HOUSE BILL No. 4911


     June 5, 2001, Introduced by Reps. Pappageorge, Gosselin, Drolet, Kuipers, Patterson, Richardville, Ehardt, Toy, Richner, Middaugh, Bradstreet,
Stallworth, Raczkowski, Ruth Johnson and Rocca and referred to the Committee on Tax Policy.


        A bill to amend 1957 PA 185, entitled

   "An act to authorize the establishing of a department and board
   of public works in counties; to prescribe the powers and duties
   of any municipality subject to the provisions of this act; to
   authorize the incurring of contract obligations and the issuance
   and payment of bonds or notes; to provide for a pledge by a
   municipality of its full faith and credit and the levy of taxes
   without limitation as to rate or amount to the extent necessary;
   to validate obligations issued; and to prescribe a procedure for
   special assessments and condemnation,"

   by amending section 11 (MCL 123.741) and by adding section 11a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
           Sec. 11.  (1) The  acquirement  ACQUISITION of a water

 2
      supply, sewage disposal, or refuse system, or the making of a

 3
      lake improvements or erosion control systems, or the improvement,

 4
      enlargement, or extension  thereof  OF 1 OF THESE SYSTEMS may be

 5
      financed in any of the following methods, or any combination

 6
       thereof  OF THE FOLLOWING METHODS:




   03356'01                                                 KDD                                   2

 1
           (a) By the issuance of revenue bonds under the provisions of

 2
       Act No. 94 of the Public Acts of 1933, as amended, being

 3
      sections 141.101 to 141.139 of the Michigan Compiled Laws  THE

 4
      REVENUE BOND ACT OF 1933, 1933 PA 94, MCL 141.101 TO 141.140, or

 5
      any other applicable act.

 6
           (b) By the issuance of bonds in anticipation of payments to

 7
      become due under contracts whereby 1 or more municipalities agree

 8
      to pay to the county operating under this act certain sums toward

 9
      the cost of the acquisition, improvement, enlargement, or exten-

10
      sion of a project  which  THAT may be made under this act.

11
           (c) By the issuance of bonds in anticipation of the payment

12
      of special assessments made by the board of public works.

13
           (d) By  moneys  MONEY advanced by a county operating under

14
      this act under agreements with a municipality or municipalities

15
      for the repayment of the  same  ACQUISITION, IMPROVEMENT,

16
      ENLARGEMENT, OR EXTENSION OF THE PROJECT.

17
           (e) By  moneys  MONEY advanced, from time to time, prior to

18
      or during construction of a project, by a public or private cor-

19
      poration, firm, or individual, in which event the county operat-

20
      ing under this act shall reimburse the person, firm, or corpora-

21
      tion, with interest not to exceed 8% per annum or without inter-

22
      est as may be agreed, when funds are available  therefor  FOR

23
      THAT PURPOSE.  The obligation of the county to make the reim-

24
      bursement may be evidenced by a contract or note, which contract

25
      or note may be made payable out of the payments to be made by

26
      municipalities, under contracts as described in section 12 or 15,

27
      or out of the proceeds of bonds issued  pursuant to  UNDER this



   03356'01                                   3

 1
      act by the county or out of any other available funds.  , but

 2
      EXCEPT AS OTHERWISE PROVIDED IN SECTION 11A, the contract or note

 3
       shall not be deemed to be  ENTERED INTO OR ISSUED UNDER THIS ACT

 4
      IS NOT an obligation within the meaning of the provisions of  Act

 5
      No. 202 of the Public Acts of 1943, as amended, being sections

 6
      131.1 to 138.2 of the Michigan Compiled Laws  THE MUNICIPAL

 7
      FINANCE ACT, 1943 PA 202, MCL 131.1 TO 139.3.

 8
           (2) Bonds issued under this act shall be authorized by an

 9
      ordinance or a resolution approved by the board of public works

10
      and adopted by the county board of commissioners of the county

11
      operating under this act.  The county board of commissioners is

12
      authorized by a 3/5 vote of its members elect, to pledge the full

13
      faith and credit of the county for the prompt payment of the

14
      principal of and interest on any bonds issued  pursuant to  UNDER

15
      this act.  The county's full faith and credit may be pledged to

16
      the payment of principal and interest on revenue bonds issued

17
       pursuant to  UNDER subsection (1)(a).  If it becomes necessary

18
      for the county operating under this act to advance any  moneys

19
      MONEY, other than its share of the cost of the project, for the

20
      payment of principal and interest, then it shall be entitled to

21
      reimbursement from any surplus from time to time existing in the

22
      fund from which the principal and interest are primarily

23
      payable.  If the faith and credit of the county is pledged for

24
      the payment of principal of and interest on any bonds issued

25
       pursuant to  UNDER this act, the county may, in the case of

26
      insufficiency of funds primarily pledged for the payment, pay the

27
      same from its general fund or levy taxes without limitation as to



   03356'01                                   4

 1
      rate or amount  therefor  in addition to any other taxes that the

 2
      county is authorized to levy but not in excess of the rate or

 3
      amount necessary to make up the deficiency.  The bonds shall be

 4
      issued in the name of the county and shall be executed by the

 5
      chairman of the county board of commissioners and its county

 6
      clerk, who shall also cause their facsimile signatures to be

 7
      affixed to the interest coupons to be attached to the bonds.  The

 8
      county clerk shall also affix to the bonds the seal of the

 9
      county.  Bonds issued under this act shall be negotiable instru-

10
      ments and shall be serial bonds payable annually, with the first

11
      maturity due not more than 5 years and the last maturity not more

12
      than 40 years from the date  thereof  OF ISSUANCE.   The forego-

13
      ing provisions shall apply  THIS SUBSECTION APPLIES to special

14
      assessment bonds as well as other bonds ISSUED UNDER THIS ACT.

15
      Annual maturity payable after 5 years from the date of the bonds

16
      shall not be less than 1/4 of the amount of any subsequent matu-

17
      rity on the same series of bonds.  The bonds shall bear interest

18
      at not more than the maximum rate permitted by  Act No. 202 of

19
      the Public Acts of 1943, as amended  THE MUNICIPAL FINANCE ACT,

20
      1943 PA 202, MCL 131.1 TO 139.3, payable semiannually except that

21
      the first coupon may be for any number of months not exceeding

22
      10.  The bonds and coupons shall be made payable in lawful money

23
      of the United States of America and shall be exempt from all tax-

24
      ation by  the  THIS state or by any taxing authority within 
   the

25
      THIS state.  The county board of commissioners may authorize the

26
      board of public works to sell the bonds in accordance with the

27
      laws of this state.



   03356'01                                   5

 1
           SEC. 11A.  IF A COUNTY OPERATING UNDER THIS ACT PLEDGES ANY

 2
      PORTION OF THE GENERAL FUND OF THE COUNTY AND ISSUES ANY BOND

 3
      OTHER THAN A GENERAL OBLIGATION BOND OR A REVENUE BOND UNDER THIS

 4
      ACT, THE GOVERNING BODY OF THE COUNTY OPERATING UNDER THIS ACT

 5
      SHALL PROVIDE FOR AND PUBLISH A NOTICE OF INTENT AS PROVIDED IN

 6
      SECTION 10 OF CHAPTER 5 OF THE MUNICIPAL FINANCE ACT, 1943 PA

 7
      202, MCL 135.10.










































   03356'01          Final page.                            KDD