January 24, 2007, Introduced by Senator WHITMER and referred to the Committee on Education.




     A bill to amend 1976 PA 451, entitled


"The revised school code,"


by amending section 1212 (MCL 380.1212), as amended by 2003 PA 299.




     Sec. 1212. (1) If approved by the school electors of the


school district, the board of a school district may levy a tax of


not to exceed 5 mills on the state equalized valuation taxable


value of the real and personal property of the school district each


year for a period of not to exceed 20 years, for the purpose of


creating a sinking fund to be used for the purchase of real estate


for sites for, and the construction or repair of, school buildings,


or for any purpose for which a school district may borrow money and


issue bonds under section 1351a. The sinking fund tax levy is


subject to the 15 mill tax limitation provisions of section 6 of


article IX of the state constitution of 1963 and the property tax


limitation act, 1933 PA 62, MCL 211.201 to 211.217a.


     (2) A school district that levies a sinking fund tax under


this section shall have an independent audit of its sinking fund


conducted annually, including a review of the uses of the sinking


fund, and shall submit the audit report to the department of


treasury. If the department of treasury determines from the audit


report that the sinking fund has been used for a purpose other than


those authorized for the sinking fund under this section, the


school district shall repay the misused funds to the sinking fund


from the school district's operating funds and shall not levy a


sinking fund tax under this section after the date the department


of treasury makes that determination.


     (3) (2) The proposition of levying a sinking fund tax shall be


submitted to the school electors of the school district at a


regular or special school election.


     (4) (3) The question of levying taxes for the purpose of


creating a sinking fund shall be by ballot in substantially the


following form:




     "Shall _______________________________ levy _______ mills

            (legal name of school district)


to create a sinking fund for the purpose of _____________________




for a period of _____ years?


     Yes ( )


     No  ( )".




     (5) (4) For the purposes of this section, millage approved by


the school electors before December 1, 1993 for which the


authorization has not expired is considered to be approved by the


school electors.