a first-come, first-served basis and shall not allow 1

type of provider to receive a great start to quality rating ahead

of any other type of provider.

(d) Not later than November 1 of each year, compile the

results of the information reported by each intermediate district

or consortium under subsection ~~(10)~~ (16) and report to the

legislature a list by intermediate district or consortium with the

number and percentage of each intermediate district's or

consortium's total slot allocation allocated to community-based

providers by provider type, including private for-profit, private

nonprofit, community college or university, head start grantee or

delegate, and district or intermediate district.

(16) A recipient of funds under this section shall report to

the department in a form and manner prescribed by the department

the number of children participating in the program who meet the

income eligibility criteria under subsection (5)(b) and the total

number of children participating in the program. For children

participating in the program who meet the income eligibility

criteria specified under subsection (5)(b), a recipient shall also

report whether or not a parent is available to provide care based

on employment status. For the purposes of this subsection,

"employment status" shall be defined by the department of human

services in a manner consistent with maximizing the amount of

spending that may be claimed for temporary assistance for needy

families maintenance of effort purposes.

(17) As used in this section:

(a) "GSRP/head start blended program" means a part-day program

funded under this section and a head start program, which are

combined for a school-day program.

(b) "Part-day program" means a program that operates at least

4 days per week, 30 weeks per year, for at least 3 hours of

teacher-child contact time per day but for fewer hours of teacher-

child contact time per day than a school-day program.

least the same length of day as a district's first grade program

for a minimum of 4 days per week, 30 weeks per year. A classroom

that offers a school-day program must enroll all children for the

school day to be considered a school-day program.

(18) An intermediate district or consortium of intermediate

districts receiving funds under this section shall establish a

sliding scale of tuition rates based upon household income for

children participating in an eligible great start readiness program

who live with families with a household income that is more than

250% of the federal poverty level to be used by all of its

providers, as approved by the department. A grant recipient shall

charge tuition according to that sliding scale of tuition rates on

a uniform basis for any child who does not meet the income

eligibility requirements under this section.

~~(19) The great start readiness reserve fund is created as a~~

~~separate account within the state school aid fund established by~~

~~section 11 of article IX of the state constitution of 1963. Money~~

~~available in the great start readiness reserve fund may not be~~

~~expended for 2014-2015 unless transferred by the legislature not~~

~~later than December 15, 2014 to the allocation under subsection (1)~~

~~for great start readiness programs. Money in the great start~~

~~readiness reserve fund shall be expended only for purposes for~~

~~which state school aid fund money may be expended. The state~~

~~treasurer shall direct the investment of the great start readiness~~

~~reserve fund. The state treasurer shall credit to the great start~~

~~readiness reserve fund interest and earnings from fund investments.~~

~~Money in the great start readiness reserve fund at the close of a~~

~~fiscal year shall remain in the great start readiness reserve fund~~

~~and shall not lapse to the unreserved school aid fund balance or~~

~~the general fund.~~

(19) ~~(20)~~ From the amount appropriated in subsection (1),

there is allocated an amount not to exceed $10,000,000.00 for

reimbursement of transportation costs for children attending great

start readiness programs funded under this section. To receive

reimbursement under this subsection, not later than November 1,

~~2014,~~ 2015, a program funded under this section that provides

transportation shall submit to the intermediate district that is

the fiscal agent for the program a projected transportation budget.

The amount of the reimbursement for transportation under this

subsection shall be the lesser of the projected transportation

budget or $150.00 multiplied by the number of slots funded for the

program under this section. If the amount allocated under this

subsection is insufficient to fully reimburse the transportation

costs for all programs that provide transportation and submit the

required information, the reimbursement shall be prorated in an

equal amount per slot funded. Payments shall be made to the

intermediate district that is the fiscal agent for each program,

and the intermediate district shall then reimburse the program

provider for transportation costs as prescribed under this

subsection.

Sec. 32p. (1) From the school aid fund appropriation in

section 11, there is allocated an amount not to exceed

$10,900,000.00 to intermediate districts for ~~2014-2015~~ 2015-2016

for the purpose of providing early childhood funding to

intermediate school districts in block grants ~~, supporting~~ to

support the activities under subsection (2) , and ~~providing~~ to

provide early childhood programs for children from birth through

age 8. The funding provided to each intermediate district under

this section shall be determined by the distribution formula

established by the department's office of great start to provide

equitable funding statewide. In order to receive funding under this

section, each intermediate district shall provide an application to

the office of great start not later than September 15 of the

immediately preceding fiscal year indicating the activities planned

to be provided.

(2) Each intermediate district or consortium of intermediate

districts that receives funding under this section shall convene a

local great start collaborative and a parent coalition. The goal of

each great start collaborative and parent coalition shall be to

ensure the coordination and expansion of local early childhood

infrastructure and programs that allow every child in the community

to achieve the following outcomes:

(a) Children born healthy.

(b) Children healthy, thriving, and developmentally on track

from birth to third grade.

time of school entry.

(d) Children prepared to succeed in fourth grade and beyond by

reading proficiently by the end of third grade.

(3) Each local great start collaborative and parent coalition

shall convene workgroups to make recommendations about community

services designed to achieve the outcomes described in subsection

(2) and to ensure that its local great start system includes the

following supports for children from birth through age 8:

(a) Physical health.

(b) Social-emotional health.

(d) Parent education. ~~and child advocacy.~~

(e) Early education and care.

(4) Not later than December 1 of each year, each intermediate

district shall provide a report to the department detailing the

activities actually provided during the immediately preceding

school year and the families and children actually served. The

department shall compile and summarize these reports and submit its

summary to the house and senate appropriations subcommittees on

school aid and to the house and senate fiscal agencies not later

than February 15 of each year.

(5) An intermediate district or consortium of intermediate

districts that receives funding under this section may carry over

any unexpended funds received under this section into the next

fiscal year and may expend those unused funds through June 30 of

the next fiscal year. A recipient of a grant shall return any

unexpended grant funds to the department in the manner prescribed

by the department not later than September 30 of the next fiscal

year after the fiscal year in which the funds are received.

Sec. 39. (1) An eligible applicant receiving funds under

section 32d shall submit an application, in a form and manner

prescribed by the department, by a date specified by the department

in the immediately preceding state fiscal year. The application

shall include a comprehensive needs assessment using aggregated

data from the applicant's entire service area and a community

collaboration plan that is endorsed by the local great start

collaborative and is part of the community's great start strategic

plan that includes, but is not limited to, great start readiness

program and head start providers, and shall identify all of the

following:

(a) The estimated total number of children in the community

who meet the criteria of section 32d and how that calculation was

made.

(b) The estimated number of children in the community who meet

the criteria of section 32d and are being served by other early

childhood development programs operating in the community, and how

that calculation was made.

who meet the criteria of section 32d including a verification of

physical facility and staff resources capacity.

(d) The estimated number of children who meet the criteria of

section 32d who will remain unserved after the applicant and

community early childhood programs have met their funded

enrollments. The applicant shall maintain a waiting list of

identified unserved eligible children who would be served when

openings are available.

(2) After notification of funding allocations, an applicant

receiving funds under section 32d shall also submit an

implementation plan for approval, in a form and manner prescribed

by the department, by a date specified by the department, that

details how the applicant complies with the program components

established by the department pursuant to section 32d.

(3) The number of prekindergarten children construed to be in

need of special readiness assistance under section 32d shall be

calculated for each applicant in the following manner: 1/2 of the

percentage of the applicant's pupils in grades 1 to 5 in all

districts served by the applicant who are eligible for free lunch,

as determined using the district's pupil membership count as of the

pupil membership count day in the school year prior to the fiscal

year for which the calculation is made, under the Richard B.

Russell national school lunch act, 42 USC 1751 to 1769i, shall be

multiplied by the average kindergarten enrollment of the districts

served by the applicant on the pupil membership count day of the 2

immediately preceding fiscal years.

(4) The initial allocation for each fiscal year to each

eligible applicant under section 32d shall be determined by

multiplying the number of children determined by the formula under

subsection (3) or the number of children the applicant indicates it

will be able to serve under subsection (1)(c), whichever is less,

by $3,625.00 and shall be distributed among applicants in

decreasing order of concentration of eligible children as

determined by the formula under subsection (3). If the number of

children an applicant indicates it will be able to serve under

subsection (1)(c) includes children able to be served in a school-

day program, then the number able to be served in a school-day

program shall be doubled for the purposes of making this

calculation of the lesser of the number of children determined by

the formula under subsection (3) and the number of children the

applicant indicates it will be able to serve under subsection

(1)(c) and determining the amount of the initial allocation to the

applicant under section 32d. A district may contract with a head

start agency to serve children enrolled in head start with a

school-day program by blending head start funds with a part-day

great start readiness program allocation. All head start and great

start readiness program policies and regulations apply to the

blended program.

(5) If funds allocated for eligible applicants ~~or to the great~~

~~start readiness reserve fund~~ under section 32d remain after the

initial allocation under subsection (4), the allocation under this

subsection shall be distributed to each eligible applicant under

section 32d in decreasing order of concentration of eligible

children as determined by the formula under subsection (3). The

allocation shall be determined by multiplying the number of

children in each district within the applicant's service area

served in the immediately preceding fiscal year or the number of

children the applicant indicates it will be able to serve under

subsection (1)(c), whichever is less, minus the number of children

for which the applicant received funding in subsection (4) by

$3,625.00.

(6) If funds allocated for eligible applicants ~~or to the great~~

~~start readiness reserve fund~~ under section 32d remain after the

allocations under subsections (4) and (5), remaining funds shall be

distributed to each eligible applicant under section 32d in

decreasing order of concentration of eligible children as

determined by the formula under subsection (3). If the number of

children the applicant indicates it will be able to serve under

subsection (1)(c) exceeds the number of children for which funds

have been received under subsections (4) and (5), the allocation

under this subsection shall be determined by multiplying the number

of children the applicant indicates it will be able to serve under

subsection (1)(c) less the number of children for which funds have

been received under subsections (4) and (5) by $3,625.00 until the

funds allocated for eligible applicants in section 32d are

distributed.

(7) An applicant that offers supplementary child care funded

by funds other than those received under section 32d and therefore

offers full-day programs as part of its early childhood development

program shall receive priority in the allocation of funds under

section 32d over other eligible applicants. As used in this

subsection, "full-day program" means a program that provides

supplementary child care that totals at least 10 hours of

programming per day.

(8) If, taking into account the total amount to be allocated

to the applicant as calculated under this section, an applicant

determines that it is able to include additional eligible children

in the great start readiness program without additional funds under

section 32d, the applicant may include additional eligible children

but shall not receive additional funding under section 32d for

those children.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated for ~~2014-2015~~ 2015-2016 to districts,

intermediate districts, and other eligible entities all available

federal funding, estimated at ~~$807,969,900.00~~ $779,076,400.00 for

the federal programs under the no child left behind act of 2001,

Public Law 107-110. These funds are allocated as follows:

(a) An amount estimated at ~~$8,000,000.00~~ $5,000,000.00 to

provide students with drug- and violence-prevention programs and to

implement strategies to improve school safety, funded from DED-

OESE, drug-free schools and communities funds.

(b) An amount estimated at $111,111,900.00 for the purpose of

preparing, training, and recruiting high-quality teachers and class

size reduction, funded from DED-OESE, improving teacher quality

funds.

teach English to limited English proficient (LEP) children, funded

from DED-OESE, language acquisition state grant funds.

(d) An amount estimated at $10,286,500.00 for the Michigan

charter school subgrant program, funded from DED-OESE, charter

school funds.

(e) An amount estimated at ~~$2,393,500.00~~ $3,000,000.00 for

rural and low income schools, funded from DED-OESE, rural and low

income school funds.

(f) An amount estimated at ~~$591,500,000.00~~ $565,000,000.00 to

provide supplemental programs to enable educationally disadvantaged

children to meet challenging academic standards, funded from DED-

OESE, title I, disadvantaged children funds.

(g) An amount estimated at $8,878,000.00 for the purpose of

identifying and serving migrant children, funded from DED-OESE,

title I, migrant education funds.

(h) An amount estimated at $39,000,000.00 for the purpose of

providing high-quality extended learning opportunities, after

school and during the summer, for children in low-performing

schools, funded from DED-OESE, twenty-first century community

learning center funds.

(i) An amount estimated at $24,600,000.00 to help support

local school improvement efforts, funded from DED-OESE, title I,

local school improvement grants.

(2) From the federal funds appropriated in section 11, there

is allocated for ~~2014-2015~~ 2015-2016 to districts, intermediate

districts, and other eligible entities all available federal

funding, estimated at ~~$31,300,000.00~~ $30,800,000.00 for the

following programs that are funded by federal grants:

(a) An amount estimated at $200,000.00 for acquired

immunodeficiency syndrome education grants, funded from HHS �

~~center for disease control,~~ Centers for Disease Control and

Prevention, AIDS funding.

(b) An amount estimated at $2,600,000.00 to provide services

to homeless children and youth, funded from DED-OVAE, homeless

children and youth funds.

health, substance abuse, or violence prevention services to

students, funded from HHS-SAMHSA.

(d) ~~(c)~~ An amount estimated at ~~$28,500,000.00~~ $24,000,000.00

for providing career and technical education services to pupils,

funded from DED-OVAE, basic grants to states.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(4) For the purposes of applying for federal grants

appropriated under this article, the department shall allow an

intermediate district to submit a consortium application on behalf

of 2 or more districts with the agreement of those districts as

appropriate according to federal rules and guidelines.

(5) As used in this section:

(a) "DED" means the United States ~~department of~~

~~education.~~Department of Education.

(b) "DED-OESE" means the DED ~~office of elementary and~~

~~secondary education.~~Office of Elementary and Secondary Education.

~~education.~~Office of Vocational and Adult Education.

(d) "HHS" means the United States ~~department of health and~~

~~human services.~~Department of Health and Human Services.

~~(e) "HHS-ACF" means the HHS administration for children and~~

~~families.~~

(e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

Health Services Administration.

Sec. 43. From the general fund money appropriated in section

11, there is allocated to the department for ~~2014-2015~~ 2015-2016 an

amount not to exceed $1,800,000.00 for updating teacher

certification tests. The department shall use these funds to update

the set of teacher certification tests, including content-specific

and subject-relevant tests, to reflect current education standards

by not later than September 30, 2016. This is the second year of 2

years of funding.

Sec. 51a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$914,946,100.00 for 2014-2015~~

$934,546,100.00 for 2015-2016 from state sources and all available

federal funding under sections 611 to 619 of part B of the

individuals with disabilities education act, 20 USC 1411 to 1419,

estimated at $370,000,000.00 for ~~2014-2015,~~ 2015-2016, plus any

carryover federal funds from previous year appropriations. The

allocations under this subsection are for the purpose of

reimbursing districts and intermediate districts for special

education programs, services, and special education personnel as

prescribed in article 3 of the revised school code, MCL 380.1701 to

380.1766; net tuition payments made by intermediate districts to

the Michigan schools for the deaf and blind; and special education

programs and services for pupils who are eligible for special

education programs and services according to statute or rule. For

meeting the costs of special education programs and services not

reimbursed under this article, a district or intermediate district

may use money in general funds or special education funds, not

otherwise restricted, or contributions from districts to

intermediate districts, tuition payments, gifts and contributions

from individuals or other entities, or federal funds that may be

available for this purpose, as determined by the intermediate

district plan prepared pursuant to article 3 of the revised school

code, MCL 380.1701 to 380.1766. Notwithstanding section 17b,

payments of federal funds to districts, intermediate districts, and

other eligible entities under this section shall be paid on a

schedule determined by the department.

(2) From the funds allocated under subsection (1), there is

allocated the amount necessary, estimated at ~~$251,800,000.00 for~~

~~2014-2015,~~ $257,200,000.00 for 2015-2016 for payments toward

reimbursing districts and intermediate districts for 28.6138% of

total approved costs of special education, excluding costs

reimbursed under section 53a, and 70.4165% of total approved costs

of special education transportation. Allocations under this

subsection shall be made as follows:

(a) The initial amount allocated to a district under this

subsection toward fulfilling the specified percentages shall be

calculated by multiplying the district's special education pupil

membership, excluding pupils described in subsection (11), times

the foundation allowance under section 20 of the pupil's district

of residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year, or, for a special education

pupil in membership in a district that is a public school academy,

times an amount equal to the amount per membership pupil calculated

under section 20(6) or, for a pupil described in this subsection

who is counted in membership in the education achievement system,

times an amount equal to the amount per membership pupil under

section 20(7). For an intermediate district, the amount allocated

under this subdivision toward fulfilling the specified percentages

shall be an amount per special education membership pupil,

excluding pupils described in subsection (11), and shall be

calculated in the same manner as for a district, using the

foundation allowance under section 20 of the pupil's district of

residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year.

(b) After the allocations under subdivision (a), districts and

intermediate districts for which the payments calculated under

subdivision (a) do not fulfill the specified percentages shall be

paid the amount necessary to achieve the specified percentages for

the district or intermediate district.

(3) From the funds allocated under subsection (1), there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

$1,000,000.00 to make payments to districts and intermediate

districts under this subsection. If the amount allocated to a

district or intermediate district for a fiscal year under

subsection (2)(b) is less than the sum of the amounts allocated to

the district or intermediate district for 1996-97 under sections 52

and 58, there is allocated to the district or intermediate district

for the fiscal year an amount equal to that difference, adjusted by

applying the same proration factor that was used in the

distribution of funds under section 52 in 1996-97 as adjusted to

the district's or intermediate district's necessary costs of

special education used in calculations for the fiscal year. This

adjustment is to reflect reductions in special education program

operations or services between 1996-97 and subsequent fiscal years.

Adjustments for reductions in special education program operations

or services shall be made in a manner determined by the department

and shall include adjustments for program or service shifts.

(4) If the department determines that the sum of the amounts

allocated for a fiscal year to a district or intermediate district

under subsection (2)(a) and (b) is not sufficient to fulfill the

specified percentages in subsection (2), then the shortfall shall

be paid to the district or intermediate district during the fiscal

year beginning on the October 1 following the determination and

payments under subsection (3) shall be adjusted as necessary. If

the department determines that the sum of the amounts allocated for

a fiscal year to a district or intermediate district under

subsection (2)(a) and (b) exceeds the sum of the amount necessary

to fulfill the specified percentages in subsection (2), then the

department shall deduct the amount of the excess from the

district's or intermediate district's payments under this article

for the fiscal year beginning on the October 1 following the

determination and payments under subsection (3) shall be adjusted

as necessary. However, if the amount allocated under subsection

(2)(a) in itself exceeds the amount necessary to fulfill the

specified percentages in subsection (2), there shall be no

deduction under this subsection.

(5) State funds shall be allocated on a total approved cost

basis. Federal funds shall be allocated under applicable federal

requirements, except that an amount not to exceed $3,500,000.00 may

be allocated by the department for ~~2014-2015~~ 2015-2016 to

districts, intermediate districts, or other eligible entities on a

competitive grant basis for programs, equipment, and services that

the department determines to be designed to benefit or improve

special education on a statewide scale.

(6) From the amount allocated in subsection (1), there is

allocated an amount not to exceed $2,200,000.00 for ~~2014-2015~~ 2015-

2016 to reimburse 100% of the net increase in necessary costs

incurred by a district or intermediate district in implementing the

revisions in the administrative rules for special education that

became effective on July 1, 1987. As used in this subsection, "net

increase in necessary costs" means the necessary additional costs

incurred solely because of new or revised requirements in the

administrative rules minus cost savings permitted in implementing

the revised rules. Net increase in necessary costs shall be

determined in a manner specified by the department.

(7) For purposes of sections 51a to 58, all of the following

apply:

(a) "Total approved costs of special education" shall be

determined in a manner specified by the department and may include

indirect costs, but shall not exceed 115% of approved direct costs

for section 52 and section 53a programs. The total approved costs

include salary and other compensation for all approved special

education personnel for the program, including payments for social

security and Medicare and public school employee retirement system

contributions. The total approved costs do not include salaries or

other compensation paid to administrative personnel who are not

special education personnel as defined in section 6 of the revised

school code, MCL 380.6. Costs reimbursed by federal funds, other

than those federal funds included in the allocation made under this

article, are not included. Special education approved personnel not

utilized full time in the evaluation of students or in the delivery

of special education programs, ancillary, and other related

services shall be reimbursed under this section only for that

portion of time actually spent providing these programs and

services, with the exception of special education programs and

services provided to youth placed in child caring institutions or

juvenile detention programs approved by the department to provide

an on-grounds education program.

(b) Beginning with the 2004-2005 fiscal year, a district or

intermediate district that employed special education support

services staff to provide special education support services in

2003-2004 or in a subsequent fiscal year and that in a fiscal year

after 2003-2004 receives the same type of support services from

another district or intermediate district shall report the cost of

those support services for special education reimbursement purposes

under this article. This subdivision does not prohibit the transfer

of special education classroom teachers and special education

classroom aides if the pupils counted in membership associated with

those special education classroom teachers and special education

classroom aides are transferred and counted in membership in the

other district or intermediate district in conjunction with the

transfer of those teachers and aides.

~~(c) If the department determines before bookclosing for a~~

~~fiscal year that the amounts allocated for that fiscal year under~~

~~subsections (2), (3), (6), and (11) and sections 53a, 54, and 56~~

~~will exceed expenditures for that fiscal year under subsections~~

~~(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a~~

~~district or intermediate district whose reimbursement for that~~

~~fiscal year would otherwise be affected by subdivision (b),~~

~~subdivision (b) does not apply to the calculation of the~~

~~reimbursement for that district or intermediate district and~~

~~reimbursement for that district or intermediate district shall be~~

~~calculated in the same manner as it was for 2003-2004. If the~~

~~amount of the excess allocations under subsections (2), (3), (6),~~

~~and (11) and sections 53a, 54, and 56 is not sufficient to fully~~

~~fund the calculation of reimbursement to those districts and~~

~~intermediate districts under this subdivision, then the~~

~~calculations and resulting reimbursement under this subdivision~~

~~shall be prorated on an equal percentage basis. This reimbursement~~

~~shall not be made after 2014-2015.~~

services, as defined by R 340.1701c of the Michigan administrative

code, shall not be provided when those services are covered by and

available through private group health insurance carriers or

federal reimbursed program sources unless the department and

district or intermediate district agree otherwise and that

agreement is approved by the state budget director. Expenses, other

than the incidental expense of filing, shall not be borne by the

parent. In addition, the filing of claims shall not delay the

education of a pupil. A district or intermediate district shall be

responsible for payment of a deductible amount and for an advance

payment required until the time a claim is paid.

(d) ~~(e)~~ Beginning with calculations for 2004-2005, if an

intermediate district purchases a special education pupil

transportation service from a constituent district that was

previously purchased from a private entity; if the purchase from

the constituent district is at a lower cost, adjusted for changes

in fuel costs; and if the cost shift from the intermediate district

to the constituent does not result in any net change in the revenue

the constituent district receives from payments under sections 22b

and 51c, then upon application by the intermediate district, the

department shall direct the intermediate district to continue to

report the cost associated with the specific identified special

education pupil transportation service and shall adjust the costs

reported by the constituent district to remove the cost associated

with that specific service.

(8) A pupil who is enrolled in a full-time special education

program conducted or administered by an intermediate district or a

pupil who is enrolled in the Michigan schools for the deaf and

blind shall not be included in the membership count of a district,

but shall be counted in membership in the intermediate district of

residence.

(9) Special education personnel transferred from 1 district to

another to implement the revised school code shall be entitled to

the rights, benefits, and tenure to which the person would

otherwise be entitled had that person been employed by the

receiving district originally.

(10) If a district or intermediate district uses money

received under this section for a purpose other than the purpose or

purposes for which the money is allocated, the department may

require the district or intermediate district to refund the amount

of money received. Money that is refunded shall be deposited in the

state treasury to the credit of the state school aid fund.

