October 25, 2007, Introduced by Senators OLSHOVE, HUNTER, KUIPERS, JACOBS, JANSEN, THOMAS, ANDERSON, BASHAM, BARCIA, BROWN, SANBORN, GILBERT, GLEASON, PAPPAGEORGE, JELINEK, VAN WOERKOM, CLARKE, BRATER and SCHAUER and referred to the Committee on Homeland Security and Emerging Technologies.
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 1997 PA 135 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.
(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.
(c) Appoint and employ a business manager responsible to the
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.
(c) Bankers' acceptances that are issued by a bank that is a
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.