SENATE BILL No. 847

November 29, 2001, Introduced by Senator BULLARD and referred to the Committee on

Finance.

A bill to amend 1941 PA 107, entitled

"An act to authorize township water supply and sewage disposal

services and facilities; to provide for financing of those serv-

ices and facilities; to prescribe the powers and duties of town-

ship boards with respect to those services and facilities; and to

prescribe penalties and provide remedies,"

by amending sections 8, 20m, and 20o (MCL 41.338, 41.350m, and

41.350o), section 8 as amended and sections 20m and 20o as added

by 1989 PA 83.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 8. If a sufficient number of private connection rights

2 are timely paid for in accordance with the terms of the plan pro-

3 vided for by section 5, the township board shall immediately pro-

4 ceed to make and install the improvement petitioned for under

5 section 1 and may, by resolution, do what is necessary to

6 accomplish the purposes of the plan. The board may borrow all or

7 part of the amount to be appropriated from the contingent fund

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1 under section 3 if, in the judgment of the board, the contingent

2 fund will, by such appropriation, be depleted to such extent as

3 may hamper general township operations. The loan shall conform

4 to the provisions of the municipal finance act, Act No. 202 of

5 the Public Acts of 1943, being sections 131.1 to 139.3 of the

6 Michigan Compiled Laws REVISED MUNICIPAL FINANCE ACT, 2001 PA

7 34, MCL 141.2101 TO 141.2821.

8 Sec. 20m. Subject to prior approval under the municipal

9 finance act, Act No. 202 of the Public Acts of 1943, being sec-

10 tions 131.1 to 139.3 of the Michigan Compiled Laws, a A township

11 board may borrow money and issue notes for money necessary for

12 acquisition and installation by the township of water supply

13 facilities, including water mains and elevated water tanks, which

14 are required of the township by the terms of a water supply con-

15 tract authorized by section 20l.

16 Sec. 20o. The requirement of section 20m for obtaining

17 prior approval under the municipal finance act before borrowing

18 money and issuing a note is subject to sections 10 and 11 of

19 chapter III of the municipal finance act, Act No. 202 of the

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

21 Michigan Compiled Laws. The department of treasury has the same

22 authority as provided by section 11 of chapter III of Act No. 202

23 of the Public Acts of 1943 to issue an order providing or denying

24 an exception from the prior approval required by section 20m for

25 notes authorized by section 20m. Unless an exception from prior

26 approval is available, the department of treasury may in its

27 discretion approve or deny, in whole or in part, the borrowing

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1 and the issuing of notes under section 20m. A note authorized

2 under section 20m shall be advertised and sold as provided by

3 section 2 of chapter III of Act No. 202 of the Public Acts of

4 1943, being section 133.2 of the Michigan Compiled Laws. NOTES

5 ISSUED UNDER SECTION 20M ARE SUBJECT TO THE REVISED MUNICIPAL

6 FINANCE ACT, 2001 PA 34, MCL 141.2101 TO 141.2821.

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