SB-0134, As Passed House, September 17, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 134

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 11, 21f, 31a, 32d, and 107 (MCL 388.1606,

 

388.1611, 388.1621f, 388.1631a, 388.1632d, and 388.1707), section 6

 

as amended by 2014 PA 196 and sections 11, 21f, 31a, 32d, and 107

 

as amended by 2015 PA 85.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

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

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

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

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 

report of the number of pupils, excluding adult education

 

participants, in the district for the immediately preceding school

 

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

 

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

 

or other credential of equal status.

 

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

 

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

 

education achievement system, or an intermediate district the sum

 

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

 

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

 

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

 

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

 

supplemental count day for the immediately preceding school year. A

 

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

 

membership shall be adjusted as provided under section 25e for

 

pupils who enroll in the district, public school academy, or

 

intermediate district after the pupil membership count day. All

 

pupil counts used in this subsection are as determined by the

 

department and calculated by adding the number of pupils registered

 

for attendance plus pupils received by transfer and minus pupils

 

lost as defined by rules promulgated by the superintendent, and as

 

corrected by a subsequent department audit. For the purposes of

 

this section and section 6a, for a school of excellence that is a

 

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

 

MCL 380.551, and is in compliance with section 553a of the revised

 

school code, MCL 380.553a, a pupil's participation , as determined

 

by the department in accordance with the pupil accounting manual,

 

in the cyber school's educational program is considered regular

 

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

 

participation , as determined by the department in accordance with

 

the pupil accounting manual, in an online educational program of

 

the education achievement system or of an achievement school is

 

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

 

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

 

considered regular daily attendance. The amount of the foundation

 

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

 

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

 

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

 

public school academy, the education achievement system, or an

 

intermediate district:

 

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

 

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

 

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

 

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

 

membership.

 

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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

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

 

district.

 

     (c) A special education pupil educated by the intermediate

 

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.

 

     (C) Is less than 22 years of age as of September 1 of the

 

current school year.

 

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

 

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

 

be eligible to attend school for that school year under section

 

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

 

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

 

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

 

parent or legal guardian has notified the district in writing that

 

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

 

school year.

 

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

 

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

 

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

 

counted in membership unless the individual is a student with a

 

disability as defined in R 340.1702 of the Michigan administrative

 

code. An individual participating in a job training program funded

 

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

 

section 107b, administered by the Michigan strategic fund, or

 

participating in any successor of either of those 2 programs, shall

 

not be counted in membership.

 

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

 

academy or the education achievement system is also educated by a

 

district or intermediate district as part of a cooperative

 

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

 

the public school academy or the education achievement system

 

unless a written agreement signed by all parties designates the

 

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

 

and the instructional time scheduled for the pupil in the district

 

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

 

membership determination under subdivision (q) and section 101.

 

However, for pupils receiving instruction in both a public school

 

academy or the education achievement system and in a district or

 

intermediate district but not as a part of a cooperative education

 

program, the following apply:

 

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

 

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

 

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 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

 

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 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. 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) 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 required under section 101 for full-time equivalency. For the

 

purposes of this subdivision, a district shall be considered to be

 

providing appropriate instruction if all of the following are met:

 

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

 

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

 

apart from the general school population under the supervision of a

 

certificated teacher.

 

     (ii) The district provides instructional materials, resources,

 

and supplies that are comparable to those otherwise provided in the

 

district's alternative education program.

 

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

 

alternative education program.

 

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

 

pupil's transcript.

 

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

 

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

 

with its authorizing body is revoked or the public school academy

 

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

 

or the education achievement system within 45 days after the pupil

 

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

 

the education achievement system's pupil count for the pupil

 

membership count day to include the pupil in the count.

 

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

 

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

 

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

 

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

 

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

 

the first pupil membership count day or supplemental count day,

 

whichever is first, occurring after operations resume, plus the

 

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

 

pupil membership count day or supplemental count day that occurred

 

before suspending operations, as determined by the superintendent.

 

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

 

as otherwise calculated under this subsection, would be less than

 

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

 

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

 

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

 

shall be considered to be the membership figure calculated under

 

this subdivision. If a district educates and counts in its

 

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

 

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

 

the affected districts request the department to use the

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

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

 

purposes of this subdivision. The membership figure calculated

 

under this subdivision is the greater of the following:

 

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

 

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

 

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

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

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

 

otherwise calculated under this subsection.

 

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

 

who are not enrolled in kindergarten but are enrolled in a

 

classroom program under R 340.1754 of the Michigan administrative

 

code shall be determined by dividing the number of class hours

 

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

 

memberships for special education pupils who are not enrolled in

 

kindergarten but are receiving early childhood special education

 

services under R 340.1755 or R 340.1862 of the Michigan

 

administrative code shall be determined by dividing the number of

 

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

 

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

 

Labor Day who is enrolled in an intermediate district program that

 

begins before Labor 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.

 

     (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. If a pupil described in this subdivision was

 

counted in membership by the operating district on the immediately

 

preceding supplemental count day, the pupil shall be excluded from

 

the district's immediately preceding supplemental count for the

 

purposes of determining the district's membership.

 

     (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 25g. The district operating the program shall

 

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

 

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

 

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

 

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

 

are met:

 

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

 

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

 

participates in the program.

 

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

 

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

 

pupil does not meet that definition of satisfactory monthly

 

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

 

satisfactory monthly progress in the immediately preceding month

 

and appropriate interventions are implemented within 10 school days

 

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

 

of satisfactory monthly progress.

 

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

 

21f shall be counted in membership in the district enrolling the

 

pupil.

 

     (ff) If a public school academy that is not in its first or

 

second year of operation closes at the end of a school year and

 

does not reopen for the next school year, the department shall

 

adjust the membership count of the district or the education

 

achievement system in which a former pupil of the public school

 

academy enrolls and is in regular daily attendance for the next

 

school year to ensure that the district or the education

 

achievement system receives the same amount of membership aid for

 

the pupil as if the pupil were counted in the district or the

 

education achievement system on the supplemental count day of the

 

preceding school year.

