MI SB0950

Establishes three pathways for school district dissolution: insufficient qualified residents to fill school board positions, financial insolvency determination by state officials, or school board adoption of voluntary dissolution resolution.

Requires dissolution to be effective at the end of the school fiscal year, with territory attached to one or more other organized school districts within the intermediate school district effective the first day of the next school fiscal year.

Transfers all real property owned by dissolved districts to the state land bank authority, with a prioritized disposition process: first 90 days for receiving school districts, next 90 days for contiguous non-receiving districts, next 90 days for intermediate school districts, then public auction.

Allows dissolved districts with outstanding debt to retain limited separate identity as a taxing unit, with intermediate school board performing debt-related functions including tax certification, levy, and debt retirement fund management.

Excludes test scores from dissolved district pupils from adequate yearly progress determinations and performance evaluations of receiving district employees for 3 school years post-dissolution, and prohibits higher tax rates in dissolved district territory without voter approval.