HB-5850, As Passed House, September 8, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5850

                                                                             A bill to amend 1976 PA 451, entitled                                             

"The revised school code,"                                                  

by amending section 1804 (MCL 380.1804) and by adding sections              

1814, 1815, and 1816.                                                       

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 1804.   A Except as otherwise provided in this act, a

2   school official or member of a school board or intermediate                 

3   school board or other person who neglects or refuses to do or               

4   perform an act required by this act, or who violates or knowingly           

5   permits or consents to a violation of this act, is guilty of a              

6   misdemeanor punishable by a fine not more than $500.00, or                  

7   imprisonment for not more than 3 months, or both.                           

8   Sec. 1814.  (1) Except as otherwise provided in subsection                  

9   (2), a person shall not use intermediate school district funds or           

10  other public funds under the control of the intermediate school             

1   district for purchasing alcoholic beverages, jewelry, gifts, fees           

2   for golf, or any item the purchase or possession of which is                

3   illegal.                                                                    

4       (2) Subsection (1) does not prohibit the use of public funds                

5   for the purchase of a plaque, medal, trophy, or other award for             

6   the recognition of an employee, volunteer, or pupil if the                  

7   purchase does not exceed $100.00 per recipient.  Beginning                  

8   January 1, 2005, the monetary amount for this exception shall be            

9   adjusted each January 1 pursuant to the annual average percentage           

10  increase or decrease in the Detroit consumer price index--all               

11  items.  The adjustment for each year shall be made by comparing             

12  the percentage increase or decrease in the Detroit consumer price           

13  index for the preceding August by the corresponding Detroit                 

14  consumer price index--all items 1 year earlier.  The resultant              

15  percentage change shall then be multiplied by the affected                  

16  monetary amount.  These results shall be rounded up to the                  

17  nearest dollar and added to or subtracted from the current                  

18  monetary amounts as previously adjusted by this subsection to               

19  determine the new amount for that year.  The adjustment shall               

20  apply only to expenditures or violations occurring after the date           

21  of the adjusting of the amount.  The adjusted amount shall be               

22  determined and announced by the department on or before December            

23  15 of each year and shall be provided to all persons requesting             

24  the adjusted amount.  If the index is unavailable, the department           

25  shall make a reasonable approximation.                                      

26  (3) In addition to any other penalty provided by law, a                     

27  person who violates subsection (1) is guilty of a crime                     

1   punishable by imprisonment for not more than 93 days or a fine,             

2   or both.  The amount of the fine shall be as follows:                       

3       (a) If the cumulative amount of the funds that were used by                 

4   the person in violation of subsection (1) is less than $5,000.00,           

5   up to $1,000.00.                                                            

6       (b) If the cumulative amount of the funds that were used by                 

7   the person in violation of subsection (1) is at least $5,000.00             

8   and less than $10,000.00, at least $1,000.00 and not to exceed              

9   $2,000.00.                                                                  

10      (c) If the cumulative amount of the funds that were used by                 

11  the person in violation of subsection (1) is at least $10,000.00            

12  and less than $15,000.00, at least $2,000.00 and not to exceed              

13  $3,000.00.                                                                  

14      (d) If the cumulative amount of the funds that were used by                 

15  the person in violation of subsection (1) is at least $15,000.00            

16  and less than $25,000.00, at least $3,000.00 and not to exceed              

17  $4,000.00.                                                                  

18      (e) If the cumulative amount of the funds that were used by                 

19  the person in violation of subsection (1) is $25,000.00 or more,            

20  at least $4,000.00.                                                         

21      (4) A court shall order a person convicted of a violation of                

22  subsection (1) to make restitution to the affected intermediate             

23  school district.                                                            

24      (5) As used in this section, "public funds" means funds                     

25  generated from taxes levied under this act, state appropriations            

26  of state or federal funds, or payments to the intermediate school           

27  district for services, but does not include voluntary                       

1   contributions made for a specific purpose by an intermediate                

2   school district board member, an intermediate school district               

3   employee, another individual, or a private entity.                          

4       Sec. 1815.  A person who knowingly or intentionally violates                

5   the competitive bidding requirements of section 1267, or who                

6   knowingly or intentionally permits or consents to a violation of            

7   the competitive bidding requirements of section 1267, is guilty             

8   of a crime punishable by a fine in an amount equal to not more              

9   than 10% of the cost of the project involved in the violation or            

10  imprisonment for not more than 1 year, or both, but is not                  

11  subject to the penalties of section 1804.

12  Sec. 1816.  A person who knowingly or intentionally uses the                

13  proceeds of bonds issued under this act for a purpose other than            

14  a purpose for which the bonds were issued, as stated in the                 

15  ballot proposal authorizing the issuance of the bonds, or who               

16  knowingly or intentionally permits or consents to such a misuse             

17  of the proceeds of bonds issued under this act, is guilty of a              

18  crime punishable by a fine in an amount equal to not more than              

19  10% of the cost of the project involved in the violation or                 

20  imprisonment for not more than 1 year, or both, but is not                  

21  subject to the penalties of section 1804.