SB-0850, As Passed House, June 27, 2008

SUBSTITUTE FOR

SENATE BILL NO. 850

A bill to amend 1966 PA 331, entitled

"Community college act of 1966,"

by amending sections 124 and 142 (MCL 389.124 and 389.142), section

124 as amended by 2007 PA 109 and section 142 as amended by 1997 PA

23.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 124. The board of trustees may do all of the following:

(a) Contract with, appoint, and employ a suitable person as

chief executive officer of the community college. The person

employed as chief executive officer shall not be a member of the

board of trustees and shall possess at least an earned bachelor's

degree from an accredited college or university. The chief

executive officer shall hold office for a term fixed by the board

of trustees, not to exceed 5 years, shall perform duties as the

board of trustees may determine, and shall make reports in writing

to the board of trustees and to the department of education

annually, or more often if required, in regard to all matters

pertaining to the educational interests of the community college

district.

(b) Delegate to the chief executive officer of the community

college the board's authority to do any of the following:

(i) Select and employ personnel of the community college. If

the chief executive officer provides medical, optical, or dental

benefits to employees and their dependents under this subparagraph,

the chief executive officer shall provide those benefits in

accordance with the public employees health benefit act and shall

comply with that act.

(ii) Pay claims and demands against the community college.

(iii) Purchase, lease, or otherwise acquire personal property

for the community college.

(iv) Invest community college funds, subject to section 142(4).

(v) Subject to terms and conditions established by the board

of directors, accept contributions, capital grants, gifts,

donations, services, or other financial assistance from any public

or private entity.

chief executive officer of the community college for the community

college district and fix his or her term of office.

(d) Select and employ other administrative officers, teachers,

and other employees and engage services as necessary to effectuate

its purposes.

Sec. 142. (1) ~~The~~ Subject to subsections (3) and (4), the

treasurer of a community college district, if authorized by

resolution of the board of trustees, may invest debt retirement

funds, building and site funds, building and site sinking funds, or

general funds of the district, ~~as provided in subsection (3). The~~

but investment ~~shall be~~ is restricted to the following:

(a) Bonds, bills, or notes of the United States, or of an

agency or instrumentality of the United States, or obligations of

this state.

(b) Negotiable certificates of deposit, saving accounts, or

other interest-earning deposit accounts of a financial institution.

~~As used in this section, "financial institution" means a state or~~

~~nationally chartered bank or a state or federally chartered savings~~

~~and loan association, savings bank, or credit union whose deposits~~

~~are insured by an agency of the~~ ~~United States~~ ~~government and which~~

~~maintains a principal office or branch office located in this state~~

~~under the laws of this state or the~~ ~~United States~~.

member of the federal deposit insurance corporation.

(d) Commercial paper that is supported by an irrevocable

letter of credit issued by a bank that is a member of the federal

deposit insurance corporation.

(e) Commercial paper of corporations rated prime by at least 1

of the standard rating services.

(f) Mutual funds, trusts, or investment pools composed

entirely of instruments that are eligible collateral.

(g) Repurchase agreements against eligible collateral, the

market value of which must be maintained during the life of the

agreements at levels equal to or greater than the amounts advanced.

An undivided interest in the instruments pledged for these

agreements must be granted to the community college.

(h) Investment pools, as authorized by the surplus funds

investment pool act, 1982 PA 367, MCL 129.111 to 129.118, composed

entirely of instruments that are legal for direct investment by a

community college.

(2) ~~Money in the funds~~ The board of trustees, chief executive

officer, or treasurer of a community college district shall not be

~~commingled~~ commingle money in the funds of the community college

district for the purpose of making an investment authorized by this

section, and all earnings on an investment shall become a part of

the ~~funds~~ fund for which the investment was made.

(3) ~~Notwithstanding subsection (1), additional funds of a~~

~~community college district shall not be invested or deposited in a~~

The board of trustees, chief executive officer, or treasurer of a

community college district shall not invest or deposit any funds of

the community college district in any financial institution that is

not eligible to be a depository of surplus funds belonging to this

state under section 6 of 1855 PA 105, MCL 21.146.

(4) The board of trustees, chief executive officer, or

treasurer of a community college district shall comply with the

divestment from terror act in making investments or depositing

funds under this act.

(5) ~~(4)~~ As used in this section: ~~, "eligible~~

(a) "Eligible collateral" means ~~all~~ any securities ~~which~~ that

otherwise would qualify for outright purchase under this act.

(b) "Financial institution" means a state or nationally

chartered bank or a state or federally chartered savings and loan

association, savings bank, or credit union whose deposits are

insured by an agency of the United States government and that

maintains a principal office or branch office located in this state

under the laws of this state or the United States.

Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. 846 of the 94th Legislature is enacted into

law.