May 6, 2008, Introduced by Rep. Gillard and referred to the Committee on Appropriations.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1351 (MCL 380.1351), as amended by 2006 PA 680.
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, to issue bonds under section 11i or 11n of the state
school aid act of 1979, MCL 388.1611i and 388.1611n, or, if the
school district has fewer than 1,100 pupils in membership in 2006
and is located in a county with a population of less than 30,500 as
of the 2000 decennial census, to issue qualified zone academy
bonds. For the purposes of this subsection, 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) Bonds issued under section 11n of the state school aid act
of 1979, MCL 388.1611n.
(c)
(b) If the school district has fewer than 1,100 pupils
in
membership in 2006 and is located in a county with a population of
less than 30,500 as of the 2000 decennial census, qualified zone
academy bonds.
(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.
(5) As used in this section, "qualified zone academy bond"
means that term as defined in section 1397e of the internal revenue
code, 26 USC 1397e.