December 2, 2014, Introduced by Rep. Kosowski and referred to the Committee on Local Government.
A bill to amend 1976 PA 448, entitled
"Michigan energy employment act of 1976,"
by amending section 42 (MCL 460.842), as amended by 2002 PA 358.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 42. (1) A joint agency may issue bonds to pay all or part
of project costs of the joint agency. The bonds shall be payable
from and may be issued in anticipation of payment of the proceeds
of any of the methods of financing described in section 41 or
elsewhere in this act or as may be provided by law. A member
municipality of the joint agency may contract as provided in
section 43 or may contract to make payments, appropriations, or
contributions to the joint agency of the proceeds of taxes, special
assessments, or charges imposed and collected by the member
municipality or out of other funds legally available, and may
pledge its full faith and credit in support of its contractual
obligation to the joint agency. The contractual obligation shall
not constitute an indebtedness of the municipality within a
statutory or charter debt limitation. If the joint agency issues
bonds in anticipation of payments, appropriations, or contributions
to be made to the joint agency pursuant to contract by a political
subdivision having the power to levy and collect ad valorem taxes,
the political subdivision may obligate itself by the contract, and
thereupon may levy a tax on all taxable property within the
political subdivision, which tax as to rate or amount will not be
subject to limitation, as provided in section 6 of article IX of
the state constitution of 1963, for contract obligations in
anticipation of which bonds are issued to provide sufficient money
to fulfill its contractual obligation to the joint agency. The
contract is not subject to the revised municipal finance act, 2001
PA 34, MCL 141.2101 to 141.2821.
(2) The bonds may be:
(a) Issued for any period of years not exceeding 50.
(b) Issued for a consideration other than cash.
(c) For an amount that includes interest capitalized for a
period of not more than 10 years after the date of the bonds.
(d) Secured by revenues, contract payments, funds, or
investments and securities as determined by the joint agency.
(3) The resolution authorizing bonds may provide for the
appointment of 1 or more trustees for bondholders and a trustee may
be an individual or corporation domiciled or located within or
without this state and may be given appropriate powers whether with
or without the execution of an indenture.
(4) Bonds issued by any joint agency under this act are
subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(5) A municipality or governmental unit may advance money or
deliver property to the joint agency to enable it to carry out or
finance any of its powers and duties. The joint agency may agree to
repay an advance or pay for the property within a period of not
more than 10 years, from the proceeds of its bonds or from other
funds legally available for that purpose, with or without interest
as may be agreed at the time of the advance or delivery. The
obligation of the joint agency to make the repayment or payment may
be evidenced by contract or note, which contract or note may pledge
a source of payment determined by the joint agency.
(6) A municipality desiring to enter into a contract under
this section pledging the full faith and credit of the municipality
shall authorize, by resolution of its governing body, the execution
of
the contract. Subsequent Before
January 1, 2015, subsequent to
the adoption of the resolution a notice of the contract shall be
published by the municipality in a newspaper of general publication
in
the municipality. , which Beginning
January 1, 2015, subsequent
to the adoption of the resolution a notice of the contract shall be
provided by the municipality as tier A public notice as set forth
in the local government public notice act. The notice shall state
all of the following:
(a) That the governing body has adopted a resolution
authorizing execution of the contract.
(b) The purpose of the contract.
(c) The source of payment of the municipality's contractual
obligation.
(d) The right of referendum on the contract.
(e) Any other information that the governing body determines
to be necessary to adequately inform all interested persons of the
nature of the obligation.
(7) The contract may be executed and delivered by the
municipality upon approval by its governing body without a vote of
the electors, but the contract shall not become effective until the
expiration
of 45 days after the date of publication of the notice
under subsection (6). If within the 45-day period a petition signed
by at least 10% or 15,000, whichever is the lesser, of the
registered electors residing within the limits of the municipality
is filed with the clerk of the municipality requesting a referendum
upon the contract, the contract shall not become effective until
approved by the vote of a majority of the electors of the
municipality qualified to vote and voting on the question at a
general or special election, which election shall be held within
180 days after the filing of a petition. When a contract described
in this section is to be entered into by any township only on
behalf of the unincorporated area of the township, only the
registered electors residing within the unincorporated area of the
township shall be qualified to sign the petition and vote at the
election.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. ___ or House Bill No. 5560 (request no.
03796'13) of the 97th Legislature is enacted into law.