Bill Text: MI SB0947 | 2023-2024 | 102nd Legislature | Engrossed
Bill Title: Education: public school academies; public school academy real estate transactions with certain entities; restrict. Amends secs. 504a, 525, 557 & 1311h of 1976 PA 451 (MCL 380.504a et seq.). TIE BAR WITH: SB 0944'24
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-12-13 - Received On 12/13/2024 [SB0947 Detail]
Download: Michigan-2023-SB0947-Engrossed.html
Substitute For
SENATE BILL NO. 947
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 504a, 525, 557, and 1311h (MCL 380.504a, 380.525, 380.557, and 380.1311h), section 504a as amended and section 525 as added by 2003 PA 179, section 557 as added by 2009 PA 205, and section 1311h as amended by 2012 PA 620.
the people of the state of michigan enact:
Sec. 504a. (1) In addition to other powers set forth in this part, a public school academy may take action to carry out the purposes for which it was incorporated under this part, including, but not limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to subsection (2) and section 503b, to acquire, hold, and own in its own name real and personal property, or interests in real or personal property, for educational purposes by purchase, gift, grant, devise, bequest, lease, sublease, installment purchase agreement, land contract, option, or condemnation, and subject to mortgages, security interests, or other liens; and to sell or convey the property as the interests of the public school academy require.
(c) To receive, disburse, and pledge funds for lawful purposes.
(d) To Subject to section 503c, to enter into binding legal agreements with persons or entities as necessary for the operation, management, financing, and maintenance of the public school academy, if the agreement is in compliance with sections 7 and 18 of the state school aid act of 1979, MCL 388.1607 and 388.1618.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational purposes and to establish or permit to be established on its behalf 1 or more nonprofit corporations the purpose of which is to assist the public school academy in the furtherance of its public purposes.
(g) To borrow money and issue bonds in accordance with section 1351a and in accordance with part VI of the revised municipal finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the borrowing of money and issuance of bonds by a public school academy is not subject to section 1351a(4) or section 1351(2) to (4). Bonds issued under this section shall be are full faith and credit obligations of the public school academy, pledging the general funds or any other money available for such a purpose. Bonds issued under this section are subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) Beginning 1 year after the effective date of the amendatory act that added this subsection, if a public school academy enters into a new lease for real property or purchases real property, both of the following apply to the lease or purchase transaction:
(a) The board of directors of the public school academy shall approve the terms of the lease or purchase agreement for real property and shall ensure that the terms of the lease or purchase agreement for real property are equal to or below prevailing market rates that exist at the time of the lease or purchase transaction, as determined by an appraisal conducted by a licensed independent real estate appraiser.
(b) The board of directors of the public school academy shall not enter into a lease or purchase agreement for real property unless the agreement is reviewed by the public school academy's authorizing body. The authorizing body shall notify the superintendent of public instruction and state board if it has reason to suspect that the terms of the lease or purchase agreement for real property are not equal to or below prevailing market rates as required under subdivision (a).
Sec. 525. (1) In addition to other powers set forth in this part, an urban high school academy may take action to carry out the purposes for which it was incorporated under this part, including, but not limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to subsection (2) and section 523a, to acquire, hold, and own in its own name real and personal property, or interests in real or personal property, for educational purposes by purchase, gift, grant, devise, bequest, lease, sublease, installment purchase agreement, land contract, option, or condemnation, and subject to mortgages, security interests, or other liens; and to sell or convey the property as the interests of the urban high school academy require.
(c) To receive, disburse, and pledge funds for lawful purposes.
(d) To Subject to section 523c, to enter into binding legal agreements with persons or entities as necessary for the operation, management, financing, and maintenance of the urban high school academy, if the agreement is in compliance with sections 7 and 18 of the state school aid act of 1979, MCL 388.1607 and 388.1618.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational purposes and to establish or permit to be established on its behalf 1 or more nonprofit corporations the purpose of which is to assist the urban high school academy in the furtherance of its public purposes.
(g) To borrow money and issue bonds in accordance with section 1351a and in accordance with part VI of the revised municipal finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the borrowing of money and issuance of bonds by an urban high school academy are not subject to section 1351a(4) or section 1351(2) to (4). Bonds issued under this section shall be are full faith and credit obligations of the urban high school academy, pledging the general funds or any other money available for such a purpose. Bonds issued under this section are subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) Beginning 1 year after the effective date of the amendatory act that added this subsection, if an urban high school academy enters into a new lease for real property or purchases real property, both of the following apply to the lease or purchase transaction:
(a) The board of directors of the urban high school academy shall approve the terms of the lease or purchase agreement for real property and shall ensure that the terms of the lease or purchase agreement for real property are equal to or below prevailing market rates that exist at the time of the lease or purchase transaction, as determined by an appraisal conducted by a licensed independent real estate appraiser.
