SENATE BILL NO. 445


   March 17, 1999, Introduced by Senators BENNETT, BYRUM and 
        BULLARD and referred to the Committee on Education.



        A bill to amend 1976 PA 451, entitled

   "The revised school code,"

   by amending section 1212 (MCL 380.1212), as amended by 1993 PA

   312.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 1212.  (1) If approved by the school electors of the

 2    school district, the board of a school district may levy a tax of

 3    not  to exceed  MORE THAN 5 mills on the 
             state equalized

 4     valuation  TAXABLE VALUE of the school district
                       each year for a

 5    period of not  to exceed  MORE THAN 20 years, for
             the purpose of

 6    creating a sinking fund.  to be used for the  A
             SINKING FUND

 7    UNDER THIS SECTION MAY BE USED ONLY FOR 1 OR MORE OF THE FOLLOW-

 8    ING PURPOSES:

 9         (A) THE purchase of real estate for sites for, and the

10    construction or repair of, school buildings.


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 1         (B) LEASING COMPUTERS AND RELATED HARDWARE.

 2         (2) The sinking fund tax levy is subject to the 15 mill tax

 3    limitation provisions of section 6 of article IX of the state

 4    constitution of 1963 and the property tax limitation act, 
             Act

 5     No. 62 of the Public Acts of 1933, as amended, being
                       sections

 6     211.201 to 211.217a of the Michigan Compiled Laws 
                       1933 PA 62,

 7    MCL 211.201 TO 211.217A.

 8         (3) A school district that levies a sinking fund tax under

 9    this section shall have an independent audit of its sinking fund

10    conducted annually, including a review of the uses of the sinking

11    fund, and shall submit the audit report to the department of

12    treasury.  If the department of treasury determines from the

13    audit report that the sinking fund has been used for a purpose

14    other than those authorized for the sinking fund under this sec-

15    tion, the school district shall repay the misused funds to the

16    sinking fund from the school district's operating funds and shall

17    not levy a sinking fund tax under this section after the date the

18    department of treasury makes that determination.

19         (4)  (2)  The proposition of levying a sinking
             fund tax

20    shall be submitted to the school electors of the school district

21    at an annual or special  meeting or  election.

22         (5)  (3)  The question of levying taxes for
             the purpose of

23    creating a sinking fund shall be by ballot in substantially the

24    following form:

25         "Shall _______________________________ levy __________ mills
26                (legal name of school district)

27    to create a sinking fund for the purpose of ___________________




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 1    _________________________________________________________________

 2    for a period of _____ years?

 3         Yes ( )

 4         No  ( )".

 5         (6)  (4)  For the purposes of this section,
             millage approved

 6    by the school electors before December 1, 1993 for which the

 7    authorization has not expired is considered to be approved by the

 8    school electors.








































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