HB-6366, As Passed House, September 16, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6366

     A bill to amend 1976 PA 451, entitled

"The revised school code,"

by amending section 623a (MCL 380.623a), as amended by 2007 PA 45.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 623a. (1) An intermediate school board shall adopt

written policies governing the procurement of supplies, materials,

and equipment.

     (2) Except as otherwise provided in subsection (3) or (4), an

intermediate school district shall not purchase an item or a group

of items purchased in a single transaction costing $19,211.00

$20,102.00 or more unless competitive bids are obtained for those

items and the purchase of those items is approved by the

intermediate school board. The maximum amount specified in this

section subsection shall be adjusted each year by multiplying the

amount for the immediately preceding year by the percentage by

which the average consumer price index for all items for the 12

months ending August 31 of the year in which the adjustment is made

differs from that index's average for the 12 months ending on

August 31 of the immediately preceding year and adding that product

to the maximum amount that applied in the immediately preceding

year, rounding to the nearest whole dollar.

     (3) An intermediate school district is not required to obtain

competitive bids for items purchased through the cooperative bulk

purchasing program operated by the department of management and

budget under section 263(3) of the management and budget act, 1984

PA 431, MCL 18.1263.

     (4) An intermediate school district is not required to obtain

competitive bids for purchasing food that is produced or processed

in this state unless the food is purchased in a single transaction

costing $100,000.00 or more.

(5) (4) The intermediate school board of an intermediate

school district may acquire by purchase, lease, or rental, with or

without option to purchase, equipment necessary for the operation

of intermediate school district programs, including, but not

limited to, heating, water heating, and cooking equipment for

school buildings, and may pay for the equipment from operating

funds of the intermediate school district. Heating and cooking

equipment may be purchased on a title retaining contract or other

form of agreement creating a security interest and pledging in

payment money in the general fund or funds received from state

school aid. The contracts may extend for not more than 10 years.