(11) From the funds allocated in subsection (1), there is

allocated the amount necessary, estimated at ~~$4,000,000.00 for~~

~~2014-2015,~~ $3,200,000.00 for 2015-2016, to pay the foundation

allowances for pupils described in this subsection. The allocation

to a district under this subsection shall be calculated by

multiplying the number of pupils described in this subsection who

are counted in membership in the district times the foundation

allowance under section 20 of the pupil's district of residence,

not to exceed the basic foundation allowance under section 20 for

the current fiscal year, or, for a pupil described in this

subsection who is counted in membership in a district that is a

public school academy, times an amount equal to the amount per

membership pupil under section 20(6) or, for a pupil described in

this subsection who is counted in membership in the education

achievement system, times an amount equal to the amount per

membership pupil under section 20(7). The allocation to an

intermediate district under this subsection shall be calculated in

the same manner as for a district, using the foundation allowance

under section 20 of the pupil's district of residence, not to

exceed the basic foundation allowance under section 20 for the

current fiscal year. This subsection applies to all of the

following pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district

who are not special education pupils and are served by the

intermediate district in a juvenile detention or child caring

facility.

by an intermediate district and provided educational services by

the department of community health.

(12) If it is determined that funds allocated under subsection

(2) or (11) or under section 51c will not be expended, funds up to

the amount necessary and available may be used to supplement the

allocations under subsection (2) or (11) or under section 51c in

order to fully fund those allocations. After payments under

subsections (2) and (11) and section 51c, the remaining

expenditures from the allocation in subsection (1) shall be made in

the following order:

(a) 100% of the reimbursement required under section 53a.

(b) 100% of the reimbursement required under subsection (6).

(d) 100% of the payment required under subsection (3).

(e) 100% of the payments under section 56.

(13) The allocations under subsections (2), (3), and (11)

shall be allocations to intermediate districts only and shall not

be allocations to districts, but instead shall be calculations used

only to determine the state payments under section 22b.

(14) If a public school academy enrolls pursuant to this

section a pupil who resides outside of the intermediate district in

which the public school academy is located and who is eligible for

special education programs and services according to statute or

rule, or who is a child with disabilities, as defined under the

individuals with disabilities education act, Public Law 108-446,

the provision of special education programs and services and the

payment of the added costs of special education programs and

services for the pupil are the responsibility of the district and

intermediate district in which the pupil resides unless the

enrolling district or intermediate district has a written agreement

with the district or intermediate district in which the pupil

resides or the public school academy for the purpose of providing

the pupil with a free appropriate public education and the written

agreement includes at least an agreement on the responsibility for

the payment of the added costs of special education programs and

services for the pupil.

(15) A district or intermediate district that fails to comply

with subsection (14) or with the requirements of federal

regulations regarding the treatment of public school academies and

public school academy pupils for the purposes of special education,

34 CFR 300.209, forfeits from its total state aid an amount equal

to 10% of its total state aid.

Sec. 51c. As required by the court in the consolidated cases

known as Durant v State of Michigan, Michigan supreme court docket

no. 104458-104492, from the allocation under section 51a(1), there

is allocated for ~~2014-2015~~ 2015-2016 the amount necessary,

estimated at ~~$606,000,000.00,~~ $621,000,000.00, for payments to

reimburse districts for 28.6138% of total approved costs of special

education excluding costs reimbursed under section 53a, and

70.4165% of total approved costs of special education

transportation. Funds allocated under this section that are not

expended in the state fiscal year for which they were allocated, as

determined by the department, may be used to supplement the

allocations under sections 22a and 22b in order to fully fund those

calculated allocations for the same fiscal year.

Sec. 51d. (1) From the federal funds appropriated in section

11, there is allocated for ~~2014-2015,~~ 2015-2016, all available

federal funding, estimated at ~~$74,000,000.00,~~ $71,000,000.00, for

special education programs and services that are funded by federal

grants. All federal funds allocated under this section shall be

distributed in accordance with federal law. Notwithstanding section

17b, payments of federal funds to districts, intermediate

districts, and other eligible entities under this section shall be

paid on a schedule determined by the department.

(2) From the federal funds allocated under subsection (1), the

following amounts are allocated for ~~2014-2015:~~2015-2016:

(a) An amount estimated at ~~$15,000,000.00~~ $14,000,000.00 for

handicapped infants and toddlers, funded from DED-OSERS,

handicapped infants and toddlers funds.

(b) An amount estimated at ~~$14,000,000.00~~ $12,000,000.00 for

preschool grants (Public Law 94-142), funded from DED-OSERS,

handicapped preschool incentive funds.

education programs funded by DED-OSERS, handicapped program,

individuals with disabilities act funds.

(3) As used in this section, "DED-OSERS" means the United

States ~~department of education office of special education and~~

~~rehabilitative services.~~Department of Education Office of Special

Education and Rehabilitative Services.

Sec. 53a. (1) For districts, reimbursement for pupils

described in subsection (2) shall be 100% of the total approved

costs of operating special education programs and services approved

by the department and included in the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1766, minus the district's foundation allowance

calculated under section 20. For intermediate districts,

reimbursement for pupils described in subsection (2) shall be

calculated in the same manner as for a district, using the

foundation allowance under section 20 of the pupil's district of

residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year.

(2) Reimbursement under subsection (1) is for the following

special education pupils:

(a) Pupils assigned to a district or intermediate district

through the community placement program of the courts or a state

agency, if the pupil was a resident of another intermediate

district at the time the pupil came under the jurisdiction of the

court or a state agency.

(b) Pupils who are residents of institutions operated by the

department of community health.

health institutions for the developmentally disabled who are placed

in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds

educational program longer than 180 days, but not longer than 233

days, at a residential child care institution, if the child care

institution offered in 1991-92 an on-grounds educational program

longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of

seeking a suitable home, if the parent does not reside in the same

intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly

attributable to educational programs for pupils described in

subsection (2), and that would not have been incurred if the pupils

were not being educated in a district or intermediate district, are

reimbursable under this section.

(4) The costs of transportation shall be funded under this

section and shall not be reimbursed under section 58.

(5) Not more than $10,500,000.00 of the allocation for ~~2014-~~

~~2015~~ 2015-2016 in section 51a(1) shall be allocated under this

section.

Sec. 54. Each intermediate district shall receive an amount

per-pupil for each pupil in attendance at the Michigan schools for

the deaf and blind. The amount shall be proportionate to the total

instructional cost at each school. Not more than $1,688,000.00 of

the allocation for ~~2014-2015~~ 2015-2016 in section 51a(1) shall be

allocated under this section.

Sec. 55. (1) From the money appropriated in section 11, there

is allocated an amount not to exceed $150,000.00 for 2015-2016 to

Michigan State University, Department of Epidemiology, for a study

of the Conductive Learning Center located at Aquinas College. This

funding shall be used to develop and implement an evaluation of the

effectiveness of conductive education for children with cerebral

palsy. The evaluation shall be multidimensional and shall include a

control group of children with cerebral palsy not enrolled in

conductive education. It should include an assessment of the motor

system itself as well as the impact of conductive education on each

of the following:

(a) The acquisition of skills permitting complex motor

functions.

(b) The performance of tasks essential to daily living.

(d) The long-term need for special education for children with

cerebral palsy.

(2) It is the intent of the legislature that this funding is

for the first of 2 years of funding for this purpose.

Sec. 56. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district.

(b) "Millage levied" means the millage levied for special

education pursuant to part 30 of the revised school code, MCL

380.1711 to 380.1743, including a levy for debt service

obligations.

districts constituent to an intermediate district, except that if a

district has elected not to come under part 30 of the revised

school code, MCL 380.1711 to 380.1743, membership and taxable value

of the district shall not be included in the membership and taxable

value of the intermediate district.

(2) From the allocation under section 51a(1), there is

allocated an amount not to exceed $37,758,100.00 for ~~2014-2015~~

2015-2016 to reimburse intermediate districts levying millages for

special education pursuant to part 30 of the revised school code,

MCL 380.1711 to 380.1743. The purpose, use, and expenditure of the

reimbursement shall be limited as if the funds were generated by

these millages and governed by the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1766. As a condition of receiving funds under this

section, an intermediate district distributing any portion of

special education millage funds to its constituent districts shall

submit for departmental approval and implement a distribution plan.

(3) Reimbursement for those millages levied in ~~2013-2014~~ 2014-

2015 shall be made in ~~2014-2015~~ 2015-2016 at an amount per ~~2013-~~

~~2014~~ 2014-2015 membership pupil computed by subtracting from

~~$172,200.00~~ $174,400.00 the ~~2013-2014~~ 2014-2015 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2013-2014~~ 2014-2015 millage levied.

(4) The amount paid to a single intermediate district under

this section shall not exceed 62.9% of the total amount allocated

under subsection (2).

(5) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 61a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$26,611,300.00 for 2014-2015~~

$42,611,300.00 for 2015-2016 to reimburse on an added cost basis

districts, except for a district that served as the fiscal agent

for a vocational education consortium in the 1993-94 school year,

and secondary area vocational-technical education centers for

secondary-level career and technical education programs according

to rules approved by the superintendent. Applications for

participation in the programs shall be submitted in the form

prescribed by the department. The department shall determine the

added cost for each career and technical education program area.

The allocation of added cost funds shall be based on the ~~type of~~

cost of the career and technical education programs provided; , the

number of pupils enrolled; , the advancement of pupils through the

instructional program; the program rank in student placement; and

the length of the training period provided, and shall not exceed

75% of the added cost of any program. With the approval of the

department, the board of a district maintaining a secondary career

and technical education program may offer the program for the

period from the close of the school year until September 1. The

program shall use existing facilities and shall be operated as

prescribed by rules promulgated by the superintendent.

(2) Except for a district that served as the fiscal agent for

a vocational education consortium in the 1993-94 school year,

districts and intermediate districts shall be reimbursed for local

career and technical education administration, shared time career

and technical education administration, and career education

planning district career and technical education administration.

The definition of what constitutes administration and reimbursement

shall be pursuant to guidelines adopted by the superintendent. Not

more than $800,000.00 of the allocation in subsection (1) shall be

distributed under this subsection.

~~(3) In addition to the funds allocated in subsection (1), from~~

~~the appropriation in section 11, there is allocated an amount not~~

~~to exceed $1,000,000.00 for 2014-2015 to districts or intermediate~~

~~districts for area career and technical education centers for the~~

~~purpose of integrating the Michigan merit curriculum content~~

~~standards under sections 1278a and 1278b of the revised school~~

~~code, MCL 380.1278a and 380.1278b, into state-approved career and~~

~~technical education instructional programs for the purpose of~~

~~awarding academic credit. The department shall determine the~~

~~allocation to each career and technical education center in a~~

~~manner that provides for maximum integration of Michigan merit~~

~~curriculum content standards statewide.~~

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district or the total membership for the immediately

preceding fiscal year of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area

vocational-technical education pursuant to sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690, including a levy

for debt service obligations incurred as the result of borrowing

for capital outlay projects and in meeting capital projects fund

requirements of area vocational-technical education.

districts constituent to an intermediate district or area

vocational-technical education program, except that if a district

has elected not to come under sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690, the membership and taxable

value of that district shall not be included in the membership and

taxable value of the intermediate district. However, the membership

and taxable value of a district that has elected not to come under

sections 681 to 690 of the revised school code, MCL 380.681 to

380.690, shall be included in the membership and taxable value of

the intermediate district if the district meets both of the

following:

(i) The district operates the area vocational-technical

education program pursuant to a contract with the intermediate

district.

(ii) The district contributes an annual amount to the

operation of the program that is commensurate with the revenue that

would have been raised for operation of the program if millage were

levied in the district for the program under sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated

an amount not to exceed $9,190,000.00 for ~~2014-2015~~ 2015-2016 to

reimburse intermediate districts and area vocational-technical

education programs established under section 690(3) of the revised

school code, MCL 380.690, levying millages for area vocational-

technical education pursuant to sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690. The purpose, use, and

expenditure of the reimbursement shall be limited as if the funds

were generated by those millages.

(3) Reimbursement for the millages levied in ~~2013-2014~~ 2014-

2015 shall be made in ~~2014-2015~~ 2015-2016 at an amount per ~~2013-~~

~~2014~~ 2014-2015 membership pupil computed by subtracting from

~~$188,100.00~~ $189,400.00 the ~~2013-2014~~ 2014-2015 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2013-2014~~ 2014-2015 millage levied.

(4) The amount paid to a single intermediate district under

this section shall not exceed 38.4% of the total amount allocated

under subsection (2).

(5) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 65. (1) From the general fund money appropriated under

section 11, there is allocated an amount not to exceed $340,000.00

for 2015-2016 for a pre-college engineering K-12 educational

program that is focused on the development of a diverse future

Michigan workforce, that serves multiple communities within

southeast Michigan, that enrolls pupils from multiple districts,

and that received funds appropriated for this purpose in the

appropriations act that provided the Michigan strategic fund budget

for 2014-2015.

(2) To be eligible for funding under this section, a program

must have the ability to expose pupils to, and motivate and prepare

pupils for, science, technology, engineering, and mathematics

careers and postsecondary education with special attention given to

at-risk and underrepresented pupil groups in technical professions

and careers.

Sec. 67. (1) From the general fund amount appropriated in

section 11, there is allocated an amount not to exceed

$2,000,000.00 for 2015-2016 for college and career preparation

activities. The programs funded under this section are intended to

inform students of college and career options and to provide a wide

array of tools and resources intended to increase the number of

pupils who are adequately prepared with the information needed to

make informed decisions on college and career. The funds

appropriated under this section are intended to be used to increase

the number of Michigan residents with high-quality degrees or

credentials. Funds appropriated under this section shall not be

used to supplant funding for counselors already funded by

districts.

(2) Funding allocated in subsection (1) shall be used for the

college access program. The talent investment agency of the

department of talent and economic development shall administer

these funds in collaboration with the Michigan college access

network. These funds may be used for any of the following purposes:

(a) Michigan college access network operations, programming,

and services to local college access networks.

(b) Local college access networks, which are community-based

college access/success partnerships committed to increasing the

college participation and completion rates within geographically

defined communities through a coordinated strategy.

portal to help pupils and families plan and apply for college.

(d) Public awareness and outreach campaigns to encourage low-

income and first-generation college-going pupils to take necessary

steps toward college and to assist pupils and families in

completing a timely and accurate free application for federal

student aid.

(e) Subgrants to postsecondary institutions to recruit, hire,

and train college student mentors and college advisors to assist

high school pupils in navigating the postsecondary planning and

enrollment process.

Sec. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed ~~$3,316,500.00 for 2014-2015~~

$3,315,700.00 for 2015-2016 for the purposes of this section.

(2) From the allocation in subsection (1), there is allocated

for each fiscal year the amount necessary for payments to state

supported colleges or universities and intermediate districts

providing school bus driver safety instruction pursuant to section

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

payments shall be in an amount determined by the department not to

exceed the actual cost of instruction and driver compensation for

each public or nonpublic school bus driver attending a course of

instruction. For the purpose of computing compensation, the hourly

rate allowed each school bus driver shall not exceed the hourly

rate received for driving a school bus. Reimbursement compensating

the driver during the course of instruction shall be made by the

department to the college or university or intermediate district

providing the course of instruction.

(3) From the allocation in subsection (1), there is allocated

for ~~2014-2015~~ 2015-2016 the amount necessary to pay the reasonable

costs of nonspecial education auxiliary services transportation

provided pursuant to section 1323 of the revised school code, MCL

380.1323. Districts funded under this subsection shall not receive

funding under any other section of this article for nonspecial

education auxiliary services transportation.

(4) From the funds allocated in subsection (1), there is

allocated an amount not to exceed ~~$1,691,500.00 for 2014-2015~~

$1,690,700.00 for 2015-2016 for reimbursement to districts and

intermediate districts for costs associated with the inspection of

school buses and pupil transportation vehicles by the department of

state police as required under section 715a of the Michigan vehicle

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

transportation act, 1990 PA 187, MCL 257.1839. The department of

state police shall prepare a statement of costs attributable to

each district for which bus inspections are provided and submit it

to the department and to an intermediate district serving as

fiduciary in a time and manner determined jointly by the department

and the department of state police. Upon review and approval of the

statement of cost, the department shall forward to the designated

intermediate district serving as fiduciary the amount of the

reimbursement on behalf of each district and intermediate district

for costs detailed on the statement within 45 days after receipt of

the statement. The designated intermediate district shall make

payment in the amount specified on the statement to the department

of state police within 45 days after receipt of the statement. The

total reimbursement of costs under this subsection shall not exceed

the amount allocated under this subsection. Notwithstanding section

17b, payments to eligible entities under this subsection shall be

paid on a schedule prescribed by the department.

Sec. 81. (1) Except as otherwise provided in this section,

from the appropriation in section 11, there is allocated for ~~2014-~~

~~2015~~ 2015-2016 to the intermediate districts the sum necessary, but

not to exceed ~~$67,115,000.00~~ $67,108,000.00 to provide state aid to

intermediate districts under this section.

(2) From the allocation in subsection (1), there is allocated

for ~~2014-2015~~ 2015-2016 an amount not to exceed ~~$65,108,000.00~~

$67,108,000.00 for allocations to each intermediate district in an

amount equal to ~~104.8%~~ 103.1% of the amount allocated to the

intermediate district under this subsection for ~~2013-2014.~~ 2014-

2015. Funding provided under this section shall be used to comply

with requirements of this article and the revised school code that

are applicable to intermediate districts, and for which funding is

not provided elsewhere in this article, and to provide technical

assistance to districts as authorized by the intermediate school

board.

(3) Intermediate districts receiving funds under subsection

(2) shall collaborate with the department to develop expanded

professional development opportunities for teachers to update and

expand their knowledge and skills needed to support the Michigan

merit curriculum.

(4) From the allocation in subsection (1), there is allocated

to an intermediate district, formed by the consolidation or

annexation of 2 or more intermediate districts or the attachment of

a total intermediate district to another intermediate school

district or the annexation of all of the constituent K-12 districts

of a previously existing intermediate school district which has

disorganized, an additional allotment of $3,500.00 each fiscal year

for each intermediate district included in the new intermediate

district for 3 years following consolidation, annexation, or

attachment. ~~From the allocation in subsection (1), there is~~

~~allocated $7,000.00 for purposes of this subsection for 2012-2013,~~

~~for 2013-2014, and for 2014-2015, after which the payment under~~

~~this subsection will cease.~~

(5) In order to receive funding under subsection (2), an

intermediate district shall do all of the following:

(a) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

pupil accounting and auditing procedures, rules, and regulations.

(b) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

rules, regulations, and district reporting procedures for the

individual-level student data that serves as the basis for the

calculation of the district and high school graduation and dropout

rates.

code, MCL 380.1278a and 380.1278b.

(d) Furnish data and other information required by state and

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

(e) Comply with section 1230g of the revised school code, MCL

380.1230g.

(f) Comply with section 761 of the revised school code, MCL

380.761.

~~(6) From the allocation in subsection (1), there is allocated~~

~~an amount not to exceed $2,000,000.00 for 2014-2015 for an~~

~~incentive payment to each intermediate district that meets best~~

~~practices as determined by the department under this subsection.~~

~~The amount of the incentive payment is an amount equal to 3.1% of~~

~~the amount allocated to the intermediate district under subsection~~

~~(2). An intermediate district is eligible for an incentive payment~~

~~under this subsection if the intermediate district satisfies at~~

~~least 5 of the following requirements not later than June 1, 2015:~~

~~(a) The intermediate district enters into an agreement with~~

~~the department to comply with all of the following:~~

(i~~) If the intermediate district developed a service~~

~~consolidation plan in 2013-2014, implement the service~~

~~consolidation plan in 2014-2015 and report to the department not~~

~~later than February 1, 2015 on the intermediate district's progress~~

~~in implementing the service consolidation plan.~~

(ii~~) If the intermediate district did not develop a service~~

~~consolidation plan in 2012-2013 or 2013-2014, develop a service~~

~~consolidation plan in 2014-2015 to reduce operating costs that is~~

~~in compliance with guidelines that were developed by the department~~

~~for former section 11d as that section was in effect for 2010-2011.~~

(~~iii~~~~) Make the intermediate district's service consolidation~~

~~plan publicly available on the intermediate district's website.~~

~~(b) The intermediate district has obtained competitive bids on~~

~~the provision of 1 or more noninstructional services for the~~

~~intermediate district or its constituent districts with a value of~~

~~at least $50,000.00. The unfunded accrued liability costs for~~

~~retirement and other benefits shall be excluded from the~~

~~intermediate district's current costs for the purpose of comparing~~

~~competitive bids to the current costs of providing services.~~

~~(c) The intermediate district develops a technology plan in~~

~~accordance with department policy on behalf of all constituent~~

~~districts within the intermediate district that integrates~~

~~technology into the classroom and prepares teachers to use digital~~

~~technologies as part of the instructional program of each of its~~

~~constituent districts. An intermediate district that developed a~~

~~technology plan in 2012-2013 or 2013-2014 shall continue to~~

~~implement that technology plan in 2014-2015.~~

~~(d) The intermediate district provides to parents and~~

~~community members a dashboard or report card demonstrating the~~

~~intermediate district's efforts to manage its finances responsibly.~~

~~The dashboard or report card shall include revenue and expenditure~~

~~projections for the intermediate district for 2014-2015 and 2015-~~

~~2016, a listing of all debt service obligations, detailed by~~

~~project, including anticipated 2014-2015 payment for each project,~~

~~a listing of total outstanding debt, and at least all of the~~

~~following for the 3 most recent school years for which the data are~~

~~available:~~

(i~~) A list of services offered by the intermediate district~~

~~that are shared by other local or intermediate districts and a list~~

~~of the districts or intermediate districts that participate.~~

(ii~~) The total cost savings to local or other intermediate~~

~~districts that share services with the intermediate district.~~

(~~iii~~~~) The number and percentage of teachers in the~~

~~intermediate district service area that are trained to integrate~~

~~technology into the classroom.~~

(iv~~) The total funds received from levying special education~~

~~and vocational education millages, and the number of special~~

~~education and vocational education pupils served with those~~

~~dollars.~~

(v~~) The number and percentage of individualized education~~

~~programs developed for special education pupils that contain~~

~~academic goals.~~

~~(e) The intermediate district works in a consortium with 1 or~~

~~more other intermediate districts and the center to develop local~~

~~information management system requirements and bid specifications~~

~~that result in a recommended model information system that supports~~

~~interoperability to ensure linkage and connectivity in a manner~~

~~that facilitates the efficient exchange of data among districts,~~

~~intermediate districts, and the center. At a minimum, these~~

~~specifications shall include pupil management systems for both~~

~~general and special education, learning management tools, and~~

~~business services.~~

~~(f) If an intermediate district provides medical, pharmacy,~~

~~dental, vision, disability, long-term care, or any other type of~~

~~benefit that would constitute a health care services benefit, to~~

~~employees and their dependents, the intermediate district is the~~

~~policyholder for each of its insurance policies that covers 1 or~~

~~more of these benefits. An intermediate district that does not~~

~~directly employ its staff or an intermediate district with a~~

~~voluntary employee beneficiary association that pays no more than~~

~~the maximum per employee contribution amount and that contributes~~

~~no more than the maximum employer contribution percentage of total~~

~~annual costs for the medical benefit plans as described in sections~~

~~3 and 4 of the publicly funded health insurance contribution act,~~

~~2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied~~

~~this requirement.~~

Sec. 94. (1) From the general fund appropriation in section

11, there is allocated to the department for ~~2014-2015~~ 2015-2016 an

amount not to exceed $250,000.00 for efforts to increase the number

of pupils who participate and succeed in advanced placement and

international baccalaureate programs.

(2) From the funds allocated under this section, the

department shall award funds to cover all or part of the costs of

advanced placement test fees or international baccalaureate test

fees for low-income pupils who take an advanced placement or an

international baccalaureate test. Payments shall not exceed $20.00

per test completed.

(3) The department shall only award funds under this section

if the department determines that all of the following criteria are

met:

(a) Each pupil for whom payment is made meets eligibility

requirements of the federal advanced placement test fee program

under section 1701 of the no child left behind act of 2001, Public

Law 107-110.

(b) The tests are administered by the college board, the

international baccalaureate organization, or another test provider

approved by the department.

toward the cost of each test for which payment is made.

(4) The department shall establish procedures for awarding

funds under this section.

(5) Notwithstanding section 17b, payments under this section

shall be made on a schedule determined by the department.

