HB 5984 — 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 SUBSTITUTE FOR HOUSE BILL NO.

(1) "Center program" means a program operated by a district or by an intermediate district for special education pupils from several districts in programs for pupils with autism spectrum disorder, pupils with severe cognitive impairment, pupils with moderate cognitive impairment, pupils with severe multiple impairments, pupils with hearing impairment, pupils with visual impairment, and pupils with physical impairment or other health CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 impairment.

(4) "Membership", except as otherwise provided in this article, means for a district, a public school academy, or an intermediate district the sum of the product of .90 times the number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance in the district, public school academy, or intermediate district on the pupil membership count day for the current school year, plus the product of .10 times the final audited count from the supplemental count day of CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance in the district, public school academy, or intermediate district for the immediately preceding school year.

(b) If a pupil is educated in a district other than the pupil's district of residence, if the pupil is not being educated as part of a cooperative education program, if the pupil's district of residence does not give the educating district its approval to count the pupil in membership in the educating district, and if the pupil is not covered by an exception specified in subsection (6) to the requirement that the educating district must have the approval CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 of the pupil's district of residence to count the pupil in membership, the pupil is not counted in membership in any district.

Beginning CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 July 1, 2021, this subdivision is subject to section 8c.

(iii) For a pupil using sequential learning, the participation CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 requirement under this subdivision is satisfied if either of the following occurs:

(II) "Mentor" means a professional employee of the district CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 who monitors the pupil's progress, ensures the pupil has access to needed technology, is available for assistance, and ensures access to the teacher of record.

CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 (II) Documented completion of a course assignment.

(i) If operations begin before the pupil membership count day for the fiscal year, membership is the average number of full-time equated pupils in grades K to 12 actually enrolled and in regular daily attendance on the pupil membership count day for the current school year and on the supplemental count day for the current school year, as determined by the department and calculated by adding the number of pupils registered for attendance on the pupil membership count day plus pupils received by transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as corrected by a subsequent department audit, plus the final audited count from the supplemental count day for the current CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 school year, and dividing that sum by 2.

CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 (ii) A pupil who is determined by the department to meet all of the following may be counted in membership:

(n) If a pupil counted in membership in a public school academy is also educated by a district or intermediate district as CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 part of a cooperative education program, the pupil is counted in membership only in the public school academy unless a written agreement signed by all parties designates the party or parties in which the pupil is counted in membership, and the instructional time scheduled for the pupil in the district or intermediate district is included in the full-time equated membership determination under subdivision (q) and section 101.

(ii) If the public school academy provides instruction for less than 1/2 of the class hours required under section 101, the district or intermediate district providing the remainder of the hours of instruction receives as its prorated share of the full- time equated membership for each of those pupils an amount equal to 1 times the product of the hours of instruction the district or intermediate district provides divided by the number of hours required under section 101 for full-time equivalency, and the remainder of the full-time membership for each of those pupils is CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 allocated to the public school academy.

However, to the extent allowable under federal law, for a district or public school academy that provides evidence satisfactory to the department that it used federal title I money in the 2 immediately preceding school fiscal years to fund full-time kindergarten, full-time equated memberships for pupils in kindergarten are determined by dividing the number of class hours scheduled and provided per year per kindergarten pupil by a number CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 equal to 1/2 the number used for determining full-time equated memberships for pupils in grades 1 to 12.

(u) If, as a result of a disciplinary action, a district determines through the district's alternative or disciplinary education program that the best instructional placement for a pupil is in the pupil's home or otherwise apart from the general school population, if that placement is authorized in writing by the district superintendent and district alternative or disciplinary education supervisor, and if the district provides appropriate instruction as described in this subdivision to the pupil at the CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 pupil's home or otherwise apart from the general school population, the district may count the pupil in membership on a pro rata basis, with the proration based on the number of hours of instruction the district actually provides to the pupil divided by the number of hours required under section 101 for full-time equivalency.

(w) For a public school academy that has been in operation for at least 2 years and that suspended operations for at least 1 semester and is resuming operations, membership is the sum of the product of .90 times the number of full-time equated pupils in CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 grades K to 12 actually enrolled and in regular daily attendance on the first pupil membership count day or supplemental count day, whichever is first, occurring after operations resume, plus the product of .10 times the final audited count from the most recent pupil membership count day or supplemental count day that occurred before suspending operations, as determined by the superintendent.

The membership figure calculated under this CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 subdivision is the greater of the following:

If a pupil described in this subdivision was CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 counted in membership by the operating district on the immediately preceding supplemental count day, the pupil is excluded from the district's immediately preceding supplemental count for the purposes of determining the district's membership.

The district operating the program shall report to the center the number of pupils who were enrolled CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 in the program and were in full attendance for a month not later than 30 days after the end of the month.

