Prohibited conduct; employing individuals; misdemeanor; penalty.

Sec. 163. (1) Except as otherwise provided in the revised school code or rules promulgated by the department, the board of a district or intermediate district shall not permit any of the following: (a) An individual who is not appropriately placed under a valid certificate, valid substitute permit, authorization, or approval issued under rules promulgated by the department to teach in an elementary or secondary school. (b) An individual who does not satisfy the requirements of section 1233 of the revised school code, MCL 380.1233, and rules promulgated by the department to provide school counselor services to pupils in an elementary or secondary school. (c) An individual who does not satisfy the requirements of section 1246 of the revised school code, MCL 380.1246, and rules promulgated by the department to be employed as a superintendent, principal, assistant principal, or as an individual whose primary responsibility is to administer instructional programs in an elementary or secondary school or in a district or intermediate district, unless the individual is working under a valid substitute permit issued under rules promulgated by the department. (2) If the department or the department's designee determines that a district or intermediate district has employed or assigned an individual in violation of this section, the department or the department's designee shall provide written notice of noncompliance to the district or intermediate district. The written notice must identify the individual, the affected assignment, the nature of the noncompliance, and the date on which the notice is issued. The written notice must also state that the district or intermediate district has 15 school days after receiving the notice to correct the noncompliance before a state aid adjustment is imposed under this section. (3) Except as otherwise provided under subsection (5), if a district or intermediate district does not correct an instance of noncompliance within 15 school days after receiving the written notice under subsection (2), the department shall make a state aid adjustment as follows: (a) If the district or intermediate district does not correct the noncompliance within 15 school days after receiving written notice under subsection (2), the department shall make a state aid adjustment of $50,000.00 on the sixteenth school day after the district or intermediate district receives the notice. (b) Beginning on the seventeenth school day after the district or intermediate district receives the notice, the department shall make an additional state aid adjustment of $1,000.00 for each school day the individual continues to be employed or assigned in violation of this section. (c) The total state aid adjustment under this subsection must not exceed $100,000.00 per individual per assignment per fiscal year. (d) No state aid adjustment shall be made for any period of noncompliance that occurs before the district or intermediate district receives written notice under subsection (2). (e) No state aid adjustment shall be made if the district or intermediate district corrects the noncompliance within 15 school days after receiving written notice under subsection (2). (4) A determination of noncompliance under subsection (2) is final unless the district or intermediate district requests review by the superintendent of public instruction within 30 calendar days after receiving the written notice under subsection (2). A request for review does not stay the 15-school-day correction period or the accrual of a state aid adjustment under subsection (3), unless the superintendent of public instruction determines that a stay is warranted. (5) A state aid adjustment under subsection (3) may be reduced or waived, in whole or in part, if the superintendent of public instruction finds that the district or intermediate district was hindered in its ability to comply with this section due to unusual and extenuating circumstances resulting from conditions not within the control of school authorities. Unusual and extenuating circumstances under this subsection may include, but are not limited to, a natural disaster, death or serious illness of the individual or another employee, an emergency school closure, a documented technical issue with the systems used to obtain the required certification, permit, authorization, or approval, fraud or other intentional wrongdoing of the individual or another employee, or an emergency health condition as defined by city, county, or state health authorities. In determining whether to reduce or waive a state aid adjustment, the superintendent of public instruction may consider whether the district or intermediate district had adequate systems and procedures in place to prevent noncompliance and whether the district or intermediate district took timely and reasonable action to correct the noncompliance after discovering or being notified of the violation. (6) A state aid adjustment under this section for an educator misplacement is in lieu of any membership adjustment under section 6 or section 15 based on the same individual, district or intermediate district, assignment, and period of noncompliance. (7) If a school official is notified by the department or the department's designee that the school official is employing or assigning an individual in violation of this section and knowingly continues to employ or assign that individual in violation of this section, the school official is guilty of a misdemeanor punishable by a fine of $1,500.00 for each incident. This penalty is in addition to any state aid adjustment imposed under this section. (8) As used in this section: (a) "Assignment" means a specific class, course, subject area, instructional setting, administrative position, school counselor position, or other position for which an individual is responsible. (b) "Educator misplacement" means the employment or assignment of an individual in violation of subsection (1). (c) "School day" means a day on which pupils are scheduled to receive instruction in the affected building, program, or assignment. (d) "Written notice" means notice issued by the department or its designee to the district or intermediate district identifying a violation of this section.