Sec. 94a. (1) There is created within the state budget office

in the department of technology, management, and budget the center

for educational performance and information. The center shall do

all of the following:

(a) Coordinate the collection of all data required by state

and federal law from districts, intermediate districts, and

postsecondary institutions.

(b) Create, maintain, and enhance this state's P-20

longitudinal data system and ensure that it meets the requirements

of subsection (4).

order to reduce the administrative burden on reporting entities,

including, but not limited to, electronic transcript services.

(d) Create, maintain, and enhance this state's web-based

educational portal to provide information to school leaders,

teachers, researchers, and the public in compliance with all

federal and state privacy laws. Data shall include, but are not

limited to, all of the following:

(i) Data sets that link teachers to student information,

allowing districts to assess individual teacher impact on student

performance and consider student growth factors in teacher and

principal evaluation systems.

(ii) Data access or, if practical, data sets, provided for

regional data warehouses that, in combination with local data, can

improve teaching and learning in the classroom.

(iii) Research-ready data sets for researchers to perform

research that advances this state's educational performance.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide public reports to the citizens of this state to

allow them to assess allocation of resources and the return on

their investment in the education system of this state.

(g) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects

information from districts, intermediate districts, or

postsecondary institutions as required under state or federal law

shall make arrangements with the center to ensure that the state

department, officer, or agency is in compliance with subsection

(1). This subsection does not apply to information collected by the

department of treasury under the uniform budgeting and accounting

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

388.1939; or section 1351a of the revised school code, MCL

380.1351a.

(3) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(4) The center shall ensure that the P-20 longitudinal data

system required under subsection (1)(b) meets all of the following:

(a) Includes data at the individual student level from

preschool through postsecondary education and into the workforce.

(b) Supports interoperability by using standard data

structures, data formats, and data definitions to ensure linkage

and connectivity in a manner that facilitates the exchange of data

among agencies and institutions within the state and between

states.

records so that an individual student may be matched with those

teachers providing instruction to that student.

(d) Enables the matching of individual teachers with

information about their certification and the institutions that

prepared and recommended those teachers for state certification.

(e) Enables data to be easily generated for continuous

improvement and decision-making, including timely reporting to

parents, teachers, and school leaders on student achievement.

(f) Ensures the reasonable quality, validity, and reliability

of data contained in the system.

(g) Provides this state with the ability to meet federal and

state reporting requirements.

(h) For data elements related to preschool through grade 12

and postsecondary, meets all of the following:

(i) Contains a unique statewide student identifier that does

not permit a student to be individually identified by users of the

system, except as allowed by federal and state law.

(ii) Contains student-level enrollment, demographic, and

program participation information.

(iii) Contains student-level information about the points at

which students exit, transfer in, transfer out, drop out, or

complete education programs.

(iv) Has the capacity to communicate with higher education

data systems.

(i) For data elements related to preschool through grade 12

only, meets all of the following:

(i) Contains yearly test records of individual students for

assessments approved by DED-OESE for accountability purposes under

section 1111(b) of the elementary and secondary education act of

1965, 20 USC 6311, including information on individual students not

tested, by grade and subject.

(ii) Contains student-level transcript information, including

information on courses completed and grades earned.

(iii) Contains student-level college readiness test scores.

(j) For data elements related to postsecondary education only:

(i) Contains data that provide information regarding the

extent to which individual students transition successfully from

secondary school to postsecondary education, including, but not

limited to, all of the following:

(A) Enrollment in remedial coursework.

(B) Completion of 1 year's worth of college credit applicable

to a degree within 2 years of enrollment.

(ii) Contains data that provide other information determined

necessary to address alignment and adequate preparation for success

in postsecondary education.

(5) From the general fund appropriation in section 11, there

is allocated an amount not to exceed ~~$12,022,800.00 for 2014-2015~~

$11,967,000.00 for 2015-2016 to the department of technology,

management, and budget to support the operations of the center. In

addition, from the federal funds appropriated in section 11 there

is allocated for ~~2014-2015~~ 2015-2016 the amount necessary,

estimated at $193,500.00, to support the operations of the center

and to establish a P-20 longitudinal data system ~~as provided under~~

~~this section in compliance with the assurance provided to the~~

~~United States department of education in order to receive state~~

~~fiscal stabilization funds.~~ necessary for state and federal

reporting purposes. The center shall cooperate with the department

to ensure that this state is in compliance with federal law and is

maximizing opportunities for increased federal funding to improve

education in this state.

(6) From the funds allocated in subsection (5), there is

allocated for ~~2014-2015~~ 2015-2016 an amount ~~not to exceed~~

~~$850,000.00~~ determined by the center for competitive grants to

support collaborative efforts on the P-20 longitudinal data system.

All of the following apply to grants awarded under this subsection:

(a) The center shall award competitive grants to eligible

intermediate districts or a consortium of intermediate districts

based on criteria established by the center.

(b) Activities funded under the grant shall support the P-20

longitudinal data system portal and may include portal hosting,

hardware and software acquisition, maintenance, enhancements, user

support and related materials, and professional learning tools and

activities aimed at improving the utility of the P-20 longitudinal

data system.

for the immediately preceding fiscal year shall receive priority

for funding under this section. However, after 3 fiscal years of

continuous funding, an applicant is required to compete openly with

new applicants.

(7) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year and are appropriated for the

purposes for which the funds were originally allocated.

(8) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (5) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(9) As used in this section:

(a) "DED-OESE" means the United States ~~department of education~~

~~office of elementary and secondary education.~~Department of

Education Office of Elementary and Secondary Education.

(b) "State education agency" means the department.

Sec. 95a. (1) The educator evaluation reserve fund is created

as a separate account within the state school aid fund.

(2) The state treasurer may receive money or other assets from

any source for deposit into the educator evaluation reserve fund.

The state treasurer shall direct the investment of the educator

evaluation reserve fund. The state treasurer shall credit to the

educator evaluation reserve fund interest and earnings from the

educator evaluation reserve fund.

(3) Money in the educator evaluation reserve fund at the close

of the fiscal year shall remain in the educator evaluation reserve

fund and shall not lapse to the state school aid fund or to the

general fund. The department of treasury shall be the administrator

of the educator evaluation reserve fund for auditing purposes.

(4) From the appropriations in section 11, there is allocated

to the educator evaluation reserve fund for 2014-2015 an amount not

to exceed $12,100,000.00 from the state school aid fund and an

amount not to exceed $2,700,000.00 from the general fund. Subject

to subsections (5) and (6), the department shall expend the money

in the educator evaluation reserve fund for implementing evaluation

systems for public school teachers and school administrators.

~~(5) Funds in the educator evaluation reserve fund shall not be~~

~~expended unless House Bill Nos. 5223 and 5224 of the 97th~~

~~Legislature are enacted into law.~~

(5) ~~(6)~~ Funds in the educator evaluation reserve fund shall

not be expended unless the state budget office has approved the

department's spending plan.

Sec. 98. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed

~~$7,387,500.00 for 2014-2015~~ $7,987,500.00 for 2015-2016 for the

purposes described in this section.

(2) The Michigan ~~virtual university~~ Virtual University shall

operate the Michigan ~~virtual learning research institute.~~ Virtual

Learning Research Institute. The Michigan ~~virtual learning research~~

~~institute~~ Virtual Learning Research Institute shall do all of the

following:

(a) Support and accelerate innovation in education through the

following activities:

(i) Test, evaluate, and recommend as appropriate new

technology-based instructional tools and resources.

(ii) Research, design, and recommend digital education

delivery models for use by pupils and teachers that include age-

appropriate multimedia instructional content.

(iii) Research, develop, and recommend annually to the

department criteria by which cyber schools and online course

providers should be monitored and evaluated to ensure a quality

education for their pupils.

(iv) Based on pupil completion and performance data reported

to the department or the center for educational performance and

information from cyber schools and other online course providers

operating in this state, analyze the effectiveness of online

learning delivery models in preparing pupils to be college- and

career-ready and publish a report that highlights enrollment

totals, completion rates, and the overall impact on pupils. The

report shall be submitted to the house and senate appropriations

subcommittees on state school aid, the state budget director, the

house and senate fiscal agencies, and the department not later than

~~December 1, 2015.~~March 31, 2016.

(v) Before August 31, ~~2015,~~ 2016, provide an extensive

professional development program to at least 500 educational

personnel, including teachers, school administrators, and school

board members, that focuses on the effective integration of digital

learning into curricula and instruction. Not later than December 1,

~~2015,~~ 2016, the Michigan ~~virtual learning research institute~~

Virtual Learning Research Institute shall submit a report to the

house and senate appropriations subcommittees on state school aid,

the state budget director, the house and senate fiscal agencies,

and the department on the number and percentage of teachers, school

administrators, and school board members who have received

professional development services from the Michigan ~~virtual~~

~~university.~~ Virtual University. The report shall also identify

barriers and other opportunities to encourage the adoption of

digital learning in the public education system.

(vi) Identify and share best practices for planning,

implementing, and evaluating online and blended education delivery

models with intermediate districts, districts, and public school

academies to accelerate the adoption of innovative education

delivery models statewide.

(b) Provide leadership for this state's system of digital

learning education by doing the following activities:

(i) Develop and report policy recommendations to the governor

and the legislature that accelerate the expansion of effective

online learning in this state's schools.

(ii) Provide a clearinghouse for research reports, academic

studies, evaluations, and other information related to online

learning.

(iii) Promote and distribute the most current instructional

design standards and guidelines for online teaching.

(iv) In collaboration with the department and interested

colleges and universities in this state, support implementation and

improvements related to effective digital learning instruction.

(v) ~~Pursue public/private partnerships that include districts~~

~~to study and implement competency-based technology-rich online~~

~~learning models.~~Create a statewide network of school-based mentors

serving as liaisons between pupils, online instructors, parents,

and school staff and provide mentors with research-based training

and technical assistance designed to help more pupils be successful

online learners.

(vi) Convene focus groups and conduct annual surveys of

teachers, administrators, pupils, parents, and others to identify

barriers and opportunities related to online learning.

(vii) Produce an annual consumer awareness report for schools

and parents about effective online education providers and

education delivery models, performance data, cost structures, and

research trends.

(viii) Research and establish an internet-based platform that

educators can use to create student-centric learning tools and

resources and facilitate a user network that assists educators in

using the platform. As part of this initiative, the Michigan

virtual university shall work collaboratively with districts and

intermediate districts to establish a plan to make available online

resources that align to Michigan's K-12 curriculum standards for

use by students, educators, and parents.

(ix) Create and maintain a public statewide catalog of online

learning courses being offered by all public schools and community

colleges in this state. The Michigan ~~virtual learning research~~

~~institute~~ Virtual Learning Research Institute shall identify and

develop a list of nationally recognized best practices for online

learning and use this list to support reviews of online course

vendors, courses, and instructional practices. The Michigan ~~virtual~~

~~learning research institute~~ Virtual Learning Research Institute

shall also provide a mechanism for intermediate districts to use

the identified best practices to review content offered by

constituent districts. The Michigan ~~virtual learning research~~

~~institute~~ Virtual Learning Research Institute shall review the

online course offerings of the Michigan ~~virtual university,~~ Virtual

University, and make the results from these reviews available to

the public as part of the statewide catalog. The Michigan ~~virtual~~

~~learning research institute~~ Virtual Learning Research Institute

shall ensure that the statewide catalog is made available to the

public on the Michigan ~~virtual university~~ Virtual University

website and shall allow the ability to link it to each district's

website as provided for in section 21f. ~~Beginning in 2014-2015, the~~

The statewide catalog shall also contain all of the following:

(A) The number of enrollments in each online course in the

immediately preceding school year.

(B) The number of enrollments that earned 60% or more of the

total course points for each online course in the immediately

preceding school year.

(x) ~~Collaborate with key stakeholders to examine the need and~~

~~process for incorporating~~ Develop prototype and pilot registration,

payment services, and transcript functionality to the statewide

catalog and train key stakeholders on how to use new features.

(xi~~) Collaborate with key stakeholders to examine district~~

~~level accountability and teacher effectiveness issues related to~~

~~online learning under section 21f and make findings and~~

~~recommendations publicly available.~~

(3) ~~In order for the Michigan virtual university to receive~~

~~any funds allocated under this section, the~~ To further enhance its

expertise and leadership in digital learning, the Michigan Virtual

University shall continue to operate the Michigan Virtual School as

a statewide laboratory and quality model of instruction by

implementing online and blended learning solutions for Michigan

schools in accordance with the following parameters:

(a) The Michigan ~~virtual school~~ Virtual School must maintain

its accreditation status from recognized national and international

accrediting entities.

(b) The Michigan Virtual University shall use no more than

$1,000,000.00 of the amount allocated under this section to

subsidize the cost paid by districts for online courses.

teaching of online courses as provided for in this section, the

Michigan Virtual School shall follow the requirements to request

and assess, and the department of state police shall provide, a

criminal history check and criminal records check under sections

1230 and 1230a of the revised school code, MCL 380.1230 and

380.1230a, in the same manner as if the Michigan Virtual School

were a district.

(4) If the course offerings are included in the statewide

catalog of online courses under subsection (2)(b)(ix), the Michigan

~~virtual school~~ Virtual School operated by the Michigan ~~virtual~~

~~university~~ Virtual University may offer online course offerings,

including, but not limited to, all of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section

1471 of the revised school code, MCL 380.1471.

(d) Programs and services for at-risk pupils.

(e) General education development test preparation courses for

adjudicated youth.

(f) Special interest courses.

(g) Professional development programs for teachers, school

administrators, other school employees, and school board members.

(5) If a home-schooled or nonpublic school student is a

resident of a district that subscribes to services provided by the

Michigan ~~virtual school,~~ Virtual School, the student may use the

services provided by the Michigan ~~virtual school~~ Virtual School to

the district without charge to the student beyond what is charged

to a district pupil using the same services.

(6) Not later than December 1 of each fiscal year, the

Michigan ~~virtual university~~ Virtual University shall provide a

report to the house and senate appropriations subcommittees on

state school aid, the state budget director, the house and senate

fiscal agencies, and the department that includes at least all of

the following information related to the Michigan ~~virtual school~~

Virtual School for the preceding state fiscal year:

(a) A list of the districts served by the Michigan ~~virtual~~

~~school.~~Virtual School.

(b) A list of online course titles available to districts.

information on registrations and completions by course.

(d) The overall course completion rate percentage.

(7) The governor may appoint an advisory group for the

Michigan ~~virtual learning research institute~~ Virtual Learning

Research Institute established under subsection (2). The members of

the advisory group shall serve at the pleasure of the governor and

shall serve without compensation. The purpose of the advisory group

is to make recommendations to the governor, the legislature, and

the president and board of the Michigan ~~virtual university~~ Virtual

University that will accelerate innovation in this state's

education system in a manner that will prepare elementary and

secondary students to be career and college ready and that will

promote the goal of increasing the percentage of citizens of this

state with high-quality degrees and credentials to at least 60% by

2025.

(8) Not later than November 1, ~~2014,~~ 2015, the Michigan

~~virtual university~~ Virtual University shall submit to the house and

senate appropriations subcommittees on state school aid, the state

budget director, and the house and senate fiscal agencies a

detailed budget for the ~~2014-2015~~ 2015-2016 fiscal year that

includes a breakdown on its projected costs to deliver online

educational services to districts and a summary of the anticipated

fees to be paid by districts for those services. ~~Beginning in 2013-~~

~~2014, not~~ Not later than ~~February 1,~~ March 1 each year, the

Michigan ~~virtual university~~ Virtual University shall submit to the

house and senate appropriations subcommittees on state school aid,

the state budget director, and the house and senate fiscal agencies

a breakdown on its actual costs to deliver online educational

services to districts and a summary of the actual fees paid by

districts for those services based on audited financial statements

for the immediately preceding fiscal year.

(9) As used in this section:

(a) "Blended learning" means a hybrid instructional delivery

model where pupils are provided content, instruction, and

assessment, in part at a supervised educational facility away from

home where the pupil and a teacher with a valid Michigan teaching

certificate are in the same physical location and in part through

~~internet-connected~~ Internet-connected learning environments with

some degree of pupil control over time, location, and pace of

instruction.

(b) "Cyber school" means a full-time instructional program of

online courses for pupils that may or may not require attendance at

a physical school location.

based educational delivery system that uses various information

technologies to provide a structured learning environment,

including online and blended learning instructional methods.

(d) "Online course" means a course of study that is capable of

generating a credit or a grade, that is provided in an interactive

internet-connected learning environment, in which pupils are

separated from their teachers by time or location, or both, and in

which a teacher who holds a valid Michigan teaching certificate is

responsible for providing instruction, determining appropriate

instructional methods for each pupil, diagnosing learning needs,

assessing pupil learning, prescribing intervention strategies,

reporting outcomes, and evaluating the effects of instruction and

support strategies.

Sec. 99. (1) ~~From the funds appropriated in section 11, there~~

~~is allocated for 2014-2015 an amount not to exceed $2,750,000.00~~

~~from the state school aid fund and an amount not to exceed~~

~~$475,000.00 from the general fund to support the activities and~~

~~programs of mathematics and science centers and for other purposes~~

~~as described in this section. In addition, from~~ From the federal

funds appropriated in section 11, there is allocated for ~~2014-2015~~

2015-2016 an amount estimated at $5,249,300.00 from DED-OESE, title

II, mathematics and science partnership grants to support

mathematics and science centers.

(2) Within a service area designated locally, approved by the

department, and consistent with the comprehensive master plan for

mathematics and science centers developed by the department and

approved by the state board, an established mathematics and science

center shall provide 2 or more of the following 6 basic services,

as described in the master plan, to constituent districts and

communities: leadership, pupil services, curriculum support,

community involvement, professional development, and resource

clearinghouse services.

~~(3) The department shall not award a state grant under this~~

~~section to more than 1 mathematics and science center located in a~~

~~designated region as prescribed in the 2007 master plan unless each~~

~~of the grants serves a distinct target population or provides a~~

~~service that does not duplicate another program in the designated~~

~~region.~~

(3) ~~(4)~~ As part of the technical assistance process, the

department shall provide minimum standard guidelines that may be

used by the mathematics and science center for providing fair

access for qualified pupils and professional staff as prescribed in

this section.

(4) ~~(5)~~ Allocations under this section to support the

activities and programs of mathematics and science centers shall be

continuing support grants to all 33 established mathematics and

science centers. ~~Each established mathematics and science center~~

~~that was funded in the immediately preceding fiscal year shall~~

~~receive state funding in an amount equal to 100% of the amount it~~

~~was allocated under this subsection for the immediately preceding~~

~~fiscal year. If a center declines state funding or a center closes,~~

~~the remaining money available under this section shall be~~

~~distributed to the remaining centers, as determined by the~~

~~department.~~

~~(6) From the funds allocated in subsection (1), there is~~

~~allocated for 2014-2015 an amount not to exceed $750,000.00 in a~~

~~form and manner determined by the department to those centers able~~

~~to provide curriculum and professional development support to~~

~~assist districts in implementing the Michigan merit curriculum~~

~~components for mathematics and science. Funding under this~~

~~subsection is in addition to funding allocated under subsection~~

~~(5).~~

~~(7) From the general fund money allocated in subsection (1),~~

~~there is allocated for 2014-2015 an amount not to exceed~~

~~$100,000.00 to the Michigan STEM partnership, to be used to~~

~~administer the grant process under this subsection. From the~~

~~general fund money allocated in subsection (1), there is allocated~~

~~for 2014-2015 an amount not to exceed $375,000.00 to the Michigan~~

~~STEM partnership to be used for a competitive grant process to~~

~~award competitive grants to organizations conducting student-~~

~~focused, project-based programs and competitions, either in the~~

~~classroom or extracurricular, in science, technology, engineering,~~

~~and mathematics subjects such as, but not limited to, robotics,~~

~~coding, and design-build-test projects, from pre-kindergarten~~

~~through college level. Funding under this subsection is in addition~~

~~to funding allocated under subsection (5) and shall be used for~~

~~connecting mathematics and science centers for science, technology,~~

~~engineering, and mathematics purposes and to support the goals of~~

~~the Michigan STEM partnership. A program receiving funds under~~

~~section 99h may not receive funds under this subsection.~~

(5) ~~(8)~~ In order to receive ~~state or~~ federal funds under this

section, a grant recipient shall allow access for the department or

the department's designee to audit all records related to the

program for which it receives such funds. The grant recipient shall

reimburse the state for all disallowances found in the audit.

(6) ~~(9)~~ Not later than September 30, 2018, the department

shall reevaluate and update the comprehensive master plan described

in subsection ~~(1).~~(2).

(7) ~~(10)~~ The department shall give preference in awarding the

federal grants allocated in subsection (1) to eligible existing

mathematics and science centers.

~~(11) In order to receive state funds under this section, a~~

~~grant recipient shall provide at least a 10% local match from local~~

~~public or private resources for the funds received under this~~

~~section.~~

(8) ~~(12)~~ Not later than July 1 of each year, a mathematics and

science center that receives funds under this section shall report

to the department in a form and manner prescribed by the department

on the following performance measures:

(a) Statistical change in pre- and post-assessment scores for

students who enrolled in mathematics and science activities

provided to districts by the mathematics and science center.

(b) Statistical change in pre- and post-assessment scores for

teachers who enrolled in professional development activities

provided by the mathematics and science center.

(9) ~~(13)~~ As used in this section:

(a) "DED" means the United States ~~department of~~

~~education.~~Department of Education.

(b) "DED-OESE" means the DED ~~office of elementary and~~

~~secondary education.~~Office of Elementary and Secondary Education.

Sec. 99b. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $330,000.00 for ~~2014-2015~~

2015-2016 for grants to districts to support professional

development for teachers in a department-approved training program

for science, technology, engineering, and mathematics (STEM)

instruction.

(2) Any district may apply for funding under this section for

~~2014-2015~~ 2015-2016 by a date determined by the department.

~~Beginning in 2014-2015, in~~ In awarding grants, the department shall

give priority, in a form and manner determined by the department,

to applicant districts with teachers who have not previously

received training in programs funded under this section.

(3) For a training program to be approved by the department

for the purposes of this section, the program shall meet all of the

following criteria:

(a) Utilizes an integrative STEM approach to content

organization and delivery. The integrative STEM approach shall

include content derived from science, technology, engineering, and

mathematics.

(b) Offers evidence that the program outcomes address

mathematics, science, and technological literacy standards in an

exploratory middle school or high school offering.

student career choices along STEM career paths and increases

student engagement through peer-reviewed research.

(d) Presents evidence of the periodic improvement of the

curriculum.

(e) Utilizes outcome measures for teacher professional

development.

(f) Provides peer-reviewed evidence that the program is

effective with disadvantaged students and those with language

barriers.

(4) The department shall award grants to districts in an

amount determined by the department, but not to exceed $3,200.00

per participant.

(5) A district receiving funds under this section shall use

the funds only for department-approved training programs under this

section.

Sec. 99h. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$2,000,000.00 for 2014-2015~~

$2,660,000.00 for 2015-2016 for competitive grants to districts

that provide pupils in grades 7 K to 12 with expanded opportunities

to improve mathematics, science, and technology skills by

participating in events hosted by a science and technology

development program known as FIRST (for inspiration and recognition

of science and technology) robotics, including Jr. FIRST LEGO

league, FIRST LEGO league, FIRST tech challenge, and FIRST robotics

competition.

(2) A district applying for a ~~FIRST tech challenge or FIRST~~

~~robotics competition program~~ grant under this section shall submit

an application in a form and manner determined by the department.

To be eligible for a grant, a district shall demonstrate in its

application that the district has established a partnership for the

purposes of the FIRST program with at least 1 sponsor, business

entity, higher education institution, or technical school, shall

submit a spending plan, and shall pay at least 25% of the cost of

the FIRST robotics program.

(3) The department shall distribute the grant funding under

this section for the following purposes:

(a) Grants to districts to pay for stipends of $1,500.00 for 1

coach per team. ~~, distributed as follows:~~

(i~~) Not more than 500 stipends for coaches of high school~~

~~teams, including existing teams.~~

(ii~~) Not more than 100 stipends for coaches of middle school~~

~~or junior high teams, including existing teams.~~

(~~iii~~) If the requests for stipends exceed the numbers of

stipends allowed, ~~under subparagraphs (~~i~~) and (~~ii), and if there is

funding remaining unspent under subdivisions (b) and (c), the

department shall use that remaining unspent funding for grants to

districts to pay for additional stipends in a manner that expands

the geographical distribution of teams.

