HOUSE BILL No. 5420


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


        A bill to amend 1966 PA 331, entitled

   "Community college act of 1966,"

   by amending section 122 (MCL 389.122), as amended by 1984

   PA 148.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 122.  The board of trustees may DO ALL OF THE

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      FOLLOWING:

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           (a) Borrow, subject to the provisions of the  municipal

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      finance act, Act No. 202 of the Public Acts of 1943, as amended,

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      being sections 131.1 to 139.3 of the Michigan Compiled Laws

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      REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

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      141.2821, for community college purposes, including capital

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      expenditures,  such sums of  money  and  on  such
    THE terms  as

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      it  deems  CONSIDERS desirable and give notes of the district

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       therefor  FOR THOSE PURPOSES.   When the borrowing by  IF a


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      newly organized community college district  is  BORROWS in

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      anticipation of the collection of the first tax levy of  such

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      THE district, the loan shall not exceed 50% of the estimated

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      amount of the first tax levy.

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           (b) Borrow, subject to the  provisions of the municipal

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      finance act, Act No. 202 of the Public Acts of 1943, as amended

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      REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

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      141.2821,  such sums of  money as it  deems  CONSIDERS
   necessary

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      and issue bonds of the community college district,  therefor,  to

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      purchase sites for buildings, playgrounds, athletic fields, or

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      agricultural farms; to purchase or erect and equip any building

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      or buildings  , which  THAT it is authorized to purchase and

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      erect; to make any permanent improvement  which  THAT it is

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      authorized to make; or in part to refund existing bonded indebt-

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      edness, and in part for any of  the aforesaid  THESE purposes.  A

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      loan shall not be made and bonds shall not be issued for any sum

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       which  THAT, together with the total outstanding bonded indebt-

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      edness of the district, including bonds voted but not issued,

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      exceeds the total of 1-<1/2>% of the first $250,000,000.00 plus 1% of

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      the excess over $250,000,000.00 of the last confirmed  state

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      equalized valuation  TAXABLE VALUE of all taxable property in the

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      district unless the proposition of making the loan or of issuing

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      bonds has been submitted first to a vote of the qualified elec-

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      tors of the district, at a general or special election, and

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      approved by the majority of the electors voting  thereon  AT THE

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      ELECTION, in which event loans may be made or bonds may be issued

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      in an amount not to exceed 15% of the total  state equalized


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      valuation  TAXABLE VALUE of the district.  The refunding part of

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      any bond issue shall not be included within the limitations but

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      shall be  deemed  CONSIDERED to be authorized in addition

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       thereto  TO THAT LIMITATION.   The bonded indebtedness of the

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      district shall not extend beyond a period of 30 years for money

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      borrowed.  Bonds or obligations issued under this act shall not

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      be purchased by the state.

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           (c) Provide for energy conservation improvements to be made

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      to community college facilities and may pay for the improvements

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      from operating funds of the district or from the savings  which

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      THAT result from the energy conservation improvements.  Energy

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      conservation improvements may include, but are not limited to,

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      heating system improvements, fenestration improvements, roof

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      improvements, the installation of any insulation, the installa-

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      tion or repair of heating or air conditioning controls, and

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      entrance or exit way closures.  The board of trustees may acquire

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      1 or more energy conservation improvements by installment con-

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      tract or may borrow money and issue notes for the purpose of

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      securing funds for the improvements or may enter into contracts

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      in which the cost of the energy conservation improvements is paid

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      from a portion of the savings  which  THAT result from the energy

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      conservation improvements.  These contractual agreements may pro-

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      vide that the cost of the energy conservation improvements are

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      paid only if the energy savings are sufficient to cover their

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      cost.  An installment contract or notes issued pursuant to this

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      subdivision shall extend for a period of time not to exceed 10

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      years.  Notes issued pursuant to this subdivision shall be full



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      faith and credit, tax limited obligations of the community

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      college district, payable from tax levies and the general fund as

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      pledged by the board of trustees.  The notes  shall be  ARE

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      subject to the  municipal finance act, Act No. 202 of the Public

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      Acts of 1943  REVISED MUNICIPAL FINANCE ACT, 2001 PA 34,

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      MCL 141.2101 TO 141.2821.   The notes shall bear interest at a

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      rate determined by the board of trustees, not to exceed the rate

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      provided in section 1a of chapter III of the municipal finance

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      act, Act No. 202 of the Public Acts of 1943, being section 133.1a

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      of the Michigan Compiled Laws.  This subdivision does not limit

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      in any manner the borrowing or bonding authority of a community

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      college as provided by law.
































   02352'01          Final page.                            JLB