The bill amends the Revised School Code of Michigan, specifically section 1351a, to update the regulations surrounding school districts' ability to borrow money and issue bonds. It clarifies that school districts, including community districts, can borrow funds 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 using funds for technology-related equipping or reequipping, 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 submitted to the Department of Treasury.

Furthermore, the bill specifies that school districts cannot use borrowed funds for certain technology-related expenses, replacing previous restrictions with new categories of prohibited 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