Education: other; public innovative programs; provide for. Amends secs. 6, 18 & 101 of 1979 PA 94 (MCL 388.1606 et seq.). TIE BAR WITH: HB 5983'26

HB-5984, As Passed House, June 17, 2026

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SUBSTITUTE FOR
HOUSE BILL NO. 5984
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 6, 18, and 101 (MCL 388.1606, 388.1618, and
388.1701), sections 6 and 18 as amended by 2025 PA 15 and section
101 as amended by 2026 PA 15.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) "Center program" means a program operated by a 1
district or by an intermediate district for special education 2
pupils from several districts in programs for pupils with autism 3
spectrum disorder, pupils with severe cognitive impairment, pupils 4
with moderate cognitive impairment, pupils with severe multiple 5
impairments, pupils with hearing impairment, pupils with visual 6
impairment, and pupils with physical impairment or other health 7
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impairment. Programs for pupils with emotional impairment housed in 1
buildings that do not serve regular education pupils also qualify. 2
Unless otherwise approved by the department, a center program 3
either serves all constituent districts within an intermediate 4
district or serves several districts with less than 50% of the 5
pupils residing in the operating district. In addition, special 6
education center program pupils placed part-time in noncenter 7
programs to comply with the least restrictive environment 8
provisions of section 1412 of the individuals with disabilities 9
education act, 20 USC 1412, may be considered center program pupils 10
for pupil accounting purposes for the time scheduled in either a 11
center program or a noncenter program. 12
(2) "District and high school graduation rate" means the 13
annual completion and pupil dropout rate that is calculated by the 14
center pursuant to nationally recognized standards. 15
(3) "District and high school graduation report" means a 16
report of the number of pupils, excluding adult education 17
participants, in the district for the immediately preceding school 18
year, adjusted for those pupils who have transferred into or out of 19
the district or high school, who leave high school with a diploma 20
or other credential of equal status. 21
(4) "Membership", except as otherwise provided in this 22
article, means for a district, a public school academy, or an 23
intermediate district the sum of the product of .90 times the 24
number of full-time equated pupils in grades K to 12 actually 25
enrolled and in regular daily attendance in the district, public 26
school academy, or intermediate district on the pupil membership 27
count day for the current school year, plus the product of .10 28
times the final audited count from the supplemental count day of 29
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full-time equated pupils in grades K to 12 actually enrolled and in 1
regular daily attendance in the district, public school academy, or 2
intermediate district for the immediately preceding school year. A 3
district's, public school academy's, or intermediate district's 4
membership is adjusted as provided under section 25e for pupils who 5
enroll after the pupil membership count day in a strict discipline 6
academy operating under sections 1311b to 1311m of the revised 7
school code, MCL 380.1311b to 380.1311m. All pupil counts used in 8
this subsection are as determined by the department and calculated 9
by adding the number of pupils registered for attendance plus 10
pupils received by transfer and minus pupils lost as defined by 11
rules promulgated by the superintendent, and as corrected by a 12
subsequent department audit. The amount of the foundation allowance 13
for a pupil in membership is determined under section 20. In making 14
the calculation of membership, all of the following, as applicable, 15
apply to determining the membership of a district, a public school 16
academy, or an intermediate district: 17
(a) Except as otherwise provided in this subsection, and 18
pursuant to subsection (6), a pupil is counted in membership in the 19
pupil's educating district or districts. Except as otherwise 20
provided in this subsection, an individual pupil must not be 21
counted for more than a total of 1.0 full-time equated membership. 22
(b) If a pupil is educated in a district other than the 23
pupil's district of residence, if the pupil is not being educated 24
as part of a cooperative education program, if the pupil's district 25
of residence does not give the educating district its approval to 26
count the pupil in membership in the educating district, and if the 27
pupil is not covered by an exception specified in subsection (6) to 28
the requirement that the educating district must have the approval 29
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of the pupil's district of residence to count the pupil in 1
membership, the pupil is not counted in membership in any district. 2
(c) A special education pupil educated by the intermediate 3
district is counted in membership in the intermediate district. 4
(d) A pupil placed by a court or state agency in an on-grounds 5
program of a juvenile detention facility, a child caring 6
institution, or a mental health institution, or a pupil funded 7
under section 53a, is counted in membership in the district or 8
intermediate district approved by the department to operate the 9
program. 10
(e) A pupil enrolled in the Michigan Schools for the Deaf and 11
Blind is counted in membership in the pupil's intermediate district 12
of residence. 13
(f) A pupil enrolled in a career and technical education 14
program supported by a millage levied over an area larger than a 15
single district or in an area vocational-technical education 16
program established under section 690 of the revised school code, 17
MCL 380.690, is counted in membership only in the pupil's district 18
of residence. 19
(g) A pupil enrolled in a public school academy is counted in 20
membership in the public school academy. 21
(h) For the purposes of this section and section 6a, for a 22
cyber school, as that term is defined in section 551 of the revised 23
school code, MCL 380.551, that is in compliance with section 553a 24
of the revised school code, MCL 380.553a, a pupil's participation 25
in the cyber school's educational program is considered regular 26
daily attendance, and for a district or public school academy, a 27
pupil's participation in a virtual course as that term is defined 28
in section 21f is considered regular daily attendance. Beginning 29
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July 1, 2021, this subdivision is subject to section 8c. It is the 1
intent of the legislature that the immediately preceding sentence 2
apply retroactively and is effective July 1, 2021. For the purposes 3
of this subdivision, for a pupil enrolled in a cyber school, all of 4
the following apply with regard to the participation requirement as 5
described in this subdivision: 6
(i) Except as otherwise provided in this subdivision, the pupil 7
shall participate in each scheduled course on pupil membership 8
count day or supplemental count day, as applicable. If the pupil is 9
absent on pupil membership count day or supplemental count day, as 10
applicable, the pupil must attend and participate in class during 11
the next 10 consecutive school days if the absence was unexcused, 12
or during the next 30 calendar days if the absence was excused. 13
(ii) For a pupil who is not learning sequentially, 1 or more of 14
the following must be met on pupil membership count day or 15
supplemental count day, as applicable, for each scheduled course to 16
satisfy the participation requirement under this subdivision: 17
(A) The pupil attended a live lesson from the teacher. 18
(B) The pupil logged into a lesson or lesson activity and the 19
login can be documented. 20
(C) The pupil and teacher engaged in a subject-oriented 21
telephone conversation. 22
(D) There is documentation of an email dialogue between the 23
pupil and teacher. 24
(E) There is documentation of activity or work between the 25
learning coach and pupil. 26
(F) An alternate form of attendance as determined and agreed 27
upon by the cyber school and the pupil membership auditor was met. 28
(iii) For a pupil using sequential learning, the participation 29
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requirement under this subdivision is satisfied if either of the 1
following occurs: 2
(A) Except as otherwise provided in this sub-subparagraph, the 3
pupil and the teacher of record or mentor complete a 2-way 4
interaction for 1 course during the week on which pupil membership 5
count day or supplemental count day, as applicable, occurs, and the 6
3 consecutive weeks following that week. However, if a school break 7
is scheduled during any of the weeks described in this sub-8
subparagraph that is 4 or more days in length or instruction has 9
been canceled districtwide during any of the weeks described in 10
this sub-subparagraph for 3 or more school days, the district is 11
not required to ensure that the pupil and the teacher of record or 12
mentor completed a 2-way interaction for that week. As used in this 13
sub-subparagraph: 14
(I) "2-way interaction" means the communication that occurs 15
between the teacher of record or mentor and pupil, where 1 party 16
initiates communication and a response from the other party follows 17
that communication. Responses as described in this sub-sub-18
subparagraph must be to the communication initiated by the teacher 19
of record or mentor, and not some other action taken. This 20
interaction may occur through, but is not limited to, means such as 21
email, telephone, instant messaging, or face-to-face conversation. 22
A parent- or legal-guardian-facilitated 2-way interaction is 23
considered a 2-way interaction if the pupil is in any of grades K 24
to 5 and does not yet possess the skills necessary to participate 25
in 2-way interactions unassisted. The interactions described in 26
this sub-sub-subparagraph must relate to a virtual course on the 27
pupil's schedule and pertain to course content or progress. 28
(II) "Mentor" means a professional employee of the district 29
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who monitors the pupil's progress, ensures the pupil has access to 1
needed technology, is available for assistance, and ensures access 2
to the teacher of record. A mentor may also be the teacher of 3
record if the mentor meets the definition of a teacher of record 4
under this sub-subparagraph and the district is the provider for 5
the course. 6
(III) "Teacher of record" means a teacher to whom all of the 7
following apply: 8
(1) The teacher is responsible for providing instruction, 9
determining instructional methods for each pupil, diagnosing 10
learning needs, assessing pupil learning, prescribing intervention 11
strategies and modifying lessons, reporting outcomes, and 12
evaluating the effects of instruction and support strategies. The 13
teacher of record may coordinate the distribution and assignment of 14
the responsibilities described in this sub-sub-sub-subparagraph 15
with other teachers participating in the instructional process for 16
a course. 17
(2) The teacher is certified for the grade level or is working 18
under a valid substitute permit, authorization, or approval issued 19
by the department. 20
(3) The teacher has a personnel identification code provided 21
by the center. 22
(IV) "Week" means a period that starts on Wednesday and ends 23
the following Tuesday. 24
(B) The pupil completes a combination of 1 or more of the 25
following activities for each scheduled course on pupil membership 26
count day or supplemental count day, as applicable: 27
(I) Documented attendance in a virtual course where 28
synchronous, live instruction occurred with the teacher. 29
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(II) Documented completion of a course assignment. 1
(III) Documented completion of a course lesson or lesson 2
activity. 3
(IV) Documented pupil access to an ongoing lesson, which does 4
not include a login. 5
(V) Documented physical attendance on pupil membership count 6
day or supplemental count day, as applicable, in each scheduled 7
course, if the pupil will attend at least 50% of the instructional 8
time for each scheduled course on-site, face-to-face with the 9
teacher of record. As used in this sub-sub-subparagraph, "teacher 10
of record" means that term as defined in subparagraph (iii)(A). 11
(iv) For purposes of subparagraph (iii), each scheduled course 12
currently being attempted by the pupil, rather than every course on 13
the pupil's schedule for the entire term, is considered a part of 14
each scheduled course for the pupil. 15
(i) For a new district or public school academy beginning its 16
operation after December 31, 1994, membership for the first 2 full 17
or partial fiscal years of operation is determined as follows: 18
(i) If operations begin before the pupil membership count day 19
for the fiscal year, membership is the average number of full-time 20
equated pupils in grades K to 12 actually enrolled and in regular 21
daily attendance on the pupil membership count day for the current 22
school year and on the supplemental count day for the current 23
school year, as determined by the department and calculated by 24
adding the number of pupils registered for attendance on the pupil 25
membership count day plus pupils received by transfer and minus 26
pupils lost as defined by rules promulgated by the superintendent, 27
and as corrected by a subsequent department audit, plus the final 28
audited count from the supplemental count day for the current 29
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school year, and dividing that sum by 2. 1
(ii) If operations begin after the pupil membership count day 2
for the fiscal year and not later than the supplemental count day 3
for the fiscal year, membership is the final audited count of the 4
number of full-time equated pupils in grades K to 12 actually 5
enrolled and in regular daily attendance on the supplemental count 6
day for the current school year. 7
(j) If a district is the authorizing body for a public school 8
academy, then, in the first school year in which pupils are counted 9
in membership on the pupil membership count day in the public 10
school academy, the determination of the district's membership 11
excludes from the district's pupil count for the immediately 12
preceding supplemental count day any pupils who are counted in the 13
public school academy on that first pupil membership count day who 14
were also counted in the district on the immediately preceding 15
supplemental count day. 16
(k) For an extended school year program approved by the 17
superintendent, a pupil enrolled, but not scheduled to be in 18
regular daily attendance, on a pupil membership count day, is 19
counted in membership. 20
(l) To be counted in membership, a pupil must meet the minimum 21
age requirement to be eligible to attend school under section 1147 22
of the revised school code, MCL 380.1147, and must be less than 20 23
years of age on September 1 of the school year except as follows: 24
(i) A special education pupil who is enrolled and receiving 25
instruction in a special education program or service approved by 26
the department, who does not have a high school diploma, and who is 27
less than 26 years of age as of September 1 of the current school 28
year is counted in membership. 29
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(ii) A pupil who is determined by the department to meet all of 1
the following may be counted in membership: 2
(A) Is enrolled in a public school academy or an alternative 3
education high school diploma program, that is primarily focused on 4
educating pupils with extreme barriers to education, such as being 5
homeless as that term is defined under 42 USC 11302. 6
(B) Had dropped out of school. 7
(C) Is less than 22 years of age as of September 1 of the 8
current school year. 9
(iii) If a child does not meet the minimum age requirement to be 10
eligible to attend school for that school year under section 1147 11
of the revised school code, MCL 380.1147, but will be 5 years of 12
age not later than December 1 of that school year, the district may 13
count the child in membership for that school year if the parent or 14
legal guardian has notified the district in writing that the parent 15
or legal guardian intends to enroll the child in kindergarten for 16
that school year. 17
(m) An individual who has achieved a high school diploma is 18
not counted in membership. An individual who has achieved a high 19
school equivalency certificate is not counted in membership unless 20
the individual is a student with a disability as that term is 21
defined in R 340.1702 of the Michigan Administrative Code. An 22
individual participating in a job training program funded under 23
former section 107a or a jobs program funded under former section 24
107b, administered by the department of labor and economic 25
