H07112'04 (H-4)

HB-5921, As Passed House, September 8, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5921

A bill to amend 1976 PA 451, entitled

"The revised school code,"

by amending sections 611, 612, 614, 614a, 616, 617, and 701 (MCL

380.611, 380.612, 380.614, 380.614a, 380.616, 380.617, and

380.701), section 611 as amended by 1981 PA 87, section 614 as

amended by 2004 PA 233, section 614a as added by 2004 PA 234, and

sections 616, 617, and 701 as amended by 2003 PA 299, and by

adding section 634.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 611. (1) An Except as otherwise provided in this

2 section, an intermediate school district shall be under the

3 supervision and control of an intermediate school board composed

4 of 5 members elected under this part. ~~, except that in~~

5 (2) In an intermediate school district ~~which~~ that adopts

6 sections 615 to 617 for popular election of its members, or in an

1 intermediate school district reorganized under section 701, the

2 number of intermediate school board members shall be 7.

3 (3) In an intermediate school district whose boundaries are

4 enlarged by a dissolution under section 703, the number of

5 intermediate school board members, at the option of the

6 intermediate school board, may be 7.

7 (4) Beginning on the effective date of this subsection, an

8 intermediate school board may by resolution change the number of

9 intermediate school board members to 7. Before adopting the

10 resolution to change the number of intermediate school board

11 members to 7, an intermediate school board shall hold at least 2

12 public hearings on the resolution. If an intermediate school

13 board determines that the terms of intermediate school board

14 members should be staggered differently than provided under this

15 act or any bylaws of the intermediate school board due to a

16 change in the number of board members under this subsection, the

17 intermediate school board may adopt bylaws or amend its bylaws to

18 change the way that intermediate school board members' terms are

19 staggered. The bylaws may alter the current terms of members

20 serving at the time the bylaws are adopted to implement the

21 change in the way that terms are staggered. If an intermediate

22 school board adopts or amends bylaws under this subsection that

23 alter a member's existing term, the member's term is subject to

24 that action.

25 Sec. 612. (1) A Subject to subsection (2), a school

26 elector of a constituent district ~~shall be~~ is eligible to

27 election or appointment to membership on the intermediate school

1 board. A

2 (2) Until the 2005 intermediate school board election, a

3 member of a board of a constituent district ~~shall be~~ is

4 eligible to election or appointment to membership on the

5 intermediate school board. Beginning with the 2005 intermediate

6 school board election, not more than 3 members of the

7 intermediate school board may also be serving at the same time as

8 a member of the board of a constituent district or board of

9 directors of a public school academy. However, if an

10 intermediate school board has more than 3 members serving as of

11 September 1, 2004 who are also serving at the same time as

12 members of the board of a constituent district, this limitation

13 does not apply to that intermediate school board until the

14 expiration of the current terms of those intermediate school

15 board members.

16 (3) ~~(2)~~ A member of an intermediate school board who is a

17 member of a constituent district board shall not participate in

18 proceedings conducted pursuant to part 11 to detach territory

19 from or attach territory to the constituent district of which he

20 or she is a board member.

21 Sec. 614. (1) Except as provided in section 615 and subject

22 to subsection (4) and section 642 of the Michigan election law,

23 MCL 168.642, the members of the intermediate school board shall

24 be elected biennially on the first Monday in June by an electoral

25 body composed of 1 person designated by the board of each

26 constituent school district.

27 (2) The board of a constituent district shall designate its

1 representative to this electoral body by resolution adopted not

2 earlier than 21 days before the date of ~~this biennial~~ the

3 election under this section. The board shall consider the

4 resolution at not less than 2 public meetings before adopting the

5 resolution. The resolution shall be adopted by majority vote of

6 the members serving on the board. In its resolution designating

7 its representative, the board of a constituent district shall

8 identify the candidate the board supports for each position to be

9 filled on the intermediate school board and shall direct its

10 representative to vote for that individual or individuals at

11 least on the first ballot taken by the electoral body. The

12 secretary of the intermediate school board shall send a notice by

13 certified mail of the hour and place of the meeting of the

14 electoral body described in subsection (1) to the secretary of

15 the board of each constituent school district at least 10 days

16 before the meeting. The president and secretary of the

17 intermediate school board shall act as chairperson and secretary

18 at the meeting. The meeting of the electoral body shall be an

19 open meeting conducted in the manner prescribed under the open

20 meetings act, 1976 PA 267, MCL 15.261 to 15.275.

