HB 4060

HOUSE BILL NO. 4060
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 681 and 684 (MCL 380.681 and
380.684), section 681 as amended by 2016 PA 532 and section 684 as amended by
2016 PA 535.
the people of the state of michigan enact:
Sec. 681. (1) An intermediate school district may
establish an area career and technical education program and operate the
program under sections 681 to 690 if approved by a majority of the intermediate
school electors of the intermediate school district voting on the question. The
election shall must
be called and conducted in accordance with this act and the Michigan
election law. The establishment of the area career and technical education
program may be rescinded by the same process.
(2) The question of
establishing an area career and technical education program may be submitted to
the intermediate school electors of an intermediate school district at a
regular school election or at a special election held in each of the
constituent districts. Subject to section 641 of the Michigan election law, MCL
168.641, the intermediate school board shall determine the date of the election
and shall give notice to the school district filing official at least 60 days
in advance of the date the ballot question is to be submitted to the
intermediate school electors.
(3) The ballot for
referring the question of adopting sections 681 to 690 and establishing an area
career and technical education program to the intermediate school electors of
an intermediate school district shall must be substantially in the following form:
"Shall
____________ (legal name of intermediate school district), state of Michigan,
come under sections 681 to 690 of the revised school code and establish an area
career and technical education program which is designed to encourage the
operation of area career and technical education programs if the annual
property tax levied for this purpose is limited to ______ mills?
Yes ( )
No ( )".
(4) Beginning in 1995, and subject Subject to section 625b, the number of mills of ad
valorem property taxes an intermediate school board may levy for area career
and technical education program operating purposes under sections 681 to 690 is
limited to the following:
(a) If the
intermediate school district did not levy any millage in 1993 for area career
and technical education program operating purposes under sections 681 to 690,
the intermediate school board, with the approval of the intermediate school
electors, may levy not more than 1 mill for those purposes.
(b) If the
intermediate school district levied millage in 1993 for area career and
technical education program operating purposes under sections 681 to 690, the
intermediate school board, with the approval of the intermediate school
electors, may levy mills for those purposes at a rate not to exceed 1.5 times
the number of mills authorized for those purposes in the intermediate school
district in 1993. Approval of the intermediate school electors is not required
for the levy under this subdivision of previously authorized mills until that
authorization expires.
(5) An intermediate
school district that levies a tax for area career and technical education
program operating purposes shall not use proceeds from the tax for any purpose
other than area career and technical education program operating purposes and
shall submit to the department of treasury a copy of the audit report from the
audit of the intermediate school district conducted under section 622a. Beginning with school years starting after the effective
date of the amendatory act that added this sentence, area career and technical
education program operating purposes, as described in subsection (7), include,
but are not limited to, an intermediate school district's contracting with
another intermediate school district for the operation of the career and
technical education program. If the department of treasury determines
from the audit report that the proceeds from the tax have been used for a
purpose other than area career and technical education program operating
purposes, as defined under described in subsection (7), the department of
treasury shall notify the intermediate school district of that determination.
If the intermediate school district disputes the determination or claims that
the situation has been corrected, within 15 days after receipt of the
determination the intermediate school district may submit an appeal of the determination
to the department of treasury. Within 90 days after receipt of the appeal, the
department of treasury shall consider the appeal and make a determination of
whether the initial determination was correct or incorrect and of whether the
situation has been corrected. If the department of treasury finds that the
initial determination was correct and that the situation has not been
corrected, then the department of treasury shall file a copy of the report with
the attorney general. The attorney general shall review the report and, if the
attorney general considers it appropriate, shall commence or direct the
prosecuting attorney for the county in which the violations occurred to
commence appropriate proceedings against the intermediate school board or the
official or employee. These proceedings shall must include at least a civil action in a court of
competent jurisdiction for the recovery of any public money determined by the
audit to have been illegally expended and for the recovery of any public
property determined by the audit to have been converted or misappropriated.
(6) If the attorney
general determines from a report filed under subsection (5) that an
intermediate school district has misspent tax proceeds as described in
subsection (5) and notifies the intermediate school district of this
determination, the intermediate school district shall repay to its area career
and technical education program operating fund an amount equal to the amount
the department of treasury determined under subsection (5) has been used for a
purpose other than area career and technical education program operating
purposes. The intermediate school district shall make this repayment from funds
of the intermediate school district that lawfully may be used for making such a
repayment.