opportunity, or participating in any successor of either of those 2 26
programs, is not counted in membership. 27
(n) If a pupil counted in membership in a public school 28
academy is also educated by a district or intermediate district as 29
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part of a cooperative education program, the pupil is counted in 1
membership only in the public school academy unless a written 2
agreement signed by all parties designates the party or parties in 3
which the pupil is counted in membership, and the instructional 4
time scheduled for the pupil in the district or intermediate 5
district is included in the full-time equated membership 6
determination under subdivision (q) and section 101. However, for 7
pupils receiving instruction in both a public school academy and in 8
a district or intermediate district but not as a part of a 9
cooperative education program, the following apply: 10
(i) If the public school academy provides instruction for at 11
least 1/2 of the class hours required under section 101, the public 12
school academy receives as its prorated share of the full-time 13
equated membership for each of those pupils an amount equal to 1 14
times the product of the hours of instruction the public school 15
academy provides divided by the number of hours required under 16
section 101 for full-time equivalency, and the remainder of the 17
full-time membership for each of those pupils is allocated to the 18
district or intermediate district providing the remainder of the 19
hours of instruction. 20
(ii) If the public school academy provides instruction for less 21
than 1/2 of the class hours required under section 101, the 22
district or intermediate district providing the remainder of the 23
hours of instruction receives as its prorated share of the full-24
time equated membership for each of those pupils an amount equal to 25
1 times the product of the hours of instruction the district or 26
intermediate district provides divided by the number of hours 27
required under section 101 for full-time equivalency, and the 28
remainder of the full-time membership for each of those pupils is 29
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allocated to the public school academy. 1
(o) An individual less than 16 years of age as of September 1 2
of the current school year who is being educated in an alternative 3
education program is not counted in membership if there are also 4
adult education participants being educated in the same program or 5
classroom. 6
(p) The department shall give a uniform interpretation of 7
full-time and part-time memberships. 8
(q) The number of class hours used to calculate full-time 9
equated memberships must be consistent with section 101. In 10
determining full-time equated memberships for pupils who are 11
enrolled in a postsecondary institution or for pupils engaged in an 12
internship or work experience under section 1279h of the revised 13
school code, MCL 380.1279h, a pupil is not considered to be less 14
than a full-time equated pupil solely because of the effect of the 15
pupil's postsecondary enrollment or engagement in the internship or 16
work experience, including necessary travel time, on the number of 17
class hours provided by the district to the pupil. 18
(r) Full-time equated memberships for pupils in kindergarten 19
are determined by dividing the number of instructional hours 20
scheduled and provided per year per kindergarten pupil by the same 21
number used for determining full-time equated memberships for 22
pupils in grades 1 to 12. However, to the extent allowable under 23
federal law, for a district or public school academy that provides 24
evidence satisfactory to the department that it used federal title 25
I money in the 2 immediately preceding school fiscal years to fund 26
full-time kindergarten, full-time equated memberships for pupils in 27
kindergarten are determined by dividing the number of class hours 28
scheduled and provided per year per kindergarten pupil by a number 29
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equal to 1/2 the number used for determining full-time equated 1
memberships for pupils in grades 1 to 12. The change in the 2
counting of full-time equated memberships for pupils in 3
kindergarten that took effect for 2012-2013 is not a mandate. 4
(s) For a district or a public school academy that has pupils 5
enrolled in a grade level that was not offered by the district or 6
public school academy in the immediately preceding school year, the 7
number of pupils enrolled in that grade level to be counted in 8
membership is the average of the number of those pupils enrolled 9
and in regular daily attendance on the pupil membership count day 10
and the supplemental count day of the current school year. 11
Membership is calculated by adding the number of pupils registered 12
for attendance in that grade level on the pupil membership count 13
day plus pupils received by transfer and minus pupils lost as 14
defined by rules promulgated by the superintendent, and as 15
corrected by subsequent department audit, plus the final audited 16
count from the supplemental count day for the current school year, 17
and dividing that sum by 2. 18
(t) A pupil enrolled in a cooperative education program may be 19
counted in membership in the pupil's district of residence with the 20
written approval of all parties to the cooperative agreement. 21
(u) If, as a result of a disciplinary action, a district 22
determines through the district's alternative or disciplinary 23
education program that the best instructional placement for a pupil 24
is in the pupil's home or otherwise apart from the general school 25
population, if that placement is authorized in writing by the 26
district superintendent and district alternative or disciplinary 27
education supervisor, and if the district provides appropriate 28
instruction as described in this subdivision to the pupil at the 29
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pupil's home or otherwise apart from the general school population, 1
the district may count the pupil in membership on a pro rata basis, 2
with the proration based on the number of hours of instruction the 3
district actually provides to the pupil divided by the number of 4
hours required under section 101 for full-time equivalency. For the 5
purposes of this subdivision, a district is considered to be 6
providing appropriate instruction if all of the following are met: 7
(i) The district provides at least 2 nonconsecutive hours of 8
instruction per week to the pupil at the pupil's home or otherwise 9
apart from the general school population under the supervision of a 10
certificated teacher. 11
(ii) The district provides instructional materials, resources, 12
and supplies that are comparable to those otherwise provided in the 13
district's alternative education program. 14
(iii) Course content is comparable to that in the district's 15
alternative education program. 16
(iv) Credit earned is awarded to the pupil and placed on the 17
pupil's transcript. 18
(v) If a pupil was enrolled in a public school academy on the 19
pupil membership count day, if the public school academy's contract 20
with its authorizing body is revoked or the public school academy 21
otherwise ceases to operate, and if the pupil enrolls in a district 22
within 45 days after the pupil membership count day, the department 23
shall adjust the district's pupil count for the pupil membership 24
count day to include the pupil in the count. 25
(w) For a public school academy that has been in operation for 26
at least 2 years and that suspended operations for at least 1 27
semester and is resuming operations, membership is the sum of the 28
product of .90 times the number of full-time equated pupils in 29
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grades K to 12 actually enrolled and in regular daily attendance on 1
the first pupil membership count day or supplemental count day, 2
whichever is first, occurring after operations resume, plus the 3
product of .10 times the final audited count from the most recent 4
pupil membership count day or supplemental count day that occurred 5
before suspending operations, as determined by the superintendent. 6
(x) If a district's membership for a particular fiscal year, 7
as otherwise calculated under this subsection, would be less than 8
1,550 pupils, the district has 4.5 or fewer pupils per square mile, 9
as determined by the department, and the district does not receive 10
funding under section 22d(2), the district's membership is 11
considered to be the membership figure calculated under this 12
subdivision. If a district educates and counts in its membership 13
pupils in grades 9 to 12 who reside in a contiguous district that 14
does not operate grades 9 to 12 and if 1 or both of the affected 15
districts request the department to use the determination allowed 16
under this sentence, the department shall include the square 17
mileage of both districts in determining the number of pupils per 18
square mile for each of the districts for the purposes of this 19
subdivision. If a district has established a community engagement 20
advisory committee in partnership with the department of treasury, 21
is required to submit a deficit elimination plan or an enhanced 22
deficit elimination plan under section 1220 of the revised school 23
code, MCL 380.1220, and is located in a city with a population 24
between 9,000 and 11,000, as determined by the department, that is 25
in a county with a population between 150,000 and 160,000, as 26
determined by the department, the district's membership is 27
considered to be the membership figure calculated under this 28
subdivision. The membership figure calculated under this 29
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subdivision is the greater of the following: 1
(i) The average of the district's membership for the 3-fiscal-2
year period ending with that fiscal year, calculated by adding the 3
district's actual membership for each of those 3 fiscal years, as 4
otherwise calculated under this subsection, and dividing the sum of 5
those 3 membership figures by 3. 6
(ii) The district's actual membership for that fiscal year as 7
otherwise calculated under this subsection. 8
(y) Full-time equated memberships for special education pupils 9
who are not enrolled in kindergarten but are enrolled in a 10
classroom program under R 340.1754 of the Michigan Administrative 11
Code are determined by dividing the number of class hours scheduled 12
and provided per year by 450. Full-time equated memberships for 13
special education pupils who are not enrolled in kindergarten but 14
are receiving early childhood special education services under R 15
340.1755 or R 340.1862 of the Michigan Administrative Code are 16
determined by dividing the number of hours of service scheduled and 17
provided per year per pupil by 180. 18
(z) A pupil of a district that begins its school year after 19
Labor Day who is enrolled in an intermediate district program that 20
begins before Labor Day is not considered to be less than a full-21
time pupil solely due to instructional time scheduled but not 22
attended by the pupil before Labor Day. 23
(aa) For the first year in which a pupil is counted in 24
membership on the pupil membership count day in a middle college 25
program, the membership is the average of the full-time equated 26
membership on the pupil membership count day and on the 27
supplemental count day for the current school year, as determined 28
by the department. If a pupil described in this subdivision was 29
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counted in membership by the operating district on the immediately 1
preceding supplemental count day, the pupil is excluded from the 2
district's immediately preceding supplemental count for the 3
purposes of determining the district's membership. 4
(bb) A district or public school academy that educates a pupil 5
who attends a United States Olympic Education Center may count the 6
pupil in membership regardless of whether or not the pupil is a 7
resident of this state. 8
(cc) A pupil enrolled in a district other than the pupil's 9
district of residence under section 1148(2) of the revised school 10
code, MCL 380.1148, is counted in the educating district. 11
(dd) For a pupil enrolled in a dropout recovery program that 12
meets the requirements of section 23a, the pupil is counted as 1/12 13
of a full-time equated membership for each month that the district 14
operating the program reports that the pupil was enrolled in the 15
program and was in full attendance or based on the number of 16
successfully completed courses by the pupil with each course 17
equivalent to 1/12 of a full-time equated membership. A district 18
may claim more than 1/12 of a full-time equated membership within a 19
month for an enrolled pupil who was in full attendance and 20
successfully completed more than 1 required course. However, if the 21
special membership counting provisions under this subdivision and 22
the operation of the other membership counting provisions under 23
this subsection result in a pupil being counted as more than 1.0 24
FTE in a fiscal year, the payment made for the pupil under sections 25
22a and 22b must not be based on more than 1.0 FTE for that pupil, 26
and any portion of an FTE for that pupil that exceeds 1.0 is 27
instead paid under section 25g. The district operating the program 28
shall report to the center the number of pupils who were enrolled 29
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in the program and were in full attendance for a month not later 1
than 30 days after the end of the month. A district shall not 2
report a pupil as being in full attendance for a month unless both 3
of the following are met: 4
(i) A personalized learning plan is in place on or before the 5
first school day of the month for the first month the pupil 6
participates in the program. 7
(ii) Either of the following is met: 8
(A) The pupil meets the district's definition under section 9
23a of satisfactory monthly progress for that month or, if the 10
pupil does not meet that definition of satisfactory monthly 11
progress for that month, the pupil did meet that definition of 12
satisfactory monthly progress in the immediately preceding month 13
and appropriate interventions, as defined by the district, are 14
implemented within 10 school days after it is determined that the 15
pupil does not meet that definition of satisfactory monthly 16
progress. 17
(B) For the first 2 months that the pupil participates in the 18
program, the pupil earns 0.25 credit by the end of the second 19
month. A pupil described in this sub-subparagraph may be 20
retroactively reported as being in full attendance for the first 21
month that the pupil participated in the program. 22
(ee) A pupil participating in a virtual course under section 23
21f is counted in membership in the district enrolling the pupil. 24
(ff) If a public school academy that is not in its first or 25
second year of operation closes at the end of a school year and 26
does not reopen for the next school year, the department shall 27
adjust the membership count of the district or other public school 28
academy in which a former pupil of the closed public school academy 29
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CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
enrolls and is in regular daily attendance for the next school year 1
to ensure that the district or other public school academy receives 2
the same amount of membership aid for the pupil as if the pupil 3
were counted in the district or other public school academy on the 4
supplemental count day of the preceding school year. 5
(gg) If a special education pupil is expelled under section 6
1311 or 1311a of the revised school code, MCL 380.1311 and 7
380.1311a, and is not in attendance on the pupil membership count 8
day because of the expulsion, and if the pupil remains enrolled in 9
the district and resumes regular daily attendance during that 10
school year, the district's membership is adjusted to count the 11
pupil in membership as if the pupil had been in attendance on the 12
pupil membership count day. 13
(hh) A pupil enrolled in a community district is counted in 14
membership in the community district. 15
(ii) A part-time pupil enrolled in a nonpublic school in 16
grades K to 12 in accordance with section 166b must not be counted 17
as more than 0.75 of a full-time equated membership. 18
(jj) A district that borders another state or a public school 19
academy that operates at least grades 9 to 12 and is located within 20
20 miles of a border with another state may count in membership a 21
pupil who is enrolled in a course at a college or university that 22
is located in the bordering state and within 20 miles of the border 23
with this state if all of the following are met: 24
(i) The pupil would meet the definition of an eligible student 25
under the postsecondary enrollment options act, 1996 PA 160, MCL 26
388.511 to 388.524, if the course were an eligible course under 27
that act. 28
(ii) The course in which the pupil is enrolled would meet the 29
20