(b) Grants to districts for event registrations, materials,

travel costs, and other expenses associated with the preparation

for and attendance at ~~FIRST tech challenge and~~ FIRST robotics

events and competitions. Each grant recipient shall provide a local

match from other private or local funds for the funds received

under this subdivision equal to at least 50% of the costs of

participating in an event. The department shall set maximum grant

amounts under this subdivision in a manner that maximizes the

number of teams that will be able to receive funding.

the state and world championship competitions. The department shall

determine an equal amount per team for those teams that advance to

the state championship and a second equal award amount to those

teams that advance to the world championship.

(4) The funds allocated under this section are a work project

appropriation, and any unexpended funds for ~~2014-2015~~ 2015-2016 are

carried forward into ~~2015-2016.~~ 2016-2017. The purpose of the work

project is to continue to implement the projects described under

subsection (1). The estimated completion date of the work project

is September 30, ~~2017.~~2018.

Sec. 99q. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $900,000.00 for 2015-2016 for

competitive grants to districts for education programs in science,

technology, engineering, and mathematics (STEM).

(2) From the allocation under subsection (1), there is

allocated an amount not to exceed $500,000.00 for 2015-2016 for

competitive grants to districts that provide pupils in grades

kindergarten to 12 with expanded opportunities in science education

and skills by participating in events and competitions hosted by

Science Olympiad.

(3) A district applying for a grant under subsection (2) shall

submit an application in the form and manner determined by the

department not later than November 15, 2015. The department shall

select districts for grants and make notification not later than

December 15, 2015. To be eligible for a grant, a district shall pay

at least 25% of the cost of participating in the Science Olympiad

program.

(4) The department shall distribute the grant funding

allocated under subsection (2) for the following purposes:

(a) Grants to districts of up to $800.00 for new elementary

teams.

(b) Grants to districts of up to $400.00 for established

elementary teams.

teams.

(d) Grants to districts of up to $800.00 for established

secondary teams.

(5) From the allocation under subsection (1), there is

allocated an amount not to exceed $400,000.00 for 2015-2016 for

competitive grants to districts for student-participatory

experiential learning STEM programs including curricula and

professional development to help teachers integrate experiential

learning options into the classroom. To be eligible for a grant, a

district shall pay at least 25% of the cost of the program.

Sec. 99r. From the general fund money appropriated in section

11, there is allocated an amount not to exceed $500,000.00 for

2015-2016 for a grant to the Van Andel Education Institute for the

purposes of advancing and promoting science education and

increasing the number of students who choose to pursue careers in

science or science-related fields. Funds allocated under this

section shall be used to provide professional development for

science teachers in using student-driven, inquiry-based

instruction.

Sec. 99s. From the funds appropriated under section 11, there

is allocated an amount not to exceed $100.00 for 2015-2016 for

Michigan science, technology, engineering, and mathematics (MiSTEM)

grants to districts or intermediate districts. The amount of each

grant awarded under this section shall be determined by the MiSTEM

State Advisory Council. To be eligible for a grant under this

section, a district or intermediate district must implement a

science, technology, engineering, and mathematics (STEM) program or

curriculum from the MiSTEM statewide menu of programs and curricula

approved by the MiSTEM State Advisory Council. To the extent

possible, the MiSTEM State Advisory Council shall award grants in a

manner that ensures that at least 1 district or intermediate

district in each of the state's 10 prosperity regions receives

funding under this section.

Sec. 101. (1) To be eligible to receive state aid under this

article, not later than the fifth Wednesday after the pupil

membership count day and not later than the fifth Wednesday after

the supplemental count day, each district superintendent shall

submit to the center and the intermediate superintendent, in the

form and manner prescribed by the center, the number of pupils

enrolled and in regular daily attendance in the district as of the

pupil membership count day and as of the supplemental count day, as

applicable, for the current school year. In addition, a district

maintaining school during the entire year, as provided under

section 1561 of the revised school code, MCL 380.1561, shall submit

to the center and the intermediate superintendent, in the form and

manner prescribed by the center, the number of pupils enrolled and

in regular daily attendance in the district for the current school

year pursuant to rules promulgated by the superintendent. Not later

than the sixth Wednesday after the pupil membership count day and

not later than the sixth Wednesday after the supplemental count

day, the district shall certify the data in a form and manner

prescribed by the center and file the certified data with the

intermediate superintendent. If a district fails to submit and

certify the attendance data, as required under this subsection, the

center shall notify the department and state aid due to be

distributed under this article shall be withheld from the

defaulting district immediately, beginning with the next payment

after the failure and continuing with each payment until the

district complies with this subsection. If a district does not

comply with this subsection by the end of the fiscal year, the

district forfeits the amount withheld. A person who willfully

falsifies a figure or statement in the certified and sworn copy of

enrollment shall be punished in the manner prescribed by section

161.

(2) To be eligible to receive state aid under this article,

not later than the twenty-fourth Wednesday after the pupil

membership count day and not later than the twenty-fourth Wednesday

after the supplemental count day, an intermediate district shall

submit to the center, in a form and manner prescribed by the

center, the audited enrollment and attendance data for the pupils

of its constituent districts and of the intermediate district. If

an intermediate district fails to submit the audited data as

required under this subsection, state aid due to be distributed

under this article shall be withheld from the defaulting

intermediate district immediately, beginning with the next payment

after the failure and continuing with each payment until the

intermediate district complies with this subsection. If an

intermediate district does not comply with this subsection by the

end of the fiscal year, the intermediate district forfeits the

amount withheld.

(3) Except as otherwise provided in subsections (11) and (12),

all of the following apply to the provision of pupil instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours and, beginning in 2010-

2011, the required minimum number of days of pupil instruction.

Beginning in 2014-2015, the required minimum number of days of

pupil instruction is 175. However, all of the following apply to

these requirements:

(i) If a collective bargaining agreement that provides a

complete school calendar was in effect for employees of a district

as of July 1, 2013, and if that school calendar is not in

compliance with this subsection, then this subsection does not

apply to that district until after the expiration of that

collective bargaining agreement. If a district entered into a

collective bargaining agreement on or after July 1, 2013 and if

that collective bargaining agreement did not provide for at least

175 days of pupil instruction beginning in 2014-2015, then the

department shall withhold from the district's total state school

aid an amount equal to 5% of the funding the district receives in

2014-2015 under sections 22a and 22b.

(ii) A district may apply for a waiver under subsection (9)

from the requirements of this subdivision.

(b) Beginning in 2016-2017, the required minimum number of

days of pupil instruction is 180. If a collective bargaining

agreement that provides a complete school calendar was in effect

for employees of a district as of the effective date of the

amendatory act that added this subdivision, and if that school

calendar is not in compliance with this subdivision, then this

subdivision does not apply to that district until after the

expiration of that collective bargaining agreement. A district may

apply for a waiver under subsection (9) from the requirements of

this subdivision.

failing to comply with the required minimum hours and days of pupil

instruction under this subsection shall forfeit from its total

state aid allocation an amount determined by applying a ratio of

the number of hours or days the district was in noncompliance in

relation to the required minimum number of hours and days under

this subsection. Not later than August 1, the board of each

district shall certify to the department the number of hours and

days of pupil instruction in the previous school year. If the

district did not provide at least the required minimum number of

hours and days of pupil instruction under this subsection, the

deduction of state aid shall be made in the following fiscal year

from the first payment of state school aid. A district is not

subject to forfeiture of funds under this subsection for a fiscal

year in which a forfeiture was already imposed under subsection

(6).

(d) Hours or days lost because of strikes or teachers'

conferences shall not be counted as hours or days of pupil

instruction.

(e) If a collective bargaining agreement that provides a

complete school calendar is in effect for employees of a district

as of October 19, 2009, and if that school calendar is not in

compliance with this subsection, then this subsection does not

apply to that district until after the expiration of that

collective bargaining agreement.

(f) Except as otherwise provided in subdivisions (g) and (h),

a district not having at least 75% of the district's membership in

attendance on any day of pupil instruction shall receive state aid

in that proportion of 1/180 that the actual percent of attendance

bears to the specified percentage.

(g) If a district adds 1 or more days of pupil instruction to

the end of its instructional calendar for a school year to comply

with subdivision (a) because the district otherwise would fail to

provide the required minimum number of days of pupil instruction

even after the operation of subsection (4) due to conditions not

within the control of school authorities, then subdivision (f) does

not apply for any day of pupil instruction that is added to the end

of the instructional calendar. Instead, for any of those days, if

the district does not have at least 60% of the district's

membership in attendance on that day, the district shall receive

state aid in that proportion of 1/180 that the actual percentage of

attendance bears to the specified percentage. For any day of pupil

instruction added to the instructional calendar as described in

this subdivision, the district shall report to the department the

percentage of the district's membership that is in attendance, in

the form and manner prescribed by the department.

(h) At the request of a district that operates a department-

approved alternative education program and that does not provide

instruction for pupils in all of grades K to 12, the superintendent

~~may~~ shall grant a waiver from the requirements of subdivision (f).

The waiver shall indicate that an eligible district is subject to

the proration provisions of subdivision (f) only if the district

does not have at least 50% of the district's membership in

attendance on any day of pupil instruction. In order to be eligible

for this waiver, a district must maintain records to substantiate

its compliance with the following requirements:

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil's individual education plan.

(i) All of the following apply to a waiver granted under

subdivision (h):

(i) If the waiver is for a blended model of delivery, a waiver

that is granted for the 2011-2012 fiscal year or a subsequent

fiscal year remains in effect unless it is revoked by the

superintendent.

(ii) If the waiver is for a 100% online model of delivery and

the educational program for which the waiver is granted makes

educational services available to pupils for a minimum of at least

1,098 hours during a school year and ensures that each pupil

participates in the educational program for at least 1,098 hours

during a school year, a waiver that is granted for the 2011-2012

fiscal year or a subsequent fiscal year remains in effect unless it

is revoked by the superintendent.

(iii) A waiver that is not a waiver described in subparagraph

(i) or (ii) is valid for 1 fiscal year and must be renewed annually

to remain in effect.

(j) The superintendent shall promulgate rules for the

implementation of this subsection.

(4) Except as otherwise provided in this subsection, the first

6 days or the equivalent number of hours for which pupil

instruction is not provided because of conditions not within the

control of school authorities, such as severe storms, fires,

epidemics, utility power unavailability, water or sewer failure, or

health conditions as defined by the city, county, or state health

authorities, shall be counted as hours and days of pupil

instruction. With the approval of the superintendent of public

instruction, the department shall count as hours and days of pupil

instruction for a fiscal year not more than 6 3 additional days or

the equivalent number of additional hours for which pupil

instruction is not provided in a district ~~after April 1 of the~~

~~applicable school year~~ due to unusual and extenuating occurrences

resulting from conditions not within the control of school

authorities such as those conditions described in this subsection.

Subsequent such hours or days shall not be counted as hours or days

of pupil instruction.

(5) A district shall not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) In addition to any other penalty or forfeiture under this

section, if at any time the department determines that 1 or more of

the following have occurred in a district, the district shall

forfeit in the current fiscal year beginning in the next payment to

be calculated by the department a proportion of the funds due to

the district under this article that is equal to the proportion

below the required minimum number of hours and days of pupil

instruction under subsection (3), as specified in the following:

(a) The district fails to operate its schools for at least the

required minimum number of hours and days of pupil instruction

under subsection (3) in a school year, including hours and days

counted under subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours and days of pupil instruction under subsection (3) in a

school year, including hours and days counted under subsection (4).

(7) In providing the minimum number of hours and days of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, shall be considered to be pupil instruction time for

the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a junior reserve officer training corps (JROTC) program shall be

considered to be pupil instruction time regardless of whether the

instructor is a certificated teacher if all of the following are

met:

(i) The instructor has met all of the requirements established

by the United States ~~department of defense~~ Department of Defense

and the applicable branch of the armed services for serving as an

instructor in the junior reserve officer training corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) Except as otherwise provided in subsections (11) and (12),

the department shall apply the guidelines under subsection (7) in

calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent ~~may~~ shall waive for a district the minimum

number of hours and days of pupil instruction requirement of

subsection (3) for a department-approved alternative education

program or another innovative program approved by the department,

including a 4-day school week. If a district applies for and

receives a waiver under this subsection and complies with the terms

of the waiver, the district is not subject to forfeiture under this

section for the specific program covered by the waiver. If the

district does not comply with the terms of the waiver, the amount

of the forfeiture shall be calculated based upon a comparison of

the number of hours and days of pupil instruction actually provided

to the minimum number of hours and days of pupil instruction

required under subsection (3). Pupils enrolled in a department-

approved alternative education program under this subsection shall

be reported to the center in a form and manner determined by the

center. All of the following apply to a waiver granted under this

subsection:

(a) If the waiver is for a blended model of delivery, a waiver

that is granted for the 2011-2012 fiscal year or a subsequent

fiscal year remains in effect unless it is revoked by the

superintendent.

(b) If the waiver is for a 100% online model of delivery and

the educational program for which the waiver is granted makes

educational services available to pupils for a minimum of at least

1,098 hours during a school year and ensures that each pupil

~~participates in the educational program for at least 1,098 hours~~

~~during a school year,~~ is on track for course completion at

proficiency level, a waiver that is granted for the 2011-2012

fiscal year or a subsequent fiscal year remains in effect unless it

is revoked by the superintendent.

or (b) is valid for 1 fiscal year and must be renewed annually to

remain in effect.

(10) Until 2014-2015, a district may count up to 38 hours of

qualifying professional development for teachers as hours of pupil

instruction. However, if a collective bargaining agreement that

provides for the counting of up to 38 hours of qualifying

professional development for teachers as pupil instruction is in

effect for employees of a district as of July 1, 2013, then until

the school year that begins after the expiration of that collective

bargaining agreement a district may count up to the contractually

specified number of hours of qualifying professional development

for teachers as hours of pupil instruction. Professional

development provided online is allowable and encouraged, as long as

the instruction has been approved by the district. The department

shall issue a list of approved online professional development

providers, which shall include the Michigan ~~virtual school.~~ Virtual

School. As used in this subsection, "qualifying professional

development" means professional development that is focused on 1 or

more of the following:

(a) Achieving or improving adequate yearly progress as defined

under the no child left behind act of 2001, Public Law 107-110.

(b) Achieving accreditation or improving a school's

accreditation status under section 1280 of the revised school code,

MCL 380.1280.

the no child left behind act of 2001, Public Law 107-110.

(d) Integrating technology into classroom instruction.

(e) Maintaining teacher certification.

(11) Subsections (3) and (8) do not apply to a school of

excellence that is a cyber school, as defined in section 551 of the

revised school code, MCL 380.551, and is in compliance with section

553a of the revised school code, MCL 380.553a.

(12) Subsections (3) and (8) do not apply to eligible pupils

enrolled in a dropout recovery program that meets the requirements

of section 23a. As used in this subsection, "eligible pupil" means

that term as defined in section 23a.

(13) Beginning in 2013, at least every 2 years the

superintendent shall review the waiver standards set forth in the

pupil accounting and auditing manuals to ensure that the waiver

standards and waiver process continue to be appropriate and

responsive to changing trends in online learning. The

superintendent shall solicit and consider input from stakeholders

as part of this review.

Sec. 104. (1) In order to receive state aid under this

article, a district shall comply with sections 1249, 1278a, 1278b,

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

the state school aid fund money appropriated in section 11, there

is allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

$41,394,400.00 for payments on behalf of districts for costs

associated with complying with those provisions of law. In

addition, from the federal funds appropriated in section 11, there

is allocated for ~~2014-2015~~ 2015-2016 an amount estimated at

$6,250,000.00, funded from DED-OESE, title VI, state assessment

funds, and from DED-OSERS, section 504 of part B of the individuals

with disabilities education act, Public Law 94-142, plus any

carryover federal funds from previous year appropriations, for the

purposes of complying with the federal no child left behind act of

2001, Public Law 107-110.

(2) The results of each test administered as part of the

Michigan ~~educational assessment program,~~ student test of

educational progress (M-STEP), including tests administered to high

school students, shall include an item analysis that lists all

items that are counted for individual pupil scores and the

percentage of pupils choosing each possible response.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

(4) Notwithstanding section 17b, payments on behalf of

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(5) From the allocation in subsection (1), there is allocated

an amount not to exceed $8,500,000.00 for the following purposes:

(a) Converting existing student assessments to online

assessments.

(b) Providing paper and pencil test versions to districts not

prepared to implement online assessments.

(d) Providing an increased number of constructed response test

questions so that pupils can demonstrate higher-order skills such

as problem solving and communicating reasoning.

(6) From the allocation in subsection (1), there is allocated

an amount not to exceed $3,200,000.00 for the development or

selection of an online reporting tool to provide student-level

assessment data in a secure environment to educators, parents, and

pupils immediately after assessments are scored. The department and

the center shall ensure that any data collected by the online

reporting tool do not provide individually identifiable student

data to the federal government.

(7) From the allocation in subsection (1), there is allocated

an amount not to exceed $3,000,000.00 for the purpose of

implementing a summative assessment system pursuant to section

104c.

(8) As used in this section:

(a) "DED" means the United States ~~department of~~

~~education.~~Department of Education.

(b) "DED-OESE" means the DED ~~office of elementary and~~

~~secondary education.~~Office of Elementary and Secondary Education.

~~rehabilitative services.~~Office of Special Education and

Rehabilitative Services.

Sec. 104b. (1) In order to receive state aid under this

article, a district shall comply with this section and shall

administer the Michigan merit examination to pupils in grade 11,

and to pupils in grade 12 who did not take the complete Michigan

merit examination in grade 11, as provided in this section. The

Michigan merit examination consists of a college entrance test,

work skills test, and the summative assessment known as the

Michigan student test of educational progress (M-STEP).

(2) For the purposes of this section, the department of

technology, management, and budget shall contract with 1 or more

providers to develop, supply, and score the Michigan merit

examination. The Michigan merit examination shall consist of all of

the following:

(a) Assessment instruments that are aligned to this state's

content standards, that measure English language arts, mathematics,

reading, and science, and that are used by colleges and

universities in this state for entrance or placement purposes. This

~~shall~~ may include 1 or more writing components.

(b) One or more tests from 1 or more test developers that

assess a pupil's ability to apply at least reading and mathematics

skills in a manner that is intended to allow employers to use the

results in making employment decisions. The department of

technology, management, and budget and the superintendent shall

ensure that any test or tests selected under this subdivision have

all the components necessary to allow a pupil to be eligible to

receive the results of a nationally recognized evaluation of

workforce readiness if the pupil's test performance is adequate.

(d) Any other component that is necessary to obtain the

approval of the United States ~~department of education~~ Department of

Education to use the Michigan merit examination for the purposes of

the no child left behind act of 2001, Public Law 107-110.

(3) In addition to all other requirements of this section, all

of the following apply to the Michigan merit examination:

(a) The department of technology, management, and budget and

the superintendent shall ensure that any contractor used for

scoring the Michigan merit examination supplies an individual

report for each pupil that will identify for the pupil's parents

and teachers whether the pupil met expectations or failed to meet

expectations for each standard, to allow the pupil's parents and

teachers to assess and remedy problems before the pupil moves to

the next grade.

(b) The department of technology, management, and budget and

the superintendent shall ensure that any contractor used for

scoring, developing, or processing the Michigan merit examination

meets quality management standards commonly used in the assessment

industry, including at least meeting level 2 of the capability

maturity model developed by the software engineering institute of

Carnegie Mellon university for the first year the Michigan merit

examination is offered to all grade 11 pupils and at least meeting

level 3 of the capability maturity model for subsequent years.

the superintendent shall ensure that any contract for scoring,

administering, or developing the Michigan merit examination

includes specific deadlines for all steps of the assessment

process, including, but not limited to, deadlines for the correct

testing materials to be supplied to schools and for the correct

results to be returned to schools, and includes penalties for

noncompliance with these deadlines.

(d) The superintendent shall ensure that the Michigan merit

examination meets all of the following:

(i) Is designed to test pupils on ~~grade level content~~

~~expectations or course content expectations, as appropriate,~~ this

state's content standards in all subjects tested.

(ii) Complies with requirements of the no child left behind

act of 2001, Public Law 107-110.

(iii) Is consistent with the code of fair testing practices in

education prepared by the ~~joint committee on testing practices of~~

~~the American psychological association.~~Joint Committee on Testing

Practices of the American Psychological Association.

(iv) Is factually accurate. If the superintendent determines

that a question is not factually accurate and should be excluded

from scoring, the state board and the superintendent shall ensure

that the question is excluded from scoring.

(4) A district shall include on each pupil's high school

transcript all of the following:

(a) For each high school graduate who has completed the

Michigan merit examination under this section, the pupil's scaled

score on each subject area component of the Michigan merit

examination.

(b) The number of school days the pupil was in attendance at

school each school year during high school and the total number of

school days in session for each of those school years.

(5) The superintendent shall work with the provider or

providers of the Michigan merit examination to produce Michigan

merit examination subject area scores for each pupil participating

in the Michigan merit examination ~~, including scaling and merging~~

~~of test items~~ for the different subject area components. The

superintendent shall design and distribute to districts,

intermediate districts, and nonpublic schools a simple and concise

document that describes the scoring for each subject area and

indicates the scaled score ranges for each subject area.

(6) The Michigan merit examination shall be administered in

each district during the last 12 weeks of the district's school

year. The superintendent shall ensure that the Michigan merit

examination is scored and the scores are returned to pupils, their

parents or legal guardians, and districts not later than the

beginning of the pupil's first semester of grade 12. The returned

scores shall indicate at least the pupil's scaled score for each

subject area component and the range of scaled scores for each

subject area. In reporting the scores to pupils, parents, and

schools, the superintendent shall provide standards-specific,

meaningful, and timely feedback on the pupil's performance on the

Michigan merit examination.

(7) A district shall administer the complete Michigan merit

examination to a pupil only once and shall not administer the

complete Michigan merit examination to the same pupil more than

once. If a pupil does not take the complete Michigan merit

examination in grade 11, the district shall administer the complete

Michigan merit examination to the pupil in grade 12. If a pupil

chooses to retake the college entrance examination component of the

Michigan merit examination, as described in subsection (2)(a), the

pupil may do so through the provider of the college entrance

examination component and the cost of the retake is the

responsibility of the pupil unless all of the following are met:

(a) The pupil has taken the complete Michigan merit

examination.

(b) The pupil did not qualify for a Michigan promise grant

under section 6 of the Michigan promise grant act, 2006 PA 479, MCL

390.1626, based on the pupil's performance on the complete Michigan

merit examination.

breakfast, lunch, or milk, as determined under the Richard B.

Russell national school lunch act, 42 USC 1751 to 1769i.

(d) The pupil has applied to the provider of the college

entrance examination component for a scholarship or fee waiver to

cover the cost of the retake and that application has been denied.

(e) After taking the complete Michigan merit examination, the

pupil has not already received a free retake of the college

entrance examination component paid for either by this state or

through a scholarship or fee waiver by the provider.

(8) The superintendent shall ensure that the length of the

Michigan merit examination and the combined total time necessary to

administer all of the components of the Michigan merit examination

are the shortest possible that will still maintain the degree of

reliability and validity of the Michigan merit examination results

determined necessary by the superintendent. The superintendent

shall ensure that the maximum total combined length of time that

schools are required to set aside for pupils to answer all test

questions on the Michigan merit examination does not exceed 8

hours. ~~if the superintendent determines that sufficient alignment~~

~~to applicable Michigan merit curriculum content standards can be~~

~~achieved within that time limit.~~

(9) A district shall provide accommodations to a pupil with

disabilities for the Michigan merit examination, as provided under

section 504 of title V of the rehabilitation act of 1973, 29 USC

794; subtitle A of title II of the Americans with disabilities act

of 1990, 42 USC 12131 to 12134; the individuals with disabilities

education act amendments of 1997, Public Law 105-17; and the

implementing regulations for those statutes. The provider or

providers of the Michigan merit examination and the superintendent

shall mutually agree upon the accommodations to be provided under

this subsection.

