The bill amends the Revised School Code of 1976, specifically section 1351a, to update the regulations surrounding the borrowing of money and issuance of bonds by school districts in Michigan. It clarifies that school districts, including community districts, may borrow money and issue bonds for various purposes related to school facilities, such as purchasing, remodeling, or equipping school buildings and acquiring school buses. Notably, the bill removes the restriction on equipping or reequipping for technology, allowing for broader use of bond proceeds. Additionally, it mandates that proceeds from bonds must be used for capital expenditures and not for maintenance costs, and requires an independent audit of bonding activities to be conducted within 120 days after project completion.

Furthermore, the bill specifies that school districts cannot use borrowed funds for certain technology-related expenses, replacing previous restrictions with new categories of ineligible costs, such as consumables and repair of end-user devices outside of warranty. It also redefines "technology" to encompass a wider range of hardware and software, including cloud-hosted services and cybersecurity measures. The bill grants residents of school districts the right to sue to enforce these provisions, thereby enhancing accountability in the management of school district finances.

Statutes affected:
Senate Introduced Bill: 380.1351