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
definition of an eligible course under the postsecondary enrollment 1
options act, 1996 PA 160, MCL 388.511 to 388.524, if the course 2
were provided by an eligible postsecondary institution under that 3
act. 4
(iii) The department determines that the college or university 5
is an institution that, in the other state, fulfills a function 6
comparable to a state university or community college, as those 7
terms are defined in section 3 of the postsecondary enrollment 8
options act, 1996 PA 160, MCL 388.513, or is an independent 9
nonprofit degree-granting college or university. 10
(iv) The district or public school academy pays for a portion 11
of the pupil's tuition at the college or university in an amount 12
equal to the eligible charges that the district or public school 13
academy would pay to an eligible postsecondary institution under 14
the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 15
to 388.524, as if the course were an eligible course under that 16
act. 17
(v) The district or public school academy awards high school 18
credit to a pupil who successfully completes a course as described 19
in this subdivision. 20
(kk) A pupil enrolled in a middle college program may be 21
counted for more than a total of 1.0 full-time equated membership 22
for any of the school years in which the pupil is enrolled in the 23
middle college program, but the total full-time equated membership 24
for that pupil for all of the school years in which the pupil is 25
enrolled in high school must not be greater than 5.00 full-time 26
equated membership if the pupil is enrolled in more than the 27
minimum number of instructional days and hours required under 28
section 101 and the pupil is expected to complete the 5-year 29
21

