HOUSE BILL No. 4827


     May 22, 1997, Introduced by Reps. Birkholz, Gire, Sikkema, Gustafson, Gernaat, Law, Gilmer, Agee, Freeman, Dobronski, Brewer, Gagliardi, Schroer, Brater, Jelinek, Raczkowski, Richner, Walberg, Emerson, Wetters, Bogardus, Jellema, McBryde, Green, Godchaux, Harder, Schauer, Thomas, Hale, Fitzgerald, Byl, McNutt, LeTarte, Hanley, Cropsey, Bobier, Dalman,
Bodem, Dobb, Johnson, Bankes, Scranton, Jansen, Rocca, Kukuk, Profit, Mans, Geiger, Cassis, Rhead, Llewellyn, Voorhees, Brackenridge, Oxender and Galloway and referred to the Committee on Education.


        A bill to amend 1933 PA 99, entitled

   "An act to authorize incorporated villages, townships, and cities
   to enter into contracts and agreements for the purchase of lands,
   property, or equipment for public purposes; to validate such con-
   tracts or agreements heretofore entered into; to provide for the
   payment of the purchase price thereof; and to prescribe the use
   of such lands, equipment, and property,"

   by amending the title and sections 1 and 3 (MCL 123.721 and

   123.723) and by adding section 1a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1                                  TITLE

 2         An act to authorize  incorporated  villages, townships,

 3     and  cities, AND SCHOOL DISTRICTS to enter into contracts and

 4    agreements for the purchase of  lands, property, or equipment 

 5    REAL OR PERSONAL PROPERTY for public purposes;  to validate such

 6     contracts or agreements heretofore entered into;  to provide for





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 1    the payment of the purchase price thereof; and to prescribe the

 2    use of  such  THE lands, equipment, and property.

 3         Sec. 1.  (1)  The legislative body of an incorporated  A

 4    village, township,  or  city, OR SCHOOL DISTRICT, AFTER ADOPTION

 5    OF A RESOLUTION BY ITS GOVERNING BODY APPROVING THE ACTION, may

 6    enter into any contract or agreement for the purchase of  lands,

 7     property, or equipment  REAL OR PERSONAL PROPERTY for public pur-

 8    poses, to be paid for in installments over a period of not to

 9    exceed 15 years  but in any case  AND not to exceed the useful

10    life of the property acquired as determined by THE resolution.

11     of the legislative body.  Any contract or agreement entered

12     into, before this amendatory act of 1973 takes effect, by the

13     legislative body of any incorporated village, township, or city

14     for the purchase of lands, property, or equipment for public pur-

15     poses, to be paid for in installments, is validated and made

16     legal for all purposes.  The outstanding balance of all  such 

17    purchases  , made both before and after this amendatory act of

18     1973 takes effect  AUTHORIZED UNDER THIS ACT, exclusive of inter-

19    est, shall not exceed 1-1/4% of the equalized assessed value of

20    the real and personal property in  such  THE village, township,

21     or  city, OR SCHOOL DISTRICT at the date of  such  THE contract

22    or agreement.  The limitations  shall  DO not apply to contracts

23    or leases entered into under  Act No. 31 of the Public Acts of

24     the Extra Session of 1948, as amended, being sections 123.951 to

25     123.965 of the Michigan Compiled Laws  1948 (1ST EX SESS) PA 31,

26    MCL 123.951 TO 123.965, or to other contracts or leases between

27    public corporations or municipalities.  The contracts or



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 1    agreements, and the purchase of  lands, property, or equipment

 2     thereunder, shall not be  PROPERTY UNDER THE CONTRACTS OR AGREE-

 3    MENTS ARE NOT subject to the provisions of  Act No. 202 of the

 4     Public Acts of 1943, as amended, being sections 131.1 to 138.2 of

 5     the Michigan Compiled Laws  THE MUNICIPAL FINANCE ACT, 1943 PA

 6    202, MCL 131.1 TO 139.3.

 7         (2) The  legislative  GOVERNING body of  any such  A vil-

 8    lage, township,  or  city, OR SCHOOL DISTRICT may include in its

 9    budget and pay  such  A sum or sums as may be necessary each year

10    to meet the payments of any  such  installments, and the interest

11    thereon, when and as the  same shall become  INSTALLMENT BECOMES

12    due, including overdue installments.

13         (3) The authority granted in this act shall not be construed

14    to authorize the  legislative  GOVERNING body of a city, village,

15     or  township, OR SCHOOL DISTRICT to levy taxes in excess of

16    statutory or charter limitations without the approval of  the 

17    ITS electors.

18         (4) The limitations imposed by subsection (1)  shall not be 

19    ARE NOT applicable to a contract for purchase of lands declared

20    surplus by the United States government or one of its agencies,

21    subject to the prior approval of  such  THE contract by the

22    municipal finance commission.

23         SEC. 1A.  THE GOVERNING BODY OF A SCHOOL DISTRICT MAY ENTER

24    INTO A CONTRACT FOR THE PURCHASE OF TELECOMMUNICATION AND TECH-

25    NOLOGY RELATED SERVICES FOR SCHOOL PURPOSES TO BE PAID FOR IN

26    INSTALLMENTS OVER A PERIOD NOT TO EXCEED THE TERM OF THE

27    CONTRACT.  HOWEVER, IF THE GOVERNING BODY BORROWS FUNDS TO PAY



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 1    FOR TELECOMMUNICATION AND TECHNOLOGY RELATED SERVICES, THE TOTAL

 2    COST OF PRINCIPAL, INTEREST, AND FEES, AND EXPENSES OF BORROWED

 3    FUNDS, SHALL NOT EXCEED THE TOTAL AMOUNT OF THE ORIGINAL SERVICE

 4    INSTALLMENT CONTRACT.

 5         Sec. 3.  The  legislative  GOVERNING body of  any such  A

 6    village,  and/or  township,  and/or  city, OR SCHOOL DISTRICT

 7    shall at all times have control of  said  property PURCHASED

 8    UNDER THIS ACT and shall maintain the  same  PROPERTY for public

 9    use and purposes.






































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