 

     (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.

 

     (c) A pupil enrolled in a public school academy or the

 

education achievement system.

 

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

 

district of residence under an intermediate district schools of

 

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

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

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

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

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

 

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

 

the official complaint either indicates that the assault occurred

 

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

 

pupils enrolled in the school the pupil would otherwise attend in

 

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

 

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

 

crime to law enforcement officials for the purposes of this

 

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

 

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

 

that conduct. As used in this subdivision:

 

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

 

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

 

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

 

school premises.

 

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

 

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

 

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

 

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

 

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

 

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

 

pupil membership count day and before the supplemental count day

 

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

 

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

 

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

 

     (h) A pupil enrolled in an alternative education program

 

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

 

who meets 1 or more of the following:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

pupil's enrollment in the Michigan virtual school.

 

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

 

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

 

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

 

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

 

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

 

or legal ward.

 

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

 

expelling district and is reinstated by another school board under

 

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

 

380.1311a.

 

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

 

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

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

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

 

district of residence who attends a United States Olympic Education

 

Center.

 

     (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.

 

     However, if a district educates pupils who reside in another

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating

 

district must have the approval of that other district to count

 

those pupils in membership.

 

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

 

district means:

 

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

 

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

 

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

 

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

 

superintendent, the immediately following day on which school is in

 

session in the district or building.

 

     (b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

     (i) Fourth Wednesday in July.

 

     (ii) First Wednesday in October.

 

     (iii) Second Wednesday in February.

 

     (iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

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

 

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

 

pupil membership count day or supplemental count day and who fails

 

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

 

30 calendar days after the pupil membership count day or

 

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

 

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

 

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

 

academy, or the education achievement system before the pupil

 

membership count day or supplemental count day of a particular year

 

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

 

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

 

equated membership if the pupil resumed attendance in the district,

 

intermediate district, public school academy, or education

 

achievement system within 45 days after the pupil membership count

 

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

 

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

 

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

 

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

 

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

 

legally qualified substitute teacher are together and instruction

 

is taking place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

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

 

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

 

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

 

membership for the immediately preceding fiscal year.

 

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

 

July 1 and continues through June 30.

 

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

 

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

 

district or intermediate district superintendent, means the

 

superintendent of public instruction described in section 3 of

 

article VIII of the state constitution of 1963.

 

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

 

supplemental pupil count is conducted under section 6a.

 

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

 

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

 

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

 

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

 

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

 

whose parent or guardian voluntarily enrolls the pupil in a

 

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

 

district of residence shall not require a high school tuition

 

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

 

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

 

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

 

established in section 11 of article IX of the state constitution

 

of 1963.

 

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

 

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

 

PA 206, MCL 211.27a.

 

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

 

instructional print or electronic resource that is selected and

 

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

 

achievement school, by the chancellor of the achievement authority

 

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

 

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

 

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

 

that forms the basis of classroom instruction.

 

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

 

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

 

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

 

article.

 

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

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,814,097,400.00 from the state school aid fund, the sum of

 

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

 

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

 

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

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$12,074,660,100.00 $12,078,985,100.00 from the state school aid

 

fund and the sum of $45,900,000.00 from the general fund. In

 

addition, all other available federal funds are appropriated each

 

fiscal year for the fiscal years ending September 30, 2015 and

 

September 30, 2016.

 

     (2) The appropriations under this section shall be allocated

 

as provided in this article. Money appropriated under this section

 

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

 

this article before the expenditure of money appropriated under

 

this section from the state school aid fund.

 

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

 

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

 

the school aid stabilization fund created under section 11a.

 

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

 

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

 

in this section.

 

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

 

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

 

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

 

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

 

primary district, the request for online course enrollment must be

 

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

 

the enrollment. A district may not establish additional

 

requirements that would prohibit a pupil from taking an online

 

course. If a pupil has demonstrated previous success with online

 

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

 

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

 

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

 

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

 

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

 

age 18 or is an emancipated minor.

 

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

 

in the pupil's primary district's catalog of online courses

 

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

 

courses maintained by the Michigan Virtual University pursuant to

 

section 98.

 

     (4) A providing district or community college shall determine

 

whether or not it has capacity to accept applications for

 

enrollment from nonresident applicants in online courses and may

 

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

 

the number of nonresident applicants eligible for acceptance in an

 

online course does not exceed the capacity of the providing

 

district or community college to provide the online course, the

 

providing district or community college shall accept for enrollment

 

all of the nonresident applicants eligible for acceptance. If the

 

number of nonresident applicants exceeds the providing district's

 

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

 

providing district or community college shall use a random draw

 

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

 

antidiscrimination laws and court orders.

 

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

 

in an online course if any of the following apply, as determined by

 

the district:

 

     (a) The pupil has previously gained the credits provided from

 

the completion of the online course.

 

     (b) The online course is not capable of generating academic

 

credit.

 

     (c) The online course is inconsistent with the remaining

 

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 (10), unless the pupil's parent or legal

 

guardian agrees to pay the cost that exceeds this amount.

 

     (g) The online course enrollment request does not occur within

 

the same timelines established by the primary district for

 

enrollment and schedule changes for regular courses.

 

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

 

pupil's primary district, the pupil may appeal the denial by

 

submitting a letter to the superintendent of the intermediate

 

district in which the pupil's primary district is located. The

 

letter of appeal shall include the reason provided by the primary

 

district for not enrolling the pupil and the reason why the pupil

 

is claiming that the enrollment should be approved. The

 

intermediate district superintendent or designee shall respond to

 

the appeal within 5 days after it is received. If the intermediate

 

district superintendent or designee determines that the denial of

 

enrollment does not meet 1 or more of the reasons specified in

 

subsection (5), the primary district shall allow the pupil to

 

enroll in the online course.