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
program with both a high school diploma and at least 60 1
transferable college credits or is expected to earn an associate's 2
degree in fewer than 5 years. A pupil who graduates with both a 3
high school diploma and at least 60 transferable college credits or 4
an associate degree at least 1 semester early is considered to have 5
completed the middle college program in fewer than 5 years. 6
(ll) If a district's or public school academy's membership for 7
a particular fiscal year, as otherwise calculated under this 8
subsection, includes pupils counted in membership who are enrolled 9
under section 166b, all of the following apply for the purposes of 10
this subdivision: 11
(i) If the district's or public school academy's membership for 12
pupils counted under section 166b equals or exceeds 5% of the 13
district's or public school academy's membership for pupils not 14
counted in membership under section 166b in the immediately 15
preceding fiscal year, then the growth in the district's or public 16
school academy's membership for pupils counted under section 166b 17
must not exceed 10%. 18
(ii) If the district's or public school academy's membership 19
for pupils counted under section 166b is less than 5% of the 20
district's or public school academy's membership for pupils not 21
counted in membership under section 166b in the immediately 22
preceding fiscal year, then the district's or public school 23
academy's membership for pupils counted under section 166b must not 24
exceed the greater of the following: 25
(A) Five percent of the district's or public school academy's 26
membership for pupils not counted in membership under section 166b. 27
(B) Ten percent more than the district's or public school 28
academy's membership for pupils counted under section 166b in the 29
22

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
immediately preceding fiscal year. 1
(iii) If 1 or more districts consolidate or are parties to an 2
annexation, then the calculations under subparagraphs (i) and (ii) 3
must be applied to the combined total membership for pupils counted 4
in those districts for the fiscal year immediately preceding the 5
consolidation or annexation. 6
(5) "Public school academy" means that term as defined in 7
section 5 of the revised school code, MCL 380.5. 8
(6) "Pupil" means an individual in membership in a public 9
school. A district must have the approval of the pupil's district 10
of residence to count the pupil in membership, except approval by 11
the pupil's district of residence is not required for any of the 12
following: 13
(a) A nonpublic part-time pupil enrolled in grades K to 12 in 14
accordance with section 166b. 15
(b) A pupil receiving 1/2 or less of the pupil's instruction 16
in a district other than the pupil's district of residence. 17
(c) A pupil enrolled in a public school academy. 18
(d) A pupil enrolled in a district other than the pupil's 19
district of residence if the pupil is enrolled in accordance with 20
section 105 or 105c. 21
(e) A pupil who has made an official written complaint or 22
whose parent or legal guardian has made an official written 23
complaint to law enforcement officials and to school officials of 24
the pupil's district of residence that the pupil has been the 25
victim of a criminal sexual assault or other serious assault, if 26
the official complaint either indicates that the assault occurred 27
at school or that the assault was committed by 1 or more other 28
pupils enrolled in the school the pupil would otherwise attend in 29
23

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
the district of residence or by an employee of the district of 1
residence. A person who intentionally makes a false report of a 2
crime to law enforcement officials for the purposes of this 3
subdivision is subject to section 411a of the Michigan penal code, 4
1931 PA 328, MCL 750.411a, which provides criminal penalties for 5
that conduct. As used in this subdivision: 6
(i) "At school" means in a classroom, elsewhere on school 7
premises, on a school bus or other school-related vehicle, or at a 8
school-sponsored activity or event whether or not it is held on 9
school premises. 10
(ii) "Serious assault" means an act that constitutes a felony 11
violation of chapter XI of the Michigan penal code, 1931 PA 328, 12
MCL 750.81 to 750.90h, 750.90g, or that constitutes an assault and 13
infliction of serious or aggravated injury under section 81a of the 14
Michigan penal code, 1931 PA 328, MCL 750.81a. 15
(f) A pupil whose district of residence changed after the 16
pupil membership count day and before the supplemental count day 17
and who continues to be enrolled on the supplemental count day as a 18
nonresident in the district in which the pupil was enrolled as a 19
resident on the pupil membership count day of the same school year. 20
(g) A pupil enrolled in an alternative education program 21
operated by a district other than the pupil's district of residence 22
who meets 1 or more of the following: 23
(i) The pupil has been suspended or expelled from the pupil's 24
district of residence for any reason, including, but not limited 25
to, a suspension or expulsion under section 1310, 1311, or 1311a of 26
the revised school code, MCL 380.1310, 380.1311, and 380.1311a. 27
(ii) The pupil had previously dropped out of school. 28
(iii) The pupil is pregnant or is a parent. 29
24

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
(iv) The pupil has been referred to the program by a court. 1
(h) A pupil enrolled in the Michigan Virtual School, for the 2
pupil's enrollment in the Michigan Virtual School. 3
(i) A pupil who is the child of a person who works at the 4
district or who is the child of a person who worked at the district 5
as of the time the pupil first enrolled in the district but who no 6
longer works at the district due to a workforce reduction. As used 7
in this subdivision, "child" includes an adopted child, stepchild, 8
or legal ward. 9
(j) An expelled pupil who has been denied reinstatement by the 10
expelling district and is reinstated by another school board under 11
section 1311 or 1311a of the revised school code, MCL 380.1311 and 12
380.1311a. 13
(k) A pupil enrolled in a district other than the pupil's 14
district of residence in a middle college program if the pupil's 15
district of residence and the enrolling district are both 16
constituent districts of the same intermediate district. 17
(l) A pupil enrolled in a district other than the pupil's 18
district of residence who attends a United States Olympic Education 19
Center. 20
(m) A pupil enrolled in a district other than the pupil's 21
district of residence under section 1148(2) of the revised school 22
code, MCL 380.1148. 23
(n) A pupil who enrolls in a district other than the pupil's 24
district of residence as a result of the pupil's school not making 25
adequate yearly progress under the no child left behind act of 26
2001, Public Law 107-110, or the every student succeeds act, Public 27
Law 114-95. However, if a district educates pupils who reside in 28
another district and if the primary instructional site for those 29
25

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
pupils is established by the educating district after 2009-2010 and 1
is located within the boundaries of that other district, the 2
educating district must have the approval of that other district to 3
count those pupils in membership. 4
(7) "Pupil membership count day" of a district or intermediate 5
district means: 6
(a) Except as provided in subdivision (b) or (c), either of 7
the following: 8
(i) The first Wednesday in October each school year. 9
(ii) For a district or building in which school is not in 10
session on the Wednesday described in subparagraph (i) due to 11
conditions not within the control of school authorities, with the 12
approval of the superintendent, the immediately following day on 13
which school is in session in the district or building. 14
(b) Except as otherwise provided in subdivision (c), for a 15
district or intermediate district maintaining school during the 16
entire school year, the following days: 17
(i) Fourth Wednesday in July. 18
(ii) First Wednesday in October. 19
(iii) Second Wednesday in February. 20
(iv) Fourth Wednesday in April. 21
(c) If a date listed in subdivision (a) or (b) is on a day of 22
religious or cultural significance, as determined by the district 23
or intermediate district, the immediately following day on which 24
school is in session in the district or building. 25
(8) "Pupils in grades K to 12 actually enrolled and in regular 26
daily attendance" means, except as otherwise provided in this 27
section, pupils in grades K to 12 in attendance and receiving 28
instruction in all classes for which they are enrolled on the pupil 29
26

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
membership count day or the supplemental count day, as applicable. 1
Except as otherwise provided in this section and subsection, a 2
pupil who is absent from any of the classes in which the pupil is 3
enrolled on the pupil membership count day or supplemental count 4
day and who does not attend each of those classes during the 10 5
consecutive school days immediately following the pupil membership 6
count day or supplemental count day, except for a pupil who has 7
been excused by the district, is not counted as 1.0 full-time 8
equated membership. Except as otherwise provided in this section, a 9
pupil who is excused from attendance on the pupil membership count 10
day or supplemental count day and who fails to attend each of the 11
classes in which the pupil is enrolled within 30 calendar days 12
after the pupil membership count day or supplemental count day is 13
not counted as 1.0 full-time equated membership. Except as 14
otherwise provided in this section, in addition, a pupil who was 15
enrolled and in attendance in a district, intermediate district, or 16
public school academy before the pupil membership count day or 17
supplemental count day of a particular year but was expelled or 18
suspended on the pupil membership count day or supplemental count 19
day is only counted as 1.0 full-time equated membership if the 20
pupil resumed attendance in the district, intermediate district, or 21
public school academy within 45 days after the pupil membership 22
count day or supplemental count day of that particular year. Except 23
as otherwise provided in this section, a pupil not counted as 1.0 24
full-time equated membership due to an absence from a class is 25
counted as a prorated membership for the classes the pupil 26
attended. For purposes of this subsection: 27
(a) "Appropriately placed" means holding a valid Michigan 28
educator credential with the required grade range and discipline or 29
27