(b) The board of directors of the urban high school academy shall not enter into a lease or purchase agreement for real property unless the agreement is reviewed by the urban high school academy's authorizing body. The authorizing body shall notify the superintendent of public instruction and state board if it has reason to suspect that the terms of the lease or purchase agreement for real property are not equal to or below prevailing market rates as required under subdivision (a).
Sec. 557. (1) In addition to other powers set forth in this part, a school of excellence may take action to carry out the purposes for which it was incorporated under this part, including, but not limited to, all of the following:
(a) To sue and be sued in its name.
(b) Subject to subsection (2) and section 555, to acquire, hold, and own in its own name real and personal property, or interests in real or personal property, for educational purposes by purchase, gift, grant, devise, bequest, lease, sublease, installment purchase agreement, land contract, option, or condemnation, and subject to mortgages, security interests, or other liens; and to sell or convey the property as the interests of the school of excellence require.
(c) To receive, disburse, and pledge funds for lawful purposes.
(d) To Subject to section 553c, to enter into binding legal agreements with persons or entities as necessary for the operation, management, financing, and maintenance of the school of excellence, if the agreement is in compliance with sections 7 and 18 of the state school aid act of 1979, MCL 388.1607 and 388.1618.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational purposes and to establish or permit to be established on its behalf 1 or more nonprofit corporations the purpose of which is to assist the school of excellence in the furtherance of its public purposes.
(g) To borrow money and issue bonds in accordance with section 1351a and in accordance with part VI of the revised municipal finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the borrowing of money and issuance of bonds by a school of excellence is not subject to section 1351a(4) or section 1351(2) to (4). Bonds issued under this section shall be are full faith and credit obligations of the school of excellence, pledging the general funds or any other money available for such a purpose. Bonds issued under this section are subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) Beginning 1 year after the effective date of the amendatory act that added this subsection, if a school of excellence enters into a new lease for real property or purchases real property, both of the following apply to the lease or purchase transaction:
(a) The board of directors of the school of excellence shall approve the terms of the lease or purchase agreement for real property and shall ensure that the terms of the lease or purchase agreement for real property are equal to or below prevailing market rates that exist at the time of the lease or purchase transaction, as determined by an appraisal conducted by a licensed independent real estate appraiser.
(b) The board of directors of the school of excellence shall not enter into a lease or purchase agreement for real property unless the agreement is reviewed by the school of excellence's authorizing body. The authorizing body shall notify the superintendent of public instruction and state board if it has reason to suspect that the terms of the lease or purchase agreement for real property are not equal to or below prevailing market rates as required under subdivision (a).
Sec. 1311h. (1) In addition to other powers set forth in sections 1311b to 1311l, 1311m, a strict discipline academy may take action to carry out the purposes for which it was incorporated under sections 1311b to 1311l, 1311m, including, but not limited to, all of the following:
(a) To sue and be sued in its name.
(b) To Subject to subsection (2), to acquire, hold, and own in its own name real and personal property, or interests in real or personal property, for educational purposes by purchase, gift, grant, devise, bequest, lease, sublease, installment purchase agreement, land contract, option, or condemnation, and subject to mortgages, security interests, or other liens; and to sell or convey the property as the interests of the strict discipline academy require.
(c) To receive and disburse funds for lawful purposes.
(d) To Subject to section 1311c, to enter into binding legal agreements with persons or entities as necessary for the operation, management, financing, and maintenance of the strict discipline academy, if the agreement is in compliance with sections 7 and 18 of the state school aid act of 1979, MCL 388.1607 and 388.1618.
(e) To incur temporary debt in accordance with section 1225.
(f) To solicit and accept any grants or gifts for educational purposes and to establish or permit to be established on its behalf 1 or more nonprofit corporations the purpose of which is to assist the strict discipline academy in the furtherance of its public purposes.
(g) To borrow money and issue bonds in accordance with section 1351a and in accordance with part VI of the revised municipal finance act, 2001 PA 34, MCL 141.2601 to 141.2613, except that the borrowing of money and issuance of bonds by a strict discipline academy is not subject to section 1351a(4) or section 1351(2) to (4). Bonds issued under this section shall be are full faith and credit obligations of the strict discipline academy, pledging the general funds or any other money available for such a purpose. Bonds issued under this section are subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) Beginning 1 year after the effective date of the amendatory act that added this subsection, if a strict discipline academy enters into a new lease for real property or purchases real property, both of the following apply to the lease or purchase transaction:
(a) The board of directors of the strict discipline academy shall approve the terms of the lease or purchase agreement for real property and shall ensure that the terms of the lease or purchase agreement for real property are equal to or below prevailing market rates that exist at the time of the lease or purchase transaction, as determined by an appraisal conducted by a licensed independent real estate appraiser.
(b) The board of directors of the strict discipline academy shall not enter into a lease or purchase agreement for real property unless the agreement is reviewed by the strict discipline academy's authorizing body. The authorizing body shall notify the superintendent of public instruction and state board if it has reason to suspect that the terms of the lease or purchase agreement for real property are not equal to or below prevailing market rates as required under subdivision (a).
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 944 of the 102nd Legislature is enacted into law.
