Bill Summary – FastDemocracy

SENATE BILL NO. 945
     June 26, 2024, Introduced by Senators CAVANAGH, BAYER, GEISS, MCMORROW, CHANG,
        IRWIN, MOSS and SHINK and referred to the Committee on Education.
          A bill to amend 1976 PA 451, entitled
    "The revised school code,"
    (MCL 380.1 to 380.1852) by adding section 1267a.
                   THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 1267a. (1) Before entering into a contract for the
 provision of services to a public school academy, including, but
 not limited to, educational, administrative, management, or
 instructional services, an educational management organization
 shall obtain competitive bids on all the material and labor
 required for provision of the services.
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       (2) The educational management organization shall advertise
 for the bids required under subsection (1) by placing an
 advertisement for bids at least once in a newspaper of general
 circulation in the area where the public school academy is located
 and by posting an advertisement for bids for at least 2 weeks on
 the department of technology, management, and budget website on a
 page on the website maintained for this purpose or on a website
 maintained by the public school academy and designated by the
 department of technology, management, and budget for this purpose.
 If the department of technology, management, and budget designates
 a public school academy website for this purpose, the department of
 technology, management, and budget shall indicate this fact on its
 website and include a link on its website to the public school
 academy website.
       (3) The advertisement for bids described in subsection (2)
 must do all of the following:
       (a) Specify the date and time by which all bids must be
 received by the educational management organization.
       (b) State that the educational management organization will
 not consider or accept a bid received by the educational management
 organization after the date and time specified for bid submission.
       (c) Identify the time, date, and place of a public meeting at
 which the educational management organization or its designee will
 open and read aloud each bid received by the educational management
 organization by the date and time specified in subdivision (a).
       (d) State that the bid must be accompanied by a sworn and
 notarized statement disclosing any familial relationship that
 exists between the owner or any employee of the bidder and any
 member of the educational management organization or chief
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 administrator of the public school academy. An educational
 management organization shall not accept a bid that does not
 include this sworn and notarized disclosure statement.
        (4) The educational management organization shall require each
 bidder for a contract under this section to file with the
 educational management organization a security in an amount not
 less than 1/20 of the amount of the bid conditioned to secure the
 educational management organization from loss or damage by reason
 of the withdrawal of the bid or by the failure of the bidder to
 enter a contract for performance, if the bid is accepted by the
 educational management organization.
        (5) The educational management organization shall not open,
 consider, or accept a bid that the educational management
 organization receives after the date and time specified for bid
 submission in the advertisement for bids described in subsection
 (3).
        (6) At the public meeting identified in the advertisement for
 bids described in subsection (3), the educational management
 organization or its designee shall open and read aloud each bid
 that the educational management organization received at or before
 the time and date for bid submission specified in the advertisement
 for bids. The educational management organization may reject any or
 all bids, and if all bids are rejected, the educational management
 organization shall readvertise in the manner required by this
 section.
        (7) An educational management organization may adopt and
 implement a policy that gives preference to a Michigan-based
 business in awarding a contract under this section. The policy may
 provide for a preference based on the status of the primary
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 contractor as a Michigan-based business or based on the status of 1
 or more subcontractors of the primary contractor as Michigan-based
 businesses, or both. A policy adopted under this subsection must be
 consistent with federal statutes and regulations and must not be
 applied to a contract that is to be paid with federal funds. Upon
 request by an educational management organization that has adopted
 and implemented a policy described in this subsection, the
 department of treasury shall disclose to that educational
 management organization verifying information as described in
 section 268(3) of the management and budget act, 1984 PA 431, MCL
 18.1268. The adoption, implementation, or application of a policy
 described in this subsection, or a decision not to adopt,
 implement, or apply such a policy, does not create a cause of
 action.
       (8) A bid accepted by an educational management organization
 under this section must be approved by the board of directors of
 the public school academy for which the services will be provided
 at an open meeting of the board of directors, with evidence
 presented that the educational management organization followed the
 competitive bidding process as described in this section.
       (9) This section does not apply to contracts for the provision
 of services costing less than $29,572.00. The maximum amount
 specified in this subsection must be adjusted each year by
 multiplying the amount for the immediately preceding year by the
 percentage by which the average consumer price index for all items
 for the 12 months ending August 31 of the year in which the
 adjustment is made differs from that index's average for the 12
 months ending on August 31 of the immediately preceding year and
 adding that product to the maximum amount that applied in the
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 immediately preceding year, rounding to the nearest whole dollar.
       (10) A public school academy that violates this section shall
 forfeit an amount equal to the amount of the contract for which the
 competitive bidding process was not followed. The amount forfeited
 under this subsection must be taken from the funds due to the
 public school academy under article I of the state school aid act
 of 1979, 1979 PA 94, MCL 388.1601 to 388.1772.
       (11) As used in this section:
       (a) "Educational management organization" means an entity that
 enters into a management agreement with a public school academy.
       (b) "Entity" means a partnership, nonprofit or business
 corporation, or any other association, corporation, trust, or other
 legal entity.
       (c) "Management agreement" means an agreement to provide
 comprehensive educational, administrative, management, or
 instructional services or staff to a public school academy.
       (d) "Michigan-based business" means a business that would
 qualify for a preference in a procurement contract with this state
 under section 268 of the management and budget act, 1984 PA 431,
 MCL 18.1268.
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Statutes affected: 
Senate Introduced Bill: 380.1, 380.1852