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
subject area for the assignment, as defined by the superintendent 1
of public instruction. 2
(b) "Class" means either of the following, as applicable: 3
(i) A period of time in 1 day when pupils and an individual who 4
is appropriately placed under a valid certificate, substitute 5
permit, authorization, or approval issued by the department, are 6
together and instruction is taking place. This subdivision does not 7
apply for the 2024-2025 and 2025-2026 school years. 8
(ii) For the 2024-2025 and 2025-2026 school years only, a 9
period of time in 1 day when pupils and a certificated teacher, a 10
teacher engaged to teach under section 1233b of the revised school 11
code, MCL 380.1233b, or an individual working under a valid 12
substitute permit, authorization, or approval issued by the 13
department are together and instruction is taking place. 14
(9) "Rule" means a rule promulgated pursuant to the 15
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 16
24.328. 17
(10) "The revised school code" means the revised school code, 18
1976 PA 451, MCL 380.1 to 380.1852. 19
(11) "School district of the first class", "first class school 20
district", and "district of the first class" mean, for the purposes 21
of this article only, a district that had at least 40,000 pupils in 22
membership for the immediately preceding fiscal year. 23
(12) "School fiscal year" means a fiscal year that commences 24
July 1 and continues through June 30. 25
(13) "State board" means the state board of education. 26
(14) "Superintendent", unless the context clearly refers to a 27
district or intermediate district superintendent, means the 28
superintendent of public instruction described in section 3 of 29
28

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
article VIII of the state constitution of 1963. 1
(15) "Supplemental count day" means the day on which the 2
supplemental pupil count is conducted under section 6a. 3
(16) "Tuition pupil" means a pupil of school age attending 4
school in a district other than the pupil's district of residence 5
for whom tuition may be charged to the district of residence. 6
Tuition pupil does not include a pupil who is a special education 7
pupil, a pupil described in subsection (6)(d) to (n), or a pupil 8
whose parent or guardian voluntarily enrolls the pupil in a 9
district that is not the pupil's district of residence. A pupil's 10
district of residence shall not require a high school tuition 11
pupil, as provided under section 111, to attend another school 12
district after the pupil has been assigned to a school district. 13
(17) "State school aid fund" means the state school aid fund 14
established in section 11 of article IX of the state constitution 15
of 1963. 16
(18) "Taxable value" means, except as otherwise provided in 17
this article, the taxable value of property as determined under 18
section 27a of the general property tax act, 1893 PA 206, MCL 19
211.27a. 20
(19) "Textbook" means a book, electronic book, or other 21
instructional print or electronic resource that is selected and 22
approved by the governing board of a district and that contains a 23
presentation of principles of a subject, or that is a literary work 24
relevant to the study of a subject required for the use of 25
classroom pupils, or another type of course material that forms the 26
basis of classroom instruction. 27
(20) "Total state aid" or "total state school aid", except as 28
otherwise provided in this article, means the total combined amount 29
29

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
of all funds due to a district, intermediate district, or other 1
entity under this article. 2
Sec. 18. (1) Except as provided in another section of this 3
article, each district or other entity shall apply the money 4
received by the district or entity under this article to salaries 5
and other compensation of teachers and other employees, tuition, 6
transportation, lighting, heating, ventilation, water service, the 7
purchase of textbooks, other supplies, and any other school 8
operating expenditures defined in section 7. However, not more than 9
20% of the total amount received by a district under sections 22a 10
and 22b or received by an intermediate district under section 81 11
may be transferred by the board to either the capital projects fund 12
or to the debt retirement fund for debt service. A district or 13
other entity shall not apply or take the money for a purpose other 14
than as provided in this section. The department shall determine 15
the reasonableness of expenditures and may withhold from a 16
recipient of funds under this article the apportionment otherwise 17
due upon a violation by the recipient. A district must not be 18
prohibited or limited from using funds appropriated or allocated 19
under this article that are permitted for use for noninstructional 20
services to contract or subcontract with an intermediate district, 21
third party, or vendor for the noninstructional services. 22
(2) A district or intermediate district shall adopt an annual 23
budget in a manner that complies with the uniform budgeting and 24
accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days 25
after a district board adopts its annual operating budget for the 26
following school fiscal year, or after a district board adopts a 27
subsequent revision to that budget, the district shall make all of 28
the following available through a link on its website homepage, or 29
30

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
may make the information available through a link on its 1
intermediate district's website homepage, in a form and manner 2
prescribed by the department: 3
(a) The annual operating budget and subsequent budget 4
revisions. 5
(b) Using data that have already been collected and submitted 6
to the department, a summary of district expenditures for the most 7
recent fiscal year for which they are available, expressed in the 8
following 2 visual displays: 9
(i) A chart of personnel expenditures, broken into the 10
following subcategories: 11
(A) Salaries and wages. 12
(B) Employee benefit costs, including, but not limited to, 13
medical, dental, vision, life, disability, and long-term care 14
benefits. 15
(C) Retirement benefit costs. 16
(D) All other personnel costs. 17
(ii) A chart of all district expenditures, broken into the 18
following subcategories: 19
(A) Instruction. 20
(B) Support services. 21
(C) Business and administration. 22
(D) Operations and maintenance. 23
(c) Links to all of the following: 24
(i) The current collective bargaining agreement for each 25
bargaining unit. 26
(ii) Each health care benefits plan, including, but not limited 27
to, medical, dental, vision, disability, long-term care, or any 28
other type of benefits that would constitute health care services, 29
31

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
offered to any bargaining unit or employee in the district. 1
(iii) The audit report of the financial audit conducted under 2
subsection (4) for the most recent fiscal year for which it is 3
available. 4
(iv) The bids required under section 5 of the public employees 5
health benefit act, 2007 PA 106, MCL 124.75. 6
(v) The district's written policy governing procurement of 7
supplies, materials, and equipment. 8
(vi) The district's written policy establishing specific 9
categories of reimbursable expenses, as described in section 10
1254(2) of the revised school code, MCL 380.1254. 11
(vii) Either the district's accounts payable check register for 12
the most recent school fiscal year or a statement of the total 13
amount of expenses incurred by board members or employees of the 14
district that were reimbursed by the district for the most recent 15
school fiscal year. 16
(d) The total salary and a description and cost of each fringe 17
benefit included in the compensation package for the superintendent 18
of the district and for each employee of the district whose salary 19
exceeds $100,000.00. 20
(e) The annual amount spent on dues paid to associations. 21
(f) The annual amount spent on lobbying or lobbying services. 22
As used in this subdivision, "lobbying" means that term as defined 23
in section 5 of 1978 PA 472, MCL 4.415. 24
(g) Any deficit elimination plan or enhanced deficit 25
elimination plan the district was required to submit under the 26
revised school code. 27
(h) Identification of all credit cards maintained by the 28
district as district credit cards, the identity of all individuals 29
32

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
authorized to use each of those credit cards, the credit limit on 1
each credit card, and the dollar limit, if any, for each 2
individual's authorized use of the credit card. 3
(i) Costs incurred for each instance of out-of-state travel by 4
the school administrator of the district that is fully or partially 5
paid for by the district and the details of each of those instances 6
of out-of-state travel, including at least identification of each 7
individual on the trip, destination, and purpose. 8
(3) For the information required under subsection (2)(a), 9
(2)(b)(i), and (2)(c), an intermediate district shall provide the 10
same information in the same manner as required for a district 11
under subsection (2). 12
(4) For the purposes of determining the reasonableness of 13
expenditures, whether a district or intermediate district has 14
received the proper amount of funds under this article, and whether 15
a violation of this article has occurred, all of the following 16
apply: 17
(a) The department shall require that each district and 18
intermediate district have an audit of the district's or 19
intermediate district's financial and pupil accounting records 20
conducted at least annually, and at such other times as determined 21
by the department, at the expense of the district or intermediate 22
district, as applicable. The audits must be performed by a 23
certified public accountant or by the intermediate district 24
superintendent, as may be required by the department, or in the 25
case of a district of the first class by a certified public 26
accountant, the intermediate superintendent, or the auditor general 27
of the city. A district or intermediate district shall retain these 28
records for the current fiscal year and from at least the 3 29
33

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
immediately preceding fiscal years. 1
(b) If a district operates in a single building with fewer 2
than 700 full-time equated pupils, if the district has stable 3
membership, and if the error rate of the immediately preceding 2 4
pupil accounting field audits of the district is less than 2%, the 5
district may have a pupil accounting field audit conducted 6
biennially but must continue to have desk audits for each pupil 7
count. The auditor must document compliance with the audit cycle in 8
the pupil auditing manual. As used in this subdivision, "stable 9
membership" means that the district's membership for the current 10
fiscal year varies from the district's membership for the 11
immediately preceding fiscal year by less than 5%. 12
(c) A district's or intermediate district's annual financial 13
audit must include an analysis of the financial and pupil 14
accounting data used as the basis for distribution of state school 15
aid. 16
(d) The pupil and financial accounting records and reports, 17
audits, and management letters are subject to subdivision (h) and 18
any requirements established in the auditing and accounting manuals 19
approved and published by the department. 20
(e) All of the following must be done not later than November 21
1 each year for reporting the prior fiscal year data: 22
(i) A district shall file the annual financial audit reports 23
with the intermediate district and the department. If the issuance 24
of single audits is delayed for the 2024-25 school year due to a 25
late issuance of a Compliance Supplement, the single audit portion 26
of that audit must be filed within 30 days of the issuance of the 27
Compliance Supplement by OMB. 28
(ii) The intermediate district shall file the annual financial 29
34