21 (3) Except as provided in section 703, the term of office of

22 each member elected to the intermediate school board is 6 years.

23 ~~and~~ However, beginning with the terms of intermediate school

24 board members elected after January 1, 2009, the term of office

25 of each member elected to the intermediate school board is 4

26 years. The term of an intermediate school board member begins on

27 July 1 following election. Not more than 2 members of the

1 intermediate school board shall be from the same school district

2 unless there are fewer districts than there are positions to be

3 filled.

4 (4) Not later than April 1, 2005, each intermediate school

5 board shall adopt bylaws for election of intermediate school

6 board members that will provide for the transition to 4-year

7 terms under subsection (3) and that will provide for annual

8 election of members under this section. All of the following

9 apply to these bylaws:

10 (a) The bylaws shall ensure that all members are elected for

11 4-year terms beginning with the election in 2009.

12 (b) The bylaws shall ensure that at least 1 member is elected

13 each year.

14 (c) The bylaws may alter the current terms of members serving

15 at the time the bylaws are adopted. If an intermediate school

16 board adopts bylaws under this subsection that alter a member's

17 existing term, the member's term is subject to that action.

18 (5) ~~(4)~~ A vacancy shall be filled by the remaining members

19 of the intermediate school board until the next ~~biennial~~

20 election under this section at which time the vacancy shall be

21 filled for the balance of the unexpired term. Notice of the

22 vacancy shall be filed with the state board within 5 days after

23 the vacancy occurs. If the vacancy is not filled within 30 days

24 after it occurs, the vacancy shall be filled by the state board.

25 (6) ~~(5)~~ Subject to subsection ~~(7)~~ (8), a candidate for

26 election to the intermediate school board shall be nominated by

27 petitions that are signed by a number of school electors of the

1 combined constituent school districts of the intermediate school

2 district, as follows:

3 (a) If the population of the intermediate school district is

4 less than 10,000 according to the most recent federal census, a

5 minimum of 6 and a maximum of 20.

6 (b) If the population of the intermediate school district is

7 10,000 or more according to the most recent federal census, a

8 minimum of 40 and a maximum of 100.

9 (7) ~~(6)~~ A school elector may sign as many petitions as

10 there are vacancies to fill. Nominating petitions and an

11 affidavit as provided in section 558 of the Michigan election

12 law, 1954 PA 116, MCL 168.558, shall be filed with the school

13 district filing official not later than 30 days before the date

14 of the biennial election under subsection (1). The school

15 district filing official shall determine the sufficiency of the

16 petitions and the eligibility of the candidates nominated. The

17 school district filing official shall provide ballots for the

18 biennial election, listing on the ballots the names of all

19 candidates properly nominated. The chairperson of the biennial

20 election meeting may accept nominations for a vacancy from the

21 floor only if no nominating petitions have been filed for the

22 vacancy.

23 (8) ~~(7)~~ Instead of filing nominating petitions, a candidate

24 for election to the intermediate school board may pay a

25 nonrefundable filing fee of $100.00 to the school district filing

26 official. If this fee is paid by the due date for nominating

27 petitions, the payment has the same effect under this section as

1 the filing of nominating petitions.

2 Sec. 614a. (1) A member of an intermediate school board

3 elected ~~under section 614 at a biennial election meeting~~

4 ~~described in section 614(1)~~ or appointed to fill a vacancy under

5 section 614 is subject to recall by the intermediate school

6 electors of the intermediate school district in the manner

7 prescribed in chapter XXXVI of the Michigan election law, MCL

8 168.951 to 168.976.

9 (2) A member of an intermediate school board elected ~~under~~

10 ~~section 614 at a biennial election meeting described in section~~

11 ~~614(1)~~ or appointed to fill a vacancy under section 614 may be

12 removed from office by the boards of the constituent districts.

13 A member is removed from office under this subsection if a number

14 of the boards of the constituent districts at least equal to a

15 majority of the boards plus 1 adopt resolutions requesting

16 removal of the member and file those resolutions within a 60-day

17 period with the secretary of the intermediate school board.

18 However, if the secretary of the intermediate school board is the

19 subject of the removal resolution, a constituent district board

20 may file the resolution with another officer of the intermediate

21 school board.

