Education: other; definition of operating obligation; modify. Amends sec. 12b of 1976 PA 451 (MCL 380.12b).

This bill modifies the Revised School Code to clarify the process for dissolving a qualifying school district and transferring its operations to a new community district. It establishes that while most records, funds, and functions move to the new district, any outstanding debt requires the old district to keep a limited separate identity solely for debt repayment purposes. The legislation also creates a role for a transition manager appointed by the governor to oversee the handover, manage debt obligations, and appoint interim leadership until elected officials take office.