HOUSE BILL No. 4395

March 25, 2015, Introduced by Rep. Glenn and referred to the Committee on Education.

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 21f, 22f, 32d, 98, 101, 107, and 163 (MCL

388.1606, 388.1621f, 388.1622f, 388.1632d, 388.1698, 388.1701,

388.1707, and 388.1763), as amended by 2014 PA 196.

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 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 in the cyber school's educational

program is considered regular daily attendance; for the education

achievement system, a pupil's participation 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.

(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). 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). 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 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 or teacher engaged to teach under section

1233b of the revised school code, MCL 380.1233b.

(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 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.

(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,~~ Virtual

School, for the pupil's enrollment in the Michigan ~~virtual~~

~~school.~~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, a

teacher engaged to teach under section 1233b of the revised school

code, MCL 380.1233b, or a 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. 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 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 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 district 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 district to provide the online course, the district

shall accept for enrollment all of the nonresident applicants

eligible for acceptance. If the number of nonresident applicants

exceeds the district's capacity to provide the online course, the

district shall use a random draw system, subject to the need to

abide by state and federal antidiscrimination laws and court

orders.

(5) A district may deny a 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), 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 district for enrollment and

schedule changes for regular courses.

(6) If a pupil is denied enrollment in an online course by a

district, the pupil may appeal the denial by submitting a letter to

the superintendent of the intermediate district in which the

pupil's educating district is located. The letter of appeal shall

include the reason provided by the 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 district shall allow

the pupil to enroll in the online course.

(7) To offer or provide an online course under this section, a

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) Offer the online course on an open entry and exit method,

or aligned to a semester, trimester, or accelerated academic term

format.

~~virtual university~~ Virtual University with the number of

enrollments in each online course the district or intermediate

district offered 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) For a pupil enrolled in 1 or more online courses published

in the pupil's educating 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 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.

(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.

(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.

(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.

(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.

(13) As used in this section:

(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 in which a teacher who holds a valid Michigan teaching

certificate or is a teacher engaged to teach under section 1233b of

the revised school code, MCL 380.1233b, is responsible for

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.

(b) "Online course syllabus" means a document that 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~~ School Codes for the ~~exchange of~~

~~data~~ 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.

more online courses.

(d) "Primary district" means the district that enrolls the

pupil and reports the pupil as a full-time equated pupil for pupil

membership purposes.

Sec. 22f. (1) From the appropriation in section 11, there is

allocated for 2014-2015 an amount not to exceed $75,000,000.00 to

provide incentive payments to districts that meet best practices

under this section. Payments received under this section may be

used for any purpose for which payments under sections 22a and 22b

may be used.

(2) The amount of the incentive payment under this section is

an amount equal to $50.00 per pupil. A district shall receive an

incentive payment under this section if the district satisfies at

least 7 of the following requirements not later than June 1, 2015:

(a) If a 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 district is the policyholder for each of its

insurance policies that covers 1 or more of these benefits. A

district that does not directly employ its staff or a 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.

(b) The district has obtained competitive bids on the

provision of pupil transportation, food service, custodial, or 1 or

more other noninstructional services for 2014-2015. In comparing

competitive bids to the current costs of providing 1 or more of

these services, a district shall exclude the unfunded accrued

liability costs for retirement and other benefits from the

district's current costs.

nonresident applicants under section 105 or 105c. A public school

academy is considered to have met this requirement.

(d) The district offers online courses or blended learning

opportunities to all eligible pupils. In order to satisfy this

requirement, a district must make all eligible pupils and their

parents or guardians aware of these opportunities and must publish

an online course syllabus as described in section 21f for each

online course that the district offers. For the purposes of this

subdivision:

(i) "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 or a teacher engaged to teach under section 1233b of

the revised school code, MCL 380.1233b, 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.

(ii) "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 in which a teacher with a valid Michigan teaching

certificate or a teacher engaged to teach under section 1233b of

the revised school code, MCL 380.1233b, is responsible for

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.

(e) The district provides to parents and community members a

dashboard or report card demonstrating the district's efforts to

manage its finances responsibly. The dashboard or report card shall

include revenue and expenditure projections for the district for

fiscal year 2014-2015 and fiscal year 2015-2016, a listing of all

debt service obligations, detailed by project, including

anticipated fiscal year 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) Graduation and dropout rates.