 

     (7) To provide an online course under this section, the

 

providing district or intermediate district shall do all of the

 

following:

 

     (a) Provide the Michigan Virtual University with the course

 

syllabus in a form and method prescribed by the Michigan Virtual

 

University for inclusion in a statewide online course catalog. 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.

 

     (b) Assign to each pupil a teacher of record and provide the

 

primary district with the personal identification code for the

 

teacher of record.

 

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

 

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

 

format.

 

     (d) Not later than October 1, 2015, provide the Michigan

 

Virtual University with the number of enrollments in each online

 

course the district or intermediate district provided to pupils

 

pursuant to this section in the immediately preceding school year,

 

and the number of enrollments in which the pupil earned 60% or more

 

of the total course points for each online course.

 

     (8) To provide an online course under this section, a

 

community college shall do all of the following:

 

     (a) Provide the Michigan Virtual University with the course

 

syllabus in a form and method prescribed by the Michigan Virtual

 

University for inclusion in a statewide online course catalog.

 

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

 

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

 

format.

 

     (c) Ensure that each online course it provides under this

 

section generates postsecondary credit.

 

     (d) Beginning with October 1, 2016, and by October 1 of each

 

year thereafter, provide the Michigan Virtual University with the

 

number of enrollments in each online course the community college

 

provided to pupils pursuant to this section in the immediately

 

preceding school year, and the number of enrollments in which the

 

pupil earned 60% or more of the total course points for each online

 

course.

 

     (e) Be taught by an instructor employed by or contracted

 

through the community college.

 

     (9) For any online course a pupil enrolls in under this

 

section, the pupil's primary district must assign to the pupil a

 

mentor to monitor the pupil's progress during the online course and

 

shall supply the providing district with the mentor's contact

 

information.

 

     (10) For a pupil enrolled in 1 or more online courses

 

published in the pupil's primary district's catalog of online

 

courses under subsection (7) or in the statewide catalog of online

 

courses maintained by the Michigan Virtual University, the primary

 

district shall use foundation allowance or per-pupil funds

 

calculated under section 20 to pay for the expenses associated with

 

the online course or courses. A district is not required to pay

 

toward the cost of an online course an amount that exceeds 6.67% of

 

the minimum foundation allowance for the current fiscal year as

 

calculated under section 20.

 

     (11) An online learning pupil shall have the same rights and

 

access to technology in his or her primary district's school

 

facilities as all other pupils enrolled in the pupil's primary

 

district.

 

     (12) If a pupil successfully completes an online course, as

 

determined by the pupil's primary district, the pupil's primary

 

district shall grant appropriate academic credit for completion of

 

the course and shall count that credit toward completion of

 

graduation and subject area requirements. A pupil's school record

 

and transcript shall identify the online course title as it appears

 

in the online course syllabus.

 

     (13) The enrollment of a pupil in 1 or more online courses

 

shall not result in a pupil being counted as more than 1.0 full-

 

time equivalent pupils under this article.

 

     (14) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under this

 

section shall not be transferred under the pupil transfer process

 

under section 25e.

 

     (15) As used in this section:

 

     (a) "Mentor" means a professional employee of the primary

 

district who monitors the pupil's progress, ensures the pupil has

 

access to needed technology, is available for assistance, and

 

ensures access to the teacher of record. A mentor may also serve as

 

the teacher of record if the mentor meets the requirements under

 

subdivision (g).

 

     (b) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 

Internet-connected learning environment, in which pupils are

 

separated from their teachers by time or location, or both, and, if

 

the course is provided by a district or intermediate district, in

 

which a teacher who holds a valid Michigan teaching certificate

 

that qualifies the teacher to teach the course is responsible for

 

providing instruction, determining appropriate instructional

 

methods for each pupil, diagnosing learning needs, assessing pupil

 

learning, prescribing intervention strategies, reporting outcomes,

 

and evaluating the effects of instruction and support strategies.

 

     (c) "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 (NCES) school codes for the

 

exchange of data (SCED).

 

     (xi) The number of eligible nonresident pupils that will be

 

accepted by the district or intermediate district in the online

 

course.

 

     (xii) The results of the online course quality review using

 

the guidelines and model review process published by the Michigan

 

Virtual University.

 

     (d) "Online learning pupil" means a pupil enrolled in 1 or

 

more online courses.

 

     (e) "Primary district" means the pupil's district of

 

residence.district that enrolls the pupil and reports the pupil as

 

a full-time equated pupil for pupil membership purposes.

 

     (f) "Providing district" means the district, intermediate

 

district, or community college that the primary district pays to

 

provide the online course.

 

     (g) "Teacher of record" means a teacher who holds a valid

 

Michigan teaching certificate; who, if applicable, is endorsed in

 

the subject area and grade of the online course; and is responsible

 

for providing instruction, determining instructional methods for

 

each pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 

evaluating the effects of instruction and support strategies.

 

     Sec. 31a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2015-2016 an

 

amount not to exceed $389,695,500.00 for payments to eligible

 

districts, eligible public school academies, and the education

 

achievement system for the purposes of ensuring that pupils are

 

proficient in reading by the end of grade 3 and that high school

 

graduates are career and college ready and for the purposes under

 

subsections (7) and (8).

 

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

 

achievement system, to be eligible to receive funding under this

 

section, other than funding under subsection (7) or (8), the sum of

 

the district's or public school academy's or the education

 

achievement system's combined state and local revenue per

 

membership pupil in the current state fiscal year, as calculated

 

under section 20, must be less than or equal to the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

     (3) For a district or public school academy that operates

 

grades K to 3, or the education achievement system, to be eligible

 

to receive funding under this section, other than funding under

 

subsection (7) or (8), the district or public school academy, or

 

the education achievement system, must implement, for at least

 

grades K to 3, a multi-tiered system of supports that is an

 

evidence-based model that uses data-driven problem solving to

 

integrate academic and behavioral instruction and that uses

 

intervention delivered to all pupils in varying intensities based

 

on pupil needs. This multi-tiered system of supports must provide

 

at least all of the following essential elements:

 

     (a) Implements effective instruction for all learners.

