February 5, 2003, Introduced by Reps. Hart and Pumford and referred to the Committee on Appropriations.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1212 (MCL 380.1212), as amended by 1993
PA 312.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 1212. (1) If approved by the school electors of the
2 school district, the board of a school district may levy a tax of
3 not to exceed 5 mills on
the state equalized valuation taxable
4 value of the real and personal property of the school district
5 each year for a period of not to exceed 20 years, for the purpose
6 of creating a sinking
fund to be used for the purchase of real
7 estate for sites for,
and the construction or repair of ,
8 school buildings or for any purpose for which a school district
9 may borrow money and issue bonds under section 1351a except
10 purchasing school buses. The sinking fund tax levy is subject to
1 the 15 mill tax limitation provisions of section 6 of article IX
2 of the state constitution of 1963 and the property tax limitation
3 act, Act No. 62 of
the Public Acts of 1933, as amended, being
4 sections 211.201 to
211.217a of the Michigan Compiled Laws 1933
5 PA 62, MCL 211.201 to 211.217a.
6 (2) A school district that levies a sinking fund tax under
7 this section shall have an independent financial and compliance
8 audit of its sinking fund
conducted annually , including a
9 review of the uses of
the sinking fund, and shall submit
the
10 audit report to the department of treasury. If the department of
11 treasury determines from the audit report that the sinking fund
12 has been used for a purpose other than those authorized for the
13 sinking fund under this section or other than the purpose
14 specified in the ballot language as described in subsection (4),
15 the school district shall repay the misused funds to the sinking
16 fund from the school district's operating funds and shall not
17 levy a sinking fund tax under this section after the date the
18 department of treasury makes that determination.
19 (3) (2) The
proposition of levying a sinking fund tax shall
20 be submitted to the school electors of the school district at an
21 annual or special meeting or election.
22 (4) (3)
The Subject to subsection (6), the question of
23 levying taxes for the purpose of creating a sinking fund shall be
24 by ballot in substantially the following form:
25 "Shall _______________________________ levy __________ mills
26 (legal name of school district)
27 to create a sinking fund for the purpose of ___________________
1 _________________________________________________________________
2 for a period of _____ years?
3 Yes ( )
4 No ( )".
5 (5) (4) For
the purposes of this section, millage approved
6 by the school electors before December 1, 1993 for which the
7 authorization has not expired is considered to be approved by the
8 school electors.
9 (6) In the ballot language under subsection (4), a school
10 district may refer to the sinking fund by another appropriate
11 descriptive term, such as "infrastructure investment fund".