HB-6619, As Passed Senate, December 18, 2008

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 6619

     A bill to amend 1948 (1st Ex Sess) PA 31, entitled

"An act to provide for the incorporation of authorities to acquire,

furnish, equip, own, improve, enlarge, operate, and maintain

buildings, automobile parking lots or structures, recreational

facilities, stadiums, and the necessary site or sites therefor,

together with appurtenant properties and facilities necessary or

convenient for the effective use thereof, for the use of any

county, city, village, or township, or for the use of any

combination of 2 or more counties, cities, villages, or townships,

or for the use of any school district and any city, village, or

township wholly or partially within the district's boundaries, or

for the use of any school district and any combination of 2 or more

cities, villages, or townships wholly or partially within the

district's boundaries, or for the use of any intermediate school

district and any constituent school district or any city, village,

or township, wholly or partially within the intermediate school

district's boundaries; to provide for compensation of authority

commissioners; to permit transfers of property to authorities; to

authorize the execution of contracts, leases, and subleases

pertaining to authority property and the use of authority property;

to authorize incorporating units to impose taxes without limitation

as to rate or amount and to pledge their full faith and credit for

the payment of contract of lease obligations in anticipation of

which bonds are issued by an authority; to provide for the issuance

of bonds by such authorities; to validate action taken and bonds

issued; to provide other powers, rights, and duties of authorities

and incorporating units, including those for the disposal of

authority property; and to prescribe penalties and provide

remedies,"

by amending section 11 (MCL 123.961), as amended by 1980 PA 74.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 11. (1) For the purpose of defraying all or part of the

cost of acquiring, improving, and enlarging any building or

buildings, automobile parking lots or structures, recreational

facilities, stadiums, and the necessary site or sites for the

property, together with appurtenant properties and facilities

necessary or convenient for the effective use of the property,

furnishing and equipping the same, or refunding outstanding bonds,

as provided in section 11k, the authority, after execution and

delivery of a full faith and credit general obligation contract of

lease, as provided in this act, and pursuant to ordinance or

resolution duly adopted by a majority vote of the elected members

of the commission, may issue its negotiable bonds in anticipation

of the contract obligations of the incorporating unit or units to

make cash rental payments to the authority and may pledge the

receipts from the payments for payment of bonds and interest on the

bonds. Bonds shall not be issued unless the property has been

leased by the authority to its incorporating unit or units for a

period extending beyond the last maturity of the bonds and until

the contract of lease is fully effective. The bonds shall be called

building authority bonds, or, in the case of bonds issued to refund

outstanding bonds, the bonds shall be called building authority

refunding bonds.

     (2) For the purpose of defraying all or part of the cost of

refunding capital appreciation bonds originally issued on May 17,

1990, the authority, pursuant to resolution duly adopted by a

majority vote of the elected members of the commission, may issue

its negotiable bonds in anticipation of the contract obligations of

the incorporating unit to make cash rental payments to the

authority under a full faith and credit general obligation contract

of lease dated November 14, 1989, and may pledge the receipts from

the contract of lease for payment of bonds and interest on the

bonds. If issued before January 1, 2011, the refunding bonds are

not subject to the requirements of section 305(2), (3), (5), or

(6), 501, or 503 of the revised municipal finance act, 2001 PA 34,

MCL 141.2305, 141.2501, and 141.2503. Notwithstanding the bond

maturity dates contained in the notice of intention of entering

into the full faith and credit general obligation contract of lease

published by the incorporating unit as required by section 8b(3),

the refunding bonds may be payable through 2039.