SENATE BILL No. 681

 

 

November 13, 2013, Introduced by Senators HOPGOOD, GREGORY, WHITMER and SMITH 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 real property, the board

 

of directors shall not lease real property from an educational

 

management organization with which the public school academy has a

 

management agreement as described in section 503c or from a real

 

estate holding company that is affiliated with that educational

 

management organization. As used in this subdivision, "educational

 

management organization" and "management agreement" mean those

 

terms as defined in section 503c.

 

     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 real property, the

 

board of directors shall not lease real property from an

 

educational management organization with which the urban high

 

school academy has a management agreement as described in section

 

523c or from a real estate holding company that is affiliated with

 

that educational management organization. As used in this

 

subdivision, "educational management organization" and "management

 

agreement" mean those terms as defined in section 523c.

 

     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 real property, the board

 

of directors shall not lease real property from an educational

 

management organization with which the school of excellence has a

 

management agreement as described in section 553c or from a real

 

estate holding company that is affiliated with that educational

 

management organization. As used in this subdivision, "educational

 

management organization" and "management agreement" mean those

 

terms as defined in section 553c.

 

     Sec. 1311h. (1) In addition to other powers set forth in

 

sections 1311b to 1311l, a strict discipline academy may take action

 

to carry out the purposes for which it was incorporated under

 

sections 1311b to 1311l, 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 real property, the

 

board of directors shall not lease real property from an

 

educational management organization with which the strict

 

discipline academy has a management agreement or from a real estate

 

holding company that is affiliated with that educational management

 

organization. As used in this subsection:

 

     (a) "Educational management organization" means an entity that

 

enters into a management agreement with a strict discipline

 

academy.

 


     (b) "Management agreement" means an agreement to provide

 

comprehensive educational, administrative, management, or

 

instructional services or staff to a strict discipline academy.