 

     (b) Intervenes early.

 

     (c) Provides a multi-tiered model of instruction and

 

intervention that provides the following:

 

     (i) A core curriculum and classroom interventions available to

 

all pupils that meet the needs of most pupils.

 

     (ii) Targeted group interventions.

 

     (iii) Intense individual interventions.

 

     (d) Monitors pupil progress to inform instruction.

 

     (e) Uses data to make instructional decisions.

 

     (f) Uses assessments including universal screening,

 

diagnostics, and progress monitoring.

 

     (g) Engages families and the community.

 

     (h) Implements evidence-based, scientifically validated,

 

instruction and intervention.

 

     (i) Implements instruction and intervention practices with

 

fidelity.

 

     (j) Uses a collaborative problem-solving model.

 

     (4) Except as otherwise provided in this subsection, an

 

eligible district or eligible public school academy or the

 

education achievement system shall receive under this section for

 

each membership pupil in the district or public school academy or

 

the education achievement system who met the income eligibility

 

criteria for free breakfast, lunch, or milk, as determined under

 

the Richard B. Russell national school lunch act, 42 USC 1751 to

 

1769, and as reported to the department in the form and manner

 

prescribed by the department not later than the fifth Wednesday

 

after the pupil membership count day of the immediately preceding

 

fiscal year and adjusted not later than December 31 of the

 

immediately preceding fiscal year, an amount per pupil equal to

 

11.5% of the sum of the district's foundation allowance or the

 

public school academy's or the education achievement system's per

 

pupil amount calculated under section 20, not to exceed the basic

 

foundation allowance under section 20 for the current state fiscal

 

year, or of the public school academy's or the education

 

achievement system's per membership pupil amount calculated under

 

section 20 for the current state fiscal year. However, a public

 

school academy that began operations as a public school academy, or

 

an achievement school that began operations as an achievement

 

school, after the pupil membership count day of the immediately

 

preceding school year shall receive under this section for each

 

membership pupil in the public school academy or in the education

 

achievement system who met the income eligibility criteria for free

 

breakfast, lunch, or milk, as determined under the Richard B.

 

Russell national school lunch act and as reported to the department

 

not later than the fifth Wednesday after the pupil membership count

 

day of the current fiscal year and adjusted not later than December

 

31 of the current fiscal year, an amount per pupil equal to 11.5%

 

of the public school academy's or the education achievement

 

system's per membership pupil amount calculated under section 20

 

for the current state fiscal year.

 

     (5) Except as otherwise provided in this section, a district

 

or public school academy, or the education achievement system,

 

receiving funding under this section shall use that money only to

 

provide instructional programs and direct noninstructional

 

services, including, but not limited to, medical, mental health, or

 

counseling services, for at-risk pupils; for school health clinics;

 

and for the purposes of subsection (6), (7), (8), or (11). In

 

addition, a district that is a school district of the first class

 

or a district or public school academy in which at least 50% of the

 

pupils in membership met the income eligibility criteria for free

 

breakfast, lunch, or milk in the immediately preceding state fiscal

 

year, as determined and reported as described in subsection (4), or

 

the education achievement system if it meets this requirement, may

 

use not more than 20% of the funds it receives under this section

 

for school security. A district, the public school academy, or the

 

education achievement system shall not use any of that money for

 

administrative costs. The instruction or direct noninstructional

 

services provided under this section may be conducted before or

 

after regular school hours or by adding extra school days to the

 

school year.

 

     (6) A district or public school academy that receives funds

 

under this section and that operates a school breakfast program

 

under section 1272a of the revised school code, MCL 380.1272a, or

 

the education achievement system if it operates a school breakfast

 

program, shall use from the funds received under this section an

 

amount, not to exceed $10.00 per pupil for whom the district or

 

public school academy or the education achievement system receives

 

funds under this section, necessary to pay for costs associated

 

with the operation of the school breakfast program.

 

     (7) From the funds allocated under subsection (1), there is

 

allocated for 2015-2016 an amount not to exceed $3,557,300.00 to

 

support child and adolescent health centers. These grants shall be

 

awarded for 5 consecutive years beginning with 2003-2004 in a form

 

and manner approved jointly by the department and the department of

 

health and human services. Each grant recipient shall remain in

 

compliance with the terms of the grant award or shall forfeit the

 

grant award for the duration of the 5-year period after the

 

noncompliance. To continue to receive funding for a child and

 

adolescent health center under this section a grant recipient shall

 

ensure that the child and adolescent health center has an advisory

 

committee and that at least one-third of the members of the

 

advisory committee are parents or legal guardians of school-aged

 

children. A child and adolescent health center program shall

 

recognize the role of a child's parents or legal guardian in the

 

physical and emotional well-being of the child. Funding under this

 

subsection shall be used to support child and adolescent health

 

center services provided to children up to age 21. If any funds

 

allocated under this subsection are not used for the purposes of

 

this subsection for the fiscal year in which they are allocated,

 

those unused funds shall be used that fiscal year to avoid or

 

minimize any proration that would otherwise be required under

 

subsection (12) for that fiscal year. In addition to the funds

 

otherwise allocated under this subsection, from the money allocated

 

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

 

$2,000,000.00 for 2015-2016 only for child and adolescent health

 

centers to increase access to nurses and behavioral health services

 

in schools, using 3 existing school clinics as hubs for services

 

and using mobile teams to serve satellite school sites.

 

     (8) From the funds allocated under subsection (1), there is

 

allocated for 2015-2016 an amount not to exceed $5,150,000.00 for

 

the state portion of the hearing and vision screenings as described

 

in section 9301 of the public health code, 1978 PA 368, MCL

 

333.9301. A local public health department shall pay at least 50%

 

of the total cost of the screenings. The frequency of the

 

screenings shall be as required under R 325.13091 to R 325.13096

 

and R 325.3271 to R 325.3276 of the Michigan administrative code.

