2024 Senate Bill 947

Education: public school academies; public school academy real estate transactions with certain entities; restrict.

A bill to amend 1976 PA 451, entitled “The revised school code,” by amending sections 504a, 525, 557, and 1311h (MCL 380.504a, 380.525, 380.557, and 380.1311h), section 504a as amended and section 525 as added by 2003 PA 179, section 557 as added by 2009 PA 205, and section 1311h as amended by 2012 PA 620.

Mackinac Center Analysis

Prohibits the board of directors of a public school academy from purchasing or leasing a building from the education management organization with which it has a management agreement or from a real estate company affiliated with the education management organization. If this legislation passes, it would detrimentally affect the ability of certain education management organizations to purchase facilities for expanding their schools, some of which are among the highest-performing in the state. The use of 3rd-party landlords can lead to cost-prohibitive, predatory lending/lease practices that may prevent the school from remaining open.

Introduced in the Senate

June 26, 2024

Introduced by Sen. Dayna Polehanki (D-5) and seven co-sponsors

Co-sponsored by Sens. Rosemary Bayer (D-13), Erika Geiss (D-1), Jeff Irwin (D-15), Mallory McMorrow (D-8), Mary Cavanagh (D-6), 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-3

Substitute S-3 concurred in by voice vote

Dec. 13, 2024

Amendment offered by Sen. John Damoose (R-37)

1. Amend page 7, following line 16, by inserting:

“Sec. 1142. If a school district owns a vacant school building and a public school academy requests to purchase or lease the vacant school building, the school district must sell or lease the vacant school building to the public school academy at market value. If more than 1 public school academy requests to purchase or lease a vacant school building from a school district, the school district must sell or lease the vacant school building to the first public school academy that requested to purchase or lease the vacant school building.”.

The amendment failed by voice vote

Amendment offered by Sen. John Damoose (R-37)

1. Amend page 7, following line 16, by inserting:

“Sec. 1142. If a school district owns a vacant school building and a public school academy requests to purchase or lease the vacant school building, the school district must sell or lease the vacant school building to the public school academy at market value. If more than 1 public school academy requests to purchase or lease a vacant school building from a school district, the school district must sell or lease the vacant school building to the first public school academy that requested to purchase or lease the vacant school building.”.

The amendment failed 13 to 20 (details)

Passed in the Senate 20 to 13 (details)

Received in the House

Dec. 13, 2024

Referred to the Committee on Government Operations