SENATE BILL No. 867

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

Finance.

A bill to amend 1951 PA 266, entitled

"The garbage disposal act,"

by amending sections 4 and 7 (MCL 123.364 and 123.367), section 7

as amended by 1983 PA 28.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 4. For the purpose of defraying the cost of purchas-

2 ing, acquiring, constructing, improving, installing, extending,

3 enlarging, adjusting, and /or AND repairing a garbage disposal

4 equipment system, any city or village may borrow money and issue

5 its negotiable bonds therefor: Provided, That no FOR THOSE

6 PURPOSES. HOWEVER, bonds shall NOT be issued under the author-

7 ity of this section unless and until the ordinance required by

8 section 3 hereof has been adopted, which said ordinance shall

9 set forth a brief description of the contemplated garbage

10 disposal equipment system, the estimated cost of such a THE

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1 system and the amount, maximum rate of interest, and the time of

2 payment of the bonds, not to exceed 20 years. Such THE bonds

3 and coupons shall be exempt from any and all taxation

4 whatsoever by the THIS state of Michigan or by any taxing

5 authority within the THIS state. The principal of and interest

6 on such THE bonds shall be payable primarily from the net reve-

7 nues derived from the operation of the garbage disposal equipment

8 system, and in addition the city or village may pledge the full

9 faith, credit, and resources of the city or village for the pay-

10 ment thereof OF THE BONDS. No bond or coupon issued pursuant

11 to the provisions of UNDER this act shall constitute an indebt-

12 edness of the city or village within the meaning of any charter,

13 statutory, or constitutional limitation. All bonds issued under

14 authority of this section shall be ARE subject to the

15 provisions of Act No. 202 of the Public Acts of 1943, as

16 amended REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101

17 TO 141.2821.

18 Sec. 7. All money received from the sale of any such

19 bonds ISSUED UNDER THIS ACT shall, after the payment of any

20 appropriation made under section 6, be used solely for the pur-

21 chase, acquisition, construction, improvement, installation,

22 extension, enlargement, adjustment, and/or OR repair of the

23 garbage disposal improvement for which THE BONDS WERE issued,

24 including any engineering, legal, and other expenses incident

25 thereto TO THE GARBAGE DISPOSAL IMPROVEMENT, and, including

26 if it shall have been so determined in the authorizing

27 ordinance, the payment of the interest on such THE bonds during

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1 a period not to exceed the first 3 years following the date of

2 such THE bonds and the amount required for operation and main-

3 tenance prior to the receipt of the first revenues. Any unex-

4 pended balance of the proceeds of sale of any such bonds remain-

5 ing after the completion of the project for which issued, to the

6 extent of 15% of the amount of the issue, may be used for the

7 purpose of enlarging or improving the garbage disposal equipment

8 system, if such use shall be approved by the department of trea-

9 sury, and any remaining balance shall be paid immediately into

10 the bond and interest redemption fund for such bonds, and the

11 same shall be used only for the redemption or purchase at not

12 more than the fair market value of outstanding bonds of the issue

13 from which such proceeds were derived. Any bonds so acquired by

14 purchase shall be canceled and shall not be reissued. Each ordi-

15 nance shall state the period for which interest is to be capital-

16 ized, and upon receipt of the proceeds of the bonds, there shall

17 be set aside therefrom in the bond and interest redemption fund

18 the amount of interest which shall accrue during such period at

19 the interest rate or rates specified in the bonds. Money so set

20 aside shall be used solely for the payment of such capitalized

21 interest.

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