Bill Text: MI SB0681 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Education; public school academies; charter school real estate transactions with certain entities; restrict. Amends secs. 504a, 525, 557 & 1311h of 1976 PA 451 (MCL 380.504a et seq.).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-11-30 - Referred To Committee On Education [SB0681 Detail]

Download: Michigan-2017-SB0681-Introduced.html

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SENATE BILL No. 681

 

 

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).