(ff) If a public school academy that is not in its first or second year of operation closes at the end of a school year and does not reopen for the next school year, the department shall adjust the membership count of the district or other public school academy in which a former pupil of the closed public school academy CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 enrolls and is in regular daily attendance for the next school year to ensure that the district or other public school academy receives the same amount of membership aid for the pupil as if the pupil were counted in the district or other public school academy on the supplemental count day of the preceding school year.

(ii) The course in which the pupil is enrolled would meet the CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 definition of an eligible course under the postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, if the course were provided by an eligible postsecondary institution under that act.

(kk) A pupil enrolled in a middle college program may be counted for more than a total of 1.0 full-time equated membership for any of the school years in which the pupil is enrolled in the middle college program, but the total full-time equated membership for that pupil for all of the school years in which the pupil is enrolled in high school must not be greater than 5.00 full-time equated membership if the pupil is enrolled in more than the minimum number of instructional days and hours required under section 101 and the pupil is expected to complete the 5-year CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 program with both a high school diploma and at least 60 transferable college credits or is expected to earn an associate's degree in fewer than 5 years.

(B) Ten percent more than the district's or public school academy's membership for pupils counted under section 166b in the CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 immediately preceding fiscal year.

(e) A pupil who has made an official written complaint or whose parent or legal guardian has made an official written complaint to law enforcement officials and to school officials of the pupil's district of residence that the pupil has been the victim of a criminal sexual assault or other serious assault, if the official complaint either indicates that the assault occurred at school or that the assault was committed by 1 or more other pupils enrolled in the school the pupil would otherwise attend in CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 the district of residence or by an employee of the district of residence.

CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 (iv) The pupil has been referred to the program by a court.

However, if a district educates pupils who reside in another district and if the primary instructional site for those CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 pupils is established by the educating district after 2009-2010 and is located within the boundaries of that other district, the educating district must have the approval of that other district to count those pupils in membership.

(8) "Pupils in grades K to 12 actually enrolled and in regular daily attendance" means, except as otherwise provided in this section, pupils in grades K to 12 in attendance and receiving instruction in all classes for which they are enrolled on the pupil CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 membership count day or the supplemental count day, as applicable.

(a) "Appropriately placed" means holding a valid Michigan educator credential with the required grade range and discipline or CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 subject area for the assignment, as defined by the superintendent of public instruction.

(14) "Superintendent", unless the context clearly refers to a district or intermediate district superintendent, means the superintendent of public instruction described in section 3 of CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 article VIII of the state constitution of 1963.

(20) "Total state aid" or "total state school aid", except as otherwise provided in this article, means the total combined amount CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 of all funds due to a district, intermediate district, or other entity under this article.

Within 15 days after a district board adopts its annual operating budget for the following school fiscal year, or after a district board adopts a subsequent revision to that budget, the district shall make all of the following available through a link on its website homepage, or CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 may make the information available through a link on its intermediate district's website homepage, in a form and manner prescribed by the department:

(ii) Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long-term care, or any other type of benefits that would constitute health care services, CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 offered to any bargaining unit or employee in the district.

(h) Identification of all credit cards maintained by the district as district credit cards, the identity of all individuals CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 authorized to use each of those credit cards, the credit limit on each credit card, and the dollar limit, if any, for each individual's authorized use of the credit card.

A district or intermediate district shall retain these records for the current fiscal year and from at least the 3 CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 immediately preceding fiscal years.

(ii) The intermediate district shall file the annual financial CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 audit reports for the intermediate district with the department.

(5) By the first business day in November of each fiscal year, each district and intermediate district shall submit to the center, in a manner prescribed by the center, annual comprehensive financial data consistent with the district's or intermediate district's audited financial statements and consistent with CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 accounting manuals and charts of accounts approved and published by the department.

(8) The department shall review its pupil accounting and pupil CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 auditing manuals at least annually and shall periodically update those manuals to reflect changes in this article.

(11) If a district or intermediate district does not comply CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 with subsection (2), the department may withhold up to 10% of the total state school aid due to the district or intermediate district under this article, beginning with the next payment due to the district or intermediate district, until the district or intermediate district complies with subsection (2).

(14) As used in subsections (12) and (13), "vendor type" means CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 the following:

(1) To be eligible to receive state aid under this article, not later than the fifth Wednesday after the pupil membership count day and not later than the fifth Wednesday after the supplemental count day, each district superintendent shall submit and certify to the center and the intermediate superintendent, in the form and manner prescribed by the center, the number of pupils enrolled and in regular daily attendance, including identification of tuition-paying pupils, in the district as of the pupil membership count day and as of the supplemental CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 count day, as applicable, for the current school year.

(2) To be eligible to receive state aid under this article, not later than the twenty-fourth Wednesday after the pupil membership count day and not later than the twenty-fourth Wednesday after the supplemental count day, an intermediate district shall submit to the center, in a form and manner prescribed by the center, the audited enrollment and attendance data as described in CRM H06143'26 (H-1)(H-1)_HB5984_APH_1 st6nv1a7c2eo 1 subsection (1) for the pupils of its constituent districts and of the intermediate district.