Bill Text: MI SB1051 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Education; board members; board members to abstain from voting on financial issues or contracts when a conflict of interest exists; require, and require certain other disclosures of conflicts. Amends 1976 PA 451 (MCL 380.1 - 380.1852) by adding sec. 1203.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-12-31 - Assigned Pa 0606'12 With Immediate Effect [SB1051 Detail]
Download: Michigan-2011-SB1051-Engrossed.html
SB-1051, As Passed House, December 13, 2012
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1051
A bill to amend 1976 PA 451, entitled
"The revised school code,"
(MCL 380.1 to 380.1852) by adding section 1203.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1203. (1) A member of the board of a school district or
intermediate school district or board of directors of a public
school academy who believes or has reason to believe that he or she
has a conflict of interest with regard to a contract or other
financial transaction that requires the approval of the board or
board of directors shall abstain from voting on the contract or
other financial transaction and shall disclose the specific
conflict of interest. A member of the board of a school district or
intermediate school district or board of directors of a public
school academy is presumed to have a conflict of interest if the
member or his or her family member has a financial interest, or a
competing financial interest, in the contract or other financial
transaction or is an employee of the school district, intermediate
school district, or public school academy.
(2) A person serving as the legal counsel to the board of a
school district or intermediate school district or board of
directors of a public school academy, or otherwise acting as an
advisor or consultant to the board or board of directors, who
believes or has reason to believe that the person has a conflict of
interest with regard to a contract or other financial transaction
that requires the approval of the board or board of directors shall
disclose the conflict of interest to the board or board of
directors before the vote on the contract or other financial
transaction. A person serving as the legal counsel to the board of
a school district or intermediate school district or board of
directors of a public school academy or otherwise acting as an
advisor or consultant to the board or board of directors is
presumed to have a conflict of interest if the person or his or her
family member has a financial interest, or a competing financial
interest, in the contract or other financial transaction.
(3) For the purposes of this section, if a member of the board
of a school district or intermediate school district or board of
directors of a public school academy, or a person serving as the
legal counsel to the board or board of directors, has a child who
is a pupil of the school district, intermediate school district, or
public school academy, that relationship alone does not constitute
a conflict of interest or financial interest in a contract or other
financial transaction of the school district, intermediate school
district, or public school academy.
(4) For the purposes of this section, an individual is not
considered to have a financial interest in any of the following
instances:
(a) A contract or other financial transaction between the
school district, intermediate school district, or public school
academy and any of the following:
(i) A corporation in which the individual is a stockholder
owning 1% or less of the total stock outstanding in any class if
the stock is not listed on a stock exchange or owning stock that
has a present market value of $25,000.00 or less if the stock is
listed on a stock exchange.
(ii) A corporation in which a trust, if the individual is a
beneficiary under the trust, owns 1% or less of the total stock
outstanding in any class if the stock is not listed on a stock
exchange or owns stock that has a present market value of
$25,000.00 or less if the stock is listed on a stock exchange.
(iii) A professional limited liability company organized
pursuant to the Michigan limited liability company act, 1993 PA 23,
MCL 450.4101 to 450.5200, if the individual is an employee but not
a member of the company.
(b) A contract or other financial transaction between the
school district, intermediate school district, or public school
academy and any of the following:
(i) A corporation in which the individual is not a director,
officer, or employee.
Senate Bill No. 1051 (H-1) as amended December 13, 2012
(ii) A firm, partnership, or other unincorporated association,
in which the individual is not a partner, member, or employee.
(iii) A corporation or firm that has an indebtedness owed to the
individual.
(c) A contract between an intermediate school district and a
constituent district.
(d) A contract awarded to the lowest qualified bidder, upon
receipt of sealed bids pursuant to a published notice for bids if
the notice does not bar, except as authorized by law, any qualified
person, firm, corporation, or trust from bidding. This subdivision
does not apply to amendments or renegotiations of a contract or to
additional payments under the contract that were not authorized by
the contract at the time of award.
[(5) If a majority of the members of the board of a school district or intermediate school district or of the board of directors of a public school academy are required to abstain from voting on a contract or other financial transaction due to the operation of this section, then, notwithstanding any other provision of law or any bylaw, for the purposes of that contract or other financial transaction, the members who are not required to abstain constitute a quorum of the board or board of directors and a majority of those members eligible to vote is required for approval of the question.]
[(6)] The provisions of this section are in addition to other
provisions of law concerning conflicts of interest that apply to
school districts, intermediate school districts, and public school
academies.
[(7)] As used in this section, "family member" means a person's
spouse or spouse's sibling or child; a person's sibling or
sibling's spouse or child; a person's child or child's spouse; or a
person's parent or parent's spouse, and includes these
relationships as created by adoption or marriage.