22 (3) A member of an intermediate school board elected ~~under~~

23 ~~section 614 at a biennial election meeting described in section~~

24 ~~614(1)~~ or appointed to fill a vacancy under section 614 may be

25 removed from office by the governor as prescribed in section

26 619.

27 Sec. 616. (1) An intermediate school board may submit to

1 the school electors of the constituent districts comprising the

2 intermediate school district the question of adoption of sections

3 615 to 617. The question shall be in substantially the following

4 form:

5 "Shall sections 615 to 617 of the revised school code,

6 providing for the popular election of members of the intermediate

7 school board, be effective within the constituent districts of

8 __________ (name of intermediate school district)?

9 Yes ( )

10 No ( )".

11 (2) The intermediate school board shall submit the question

12 upon receipt of resolutions adopted by a majority of the boards

13 of constituent districts and representing more than 1/2 of the

14 combined memberships of the constituent districts of the

15 intermediate school district as of the latest pupil membership

16 count day. The resolutions of the constituent district boards

17 shall be adopted between March 1 and the next succeeding July 1.

18 The question shall be presented to the school electors of the

19 constituent districts at the next regular school election after

20 resolutions of constituent district boards meeting the

21 requirements of this section have been filed with the school

22 district filing official.

23 (3) If a majority of the school electors votes in favor of

24 popular election, members of the intermediate school board shall

25 be elected at the next regular school election and ~~biennially~~

26 thereafter at the regular school elections of the constituent

27 districts.

1 (4) An intermediate school district that adopts sections 615

2 to 617 may terminate the popular election of members of the

3 intermediate school board in the same manner.

4 Sec. 617. (1) In an intermediate school district in which

5 sections 615 to 617 are effective, a candidate for the office of

6 member of the intermediate school board shall be nominated, and

7 members shall be elected, as provided in chapter XIV of the

8 Michigan election law, MCL 168.301 to 168.315.

9 (2) At the first election, 3 members of an intermediate

10 school board shall be elected for a term of 6 years, 2 for a term

11 of 4 years, and 2 for a term of 2 years. ~~After~~ Subject to

12 subsection (3), after the first election, their successors shall

13 be elected biennially for terms of 6 years. However, beginning

14 with intermediate school board members elected after January 1,

15 2009, an intermediate school board member shall be elected for a

16 term of 4 years.

17 (3) The intermediate school board of an intermediate school

18 district in which sections 615 to 617 are in effect shall adopt

19 bylaws for election of intermediate school board members that

20 will provide for the transition to 4-year terms under subsection

21 (7) and that will provide for annual election of members. All of

22 the following apply to these bylaws:

23 (a) The bylaws shall ensure that all members are elected for

24 4-year terms beginning with the election in 2009.

25 (b) The bylaws shall ensure that at least 1 member is elected

26 each year.

27 (c) The bylaws may alter the current terms of members serving

1 at the time the bylaws are adopted. If an intermediate school

2 board adopts bylaws under this subsection that alter a member's

3 existing term, the member's term is subject to that action.

4 Sec. 634. (1) Not later than July 1, 2005, each

5 intermediate school board shall adopt and implement a conflict of

6 interest policy designed to avoid conflicts of interest by

7 intermediate school district officials and employees.

8 (2) Not later than July 1, 2005, each intermediate school

9 board shall adopt and implement a policy to prohibit use of

10 intermediate school district funds or other public funds under

11 the control of the intermediate school district for purchasing

12 alcoholic beverages, jewelry, gifts, fees for golf, or any item

13 the purchase or possession of which is illegal. Subject to

14 subsection (8), the policy may allow the use of public funds for

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

16 recognition of an employee, volunteer, or pupil if the purchase

17 does not exceed $100.00 per recipient. As used in this

18 subsection, "public funds" means funds generated from taxes

19 levied under this act, state appropriations of state or federal

20 funds, or payments made to the intermediate school district for

21 services by a constituent district or any other person, but does

22 not include voluntary contributions made for a specific purpose

23 by an intermediate school board member, an intermediate school

24 district employee, another individual, or a private entity.

25 (3) The department shall develop and distribute to

26 intermediate school districts a model conflict of interest policy

27 for the purposes of subsection (1) and a model policy meeting the

1 requirements of subsection (2).

