Education: school districts; requirements for borrowing money and issuing bonds; modify. Amends sec. 1351a of 1976 PA 451 (MCL 380.1351a).

A new subsection (5) was added requiring that bonds issued to fund technology may only be issued to the extent allowed under federal laws governing tax-exempt debt issuance. This ties state bond authority to federal compliance.

The definition of 'technology' was narrowed across all subcategories. Consulting is now limited to 'initial implementation and deployment' rather than general use or ongoing support. Subsection (b) changed from covering ongoing 'management' of equipment, building systems, cybersecurity, physical security, and voice communication software to only their 'initial implementation and deployment.'

Subsection (d) removed 'operation' from the list of covered activities, changing from 'design, installation, or operation' to just 'design or installation.' This means ongoing operation of hardware, software, or communication devices is no longer eligible for bond funding.

The word 'shall' was changed to 'shall must' in subsection (2), which appears to be a drafting error rather than an intentional policy change. The bill header was updated to indicate it is a substitute bill.