(ii) Average class size in grades kindergarten to 3.

(iii) College readiness as measured by Michigan merit

examination test scores.

(iv) Elementary and middle school MEAP scores.

(v) Teacher, principal, and superintendent salary information

including at least minimum, average, and maximum pay levels.

(vi) General fund balance.

(vii) The total number of days of instruction provided.

(f) The district complies with a method of compensation for

teachers and school administrators that includes job performance

and accomplishments as a significant factor in determining

compensation, as required under section 1250 of the revised school

code, MCL 380.1250.

(g) The district's collective bargaining agreements,

including, but not limited to, appendices, addenda, letters of

agreement, or any other documents reflecting agreements with

collective bargaining representatives, do not contain any

provisions pertaining to, relating to, or that are otherwise

contrary to the prohibited subjects of bargaining enumerated in

section 15(3) of 1947 PA 336, MCL 423.215.

(h) The district implements a comprehensive guidance and

counseling program.

(i) The district offers pupils in grades K to 8 the

opportunity to complete coursework or other learning experiences

that are substantially equivalent to 1 credit in a language other

than English.

(3) If the department determines that a district has

intentionally submitted false information in order to qualify for

an incentive payment under this section, the district forfeits an

amount equal to the amount it received under this section from its

total state school aid for 2015-2016.

(4) If the department determines that funds allocated under

this section will remain unexpended after the initial allocation of

$50.00 per pupil to eligible districts under subsection (2), the

remaining unexpended amount is allocated on an equal per pupil

basis to districts that meet the requirements of subsection (2) and

that have a foundation allowance, as calculated under section 20,

in an amount that is less than the basic foundation allowance under

that section.

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. 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 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,

or must be a teacher engaged to teach under section 1233b of the

revised school code, MCL 380.1233b. 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% 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% 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.

(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, 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. 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 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.

(v) Before August 31, 2015, 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, 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.

(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~~ 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 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 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 registration, payment services, and

transcript functionality to the statewide catalog.

(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~~ Virtual

University to receive any funds allocated under this section, the

Michigan ~~virtual school~~ Virtual School must maintain its

accreditation status from recognized national and international

accrediting entities.

(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, 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 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 later

than February 1, 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 or a teacher engaged to teach under section 1233b of

the revised school code, MCL 380.1233b, 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~~ 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 or a teacher engaged to teach under section 1233b of

the revised school code, MCL 380.1233b, is responsible for

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. 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 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 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 or a teacher engaged to teach

under section 1233b of the revised school code, MCL 380.1233b, if

all of the following are met:

(i) The instructor has met all of the requirements established

by the United States 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 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, 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. 107. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $22,000,000.00 for 2014-2015 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 or teachers engaged to teach

under section 1233b of the revised school code, MCL 380.1233b, 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 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 will

provide services in 2014-2015 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. 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) from the United States ~~census bureau.~~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.~~Census Bureau.

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.~~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.

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.

eligible for reimbursement until 1 of the following occurs:

(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.

(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.

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.

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 the department-approved assessment policy.

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.~~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 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.

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. 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 to teach in an elementary or

secondary school or in an adult basic education or high school

completion program unless the teacher holds a valid Michigan

teaching certificate or is a teacher engaged to teach under section

1233b of the revised school code, MCL 380.1233b.

(b) A noncertificated counselor to provide counseling services

to pupils in an elementary or secondary school or in an adult basic

education or high school completion program.

(2) Except as provided in the revised school code, a district

or intermediate district employing teachers who do not hold a valid

Michigan teaching certificate or are not engaged to teach under

section 1233b of the revised school code, MCL 380.1233b, or

counselors not legally certificated shall have deducted the sum

equal to the amount paid the teachers or counselors for the period

of noncertificated or illegal employment. Each intermediate

superintendent shall notify the department of the name of the

noncertificated teacher or counselor, and the district employing

that individual and the amount of salary the noncertificated

teacher or counselor 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 in violation of this section and knowingly continues to

employ that teacher or counselor, 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.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect

unless Senate Bill No.____ or House Bill No. 4394 (request no.

01883'15) of the 98th Legislature is enacted into law.