HOUSE BILL No. 5083

 

August 1, 2007, Introduced by Rep. Meltzer and referred to the Committee on Education.

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

(MCL 380.1 to 380.1852) by adding section 1220.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1220. (1) Not later than December 31 of each year, each

 

school district and public school academy shall post on its website

 

a report containing all of the following information for the

 

immediately preceding school fiscal year in the form and manner

 

prescribed by the department:

 

     (a) All of the following general information:

 

     (i) The amount of the school district's or public school

 

academy's total budget.

 

     (ii) The number of full-time equated pupils served by the

 


school district or public school academy.

 

     (iii) The number of employees employed by the school district or

 

public school academy.

 

      (b) Except as otherwise provided in subsection (2) and

 

subject to subsection (9), for each member of the school board or

 

board of directors or school administrator of the school district

 

or public school academy who had travel expenses during the school

 

fiscal year that totaled more than $3,000.00 and that were paid for

 

with school district or public school academy funds, all of the

 

following information concerning that travel:

 

     (i) The total cost of air travel.

 

     (ii) The total cost of overnight lodging.

 

     (iii) The total cost of car rental.

 

     (iv) The total cost of meals.

 

     (v) The dates, purpose, and locations of travel.

 

     (vi) The name and position of the board or board of directors

 

member or administrator.

 

     (c) Except as otherwise provided in subsection (3) and subject

 

to subsection (5), for each contract, other than an employment

 

contract or a contract that is reported under subdivision (f), that

 

was entered into by the school district or public school academy

 

during the school fiscal year and that obligated the school

 

district or public school academy for an amount in excess of

 

$100,000.00; was not competitively bid and obligated the school

 

district or public school academy for an amount in excess of

 

$25,000.00; or was entered into with an entity in which a member of

 

the school board or board of directors or a school administrator of

 


the school district or public school academy, or a family member of

 

a member of the school board or board of directors or a school

 

administrator of the school district or public school academy, was

 

known by the school board or board of directors to have a monetary

 

interest, a description of the contract that includes at least all

 

of the following:

 

     (i) The subject matter and cost of the contract.

 

     (ii) Whether the contract was competitively bid or was a

 

single-source contract.

 

     (iii) The name and position of each individual who signed the

 

contract on behalf of the school district or public school academy.

 

     (d) Except as otherwise provided in subsection (3), if there

 

was a modification made during the school fiscal year to an

 

existing contract that resulted in an additional financial

 

obligation owed by the school district or public school academy in

 

excess of $100,000.00 or that resulted in the total financial

 

obligation owed by the school district or public school academy

 

from the existing contract exceeding $100,000.00, or was a

 

modification to an existing contract that was not competitively bid

 

and the modification resulted in an additional financial obligation

 

owed by the school district or public school academy in excess of

 

$25,000.00 or resulted in the total financial obligation owed by

 

the school district or public school academy from the existing

 

contract exceeding $25,000.00, a description of the modification

 

and the total amount of the additional and total financial

 

obligation.

 

     (e) Subject to subsection (4), for each school district or

 


public school academy employee with a compensation package with a

 

total annual monetary value in the top 3% among the school

 

district's or public school academy's employees, all of the

 

following:

 

     (i) The dollar value of his or her salary.

 

     (ii) The dollar value of all expense accounts provided for the

 

employee and the dollar value of all reimbursed expenses.

 

     (iii) The dollar value of any bonus, stipend, or any other form

 

of supplemental compensation. As used in this subparagraph,

 

"supplemental compensation" means any payment or benefit made

 

available to that employee that is not generally made available to

 

all teaching, administrative, and executive-level employees of the

 

school district or public school academy.

 

     (f) Total costs incurred during the school fiscal year, and

 

the source or sources of the money expended during the school

 

fiscal year, for fiber optic or cable equipment and operating

 

system software for fiber optic or cable equipment networks. The

 

description of the source or sources of the money expended for

 

purposes described in this subdivision shall specify the amount

 

used from each of the separate funds maintained by the school

 

district or public school academy and used from each other source.

 

     (g) Expenditures during the school fiscal year for public

 

relations, polling, lobbying, or legal services and a description

 

of the services received by the school district or public school

 

academy in return.

 

     (h) For each person not included under subdivision (e) or (g)

 

to whom the school district or public school academy was required

 


to issue a federal income tax form 1099 that showed payments in

 

excess of $25,000.00 during the school fiscal year, the total

 

amount paid to the person, a description of the project or projects

 

for which the person was contracted, and the services provided by

 

the person.

 

     (i) The amount and percentage of the school district's or

 

public school academy's total budget that was spent on each of the

 

following:

 

     (i) Administrative costs, as defined under the Michigan public

 

school accounting manual.

 

     (ii) Public relations, surveys, polling, lobbying, and legal

 

services.

 

     (j) A list of all motor vehicles weighing 7,500 pounds or less

 

that were owned or leased by the school district or public school

 

academy during the school fiscal year and are not reported under

 

subdivision (c) and a description of the purposes for which each of

 

these motor vehicles was used.

