SB-0196 Summary

• Amends Michigan's Revised School Code to allow intermediate school districts and school districts to invest in certificates of deposit through insured credit unions, in addition to insured depository institutions.

• Permits intermediate school districts and school districts to invest general operating funds, special education funds, building and site funds, cooperative education funds, and debt retirement funds in certificates of deposit that meet specific conditions including federal insurance and custodian arrangements.

• Requires that funds invested through a financial institution arranging certificate of deposit placements must receive offsetting deposits from other insured depository institutions or insured credit unions equal to or greater than the amount initially invested.

• Establishes that all principal and accrued interest of certificates of deposit must be insured by a U.S. agency, and the financial institution must act as custodian for the school or intermediate school district.

• Restricts deposits and investments to financial institutions eligible to be depositories of state surplus funds under MCL 21.146, ensuring financial stability and safety of school district funds.