November 30, 2017, Introduced by Senator YOUNG and referred to the Committee on Education.
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 enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the public school academy.
(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 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) If a public school academy leases or purchases real
property, all of the following apply to the lease or purchase
transaction:
(a) The board of directors of the public school academy shall
not lease or purchase real property from an educational management
organization with which the public school academy has a management
agreement, as described under section 503c, from a real estate
holding company that is affiliated with such an educational
management organization, or from any person affiliated with a real
estate holding company that is affiliated with such an educational
management organization. As used in this subdivision, "educational
management organization" and "management agreement" mean those
terms as defined in section 503c.
(b) 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 reflect the market conditions that
exist at the time of the lease or purchase transaction, as
determined by an appraisal conducted by a licensed independent real
estate appraiser.
(c) 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 either of the following:
(i) The lease or purchase agreement for real property is
between the public school academy and a person or entity prohibited
under subdivision (a) from participating in the lease or purchase.
(ii) The lease or purchase agreement for real property does
not reflect market conditions as required under subdivision (b).
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 enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the urban high school academy.
(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 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) If an urban high school academy leases or purchases real
property, all of the following apply to the lease or purchase
transaction:
(a) The board of directors of the urban high school academy
shall not lease or purchase real property from an educational
management organization with which the urban high academy has a
management agreement, as described under section 523c, from a real
estate holding company that is affiliated with such an educational
management organization, or from any person affiliated with a real
estate holding company that is affiliated with such an educational
management organization. As used in this subdivision, "educational
management organization" and "management agreement" mean those
terms as defined in section 523c.
(b) 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 reflect the market conditions that
exist at the time of the lease or purchase transaction, as
determined by an appraisal conducted by a licensed independent real
estate appraiser.
(c) 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 either of the following:
(i) The lease or purchase agreement for real property is
between the urban high school academy and a person or entity
prohibited under subdivision (a) from participating in the lease or
purchase.
(ii) The lease or purchase agreement for real property does
not reflect market conditions as required under subdivision (b).
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 enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the school of excellence.
(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 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) If a school of excellence leases or purchases real
property, all of the following apply to the lease or purchase
transaction:
(a) The board of directors of the school of excellence shall
not lease or purchase real property from an educational management
organization with which the school of excellence has a management
agreement, as described under section 553c, from a real estate
holding company that is affiliated with such an educational
management organization, or from any person affiliated with a real
estate holding company that is affiliated with such an educational
management organization. As used in this subdivision, "educational
management organization" and "management agreement" mean those
terms as defined in section 553c.
(b) 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 reflect the market conditions that
exist at the time of the lease or purchase transaction, as
determined by an appraisal conducted by a licensed independent real
estate appraiser.
(c) 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 either of the following:
(i) The lease or purchase agreement for real property is
between the public school academy and a person or entity prohibited
under subdivision (a) from participating in the lease or purchase.
(ii) The lease or purchase agreement for real property does
not reflect market conditions as required under subdivision (b).
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 enter into binding legal agreements with persons or
entities as necessary for the operation, management, financing, and
maintenance of the strict discipline academy.
(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 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) If a strict discipline academy leases or purchases real
property, all of the following apply to the lease or purchase
transaction:
(a) The board of directors of the strict discipline academy
shall not lease or purchase real property from an educational
management organization with which the strict discipline academy
has a management agreement, as described under section 503c, from a
real estate holding company that is affiliated with such an
educational management organization, or from any person affiliated
with a real estate holding company that is affiliated with such an
educational management organization. As used in this subdivision,
"educational management organization" and "management agreement"
mean those terms as described in section 503c.
(b) 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 reflect the market conditions that
exist at the time of the lease or purchase transaction, as
determined by an appraisal conducted by a licensed independent real
estate appraiser.
(c) 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 either of the following:
(i) The lease or purchase agreement for real property is
between the public school academy and a person or entity prohibited
under subdivision (a) from participating in the lease or purchase.
(ii) The lease or purchase agreement for real property does
not reflect market conditions as required under subdivision (b).