HOUSE BILL No. 5623


     February 12, 2002, Introduced by Rep. Tabor and referred to the Committee on Tax Policy.


        A bill to amend 1994 PA 451, entitled

   "Natural resources and environmental protection act,"

   by amending section 4307 (MCL 324.4307).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 4307.  (1) In accordance with and to the extent autho-

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        rized by law, when the department, the department of public

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        health, or a court of competent jurisdiction in  the  THIS state

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        has ordered, or when the department has issued a permit for, the

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        installation, construction, alteration, improvement, or operation

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        of a sewage system, solid waste facility, or waterworks system in

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        a local unit of government, and the plans for the facility or

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        system have been prepared and approved by the state department or

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        commission having the authority by law to grant the approval, the

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        legislative body or the respective legislative bodies of the

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        local unit or units of government may issue and sell the


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        necessary bonds for the construction, installation, alteration,

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        operation, or improvement, including the treatment works, and

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        other facilities as may be ordered or set forth in the permit as

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        being necessary to provide for the effective operation of the

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        system.  This provision shall be construed to allow a local unit

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        of government the option of selling bonds under a department

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        order or permit, or of taking or permitting the matter to go into

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        court and selling bonds under a court order.   The bonds shall

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        bear interest at a rate not to exceed the maximum rate permitted

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        by the municipal finance act, Act No. 202 of the Public Acts of

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        1943, being sections 131.1 to 139.3 of the Michigan Compiled

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        Laws, and be payable in not more than 40 years from the date of

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        issuance.  The legislative body or the respective legislative

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        bodies shall determine the denomination of the bonds and the

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        date, time, and manner of payment.  The amount of the bonds

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        either issued or outstanding shall not be included in the amount

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        of bonds  which  THAT the local unit or units of government are

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        authorized to issue under any statutes of this state or

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        charters.  Local units of government issuing bonds under this

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        section may raise a sum annually by taxation as the legislative

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        body or respective legislative bodies consider necessary to pay

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        interest on the bonds, and to pay the principal as it falls due.

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        The annual amount may be in excess of the authorized annual tax

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        rate fixed by  the statutes or charters  STATUTE OR CHARTER.

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             (2) Except as otherwise provided in this part, all bonds

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        issued under this section  shall be issued and sold in conformity

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        with Act No. 202 of the Public Acts of 1943  ARE SUBJECT TO THE



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

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        141.2821.  Court ordered bonds do not require approval of the

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        electors and are not subject to section 5(g) of  Act No. 279 of

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        the Public Acts of 1909, being section 117.5 of the Michigan

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        Compiled Laws  THE HOME RULE CITY ACT, 1909 PA 279, MCL 117.5, as

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        to publication of notice, petition, and referendum.  Bonds other

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        than court ordered bonds issued under this part require approval

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        of the electors at a general or special election only if an

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        appropriate petition is filed  in accordance with the  AS PRO-

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        VIDED BY law.




































   05338'01          Final page.                            JLB