HOUSE BILL No. 5407


     November 1, 2001, Introduced by Rep. Gilbert and referred to the Committee on Commerce.


        A bill to amend 1976 PA 451, entitled

   "The revised school code,"

   by amending section 629 (MCL 380.629), as amended by 1997 PA

   152.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 629.  (1) An intermediate school board may borrow,

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      subject to the  municipal finance act, 1943 PA 202, MCL 131.1 to

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      139.3  REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

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      141.2821, sums of money on terms the intermediate school board

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      considers necessary for 1 or more of the following purposes:

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           (a) For temporary purposes for which the intermediate school

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      board may give notes of the intermediate school district.  The

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      intermediate school board shall not borrow a sum that exceeds the

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      amount that has been voted by the intermediate school board or

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      the school electors of the intermediate school district.


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           (b) To purchase sites for buildings; to purchase, erect,

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      complete, remodel, improve, furnish, refurnish, equip, or reequip

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      buildings and facilities the board is authorized to acquire,

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      including, but not limited to, general administrative, vocation-

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      al, or special education buildings or facilities, or parts of

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      those buildings or facilities, or additions to those buildings or

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      facilities, and prepare, develop, or improve sites for those

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      buildings or facilities; to purchase and install information

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      technology systems, together with the equipment and software, as

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      are necessary for programs conducted by the intermediate school

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      district under section 627(2); and to issue and sell bonds of the

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      intermediate school district in the form and on the terms the

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      board considers advisable.

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           (2) An intermediate school board shall not borrow money or

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      issue bonds for  a term longer than 30 years or, except as other-

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      wise provided in this subsection, for  a sum  which  THAT,

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      together with the total outstanding bonded indebtedness of the

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      intermediate school district, exceeds 1/9 of 1% of the  state

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      equalized valuation  TAXABLE VALUE of the taxable property within

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      the district, unless the question of borrowing the money or issu-

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      ing bonds is submitted first to a vote of the school electors of

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      the intermediate school district held under sections 661 and 662

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      and approved by the majority of the registered school electors

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      voting on the question.  Regardless of the amount of outstanding

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      bonded indebtedness of the intermediate school district, a vote

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      of the school electors is not necessary in order to issue bonds

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      for a purpose described in section 1274a or to issue bonds under



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      section 11i of the state school aid act of 1979, 1979 PA 94, MCL

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      388.1611i.  Money may be borrowed and bonds may be issued for the

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      purposes stated in this section in an amount equal to that pro-

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      vided by part 17.  For the purposes of this subsection, bonds

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      authorized by vote of the school electors for special education

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      facilities under part 30 and for area vocational-technical educa-

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      tion facilities under sections 681 to 690 and bonds issued under

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      section 11i of the state school aid act of 1979, 1979 PA 94, MCL

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      388.1611i, shall not be included in computing the total outstand-

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      ing bonded indebtedness of an intermediate school district.

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           (3) Not later than 30 days after receipt of notice that the

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      question of issuing bonds under this section to purchase and

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      install information technology systems as are necessary for a

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      cooperative program under section 627(2) will be submitted to the

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      school electors of the intermediate school district, the board of

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      a constituent school district by resolution may elect not to par-

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      ticipate in the cooperative program and not to conduct an elec-

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      tion on the question within the constituent school district.





















   05322'01          Final page.                            JLB