 

Funds shall be awarded in a form and manner approved jointly by the

 

department and the department of health and human services.

 

Notwithstanding section 17b, payments to eligible entities under

 

this subsection shall be paid on a schedule determined by the

 

department.

 

     (9) Each district or public school academy receiving funds

 

under this section and the education achievement system shall

 

submit to the department by July 15 of each fiscal year a report,

 

not to exceed 10 pages, on the usage by the district or public

 

school academy or the education achievement system of funds under

 

this section, which report shall include a brief description of

 

each program conducted or services performed by the district or

 

public school academy or the education achievement system using

 

funds under this section, the amount of funds under this section

 

allocated to each of those programs or services, the total number

 

of at-risk pupils served by each of those programs or services, and

 

the data necessary for the department and the department of health

 

and human services to verify matching funds for the temporary

 

assistance for needy families program. If a district or public

 

school academy or the education achievement system does not comply

 

with this subsection, the department shall withhold an amount equal

 

to the August payment due under this section until the district or

 

public school academy or the education achievement system complies

 

with this subsection. If the district or public school academy or

 

the education achievement system does not comply with this

 

subsection by the end of the state fiscal year, the withheld funds

 

shall be forfeited to the school aid fund.

 

     (10) In order to receive funds under this section, a district

 

or public school academy or the education achievement system shall

 

allow access for the department or the department's designee to

 

audit all records related to the program for which it receives

 

those funds. The district or public school academy or the education

 

achievement system shall reimburse the state for all disallowances

 

found in the audit.

 

     (11) Subject to subsections (6), (7), and (8), a district may

 

use up to 100% of the funds it receives under this section to

 

implement schoolwide reform in schools with 40% or more of their

 

pupils identified as at-risk pupils by providing supplemental

 

instructional or noninstructional services consistent with the

 

school improvement plan.

 

     (12) If necessary, and before any proration required under

 

section 296, the department shall prorate payments under this

 

section by reducing the amount of the per pupil payment under this

 

section by a dollar amount calculated by determining the amount by

 

which the amount necessary to fully fund the requirements of this

 

section exceeds the maximum amount allocated under this section and

 

then dividing that amount by the total statewide number of pupils

 

who met the income eligibility criteria for free breakfast, lunch,

 

or milk in the immediately preceding fiscal year, as described in

 

subsection (4).

 

     (13) If a district is formed by consolidation after June 1,

 

1995, and if 1 or more of the original districts were not eligible

 

before the consolidation for an additional allowance under this

 

section, the amount of the additional allowance under this section

 

for the consolidated district shall be based on the number of

 

pupils described in subsection (1) enrolled in the consolidated

 

district who reside in the territory of an original district that

 

was eligible before the consolidation for an additional allowance

 

under this section. In addition, if a district is dissolved

 

pursuant to section 12 of the revised school code, MCL 380.12, the

 

intermediate district to which the dissolved school district was

 

constituent shall determine the estimated number of pupils that

 

meet the income eligibility criteria for free breakfast, lunch, or

 

milk, as described under subsection (4), enrolled in each of the

 

other districts within the intermediate district and provide that

 

estimate to the department for the purposes of distributing funds

 

under this section within 60 days after the school district is

 

declared dissolved.

 

     (14) As used in this section, "at-risk pupil" means a pupil

 

for whom the district has documentation that the pupil meets any of

 

the following criteria:

 

     (a) Is a victim of child abuse or neglect.

 

     (b) Is a pregnant teenager or teenage parent.

 

     (c) Has a family history of school failure, incarceration, or

 

substance abuse.

 

     (d) For pupils for whom the results of the state summative

 

assessment have been received, is a pupil who did not achieve

 

proficiency on the English language arts, mathematics, science, or

 

social studies content area assessment.

 

     (e) Is a pupil who is at risk of not meeting the district's

 

core academic curricular objectives in English language arts or

 

mathematics, as demonstrated on local assessments.

 

     (f) The pupil is enrolled in a priority or priority-successor

 

school, as defined in the elementary and secondary education act of

 

2001 flexibility waiver approved by the United States Department of

 

Education.

 

     (g) In the absence of state or local assessment data, the

 

pupil meets at least 2 of the following criteria, as documented in

 

a form and manner approved by the department:

 

     (i) The pupil is eligible for free or reduced price breakfast,

 

lunch, or milk.

 

     (ii) The pupil is absent more than 10% of enrolled days or 10

 

school days during the school year.

 

     (iii) The pupil is homeless.

 

     (iv) The pupil is a migrant.

 

     (v) The pupil is an English language learner.

 

     (vi) The pupil is an immigrant who has immigrated within the

 

immediately preceding 3 years.

 

     (vii) The pupil did not complete high school in 4 years and is

 

still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

     (15) If Beginning in 2018-2019, if a district, public school

 

academy, or the education achievement system does not demonstrate

 

to the satisfaction of the department that at least 50% of at-risk

 

pupils are reading at grade level by the end of grade 3 as measured

 

by the state assessment for the immediately preceding school year

 

and demonstrate to the satisfaction of the department improvement

 

over 3 consecutive each of the 3 immediately preceding school years

 

in the percentage of at-risk pupils that are career- and college-

 

ready as determined by proficiency on the English language arts,

 

mathematics, and science content area assessments on the grade 11

 

summative assessment under section 1279g(2)(a) of the revised

 

school code, MCL 380.1279g, the district, public school academy, or

 

education achievement system shall ensure all of the following:

 

     (a) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at-risk

 

pupils that represents the number of pupils in grade 3 that are not

 

reading at grade level by the end of grade 3, and the district,

 

public school academy, or the education achievement system shall

 

expend that same proportion multiplied by 1/2 of its total at-risk

 

funds under this section on tutoring and other methods of improving

 

grade 3 reading levels.