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
audit reports for the intermediate district with the department. If 1
the issuance of single audits is delayed for the 2024-25 school 2
year due to a late issuance of a Compliance Supplement, the single 3
audit portion of that audit must be filed within 30 days of the 4
issuance of the Compliance Supplement by OMB. 5
(iii) The intermediate district shall enter the pupil membership 6
audit reports, known as the audit narrative, for its constituent 7
districts and for the intermediate district, for the pupil 8
membership count day and supplemental count day, in the Michigan 9
student data system. 10
(f) The annual financial audit reports and pupil accounting 11
procedures reports must be available to the public in compliance 12
with the freedom of information act, 1976 PA 442, MCL 15.231 to 13
15.246. 14
(g) Not later than January 31 of each year, the department 15
shall notify the state budget director and the legislative 16
appropriations subcommittees responsible for review of the school 17
aid budget of districts and intermediate districts that have not 18
filed an annual financial audit and pupil accounting procedures 19
report required under this section for the school year ending in 20
the immediately preceding fiscal year. 21
(h) The department has the authority to override the 22
determination of a pupil membership auditor regarding a district's 23
or intermediate district's pupil count. 24
(5) By the first business day in November of each fiscal year, 25
each district and intermediate district shall submit to the center, 26
in a manner prescribed by the center, annual comprehensive 27
financial data consistent with the district's or intermediate 28
district's audited financial statements and consistent with 29
35

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
accounting manuals and charts of accounts approved and published by 1
the department. For an intermediate district, the report must also 2
contain the website address where the department can access the 3
report required under section 620 of the revised school code, MCL 4
380.620. The department shall ensure that the prescribed Michigan 5
public school accounting manual chart of accounts includes standard 6
conventions to distinguish expenditures by allowable fund function 7
and object. The functions must include at minimum categories for 8
instruction, pupil support, instructional staff support, general 9
administration, school administration, business administration, 10
transportation, facilities operation and maintenance, facilities 11
acquisition, and debt service; and must include object 12
classifications of salary, benefits, including categories for 13
active employee health expenditures, purchased services, supplies, 14
capital outlay, and other. A district shall report the required 15
level of detail consistent with the manual as part of the 16
comprehensive annual financial report. 17
(6) By the last business day in September of each year, each 18
district and intermediate district shall file with the center the 19
special education actual cost report, known as "SE-4096", on a form 20
and in the manner prescribed by the center. An intermediate 21
district shall certify the audit of a district's report. 22
(7) By not later than 1 week after the last business day in 23
September of each year, each district and intermediate district 24
shall file with the center the audited transportation expenditure 25
report, known as "SE-4094", on a form and in the manner prescribed 26
by the center. An intermediate district shall certify the audit of 27
a district's report. 28
(8) The department shall review its pupil accounting and pupil 29
36

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
auditing manuals at least annually and shall periodically update 1
those manuals to reflect changes in this article. Any changes to 2
the pupil accounting manual that are applicable for the school year 3
that begins after March 31 of a fiscal year must be published by 4
not later than March 31 of that fiscal year. However, if 5
legislation is enacted that necessitates adjustments to the pupil 6
accounting manual after March 31 of a fiscal year, and a district 7
incurs a violation of the amended pupil accounting manual in the 8
subsequent fiscal year, the department must notify the district of 9
that violation and allow the district 30 days to correct the 10
violation before the department is allowed to impose financial 11
penalties under this act related to the violation. 12
(9) If a district that is a public school academy purchases 13
property using money received under this article, the public school 14
academy shall retain ownership of the property unless the public 15
school academy sells the property at fair market value. 16
(10) If a district or intermediate district does not comply 17
with subsections (4), (5), (6), (7), and (12), or if the department 18
determines that the financial data required under subsection (5) 19
are not consistent with audited financial statements, the 20
department shall withhold all state school aid due to the district 21
or intermediate district under this article, beginning with the 22
next payment due to the district or intermediate district, until 23
the district or intermediate district complies with subsections 24
(4), (5), (6), (7), and (12). If the district or intermediate 25
district does not comply with subsections (4), (5), (6), (7), and 26
(12) by the end of the fiscal year, the district or intermediate 27
district forfeits the amount withheld. 28
(11) If a district or intermediate district does not comply 29
37

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
with subsection (2), the department may withhold up to 10% of the 1
total state school aid due to the district or intermediate district 2
under this article, beginning with the next payment due to the 3
district or intermediate district, until the district or 4
intermediate district complies with subsection (2). If the district 5
or intermediate district does not comply with subsection (2) by the 6
end of the fiscal year, the district or intermediate district 7
forfeits the amount withheld. 8
(12) By November 1 of each year, if a district or intermediate 9
district offers virtual learning under section 21f, or for a school 10
of excellence that is a cyber school, as defined in section 551 of 11
the revised school code, MCL 380.551, the district or intermediate 12
district shall submit to the department a report that details the 13
per-pupil costs of operating the virtual learning by vendor type 14
and virtual learning model. The report must include information 15
concerning the operation of virtual learning for the immediately 16
preceding school fiscal year, including information concerning 17
summer programming. Information must be collected in a form and 18
manner determined by the department and must be collected in the 19
most efficient manner possible to reduce the administrative burden 20
on reporting entities. 21
(13) By March 31 of each year, the department shall submit to 22
the house and senate appropriations subcommittees on state school 23
aid, the state budget director, and the house and senate fiscal 24
agencies a report summarizing the per-pupil costs by vendor type of 25
virtual courses available under section 21f and virtual courses 26
provided by a school of excellence that is a cyber school, as 27
defined in section 551 of the revised school code, MCL 380.551. 28
(14) As used in subsections (12) and (13), "vendor type" means 29
38

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
the following: 1
(a) Virtual courses provided by the Michigan Virtual 2
University. 3
(b) Virtual courses provided by a school of excellence that is 4
a cyber school, as defined in section 551 of the revised school 5
code, MCL 380.551. 6
(c) Virtual courses provided by third party vendors not 7
affiliated with a public school in this state. 8
(d) Virtual courses created and offered by a district or 9
intermediate district. 10
(15) An allocation to a district or another entity under this 11
article is contingent upon the district's or entity's compliance 12
with this section. 13
(16) The department shall annually submit to the senate and 14
house subcommittees on school aid and to the senate and house 15
standing committees on education an itemized list of allocations 16
under this article to any association or consortium consisting of 17
associations in the immediately preceding fiscal year. The report 18
must detail the recipient or recipients, the amount allocated, and 19
the purpose for which the funds were distributed. 20
Sec. 101. (1) To be eligible to receive state aid under this 21
article, not later than the fifth Wednesday after the pupil 22
membership count day and not later than the fifth Wednesday after 23
the supplemental count day, each district superintendent shall 24
submit and certify to the center and the intermediate 25
superintendent, in the form and manner prescribed by the center, 26
the number of pupils enrolled and in regular daily attendance, 27
including identification of tuition-paying pupils, in the district 28
as of the pupil membership count day and as of the supplemental 29
39

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
count day, as applicable, for the current school year. In addition, 1
a district maintaining school during the entire year shall submit 2
and certify to the center and the intermediate superintendent, in 3
the form and manner prescribed by the center, the number of pupils 4
enrolled and in regular daily attendance in the district for the 5
current school year pursuant to rules promulgated by the 6
superintendent. Not later than the sixth Wednesday after the pupil 7
membership count day and not later than the sixth Wednesday after 8
the supplemental count day, the district shall resolve any pupil 9
membership conflicts with another district, correct any data 10
issues, and recertify the data in a form and manner prescribed by 11
the center and file the certified data with the intermediate 12
superintendent. If a district fails to submit and certify the 13
attendance data, as required under this subsection, the center 14
shall notify the department and the department shall withhold state 15
aid due to be distributed under this article from the defaulting 16
district immediately, beginning with the next payment after the 17
failure and continuing with each payment until the district 18
complies with this subsection. If a district does not comply with 19
this subsection by the end of the fiscal year, the district 20
forfeits the amount withheld. A person who willfully falsifies a 21
figure or statement in the certified and sworn copy of enrollment 22
is subject to penalty as prescribed by section 161. 23
(2) To be eligible to receive state aid under this article, 24
not later than the twenty-fourth Wednesday after the pupil 25
membership count day and not later than the twenty-fourth Wednesday 26
after the supplemental count day, an intermediate district shall 27
submit to the center, in a form and manner prescribed by the 28
center, the audited enrollment and attendance data as described in 29
40

