HOUSE BILL No. 5330

 

January 31, 2012, Introduced by Reps. Bumstead and Hughes and referred to the Committee on Education.

 

     A bill to amend 2008 PA 549, entitled

 

"Michigan promise zone authority act,"

 

by amending sections 11 and 15 (MCL 390.1671 and 390.1675).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 11. (1) The board may employ and fix the a director. All

 

of the following apply to a director employed by a board under this

 

subsection:

 

     (a) The board shall establish the director's compensation. of

 

a director.

 

     (b) The director shall serve serves at the pleasure of the

 

board.

 

     (c) A member of the board is not eligible to hold the position

 

of director.

 

     (d) Before beginning his or her duties, the director shall


 

take and subscribe to the constitutional oath and furnish a bond by

 

posting a bond in the sum in an amount determined in the resolution

 

establishing the authority, payable to the authority for use and

 

benefit of the authority, approved by the board, and filed with the

 

clerk of the eligible entity. The premium on the bond shall be

 

considered an operating expense of the authority, payable from

 

funds money available to the authority for expenses of operation.

 

     (e) The director shall be is the chief executive officer of

 

the authority.

 

     (2) Subject to the approval of the board, the director shall

 

supervise and be is responsible for implementing the promise zone

 

development plan and the performance of the functions of the

 

authority in the manner authorized by under this act. The director

 

shall attend the meetings of the board and shall provide to the

 

board, the governing body, and the chief executive officer of the

 

eligible entity a regular report covering the activities and

 

financial condition of the authority. If the director is absent or

 

disabled, the board may designate a qualified person as acting

 

director to perform the duties of the office. Before beginning his

 

or her duties, the acting director shall take and subscribe to the

 

oath, and furnish a bond, as required of the director under

 

subsection (1)(d). The director shall furnish the board with any

 

information or reports governing the operation of the authority as

 

that the board requires.

 

     (3) The board may employ and fix the compensation of a

 

treasurer, who shall keep the financial records of the authority

 

and who, together with the director, shall approve all vouchers for


 

the expenditure of funds money of the authority. The treasurer

 

shall perform all duties delegated to him or her by the board and

 

shall furnish a bond in an amount prescribed by the board.

 

     (4) The board may employ and fix the compensation of a

 

secretary, who shall maintain custody of the official seal and of

 

records, books, documents, or other papers the treasurer is not

 

required to be maintained by the treasurer. maintain. The secretary

 

shall attend meetings of the board and keep a record of its

 

proceedings and shall perform other duties delegated by the board.

 

     (5) The board may retain legal counsel to advise the board in

 

the proper performance of its duties.

 

     (6) The board may employ any other personnel considered that

 

the board considers necessary. by the board.

 

     (7) Money received by the The authority shall immediately be

 

deposited deposit any money it receives to the credit of the

 

authority, subject to disbursement under this act.

 

     (8) The authority shall not expend more than 15% of the

 

proposed annual budget Beginning in the first fiscal year in which

 

it receives revenue from the state from the capture of state

 

education tax revenue under section 17, the authority may use not

 

more than 15% of the amount of that revenue to pay for

 

administrative costs.

 

     Sec. 15. (1) The director of the authority shall submit a

 

budget to the board for the operation of the authority for each

 

fiscal year before the beginning of the fiscal year. The budget

 

shall be prepared in the manner and contain the information

 

required of municipal departments. After review by the board, the


 

budget shall be submitted The board shall review a budget submitted

 

to it under this subsection.

 

     (2) Unless subsection (3) applies, a board may not adopt a

 

budget described in subsection (1) unless it submits that budget to

 

the governing body . The and the governing body must approve

 

approves the budget. before the board may adopt the budget.

 

     (3) If the eligible entity whose governing body created an

 

authority is a local school district that has fewer than 1,000

 

pupils, the board of the authority may adopt a budget described in

 

subsection (1) without submitting the budget to the governing body

 

and obtaining the governing body's approval of the budget under

 

subsection (2).

 

     (4) Unless authorized by the governing body, funds the budget

 

of an authority shall not include any money of the eligible entity.

 

shall not be included in the budget of the authority.