 

     (b) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at-risk

 

pupils that represent the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on the

 

English language arts, mathematics, and science content area

 

assessments on the grade 11 summative assessment under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

 

district, public school academy, or the education achievement

 

system shall expend that same proportion multiplied by 1/2 of its

 

total at-risk funds under this section on tutoring and other

 

activities to improve scores on the college entrance examination

 

portion of the Michigan merit examination.

 

     (16) As used in subsection (15), "total at-risk pupils" means

 

the sum of the number of pupils in grade 3 that are not reading at

 

grade level by the end of third grade as measured on the state

 

assessment and the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on the

 

English language arts, mathematics, and science content area

 

assessments on the grade 11 summative assessment under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g.

 

     (17) A district or public school academy that receives funds

 

under this section or the education achievement system may use

 

funds received under this section to provide an anti-bullying or

 

crisis intervention program.

 

     (18) The department shall collaborate with the department of

 

health and human services to prioritize assigning Pathways to

 

Potential Success coaches to elementary schools that have a high

 

percentage of pupils in grades K to 3 who are not reading at grade

 

level.

 

     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 $239,275,000.00 $243,600,000.00 for 2015-2016. Funds

 

allocated under this section for great start readiness programs

 

shall be used to provide part-day, school-day, or GSRP/head start

 

blended comprehensive free compensatory classroom programs designed

 

to improve the readiness and subsequent achievement of

 

educationally disadvantaged children who meet the participant

 

eligibility and prioritization guidelines as defined by the

 

department. For a child to be eligible to participate in a program

 

under this section, the child shall be at least 4, but less than 5,

 

years of age as of the date specified for determining a child's

 

eligibility to attend school under section 1147 of the revised

 

school code, MCL 380.1147.

 

     (2) Funds allocated under subsection (1) shall be allocated to

 

intermediate districts or consortia of intermediate districts based

 

on the formula in section 39. An intermediate district or

 

consortium of intermediate districts receiving funding under this

 

section shall act as the fiduciary for the great start readiness

 

programs. In order to be eligible to receive funds allocated under

 

this subsection from an intermediate district or consortium of

 

intermediate districts, a district, a consortium of districts, or a

 

public or private for-profit or nonprofit legal entity or agency

 

shall comply with this section and section 39.

 

     (3) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2015-2016 for a

 

competitive grant to continue a longitudinal evaluation of children

 

who have participated in great start readiness programs.

 

     (4) To be eligible for funding under this section, a program

 

shall prepare children for success in school through comprehensive

 

part-day, school-day, or GSRP/head start blended programs that

 

contain all of the following program components, as determined by

 

the department:

 

     (a) Participation in a collaborative recruitment and

 

enrollment process to assure that each child is enrolled in the

 

program most appropriate to his or her needs and to maximize the

 

use of federal, state, and local funds.

 

     (b) An age-appropriate educational curriculum that is in

 

compliance with the early childhood standards of quality for

 

prekindergarten children adopted by the state board.

 

     (c) Nutritional services for all program participants

 

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.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. A lead teacher must

 

have a valid teaching certificate with an early childhood (ZA or

 

ZS) endorsement or a bachelor's degree in child development or

 

early child development with specialization in preschool teaching.

 

However, if an applicant demonstrates to the department that it is

 

unable to fully comply with this subparagraph after making

 

reasonable efforts to comply, teachers who have significant but

 

incomplete training in early childhood education or child

 

development may be used if the applicant provides to the

 

department, and the department approves, a plan for each teacher to

 

come into compliance with the standards in this subparagraph. A

 

teacher's compliance plan must be completed within 2 years of the

 

date of employment. Progress toward completion of the compliance

 

plan shall consist of at least 2 courses per calendar year.

 

     (ii) Paraprofessionals possessing proper training in early

 

childhood development, including an associate's degree in early

 

childhood education or child development or the equivalent, or a

 

child development associate (CDA) credential. However, if an

 

applicant demonstrates to the department that it is unable to fully

 

comply with this subparagraph after making reasonable efforts to

 

comply, the applicant may use paraprofessionals who have completed

 

at least 1 course that earns college credit in early childhood

 

education or child development if the applicant provides to the

 

department, and the department approves, a plan for each

 

paraprofessional to come into compliance with the standards in this

 

subparagraph. A paraprofessional's compliance plan must be

 

completed within 2 years of the date of employment. Progress toward

 

completion of the compliance plan shall consist of at least 2

 

courses or 60 clock hours of training per calendar year.

 

     (d) Include a program budget that contains only those costs

 

that are not reimbursed or reimbursable by federal funding, that

 

are clearly and directly attributable to the great start readiness

 

program, and that would not be incurred if the program were not

 

being offered. Eligible costs include transportation costs. The

 

program budget shall indicate the extent to which these funds will

 

supplement other federal, state, local, or private funds. Funds

 

received under this section shall not be used to supplant any

 

federal funds received by the applicant to serve children eligible

 

for a federally funded preschool program that has the capacity to

 

serve those children.

 

     (6) For a grant recipient that enrolls pupils in a school-day

 

program funded under this section, each child enrolled in the

 

school-day program shall be counted as 2 children served by the

 

program for purposes of determining the number of children to be

 

served and for determining the amount of the grant award. A grant

 

award shall not be increased solely on the basis of providing a

 

school-day program.

 

     (7) For a grant recipient that enrolls pupils in a GSRP/head

 

start blended program, the grant recipient shall ensure that all

 

head start and GSRP policies and regulations are applied to the

 

blended slots, with adherence to the highest standard from either

 

program, to the extent allowable under federal law.

 

     (8) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall designate an

 

early childhood coordinator, and may provide services directly or

 

may contract with 1 or more districts or public or private for-

 

profit or nonprofit providers that meet all requirements of

 

subsection (4).