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
subsection (1) for the pupils of its constituent districts and of 1
the intermediate district. If an intermediate district fails to 2
submit the audited data as required under this subsection, the 3
department shall withhold state aid due to be distributed under 4
this article from the defaulting intermediate district immediately, 5
beginning with the next payment after the failure and continuing 6
with each payment until the intermediate district complies with 7
this subsection. If an intermediate district does not comply with 8
this subsection by the end of the fiscal year, the intermediate 9
district forfeits the amount withheld. 10
(3) Except as otherwise provided in subsections (11) and (12) 11
all of the following apply to the provision of pupil instruction: 12
(a) Except as otherwise provided in this section, each 13
district shall provide at least 1,098 hours and 180 days of pupil 14
instruction. If a collective bargaining agreement that provides a 15
complete school calendar was in effect for employees of a district 16
as of June 24, 2014, and if that school calendar is not in 17
compliance with this subdivision, then this subdivision does not 18
apply to that district until after the expiration of that 19
collective bargaining agreement. A district may apply for a waiver 20
under subsection (9) or subdivision (h) from the requirements of 21
this subdivision. 22
(b) Except as otherwise provided in this article, a district 23
failing to comply with the required minimum hours and days of pupil 24
instruction under this subsection forfeits from its total state aid 25
allocation an amount determined by applying a ratio of the number 26
of hours or days the district was in noncompliance in relation to 27
the required minimum number of hours and days under this 28
subsection. Not later than the first business day in August, the 29
41

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
board of each district shall either certify to the department that 1
the district was in full compliance with this section regarding the 2
number of hours and days of pupil instruction in the previous 3
school year, or report to the department, in a form and manner 4
prescribed by the center, each instance of noncompliance. If the 5
district did not provide at least the required minimum number of 6
hours and days of pupil instruction under this subsection, the 7
department shall make the deduction of state aid in the following 8
fiscal year from the first payment of state school aid. A district 9
is not subject to forfeiture of funds under this subsection for a 10
fiscal year in which a forfeiture was already imposed under 11
subsection (6). 12
(c) Hours or days lost because of strikes or teachers' 13
conferences are not counted as hours or days of pupil instruction. 14
(d) Except as otherwise provided in subdivisions (e) and (f), 15
if a district does not have at least 75% of the district's 16
membership in attendance on any day of pupil instruction, the 17
department shall pay the district state aid in that proportion of 18
1/180 that the actual percent of attendance bears to 75%. 19
(e) If a district adds 1 or more days of pupil instruction to 20
the end of its instructional calendar for a school year to comply 21
with subdivision (a) because the district otherwise would fail to 22
provide the required minimum number of days of pupil instruction 23
even after the operation of subsection (4) due to conditions not 24
within the control of school authorities, then subdivision (d) does 25
not apply for any day of pupil instruction that is added to the end 26
of the instructional calendar. Instead, for any of those days, if 27
the district does not have at least 60% of the district's 28
membership in attendance on that day, the department shall pay the 29
42

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
district state aid in that proportion of 1/180 that the actual 1
percentage of attendance bears to 60%. For any day of pupil 2
instruction added to the instructional calendar as described in 3
this subdivision, the district shall report to the department the 4
percentage of the district's membership that is in attendance, in 5
the form and manner prescribed by the department. 6
(f) At the request of a district that operates a department-7
approved alternative education program and that does not provide 8
instruction for pupils in all of grades K to 12, the superintendent 9
shall grant a waiver from the requirements of subdivision (d). The 10
waiver must provide that an eligible district is subject to the 11
proration provisions of subdivision (d) only if the district does 12
not have at least 50% of the district's membership in attendance on 13
any day of pupil instruction. In order to be eligible for this 14
waiver, a district must maintain records to substantiate its 15
compliance with the following requirements: 16
(i) The district offers the minimum hours of pupil instruction 17
as required under this section. 18
(ii) For each enrolled pupil, the district uses appropriate 19
academic assessments to develop an individual education plan that 20
leads to a high school diploma. 21
(iii) The district tests each pupil to determine academic 22
progress at regular intervals and records the results of those 23
tests in that pupil's individual education plan. 24
(g) All of the following apply to a waiver granted under 25
subdivision (f): 26
(i) If the waiver is for a blended model of delivery, a waiver 27
that is granted for the 2011-2012 fiscal year or a subsequent 28
fiscal year remains in effect unless it is revoked by the 29
43

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
superintendent. 1
(ii) If the waiver is for a 100% online model of delivery and 2
the educational program for which the waiver is granted makes 3
educational services available to pupils for a minimum of at least 4
1,098 hours during a school year and ensures that each pupil 5
participates in the educational program for at least 1,098 hours 6
during a school year, a waiver that is granted for the 2011-2012 7
fiscal year or a subsequent fiscal year remains in effect unless it 8
is revoked by the superintendent. 9
(iii) A waiver that is not a waiver described in subparagraph 10
(i) or (ii) is valid for 3 fiscal years, unless it is revoked by the 11
superintendent, and must be renewed at the end of the 3-year period 12
to remain in effect. 13
(h) For the 2024-2025 school year only, a district does not 14
need to meet the minimum number of hours and days of pupil 15
instruction requirement under subdivision (a) if that district 16
meets all of the following requirements: 17
(i) The district is located wholly or partially in a county 18
that is covered by a state of emergency declared by the governor. 19
(ii) A majority of the district board votes to exempt the 20
district from the minimum number of hours and days of pupil 21
instruction required under subdivision (a). 22
(iii) The vote by the district board under subparagraph (ii) 23
exempts the district from providing only the hours and days of 24
pupil instruction actually missed due to the state of emergency. 25
(iv) The vote by the district board under subparagraph (ii) 26
exempts the district from not more than 15 days of pupil 27
instruction required under subdivision (a). The amount that may be 28
exempted under this subdivision is in addition to any days counted 29
44

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
as pupil instruction under subsection (4). 1
(i) The superintendent shall promulgate rules for the 2
implementation of this subsection. 3
(4) All of the following apply to the counting of hours and 4
days of pupil instruction under this section: 5
(a) Except as otherwise provided in this subsection, the first 6
6 days or the equivalent number of hours for which pupil 7
instruction is not provided because of conditions not within the 8
control of school authorities, such as severe storms, fires, 9
epidemics, utility power unavailability, water or sewer failure, or 10
health conditions as defined by the city, county, or state health 11
authorities, are counted as hours and days of pupil instruction. 12
For the 2025-2026 school year only, a district may count up to 4 13
additional days in which pupil instruction is not provided because 14
of conditions not within the control of school authorities as 15
described in this subdivision as hours and days of pupil 16
instruction if all of the following apply: 17
(i) A district seeking to count up to 4 additional days as 18
hours and days of pupil instruction under this subdivision is 19
located wholly or partially in any of the following counties: 20
(A) Mason County. 21
(B) Lake County. 22
(C) Osceola County. 23
(D) Clare County 24
(E) Gladwin County. 25
(F) Arenac County. 26
(G) Manistee County. 27
(H) Wexford County. 28
(I) Missaukee County. 29
45

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
(J) Roscommon County. 1
(K) Ogemaw County. 2
(L) Iosco County. 3
(M) Benzie County. 4
(N) Grand Traverse County. 5
(O) Kalkaska County. 6
(P) Crawford County. 7
(Q) Oscoda County. 8
(R) Alcona County. 9
(S) Leelanau County. 10
(T) Antrim County. 11
(U) Otsego County. 12
(V) Montmorency County. 13
(W) Alpena County. 14
(X) Charlevoix County. 15
(Y) Emmet County. 16
(Z) Cheboygan County. 17
(AA) Presque Isle County. 18
(BB) Gogebic County. 19
(CC) Ontonagon County. 20
(DD) Houghton County. 21
(EE) Iron County. 22
(FF) Baraga County. 23
(GG) Marquette County. 24
(HH) Dickinson County. 25
(II) Menominee County. 26
(JJ) Alger County. 27
(KK) Delta County. 28
(LL) Schoolcraft County. 29
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CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
(MM) Luce County. 1
(NN) Chippewa County. 2
(OO) Mackinac County. 3
(PP) Keweenaw County. 4
(ii) A district described in subparagraph (i) was not able to 5
provide pupil instruction on March 12, 13, 16, or 17 due to 6
conditions not within the control of school authorities as 7
described in this subdivision. 8
(iii) A district described in subparagraph (i) counts only the 9
dates described in subparagraph (ii) in which pupil instruction was 10
not provided as additional hours and days of pupil instruction 11
under this subdivision. 12
(b) For the 2025-2026 school year only, a district located in 13
a county described in Executive Order No. 2026-7 or Executive Order 14
No. 2026-9 may count up to 5 additional days in which pupil 15
instruction is not provided because of conditions not within the 16
control of school authorities as described in Executive Order No. 17
2026-7 or Executive Order No. 2026-9 as hours and days of pupil 18
instruction. 19
(c) For the 2025-2026 school year only, a district located in 20
a county or region described in Executive Order No. 2026-11 may 21
count up to 4 additional days in which pupil instruction is not 22
provided because of conditions not within the control of school 23
authorities as described in Executive Order No. 2026-11 as hours 24
and days of pupil instruction. 25
(d) With the approval of the superintendent of public 26
instruction, the department shall count as hours and days of pupil 27
instruction for a fiscal year not more than 3 additional days or 28
the equivalent number of additional hours for which pupil 29
47

