pa23100

Act No. 231

Public Acts of 2000

Approved by the Governor

June 26, 2000

Filed with the Secretary of State

June 27, 2000

EFFECTIVE DATE: June 27, 2000

STATE OF MICHIGAN

90TH LEGISLATURE

REGULAR SESSION OF 2000

Introduced by Rep. Geiger

ENROLLED HOUSE BILL No. 5351

AN ACT to amend 1976 PA 451, entitled "An act to provide a system of public instruction and elementary and secondary schools; to revise, consolidate, and clarify the laws relating to elementary and secondary education; to provide for the organization, regulation, and maintenance of schools, school districts, public school academies, and intermediate school districts; to prescribe rights, powers, duties, and privileges of schools, school districts, public school academies, and intermediate school districts; to provide for the regulation of school teachers and certain other school employees; to provide for school elections and to prescribe powers and duties with respect thereto; to provide for the levy and collection of taxes; to provide for the borrowing of money and issuance of bonds and other evidences of indebtedness; to establish a fund and provide for expenditures from that fund; to provide for and prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to provide for licensure of boarding schools; to prescribe penalties; and to repeal acts and parts of acts," (MCL 380.1 to 380.1852) by adding sections 15, 602, and 1475.

The People of the State of Michigan enact:

Sec. 15. (1) As part of its powers under section 11a, the school board of a general powers school district may receive, own, and enjoy a gift of real or personal property made by grant, devise, bequest, or in any other manner, that is made for school purposes under this act. A school board may transfer a gift of intangible personal property or the proceeds from that gift to a community foundation. If a gift received by the school board was subject to a condition, limitation, or requirement, the transfer must be to a fund within the community foundation that incorporates a condition, limitation, or requirement that is identical or substantially similar to the condition, limitation, or requirement the gift was subject to. If a gift received by the school board was not subject to any condition, limitation, or requirement, the transfer must be to a fund within the community foundation that imposes conditions, limitations, or requirements on the use of the gift property for 1 or more school purposes under this act.

(2) If a school board transfers a gift to a community foundation pursuant to this section and if 1 or more of the following occur, the community foundation shall return the gift to the school board:

(a) The community foundation fails to meet all of the requirements for certification as a community foundation under section 261 of the income tax act of 1967, 1967 PA 281, MCL 206.261.

(b) The community foundation is liquidated.

(3) Unless waived by the school board transferring the gift, before a school board may transfer a gift to a community foundation pursuant to this section, the community foundation shall establish a donor advisory board for that gift. The donor advisory board shall include at least 1 representative of the school board transferring the gift. The donor advisory board shall do all of the following:

(a) Monitor the community foundation's compliance with any condition, limitation, or requirement on the use of the gift.

(b) Make recommendations to the community foundation for the use of distributions or other proceeds from the gift.

(4) A transfer of a gift made in accordance with this section that occurred before the effective date of this section is ratified and confirmed and the transfer is considered valid as if it had been made under this section.

(5) As used in this section:

(a) "Community foundation" means that term as defined in section 261 of the income tax act of 1967, 1967 PA 281, MCL 206.261.

(b) "Condition, limitation, or requirement" does not include a material restriction or condition that violates 26 C.F.R. 1.170A-9 or that restricts a community foundation's inherent power of modification described in 26 C.F.R. 1.170A-9.

Sec. 602. (1) As part of its powers under section 601a, the intermediate school board of an intermediate school district may receive, own, and enjoy a gift of real or personal property made by grant, devise, bequest, or in any other manner, that is made for intermediate school district purposes under this act. An intermediate school board may transfer a gift of intangible personal property or the proceeds from that gift to a community foundation. If a gift received by the intermediate school board was subject to a condition, limitation, or requirement, the transfer must be to a fund within the community foundation that incorporates a condition, limitation, or requirement that is identical or substantially similar to the condition, limitation, or requirement the gift was subject to. If a gift received by the intermediate school board was not subject to any condition, limitation, or requirement, the transfer must be to a fund within the community foundation that imposes conditions, limitations, or requirements on the use of the gift property for 1 or more intermediate school district purposes under this act.

(2) If an intermediate school board transfers a gift to a community foundation pursuant to this section and if 1 or more of the following occur, the community foundation shall return the gift to the intermediate school board:

(a) The community foundation fails to meet all of the requirements for certification as a community foundation under section 261 of the income tax act of 1967, 1967 PA 281, MCL 206.261.

(b) The community foundation is liquidated.

(3) Unless waived by the intermediate school board transferring the gift, before an intermediate school board may transfer a gift to a community foundation pursuant to this section, the community foundation shall establish a donor advisory board for that gift. The donor advisory board shall include at least 1 representative of the intermediate school board transferring the gift. The donor advisory board shall do all of the following:

(a) Monitor the community foundation's compliance with any condition, limitation, or requirement on the use of the gift.

(b) Make recommendations to the community foundation for the use of distributions or other proceeds from the gift.

(5) As used in this section:

(a) "Community foundation" means that term as defined in section 261 of the income tax act of 1967, 1967 PA 281, MCL 206.261.

Sec. 1475. A federal tribally controlled community college board may provide college level courses or participate in other activities under this act only if all of the following are in effect:

(a) The members of the board of the federal tribally controlled community college execute the constitutional oath of office as a public officer of the state of Michigan.

(b) The members of the board of the federal tribally controlled community college certify to the state department of education that the members will act as a public educational body or officer of this state subject only to the constitution and laws of this state in exercising the powers or carrying out the functions and that their functions are under the exclusive control of the state.

(c) A member of the board of the federal tribally controlled community college acting as a public officer under this section shall be subject to removal or suspension by the superintendent of public instruction for violating the provisions of this section.

(d) This section does not authorize the use of any funds appropriated for a community college district established under the community college act, 1966 PA 331, MCL 389.11 to 389.84.

This act is ordered to take immediate effect.

Clerk of the House of Representatives.

Secretary of the Senate.

Approved

Governor.