SENATE BILL No. 569

 

 

June 6, 2007, Introduced by Senators CASSIS, GARCIA, SANBORN and CROPSEY and referred to the Committee on Education.

 

 

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending section 620 (MCL 380.620), as added by 2004 PA 413, and

 

by adding section 1250a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 620. (1) Not later than December 31 of each year, each

 

intermediate school district 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 intermediate school district's total

 

budget.

 


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

 

intermediate school district.

 

     (iii) The number of employees employed by the intermediate

 

school district.

 

     (iv) The number of constituent districts, public school

 

academies, and nonpublic schools served by the intermediate school

 

district.

 

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

 

to subsection (9), for each intermediate school board member or

 

school administrator of the intermediate school district who had

 

travel expenses during the school fiscal year that totaled more

 

than $3,000.00 and that were paid for with intermediate school

 

district 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 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 intermediate school district during the

 

school fiscal year and that either obligated the intermediate

 

school district for an amount in excess of $100,000.00; was not

 


competitively bid and obligated the intermediate school district

 

for an amount in excess of $25,000.00; or was entered into with an

 

entity in which an intermediate school board member or school

 

administrator of the intermediate school district, or a family

 

member of an intermediate school board member or school

 

administrator of the intermediate school district, was known by the

 

intermediate school board 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 intermediate school district.

 

     (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 intermediate school district in excess of

 

$100,000.00 or that resulted in the total financial obligation owed

 

by the intermediate school district 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

 

intermediate school district in excess of $25,000.00 or resulted in

 

the total financial obligation owed by the intermediate school

 

district 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 intermediate school

 

district employee with a compensation package with a total annual

 

monetary value in the top 3% among the intermediate school

 

district's employees, all of the following listed separately for

 

each of the employees:

 

     (i) The position in which the person is employed.

 

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

 

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

 

the employee and the dollar value of all reimbursed expenses.

 

     (iv) (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

 

intermediate school district.

 

     (v) The dollar value of the employer share of the cost of

 

medical, optical, and dental benefits and other insurance coverage

 

provided for the employee.

 

     (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 intermediate

 

school district and used from each other source.

 


     (g) Payments made during the school fiscal year to persons who

 

were not employees of the intermediate school district for public

 

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

 

of the services received by the intermediate school district in

 

return.

 

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

 

to whom the intermediate school district 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 individual, 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 intermediate school

 

district'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 intermediate school district

 

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

 

intermediate 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 an intermediate school district has fewer than 3 10

 

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

 

(1)(e), the intermediate school district shall include the

 

information required under subsection (1)(e) for each intermediate

 

school district employee with a compensation package with a total

 

monetary value in the top 3 10 among the intermediate school

 

district's employees. If an intermediate school district has more

 

than 20 employees in the top 3% of employees as described in

 

subsection (1)(e), the intermediate school district shall include

 

the information under subsection (1)(e) for each intermediate

 

school district employee with a compensation package with a total

 

monetary value in the top 20 among the intermediate school

 

district's employees.

 

     (5) For the purposes of subsection (1)(c), an intermediate

 

school board member or school administrator of an intermediate

 


school district, or a family member of an intermediate school board

 

member or school administrator of an intermediate school district,

 

is not considered to have a monetary interest in any of the

 

following contracts:

 

     (a) A contract between the intermediate school district and

 

any of the following:

 

     (i) A corporation in which an intermediate school board member,

 

intermediate school district 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 an intermediate school

 

board member, intermediate school district 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 450.6200, if an intermediate school board member,

 

intermediate school district administrator, or family member is an

 

employee but not a member of the company.

 

     (b) A contract between the intermediate school district and

 

any of the following:

 

     (i) A corporation in which an intermediate school board member,

 

intermediate school district administrator, or family member is not

 


a director, officer, or employee.

 

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

 

in which an intermediate school board member, intermediate school

 

district administrator, or family member is not a partner, member,

 

or employee.

 

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

 

intermediate school board member, intermediate school district

 

administrator, or family member.

 

     (c) A contract between the intermediate school district and a

 

constituent district.

 

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

 

page on each intermediate school district's website that includes

 

the intermediate school district's report under subsection (1).

 

     (7) The department shall work with intermediate school

 

districts to determine the form and manner for the posting of the

 

report under subsection (1).

 

     (8) An intermediate school district shall maintain the report

 

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

 

reporting period until the intermediate school district has posted

 

the report for the next reporting period , but and shall maintain

 

paper copies of previous reports for at least 10 years.

 

     (9) Beginning January 1, 2006, 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

 

intermediate school district 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

 

intermediate school district.

 


     Sec. 1250a. (1) Not later than December 31 of each year, each

 

school district shall post on its website a salary report for the

 

immediately preceding school fiscal year in the form and manner

 

prescribed by the department. If the school district publishes a

 

district newsletter, the school district shall also publish this

 

salary report in the newsletter at least once each year. Subject to

 

subsection (2), the report shall contain all of the following

 

listed separately for each employee with a compensation package

 

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

 

district's employees:

 

     (a) The position in which the person is employed.

 

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

 

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

 

employee and the dollar value of all reimbursed expenses.

 

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

 

of supplemental compensation. As used in this subdivision,

 

"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.

 

     (e) The dollar value of the employer share of the cost of

 

medical, optical, and dental benefits and other insurance coverage

 

provided for the employee.

 

     (2) If a school district has fewer than 10 employees in the

 

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

 

district shall include the information required under subsection

 

(1) for each employee with a compensation package with a total

 


monetary value in the top 10 among the school district's employees.

 

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

 

page on each school district's website that includes the school

 

district's report under subsection (1).

 

     (4) The department shall work with school districts to

 

determine the form and manner for the posting of the report under

 

subsection (1).

 

     (5) A school district shall maintain the report under

 

subsection (1) on its website for the most recent reporting period

 

until the school district has posted the report for the next

 

reporting period and shall maintain paper copies of previous

 

reports for at least 10 years.