(10) To the greatest extent possible, the Michigan merit

examination shall be based on ~~grade level content expectations or~~

~~course content expectations, as appropriate. Not later than July 1,~~

~~2008, the department shall identify specific grade level content~~

~~expectations to be taught before and after the middle of grade 11,~~

~~so that teachers will know what content will be covered within the~~

~~Michigan merit examination.~~this state's content standards. The

department may augment the college entrance and work skills

components of the Michigan merit exam to develop the assessment,

depending on the alignment of those components to this state's

content standards. If these components do not align to these

standards, the department shall produce additional components as

required by law, while minimizing the amount of time needed for

assessments.

(11) A child who is a student in a nonpublic school or home

school may take the Michigan merit examination under this section.

To take the Michigan merit examination, a child who is a student in

a home school shall contact the district in which the child

resides, and that district shall administer the Michigan merit

examination, or the child may take the Michigan merit examination

at a nonpublic school if allowed by the nonpublic school. Upon

request from a nonpublic school, the superintendent shall direct

the provider or providers to supply the Michigan merit examination

to the nonpublic school and the nonpublic school may administer the

Michigan merit examination. If a district administers the Michigan

merit examination under this subsection to a child who is not

enrolled in the district, the scores for that child are not

considered for any purpose to be scores of a pupil of the district.

(12) In contracting under subsection (2), the department of

technology, management, and budget shall consider a contractor that

provides electronically-scored essays with the ability to score

constructed response feedback in multiple languages and provide

ongoing instruction and feedback.

(13) The purpose of the Michigan merit examination is to

assess pupil performance in mathematics, science, social studies,

and English language arts for the purpose of improving academic

achievement and establishing a statewide standard of competency.

The assessment under this section provides a common measure of data

that will contribute to the improvement of Michigan schools'

curriculum and instruction by encouraging alignment with Michigan's

curriculum framework standards and promotes pupil participation in

higher level mathematics, science, social studies, and English

language arts courses. These standards are based upon the

expectations of what pupils should learn through high school and

are aligned with national standards.

(14) For a pupil enrolled in a middle college program, other

than a middle college operated as a shared educational entity or a

specialized shared educational entity, if the pupil receives at

least 50% of his or her instruction at the high school while in

grade 11, the Michigan merit examination shall be administered to

the pupil at the high school at which the pupil receives high

school instruction, and the department shall include the pupil's

scores on the Michigan merit examination in the scores for that

high school for all purposes for which a school's or district's

results are reported. The department shall allow the middle college

program to use a 5-year graduation rate for determining adequate

yearly progress. As used in this subsection, "middle college" means

a program consisting of a series of courses and other requirements

and conditions, including an early college or other program created

under a memorandum of understanding, that allows a pupil to

graduate from high school with both a high school diploma and a

certificate or degree from a community college or state public

university.

(15) As used in this section:

(a) "English language arts" means reading and writing.

(b) "Social studies" means United States history, world

history, world geography, economics, and American government.

Sec. 104c. (1) In order to receive state aid under this

article, a district shall administer the state assessments

described in this section.

(2) For the purposes of this section, the department shall

develop for use in the spring of ~~2014-2015 new Michigan education~~

~~assessment program (MEAP)~~ 2015-2016 the Michigan student test of

educational progress (M-STEP) assessments in English language arts

and mathematics. These assessments shall be aligned to state

standards.

(3) For the purposes of this section, the department shall

implement ~~beginning in the 2015-2016 school year~~ a summative

assessment system that is proven to be valid and reliable for

administration to pupils as provided under this subsection. The

summative assessment system shall meet all of the following

requirements:

(a) The summative assessment system shall measure student

proficiency on the current state standards, shall measure student

growth for consecutive grade levels in which students are assessed

in the same subject area in both grade levels, and shall be capable

of measuring individual student performance.

(b) The summative assessments for English language arts and

mathematics shall be administered to all public school pupils in

grades 3 to ~~10,~~ 11, including those pupils as required by the

federal individuals with disabilities education act, Public Law

108-446, and by title I of the federal elementary and secondary

education act.

administered to all public school pupils in at least grades 4 and

7, including those pupils as required by the federal individuals

with disabilities education act, Public Law 108-446, and by title I

of the federal elementary and secondary education act.

(d) The summative assessments for social studies shall be

administered to all public school pupils in at least grades 5 and

8, including those pupils as required by the federal individuals

with disabilities education act, Public Law 108-446, and by title I

of the federal elementary and secondary education act.

(e) The content of the summative assessments shall be aligned

to state standards.

(f) The pool of questions for the summative assessments shall

be subject to a transparent review process for quality, bias, and

sensitive issues involving educator review and comment. The

department shall post samples from tests or retired tests featuring

questions from this pool for review by the public.

(g) The summative assessment system shall ensure that

students, parents, and teachers are provided with reports that

convey individual student proficiency and growth on the assessment

and that convey individual student domain-level performance in each

subject area, including representative questions, and individual

student performance in meeting state standards.

(h) The summative assessment system shall be capable of

providing, and the department shall ensure that students, parents,

teachers, administrators, and community members are provided with,

reports that convey aggregate student proficiency and growth data

by teacher, grade, school, and district.

(i) The summative assessment system shall ensure the

capability of reporting the available data to support educator

evaluations.

(j) The summative assessment system shall ensure that the

reports provided to districts containing individual student data

are available within 60 days after completion of the assessments.

~~(k) The assessments shall be capable of being implemented~~

~~statewide in a fully operational manner no later than the 2015-2016~~

~~school year.~~

(k) (l) The summative assessment system shall ensure that

access to individually identifiable student data meets all of the

following:

(i) Is in compliance with 20 USC 1232g, commonly referred to

as the family educational rights and privacy act of 1974.

(ii) Except as may be provided for in an agreement with a

vendor to provide assessment services, as necessary to support

educator evaluations pursuant to subdivision (i), or for research

or program evaluation purposes, is available only to the student;

to the student's parent or legal guardian; and to a school

administrator or teacher, to the extent that he or she has a

legitimate educational interest.

(l) ~~(m)~~ The summative assessment system shall ensure that the

assessments are pilot tested before statewide implementation.

(m) ~~(n)~~ The summative assessment system shall ensure that

assessments are designed so that the maximum total combined length

of time that schools are required to set aside for a pupil to

answer all test questions on all assessments that are part of the

system for the pupil's grade level does not exceed that maximum

total combined length of time for the previous statewide assessment

House Bill No. 4115 as amended April 29, 2015 (1 of 6)

system or 9 hours, whichever is less. This subdivision does not

limit the amount of time a district may allow a pupil to complete a

test.

(n) ~~(o)~~ The total cost of executing the summative assessment

system statewide each year, including, but not limited to, the cost

of contracts for administration, scoring, and reporting, shall not

exceed an amount equal to 2 times the cost of executing the

previous statewide assessment after adjustment for inflation.

~~(4) To begin the process required under subsection (3), not~~

~~later than September 1, 2014, the department shall issue a request~~

~~for proposals for the summative assessment system described in that~~

~~subsection.~~

(4) ~~(5)~~ This section does not prohibit districts from adopting

interim assessments.

~~(6) The department shall seek a waiver or amendment to an~~

~~existing waiver for federal approval of the assessment framework~~

~~under this section and shall notify the United States department of~~

~~education about the provisions of this section and take necessary~~

~~steps to assure the United States department of education that this~~

~~state is on track to develop and implement a summative assessment~~

~~system as required by federal law.~~

(5) ~~(7)~~ As used in this section, "English language arts" means

that term as defined in section 104b.

[Sec. 107. (1) From the appropriation in section 11, there is allocated an amount not to exceed ~~$22,000,000.00 for 2014-2015~~ $100.00 for 2015-2016 for adult education programs authorized under this section. Funds allocated under this section are restricted for adult education programs as authorized under this section only. A recipient of funds under this section shall not use those funds for any other purpose.

(2) To be eligible for funding under this section, a program shall employ certificated teachers and qualified administrative staff and shall offer continuing education opportunities for teachers to allow them to maintain certification.

(3) To be eligible to be a participant funded under this section, a person shall be enrolled in an adult basic education program, an adult House Bill No. 4115 as amended April 29, 2015 (2 of 6)

English as a second language program, a general educational development (G.E.D.) test preparation program, a job- or employment-related program, or a high school completion program, that meets the requirements of this section, and for which instruction is provided, and shall meet either of the following, as applicable:

(a) If the individual has obtained a high school diploma or a general educational development (G.E.D.) certificate, the individual meets 1 of the following:

(i) Is less than 20 years of age on September 1 of the school year and is enrolled in the Michigan career and technical institute.

(ii) Is less than 20 years of age on September 1 of the school year, is not attending an institution of higher education, and is enrolled in a job- or employment-related program through a referral by an employer or by a Michigan workforce agency.

(iii) Is enrolled in an English as a second language program.

(iv) Is enrolled in a high school completion program.

(b) If the individual has not obtained a high school diploma or G.E.D. certificate, the individual meets 1 of the following:

(i) Is at least 20 years of age on September 1 of the school year.

(ii) Is at least 16 years of age on September 1 of the school year, has been permanently expelled from school under section 1311(2) or 1311a of the revised school code, MCL 380.1311 and 380.1311a, and has no appropriate alternative education program available through his or her district of residence.

(4) From the funds allocated under subsection (1), an amount as determined under this subsection shall be allocated to each intermediate district serving as a fiscal agent for adult education programs in each of the 10 prosperity regions identified by the department. An intermediate district shall not use more than 5% of the funds allocated under this subsection for administration costs for serving as the fiscal agent. The department shall ensure that the funds allocated under this subsection for ~~2014-2015~~ 2015-2016 will provide services in ~~2014-2015~~ 2015-2016 to at least the same number of individuals as the number of individuals who were enrolled in programs funded under this section in ~~2013-2014.~~ 2015-2016. For 2014-2015, 67% of the allocation provided to each intermediate district serving as a fiscal agent shall be based on the proportion of total funding formerly received by the adult education providers in that prosperity region in 2013-2014, and 33% shall be allocated based on the factors in subdivisions (a), (b), and (c). For 2015-2016, 33% of the allocation provided to each intermediate district serving as a fiscal agent shall be based upon the proportion of total funding formerly received by the adult education providers in that prosperity region in 2013-2014 and 67% of the allocation shall be based upon the factors in subdivisions (a), (b), and (c). For 2016-2017, 100% of the allocation provided to each intermediate district serving as a fiscal agent shall be based on the factors in subdivisions (a), (b), and (c). The funding factors for this section are as follows:

(a) Sixty percent of this portion of the funding shall be distributed based upon the proportion of the state population of individuals between the ages of 18 and 24 that are not high school graduates that resides in each of the prosperity regions, as reported by the most recent 5-year estimates from the American community survey (ACS) House Bill No. 4115 as amended April 29, 2015 (3 of 6)

from the United States census bureau.

(b) Thirty-five percent of this portion of the funding shall be distributed based upon the proportion of the state population of individuals age 25 or older who are not high school graduates that resides in each of the prosperity regions, as reported by the most recent 5-year estimates from the American community survey (ACS) from the United States census bureau.

(c) Five percent of this portion of the funding shall be distributed based upon the proportion of the state population of individuals age 18 or older who lack basic English language proficiency that resides in each of the prosperity regions, as reported by the most recent 5-year estimates from the American community survey (ACS) from the United States census bureau.

(5) To be an eligible fiscal agent, an intermediate district must agree to do the following in a form and manner determined by the department:

(a) Distribute funds to adult education programs in a prosperity region as described in this section.

(b) Collaborate with education advisory groups of the workforce development boards located in the prosperity region to develop a regional strategy that aligns adult education programs and services into an efficient and effective delivery system for adult education learners.

(c) Collaborate with education advisory groups of the workforce development boards located in the prosperity region to create a local process and criteria that will identify eligible adult education providers to receive funds allocated under this section based on location, demand for services, and cost to provide instructional services. All local processes, criteria, and provider determinations must be approved by the department before funds may be distributed to the fiscal agent.

(d) Report adult education program and participant data and information as prescribed by the department.

(6) The amount allocated under this section per full-time equated participant shall not exceed $2,850.00 for a 450-hour program. The amount shall be proportionately reduced for a program offering less than 450 hours of instruction.

(7) An adult basic education program or an adult English as a second language program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who are determined by a department-approved assessment, in a form and manner prescribed by the department, to be below ninth grade level in reading or mathematics, or both, or to lack basic English proficiency.

(b) The program tests individuals for eligibility under subdivision (a) before enrollment and upon completion of the program in compliance with the state-approved assessment policy.

(i) The participant's reading and mathematics proficiency are assessed at or above the ninth grade level.

(ii) The participant fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction.

House Bill No. 4115 as amended April 29, 2015 (4 of 6) (d) A funding recipient enrolling a participant in an English as a second language program is eligible for funding according to subsection (11) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic English proficiency as determined by a department-approved assessment.

(ii) The participant fails to show progress on 2 successive department-approved assessments after having completed at least 450 hours of instruction. The department shall provide information to a funding recipient regarding appropriate assessment instruments for this program.

(8) A general educational development (G.E.D.) test preparation program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school diploma.

(b) The program shall administer a pre-test approved by the department before enrolling an individual to determine the individual's literacy levels, shall administer a G.E.D. practice test to determine the individual's potential for success on the G.E.D. test, and shall administer a post-test upon completion of the program in compliance with the state-approved assessment policy.

(c) A funding recipient shall receive funding according to subsection (11) for a participant, and a participant may be enrolled in the program until 1 of the following occurs:

(i) The participant obtains the G.E.D.

(ii) The participant fails to show progress on 2 successive department-approved assessments used to determine readiness to take the G.E.D. test after having completed at least 450 hours of instruction.

(9) A high school completion program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school diploma.

(b) The program tests participants described in subdivision (a) before enrollment and upon completion of the program in compliance with the state-approved assessment policy.

(c) A funding recipient shall receive funding according to subsection (11) for a participant in a course offered under this subsection until 1 of the following occurs:

(i) The participant passes the course and earns a high school diploma.

(ii) The participant fails to earn credit in 2 successive semesters or terms in which the participant is enrolled after having completed at least 900 hours of instruction.

(10) A job- or employment-related adult education program operated on a year-round or school year basis may be funded under this section, subject to all of the following:

(a) The program enrolls adults referred by their employer who are less than 20 years of age, have a high school diploma, are determined to be in need of remedial mathematics or communication arts skills and are not attending an institution of higher education.

(b) The program tests participants described in subdivision (a) before enrollment and upon completion of the program in compliance with House Bill No. 4115 as amended April 29, 2015 (5 of 6)

the department-approved assessment policy.

(c) An individual may be enrolled in this program and the grant recipient shall receive funding according to subsection (11) until 1 of the following occurs:

(i) The individual achieves the requisite skills as determined by department-approved assessment instruments.

(ii) The individual fails to show progress on 2 successive assessments after having completed at least 450 hours of instruction.

(11) A funding recipient shall receive payments under this section in accordance with the following:

(a) Seventy-five percent for enrollment of eligible participants.

(b) Twenty-five percent for participant completion of the adult basic education objectives by achieving an educational gain as determined by the national reporting system levels; for achieving basic English proficiency; for obtaining a G.E.D. or passage of 1 or more individual G.E.D. tests; for attainment of a high school diploma or passage of a course required for a participant to attain a high school diploma; for enrollment in a postsecondary institution, or for entry into or retention of employment, as applicable.

(12) A person who is not eligible to be a participant funded under this section may receive adult education services upon the payment of tuition. In addition, a person who is not eligible to be served in a program under this section due to the program limitations specified in subsection (7), (8), (9), or (10) may continue to receive adult education services in that program upon the payment of tuition. The tuition level shall be determined by the local or intermediate district conducting the program.

(13) An individual who is an inmate in a state correctional facility shall not be counted as a participant under this section.

(14) A funding recipient shall not commingle money received under this section or from another source for adult education purposes with any other funds and shall establish a separate ledger account for funds received under this section. This subsection does not prohibit a district from using general funds of the district to support an adult education or community education program.

(15) A funding recipient receiving funds under this section may establish a sliding scale of tuition rates based upon a participant's family income. A funding recipient may charge a participant tuition to receive adult education services under this section from that sliding scale of tuition rates on a uniform basis. The amount of tuition charged per participant shall not exceed the actual operating cost per participant minus any funds received under this section per participant. A funding recipient may not charge a participant tuition under this section if the participant's income is at or below 200% of the federal poverty guidelines published by the United States department of health and human services.

(16) In order to receive funds under this section, a funding recipient shall furnish to the department, in a form and manner determined by the department, all information needed to administer this program and meet federal reporting requirements; shall allow the department or the department's designee to review all records related to the program for which it receives funds; and shall reimburse the state House Bill No. 4115 as amended April 29, 2015 (6 of 6)

for all disallowances found in the review, as determined by the department.

(17) All intermediate district participant audits of adult education programs shall be performed pursuant to the adult education participant auditing and accounting manuals published by the department.

(18) As used in this section:

(a) "Department" means the Michigan strategic fund.

(b) "Eligible adult education provider" means a district, intermediate district, a consortium of districts, a consortium of intermediate districts, or a consortium of districts and intermediate districts that is identified as part of the local process described in subsection (5)(c) and approved by the department.

(c) "Participant" means the sum of the number of full-time equated individuals enrolled in and attending a department-approved adult education program under this section, using quarterly participant count days on the schedule described in section 6(7)(b).]

Sec. 147. (1) The allocation for ~~2014-2015~~ 2015-2016 for the

public school employees' retirement system pursuant to the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

to 38.1408, shall be made using the individual projected benefit

entry age normal cost method of valuation and risk assumptions

adopted by the public school employees retirement board and the

department of technology, management, and budget.

(2) The annual level percentage of payroll contribution rates

for the ~~2014-2015~~ 2015-2016 fiscal year, as determined by the

retirement system, are estimated as follows:

(a) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who are enrolled in

the health premium subsidy, the annual level percentage of payroll

contribution rate is estimated at ~~33.41%,~~ 36.31%, with 25.78% paid

directly by the employer.

(b) For public school employees who first worked for a public

school reporting unit on or after July 1, 2010 and who are enrolled

in the health premium subsidy, the annual level percentage of

payroll contribution rate is estimated at ~~32.33%,~~ 35.09%, with

~~24.70%~~ 24.56% paid directly by the employer.

school reporting unit on or after July 1, 2010 and who participate

in the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~31.82%,~~ 34.66%, with

~~24.19%~~ 24.13% paid directly by the employer.

(d) For public school employees who first worked for a public

school reporting unit on or after September 4, 2012, who elect

defined contribution, and who participate in the personal

healthcare fund, the annual level percentage of payroll

contribution rate is estimated at ~~28.59%,~~ 31.49%, with 20.96% paid

directly by the employer.

(e) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who are enrolled in the health premium subsidy,

the annual level percentage of payroll contribution rate is

estimated at ~~29.10%,~~ 31.92%, with ~~21.47%~~ 21.39% paid directly by

the employer.

(f) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who participate in the personal healthcare fund,

the annual level percentage of payroll contribution rate is

estimated at ~~28.59%,~~ 31.49%, with 20.96% paid directly by the

employer.

(g) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who participate in

the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~32.90%,~~ 35.88%, with

~~25.27%~~ 25.35% paid directly by the employer.

(3) In addition to the employer payments described in

subsection (2), the employer shall pay the applicable contributions

to the Tier 2 plan, as determined by the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408.

(4) The contribution rates in subsection (2) reflect an

amortization period of 24 23 years for ~~2014-2015.~~ 2015-2016. The

public school employees' retirement system board shall notify each

district and intermediate district by February 28 of each fiscal

year of the estimated contribution rate for the next fiscal year.

Sec. 147a. From the appropriation in section 11, there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

~~$100,000,000.00~~ $50,000,000.00 for payments to participating

districts. A district that receives money under this section shall

use that money solely for the purpose of offsetting a portion of

the retirement contributions owed by the district for the fiscal

year in which it is received. The amount allocated to each

participating district under this section shall be based on each

participating district's percentage of the total statewide payroll

for all participating districts for the immediately preceding

fiscal year. As used in this section, "participating district"

means a district that is a reporting unit of the Michigan public

school employees' retirement system under the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

38.1408, and that reports employees to the Michigan public school

employees' retirement system for the applicable fiscal year.

Sec. 147c. (1) From the appropriation in section 11, there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

~~$658,400,000.00~~ $892,900,000.00 from the state school aid fund ,

~~and there is appropriated for 2014-2015 an amount not to exceed~~

~~$18,000,000.00 from the MPSERS retirement obligation reform reserve~~

~~fund,~~ for payments to districts and intermediate districts that are

participating entities of the Michigan public school employees'

retirement system. In addition, from the general fund money

appropriated in section 11, there is allocated for ~~2014-2015~~ 2015-

2016 an amount not to exceed ~~$500,000.00~~ $600,000.00 for payments

to district libraries that are participating entities of the

Michigan public school employees' retirement system.

(2) For ~~2014-2015,~~ 2015-2016, the amounts allocated under

subsection (1) are estimated to provide an average MPSERS rate cap

per-pupil amount of $449.00 and are estimated to provide a rate cap

per pupil for districts ranging between $4.00 and $2,056.00.

(3) Payments made under this section for ~~2014-2015~~ 2015-2016

shall be equal to the difference between the unfunded actuarial

accrued liability contribution rate as calculated pursuant to

section 41 of the public school employees retirement act of 1979,

1980 PA 300, MCL 38.1341, as calculated without taking into account

the maximum employer rate of 20.96% included in section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341, and the maximum employer rate of 20.96% included in

section 41 of the public school employees retirement act of 1979,

1980 PA 300, MCL 38.1341.

(4) The amount allocated to each participating entity under

this section shall be based on each participating entity's

proportion of the total covered payroll for the immediately

preceding fiscal year for the same type of participating entities.

A participating entity that receives funds under this section shall

use the funds solely for the purpose of retirement contributions as

specified in subsection (5).

(5) Each participating entity receiving funds under this

section shall forward an amount equal to the amount allocated under

subsection (4) to the retirement system in a form, manner, and time

frame determined by the retirement system.

(6) Funds allocated under this section should be considered

when comparing a district's growth in total state aid funding from

1 fiscal year to the next.

(7) Not later than ~~October 20, 2014,~~ December 20, 2015, the

department shall publish and post on its website an estimated

MPSERS rate cap per pupil for each district.

(8) As used in this section:

(a) "MPSERS rate cap per pupil" means an amount equal to the

quotient of the district's payment under this section divided by

the district's pupils in membership.

(b) "Participating entity" means a district, intermediate

district, or district library that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1437, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

retirement system under the public school employees retirement act

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

(d) "Retirement system" means the Michigan public school

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

Sec. 152a. (1) As required by the court in the consolidated

cases known as Adair v State of Michigan, Michigan supreme court

docket nos. 137424 and 137453, from the state school aid fund money

appropriated in section 11 there is allocated for ~~2014-2015~~ 2015-

2016 an amount not to exceed $38,000,500.00 to be used solely for

the purpose of paying necessary costs related to the state-mandated

collection, maintenance, and reporting of data to this state.

(2) From the allocation in subsection (1), the department

shall make payments to districts and intermediate districts in an

equal amount per-pupil based on the total number of pupils in

membership in each district and intermediate district. The

department shall not make any adjustment to these payments after

the final installment payment under section 17b is made.

Sec. 163. (1) Except as provided in the revised school code,

the board of a district or intermediate district shall not permit

any of the following:

(a) A noncertificated ~~teacher~~ educator to teach in an

elementary or secondary school or in an adult basic education or

high school completion program.

(b) A noncertificated ~~counselor~~ educator to provide counseling

services to pupils in an elementary or secondary school or in an

adult basic education or high school completion program.

programs in an elementary or secondary school, or in an adult basic

education or high school completion program, unless that educator

is fulfilling applicable continuing education requirements.

(2) Except as provided in the revised school code, a district

or intermediate district employing ~~teachers or counselors~~ educators

not legally certificated or licensed shall have deducted the sum

equal to the amount paid the ~~teachers or counselors~~ educators for

the period of noncertificated, unlicensed, or illegal employment.

