2024 Senate Bill 944

Education: public school academies; requirements for management agreement with educational management organizations; revise.

A bill to amend 1976 PA 451, entitled “The revised school code,” by amending sections 503c, 523c, and 553c (MCL 380.503c, 380.523c, and 380.553c), as added by 2011 PA 277, and by adding section 1311c.

AI Analysis – Experimental

The bill mandates that if the board of directors of these educational institutions enters into or renews a management agreement with an educational management organization (EMO), the agreement must include provisions for the EMO to provide annual disclosures of financial information and compensation details. This includes audited financial statements and a list of fringe benefits for employees earning over $100,000 annually. The disclosed information must be made publicly accessible on the academy's website within 30 days of receipt.

The bill also outlines the powers of these academies, allowing them to acquire and manage property, receive and disburse funds, enter into legal agreements, incur temporary debt, solicit grants and gifts, and issue bonds. These financial activities are subject to compliance with the state school aid act and the revised municipal finance act. The amendments aim to enhance transparency and accountability in the financial operations of educational management organizations involved with these academies.

The legislation modifies existing statutes, including sections 503c, 504a, 523c, 525, 553c, 557, and 1311h of the Revised School Code, with specific references to previous amendments and additions made by various Public Acts from 2003 to 2012. The bill impacts stakeholders by increasing the transparency of financial operations, potentially benefiting the public and oversight bodies, while imposing additional reporting requirements on educational management organizations.

The act is set to take effect 90 days after its enactment into law, providing a clear timeline for the implementation of these new requirements.

Introduced in the Senate

June 26, 2024

Introduced by Sen. Rosemary Bayer (D-13) and seven co-sponsors

Co-sponsored by Sens. Erika Geiss (D-1), Mallory McMorrow (D-8), Mary Cavanagh (D-6), Stephanie Chang (D-3), Jeff Irwin (D-15), Jeremy Moss (D-7) and Sue Shink (D-14)

Referred to the Committee on Education

Nov. 13, 2024

Reported with substitute S-1

Nov. 26, 2024

Referred to the Committee of the Whole

Dec. 12, 2024

Reported with substitute S-2

Substitute S-2 concurred in by voice vote

Dec. 13, 2024

Passed in the Senate 20 to 13 (details)

Received in the House

Dec. 13, 2024

Referred to the Committee on Government Operations