0865: FLOOR ANALYSIS - REFERENCES TO REVISED MFA

REFERENCES TO REVISED MFA - S.B. 865: FLOOR ANALYSIS

Senate Bill 865 (as reported without amendment)

Committee: Finance

CONTENT

The bill would amend the County Development of Solid Waste Management Act to replace references to the Municipal Finance Act with references to the "Revised Municipal Finance Act". In addition to changing references, the bill would delete provisions that require bonds issued under the Act to be serial bonds or term bonds, with a maturity of 40 years or less; and provisions that pertain to interest rates on the bonds. These provisions are addressed in the Revised Municipal Finance Act.

(Public Act 34 of 2001 creates the "Revised Municipal Finance Act" to regulate borrowing by municipalities, and their issuance of securities; repeal the Municipal Finance Act; and prescribe the powers and duties of the Department of Treasury to protect the credit of the State and its municipalities. The Act will take effect March 1, 2002. The Municipal Finance Act will be repealed on that day, except for two sections that will be repealed on April 30, 2002.)

Under the County Development of Solid Waste Management Act, a county may contract with a public corporation (a county, city, village, township, district, or authority) to acquire or enlarge a solid waste system. In the contract, each public corporation must pledge its full faith and credit to pay its obligations under the contract. If a public corporation has taxing power, it may levy a tax each year to pay contract obligations. The bill specifies that if the contract, or an unlimited tax pledge in support of the contract, were approved by the electors, the contract would be subject to the Revised Municipal Finance Act.

MCL 125.2208 & 125.2214 - Legislative Analyst: George Towne

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed: 2-12-02 - Fiscal Analyst: David Zin

floor\sb862 - Analysis available @ http://www.michiganlegislature.org

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.