MI HB5384

Creates "community districts" as successor entities to qualifying school districts (those with fewer than 100,000 pupils) effective July 1, 2016, with a transition manager appointed by the governor to oversee operations until elected school board takes office.

Establishes community district accountability system assigning letter grades (A-F) based on proficiency, growth, and nonacademic measures, with authority to close persistently low-performing schools after 3 years of F grades.

Requires community districts to implement performance-based compensation systems prioritizing student growth and job performance for teachers and administrators hired after accountability system implementation.

Transfers qualifying school district assets, property, and employees to community districts on transfer date, with qualifying districts retaining limited identity only for debt repayment until outstanding obligations are satisfied and certified by state treasurer.

Requires accreditation of authorizing bodies issuing contracts for public school academies, urban high school academies, and schools of excellence within community districts; prohibits new charters at same location as closed schools without substantially different leadership and curriculum.