HB-5921, As Passed Senate, November 10, 2004                                

    SENATE SUBSTITUTE FOR

    HOUSE BILL NO. 5921

(As amended, November 10, 2004)                                             

                                                                             A bill to amend 1976 PA 451, entitled                                             

"An act to provide a system of public instruction and elementary and secondary schools; to revise, consolidate, and clarify the laws relating to elementary and secondary education; to provide for the organization, regulation, and maintenance of schools, school districts, public school academies, intermediate school districts, and other public school entities; to prescribe rights, powers, duties, and privileges of schools, school districts, public school academies, intermediate school districts, and other public school entities; to provide for the regulation of school teachers and certain other school employees; to provide for school elections and to prescribe powers and duties with respect thereto; to provide for the levy and collection of taxes; to provide for the borrowing of money and issuance of bonds and other evidences of indebtedness; to establish a fund and provide for expenditures from that fund; to provide for and prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to provide for licensure of boarding schools; to prescribe penalties; and to repeal acts and parts of acts,"                     

by amending sections 611, 612, 613, 614, and 621a (MCL 380.611,             

380.612, 380.613, 380.614, and 380.621a), section 611 as amended            

by 1981 PA 87, section 613 as amended and section 621a as added             

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

7   intermediate school district reorganized under section 701, the             

1   number of intermediate school board members shall be 7.                     

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

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

4   intermediate school board members, at the option of the                     

5   intermediate school board, may be 7.                                        

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

7   intermediate school board may by resolution change the number of            

8   intermediate school board members to 7.  Before adopting the                

9   resolution to change the number of intermediate school board                

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

11  public hearings on the resolution.  If an intermediate school               

12  board determines that the terms of intermediate school board                

13  members should be staggered differently than provided under this            

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

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

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

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

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

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

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

21  school board adopts or amends bylaws under this subsection that             

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

23  that action.

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

25  elector of a constituent district  shall be is eligible to                 

26  election or appointment to membership on the intermediate school            

27  board.   A

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

2   member of a board of a constituent district  shall be is

3   eligible to election or appointment to membership on the                    

4   intermediate school board.  Beginning with the 2005 intermediate            

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

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

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

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

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

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

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

12  does not apply to that intermediate school board until the                  

13  expiration of the current terms of those intermediate school                

14  board members.

15  (3)  (2)  A member of an intermediate school board who is a                 

16  member of a constituent district board shall not participate in             

17  proceedings conducted pursuant to part 11 to detach territory               

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

19  or she is a board member.                                                   

20      Sec. 613.  (1) The intermediate school board shall  meet

21  hold its organizational meeting annually on or before the fourth            

22  Monday of  December January  or, if the intermediate school                

23  district's regular election is in  May June, on or before the              

24  fourth Monday of  June July.                                               

25      (2) The intermediate school board shall organize by electing                

26  a president, a vice-president, a secretary, and a treasurer.                

27  Until July 1, 2005, the president and vice-president shall be               

1   members of the intermediate school board, but the secretary and             

2   treasurer need not be.  Beginning July 1, 2005, all officers                

3   shall be members of the intermediate school board.                          

4       (3) The officers shall perform duties provided by law and                   

5   prescribed by the policies and regulations of the intermediate              

6   school board not inconsistent with this part or other laws of the           

7   state.                                                                      

8       (4) The treasurer shall post with the secretary a bond in an                

9   amount approved by the intermediate school board, conditioned               

10  upon the faithful performance of the treasurer's duties.                    

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

12  to section 642 of the Michigan election law, MCL 168.642, the               

13  members of the intermediate school board shall be elected                   

14  biennially on the first Monday in June by an electoral body                 

15  composed of 1 person designated by the board of each constituent            

16  school district.                                                            

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

18  representative to this electoral body by resolution adopted not             

19  earlier than 21 days before the date of this biennial election.             

20  The board shall consider the resolution at not less than  2 1

21  public  meetings meeting before adopting the resolution.  The              

22  resolution shall be adopted by majority vote of the members                 

23  serving on the board.  In its resolution designating its                    

24  representative, the board of a constituent district shall                   

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

26  filled on the intermediate school board and shall direct its                

27  representative to vote for that individual or individuals at                

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

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

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

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

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

6   before the meeting.  The president and secretary of the                     

7   intermediate school board shall act as chairperson and secretary            

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

9   open meeting conducted in the manner prescribed under the open              

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

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

12  each member elected to the intermediate school board is 6 years             

13  and begins on July 1 following election.  Not more than 2 members           

14  of the intermediate school board shall be from the same school              

15  district unless there are fewer districts than there are                    

16  positions to be filled.                                                     

17      (4) A vacancy shall be filled by the remaining members of the               

18  intermediate school board until the next biennial election at               

19  which time the vacancy shall be filled for the balance of the               

20  unexpired term.  Notice of the vacancy shall be filed with the              

21  state board within 5 days after the vacancy occurs.  If the                 

22  vacancy is not filled within 30 days after it occurs, the vacancy           

23  shall be filled by the state board.                                         

24      (5) Subject to subsection (7), a candidate for election to                  

25  the intermediate school board shall be nominated by petitions               

26  that are signed by a number of school electors of the combined              

27  constituent school districts of the intermediate school district,           

1   as follows:                                                                 

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

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

4   minimum of 6 and a maximum of 20.                                           