Each intermediate superintendent shall notify the department of the

name of the noncertificated ~~teacher or counselor,~~ or unlicensed

educator, and the district employing that individual and the amount

of salary the noncertificated ~~teacher or counselor~~ or unlicensed

educator was paid within a constituent district.

(3) If a school official is notified by the department that he

or she is employing a nonapproved, noncertificated, ~~teacher or~~

~~counselor~~ or unlicensed educator in violation of this section and

knowingly continues to employ that ~~teacher or counselor,~~ educator,

the school official is guilty of a misdemeanor, punishable by a

fine of $1,500.00 for each incidence. This penalty is in addition

to all other financial penalties otherwise specified in this

article.

Sec. 201. (1) Subject to the conditions set forth in this

article, the amounts listed in this section are appropriated for

community colleges for the fiscal year ending September 30, ~~2015,~~

2016, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

(a) The gross appropriation is ~~$364,724,900.00.~~

$392,596,800.00. After deducting total interdepartmental grants and

intradepartmental transfers in the amount of $0.00, the adjusted

gross appropriation is ~~$364,724,900.00.~~$392,596,800.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$364,724,900.00.~~$256,714,800.00.

(v) State general fund/general purpose money,

~~$0.00.~~$135,882,000.00.

(2) Subject to subsection (3), the amount appropriated for

community college operations is ~~$307,191,300.00,~~ $313,335,100.00,

allocated as follows:

(a) The appropriation for Alpena Community College is

~~$5,390,700.00, $5,236,500.00 for operations and $154,200.00 for~~

~~performance funding.~~$5,496,100.00, $5,390,700.00 for operations and

$105,400.00 for performance funding.

(b) The appropriation for Bay de Noc Community College is

~~$5,419,500.00, $5,279,300.00 for operations and $140,200.00 for~~

~~performance funding.~~$5,520,500.00, $5,419,500.00 for operations and

$101,000.00 for performance funding.

~~$14,063,500.00 for operations and $435,400.00 for performance~~

~~funding.~~$14,791,800.00, $14,498,900.00 for operations and

$292,900.00 for performance funding.

(d) The appropriation for Glen Oaks Community College is

~~$2,516,100.00, $2,441,500.00 for operations and $74,600.00 for~~

~~performance funding.~~$2,566,100.00, $2,516,100.00 for operations and

$50,000.00 for performance funding.

(e) The appropriation for Gogebic Community College is

~~$4,451,400.00, $4,330,300.00 for operations and $121,100.00 for~~

~~performance funding.~~$4,535,000.00, $4,451,400.00 for operations and

$83,600.00 for performance funding.

(f) The appropriation for Grand Rapids Community College is

~~$17,947,500.00, $17,454,900.00 for operations and $492,600.00 for~~

~~performance funding.~~$18,290,000.00, $17,947,500.00 for operations

and $342,500.00 for performance funding.

(g) The appropriation for Henry Ford Community College is

~~$21,623,800.00, $21,060,000.00 for operations and $563,800.00 for~~

~~performance funding.~~$22,008,800.00, $21,623,800.00 for operations

and $385,000.00 for performance funding.

(h) The appropriation for Jackson College is ~~$12,087,300.00,~~

~~$11,758,200.00 for operations and $329,100.00 for performance~~

~~funding.~~$12,313,100.00, $12,087,300.00 for operations and

$225,800.00 for performance funding.

(i) The appropriation for Kalamazoo Valley Community College

is ~~$12,503,100.00, $12,122,500.00 for operations and $380,600.00~~

~~for performance funding.~~$12,769,200.00, $12,503,100.00 for

operations and $266,100.00 for performance funding.

(j) The appropriation for Kellogg Community College is

~~$9,813,500.00, $9,522,000.00 for operations and $291,500.00 for~~

~~performance funding.~~$10,008,700.00, $9,813,500.00 for operations

and $195,200.00 for performance funding.

(k) The appropriation for Kirtland Community College is

~~$3,167,700.00, $3,055,700.00 for operations and $112,000.00 for~~

~~performance funding.~~$3,244,600.00, $3,167,700.00 for operations and

$76,900.00 for performance funding.

(l) The appropriation for Lake Michigan College is

~~$5,342,900.00, $5,178,100.00 for operations and $164,800.00 for~~

~~performance funding.~~$5,449,800.00, $5,342,900.00 for operations and

$106,900.00 for performance funding.

(m) The appropriation for Lansing Community College is

~~$30,877,600.00, $30,023,700.00 for operations and $853,900.00 for~~

~~performance funding.~~$31,464,100.00, $30,877,600.00 for operations

and $586,500.00 for performance funding.

(n) The appropriation for Macomb Community College is

~~$32,816,600.00, $31,931,200.00 for operations and $885,400.00 for~~

~~performance funding.~~$33,420,600.00, $32,816,600.00 for operations

and $604,000.00 for performance funding.

(o) The appropriation for Mid Michigan Community College is

~~$4,682,000.00, $4,517,900.00 for operations and $164,100.00 for~~

~~performance funding.~~$4,790,100.00, $4,682,000.00 for operations and

$108,100.00 for performance funding.

(p) The appropriation for Monroe County Community College is

~~$4,492,900.00, $4,342,600.00 for operations and $150,300.00 for~~

~~performance funding.~~$4,596,800.00, $4,492,900.00 for operations and

$103,900.00 for performance funding.

(q) The appropriation for Montcalm Community College is

~~$3,226,700.00, $3,121,200.00 for operations and $105,500.00 for~~

~~performance funding.~~$3,303,700.00, $3,226,700.00 for operations and

$77,000.00 for performance funding.

(r) The appropriation for C.S. Mott Community College is

~~$15,686,100.00, $15,247,100.00 for operations and $439,000.00 for~~

~~performance funding.~~$15,994,200.00, $15,686,100.00 for operations

and $308,100.00 for performance funding.

(s) The appropriation for Muskegon Community College is

~~$8,901,000.00, $8,653,500.00 for operations and $247,500.00 for~~

~~performance funding.~~$9,072,000.00, $8,901,000.00 for operations and

$171,000.00 for performance funding.

(t) The appropriation for North Central Michigan College is

~~$3,172,400.00, $3,064,400.00 for operations and $108,000.00 for~~

~~performance funding.~~$3,247,300.00, $3,172,400.00 for operations and

$74,900.00 for performance funding.

(u) The appropriation for Northwestern Michigan College is

~~$9,078,800.00, $8,825,300.00 for operations and $253,500.00 for~~

~~performance funding.~~$9,252,600.00, $9,078,800.00 for operations and

$173,800.00 for performance funding.

(v) The appropriation for Oakland Community College is

~~$21,123,300.00, $20,483,100.00 for operations and $640,200.00 for~~

~~performance funding.~~$21,560,600.00, $21,123,300.00 for operations

and $437,300.00 for performance funding.

(w) The appropriation for St. Clair County Community College

is ~~$7,061,600.00, $6,860,100.00 for operations and $201,500.00 for~~

~~performance funding.~~$7,199,300.00, $7,061,600.00 for operations and

$137,700.00 for performance funding.

(x) The appropriation for Schoolcraft College is

~~$12,513,700.00, $12,112,200.00 for operations and $401,500.00 for~~

~~performance funding.~~$12,788,900.00, $12,513,700.00 for operations

and $275,200.00 for performance funding.

(y) The appropriation for Southwestern Michigan College is

~~$6,576,400.00, $6,404,300.00 for operations and $172,100.00 for~~

~~performance funding.~~$6,692,400.00, $6,576,400.00 for operations and

$116,000.00 for performance funding.

(z) The appropriation for Washtenaw Community College is

~~$13,077,300.00, $12,610,800.00 for operations and $466,500.00 for~~

~~performance funding.~~$13,397,000.00, $13,077,300.00 for operations

and $319,700.00 for performance funding.

(aa) The appropriation for Wayne County Community College is

~~$16,727,600.00, $16,194,300.00 for operations and $533,300.00 for~~

~~performance funding.~~$17,102,200.00, $16,727,600.00 for operations

and $374,600.00 for performance funding.

(bb) The appropriation for West Shore Community College is

~~$2,414,900.00, $2,349,800.00 for operations and $65,100.00 for~~

~~performance funding.~~$2,459,600.00, $2,414,900.00 for operations and

$44,700.00 for performance funding.

(3) The amount appropriated in subsection (2) for community

college operations is ~~$307,191,300.00, appropriated from the state~~

~~school aid fund.~~appropriated from the following:

(a) State school aid fund, $233,253,100.00.

(b) State general fund/general purpose money, $80,082,000.00.

(4) From the appropriations described in subsection (1),

subject to section 207a, the amount appropriated for fiscal year

~~2014-2015~~ 2015-2016 to offset certain fiscal year ~~2014-2015~~ 2015-

2016 retirement contributions is $1,733,600.00, appropriated from

the state school aid fund.

(5) From the appropriations described in subsection (1),

subject to section 207b, the amount appropriated for payments to

community colleges that are participating entities of the

retirement system is ~~$52,300,000.00,~~ $69,500,000.00, $17,200,000.00

appropriated from the state school aid fund, and $52,300,000.00

appropriated from general fund/general purpose money.

(6) From the appropriations described in subsection (1),

subject to section 207c, the amount appropriated for renaissance

zone tax reimbursements is ~~$3,500,000.00,~~ $5,100,000.00,

$1,600,000.00 appropriated from the state school aid fund, and

$3,500,000.00 appropriated from general fund/general purpose money.

(7) From the appropriations described in subsection (1),

subject to 1986 PA 102, MCL 390.1281 to 390.1288, the amount

appropriated for part-time, independent student grants is

$2,928,100.00, appropriated from the state school aid fund.

Sec. 201a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2016~~

2017 for the items listed in section 201. The fiscal year ~~2015-2016~~

2016-2017 appropriations are anticipated to be the same as those

for fiscal year ~~2014-2015,~~ 2015-2016, except that the amounts will

be adjusted for changes in retirement costs, caseload and related

costs, federal fund match rates, economic factors, and available

revenue. These adjustments will be determined after the January

~~2015~~ 2016 consensus revenue estimating conference.

Sec. 206. The funds appropriated in section 201 are

appropriated for community colleges with fiscal years ending June

30, ~~2015~~ 2016 and shall be paid out of the state treasury and

distributed by the state treasurer to the respective community

colleges in 11 monthly installments on the sixteenth of each month,

or the next succeeding business day, beginning with October 16,

~~2014.~~ 2015. Each community college shall accrue its July and August

~~2015~~ 2016 payments to its institutional fiscal year ending June 30,

~~2015.~~ 2016. However, if the state budget director determines that a

community college failed to submit all verified Michigan community

colleges activities classification structure data for school year

~~2013-2014~~ 2014-2015 to the workforce development agency by November

1, ~~2014,~~ 2015, or failed to submit its longitudinal data system

data set for school year ~~2013-2014~~ 2014-2015 to the center for

educational performance and information under section 219, the

state treasurer shall withhold the monthly installments from that

community college until those data are submitted. The state budget

director shall notify the chairs of the house and senate

appropriations subcommittees on community colleges at least 10 days

before withholding funds from any community college.

Sec. 207a. All of the following apply to the allocation of the

fiscal year 2015-2016 appropriations described in section 201(4):

(a) A community college that receives money under section

201(4) shall use that money solely for the purpose of offsetting a

portion of the retirement contributions owed by the college for ~~the~~

that fiscal year. ~~ending September 30, 2015.~~

(b) The amount allocated to each participating community

college under section 201(4) shall be based on each ~~participating~~

college's percentage of the total covered payroll ~~covered by the~~

~~retirement system-covered payroll~~ for all community colleges that

are participating colleges ~~for fiscal year 2013-2014.~~in the

immediately preceding fiscal year.

Sec. 207b. All of the following apply to the allocation of the

fiscal year 2015-2016 appropriations described in section 201(5)

for payments to community colleges that are participating entities

of the retirement system:

(a) The amount of a payment under section 201(5) shall be the

difference between the unfunded actuarial accrued liability

contribution rate as calculated under section 41 of the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1341,

and the maximum employer rate of 20.96% under section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341.

(b) The amount allocated to each community college under

section 201(5) shall be based on each community college's

percentage of the total covered payroll for all community colleges

that are participating colleges in the immediately preceding fiscal

year. A community college that receives funds under this

subdivision shall use the funds solely for the purpose of

retirement contributions under section 201(5).

section 201(5) shall forward an amount equal to the amount

allocated under subdivision (b) to the retirement system in a form

and manner determined by the retirement system.

Sec. 207c. All of the following apply to the allocation of the

appropriations described in section 201(6) to community colleges

described in section 12(3) of the Michigan renaissance zone act,

1996 PA 376, MCL 125.2692:

(a) The amount allocated to each community college under

section 201(6) for fiscal year 2015-2016 shall be based on that

community college's proportion of total revenue lost by community

colleges ~~in fiscal year 2013-2014~~ as a result of the exemption of

property taxes levied in 2015 under the Michigan renaissance zone

act, 1996 PA 376, MCL 125.2681 to 125.2696.

(b) The appropriations described in section 201(6) shall be

made to each eligible community college within 60 days after the

department of treasury certifies to the state budget director that

it has received all necessary information to properly determine the

amounts ~~of tax revenue lost by~~ payable to each eligible community

college ~~in fiscal year 2013-2014~~ under section 12 of the Michigan

renaissance zone act, 1996 PA 376, MCL 125.2692.

Sec. 209. (1) Within 30 days after the board of a community

college adopts its annual operating budget for the following ~~school~~

fiscal year, or after the board adopts a subsequent revision to

that budget, the community college shall make all of the following

available through a link on its website homepage:

(a) The annual operating budget and subsequent budget

revisions.

(b) A link to the most recent "Activities Classification

Structure Data Book and Companion".

fiscal year ~~2014-2015~~ 2015-2016 and fiscal year ~~2015-2016.~~2016-

2017.

(d) A listing of all debt service obligations, detailed by

project, anticipated fiscal year ~~2014-2015~~ 2015-2016 payment of

each project, and total outstanding debt.

(e) The estimated cost to the community college resulting from

the patient protection and affordable care act, Public Law 111-148,

as amended by the health care and education reconciliation act of

2010, Public Law 111-152.

(f) Links to all of the following for the community college:

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not

limited to, medical, dental, vision, disability, long-term care, or

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee of the

community college.

(iii) Audits and financial reports for the most recent fiscal

year for which they are available.

(iv) A copy of the board of trustees resolution regarding

compliance with best practices for the local strategic value

component described in section 230(2).

(2) For statewide consistency and public visibility, community

colleges must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each community college's homepage.

The size of the icon may be reduced to 150 x 150 pixels.

(3) The state budget director shall determine whether a

community college has complied with this section. The state budget

director may withhold a community college's monthly installments

described in section 206 until the community college complies with

this section. The state budget director shall notify the chairs of

the house and senate appropriations subcommittee on community

colleges at least 10 days before withholding funds from any

community college.

(4) Each community college shall report the following

information to the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, and the

state budget office by November 15 of each fiscal year and post

that information on ~~the internet~~ its website as required under

subsection (1):

(a) Budgeted fiscal year ~~2014-2015~~ 2015-2016 general fund

revenue from tuition and fees.

(b) Budgeted fiscal year ~~2014-2015~~ 2015-2016 general fund

revenue from state appropriations.

revenue from property taxes.

(d) Budgeted fiscal year ~~2014-2015~~ 2015-2016 total general

fund revenue.

(e) Budgeted fiscal year ~~2014-2015~~ 2015-2016 total general

fund expenditures.

(5) By November 15 of each year, a community college shall

report the following information to the center for educational

performance and information and post the information on its website

under the budget transparency icon badge:

(a) Opportunities for earning college credit through the

following programs:

(i) State approved career and technical education or a tech

prep articulated program of study.

(ii) Direct college credit or concurrent enrollment.

(iii) Dual enrollment.

(iv) An early college/middle college program.

(b) For each program described in subdivision (a) that the

community college offers, all of the following information:

(i) The number of high school students participating in the

program.

(ii) The number of school districts that participate in the

program with the community college.

(iii) Whether a college professor, qualified local school

district employee, or other individual teaches the course or

courses in the program.

(iv) The total cost to the community college to operate the

program.

(v) The cost per credit hour for the course or courses in the

program.

(vi) The location where the course or courses in the program

are held.

(vii) Instructional resources offered to the program

instructors.

(viii) Resources offered to the student in the program.

(ix) Transportation services provided to students in the

program.

Sec. 210. (1) Recognizing the critical importance of education

in strengthening Michigan's workforce, ~~the legislature encourages~~

each community college is encouraged to explore ways of increasing

collaboration and cooperation with 4-year universities,

particularly in the areas related to training, instruction, and

program articulation.

(2) Recognizing the central role of community colleges in

responding to local employment needs and challenges, community

colleges shall develop and continue efforts to collaborate with

local employers and students to identify local employment needs and

strategies to meet them.

(3) Community colleges are encouraged to collaborate with each

other on innovations to identify and meet local employment needs.

(4) Community colleges are encouraged to work with

universities to develop equivalency standards of core college

courses and identify equivalent courses offered by postsecondary

institutions.

Sec. 210b. (1) It is the intent of the legislature that the

Michigan ~~association of collegiate registrars and admissions~~

~~officers~~ Association of Collegiate Registrars and Admissions

Officers implement any agreement or agreements among the community

colleges and universities concerning the transferability of college

courses resulting from the recommendations of the committee created

under former section 210a.

(2) It is the intent of the legislature that the Michigan

~~association of collegiate registrars and admissions officers,~~

Association of Collegiate Registrars and Admissions Officers, the

Michigan ~~community college association,~~ Community College

Association, and the ~~presidents council, state universities~~

Presidents Council, State Universities of Michigan shall together

submit an implementation update report to the senate and house

appropriations subcommittees on community colleges and higher

education, the senate and house fiscal agencies, and the state

budget director by March 1, ~~2015.~~2016.

Sec. 210c. (1) A study committee shall be created to develop a

process to improve the transferability and applicability of

associate of arts and associate of science degrees as a block of

credits between community colleges and public universities on a

statewide basis. Building on the Michigan transfer network

sponsored by the Michigan Association of Collegiate Registrars and

Admissions Officers and, where possible, existing local

articulation agreements between individual institutions, the

committee shall work to explore standards for program articulation

between institutions so that an associate of arts or associate of

science degree earned at a community college is considered the

equivalent of the first 60 credits of a baccalaureate degree, and

those credits can be seamlessly transferred and applied to the

program of study at the receiving university.

(2) It is the intent of the legislature that the study

committee created under subsection (1) explore issues relevant to

block transfer agreements, including, but not limited to, the

satisfaction of all lower division general education requirements,

the applicability of equivalent courses to the major program of

study, junior-level standing at the university for transfer

students, and the completion of the baccalaureate degree with a

limit of 60 post-transfer credit hours. Because of the

legislature's interest in promoting degree completion, the study

committee should also consider incentives for students to complete

both an associate degree and a baccalaureate degree.

(3) The study committee created under subsection (1) shall

consist of the following members:

(a) Ten representatives from community colleges selected by

the Michigan Community College Association.

(b) Ten representatives from public universities selected by

the Presidents Council, State Universities of Michigan.

Registrars and Admissions Officers.

(d) One member of the Michigan house of representatives

selected by the speaker of the house.

(e) One member of the Michigan house of representatives

selected by the minority leader of the house.

(f) One member of the Michigan senate selected by the senate

majority leader.

(g) One member of the Michigan senate selected by the senate

minority leader.

(4) The study committee created under subsection (1) shall

submit a project status report and initial recommendations to the

senate and house appropriations subcommittees on community colleges

and higher education, the senate and house fiscal agencies, and the

state budget director by March 1, 2016.

Sec. 213. ~~It is the intent of the legislature that community~~

Community colleges are encouraged to work with public universities

in the state to implement statewide reverse transfer agreements to

increase the number of students that are awarded credentials of

value upon completion of the necessary credits. These statewide

agreements shall enable students who have earned a significant

number of credits at a community college and transferred to a

baccalaureate-granting institution before completing a degree to

transfer the credits earned at the baccalaureate institution back

to the community college in order to be awarded a credential of

value.

Sec. 215. All of the following apply to the money appropriated

for part-time, independent student grants under section 201:

(a) Payments of the amounts included in section 201 for part-

time, independent student grants shall be distributed as provided

in this article and 1986 PA 102, MCL 390.1281 to 390.1288.

(b) In order to increase the number of residents in this state

with a postsecondary credential, a community college that receives

funds from the part-time, independent student grants under section

201 is encouraged to prioritize these funds for aid to students who

have enrolled in an academic program after not being enrolled for

more than a semester or term, who have previously earned credits in

an academic program, and who have not yet earned a certificate or

degree.

grants shall be paid out of the state treasury and shall be

distributed to the respective community colleges under a quarterly

payment system as follows: 50% shall be paid at the beginning of

the state's first fiscal quarter, 30% during the state's second

fiscal quarter, 10% during the state's third fiscal quarter, and

10% during the state's fourth fiscal quarter.

(d) The department of treasury shall determine the needs

analysis criteria for students to qualify for part-time,

independent student grants. To be consistent with federal

requirements, the department of treasury may take student wages

into consideration when determining the amount of the award.

Sec. 217. (1) The workforce development agency shall do all of

the following:

(a) Establish, maintain, and coordinate the state community

college database commonly known as the "activities classification

structure" or "ACS" database.

(b) Collect data concerning community colleges and community

college programs in this state, including data required by law.

reliability of the data and the collection process.

(d) Develop model data collection policies, including, but not

limited to, policies that ensure the privacy of any individual

student data. Privacy policies shall ensure that student social

security numbers are not released to the public for any purpose.

(e) Provide data in a useful manner to allow state

policymakers and community college officials to make informed

policy decisions.

(f) Assist community colleges in complying with audits under

this section or federal law.

(2) There is created within the workforce development agency

the activities classification structure advisory committee. The

committee shall provide advice to the director of the workforce

development agency regarding the management of the state community

college database, including, but not limited to:

(a) Determining what data are necessary to collect and

maintain to enable state and community college officials to make

informed policy decisions.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

accuracy of the data.

(f) Establishing and maintaining policies related to data

collection, including, but not limited to, privacy policies related

to individual student data.

(g) Ensuring that the data are made available to state

policymakers and citizens of this state in the most useful format

possible.

(h) Addressing other matters as determined by the director of

the workforce development agency or as required by law.

(3) The activities classification structure advisory committee

created in subsection (2) shall consist of the following members:

(a) One representative from the house fiscal agency, appointed

by the director of the house fiscal agency.

(b) One representative from the senate fiscal agency,

appointed by the director of the senate fiscal agency.

appointed by the director of the workforce development agency.

(d) One representative from the state budget office, appointed

by the state budget director.

(e) One representative from the governor's policy office,

appointed by that office.

(f) Four representatives of the Michigan ~~community colleges~~

~~association,~~ Community College Association, appointed by the

president of the association. From the groupings of community

colleges given in table 17 of the activities classification

structure ~~report~~ database described in subsection ~~(4),~~ (1), the

association shall appoint 1 representative each from group 1, group

2, and group 3, and 1 representative from either group 3 or 4.

~~(4) The activities classification structure advisory committee~~

~~shall review the existing activities classification structure~~

~~report, data, definitions, processes, and other items as needed and~~

~~publish an initial report on their findings and recommendations by~~

~~July 30, 2015. This report shall be submitted to the senate and~~

~~house appropriations subcommittees on community colleges, the~~

~~senate and house fiscal agencies, the director of the workforce~~

~~development agency, the state budget director, and the Michigan~~

~~community colleges association.~~

Sec. 222. Each community college shall have an annual audit of

all income and expenditures performed by an independent auditor and

shall furnish the independent auditor's management letter and an

annual audited accounting of all general and current funds income

and expenditures including audits of college foundations to the

members of the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, the

auditor general, the workforce development agency, and the state

budget director before November 15 of each year. If a community

college fails to furnish the audit materials, the monthly state aid

installments shall be withheld from that college until the

information is submitted. All reporting shall conform to the

requirements set forth in the "2001 Manual for Uniform Financial

Reporting, Michigan Public Community Colleges". ~~It is the intent of~~

~~the legislature that a~~ A community college shall make the

information the community college is required to provide under this

section available to the public on its ~~internet~~ website.