 

     (9) Funds received under this section may be retained for

 

administrative services as follows:

 

     (a) For the portion of the total grant amount for which

 

services are provided directly by an intermediate district or

 

consortium of intermediate districts, the intermediate district or

 

consortium of intermediate districts may retain an amount equal to

 

not more than 7% of that portion of the grant amount.

 

     (b) For the portion of the total grant amount for which

 

services are contracted, the intermediate district or consortium of

 

intermediate districts receiving the grant may retain an amount

 

equal to not more than 4% 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 4% 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.

 

     (c) The intermediate district or consortium provided to the

 

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.

 

     (c) Ensure that all intermediate district, district, community

 

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) 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 health

 

and 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.

 

     (c) "School-day program" means a program that operates for at

 

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) 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,

 

2015, a program funded under this section that provides

 

transportation shall submit to the intermediate district that is

 

the fiscal agent for the program a projected transportation budget.

 

The amount of the reimbursement for transportation under this

 

subsection shall be no more than 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. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $25,000,000.00 for 2015-2016 for

 

adult education programs authorized under this section. Except as

 

otherwise provided under subsections (16) and (18), 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, an eligible

 

adult education provider shall employ certificated teachers and

 

qualified administrative staff and shall offer continuing education

 

opportunities for teachers to allow them to maintain certification.

 

     (3) To be eligible to be a participant funded under this

 

section, an individual 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, 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.

 

     (ii) Is enrolled in an English as a second language program.

 

     (iii) Is enrolled in a high school completion program.

 

     (iv) Is at least 20 years of age on September 1 of the school

 

year, is enrolled in an adult basic education program, and is

 

determined by a department-approved assessment, in a form and

 

manner prescribed by the department, to be below grade 9 level in

 

reading or mathematics, or both.

 

     (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) By April 1 of each fiscal year, the intermediate districts

 

within a prosperity region or subregion shall determine which

 

intermediate district will serve as the prosperity region's or

 

subregion's fiscal agent for the next fiscal year and shall notify

 

the department in a form and manner determined by the department.

 

The department shall approve or disapprove of the prosperity

 

region's or subregion's selected fiscal agent. 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

 

prosperity regions or subregions 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. Beginning in 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 or subregion in 2013-2014, and 33% shall be

 

allocated based on the factors in subdivisions (a), (b), and (c).

 

For 2016-2017, 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). Beginning in 2017-2018, 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 or

 

subregions, as reported by the most recent 5-year estimates from

 

the American community survey (ACS) from the United States Census

 

Bureau.

 

     (b) Thirty-five percent of this portion of the funding shall

 

be distributed based upon the proportion of the state population of

 

individuals age 25 or older who are not high school graduates that

 

resides in each of the prosperity regions or subregions, as

 

reported by the most recent 5-year estimates from the American

 

community survey (ACS) from the United States Census Bureau.

 

     (c) Five percent of this portion of the funding shall be

 

distributed based upon the proportion of the state population of

 

individuals age 18 or older who lack basic English language

 

proficiency that resides in each of the prosperity regions or

 

subregions, as reported by the most recent 5-year estimates from

 

the American community survey (ACS) from the United States Census

 

Bureau.

 

     (5) To be an eligible fiscal agent, an intermediate district

 

must agree to do the following in a form and manner determined by

 

the department:

 

     (a) Distribute funds to adult education programs in a

 

prosperity region or subregion as described in this section.

 

     (b) Collaborate with the talent district career council, which

 

is an advisory council of the workforce development boards located

 

in the prosperity region or subregion, or its successor, to develop

 

a regional strategy that aligns adult education programs and

 

services into an efficient and effective delivery system for adult

 

education learners, with special consideration for providing

 

contextualized learning and career pathways.

 

     (c) Collaborate with the talent district career council, which

 

is an advisory council of the workforce development boards located

 

in the prosperity region or subregion, or its successor, 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, past performance, quality

 

indicators as identified by the department, and cost to provide

 

instructional services. The fiscal agent shall determine all local

 

processes, criteria, and provider determinations. However, the

 

local processes, criteria, and provider services must be approved

 

by the department before funds may be distributed to the fiscal

 

agent.

 

     (d) Provide oversight to its adult education providers

 

throughout the program year to ensure compliance with the

 

requirements of this section.

 

     (e) 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.

 

     (c) A participant in an adult basic education program is

 

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.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

     (i) The participant obtains the G.E.D.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments used to determine readiness to take

 

the G.E.D. test after having completed at least 450 hours of

 

instruction.

 

     (9) A high school completion program operated on a year-round

 

or school year basis may be funded under this section, subject to

 

all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) for a participant in a course offered under this

 

subsection until 1 of the following occurs:

 

     (i) The participant passes the course and earns a high school

 

diploma.

 

     (ii) The participant fails to earn credit in 2 successive

 

semesters or terms in which the participant is enrolled after

 

having completed at least 900 hours of instruction.

 

     (10) A job- or employment-related adult education program

 

operated on a year-round or school year basis may be funded under

 

this section, subject to all of the following:

 

     (a) The program enrolls adults referred by their employer who

 

are less than 20 years of age, have a high school diploma, are

 

determined to be in need of remedial mathematics or communication

 

arts skills, and are not attending an institution of higher

 

education.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the department-approved assessment policy.

 

     (c) An individual may be enrolled in this program and the

 

grant recipient shall receive funding according to subsection (11)

 

until 1 of the following occurs:

 

     (i) The individual achieves the requisite skills as determined

 

by department-approved assessment instruments.

 

     (ii) The individual fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (11) A funding recipient shall receive payments under this

 

section in accordance with the following:

 

     (a) Eighty percent for enrollment of eligible participants.

 

     (b) Twenty 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, as determined by the department; for

 

obtaining a G.E.D. or passage of 1 or more individual G.E.D. tests;

 

for attainment of a high school diploma or passage of a course

 

required for a participant to attain a high school diploma; for

 

enrollment in a postsecondary institution, or for entry into or

 

retention of employment, as applicable.

