The bill amends the Revised School Code of 1976, specifically section 1351a, to clarify the conditions under which school districts in Michigan can borrow money and issue bonds. It stipulates that school districts may issue bonds to cover costs related to the construction, remodeling, and equipping of school facilities, as well as purchasing school buses and technology. Notably, the bill removes the restriction on equipping or re-equipping for technology, allowing for broader use of bond proceeds. Additionally, it mandates that the proceeds from these bonds must be used for capital expenditures and not for maintenance costs, and requires an independent audit of bonding activities.

Furthermore, the bill introduces new definitions and restrictions regarding what constitutes technology expenditures. It specifies that certain consumables and repairs, as well as curriculum-specific software and training, cannot be funded through bond issuance. The bill also establishes that residents of a school district have the right to sue to enforce these provisions and clarifies that bonds for technology funding must comply with federal laws governing tax-exempt debt issuance. Overall, the amendments aim to provide clearer guidelines for school districts in managing their financial resources for educational infrastructure and technology.

Statutes affected:
Substitute (S-1): 380.1351
Senate Introduced Bill: 380.1351
As Passed by the Senate: 380.1351