Sec. 225. Each community college shall report to the house and

senate fiscal agencies, the state budget director, and the

workforce development agency by August 31, ~~2014,~~ 2015, the tuition

and mandatory fees paid by a full-time in-district student and a

full-time out-of-district student as established by the college

governing board for the ~~2014-2015~~ 2015-2016 academic year. This

report should also include the annual cost of attendance based on a

full-time course load of 30 credits. Each community college shall

also report any revisions to the reported ~~2014-2015~~ 2015-2016

academic year tuition and mandatory fees adopted by the college

governing board to the house and senate fiscal agencies, the state

budget director, and the workforce development agency within 15

days of being adopted.

Sec. 226. Each community college shall report to the workforce

development agency the numbers and type of associate degrees and

other certificates awarded during the previous fiscal year. The

report shall be made not later than November 15 of each year.

Community colleges shall work with the workforce development agency

and the center for educational performance and information to

develop a systematic approach for meeting this requirement.

Sec. 229. (1) ~~It is the intent of the legislature that each~~

Each community college that receives an appropriation in section

201 is expected to include in its admission application process a

specific question as to whether an applicant for admission has ever

served or is currently serving in the United States armed forces or

is the spouse or dependent of an individual who has served or is

currently serving in the United States armed forces, in order to

more quickly identify potential educational assistance available to

that applicant.

(2) It is ~~the intent of the legislature~~ expected that each

public community college that receives an appropriation in section

201 shall work with the house and senate community college

subcommittees, the Michigan ~~community college association,~~

Community College Association, and veterans groups to review the

issue of in-district tuition for veterans of this state when

determining tuition rates and fees.

(3) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, 38 USC 3301 to ~~3324.~~3325.

Sec. 229a. Included in the fiscal year ~~2014-2015~~ 2015-2016

appropriations for the department of technology, management, and

budget are appropriations totaling $29,479,600.00 to provide

funding for the state share of costs for previously constructed

capital projects for community colleges. Those appropriations for

state building authority rent represent additional state general

fund support for community colleges, and the following is an

estimate of the amount of that support to each community college:

(a) Alpena Community College, ~~$485,400.00.~~$652,700.00.

(b) Bay de Noc Community College, ~~$636,600.00.~~$685,900.00.

(d) Glen Oaks Community College, ~~$123,300.00.~~$123,100.00.

(e) Gogebic Community College, ~~$16,900.00.~~$67,600.00.

(f) Grand Rapids Community College,

~~$1,792,400.00.~~$2,126,000.00.

(g) Henry Ford Community College, ~~$1,030,800.00.~~$1,028,500.00.

(h) Jackson College, ~~$1,787,300.00.~~$1,677,800.00.

(i) Kalamazoo Valley Community College,

~~$1,471,000.00.~~$1,557,700.00.

(j) Kellogg Community College, ~~$521,400.00.~~$520,200.00.

(k) Kirtland Community College, ~~$364,000.00.~~$363,200.00.

(l) Lake Michigan College, ~~$340,900.00.~~$340,200.00.

(m) Lansing Community College, ~~$610,100.00.~~$1,282,200.00.

(n) Macomb Community College, ~~$1,316,600.00.~~$1,377,400.00.

(o) Mid Michigan Community College,

~~$1,117,300.00.~~$1,712,600.00.

(p) Monroe County Community College,

~~$1,266,500.00.~~$1,263,600.00.

(q) Montcalm Community College, ~~$973,700.00.~~$971,500.00.

(r) C.S. Mott Community College, ~~$1,808,000.00.~~$1,803,900.00.

(s) Muskegon Community College, ~~$198,500.00.~~$267,800.00.

(t) North Central Michigan College, ~~$117,600.00.~~$469,400.00.

(u) Northwestern Michigan College,

~~$1,308,600.00.~~$1,305,600.00.

(v) Oakland Community College, ~~$466,300.00.~~$465,200.00.

(w) St. Clair County Community College,

~~$357,000.00.~~$356,200.00.

(x) Schoolcraft College, ~~$1,550,300.00.~~$1,546,700.00.

(y) Southwestern Michigan College, ~~$231,100.00.~~$286,900.00.

(z) Washtenaw Community College, ~~$1,680,600.00.~~$1,676,800.00.

(aa) Wayne County Community College,

~~$1,466,000.00.~~$1,462,700.00.

(bb) West Shore Community College, ~~$578,600.00.~~$577,300.00.

Sec. 230. (1) Money included in the appropriations for

community college operations under section 201(2) in fiscal year

~~2014-2015~~ 2015-2016 for performance funding is distributed based on

the following formula:

(a) Allocated proportionate to fiscal year ~~2013-2014~~ 2014-2015

base appropriations, 50%.

(b) Based on contact hour equated students, 10%.

(d) Based on a weighted degree formula as provided for in the

2006 recommendations of the performance indicators task force,

17.5%.

(e) Based on the local strategic value component, as developed

in cooperation with the Michigan ~~community college association~~

Community College Association and described in subsection (2), 15%.

(2) Money included in the appropriations for community college

operations under section 201(2) for local strategic value shall be

allocated to each community college that certifies to the state

budget director, through a board of trustees resolution on or

before October 15, ~~2014,~~ 2015, that the college has met 4 out of 5

best practices listed in each category described in subsection (3).

The resolution shall provide specifics as to how the community

college meets each best practice measure within each category. One-

third of funding available under the strategic value component

shall be allocated to each category described in subsection (3).

Amounts distributed under local strategic value shall be on a

proportionate basis to each college's fiscal year ~~2013-2014~~ 2014-

2015 operations funding. Payments to community colleges that

qualify for local strategic value funding shall be distributed with

the November installment payment described in section 206.

(3) For purposes of subsection (2), the following categories

of best practices reflect functional activities of community

colleges that have strategic value to the local communities and

regional economies:

(a) For Category A, economic development and business or

industry partnerships, the following:

(i) The community college has active partnerships with local

employers including hospitals and health care providers.

(ii) The community college provides customized on-site

training for area companies, employees, or both.

(iii) The community college supports entrepreneurship through

a small business assistance center or other training or consulting

activities targeted toward small businesses.

(iv) The community college supports technological advancement

through industry partnerships, incubation activities, or operation

of a Michigan technical education center or other advanced

technology center.

(v) The community college has active partnerships with local

or regional workforce and economic development agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active partnerships with

regional high schools, intermediate school districts, and career-

tech centers to provide instruction through dual enrollment,

concurrent enrollment, direct credit, middle college, or academy

programs.

(ii) The community college hosts, sponsors, or participates in

enrichment programs for area K-12 students, such as college days,

summer or after-school programming, or science Olympiad.

(iii) The community college provides, supports, or

participates in programming to promote successful transitions to

college for traditional age students, including grant programs such

as talent search, upward bound, or other activities to promote

college readiness in area high schools and community centers.

(iv) The community college provides, supports, or participates

in programming to promote successful transitions to college for new

or reentering adult students, such as adult basic education,

general education development certificate preparation and testing,

or recruiting, advising, or orientation activities specific to

adults.

(v) The community college has active partnerships with

regional 4-year colleges and universities to promote successful

transfer, such as articulation, 2+2, or reverse transfer agreements

or operation of a university center.

(i) The community college provides continuing education

programming for leisure, wellness, personal enrichment, or

professional development.

(ii) The community college operates or sponsors opportunities

for community members to engage in activities that promote leisure,

wellness, cultural or personal enrichment such as community sports

teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public facilities to

promote cultural, educational, or personal enrichment for community

members, such as libraries, computer labs, performing arts centers,

museums, art galleries, or television or radio stations.

(iv) The community college operates public facilities to

promote leisure or wellness activities for community members,

including gymnasiums, athletic fields, tennis courts, fitness

centers, hiking or biking trails, or natural areas.

(v) The community college promotes, sponsors, or hosts

community service activities for students, staff, or community

members.

(4) Payments for performance funding under section 201(2)

shall be made to a community college only if that community college

actively participates in and submits timely updates to the Michigan

transfer network sponsored by the Michigan Association of

Collegiate Registrars and Admissions Officers. The state budget

director shall determine if a community college has not satisfied

this requirement. The state budget director may withhold payments

for performance funding until a community college is in compliance

with this section.

Sec. 236. (1) Subject to the conditions set forth in this

article, the amounts listed in this section are appropriated for

higher education for the fiscal year ending September 30, ~~2015,~~

2016, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

(a) The gross appropriation is ~~$1,516,496,300.00.~~

$1,527,223,600.00. After deducting total interdepartmental grants

and intradepartmental transfers in the amount of $0.00, the

adjusted gross appropriation is

~~$1,516,496,300.00.~~$1,527,223,600.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, ~~$97,026,400.00.~~$97,026,400.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$206,567,900.00.~~$205,279,500.00.

(v) State general fund/general purpose money,

~~$1,212,902,000.00.~~$1,224,917,700.00.

(2) Amounts appropriated for public universities are as

follows:

(a) The appropriation for Central Michigan University is

~~$79,115,000.00, $73,540,100.00 for operations and $5,574,900.00 for~~

~~performance funding.~~$80,297,400.00, $79,164,800.00 for operations

and $1,132,600.00 for performance funding.

(b) The appropriation for Eastern Michigan University is

~~$71,771,100.00, $67,275,400.00 for operations and $4,495,700.00 for~~

~~performance funding.~~$72,467,900.00, $71,782,500.00 for operations

and $685,400.00 for performance funding.

~~$49,087,000.00, $45,636,500.00 for operations and $3,450,500.00 for~~

~~performance funding.~~$49,840,900.00, $49,119,100.00 for operations

and $721,800.00 for performance funding.

(d) The appropriation for Grand Valley State University is

~~$63,136,000.00, $57,823,500.00 for operations and $5,312,500.00 for~~

~~performance funding.~~$64,379,600.00, $63,156,500.00 for operations

and $1,223,100.00 for performance funding.

(e) The appropriation for Lake Superior State University is

~~$12,782,500.00, $12,231,000.00 for operations and $551,500.00 for~~

~~performance funding.~~$13,118,700.00, $12,997,500.00 for operations

and $121,200.00 for performance funding.

(f) The appropriation for Michigan State University is

~~$324,038,100.00, $249,597,800.00 for operations, $14,831,300.00 for~~

~~performance funding, $32,027,900.00 for MSU [AgBioResearch,] and~~

~~$27,581,100.00 for MSU extension.~~$327,129,800.00, $264,437,900.00

for operations, $2,500,700.00 for performance funding,

$32,340,700.00 for MSU AgBioResearch, and $27,850,500.00 for MSU

Extension.

(g) The appropriation for Michigan Technological University is

~~$45,923,100.00, $43,473,800.00 for operations and $2,449,300.00 for~~

~~performance funding.~~$46,409,300.00, $45,938,000.00 for operations

and 471,300.00 for performance funding.

(h) The appropriation for Northern Michigan University is

~~$44,277,200.00, $41,741,400.00 for operations and $2,535,800.00 for~~

~~performance funding.~~$44,782,400.00, $44,338,300.00 for operations

and $444,100.00 for performance funding.

(i) The appropriation for Oakland University is

~~$48,364,100.00, $45,651,600.00 for operations and $2,712,500.00 for~~

~~performance funding.~~$49,171,700.00, $48,371,900.00 for operations

and $799,800.00 for performance funding.

(j) The appropriation for Saginaw Valley State University is

~~$27,610,200.00, $25,991,000.00 for operations and $1,619,200.00 for~~

~~performance funding.~~$27,944,600.00, $27,621,600.00 for operations

and $323,000.00 for performance funding.

(k) The appropriation for University of Michigan � Ann Arbor

is ~~$295,174,100.00, $279,232,700.00 for operations and~~

~~$15,941,400.00 for performance funding.~~$297,946,900.00,

$295,178,500.00 for operations and $2,768,400.00 for performance

funding.

(l) The appropriation for University of Michigan � Dearborn is

~~$23,689,300.00, $22,510,400.00 for operations and $1,178,900.00 for~~

~~performance funding.~~$23,892,700.00, $23,701,000.00 for operations

and $191,700.00 for performance funding.

(m) The appropriation for University of Michigan � Flint is

~~$21,337,700.00, $19,938,200.00 for operations and $1,399,500.00 for~~

~~performance funding.~~$21,622,700.00, $21,359,600.00 for operations

and $263,100.00 for performance funding.

(n) The appropriation for Wayne State University is

~~$190,519,800.00, $183,398,300.00 for operations and $7,121,500.00~~

~~for performance funding.~~$191,061,700.00, $190,529,900.00 for

operations and $531,800.00 for performance funding.

(o) The appropriation for Western Michigan University is

~~$102,742,000.00, $97,279,000.00 for operations and $5,463,000.00~~

~~for performance funding.~~$103,669,100.00, $102,761,100.00 for

operations and $908,000.00 for performance funding.

(3) The amount appropriated in subsection (2) for public

universities is appropriated from the following:

(a) State school aid fund, ~~$200,019,500.00.~~$200,019,500.00.

(b) State general fund/general purpose money,

~~$1,199,547,700.00.~~$1,213,715,900.00.

(4) The amount appropriated for Michigan public school

employees' retirement system reimbursement is ~~$2,446,200.00,~~

$5,160,000.00, appropriated from the state school aid fund.

~~(5) For fiscal year 2014-2015 only, in addition to the amount~~

~~appropriated under subsection (4), $4,002,200.00 is appropriated~~

~~for Michigan public school employees' retirement system~~

~~reimbursement, appropriated from the state school aid fund.~~

(5) ~~(6)~~ The amount appropriated for state and regional

programs is ~~$2,295,000.00~~ $315,000.00, appropriated from general

fund/general purpose money and allocated as follows:

~~(a) College access program, $2,000,000.00.~~

(a) ~~(b)~~ Higher education database modernization and

conversion, $200,000.00.

(b) ~~(c)~~ Midwestern ~~higher education compact, $95,000.00.~~

Higher Education Compact, $115,000.00.

(6) ~~(7)~~ The amount appropriated for the Martin Luther King,

Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00,

appropriated from general fund/general purpose money and allocated

as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program,

$586,800.00.

$148,600.00.

(7) ~~(8)~~ Subject to subsection ~~(9),~~ (8), the amount

appropriated for grants and financial aid is ~~$105,494,200.00,~~

$105,321,700.00, allocated as follows:

(a) State competitive scholarships, $18,361,700.00.

(b) Tuition grants, ~~$33,532,500.00.~~$33,860,000.00.

(d) Children of veterans and officer's survivor tuition grant

programs, $1,400,000.00.

(e) Project GEAR-UP, $3,200,000.00.

~~(f) North American Indian tuition waivers, $500,000.00.~~

(8) ~~(9)~~ The money appropriated in subsection ~~(8)~~ (7) for

grants and financial aid is appropriated from the following:

(a) Federal revenues under the United States ~~department of~~

~~education, office of elementary and secondary education,~~ Department

of Education, Office of Elementary and Secondary Education, GEAR-UP

program, $3,200,000.00.

(b) Federal revenues under the social security act, temporary

assistance for needy families, $93,826,400.00.

program, $100,000.00.

(d) State general fund/general purpose money,

~~$8,367,800.00.~~$8,195,300.00.

Sec. 236a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2016~~

2017 for the items listed in section 236. The fiscal year ~~2015-2016~~

2016-2017 appropriations are anticipated to be the same as those

for fiscal year ~~2014-2015,~~ 2015-2016, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January ~~2015~~ 2016

consensus revenue estimating conference.

Sec. 236b. In addition to the funds appropriated in section

236, there is appropriated for grants and financial aid in fiscal

year ~~2014-2015~~ 2015-2016 an amount not to exceed $6,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred under section 393(2)

of the management and budget act, 1984 PA 431, MCL 18.1393, for

another purpose under this article.

Sec. 236c. In addition to the funds appropriated for fiscal

year ~~2014-2015~~ 2015-2016 in section 236, appropriations to the

department of technology, management, and budget in the act

providing general appropriations for fiscal year ~~2014-2015~~ 2015-

2016 for state building authority rent, totaling an estimated

~~$124,825,300.00,~~ $135,995,300.00, provide funding for the state

share of costs for previously constructed capital projects for

state universities. These appropriations for state building

authority rent represent additional state general fund support

provided to public universities, and the following is an estimate

of the amount of that support to each university:

(a) Central Michigan University, ~~$9,103,200.00.~~$9,551,800.00.

(b) Eastern Michigan University, ~~$4,861,700.00.~~$4,860,900.00.

(d) Grand Valley State University,

~~$4,252,500.00.~~$6,952,300.00.

(e) Lake Superior State University,

~~$1,112,900.00.~~$1,720,300.00.

(f) Michigan State University, ~~$16,101,200.00.~~$16,549,200.00.

(g) Michigan Technological University,

~~$7,444,600.00.~~$7,443,400.00.

(h) Northern Michigan University, ~~$8,016,400.00.~~$9,706,200.00.

(i) Oakland University, ~~$10,969,800.00.~~$12,993,400.00.

(j) Saginaw Valley State University,

~~$9,777,400.00.~~$9,865,800.00.

(k) University of Michigan - Ann Arbor,

~~$9,159,200.00.~~$9,607,800.00.

(l) University of Michigan - Dearborn,

~~$6,296,200.00.~~$6,745,200.00.

(m) University of Michigan - Flint,

~~$2,855,000.00.~~$3,104,000.00.

(n) Wayne State University, ~~$13,679,800.00.~~$15,703,000.00.

(o) Western Michigan University,

~~$14,943,200.00.~~$14,940,800.00.

Sec. 241. (1) Subject to ~~section~~ sections 244 and 265a, the

funds appropriated in section 236 to public universities shall be

paid out of the state treasury and distributed by the state

treasurer to the respective institutions in 11 equal monthly

installments on the sixteenth of each month, or the next succeeding

business day, beginning with October 16, ~~2014.~~ 2015. Except for

Wayne State University, each institution shall accrue its July and

August ~~2015~~ 2016 payments to its institutional fiscal year ending

June 30, ~~2015.~~ 2016.

(2) All public universities shall submit higher education

institutional data inventory (HEIDI) data and associated financial

and program information requested by and in a manner prescribed by

the state budget director. For public universities with fiscal

years ending June 30, ~~2014,~~ 2015, these data shall be submitted to

the state budget director by October 15, ~~2014.~~ 2015. Public

universities with a fiscal year ending September 30, ~~2014~~ 2015

shall submit preliminary HEIDI data by November 15, ~~2014~~ 2015 and

final data by December 15, ~~2014.~~ 2015. If a public university fails

to submit HEIDI data and associated financial aid program

information in accordance with this reporting schedule, the state

treasurer may withhold the monthly installments under subsection

(1) to the public university until those data are submitted.

Sec. 244. A public university receiving funds in section 236

shall cooperate with all measures taken by the state to develop,

operate, and maintain the statewide P-20 longitudinal data system

described in section 94a. If the state budget director finds that a

university has not complied with this section, the state budget

director is authorized to withhold the monthly installments

provided to that university under section ~~236~~ 241 until he or she

finds the university has complied with this section.

Sec. 246. (1) All of the following apply to the allocation of

the fiscal year 2015-2016 appropriations described in section

236(4) for payments to universities that are participating entities

of the Michigan public school employees' retirement system:

(a) The funds appropriated in section ~~236~~ 236(4) for Michigan

public school employees' retirement system reimbursement shall be

allocated to each participating public university under this

section based on each participating public university's percentage

of the total combined payrolls of the universities' employees who

are members of the retirement system and who were hired before

January 1, 1996 and the universities' employees who would have been

members of the retirement system on or after January 1, 1996, but

for the enactment of 1995 PA 272 for all public universities that

are participating public universities for the immediately preceding

state fiscal year.

(b) The amount of a payment under section 236(4) shall be

equal to the difference between the unfunded actuarial accrued

liability contribution rate for university reporting units as

calculated under section 41 of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341, as calculated

without taking into account the maximum employer rate of 25.73%

included in section 41 of the public school employees retirement

act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer

rate for university reporting units of 25.73% under section 41 of

the public school employees retirement act of 1979, 1980 PA 300,

MCL 38.1341. Payments shall be made in a form and manner determined

by the office of retirement services.

236(4) shall use that money solely for the purpose of ~~offsetting a~~

~~portion of the~~ retirement contributions. ~~owed by the university.~~

Each participating university that receives funds under section

236(4) shall forward an amount equal to the amount received under

section 236(4) to the Michigan public school employees' retirement

system in a form and manner determined by the office of retirement

services.

(2) As used in this section, "participating public university"

means a public university that is a reporting unit of the Michigan

public school employees' retirement system under the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

~~38.1408,~~ 38.1437, and that pays contributions to the Michigan

public school employees' retirement system for the state fiscal

year.

Sec. 252. (1) The amounts appropriated in section 236 for the

state tuition grant program shall be distributed pursuant to 1966

PA 313, MCL 390.991 to 390.997a.

(2) Tuition grant awards shall be made to all eligible

Michigan residents enrolled in undergraduate degree programs who

are qualified and who apply before July 1 of each year for the next

academic year.

(3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

subject to subsections (7) and (8), the department of treasury

shall determine an actual maximum tuition grant award per student,

which shall be no less than $1,512.00, that ensures that the

aggregate payments for the tuition grant program do not exceed the

appropriation contained in section 236 for the state tuition grant

program. If the department determines that insufficient funds are

available to establish a maximum award amount equal to at least

$1,512.00, the department shall immediately report to the house and

senate appropriations subcommittees on higher education, the house

and senate fiscal agencies, and the state budget director regarding

the estimated amount of additional funds necessary to establish a

$1,512.00 maximum award amount. If the department determines that

sufficient funds are available to establish a maximum award amount

equal to at least $1,512.00, the department shall immediately

report to the house and senate appropriations subcommittees on

higher education, the house and senate fiscal agencies, and the

state budget director regarding the maximum award amount

established and the projected amount of any projected year-end

appropriation balance based on that maximum award amount. By

~~December 15, and again by~~ February 18 of each fiscal year, the

department shall analyze the status of award commitments, shall

make any necessary adjustments, and shall confirm that those award

commitments will not exceed the appropriation contained in section

236 for the tuition grant program. The determination and actions

shall be reported to the state budget director and the house and

senate fiscal agencies no later than the final day of February of

each year. If award adjustments are necessary, the students shall

be notified of the adjustment by March 4 of each year.

(4) Any unexpended and unencumbered funds remaining on

September 30, ~~2015~~ 2016 from the amounts appropriated in section

236 for the tuition grant program for fiscal year ~~2014-2015~~ 2015-

2016 shall not lapse on September 30, ~~2015,~~ 2016, but shall

continue to be available for expenditure for tuition grants

provided in the ~~2015-2016~~ 2016-2017 fiscal year under a work

project account. The use of these unexpended fiscal year ~~2014-2015~~

2015-2016 funds shall terminate at the end of the ~~2015-2016~~ 2016-

2017 fiscal year.

(5) The department of treasury shall continue a proportional

tuition grant maximum award level for recipients enrolled less than

full-time in a given semester or term.

(6) If the department of treasury increases the maximum award

per eligible student from that provided in the previous fiscal

year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards for that

fiscal year.

(7) Except as provided in subsection (4), the department of

treasury shall not award more than ~~$3,200,000.00~~ $3,300,000.00 in

tuition grants to eligible students enrolled in the same

independent nonprofit college or university in this state. Any

decrease in the maximum grant shall be proportional for all

eligible students enrolled in that college or university, as

determined by the department.

(8) The department of treasury shall not award tuition grants

to otherwise eligible students enrolled in an independent college

or university that does not report, in a form and manner directed

by and satisfactory to the department of treasury, by ~~August 31~~

September 30 of each year, ~~beginning with August 31, 2015,~~ all of

the following:

(a) The number of students in the most recently completed

academic year ~~that~~ who in any academic year received a state

tuition grant at the reporting institution and successfully

completed a program or graduated.

(b) The number of students in the most recently completed

academic year ~~that~~ who in any academic year received a state

tuition grant at the reporting institution and took a remedial

education class.

academic year ~~that~~ who in any academic year received a Pell grant

at the reporting institution and successfully completed a program

or graduated.

