The bill amends the Revised School Code of Michigan to redefine the status of certain school districts, specifically transitioning those previously organized as primary or lower-class districts to general powers school districts. It delineates the rights, powers, and responsibilities of these districts, which include educating students, ensuring their safety, managing school property, and forming cooperative agreements. Governance will be overseen by a school board that is required to adopt bylaws and hold regular meetings. Additionally, the bill addresses taxation and property use, stating that property utilized for housing public school employees is exempt from taxation, and expands the permissible uses of sinking fund taxes to include student transportation vehicles and school security improvements.

Moreover, the bill enforces compliance with the 15 mill tax limitation and mandates independent annual audits for any school district levying a sinking fund tax. Should an audit uncover misuse of funds, the district must repay the misused amount from its operating funds and cannot levy a sinking fund tax until the issue is rectified. The bill also clarifies what constitutes "school security improvement" and specifies that bond proceeds must be allocated for capital expenditures rather than maintenance. Importantly, it grants residents the right to initiate legal action to enforce these provisions, thereby promoting accountability and transparency in the management of school district funds.

Statutes affected:
Senate Introduced Bill: 380.11