HB-5376, As Passed House, March 16, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5376

                                                                             A bill to amend 1976 PA 451, entitled                                             

"The revised school code,"                                                  

by amending section 1267 (MCL 380.1267), as amended by 1995 PA              

289.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 1267.  (1) Before commencing construction of a new                     

2   school building, or addition to or repair or renovation of an               

3   existing school building, except repair in emergency situations,            

4   the board of a school district or intermediate school district or           

5   board of directors of a public school academy, shall obtain                 

6   competitive bids on all the material and labor required for the             

7   complete construction of a proposed new building or addition to             

8   or repair or renovation of an existing school building.                     

9       (2) The board, intermediate school board, or board of                       

10  directors shall advertise for the bids required under subsection            

1   (1)  once each week for 2 successive weeks by placing an                   

2   advertisement for bids at least once in a newspaper of general              

3   circulation in the area where the building or addition is to be             

4   constructed or where the repair or renovation of an existing                

5   building is to take place and by posting an advertisement for               

6   bids for at least 2 weeks on the department of management and               

7   budget website on a page on the website maintained for this                 

8   purpose or on a website maintained by a school organization and             

9   designated by the department of management and budget for this              

10  purpose.  If the department of management and budget designates a           

11  school organization website for this purpose, the department of             

12  management and budget shall indicate this fact on its website and           

13  include a link on its website to the school organization                    

14  website.                                                                    

15      (3) The advertisement for bids shall do all of the                          

16  following:                                                                  

17      (a) Specify the date and time by which all bids must be                     

18  received by the board, intermediate school board, or board of               

19  directors.                                                                  

20      (b) State that the board, intermediate school board, or board               

21  of directors will not consider or accept a bid received by the              

22  board, intermediate school board, or board of directors after the           

23  date and time specified for bid submission.                                 

24      (c) Identify the time, date, and place of a public meeting at               

25  which the board, intermediate school board, or board of directors           

26  or its designee will open and read aloud each bid received by the           

27  board, intermediate school board, or board of directors by the              

1   date and time specified in subdivision (a).                                 

2   (4)  (3)  The board, intermediate school board, or board of                 

3   directors shall require each bidder for a contract under this               

4   section to file with the board, intermediate school board, or               

5   board of directors security in an amount not less than 1/20 of              

6   the amount of the bid conditioned to secure the school district             

7   from loss or damage by reason of the withdrawal of the bid or by            

8   the failure of the bidder to enter a contract for performance, if           

9   the bid is accepted by the board, intermediate school board, or             

10  board of directors.                                                         

11  (5)  (4)  The board, intermediate school board, or board of                 

12  directors shall not open, consider, or accept a bid that the                

13  board, intermediate school board, or board of directors receives            

14  after the date and time specified for bid submission in the                 

15  advertisement for bids described in subsection  (2) (3).                   

16  (6)  (5)  At a public meeting identified in the advertisement               

17  for bids described in subsection  (2) (3), the board,                      

18  intermediate school board, or board of directors or its designee            

19  shall open and read aloud each bid that the board, intermediate             

20  school board, or board of directors received at or before the               

21  time and date for bid submission specified in the advertisement             

22  for bids.  The board, intermediate school board, or board of                

23  directors may reject any or all bids, and if all bids are                   

24  rejected, shall readvertise in the manner required by this                  

25  section.                                                                    

26  (7)  (6)  This section does not apply to buildings,                         

27  renovations, or repairs costing less than  $12,500.00 $17,932.00

1   or to repair work normally performed by school district,                    

2   intermediate school board, or public school academy employees.              

3   The maximum amount specified in this subsection shall be adjusted           

4   each year by multiplying the amount for the immediately preceding           

5   year by the percentage by which the average consumer price index            

6   for all items for the 12 months ending August 31 of the year in             

7   which the adjustment is made differs from that index's average              

8   for the 12 months ending on August 31 of the immediately                    

9   preceding year and adding that product to the maximum amount that           

10  applied in the immediately preceding year, rounding to the                  

11  nearest whole dollar.