2 (4) Subject to subsection (8), in any 1-month period, an

3 intermediate school board member or intermediate school district

4 administrator shall not accept from a person who does business or

5 seeks to do business of any kind with the intermediate school

6 district any money, goods, or services with a value in excess of

7 $44.00 if the board member or administrator does not provide

8 goods or services of equal value in exchange. This subsection

9 does not apply to a gift or reward already prohibited under

10 section 1805.

11 (5) If an intermediate school board member or intermediate

12 school district administrator has a substantial conflict of

13 interest in a proposed contract, the intermediate school board

14 shall not enter into that contract. As used in this subsection,

15 "substantial conflict of interest" means a conflict of interest

16 on the part of an intermediate school board member or

17 intermediate school district administrator in respect to a

18 contract with the intermediate school district that is of such

19 substance as to induce action on his or her part to promote the

20 contract for his or her own personal benefit. In the following

21 cases, there is no substantial conflict of interest:

22 (a) A contract between the intermediate school district and

23 any of the following:

24 (i) A corporation in which an intermediate school board

25 member or intermediate school district administrator is a

26 stockholder owning 1% or less of the total stock outstanding in

27 any class if the stock is not listed on a stock exchange or

1 owning stock that has a present market value of $25,000.00 or

2 less if the stock is listed on a stock exchange.

3 (ii) A corporation in which a trust, if an intermediate

4 school board member or intermediate school district administrator

5 is a beneficiary under the trust, owns 1% or less of the total

6 stock outstanding in any class if the stock is not listed on a

7 stock exchange or owns stock that has a present market value of

8 $25,000.00 or less if the stock is listed on a stock exchange.

9 (iii) A professional limited liability company organized

10 pursuant to the Michigan limited liability company act, 1993 PA

11 23, MCL 450.5101 to 450.6200, if an intermediate school board

12 member or intermediate school district administrator is an

13 employee but not a member of the company.

14 (b) A contract between the intermediate school district and

15 any of the following:

16 (i) A corporation in which an intermediate school board

17 member or intermediate school district administrator is not a

18 stockholder owning more than 1% of the total stock outstanding in

19 any class if the stock is not listed on a stock exchange; is not

20 a stockholder owning stock that has a present market value in

21 excess of $25,000.00 if the stock is listed on a stock exchange;

22 or is not a director, officer, or employee.

23 (ii) A firm, partnership, or other unincorporated

24 association, in which an intermediate school board member or

25 intermediate school district administrator is not a partner,

26 member, or employee.

27 (iii) A corporation or firm that has an indebtedness owed to

1 an intermediate school board member or intermediate school

2 district administrator.

3 (c) A contract between the intermediate school district and a

4 constituent district.

5 (d) A contract awarded to the lowest qualified bidder, upon

6 receipt of sealed bids pursuant to a published notice for bids if

7 the notice does not bar, except as authorized by law, any

8 qualified person, firm, corporation, or trust from bidding. This

9 subdivision does not apply to amendments or renegotiations of a

10 contract or to additional payments under the contract that were

11 not authorized by the contract at the time of award.

12 (6) If an intermediate school board member, intermediate

13 school district administrator, or an employee of an intermediate

14 school district who recommends, negotiates, or is authorized to

15 sign a contract on behalf of the intermediate school district

16 either is employed by or under contract with a business

17 enterprise with which the intermediate school district is

18 considering entering into a contract or knows that he or she has

19 a family member who has an ownership interest in or is employed

20 by a business enterprise with which the intermediate school

21 district is considering entering into a contract, the board

22 member, administrator, or employee shall disclose this fact to

23 the intermediate school board at a public meeting of the

24 intermediate school board before the intermediate school board

25 enters into the contract. If the intermediate school board

26 receives a disclosure described in this subsection, the

27 intermediate school board shall vote at a public meeting of the

1 intermediate school board on whether or not it considers the

2 relationship described in the disclosure to be a conflict of

3 interest, and shall not enter into the contract without first

4 voting at a public meeting of the intermediate school board to

5 enter into the contract. As used in this subsection, "family

6 member" means a person's spouse or spouse's sibling or child; a

7 person's sibling or sibling's spouse or child; a person's child

8 or child's spouse; or a person's parent or parent's spouse, and

9 includes these relationships as created by adoption or marriage.

10 (7) An intermediate school board shall ensure that each

11 employment contract with a school administrator employed by the

12 intermediate school district includes both a provision

13 prohibiting the school administrator from engaging in conduct

14 involving moral turpitude and a provision allowing the

15 intermediate school board to void the contract if the school

16 administrator violates the provision prohibiting conduct

17 involving moral turpitude.