 

     (2) Subsection (1)(b) does not apply to any of the following:

 

     (a) Round-trip air travel on a scheduled airline from a

 

location in the Upper Peninsula to a location in the Lower

 

Peninsula or chartered round-trip air travel from a location in the

 

Upper Peninsula to a location in the Lower Peninsula if the cost of

 

the chartered air travel is less than the published cost of the

 

same air travel on a scheduled airline.

 

     (b) Travel expenses for air or boat travel for work-related

 

purposes within this state between an island and the mainland.

 

     (c) Travel expenses for travel within the boundaries of the

 


school district for work-related purposes.

 

     (d) Mileage reimbursement.

 

     (3) Subsection (1)(c) and (d) does not apply to a contract for

 

utilities or to a contract for an annuity or retirement benefit in

 

which all employees are eligible to participate unless the contract

 

is for payment of a commission to a third-party broker for securing

 

1 of those contracts.

 

     (4) If a school district or public school academy has fewer

 

than 3 employees in the top 3% of employees as described in

 

subsection (1)(e), the school district or public school academy

 

shall include the information required under subsection (1)(e) for

 

each school district or public school academy employee with a

 

compensation package with a total monetary value in the top 3 among

 

the school district's or public school academy's employees. If a

 

school district or public school academy has more than 20 employees

 

in the top 3% of employees as described in subsection (1)(e), the

 

school district or public school academy shall include the

 

information under subsection (1)(e) for each school district or

 

public school academy employee with a compensation package with a

 

total monetary value in the top 20 among the school district's or

 

public school academy's employees.

 

     (5) For the purposes of subsection (1)(c), a member of the

 

school board or board of directors or school administrator of a

 

school district or public school academy, or a family member of a

 

member of the school board or board of directors or school

 

administrator of a school district or public school academy, is not

 

considered to have a monetary interest in any of the following

 


contracts:

 

     (a) A contract between the school district or public school

 

academy and any of the following:

 

     (i) A corporation in which a member of the school board or

 

board of directors, school district or public school academy

 

administrator, or family member is a stockholder owning 1% or less

 

of the total stock outstanding in any class if the stock is not

 

listed on a stock exchange or owning stock that has a present

 

market value of $25,000.00 or less if the stock is listed on a

 

stock exchange.

 

     (ii) A corporation in which a trust, if a member of the school

 

board or board of directors, school district or public school

 

academy administrator, or family member is a beneficiary under the

 

trust, owns 1% or less of the total stock outstanding in any class

 

if the stock is not listed on a stock exchange or owning stock that

 

has a present market value of $25,000.00 or less if the stock is

 

listed on a stock exchange.

 

     (iii) A professional limited liability company organized

 

pursuant to the Michigan limited liability company act, 1993 PA 23,

 

MCL 450.5101 to 450.5200, if a member of the school board or board

 

of directors, school district or public school academy

 

administrator, or family member is an employee but not a member of

 

the company.

 

     (b) A contract between the school district or public school

 

academy and any of the following:

 

     (i) A corporation in which a member of the school board or

 

board of directors, school district or public school academy

 


administrator, or family member is not a director, officer, or

 

employee.

 

     (ii) A firm, partnership, or other unincorporated association,

 

in which a member of the school board or board of directors, school

 

district or public school academy administrator, or family member

 

is not a partner, member, or employee.

 

     (iii) A corporation or firm that has an indebtedness owed to a

 

member of the school board or board of directors, school district

 

or public school academy administrator, or family member.

 

     (6) The department shall include on its website a link to the

 

page on each school district's or public school academy's website

 

that includes the school district's or public school academy's

 

report under subsection (1).

 

     (7) The department shall work with school districts and public

 

school academies to determine the form and manner for the posting

 

of the report under subsection (1).

 

     (8) A school district or public school academy shall maintain

 

the report under subsection (1) on its website only for the most

 

recent reporting period, but shall maintain paper copies of

 

previous reports for at least 10 years.

 

     (9) Beginning January 1, 2008, the monetary amount specified

 

in subsection (1)(b) shall be adjusted each January 1 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.

 

The adjustment shall apply only to expenditures or violations

 

occurring after the date of the adjusting of the amount. The

 

adjusted amount shall be determined and announced by the department

 

on or before December 15 of each year and shall be provided to all

 

persons requesting the adjusted amount. If the index is

 

unavailable, the department shall make a reasonable approximation.

 

     (10) As used in this section:

 

     (a) "Competitively bid" means that a contract was entered into

 

through a request for information, a request for proposal, or a

 

formal competitive bid process that was advertised and open to the

 

public, and includes a contract entered into on behalf of the

 

school district or public school academy by a federal, state, or

 

local governmental entity that performed a request for information,

 

request for proposal, or formal competitive bid process or by a

 

nonprofit corporation or nonprofit association that performed a

 

request for information, request for proposal, or formal

 

competitive bid process.

 

     (b) "Family member" means a person's spouse or spouse's

 

sibling or child; a person's sibling or sibling's spouse or child;

 

a person's child or child's spouse; or a person's parent or

 

parent's spouse, and includes these relationships as created by

 

adoption or marriage.

 

     (c) "Total budget" means budget for all funds held by the

 

school district or public school academy or held by the fiscal

 

agent of a public school academy on behalf of the public school

 


academy.

 

     (11) This section shall be known as the "school sunshine law".