SENATE BILL No. 966
December 13, 2001, Introduced by Senator PETERS and referred to the Committee on Finance.
A bill to amend 1937 PA 79, entitled
"An act to authorize any municipality, as herein defined, to
borrow money and issue notes in anticipation of the collection of
revenues other than taxes and special assessments; and to pre-
scribe the powers and duties of certain state departments, com-
missions, and officials,"
by amending sections 2, 3, and 4 (MCL 141.222, 141.223, and
141.224), section 3 as amended by 1983 PA 50; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 2. Any municipality of
the THIS state
of Michigan
2 which may now or may
hereafter operate THAT
OPERATES any public
3 utility pursuant to law for the purpose of supplying bus or
4 street railway transportation or water
supply ,
may, by resolu-
5 tion of its governing body, borrow money and issue notes
6 therefor, bearing a rate
of interest not to exceed
6 per cent
7 per annum
for the purpose of acquiring,
constructing,
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1 purchasing, owning, maintaining, or
operating any
such public
2 utility as defined
DESCRIBED in section 1(a),
hereof as the
3 board in charge of such
THE utility and the
governing body of
4 any such
THE municipality may deem CONSIDER
necessary or
5 desirable for the purpose of supplying bus or street railway
6 transportation or water supply to the
inhabitants
of any such
7 THE municipality and within a distance of 10 miles from any por-
8 tion of its corporate limits, and as the public convenience may
9 require, together with all the
necessary equipment.
therefor.
10 Sec. 3. (1) Unless
an exception from prior
approval is
11 available pursuant to
subsection (2), before any
notes shall be
12 issued under this act, the
municipality shall make
application to
13 the municipal finance
commission or its successor
agency. If
14 determining whether to
approve the issuance of the
proposed
15 notes, the commission or
its successor agency shall
have power:
16 (a) To permit the
issuance of the notes in
whole or in part
17 as requested in the
application.
18 (b) To prescribe
reasonable terms and
conditions upon which
19 the notes shall be
issued.
20 (c) To deny
permission to issue the notes in
whole or in
21 part, if, in the opinion of
the commission or its
successor
22 agency, the issuance of
the notes to the extent of
the denial
23 would not be in the
public interest or would not be
sound munici-
24 pal
financing.
25 (2) The requirement
of subsection (1) for
obtaining the
26 prior approval of the
municipal finance commission
or its
27 successor agency before
issuing notes under this
act shall be
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1 subject to sections 10 and
11 of chapter III of Act
No. 202 of
2 the Public Acts of 1943,
being sections 133.10 and
133.11 of the
3 Michigan Compiled
Laws, and the department of
treasury shall have
4 the same authority as
provided by section 11 of
chapter III of
5 Act No. 202 of the Public
Acts of 1943 to issue an
order provid-
6 ing or denying an
exception from the prior approval
required by
7 subsection (1) for notes
authorized by this act.
8 (3) Except as
provided by this section, notes
NOTES issued
9 under this act shall not
be ARE subject to the
municipal
10 finance act, Act No. 202
of the Public Acts of
1943, being sec-
11 tions 131.1 to 139.3 of
the Michigan Compiled Laws
REVISED
12 MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO 141.2821.
13 Sec. 4. Any such
governmental unit
DESCRIBED IN THIS ACT
14 may borrow money and issue notes in anticipation of the collec-
15 tion of revenues of any
such utility DESCRIBED IN
THIS ACT to
16 an amount not exceeding
10 per cent 10% of the
total revenues
17 of such
THE public utility for the preceding
fiscal year.
18 Such THE
notes may be issued at any time against
current reve-
19 nues of any such
THE utility or the same may be
issued against
20 the revenues of any ensuing fiscal year and shall be made payable
21 not later than the fiscal year against which revenues are
22 pledged.
23 Enacting section 1. Section 5 of 1937 PA 79, MCL 141.225,
24 is repealed.
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