2004 House Bill 5850 / Public Act 417

Penalize misuse of tax money by ISDs

Introduced in the House

May 4, 2004

Introduced by Rep. Ruth Johnson (R-46)

To prohibit the use of school district or Intermediate School District (ISD) money for the purchase of alcoholic beverages, jewelry, gifts, tickets for entertainment or sporting events, fees for golf or other recreational activities, or any item that is illegal to purchase or possess. School personnel who violate the ban would be subject to paying restitution, 93 days in jail and a $5,000 penalty. The bill would also make it a felony and require restitution from school personnel who knowingly or intentionally use bond revenue for a purpose other than that for which the bonds were issued, or who violate competitive bidding requirements for school building construction or repairs. A recent scandal at the Oakland ISD revealed improper activities in most of the these categories. This is one of a number of bills that have been introduced to reform ISDs.

Referred to the Committee on Education

Sept. 8, 2004

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Passed in the House 106 to 0 (details)

To prohibit the use of school district or Intermediate School District (ISD) money for the purchase of alcoholic beverages, jewelry, gifts, fees for golf, or any item that is illegal to purchase or possess. The purchase of a plaque, medal, trophy, or other employee, volunteer, or pupil recognition reward for less than $100.00 per recipient would be allowed. School personnel who violate the ban would be subject to paying restitution, 93 days in jail and penalties of $1,000 and more, depending on the size of the misappropriation. The bill would also make it a felony for school personnel to knowingly or intentionally use bond revenue for a purpose other than that for which the bonds were issued, or to violate competitive bidding requirements for school building construction or repairs. Violations would be punishable by a maximum fine of 10 percent of the cost of the project involved in the violation, imprisonment for up to one year, or both.

Received in the Senate

Sept. 9, 2004

Referred to the Committee on Education

Nov. 3, 2004

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Nov. 9, 2004

Substitute offered

To replace the previous version of the bill with one that incorporates technical changes, and which increases the penalty for violations of the bond misuse provision.

The substitute passed by voice vote

Nov. 10, 2004

Substitute offered by Sen. Wayne Kuipers (R-30)

To replace the previous version of the bill with one containing technical changes that do not affect its substance as previously described.

The substitute passed by voice vote

Passed in the Senate 36 to 0 (details)

To prohibit the use of school district or Intermediate School District (ISD) money for the purchase of alcoholic beverages, jewelry, gifts, fees for golf, or any item that is illegal to purchase or possess. The purchase of a plaque, medal, trophy, or other employee, volunteer, or pupil recognition reward for less than $100 per recipient would be allowed. School personnel who violate the ban would be subject to paying restitution, 93 days in jail and penalties of $1,000 and more, depending on the size of the misappropriation. The bill would also make it a felony for school personnel to knowingly or intentionally use bond revenue for a purpose other than that for which the bonds were issued, or to violate competitive bidding requirements for school building construction or repairs. Violations would be punishable by a maximum fine of 10 percent of the cost of the project involved in the violation, imprisonment for up to four years, or both.

Received in the House

Nov. 10, 2004

To concur with the Senate-passed version of the bill.

Passed in the House 102 to 0 (details)

Signed by Gov. Jennifer Granholm

Nov. 29, 2004