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SB-517, As Passed Senate, June 24, 2026
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SUBSTITUTE FOR
SENATE BILL NO. 517
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1351a (MCL 380.1351a), as amended by 2016 PA
192.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1351a. (1) Beginning with bonds issued after May 1, 1994, 1
a school district, including, but not limited to, a school district 2
that is a community district or a qualifying school district, shall 3
not borrow money and issue bonds of the district under section 4
1351(1). However, a school district, including, but not limited to, 5
a school district that is a community district, may borrow money 6
and issue bonds of the district to defray all or a part of the cost 7
of purchasing, erecting, completing, remodeling, or equipping or 8
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reequipping , except for equipping or reequipping for technology, 1
school buildings, including library buildings, structures, athletic 2
fields, playgrounds, or other facilities, or parts of or additions 3
to those facilities; furnishing or refurnishing new or remodeled 4
school buildings; acquiring, preparing, developing, or improving 5
sites, or parts of or additions to sites, for school buildings, 6
including library buildings, structures, athletic fields, 7
playgrounds, or other facilities; purchasing school buses; 8
acquiring, installing, or equipping or reequipping school buildings 9
for purchasing technology; or accomplishing a combination of the 10
purposes set forth in this subsection. Section 1351(2) to (4) 11
applies to bonds issued under this section. 12
(2) The proceeds of bonds issued under this section or under 13
section 11i of the state school aid act of 1979, MCL 388.1611i, 14
shall must be used for capital expenditures and to pay costs of 15
bond issuance, and shall must not be used for maintenance costs. 16
Except as otherwise provided in this subsection, a school district 17
that issues bonds under this section or under section 11i of the 18
state school aid act of 1979, MCL 388.1611i, shall have an 19
independent audit, using generally accepted accounting principles, 20
of its bonding activities under these sections conducted within 120 21
days after completion of all projects financed by the proceeds of 22
the bonds and shall submit the audit report to the department of 23
treasury. For bonds issued under section 11i of the state school 24
aid act of 1979, MCL 388.1611i, the independent audit required 25
under this subsection may be conducted and submitted with the 26
annual report required under the revised municipal finance act, 27
2001 PA 34, MCL 141.2101 to 141.2821. 28
(3) A school district, including, but not limited to, a school 29
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district that is a community district, shall not borrow money and 1
issue notes or bonds under this section to defray all or part of 2
the costs of any of the following: 3
(a) Upgrades to operating system or application software. 4
(b) Media, including diskettes, compact discs, video tapes, 5
and disks, unless used for the storage of initial operating system 6
software or customized application software included in the 7
definition of technology under this section. 8
(c) Training, consulting, maintenance, service contracts, 9
software upgrades, troubleshooting, or software support. 10
(a) Consumables, including storage media, ink, toner, or 11
batteries. 12
(b) Repair of end-user devices that are outside of the 13
initially purchased warranty. 14
(c) Curriculum-specific software or training in the use of 15
curriculum-specific software. 16
(4) A resident of a school district, including, but not 17
limited to, a school district that is a community district, has 18
standing to bring suit against the school district to enforce the 19
provisions of this section in a court having jurisdiction. 20
(5) Bonds under this section to fund technology may be issued 21
only to the extent allowed under federal laws governing tax-exempt 22
debt issuance. 23
(6) (5) As used in this section, "technology" means any of the 24
following: 25
(a) Hardware and communication devices that transmit, receive, 26
or compute information for pupil instructional purposes. 27
(b) The initial purchase of operating system software or 28
customized application software, or both, accompanying the purchase 29
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of hardware and communication devices under subdivision (a). 1
(c) The costs of design and installation of the hardware, 2
communication devices, and initial operating system software or 3
customized application software authorized under this subsection. 4
(a) Hardware, software, cloud-hosted software as a service, 5
technological infrastructure, software licenses, software support 6
and warranties, and relevant consulting in the initial 7
implementation and deployment of hardware and software. 8
(b) The initial implementation and deployment of technology 9
equipment, building systems, cybersecurity, physical security, and 10
voice communication software. 11
(c) Relevant consulting related to the initial implementation 12
and deployment of cybersecurity. 13
(d) The design or installation of any hardware, software, 14
communication device, operating system software, or customized 15
application software authorized under this section. 16