(9) By February 1, 2016, each independent college and

university participating in the tuition grant program shall report

to the senate and house appropriations subcommittees on higher

education, the senate and house fiscal agencies, and the state

budget director on its efforts to develop and implement sexual

assault response training for the institution's title IX

coordinator, campus law enforcement personnel, campus public safety

personnel, and any other campus personnel charged with responding

to on-campus incidents, including information on sexual assault

response training materials and the status of implementing sexual

assault response training for institutional personnel.

Sec. 256. (1) The funds appropriated in section 236 for the

tuition incentive program shall be distributed as provided in this

section and pursuant to the administrative procedures for the

tuition incentive program of the department of treasury.

(2) As used in this section:

(a) "Phase I" means the first part of the tuition incentive

assistance program defined as the academic period of 80 semester or

120 term credits, or less, leading to an associate degree or

certificate.

(b) "Phase II" means the second part of the tuition incentive

assistance program which provides assistance in the third and

fourth year of 4-year degree programs.

(3) An individual shall meet the following basic criteria and

financial thresholds to be eligible for tuition incentive benefits:

(a) To be eligible for phase I, an individual shall meet all

of the following criteria:

(i) Apply for certification to the department any time after

he or she begins the sixth grade but before August 31 of the school

year in which he or she graduates from high school or before

completing a general education development certificate.

(ii) Be less than 20 years of age at the time he or she

graduates from high school with a diploma or certificate of

completion or completes a general education development

certificate.

(iii) Be a United States citizen and a resident of Michigan

according to institutional criteria.

(iv) Be at least a half-time student, earning less than 80

semester or 120 term credits at a participating educational

institution within 4 years of high school graduation or completion

of a general education development certificate.

(v) Request information on filing a FAFSA.

(vi) Must meet the satisfactory academic progress policy of

the educational institution he or she attends.

(b) To be eligible for phase II, an individual shall meet

either of the following criteria in addition to the criteria in

subdivision (a):

(i) Complete at least 56 transferable semester or 84

transferable term credits.

(ii) Obtain an associate degree or certificate at a

participating institution.

not be incarcerated and must be financially eligible as determined

by the department. An individual is financially eligible for the

tuition incentive program if he or she was eligible for Medicaid

from the state of Michigan for 24 months within the 36 months

before application. The department shall accept certification of

Medicaid eligibility only from the department of human services for

the purposes of verifying if a person is Medicaid eligible for 24

months within the 36 months before application. Certification of

eligibility may begin in the sixth grade. As used in this

subdivision, "incarcerated" does not include detention of a

juvenile in a state-operated or privately operated juvenile

detention facility.

(4) For phase I, the department shall provide payment on

behalf of a person eligible under subsection (3). The department

shall reject billings that are excessive or outside the guidelines

for the type of educational institution.

(5) For phase I, all of the following apply:

(a) Payments for associate degree or certificate programs

shall not be made for more than 80 semester or 120 term credits for

any individual student at any participating institution.

(b) For persons enrolled at a Michigan community college, the

department shall pay the current in-district tuition and mandatory

fees. For persons residing in an area that is not included in any

community college district, the out-of-district tuition rate may be

authorized.

department shall pay lower division resident tuition and mandatory

fees for the current year.

(d) For persons enrolled at a Michigan independent, nonprofit

degree-granting college or university, or a Michigan federal

tribally controlled community college, or Focus: HOPE, the

department shall pay mandatory fees for the current year and a per-

credit payment that does not exceed the average community college

in-district per-credit tuition rate as reported on August 1, for

the immediately preceding academic year.

(6) A person participating in phase II may be eligible for

additional funds not to exceed $500.00 per semester or $400.00 per

term up to a maximum of $2,000.00 subject to the following

conditions:

(a) Credits are earned in a 4-year program at a Michigan

degree-granting ~~4-year~~ college or university.

(b) The tuition reimbursement is for coursework completed

within 30 months of completion of the phase I requirements.

(7) The department shall work closely with participating

institutions to develop an application and eligibility

determination process that will provide the highest level of

participation and ensure that all requirements of the program are

met.

(8) Applications for the tuition incentive program may be

approved at any time after the student begins the sixth grade. If a

determination of financial eligibility is made, that determination

is valid as long as the student meets all other program

requirements and conditions.

(9) Each institution shall ensure that all known available

restricted grants for tuition and fees are used prior to billing

the tuition incentive program for any portion of a student's

tuition and fees.

(10) The department shall ensure that the tuition incentive

program is well publicized and that eligible Medicaid clients are

provided information on the program. The department shall provide

the necessary funding and staff to fully operate the program.

Sec. 258. By February 15 of each year, the department of

treasury shall post to its publicly available website a report for

the preceding fiscal year on all student financial aid programs for

which funds are appropriated in section 201 or section 236. For

each student financial aid program, the report shall include, but

is not limited to, the total number of awards paid in the preceding

fiscal year, the total dollar amount of those awards, and the

number of students receiving awards and the total amount of those

awards at each eligible postsecondary institution. To the extent

information is available, the report shall also include information

on household income and other demographic characteristics of

students receiving awards under each program and historical

information on the number of awards and total award amounts for

each program.

Sec. 260. A public university receiving funds under section

236 is encouraged to adopt The Common Application, managed by The

Common Application, Incorporated, to make postsecondary education

more accessible to students in this state.

Sec. 263. (1) Included in the appropriation in section 236 for

fiscal year ~~2014-2015~~ 2015-2016 for MSU AgBioResearch is

$2,982,900.00 and included in the appropriation in section 236 for

MSU ~~extension~~ Extension is $2,645,200.00 for ~~project~~ Project

GREEEN. Project GREEEN is intended to address critical regulatory,

food safety, economic, and environmental problems faced by this

state's plant-based agriculture, forestry, and processing

industries. "GREEEN" is an acronym for ~~generating research and~~

~~extension to meet environmental and economic needs.~~Generating

Research and Extension to Meet Environmental and Economic Needs.

(2) The department of agriculture and rural development and

Michigan State University, in consultation with agricultural

commodity groups and other interested parties, shall develop

~~project~~ Project GREEEN and its program priorities.

Sec. 263a. (1) Not later than September 30 of each year,

Michigan State University shall submit a report on MSU

AgBioResearch and MSU ~~extension~~ Extension to the house and senate

appropriations subcommittees on agriculture and on higher

education, the house and senate standing committees on agriculture,

the house and senate fiscal agencies, and the state budget director

for the preceding academic fiscal year.

(2) The report required under subsection (1) shall include all

of the following:

(a) Total funds expended by MSU AgBioResearch and by MSU

~~extension service~~ Extension identified by state, local, private,

federal, and university fund sources.

(b) The metric goals that were used to evaluate the impacts of

programs operated by MSU ~~extension~~ Extension and MSU AgBioResearch.

~~It is the intent of the legislature that the~~ The following metric

goals will be used to evaluate the impacts of those programs:

(i) Increasing the number of agriculture and food-related

firms collaborating with and using services of research and

extension faculty and staff by 3% per year.

(ii) Increasing the number of individuals utilizing MSU

~~extension's~~ Extension's educational services by 5% per year.

(iii) Increasing external funds generated in support of

research and extension, beyond state appropriations, by 10% over

the amounts generated in the past 3 state fiscal years.

(iv) Increasing the sector's total economic impact ~~from~~

~~today's $71,000,000,000.00~~ to at least $100,000,000,000.00.

(v) ~~Doubling~~ Increasing Michigan's agricultural exports ~~from~~

~~$1,750,000,000.00~~ to at least $3,500,000,000.00.

(vi) Increasing jobs in the food and agriculture sector by

10%.

(vii) Improving access by Michigan consumers to healthy foods

by 20%.

and MSU ~~extension~~ Extension with specific reference to

accomplishments, impacts, and the metrics described in subdivision

(b), including a specific accounting of Project GREEEN expenditures

and the impact of those expenditures.

Sec. 264. Included in the appropriation in section 236 for

fiscal year ~~2014-2015~~ 2015-2016 for Michigan State University is

$80,000.00 for the Michigan ~~future farmers of America association.~~

Future Farmers of America Association. This $80,000.00 allocation

shall not supplant any existing support that Michigan State

University provides to the Michigan ~~future farmers of America~~

~~association.~~Future Farmers of America Association.

Sec. 265. (1) Payments under section 265a for performance

funding shall only be made to a public university that certifies to

the state budget director by August 31, ~~2014~~ 2015 that its board

did not adopt an increase in tuition and fee rates for resident

undergraduate students after September 1, ~~2013~~ 2014 for the ~~2013-~~

~~2014~~ 2014-2015 academic year and that its board will not adopt an

increase in tuition and fee rates for resident undergraduate

students for the ~~2014-2015~~ 2015-2016 academic year that is greater

than ~~3.2%.~~ 4.0% or $400.00 per student, whichever is greater. As

used in this subsection:

(a) ~~Subject to subdivision (c), "fee"~~ "Fee" means any board-

authorized fee that will be paid by more than 1/2 of all resident

undergraduate students at least once during their enrollment at a

public university. A university increasing a fee that applies to a

specific subset of students or courses shall provide sufficient

information to prove that the increase applied to that subset will

not cause the increase in the average amount of board-authorized

total tuition and fees paid by resident undergraduate students in

the ~~2014-2015~~ 2015-2016 academic year to exceed the limit

established in this subsection.

(b) "Tuition and fee rate" means the average of full-time

rates for all undergraduate classes, based on an average of the

rates authorized by the university board and actually charged to

students, deducting any ~~uniformly-rebated~~ uniformly rebated or

refunded amounts, for the 2 semesters with the highest levels of

full-time equated resident undergraduate enrollment during the

academic year.

~~(c) For purposes of subdivision (a), for a public university~~

~~that compels resident undergraduate students to be covered by~~

~~health insurance as a condition to enroll at the university, "fee"~~

~~includes the annual amount a student is charged for coverage by the~~

~~university-affiliated group health insurance policy if he or she~~

~~does not provide proof that he or she is otherwise covered by~~

~~health insurance. This subdivision does not apply to limited~~

~~subsets of resident undergraduate students to be covered by health~~

~~insurance for specific reasons other than general enrollment at the~~

~~university.~~

(2) The state budget director shall implement uniform

reporting requirements to ensure that a public university receiving

a payment under section 265a for performance funding has satisfied

the tuition restraint requirements of this section. The state

budget director shall have the sole authority to determine if a

public university has met the requirements of this section.

Information reported by a public university to the state budget

director under this subsection shall also be reported to the house

and senate appropriations subcommittees on higher education and the

house and senate fiscal agencies.

Sec. 265a. (1) Appropriations to public universities in

section 236 for fiscal year ~~2014-2015~~ 2015-2016 for performance

funding shall be paid only to a public university that complies

with section 265 and certifies to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies by August 31, ~~2014~~ 2015

that it complies with all of the following requirements:

(a) The university participates in reverse transfer agreements

described in section 286 with at least 3 Michigan community

colleges or has made a good-faith effort to enter into reverse

transfer agreements.

(b) The university does not and will not consider whether dual

enrollment credits earned by an incoming student were utilized

towards his or her high school graduation requirements when making

a determination as to whether those credits may be used by the

student toward completion of a university degree or certificate

program.

~~network~~ Transfer Network created as part of the Michigan

~~association of collegiate registrars and admissions officers~~

Association of Collegiate Registrars and Admissions Officers

transfer agreement.

(2) Any performance funding amounts under section 236 that are

not paid to a public university because it did not comply with 1 or

more requirements under subsection (1) are unappropriated and

reappropriated for performance funding to those public universities

that meet the requirements under subsection (1), distributed in

proportion to their performance funding appropriation amounts under

section 236.

(3) The state budget director shall report to the house and

senate appropriations subcommittees on higher education and the

house and senate fiscal agencies by September ~~17, 2014,~~ 30, 2015,

regarding any performance funding amounts that are not paid to a

public university because it did not comply with 1 or more

requirements under subsection (1) and any reappropriation of funds

under subsection (2).

(4) Performance funding amounts described in section 236 are

distributed based on the following formula:

~~(a) Proportional to each university's share of total~~

~~operations funding appropriated in fiscal year 2010-2011, 50.0%.~~

(a) ~~(b)~~ Based on weighted undergraduate completions in

critical skills areas, ~~11.1%.~~22.2%.

(b) ~~(c)~~ Based on research and development expenditures, for

universities classified in Carnegie classifications as

doctoral/research universities, research universities (high

research activity), or research universities (very high research

activity) only, ~~5.6%.~~11.1%.

completions, and institutional support as a percentage of core

expenditures, and the percentage of students receiving Pell grants,

scored against national Carnegie classification peers and weighted

by total undergraduate fiscal year equated students, ~~33.3%.~~66.7%.

(5) For purposes of determining the score of a university

under subsection ~~(4)(d),~~ (4)(c), each university is assigned 1 of

the following scores:

(a) A university classified as in the top 20%, a score of 3.

(b) A university classified as above national median, a score

of 2.

~~the intent of the legislature that, beginning in the 2015-2016~~

~~state fiscal year, a university classified as improving is assigned~~

~~a score of 1.~~

(d) A university that is not included in subdivision (a), (b),

or (c), a score of 0.

(6) For purposes of this section, "Carnegie classification"

shall mean the basic classification of the university according to

the most recent version of the Carnegie classification of

institutions of higher education, published by the Carnegie

~~foundation for the advancement of teaching.~~Foundation for the

Advancement of Teaching.

Sec. 267. All public universities shall submit the amount of

tuition and fees actually charged to a full-time resident

undergraduate student for academic year ~~2014-2015~~ 2015-2016 as part

of their higher education institutional data inventory (HEIDI) data

by August 31 of each year. A public university shall report any

revisions for any semester of the reported academic year ~~2014-2015~~

2015-2016 tuition and fee charges to HEIDI within 15 days of being

adopted.

Sec. 268. (1) For the fiscal year ending September 30, ~~2014,~~

2015, it is the intent of the legislature that funds be allocated

for unfunded North American Indian tuition waiver costs incurred by

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

from the general fund.

~~(2) Appropriations in section 236(8)(f) for North American~~

~~Indian tuition waivers shall be paid to universities under section~~

~~2a of 1976 PA 174, MCL 390.1252a. Allocations shall be adjusted for~~

~~amounts included in university operations appropriations. If funds~~

~~are insufficient to support the entire cost of waivers, amounts~~

~~shall be prorated.~~

(2) ~~(3)~~ By February 15 of each year, the department of civil

rights shall annually submit to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies a report on North American

Indian tuition waivers for the preceding fiscal year that includes,

but is not limited to, all of the following information for each

postsecondary institution:

(a) The total number of waiver applications.

(b) The total number of waivers granted and the monetary value

of each waiver.

(d) The number of students who successfully complete a degree

or certificate program and the 6-year graduation rate.

(3) A public university that receives funds under section 236

shall provide to the department of civil rights any information

necessary for preparing the report detailed in subsection (2).

Sec. 269. For fiscal year ~~2014-2015,~~ 2015-2016, from the

amount appropriated in section 236 to Central Michigan University

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 270. For fiscal year ~~2014-2015~~ 2015-2016, from the amount

appropriated in section 236 to Lake Superior State University for

operations, $100,000.00 shall be paid to Bay Mills Community

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 274. It is the intent of the legislature that public and

private organizations that conduct human embryonic stem cell

derivation subject to section 27 of article I of the state

constitution of 1963 will provide information to the director of

the department of ~~community~~ health and human services by December

1, ~~2014~~ 2015 that includes all of the following:

(a) Documentation that the organization conducting human

embryonic stem cell derivation is conducting its activities in

compliance with the requirements of section 27 of article I of the

state constitution of 1963 and all relevant ~~national institutes of~~

~~health~~ National Institutes of Health guidelines pertaining to

embryonic stem cell derivation.

(b) A list of all human embryonic stem cell lines submitted by

the organization to the ~~national institutes of health~~ National

Institutes of Health for inclusion in the ~~human embryonic stem cell~~

~~registry~~ Human Embryonic Stem Cell Registry before and during

fiscal year ~~2013-2014,~~ 2014-2015, and the status of each submission

as approved, pending approval, or review completed but not yet

accepted.

submitted for inclusion in the ~~human embryonic stem cell registry,~~

Human Embryonic Stem Cell Registry, before and during fiscal year

~~2013-2014.~~2014-2015.

Sec. 274c. By February 1, 2016, each university receiving

funds under section 236 shall report to the senate and house

appropriations subcommittees on higher education, the senate and

house fiscal agencies, and the state budget director on its efforts

to develop and implement sexual assault response training for the

university's title IX coordinator, campus law enforcement

personnel, campus public safety personnel, and any other campus

personnel charged with responding to on-campus incidents, including

information on sexual assault response training materials and the

status of implementing sexual assault response training for campus

personnel.

Sec. 276. (1) Included in the appropriation for fiscal year

~~2014-2015~~ 2015-2016 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

future faculty program that is intended to increase the pool of

academically or economically disadvantaged candidates pursuing

faculty teaching careers in postsecondary education. Preference may

not be given to applicants on the basis of race, color, ethnicity,

gender, or national origin. Institutions should encourage

applications from applicants who would otherwise not adequately be

represented in the graduate student and faculty populations. Each

public university shall apply the percentage change applicable to

every public university in the calculation of appropriations in

section 236 to the amount of funds allocated to the future faculty

program.

(2) The program shall be administered by each public

university in a manner prescribed by the workforce development

agency. The workforce development agency shall use a good faith

effort standard to evaluate whether a fellowship is in default.

Sec. 277. (1) Included in the appropriation for fiscal year

~~2014-2015~~ 2015-2016 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

college day program that is intended to introduce academically or

economically disadvantaged schoolchildren to the potential of a

college education. Preference may not be given to participants on

the basis of race, color, ethnicity, gender, or national origin.

Public universities should encourage participation from those who

would otherwise not adequately be represented in the student

population.

(2) Individual program plans of each public university shall

include a budget of equal contributions from this program, the

participating public university, the participating school district,

and the participating independent degree-granting college. College

day funds shall not be expended to cover indirect costs. Not more

than 20% of the university match shall be attributable to indirect

costs. Each public university shall apply the percentage change

applicable to every public university in the calculation of

appropriations in section 236 to the amount of funds allocated to

the college day program.

(3) The program described in this section shall be

administered by each public university in a manner prescribed by

the workforce development agency.

Sec. 278. (1) Included in section 236 for fiscal year ~~2014-~~

~~2015~~ 2015-2016 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks select student support services program for

developing academically or economically disadvantaged student

retention programs for 4-year public and independent educational

institutions in this state. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

student population.

(2) An award made under this program to any 1 institution

shall not be greater than $150,000.00, and the amount awarded shall

be matched on a 70% state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 279. (1) Included in section 236 for fiscal year ~~2014-~~

~~2015~~ 2015-2016 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks college/university partnership program between

4-year public and independent colleges and universities and public

community colleges, which is intended to increase the number of

academically or economically disadvantaged students who transfer

from community colleges into baccalaureate programs. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Institutions should

encourage participation from those who would otherwise not

adequately be represented in the transfer student population.

(2) The grants shall be made under the program described in

this section to Michigan public and independent colleges and

universities. An award to any 1 institution shall not be greater

than $150,000.00, and the amount awarded shall be matched on a 70%

state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 280. (1) Included in the appropriation for fiscal year

~~2014-2015~~ 2015-2016 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

visiting professors program which is intended to increase the

number of instructors in the classroom to provide role models for

academically or economically disadvantaged students. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Public universities should

encourage participation from those who would otherwise not

adequately be represented in the student population.

(2) The program described in this section shall be

administered by the workforce development agency.

Sec. 281. (1) Included in the appropriation for fiscal year

~~2014-2015~~ 2015-2016 in section 236 is funding under the Martin

Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the

Morris Hood, Jr. educator development program which is intended to

increase the number of academically or economically disadvantaged

students who enroll in and complete K-12 teacher education programs

at the baccalaureate level. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

teacher education student population.

(2) The program described in this section shall be

administered by each state-approved teacher education institution

in a manner prescribed by the workforce development agency.

(3) Approved teacher education institutions may and are

encouraged to use student support services funding in coordination

with the Morris Hood, Jr. funding to achieve the goals of the

program described in this section.

Sec. 282. Each institution receiving funds for fiscal year

2015-2016 under section 278, 279, or 281 shall notify the workforce

development agency by April 15, ~~of each year~~ 2016 as to whether it

will expend by the end of its fiscal year the funds received under

section 278, 279, or 281. Notwithstanding the award limitations in

sections 278 and 279, the amount of funding reported as not being

expended will be reallocated to the institutions that intend to

expend all funding received under section 278, 279, or 281.

Sec. 283. (1) From the amount appropriated in section 236, the

public universities shall use the P-20 longitudinal data system to

systematically inform Michigan high schools regarding the academic

status of students from each high school in a manner prescribed by

the ~~presidents council, state universities~~ Presidents Council,

State Universities of Michigan in cooperation with the Michigan

~~association of secondary school principals.~~ Association of

Secondary School Principals. Public universities shall also work

with the center for educational performance and information to

maintain a systematic approach for accomplishing this task.

(2) Michigan high schools shall systematically inform the

public universities about the use of information received under

this section in a manner prescribed by the Michigan ~~association of~~

~~secondary school principals~~ Association of Secondary School

Principals in cooperation with the ~~presidents council, state~~

~~universities~~ Presidents Council, State Universities of Michigan.

Sec. 284. From the amount appropriated in section 236, the

public universities shall use the P-20 longitudinal data system to

inform Michigan community colleges regarding the academic status of

community college transfer students in a manner prescribed by the

~~presidents council, state universities~~ Presidents Council, State

Universities of Michigan in cooperation with the Michigan ~~community~~

~~college association.~~ Community College Association. Public

universities shall also work with the center for educational

performance and information to maintain a systematic approach for

accomplishing this task.

Sec. 286. ~~It is the intent of the legislature that public~~

Public universities shall work with community colleges in the state

House Bill No. 4115 as amended April 29, 2015

to implement statewide reverse transfer agreements to increase the

number of students that are awarded credentials of value upon

completion of the necessary credits. ~~It is the intent of the~~

~~legislature that these~~ These statewide agreements shall enable

students who have earned a significant number of credits at a

community college and transfer to a baccalaureate granting

institution before completing a degree to transfer the credits

earned at the baccalaureate institution back to the community

college in order to be awarded a credential of value.

Enacting section 1. (1) In accordance with section 30 of

article I of the state constitution of 1963, total state spending

on school aid under article I of the state school aid act of 1979,

1979 PA 94, MCL 388.1601 to 388.1772, as amended by this amendatory

act, from state sources for fiscal year 2015-2016 is estimated at

[$12,130,699,900.00] and state appropriations for school aid to be

paid to local units of government for fiscal year 2015-2016 are

estimated at [$11,958,405,300.00].

(2) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

community colleges for fiscal year 2015-2016 under article II of

the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to

388.1830, as amended by this amendatory act, is estimated at

$392,596,800.00 and the amount of that state spending from state

sources to be paid to local units of government for fiscal year

2015-2016 is estimated at $392,596,800.00.

(3) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

higher education for fiscal year 2015-2016 under article III of the

state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1893,

as amended by this amendatory act, is estimated at

$1,430,197,200.00 and the amount of that state spending from state

sources to be paid to local units of government for fiscal year

2015-2016 is estimated at $0.00.

Enacting section 2. Sections 12, 20g, 22f, 22i, 22j, 31b, 32r,

41, 64b, 64c, 64d, 74a, 107, 147d, 259, 262a, 273, 274a, and 293 of

the state school aid act of 1979, 1979 PA 94, MCL 388.1612,

388.1620g, 388.1622f, 388.1622i, 388.1622j, 388.1631b, 388.1632r,

388.1641, 388.1664b, 388.1664c, 388.1664d, 388.1674a, 388.1707,

388.1747d, 388.1859, 388.1862a, 388.1873, 388.1874a, and 388.1893,

are repealed effective October 1, 2015.

Enacting section 3. (1) Except as otherwise provided in

subsection (2), this amendatory act takes effect October 1, 2015.

(2) Sections 18a and 95a of the state school aid act of 1979,

1979 PA 94, MCL 388.1618a and 388.1695a, as amended by this

amendatory act, take effect upon enactment of this amendatory act.