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

6   10,000 or more according to the most recent federal census, a               

7   minimum of 40 and a maximum of 100.                                         

8       (6) A school elector may sign as many petitions as there are                

9   vacancies to fill.  Nominating petitions and an affidavit as                

10  provided in section 558 of the Michigan election law, 1954                  

11  PA 116, MCL 168.558, shall be filed with the school district                

12  filing official not later than 30 days before the date of the               

13  biennial election under subsection (1).  The school district                

14  filing official shall determine the sufficiency of the petitions            

15  and the eligibility of the candidates nominated.  The school                

16  district filing official shall provide ballots for the biennial             

17  election, listing on the ballots the names of all candidates                

18  properly nominated.  The chairperson of the biennial election               

19  meeting may accept nominations for a vacancy from the floor only            

20  if no nominating petitions have been filed for the vacancy.                 

21      (7) Instead of filing nominating petitions, a candidate for                 

22  election to the intermediate school board may pay a nonrefundable           

23  filing fee of $100.00 to the school district filing official.  If           

24  this fee is paid by the due date for nominating petitions, the              

25  payment has the same effect under this section as the filing of             

26  nominating petitions.                                                       

27      Sec. 621a.  An intermediate school board shall establish a                  

1   policy requiring  intermediate school board  approval by the                

2   intermediate school board or its designee of all travel  outside            

3   this state  by an intermediate school board member or an                    

4   intermediate school district employee that includes at least 1              

5   overnight stay and is paid for or reimbursed by the intermediate            

6   school district.  The policy shall require a board member or                

7   employee to submit both a pretravel authorization form detailing            

8   estimated expenses and a posttravel form detailing and verifying            

9   actual expenses and shall require approval of both forms.

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

11  intermediate school board shall adopt and implement a conflict of           

12  interest policy designed to avoid conflicts of interest by                  

13  intermediate school district officials and employees.                       

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

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

16  intermediate school district funds or other public funds under              

17  the control of the intermediate school district for purchasing              

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

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

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

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

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

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

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

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

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

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

1   not include voluntary contributions made for a specific purpose             

2   by an intermediate school board member, an intermediate school              

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

4   (3) The department shall develop and distribute to                          

5   intermediate school districts a model conflict of interest policy           

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

7   requirements of subsection (2).                                             

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

9   intermediate school board member or intermediate school district            

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

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

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

13  $44.00 if the board member or administrator does not provide                

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

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

16  section 1805.                                                               

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

18  school district administrator has a substantial conflict of                 

19  interest in a proposed contract, the intermediate school board              

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

21  "substantial conflict of interest" means a conflict of interest             

22  on the part of an intermediate school board member or                       

23  intermediate school district administrator in respect to a                  

24  contract with the intermediate school district that is of such              

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

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

27  cases, there is no substantial conflict of interest:                        

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

2   any of the following:                                                       

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

4   member or intermediate school district administrator is a                   

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

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

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

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

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

10  school board member or intermediate school district administrator           

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

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

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

14  $25,000.00 or less if the stock is listed on a stock exchange.              

15      (iii) A professional limited liability company organized                     

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

17  23, MCL 450.5101 to 450.6200, if an intermediate school board               

18  member or intermediate school district administrator is an                  

19  employee but not a member of the company.                                   

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

21  any of the following:                                                       

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

23  member or intermediate school district administrator is not a               

24  director, officer, or employee.                                             

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

26  association, in which an intermediate school board member or                

27  intermediate school district administrator is not a partner,                

1   member, or employee.                                                        

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

3   an intermediate school board member or intermediate school                  

4   district administrator.                                                     

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

6   constituent district.                                                       

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

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

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

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

11  subdivision does not apply to amendments or renegotiations of a             

12  contract or to additional payments under the contract that were             

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

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

15  school district administrator, or an employee of an intermediate            

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

17  sign a contract on behalf of the intermediate school district               

18  either is employed by or under contract with a business                     

19  enterprise with which the intermediate school district is                   

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

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

22  by a business enterprise with which the intermediate school                 

23  district is considering entering into a contract, the board                 

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

25  the intermediate school board at a public meeting of the                    

26  intermediate school board before the intermediate school board              

27  enters into the contract.  If the intermediate school board                 

1   receives a disclosure described in this subsection, the                     

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

3   intermediate school board on whether or not it considers the                

4   relationship described in the disclosure to be a conflict of                

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

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

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

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

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

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

11  includes these relationships as created by adoption or marriage.            

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

13  employment contract with a school administrator employed by the             

14  intermediate school district includes both a provision                      

15  prohibiting the school administrator from engaging in conduct               

16  involving moral turpitude and a provision allowing the                      

17  intermediate school board to void the contract if the school                

18  administrator violates the provision prohibiting conduct                    

19  involving moral turpitude.                                                  

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

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

22  multiplying the amount for the immediately preceding year by the            

23  percentage by which the average consumer price index for all                

24  items for the 12 months ending August 31 of the year in which the           

25  adjustment is made differs from that index's average for the 12             

26  months ending on August 31 of the immediately preceding year and            

27  adding that product to the maximum amount that applied in the               

1   immediately preceding year, rounding to the nearest whole                   

2   dollar.  The adjustment shall apply only to expenditures or                 

3   violations occurring after the date of the adjusting of the                 

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

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

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

7   index is unavailable, the department shall make a reasonable                

8   approximation.