(7) For the
purposes of subsections (5) and (6), not later than January 1, 2008, the
department and the department of treasury, in consultation with intermediate
school districts, shall develop and make available to intermediate school
districts a definition of area career and technical education program operating
purposes. Beginning with school years starting after
the effective date of the amendatory act that added this sentence, area career
and technical education program operating purposes, as described in this
subsection, include, but are not limited to, an intermediate school district's
contracting with another intermediate school district for the operation of the
career and technical education program.
(8) An intermediate
school district shall not hold more than 2 elections in a calendar year
concerning the authorization of a millage rate for area career and technical
education program operating purposes under sections 681 to 690.
(9) Within 30 days
after receiving the audit results, an intermediate school district shall
publish the results of any audit conducted concerning the area career and
technical education program on the intermediate school district's website. The
results shall must remain
posted on the website for at least 6 months.
(10) The state
board is the sole agency responsible for the supervision and administration of
career and technical education in this state with authority to accept federal
funding for career and technical education and with the responsibility to
administer the requirements for career and technical education under federal
and state law.
Sec. 684. (1) An intermediate school board in which an
area career and technical education program has been established may operate
area career and technical education programs or may contract partially or entirely with local school districts,
with other intermediate school districts within or outside of the service area designated
by the department for the operation of the area career and technical education
program, or with community colleges for the operation of the programs or
with a private degree-granting postsecondary institution if the intermediate
school district is not within a community college district. and if there existed on
or before July 1, 1992 a written agreement for the operation of such a program.
Area career and technical education programs operated under sections 681
to 690 shall must be
submitted for review of the representatives of the constituent districts of the
intermediate school district at an annual budget review meeting held on or
before June 1 under section 624.
(2) An intermediate
school board may expend area career and technical education funds for the
operation of area career and technical education programs for instructional,
support, and administrative costs associated with providing career and
technical education activities, including, but not limited to, staff salaries,
wages, and benefits for career and technical education programs only;
information and awareness activities; acquisition and rental of real property;
construction of buildings; acquisition of equipment and supplies; and
maintenance, repair, and replacement of buildings, lands, equipment, and
supplies. An intermediate school board shall not expend area career and
technical education funds for purposes other than those set forth in sections
681 to 690. An intermediate school board must obtain state approval to use
state or federal career and technical education funds. Expenditure of
vocational education millage revenue for the purposes allowed under this
subsection shall must
be determined by the intermediate school board. However, if the millage
revenue is commingled with state or federal funds, then the intermediate school
district must obtain state approval to use the commingled funds. If an audit by
or on behalf of the department determines that an intermediate school board has
expended area career and technical education funds for a purpose other than
those set forth in sections 681 to 690, the intermediate school district is
subject to the measures under section 681(5) and (6).
(3) The
intermediate school board shall ensure that all of the following are met:
(a) The
intermediate school board shall notify the department at the time the area
career and technical education program is established.
(b) In order to To be
responsive to local workforce needs, emerging technologies, and local demand
occupations, the intermediate school district shall establish a program advisory
committee pursuant to administrative guidelines established by the office of
career and technical preparation within the department. At least a majority of
the members of the program advisory committee shall be representatives from
business and industry.
(c) The program shall must collect
career and technical education information data and distribute that data to the
appropriate state department or departments and to the program advisory
committee. For the purposes of this subdivision, the department or CEPI shall
only require an intermediate school district to report information that is not
already available from the financial information database maintained by CEPI.
(d) The
intermediate school district shall submit its career and technical education
plan to the department in the form and manner prescribed by the department. For
the purposes of this subdivision, the department or CEPI shall only require an
intermediate school district to report information that is not already
available from the financial information database maintained by CEPI.
(4) The department
may monitor career and technical education programs funded with state or
federal funding based upon on feedback from the program advisory committee and
predetermined state or federal skills standards that include student outcomes.
(5) The department,
in consultation with the appropriate career and technical education
professionals, shall develop a process for expedited state approval of programs
that recognize local workforce needs, emerging technologies, and local demand
occupations.
(6) If there is a
community college that offers career and technical preparation programs within
the intermediate school district, the intermediate school board shall
collaborate with the community college to minimize duplication of programs.
(7) An area career
and technical education program shall must allow participation by public school academy and
nonpublic school pupils to the same extent as pupils of constituent districts.
(8) An intermediate
school board operating under sections 681 to 690 may expend funds received
under section 683 for the costs of a special election held to renew or increase
the millage limit on the annual property tax levied for area career and technical
education purposes.
(9) The treasurer
of an intermediate school board shall pay out area career and technical
education funds on order of the intermediate school board.
(10) As used in
this section, "CEPI" means the center for educational performance and
information created in section 94a of the state school aid act of 1979, MCL
388.1694a.