HB-5376, As Passed Senate, July 1, 2004                                     

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                          SENATE 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  purposeIf 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              


    House Bill No. 5376 as amended June 30, 2004                                

1   date and time specified in subdivision (a).                                 

                                                                                

2       (d) State that the bid shall be accompanied by a <<sworn and notarized>> statement                                                                       

3   disclosing any familial relationship that exists between the                

                                                                                

4   owner or any employee of the bidder and any member of the board,            

                                                                                

5   intermediate school board, or board of directors or the                     

                                                                                

6   superintendent of the school district, intermediate                         

                                                                                

7   superintendent of the intermediate school district, or chief                

                                                                                

8   executive officer of the public school academy.  A board,                   

                                                                                

9   intermediate school board, or board of directors shall not accept           

                                                                                

10  a bid that does not include this <<sworn and notarized>> disclosure statement.    

11      (4)  (3)  The board, intermediate school board, or board of                 

                                                                                

12  directors shall require each bidder for a contract under this               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

19  board of directors.                                                         

                                                                                

20      (5)  (4)  The board, intermediate school board, or board of                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25      (6)  (5)  At a public meeting identified in the advertisement               

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   time and date for bid submission specified in the advertisement             

                                                                                

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

                                                                                

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

                                                                                

6   rejected, shall readvertise in the manner required by this                  

                                                                                

7   section.                                                                    

                                                                                

8       (7)  (6)  This section does not apply to buildings,                         

                                                                                

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

                                                                                

10  or to repair work normally performed by school district,                    

                                                                                

11  intermediate school board, or public school academy employees.              

                                                                                

12  The maximum amount specified in this subsection shall be adjusted           

                                                                                

13  each year by multiplying the amount for the immediately preceding           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

19  applied in the immediately preceding year, rounding to the                  

                                                                                

20  nearest whole dollar.