HB-5850, As Passed Senate, November 10, 2004                                

SENATE 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 by multiplying the amount for the                   

10  immediately preceding year by the percentage by which the average           

11  consumer price index for all items for the 12 months ending                 

12  August 31 of the year in which the adjustment is made differs               

13  from that index's average for the 12 months ending on August 31             

14  of the immediately preceding year and adding that product to the            

15  maximum amount that applied in the immediately preceding year,              

16  rounding to the nearest whole dollar.  The adjustment shall apply           

17  only to expenditures or violations occurring after the date of              

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

19  determined and announced by the department on or before December            

20  15 of each year and shall be provided to all persons requesting             

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

22  shall make a reasonable approximation.                                      

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

24  person who knowingly or intentionally violates subsection (1) is            

25  guilty of a misdemeanor punishable by imprisonment for not more             

26  than 93 days or a fine, or both.  The amount of the fine shall be           

27  as follows:                                                                 

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

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

3   up to $1,000.00.                                                            

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

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

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

7   $2,000.00.                                                                  

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

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

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

11  $3,000.00.                                                                  

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

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

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

15  $4,000.00.                                                                  

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

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

18  at least $4,000.00.                                                         

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

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

21  school district.                                                            

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

23  generated from taxes levied under this act, state appropriations            

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

25  district for services, but does not include voluntary                       

26  contributions made for a specific purpose by an intermediate                

27  school district board member, an intermediate school district               

1   employee, another individual, or a private entity.                          

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

3   the competitive bidding requirements of section 1267, or who                

4   knowingly or intentionally permits or consents to a violation of            

5   the competitive bidding requirements of section 1267, is guilty             

6   of a misdemeanor punishable by a fine in an amount equal to not             

7   more than 10% of the cost of the project involved in the                    

8   violation or imprisonment for not more than 1 year, or both, but            

9   is not subject to the penalties of section 1804.

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

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

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

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

14  knowingly or intentionally permits or consents to such a misuse             

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

16  felony punishable by a fine in an amount equal to not more than             

17  10% of the cost of the project involved in the violation or                 

18  imprisonment for not more than 4 years, or both, but is not                 

19  subject to the penalties of section 1804.