REVENUE BOND ACT - S.B. 965 (S-2): FLOOR ANALYSIS
Senate Bill 965 (Substitute S-2 as reported)
Sponsor: Senator Bob Emerson
Committee: Finance
CONTENT
The bill would amend the Revenue Bond Act to specify that a public corporation could issue bonds under the Act only if it were qualified or approved to issue obligations under the Revised Municipal Finance Act; and provide that bonds issued under the Revenue Bond Act for which a municipality pledged its full faith and credit also would be subject to the Revised Municipal Finance Act, except for Section 503 of that Act. (Section 503 prescribes regulations for single issue bonds, including requirements for maturity dates and mandatory redemption dates.)
Under the Revenue Bond Act, a public corporation may issue bonds or notes for public improvements. (A "public corporation" is a municipality, school district, port district, or metropolitan district or a combination of these entities, or an authority created by the Legislature.)
The bill also would eliminate provisions in the Act pertaining to the sale of bonds at public sale, and add provisions pertaining to the sale of bonds at competitive or negotiated sale as required under 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 The Municipal Finance Act will be repealed on that day, except for two sections that will be repealed on April 30, 2002.)
MCL 141.103 et al. - Legislative Analyst: George Towne
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 2-27-02 - Fiscal Analyst: David ZinFloor\sb965 - Bill Analysis @ http://www.senate.state.mi.us/sfa
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.