February 11, 2016, Introduced by Rep. Schor and referred to the Committee on Local Government.
A bill to authorize the issuance of general obligation bonds
of this state to finance certain public infrastructure improvements
for local units of government and school districts located in this
state; to pledge the full faith and credit of this state for the
payment of principal and interest on the bonds; to pay for issuing
the bonds; to provide for other measures relating to the bonds; and
to provide for the submission of the question of the issuance of
the bonds to the electors of this state.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"Michigan infrastructure repair bond authorization act".
Sec. 2. This state shall borrow a sum not to exceed
$1,000,000,000.00 and issue the general obligation bonds of this
state, pledging the full faith and credit of this state for the
payment of principal and interest on the bonds to finance up to
$1,000,000,000.00 for public infrastructure improvements that
include, but are not limited to, drinking water system
improvements, sewage system improvements, lead and asbestos
contamination abatement, and heating and cooling improvements in
public buildings, for local units of government and school
districts located in this state as provided in this act.
Sec. 3. Bonds shall be issued pursuant to conditions, methods,
and procedures to be established by law.
Sec. 4. The proceeds of the sale of the bonds or any series of
the bonds, any premium and accrued interest received on the
delivery of the bonds, and any interest earned on the proceeds of
the bonds shall be deposited in the state treasury and credited to
the Michigan infrastructure repair fund created in the Michigan
infrastructure repair bond implementation act and shall be
disbursed from that fund only for the purposes for which the bonds
have been authorized, including the expense of issuing the bonds
and administrative costs. The proceeds of sale of the bonds or any
series of the bonds, any premium and accrued interest received on
the delivery of the bonds, and any interest earned on the proceeds
of the bonds shall be expended for the purposes set forth in this
act in a manner as provided by law.
Sec. 5. The question of borrowing a sum not to exceed
$1,000,000,000.00 and the issuance of the general obligation bonds
of this state for the purposes set forth in this act shall be
submitted to a vote of the electors of this state qualified to vote
on the question pursuant to section 15 of article IX of the state
constitution of 1963, at the next November general election. The
question submitted to the electors shall be substantially as
follows:
"Shall the state of Michigan borrow a sum not to exceed
$1,000,000,000.00 and issue general obligation bonds of this state,
pledging the full faith and credit of this state for the payment of
principal and interest on the bonds to finance up to
$1,000,000,000.00 for public infrastructure improvements that
include, but are not limited to, drinking water system
improvements, sewage system improvements, lead and asbestos
contamination abatement, and heating and cooling improvements in
public buildings, for local units of government and school
districts located in this state, with the method of repayment of
the bonds to be from the general fund and the Michigan
infrastructure repair fund of this state?
Yes........
No......... .".
Sec. 6. The secretary of state shall perform all acts
necessary to properly submit the question prescribed by section 5
to the electors of this state qualified to vote on the question at
the next November general election.
Sec. 7. (1) After the issuance of the bonds authorized by this
act, there shall be appropriated from the general fund and the
Michigan infrastructure repair fund of this state each fiscal year
a sufficient amount to pay promptly, when due, the principal of and
interest on all outstanding bonds authorized by this act and the
costs incidental to the payment of the bonds.
(2) The governor shall include the appropriation provided in
subsection (1) in the governor's annual executive budget
recommendations to the legislature.
Sec. 8. Bonds shall not be issued under this act unless the
question set forth in section 5 is approved by a majority vote of
the qualified electors voting on the question.