SENATE BILL No. 500

 

 

May 15, 2007, Introduced by Senators THOMAS, SCHAUER, HUNTER, PAPPAGEORGE, GARCIA, BASHAM, KUIPERS, BISHOP and CLARKE and referred to the Committee on Education.

 

 

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending section 1274 (MCL 380.1274), as amended by 2004 PA 588.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1274. (1) The board of a school district or board of

 

directors of a public school academy shall adopt written policies

 

governing the procurement of supplies, materials, and equipment and

 

contracts for services.

 

     (2) Except as otherwise provided in subsection (3), a school

 

district or public school academy shall not purchase an item or a

 

group of items or contract for services in a single transaction

 

costing $17,932.00 $19,653.00 or more unless competitive bids are

 

obtained for those items or for the contract and the purchase of

 

those items or the execution of the contract is approved by the

 

school board or board of directors. The maximum amount specified in


 

this 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) A school district or public school academy 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) The board of a school district or local act school

 

district or board of directors of a public school academy may

 

acquire by purchase, lease, or rental, with or without option to

 

purchase, equipment necessary for the operation of the school

 

program, 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 district or public school

 

academy. 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.