HOUSE BILL No. 5414 November 1, 2001, Introduced by Rep. Thomas and referred to the Committee on Commerce. A bill to amend 1976 PA 451, entitled "The revised school code," by amending section 1351a (MCL 380.1351a), as amended by 1997 PA 152. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1351a. (1) Beginning with bonds issued after May 1, 2 1994, a school districtmaySHALL not borrow money and issue 3 bonds of the district under section 1351(1). However, a school 4 district may borrow money and issue bonds of the district to 5 defray all or a part of the cost of purchasing, erecting, com- 6 pleting, remodeling, or equipping or reequipping, except for 7 equipping or reequipping for technology, school buildings, 8 including library buildings, structures, athletic fields, 9 playgrounds, or other facilities, or parts of or additions to 10 those facilities; furnishing or refurnishing new or remodeled 05329'01 JLB 2 1 school buildings; acquiring, preparing, developing, or improving 2 sites, or parts of or additions to sites, for school buildings, 3 including library buildings, structures, athletic fields, play- 4 grounds, or other facilities; purchasing school buses; acquiring, 5 installing, or equipping or reequipping school buildings for 6 technology; refunding all or part of existing bonded indebtedness 7 if the net present value of the principal and interest to be paid 8 on the refunding bonds, excluding the cost of issuance, will be 9 less than the net present value of the principal and interest to 10 be paid on the bonds being refunded, as calculated using a method 11 approved by the department of treasury; or accomplishing a combi- 12 nation of the purposes set forth in this subsection. Section 13 1351(2) to (4) applies to bonds issued under this section. 14 (2) The proceeds of bonds issued under this section or under 15 section 11i of the state school aid act of 1979, 1979 PA 94, MCL 16 388.1611i, shall be used for capital expenditures and to pay 17 costs of bond issuance, and shall not be used for maintenance 18 costs. Except as otherwise provided in this subsection, a school 19 district that issues bonds under this section or under section 20 11i of the state school aid act of 1979, 1979 PA 94, MCL 21 388.1611i, shall have an independent audit, using generally 22 accepted accounting principles, of its bonding activities under 23 these sections conducted within 120 days after completion of all 24 projects financed by the proceeds of the bonds and shall submit 25 the audit report to the department of treasury. For bonds issued 26 under section 11i of the state school aid act of 1979, 1979 PA 27 94, MCL 388.1611i, the independent audit required under this 05329'01 3 1 subsection may be conducted and submitted with the annual report 2 required undersection 5 of chapter III of the municipal finance3act, 1943 PA 202, MCL 133.5THE REVISED MUNICIPAL FINANCE ACT, 4 2001 PA 34, MCL 141.2101 TO 141.2821. 5 (3) Bonds issued under this section or under section 11i of 6 the state school aid act of 1979, 1979 PA 94, MCL 388.1611i, for 7 an asset with a useful life of less than 30 years shall not be 8 issued for a term that is longer than the useful life of the 9 asset. 10 (4) A school district shall not borrow money and issue notes 11 or bonds under this section to defray all or part of the costs of 12 any of the following: 13 (a) Upgrades to operating system or application software. 14 (b) Media, including diskettes, compact discs, video tapes, 15 and disks, unless used for the storage of initial operating 16 system software or customized application software included in 17 the definition of technology under this section. 18 (c) Training, consulting, maintenance, service contracts, 19 software upgrades, troubleshooting, or software support. 20 (5) A resident of a school district has standing to bring 21 suit against the school district to enforce the provisions of 22 this section in a court having jurisdiction. 23 (6) As used in this section, "technology" means any of the 24 following: 25 (a) Hardware and communication devices that transmit, 26 receive, or compute information for pupil instructional 27 purposes. 05329'01 4 1 (b) The initial purchase of operating system software or 2 customized application software, or both, accompanying the pur- 3 chase of hardware and communication devices under 4 subdivision (a). 5 (c) The costs of design and installation of the hardware, 6 communication devices, and initial operating system software or 7 customized application software authorized under this 8 subsection. 05329'01 Final page. JLB