SCHOOL BOARD MEMBER VOTING                                                                  S.B. 1051:

                                                                                                      FLOOR SUMMARY

Senate Bill 1051 (Substitute S-1 as reported)

Sponsor:  Senator Joe Hune

Committee:  Education

CONTENT

The bill would amend the Revised School Code to prohibit a member of the board of a school district, intermediate school district (ISD), or public school academy (PSA) from voting on a contract or other financial transaction that required board approval, if the board member believed or had reason to believe that he or she had a conflict of interest with regard to that contract or transaction. If a person serving as legal counsel, or otherwise acting as an advisor or consultant to the board, believed or had reason to believe that he or she had such a conflict of interest, that person would be required to disclose the conflict to the board before the vote on the contract or financial transaction.

A person would be presumed to have a conflict of interest if he or she, or his or her family member, had a financial interest, or a competing financial interest, in the contract or other financial transaction.  A board member also would be presumed to have a conflict of interest if he or she, or his or her family member, were an employee of the district, ISD, or PSA.  The bill would define "family member" as a spouse, child, sibling, sibling's spouse or child, child's spouse, parent, or parent's spouse, and would include these relationships as created by adoption or marriage.

If a person had a child who was a pupil of the district, ISD, or PSA, that relationship alone would not constitute a conflict of interest or financial interest.

Proposed MCL 380.1203                                                                                            

FISCAL IMPACT

The fiscal impact on school districts, ISDs, and charter schools (PSAs) is indeterminate. To the extent a board member's or legal counsel's conflict of interest currently hinders the cost effectiveness of a school board's decisions over contracts and financial transactions, the bill could result in cost savings for those districts, ISDs, or charter schools.

Date Completed:  9-20-12                                             Fiscal Analyst:  Cameron S. Mock

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.