A bill to amend 1976 PA 451, entitled “The revised school code,” (MCL 380.1 to 380.1852) by adding section 1267a.
This legislation mandates that educational management organizations (EMOs) must obtain competitive bids for all materials and labor required for services provided to public school academies. The bill outlines a detailed process for advertising these bids, requiring advertisements in local newspapers and on designated websites for at least two weeks. The advertisements must specify the deadline for bid submissions, the conditions under which bids will be accepted, and the details of a public meeting where bids will be opened and read aloud.
The bill stipulates that bids must include a sworn and notarized statement disclosing any familial relationships between the bidder and members of the EMO or the academy's chief administrator. Additionally, bidders must provide a security deposit of at least 5% of the bid amount to protect the EMO from potential losses due to bid withdrawal or failure to enter into a contract. The EMO is prohibited from considering late bids and must publicly open and read all timely bids. The EMO retains the right to reject any or all bids and must re-advertise if all bids are rejected.
The legislation allows EMOs to adopt policies favoring Michigan-based businesses, provided these policies comply with federal regulations and are not applied to contracts funded by federal money. The Department of Treasury is tasked with verifying the Michigan-based status of businesses upon request. Accepted bids must be approved by the academy's board of directors in an open meeting, with evidence of compliance with the competitive bidding process.
Contracts valued below $29,572 are exempt from these requirements, with this threshold adjusted annually based on the Consumer Price Index. Violations of the competitive bidding process will result in forfeiture of an amount equal to the contract value, deducted from the academy's state school aid funds. The bill defines key terms such as "educational management organization," "entity," "management agreement," and "Michigan-based business" to ensure clarity in its application.
Co-sponsored by Sens.
Referred to the Committee on Education