 

     (12) A person who is not eligible to be a participant funded

 

under this section may receive adult education services upon the

 

payment of tuition. In addition, a person who is not eligible to be

 

served in a program under this section due to the program

 

limitations specified in subsection (7), (8), (9), or (10) may

 

continue to receive adult education services in that program upon

 

the payment of tuition. The tuition level shall be determined by

 

the local or intermediate district conducting the program.

 

     (13) An individual who is an inmate in a state correctional

 

facility shall not be counted as a participant under this section.

 

     (14) A funding recipient shall not commingle money received

 

under this section or from another source for adult education

 

purposes with any other funds and shall establish a separate ledger

 

account for funds received under this section. This subsection does

 

not prohibit a district from using general funds of the district to

 

support an adult education or community education program.

 

     (15) A funding recipient receiving funds under this section

 

may establish a sliding scale of tuition rates based upon a

 

participant's family income. A funding recipient may charge a

 

participant tuition to receive adult education services under this

 

section from that sliding scale of tuition rates on a uniform

 

basis. The amount of tuition charged per participant shall not

 

exceed the actual operating cost per participant minus any funds

 

received under this section per participant. A funding recipient

 

may not charge a participant tuition under this section if the

 

participant's income is at or below 200% of the federal poverty

 

guidelines published by the United States Department of Health and

 

Human Services.

 

     (16) In order to receive funds under this section, a funding

 

recipient shall furnish to the department, in a form and manner

 

determined by the department, all information needed to administer

 

this program and meet federal reporting requirements; shall allow

 

the department or the department's designee to review all records

 

related to the program for which it receives funds; and shall

 

reimburse the state for all disallowances found in the review, as

 

determined by the department. In addition, a funding recipient

 

shall agree to pay to a career and technical education program

 

under section 61a the amount of funding received under this section

 

in the proportion of career and technical education coursework used

 

to satisfy adult basic education programming, as billed to the

 

funding recipient by programs operating under section 61a.

 

     (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) From the amount appropriated in subsection (1), an amount

 

not to exceed $500,000.00 shall be allocated for 2015-2016 to not

 

more than 1 pilot program that is located in a prosperity region

 

with 2 or more subregions and that connects adult education

 

participants directly with employers by linking adult education,

 

career and technical skills, and workforce development. To be

 

eligible for funding under this subsection, a pilot program shall

 

provide a collaboration linking adult education programs within the

 

county, the area career/technical center, and local employers, and

 

shall meet the additional criteria in subsections (19) and (20).

 

Funding under this subsection for 2015-2016 is for the first of 3

 

years of funding.

 

     (19) A pilot program funded under subsection (18) shall

 

require adult education staff to work with Michigan Works! to

 

identify a cohort of participants who are most prepared to

 

successfully enter the workforce. Participants identified under

 

this subsection shall be dually enrolled in adult education

 

programming and at least 1 technical course at the area

 

career/technical center.

 

     (20) A pilot program funded under subsection (18) shall have

 

on staff an adult education navigator who will serve as a

 

caseworker for each participant identified under subsection (19).

 

The navigator shall work with adult education staff and potential

 

employers to design an educational program best suited to the

 

personal and employment needs of the participant, and shall work

 

with human service agencies or other entities to address any

 

barrier in the way of participant access.

 

     (21) Not later than December 1, 2016, the pilot program funded

 

under subsection (18) shall provide to the senate and house

 

appropriations subcommittees on school aid and to the senate and

 

house fiscal agencies a report detailing number of participants,

 

graduation rates, and a measure of transitioning to employment.

 

     (22) The department shall develop an application process for a

 

pilot program to be funded under subsection (18) and shall award

 

funding not later than November 1, 2015. Funding allocated under

 

subsection (18) may be paid on a schedule other than that specified

 

under section 17b.

 

     (23) As used in this section:

 

     (a) "Career pathway" means a combination of rigorous and high-

 

quality education, training, and other services that comply with

 

all of the following:

 

     (i) Aligns with the skill needs of industries in the economy

 

of this state or in the regional economy involved.

 

     (ii) Prepares an individual to be successful in any of a full

 

range of secondary or postsecondary education options, including

 

apprenticeships registered under the act of August 16, 1937

 

(commonly known as the "national apprenticeship act"), 29 USC 50 et

 

seq.

 

     (iii) Includes counseling to support an individual in

 

achieving the individual's education and career goals.

 

     (iv) Includes, as appropriate, education offered concurrently

 

with and in the same context as workforce preparation activities

 

and training for a specific occupation or occupational cluster.

 

     (v) Organizes education, training, and other services to meet

 

the particular needs of an individual in a manner that accelerates

 

the educational and career advancement of the individual to the

 

extent practicable.

 

     (vi) Enables an individual to attain a secondary school

 

diploma or its recognized equivalent, and at least 1 recognized

 

postsecondary credential.

 

     (vii) Helps an individual enter or advance within a specific

 

occupation or occupational cluster.

 

     (b) "Department" means the department of talent and economic

 

development.

 

     (c) "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.

 

     (d) "Participant" means the sum of the number of full-time

 

equated individuals enrolled in and attending a department-approved

 

adult education program under this section, using quarterly

 

participant count days on the schedule described in section

 

6(7)(b).

 

     Enacting section 1. In accordance with section 30 of article

 

IX of the state constitution of 1963, total state spending from

 

state sources on state school aid under article I of the state

 

school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as

 

amended by 2015 PA 85 and this amendatory act for fiscal year 2015-

 

2016 is estimated at $12,124,885,100.00 and state appropriations

 

for school aid to be paid to local units of government for fiscal

 

year 2015-2016 are estimated at $11,967,255,600.00.

 

     Enacting section 2. This amendatory act takes effect October

 

1, 2015.