June 21, 2006, Introduced by Rep. Booher and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1351 (MCL 380.1351), as amended by 2003 PA 299.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1351. (1) Until May 1, 1994, a school district may borrow
money and issue bonds of the district to defray all or a part of
the cost of purchasing, erecting, completing, remodeling,
improving, furnishing, refurnishing, equipping, or reequipping
school buildings, including library buildings, structures, athletic
fields, playgrounds, or other facilities, or parts of or additions
to those facilities; acquiring, preparing, developing, or improving
sites, or parts of or additions to sites, for school buildings,
including library buildings, structures, athletic fields,
playgrounds, or other facilities; purchasing school buses;
participating in the administrative costs of an urban renewal
program through which the school district desires to acquire a site
or addition to a site for school purposes; refunding all or part of
existing bonded indebtedness; or accomplishing a combination of the
purposes set forth in this subsection. In addition, until December
31, 1991 a school district may borrow money and issue bonds to
defray all or part of the cost of purchasing textbooks.
(2) Except as otherwise provided in this subsection, a school
district shall not borrow money or issue bonds for a sum that,
together with the total outstanding bonded indebtedness of the
district, exceeds 5% of the state equalized valuation of the
taxable property within the district, unless the proposition of
borrowing the money or issuing the bonds is submitted to a vote of
the school electors of the district at a regular or special school
election and approved by the majority of the school electors voting
on the question. Regardless of the amount of outstanding bonded
indebtedness of the school district, a vote of the school electors
is not necessary in order to issue bonds for a purpose described in
section
1274a, or to issue bonds under section 11i of the state
school aid act of 1979, MCL 388.1611i, or to issue qualified zone
academy bonds, as defined in section 1397E of the internal revenue
code,
26 USC 1397E. For the purposes of this
subsection, bonds
issued
under section 11i of the state school aid act of 1979, MCL
388.1611i,
the following types of bonds
shall not be included in
computing the total outstanding bonded indebtedness of a school
district: .
(a) Bonds issued under section 11i of the state school aid act
of 1979, MCL 388.1611i.
(b) Qualified zone academy bonds, as defined in section 1397E
of the internal revenue code, 26 USC 1397E.
(3) A school district shall not issue bonds under this part
for an amount greater than 15% of the total assessed valuation of
the district, except as provided in section 1356. A bond qualified
under section 16 of article IX of the state constitution of 1963
and implementing legislation shall not be included for purposes of
calculating the 15% limitation. Bonds issued under this part are
subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821, except that bonds issued for a purpose
described in section 1274a may be sold at a public or publicly
negotiated sale at the time or times, at the price or prices, and
at a discount as determined by the board of the school district.
(4) Bonds or notes issued by a school district or intermediate
school district under this part or section 442, 629, or 1274a shall
be full faith and credit tax limited obligations of the district
pledging the general funds, voted and allocated tax levies, or any
other money available for such a purpose and shall not allow or
provide for the levy of additional millage for payment of the bond
or note without a vote of the qualified electorate of the district.