Mich. Comp. Laws § 390.647
Any school district or county or municipal corporation in said area possessed of any funds or property, real or personal, which it may desire to devote to promoting higher education may transfer and convey such funds and property to the board, and in connection therewith attach any conditions or restrictions consistent with the purposes of the institution and acceptable to the board. If the properties of any operating college or university are transferred by a school district and accepted by the board, then the school district also shall be authorized to transfer to the board all records, papers, and documents of the college or university and all properties held in trust by said school district for the benefit of such college or university, but subject to the terms of such trusts; and all employees and faculty of the college or university shall become the employees of the board. If at the time of such transfer the faculty or employees are under the provisions of chapter 2 of Act No. 136 of the Public Acts of 1945, as amended, being sections 38.301 to 38.355, inclusive, of the Compiled Laws of 1948, then such faculty and employees shall remain under the provisions thereof and as they may hereafter be amended, in the same manner and with the same rights and obligations that they would have had, had there been no such transfer; and the board shall make such provisions for paying contributions to the retirement board as would have been required under the terms of said chapter 2 from the school district: Provided, however, That the board shall as soon as may be feasible formulate recommendations for submission to the legislature concerning a permanent plan or program for retirement benefits for said faculty and other employees. If such faculty and employees are also under the provisions of a contract between such school district and the state retirement board for coverage under title II of the federal social security act, such faculty and employees shall remain under the provisions thereof until such time as the board shall be able to enter into a contract for the continuance thereof; and in the meantime the said board shall pay to the school district such amounts as are required by the terms of the coverage contract.
MCL 390.647