2017 Senate Bill 574 / 2018 Public Act 23

Require ISDs share “enhancement” property taxes with charter schools

Introduced in the Senate

Sept. 14, 2017

Introduced by Sen. Dave Hildenbrand (R-29)

To require revenue extracted by “regional enhancement” property taxes levied by Intermediate School Districts and distributed to conventional public school districts to also be shared with public charter schools within the ISD district.

Referred to the Committee on Finance

In the House

Sept. 14, 2017

Referred to the Committee on Education

In the Senate

Oct. 11, 2017

Reported without amendment

With the recommendation that the substitute (S-3) be adopted and that the bill then pass.

Oct. 17, 2017

Amendment offered

To only distribute ISD "enhancement" property tax revenue to charter schools in existence when the tax hike is approved by voters.

The amendment passed by voice vote

Oct. 18, 2017

Amendment offered by Sen. Hoon-Yung Hopgood (D-6)

To require any property or assets acquired by a charter school using any money from an ISD "enhancement" tax is considered public property and not owned by managers or board members of the charter.

The amendment failed 15 to 22 (details)

Amendment offered by Sen. Hoon-Yung Hopgood (D-6)

To require charter schools to pay into the school pension system as a condition of getting any revenue from an ISD "enhancement" tax, even though only a small number of charters have any employees enrolled in the system.

The amendment failed 12 to 25 (details)

Amendment offered by Sen. Hoon-Yung Hopgood (D-6)

To require a charter school to have an elected board of trustees in order to get any revenue from an ISD "enhancement" tax.

The amendment failed 12 to 25 (details)

Amendment offered by Sen. Judy Emmons (R-33)

To require a charter school that gets any revenue from an ISD "enhancement" tax to use that money to benefit a school building within the ISD, and only allow it to get the money if at least 80 percent of its students live within the ISD district.

The amendment passed by voice vote

Passed in the Senate 23 to 14 (details)

Received in the House

Oct. 18, 2017

Referred to the Committee on Education Reform

Nov. 2, 2017

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Jan. 18, 2018

Amendment offered by Rep. Martin Howrylak (R-41)

To require charter schools to pay into the school pension system as a condition of getting any revenue from an ISD "enhancement" tax, even though only a small number of charters have any employees enrolled in the system.

The amendment failed by voice vote

Amendment offered by Rep. Jeremy Moss (D-35)

To prohibit charter schools that contract with an education management company from getting a share of enhancement millage revenue.

The amendment failed by voice vote

Amendment offered by Rep. Bill Sowerby (D-31)

To prohibit a charter school that contracts with a for-profit education management company from getting any ISD enhancement tax money.

The amendment failed by voice vote

Amendment offered by Rep. Kristy Pagan (D-21)

To tie-bar the bill to Senate Joint Resolution D or House Joint Resoluton Z, meaning this bill cannot become law unless that one does also. Those measures would amend the state constitution to prohibit a charter school board from contracting with a for-profit education management company run the school.

The amendment failed by voice vote

Amendment offered by Rep. Christine Greig (D-37)

To tie-bar the bill to House Bills 5286 to 5294, meaning this bill cannot become law unless that one does also. HB 5456 began as the same bill, but the provisions of it and this bill were divided up between both bills. Those bills would impose additional charter school restrictions, requirements and disclosures.

The amendment failed by voice vote

Amendment offered by Rep. Laura Cox (R-19)

To only give charter schools half the amount of enhancement tax revenue per student than conventional school districts get.

The amendment failed by voice vote

Amendment offered by Rep. Jim Tedder (R-43)

To require 100 percent of its students to reside within the ISD for a "cyber-school" operating under a form of state receivership (which has the label "school of excellence") as a condition of to getting a share of the money, rather than 80 percent of them.

The amendment passed by voice vote

Amendment offered by Rep. Larry Inman (R-104)

To not allow a charter to get the money if there are unresolved problems revealed by recent financial audits, and also require a charter to have a special education program that complies with state and federal law as a condition of getting the money. Note: Under current law charter schools are subject to the same requirement to serve special education students as district schools.

The amendment passed by voice vote

Passed in the House 55 to 52 (details)

To require revenue extracted by future “regional enhancement” property taxes that are levied by Intermediate School Districts and distributed to conventional public school districts to also be shared with public charter schools within the ISD district. Also, to let the ISD itself get some of the money.

Received in the Senate

Jan. 24, 2018

Passed in the Senate 23 to 14 (details)

To concur with the House-passed version of the bill, which establishes that it only applies to future "enhancement" millages, not ones that have already been approved by voters.

Signed by Gov. Rick Snyder

Feb. 12, 2018