(1) An intermediate school board in which an area career and technical education program has been established may operate area career and technical education programs or may contract with local school districts or with community colleges for the operation of the programs or with a private degree-granting postsecondary institution if the intermediate school district is not within a community college district and if there existed on or before July 1, 1992 a written agreement for the operation of such a program. Area career and technical education programs operated under section 681 to 690 shall be submitted for review of the representatives of the constituent districts of the intermediate school district at an annual budget review meeting held on or before June 1 under section 624.

    (2) An intermediate school board may expend area career and technical education funds for the operation of area career and technical education programs for instructional, support, and administrative costs associated with providing career and technical education activities, including, but not limited to, staff salaries, wages, and benefits for career and technical education programs only; information and awareness activities; acquisition and rental of real property; construction of buildings; acquisition of equipment and supplies; and maintenance, repair, and replacement of buildings, lands, equipment, and supplies. An intermediate school board shall not expend area career and technical education funds for purposes other than those set forth in section 681 to 690. An intermediate school board must obtain state approval to use state or federal career and technical education funds. Expenditure of vocational education millage revenue for the purposes allowed under this subsection shall be determined by the intermediate school board. However, if the millage revenue is commingled with state or federal funds, then the intermediate school district must obtain state approval to use the commingled funds. If an audit by or on behalf of the department determines that an intermediate school board has expended area career and technical education funds for a purpose other than those set forth in section 681 to 690, the intermediate school district is subject to the measures under section 681(5) and (6).

    (3) The intermediate school board shall ensure that all of the following are met:

    (a) The intermediate school board shall notify the department at the time the area career and technical education program is established.

    (b) In order to be responsive to local workforce needs, emerging technologies, and local demand occupations, the intermediate school district shall establish a program advisory committee pursuant to administrative guidelines established by the office of career and technical preparation within the department. At least a majority of the members of the program advisory committee shall be representatives from business and industry.

    (c) The program shall collect career and technical education information data and distribute that data to the appropriate state department or departments and to the program advisory committee. For the purposes of this subdivision, the department or CEPI shall only require an intermediate school district to report information that is not already available from the financial information database maintained by CEPI.

    (d) The intermediate school district shall submit its career and technical education plan to the department in the form and manner prescribed by the department. For the purposes of this subdivision, the department or CEPI shall only require an intermediate school district to report information that is not already available from the financial information database maintained by CEPI.

    (4) The department may monitor career and technical education programs funded with state or federal funding based upon feedback from the program advisory committee and predetermined state or federal skills standards that include student outcomes.

    (5) The department, in consultation with the appropriate career and technical education professionals, shall develop a process for expedited state approval of programs that recognize local workforce needs, emerging technologies, and local demand occupations.

    (6) If there is a community college that offers career and technical preparation programs within the intermediate school district, the intermediate school board shall collaborate with the community college to minimize duplication of programs.

    (7) An area career and technical education program shall allow participation by public school academy and nonpublic school pupils to the same extent as pupils of constituent districts.

    (8) An intermediate school board operating under section 681 to 690 may expend funds received under section 683 for the costs of a special election held to renew or increase the millage limit on the annual property tax levied for area career and technical education purposes.

    (9) The treasurer of an intermediate school board shall pay out area career and technical education funds on order of the intermediate school board.

    (10) As used in this section, “CEPI” means the center for educational performance and information created in section 94a of the state school aid act of 1979, MCL 388.1694a.