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 allows school districts, including community districts, to borrow money and issue bonds for various purposes such as purchasing, remodeling, or equipping school buildings and facilities, as well as acquiring school buses. Notably, the bill removes the restriction on using bond proceeds for technology-related equipping or reequipping, which was previously prohibited. Additionally, it introduces new definitions and categories for what constitutes "technology," expanding the scope to include hardware, software, and related consulting services.

Furthermore, the bill stipulates that the proceeds from bonds must be used for capital expenditures and not for maintenance costs. It mandates that school districts conduct an independent audit of their bonding activities within 120 days after completing projects financed by the bonds, with the audit report submitted to the Department of Treasury. The bill also clarifies that residents of a school district have the right to bring legal action to enforce these provisions. The amendments aim to provide greater flexibility for school districts in managing their financial resources while ensuring accountability and transparency in the use of bond proceeds.

Statutes affected:
Senate Introduced Bill: 380.1351