October 15, 2015, Introduced by Rep. Pscholka and referred to the Committee on Local Government.
A bill to amend 1909 PA 278, entitled
"The home rule village act,"
by amending section 24b (MCL 78.24b), as amended by 2002 PA 277.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 24b. (1) The governing body of a village may provide by
resolution for energy conservation improvements to be made to
village facilities or infrastructure and may pay for the
improvements from operating funds of the village or from the
savings that result from the energy conservation improvements.
Energy conservation improvements may include, but are not limited
to, heating, ventilating, or air-conditioning system improvements,
fenestration improvements, roof improvements, the installation of
any insulation, the installation or repair of heating, ventilating,
or
air conditioning air-conditioning
controls, and entrance or exit
way closures, information technology improvements associated with
an energy conservation improvement, and municipal utility
improvements associated with an energy conservation improvement.
(2) The governing body of a village may acquire 1 or more of
the energy conservation improvements described in subsection (1) by
installment contract, which may include a lease-purchase agreement
described in subsection (5), or may borrow money and issue notes
for the purpose of securing funds for the improvements or may enter
into contracts in which the cost of the energy conservation
improvements is paid from a portion of the savings that result from
the energy conservation improvements. These contractual agreements
may provide that the cost of the energy conservation improvements
are paid only if the energy savings are sufficient to cover their
cost. An installment contract, a lease-purchase agreement described
in subsection (5), or notes issued pursuant to this subsection
shall
extend for a period of time not to exceed 10 20 years
from
the date of installation of the energy conservation improvement.
Notes issued pursuant to this subsection shall be full faith and
credit, tax limited obligations of the village, payable from tax
levies and the general fund as pledged by the governing body of the
village. The notes are subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821. A lease-purchase
agreement issued pursuant to this subsection shall not be subject
to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821, and shall not be a municipal security or a debt as those
terms are defined in that act. This subsection does not limit in
any manner the borrowing or bonding authority of a village as
provided by law.
(3) If energy conservation improvements are made as provided
in this section, the governing body of a village shall report the
following information to the department of treasury within 60 days
of the completion of the improvements:
(a) Name of each facility to which an improvement is made and
a description of the conservation improvement.
(b) Actual energy consumption during the 12-month period
before completion of the improvement.
(c) Project costs and expenditures.
(d) Estimated annual energy savings.
(4) If energy conservation improvements are made as provided
in this section, the governing body of a village shall report to
the department of treasury, by July 1 of each of the 5 years after
the improvements are completed, only the actual annual energy
consumption of each facility to which improvements are made. The
forms for the reports required by this section shall be furnished
by the department of treasury.
(5) An installment contract described in this section may
include a lease-purchase agreement, which may be a multiyear
contractual obligation that provides for automatic renewal unless
positive action is taken by the legislative body to terminate that
contract. Payments under a lease-purchase agreement shall be a
current operating expense subject to annual appropriations of funds
by the legislative body and shall obligate the legislative body
only for those sums payable during the fiscal year of contract
execution or any renewal year thereafter. The legislative body may
make payments under a lease-purchase agreement from any legally
available funds or from a combination of energy or operational
savings, capital contributions, future replacement costs avoided,
or billable revenue enhancements that result from energy
conservation improvements, provided that the legislative body has
determined that those funds are sufficient to cover, in aggregate
over the full term of the contractual agreement, the cost of the
energy conservation improvements. The lease-purchase agreement will
terminate immediately and absolutely and without further obligation
on the part of the legislative body at the close of the fiscal year
in which it was executed or renewed or at such time as appropriated
and otherwise unobligated funds are no longer available to satisfy
the obligations of the legislative body under the lease-purchase
agreement. During the term of the lease-purchase agreement, the
legislative body shall be the vested owner of the energy
conservation improvements and may grant a security interest in the
energy conservation improvements to the provider of the lease-
purchase agreement. Upon the termination of the lease-purchase
agreement and the satisfaction of the obligations of the
legislative body, the provider of the lease-purchase agreement
shall release its security interest in the energy conservation
improvements.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.