HOUSE BILL No. 5630


     February 12, 2002, Introduced by Rep. McConico 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 33707 (MCL 324.33707), as added by 1995 PA

   59.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 33707.   (1) Unless an exception from prior approval is

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        available pursuant to subsection (2), contracts  CONTRACTS

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        entered into under this part  shall have prior approval of the

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        municipal finance commission or its successor agency as to

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        INVOLVING the financial ability of the incorporated city, incor-

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        porated village, township, or county to meet all obligations and

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        liabilities imposed by the contracts as to cost of lands, ease-

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        ments, rights-of-way, construction, or the maintenance and

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        operation costs of  such  THE project or projects ARE SUBJECT TO

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


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        141.2821.  Any incorporated city, incorporated village, or

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        township, or the board of county road commissioners of any county

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        when directed by the county board of commissioners, authorized to

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        contract with the federal government or any agency of the federal

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        government under this part, may borrow funds from the federal

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        government or any agency of the federal government to implement

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        this part, which borrowings shall be subject to existing statutes

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        and charter limitations that are applicable to the borrowing.

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         However, section 2 of chapter III of the municipal finance act,

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        Act No. 202 of the Public Acts of 1943, being section 133.2 of

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        the Michigan Compiled Laws, shall not apply  THE REVISED MUNICI-

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        PAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO 141.2821, APPLIES to

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        those borrowings.

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              (2) The requirement of subsection (1) for obtaining the

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        prior approval of the municipal finance commission or its succes-

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        sor agency before entering into contracts under this part is

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        subject to sections 10 and 11 of chapter III of Act No. 202 of

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        the Public Acts of 1943, being sections 133.10 and 133.11 of the

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        Michigan Compiled Laws, and the department of treasury has the

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        same authority as provided by section 11 of chapter III of Act

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        No. 202 of the Public Acts of 1943 to issue an order providing or

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        denying an exception from the prior approval required by

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        subsection (1) for contracts authorized by this part.











   05348'01          Final page.                            JLB