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
instruction is not provided in a district due to unusual and 1
extenuating occurrences resulting from conditions not within the 2
control of school authorities such as those conditions described in 3
this subsection. 4
(e) A district that counts hours or days of professional 5
development for teachers as hours or days of pupil instruction, as 6
provided under subsection (10), is eligible to have additional 7
hours or days counted as hours and days of pupil instruction as 8
provided under subdivision (d) to the same extent as a district 9
that does not count hours or days of professional development for 10
teachers as hours or days of pupil instruction. 11
(f) In deciding whether to approve the counting of additional 12
hours or days of pupil instruction under subdivision (d) for a 13
district, the superintendent of public instruction shall not take 14
into account whether or not the district counts hours or days of 15
professional development for teachers as hours or days of pupil 16
instruction, as provided under subsection (10). 17
(g) Subsequent hours or days beyond those described in 18
subdivisions (a) to (d) are not counted as hours or days of pupil 19
instruction. 20
(5) A district does not forfeit part of its state aid 21
appropriation because it adopts or has in existence an alternative 22
scheduling program for pupils in kindergarten if the program 23
provides at least the number of hours required under subsection (3) 24
for a full-time equated membership for a pupil in kindergarten as 25
provided under section 6(4). 26
(6) In addition to any other penalty or forfeiture under this 27
section, if at any time the department determines that 1 or more of 28
the following have occurred in a district, the district forfeits in 29
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CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
the current fiscal year beginning in the next payment to be 1
calculated by the department a proportion of the funds due to the 2
district under this article that is equal to the proportion below 3
the required minimum number of hours and days of pupil instruction 4
under subsection (3), as specified in the following: 5
(a) The district fails to operate its schools for at least the 6
required minimum number of hours and days of pupil instruction 7
under subsection (3) in a school year, including hours and days 8
counted under subsection (4). 9
(b) The board of the district takes formal action not to 10
operate its schools for at least the required minimum number of 11
hours and days of pupil instruction under subsection (3) in a 12
school year, including hours and days counted under subsection (4). 13
(7) In providing the minimum number of hours and days of pupil 14
instruction required under subsection (3), a district shall use the 15
following guidelines, and a district shall maintain records to 16
substantiate its compliance with the following guidelines: 17
(a) Except as otherwise provided in this subsection, a pupil 18
must be scheduled for at least the required minimum number of hours 19
of instruction, excluding study halls, or at least the sum of 90 20
hours plus the required minimum number of hours of instruction, 21
including up to 2 study halls. 22
(b) The time a pupil is assigned to any tutorial activity in a 23
block schedule may be considered instructional time, unless that 24
time is determined in an audit to be a study hall period. 25
(c) Except as otherwise provided in this subdivision, a pupil 26
in grades 9 to 12 for whom a reduced schedule is determined to be 27
in the individual pupil's best educational interest, or a pupil in 28
grades 6 to 8 for whom a reduced schedule is determined to be in 29
49

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
the individual pupil's best educational interest due to the pupil's 1
participation in an advanced curriculum, must be scheduled for a 2
number of hours equal to at least 80% of the required minimum 3
number of hours of pupil instruction to be considered a full-time 4
equivalent pupil. A pupil in grades 6 to 12 who is scheduled in a 5
4-block schedule may receive a reduced schedule under this 6
subsection if the pupil is scheduled for a number of hours equal to 7
at least 75% of the required minimum number of hours of pupil 8
instruction to be considered a full-time equivalent pupil. 9
(d) For a pupil in grades 9 to 12 enrolled in a cooperative 10
education program, or for a special education pupil, in determining 11
full-time equated membership for that pupil, the pupil is not 12
considered less than a full-time equated pupil solely because of 13
the effect of the pupil's enrollment in the cooperative education 14
program or special education program, including necessary travel 15
time, on the number of class hours provided by the district to the 16
pupil. 17
(e) In grades 7 through 12, instructional time that is part of 18
a Junior Reserve Officer Training Corps (JROTC) program is 19
considered to be pupil instruction time regardless of whether the 20
instructor is a certificated teacher if all of the following are 21
met: 22
(i) The instructor has met all of the requirements established 23
by the United States Department of Defense and the applicable 24
branch of the armed services for serving as an instructor in the 25
Junior Reserve Officer Training Corps program. 26
(ii) The board of the district or intermediate district 27
employing or assigning the instructor complies with the 28
requirements of sections 1230 and 1230a of the revised school code, 29
50

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
MCL 380.1230 and 380.1230a, with respect to the instructor to the 1
same extent as if employing the instructor as a regular classroom 2
teacher. 3
(8) Except as otherwise provided in subsections (11) and (12), 4
the department shall apply the guidelines under subsection (7) in 5
calculating the full-time equivalency of pupils. 6
(9) Upon application by the district for a particular fiscal 7
year, the superintendent shall waive for a district the minimum 8
number of hours and days of pupil instruction requirement of 9
subsection (3) for a department-approved alternative education 10
program or another innovative program approved by the department, 11
including a 4-day school week. If a district applies for and 12
receives a waiver under this subsection and complies with the terms 13
of the waiver, the district is not subject to forfeiture under this 14
section for the specific program covered by the waiver. If the 15
district does not comply with the terms of the waiver, the amount 16
of the forfeiture is calculated based upon a comparison of the 17
number of hours and days of pupil instruction actually provided to 18
the minimum number of hours and days of pupil instruction required 19
under subsection (3). A district shall report pupils enrolled in a 20
department-approved alternative education program under this 21
subsection to the center in a form and manner determined by the 22
center. All of the following apply to a waiver granted under this 23
subsection: 24
(a) If the waiver is for a blended model of delivery, a waiver 25
that is granted for the 2011-2012 fiscal year or a subsequent 26
fiscal year remains in effect unless it is revoked by the 27
superintendent. 28
(b) If the waiver is for a 100% online model of delivery and 29
51

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
the educational program for which the waiver is granted makes 1
educational services available to pupils for a minimum of at least 2
1,098 hours during a school year and ensures that each pupil is on 3
track for course completion at proficiency level, a waiver that is 4
granted for the 2011-2012 fiscal year or a subsequent fiscal year 5
remains in effect unless it is revoked by the superintendent. 6
(c) A waiver that is not a waiver described in subdivision (a) 7
or (b) is valid for 3 fiscal years, unless it is revoked by the 8
superintendent, and must be renewed at the end of the 3-year period 9
to remain in effect. 10
(10) A district may count up to 38 hours of professional 11
development for teachers as hours of pupil instruction. All of the 12
following apply to the counting of professional development as 13
pupil instruction under this subsection: 14
(a) If the professional development exceeds 5 hours in a 15
single day, that day may be counted as a day of pupil instruction. 16
(b) At least 8 hours of the professional development counted 17
as hours of pupil instruction under this subsection must be 18
recommended by a districtwide professional development advisory 19
committee appointed by the district board. The advisory committee 20
must be composed of teachers employed by the district who represent 21
a variety of grades and subject matter specializations, including 22
special education; nonteaching staff; parents; and administrators. 23
The majority membership of the committee must be composed of 24
teaching staff. 25
(c) Professional development provided online is allowable and 26
encouraged, as long as the instruction has been approved by the 27
district. The department shall issue a list of approved online 28
professional development providers that must include the Michigan 29
52

CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
Virtual School. 1
(d) Professional development may only be counted as hours of 2
pupil instruction under this subsection for the pupils of those 3
teachers scheduled to participate in the professional development. 4
(e) The professional development must meet all of the 5
following to be counted as pupil instruction under this subsection: 6
(i) Be aligned to the school or district improvement plan for 7
the school or district in which the professional development is 8
being provided. 9
(ii) Be linked to 1 or more criteria in the evaluation tool 10
developed or adopted by the district or intermediate district under 11
section 1249 of the revised school code, MCL 380.1249. 12
(iii) Has been approved by the department as counting for state 13
continuing education clock hours. The number of hours of 14
professional development counted as hours of pupil instruction 15
under this subsection may not exceed the number of state continuing 16
education clock hours for which the professional development was 17
approved. 18
(iv) Not more than a combined total of 10 hours of the 19
professional development takes place before the first scheduled day 20
of school for the school year ending in the fiscal year and after 21
the last scheduled day of school for that school year. 22
(v) Not more than 10 hours of the professional development 23
takes place in a single month. 24
(vi) At least 75% of teachers scheduled to participate in the 25
professional development are in attendance. 26
(11) Subsections (3) and (8) do not apply to a school of 27
excellence that is a cyber school, as that term is defined in 28
section 551 of the revised school code, MCL 380.551, and is in 29
53
Final Page
CRM H06143'26 (H-1)_HB5984_APH_1 a7c2eo
compliance with section 553a of the revised school code, MCL 1
380.553a. Beginning July 1, 2021, this subsection is subject to 2
section 8c. It is the intent of the legislature that the 3
immediately preceding sentence apply retroactively and is effective 4
July 1, 2021. 5
(12) Subsections (3) and (8) do not apply to eligible pupils 6
enrolled in a dropout recovery program that meets the requirements 7
of section 23a. As used in this subsection, "eligible pupil" means 8
that term as defined in section 23a. 9
(13) At least every 2 years the superintendent shall review 10
the waiver standards set forth in the pupil accounting and auditing 11
manuals to ensure that the waiver standards and waiver process 12
continue to be appropriate and responsive to changing trends in 13
online learning. The superintendent shall solicit and consider 14
input from stakeholders as part of this review. 15
(14) For a public innovative program operated under section 16
1278e of the revised school code, MCL 380.1278e, the department may 17
waive any of the requirements of this section as the department 18
determines necessary to enable the operation of the public 19
innovative program. 20
Enacting section 1. This amendatory act does not take effect 21
unless Senate Bill No. ____ (request no. S06311'26) or House Bill 22
No. 5983 of the 103rd Legislature is enacted into law. 23