18 (8) Beginning January 1, 2005, the monetary amounts specified

19 in subsections (2) and (4) shall be adjusted each January 1

20 pursuant to the annual average percentage increase or decrease in

21 the Detroit consumer price index--all items. The adjustment for

22 each year shall be made by comparing the percentage increase or

23 decrease in the Detroit consumer price index for the preceding

24 August by the corresponding Detroit consumer price index--all

25 items 1 year earlier. The resultant percentage change shall then

26 be multiplied by the affected monetary amount. These results

27 shall be rounded up to the nearest dollar and added to or

1 subtracted from the current monetary amounts as previously

2 adjusted by this subsection to determine the new amount for that

3 year. The adjustment shall apply only to expenditures or

4 violations occurring after the date of the adjusting of the

5 amount. The adjusted amount shall be determined and announced by

6 the department on or before December 15 of each year and shall be

7 provided to all persons requesting the adjusted amount. If the

8 index is unavailable, the department shall make a reasonable

9 approximation.

10 Sec. 701. (1) Two or more adjoining intermediate school

11 districts may combine to form a single intermediate school

12 district when the reorganization is approved by a majority of the

13 electors of each intermediate school district voting on the

14 question in the regular school elections of the constituent

15 districts.

16 (2) The question of combining intermediate school districts

17 may be submitted by a resolution of the intermediate school

18 boards meeting in joint session.

19 (3) The question shall be submitted if petitions signed by a

20 number of school electors of each intermediate school district

21 equal to not less than 5% of the number of pupil memberships on

22 the latest pupil membership count day of the combined constituent

23 districts of the intermediate school district are filed with the

24 school district filing official. Within 30 days after receiving

25 sufficient petitions, the school district filing official shall

26 notify the secretary of the intermediate school district and the

27 secretary shall apply for approval to the superintendent of

1 public instruction. The school district filing official shall

2 submit the question in accordance with section 661 at the next

3 regular school election after the superintendent of public

4 instruction approves the merger.

5 (4) The ballots for a ballot question under this section

6 shall be in substantially the following form:

7 "Shall the following intermediate school districts be

8 organized as a single intermediate school district?

9 (List names of intermediate school districts)

10 Yes ( )

11 No ( )".

12 (5) If the consolidation is approved by a majority of the

13 school electors voting on the question in each of the

14 participating intermediate school districts, the reorganization

15 is effective in the combined intermediate school districts 30

16 days after the regular school election at which the question is

17 submitted. The reorganized intermediate school district is a

18 single intermediate school district subject to this part.

19 (6) The members of the intermediate school boards of the

20 original intermediate school districts shall act as an interim

21 board until a board of the combined intermediate school district

22 is elected. The interim board has all the powers and duties of

23 an intermediate school board under this part. The person chosen

24 by the interim intermediate school board as intermediate

25 superintendent shall serve only until a successor is chosen by

26 the elected intermediate school board. The secretary of the

27 intermediate school board having the largest number of pupils in

1 membership in its combined constituent districts at the time of

2 reorganization shall call a meeting of the members of the interim

3 intermediate school board for the purpose of organization within

4 15 days after the effective date of the reorganization. The

5 school district filing official shall provide for the election of

6 a board of the reorganized intermediate school district under

7 chapter XIV of the Michigan election law, MCL 168.301 to

8 168.315. At the first election, there shall be elected 3

9 ~~members of a board for 6 years, 2 for 4 years, and 2 for 2 years~~

10 2 members of the board for 4 years, 2 members for 3 years, 2

11 members for 2 years, and 1 member for 1 year. Their successors

12 shall be elected ~~biennially~~ annually for terms of 6 4 years.

13 (7) The reorganized intermediate school district shall

14 operate as a single intermediate school district from the

15 effective date of the reorganization. Within 10 days after the

16 reorganization, all accounts of the reorganized intermediate

17 school districts shall be audited in the manner established by

18 the interim intermediate school board. The contracts of the

19 intermediate superintendents in force on the effective date of

20 reorganization continue in effect until the time of their

21 termination except as to position as intermediate

22 superintendents.

23 (8) If, before reorganization of the intermediate school

24 districts each of the combining intermediate school districts

25 adopted special education programs by referendum as provided in

26 part 30 and approved the same annual property tax rates for the

27 education of handicapped persons, the special education programs