HOUSE BILL No. 6220
June 12, 2018, Introduced by Reps. Pagan, Hoadley, Camilleri, Chang, Garrett, Geiss, Love, Hammoud and Jones and referred to the Committee on Education Reform.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 705 (MCL 380.705), as amended by 2018 PA 23.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 705. (1) Beginning in 1997, and in each year after 1997,
a regional enhancement property tax may be levied by an
intermediate school district at a rate not to exceed 3 mills to
enhance other state and local funding for intermediate school
district, school district, or public school academy operations, as
provided in this section, if approved by a majority of the
intermediate school electors voting on the question.
(2) If a resolution requesting that the question of a regional
enhancement property tax be submitted to the voters is adopted
within a 180-day period and transmitted to the intermediate school
board by 1 or more boards or boards of directors of its constituent
districts representing a majority of the combined membership of the
constituent districts as of the most recent pupil membership count
day and if those resolutions all contain an identical specified
number of mills to be levied under this section and an identical
specified number of years for which the tax shall be levied, the
question of levying a regional enhancement property tax by the
intermediate school district shall be placed on the ballot by the
intermediate school district at the next regular school election
held in each of the constituent districts that are school
districts. If the question is to be submitted to the intermediate
school electors of an intermediate school district having a
population of more than 1,400,000, the intermediate school board
shall call a special election to be held at the next state primary
or general election. If the resolution requirement is met more than
180 days before the next regular school district elections, and if
requested in the resolutions, the intermediate school board shall
submit the question of levying a regional enhancement property tax
within the intermediate school district on the ballot at a special
election called by the intermediate school board for that purpose
not earlier than 90 days after the resolution requirements are met.
(3) Not later than 10 days after receipt by the intermediate
school district of the revenue from the regional enhancement
property tax, the intermediate school district shall calculate and
pay to each of its constituent districts an amount of the revenue
calculated by dividing the total amount of the revenue by the
combined membership of the constituent districts within the
intermediate school district, as of the most recent pupil
membership count day, and multiplying that quotient by the
constituent district's membership, as of the most recent pupil
membership count day for which a final department-audited pupil
count is available. If a constituent district has entered into an
agreement with a school district or public entity to perform the
functions and responsibilities of the constituent district for
operating a public school of the constituent district, then for the
purposes of this subsection the pupils in membership in that public
school shall be considered to be in membership in the constituent
district and a proportionate share of the revenue payable to the
constituent district under this section shall be transferred by the
constituent district to the school district or public entity
performing the functions and responsibilities of the constituent
district for operating the public school. The proportionate share
of that revenue to be paid to that school district or public entity
shall be determined according to the percentage of the constituent
district's membership that is enrolled in the particular public
school for the state fiscal year corresponding to the tax year.
Revenue from a regional enhancement property tax under this section
shall not be allocated or paid to a constituent district that does
not operate a public school directly but retains a limited separate
identity for purposes of section 12, 12b, 863, 903, or 947.
(4) If a public school academy is receiving revenue from a
regional enhancement property tax under an agreement described in
subsection (3), the public school academy shall receive that
revenue until the term of the initially levied regional enhancement
property tax expires, as specified in the ballot question, as long
as the receipt of that revenue remains consistent with the
agreement. After the term of the initially levied regional
enhancement property tax expires or the public school academy is no
longer entitled to receive revenue from the regional enhancement
property tax under the agreement described in subsection (3), the
public school academy shall not receive revenue from any regional
enhancement property tax that is subsequently levied or renewed
unless that public school academy meets the requirements of
subsection (7) to receive revenue from a regional enhancement
property tax as a constituent district.
(5) Regional enhancement property tax under this section may
be levied for a term not to exceed 20 years, as specified in the
ballot question, and may be renewed for the same term and for the
purposes described in subsection (1) with the approval of a
majority of the intermediate school electors voting on the
question.
(6) The question of levying a regional enhancement property
tax under this section shall be presented to the intermediate
school electors as a separate question.
(7) For the purposes of this section, except as otherwise
provided in this section, a public school academy is considered to
be a single constituent district of an intermediate school district
if the public school academy operates at least 1 site that is
located in that intermediate school district and the public school
academy counts in membership pupils enrolled at the site or sites
located in that intermediate school district on the pupil
membership count day used to calculate the combined membership of
the intermediate school district's constituent districts under
subsection (2). A public school academy that is a school of
excellence operating as a cyber school, as defined in section 551,
is considered to be a single constituent district of an
intermediate school district only if the administrative office of
that cyber school is located within the intermediate school
district, 100% of the pupils enrolled in the cyber school reside
within the intermediate school district, and the cyber school
counts in membership pupils enrolled in the cyber school on the
pupil membership count day used to calculate the combined
membership of the intermediate school district's constituent
districts under subsection (2). However, a public school academy is
not eligible to be considered a constituent district under this
subsection if the public school academy's 2 most recent annual
financial audits required under section 503(6)(g), 523(2)(g),
553(5)(g), or 1311e(5)(h) indicate successive unresolved material
findings. In addition, in order to be considered a constituent
district under this subsection, the public school academy must
provide the department documentation establishing that the public
school academy has a special education program that is in
compliance with state and federal law. Beginning on the effective
date of the amendatory act that added this sentence, a public
school academy is not eligible to be considered a constituent
district under this subsection if the public school academy is a
party to a management agreement with an educational management
organization that is a for-profit entity.
(8) Except for a school of excellence operating as a cyber
school, as defined in section 551, a public school academy that
receives revenue from a regional enhancement property tax due to
the operation of subsection (7) shall use that money only for
expenditures that directly benefit a site operated by the public
school academy that is located in the intermediate school district
in which the regional enhancement property tax was approved.
(9) For a regional enhancement property tax that was initially
authorized and levied before the effective date of the amendatory
act that added this subsection, May 15, 2018, both of the following
apply:
(a) Subject to subsection (4), a public school academy is not
eligible to be considered a constituent district and to receive
revenue from that regional enhancement property tax due to the
operation of subsection (7) until that regional enhancement
property tax is renewed.
(b) An intermediate school district is not eligible to be
considered a constituent district and to receive revenue for pupils
counted in membership by the intermediate school district from that
regional enhancement property tax due to the operation of
subsection (10) until that regional enhancement property tax is
renewed.
(10) For a regional enhancement property tax that is initially
authorized and levied or renewed after the effective date of the
amendatory act that added this subsection, May 15, 2018, for the
purposes of this section, an intermediate school district is
considered to be a single constituent district of the intermediate
school district if it enrolls pupils who are counted in membership
by the intermediate school district and not counted in membership
by another intermediate school district, school district, or public
school academy.
(11) As used in this section:
(a) "Educational management organization" means an entity that
enters into a management agreement with a public school academy.
(b) "Management agreement" means an agreement to provide
comprehensive educational, administrative, management, or
instructional services or staff to a public school academy.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.