HOUSE BILL No. 5404


     November 1, 2001, Introduced by Rep. Allen and referred to the Committee on Commerce.


        A bill to amend 1976 PA 451, entitled

   "The revised school code,"

   by amending section 442 (MCL 380.442), as amended by 1985 PA 22.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 442.  (1) The first class school district board may DO

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      ALL OF THE FOLLOWING:

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           (a) Borrow, subject to the  municipal finance act, Act

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      No. 202 of the Public Acts of 1943, as amended, being sections

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      131.1 to 139.3 of the Michigan Compiled Laws  REVISED MUNICIPAL

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      FINANCE ACT, 2001 PA 34, MCL 141.2101 TO 141.2821, for temporary

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      school purposes sums of money and give notes of the district for

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      temporary school purposes.

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           (b) Borrow, subject to  Act No. 202 of the Public Acts of

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      1943, as amended  THE REVISED MUNICIPAL FINANCE ACT, 2001 PA 34,

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      MCL 141.2101 TO 141.2821, sums of money for the purpose of


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      purchasing sites for buildings, playgrounds, or athletic fields

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      and purchasing or erecting and equipping a building or making a

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      permanent improvement  which  THAT it is authorized to make.  The

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      board may accomplish this by the issuance and sale of bonds of

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      the school district on terms the board  deems  CONSIDERS advis-

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      able, or by other reasonable means.  The board shall designate

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      officers to execute the bonds on behalf of the school district.

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      The designated officers may include the chief fiscal officer.

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           (2) A loan shall not be made and bonds shall not be issued

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      for a term longer than 30 years nor, except as otherwise provided

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      in this subsection, for a sum  which  THAT, together with the

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      total outstanding bonded indebtedness of the school district,

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      exceeds 5% of the  state equalized valuation  TAXABLE VALUE of

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      the taxable property within the district, unless the proposition

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      of making the loans or of issuing bonds is submitted to a vote of

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      the school electors of the district at a general or special

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      school election and approved by the majority of the school elec-

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      tors voting on the question.  Regardless of the amount of out-

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      standing bonded indebtedness of the school district, a vote of

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      the school electors is not necessary in order to issue bonds for

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      a purpose described in section 1274a.  Loans may be made or bonds

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      may be issued for the purposes stated in this section in an

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      amount equal to that provided by part 17.











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