SENATE BILL No. 1304

May 8, 2002, Introduced by Senators SIKKEMA and STEIL and referred to the Committee on

Finance.

A bill to amend 1933 PA 99, entitled

"An act to authorize villages, townships, cities, and school dis-

tricts to enter into contracts and agreements for the purchase of

real or personal property for public purposes; to provide for the

payment of the purchase price thereof; to authorize school dis-

tricts to enter into certain other contracts; and to prescribe

the use of the real or personal property,"

by amending section 1 (MCL 123.721), as amended by 1997 PA 77.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. (1) A village, township, city, or school district,

2 after adoption of a resolution by its governing body approving

3 the action, may enter into any A contract or agreement for the

4 purchase of real or personal property for public purposes, to be

5 paid for in installments over a period of not to exceed 15 years

6 FOR PERSONAL PROPERTY, OR OVER A PERIOD OF NOT TO EXCEED 30 YEARS

7 FOR REAL PROPERTY AND BUILDINGS, and not to exceed the useful

8 life of the property acquired as determined by the resolution.

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1 For school buses, the determined useful life shall not exceed 6

2 years. The EXCEPT AS PROVIDED IN SUBSECTION (5), THE outstand-

3 ing balance of all purchases authorized under this act, exclusive

4 of interest, shall not exceed 1-1/4% of the taxable value of the

5 real and personal property in the village, township, city, or

6 school district at the date of the contract or agreement. The

7 limitations do not apply to contracts or leases entered into

8 under 1948 (1st Ex Sess) PA 31, MCL 123.951 to 123.965, or to

9 other contracts or leases between public corporations or

10 municipalities. The contracts or agreements, and the purchase of

11 property under the contracts or agreements are not subject to

12 the provisions of the REVISED municipal finance act, 1943

13 PA 202, MCL 131.1 to 139.3 2001 PA 34, MCL 141.2101 TO

14 141.2821.

15 (2) The governing body of a village, township, city, or

16 school district may include in its budget and pay a sum or sums

17 as may be necessary each year to meet the payments of any

18 installments, and the interest thereon ON THE INSTALLMENTS,

19 when and as the installment becomes due, including overdue

20 installments.

21 (3) The authority granted in this act shall DOES not be

22 construed to authorize the governing body of a city, village,

23 township, or school district to levy taxes in excess of statutory

24 or charter limitations without the approval of its electors.

25 (4) The limitations imposed by subsection (1) are not appli-

26 cable to a contract for purchase of lands declared surplus by the

27 United States government or one 1 of its agencies, subject to

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1 the prior approval of the contract by the department of

2 treasury.

3 (5) IF THE AGGREGATE OUTSTANDING BALANCE OF PURCHASES FOR

4 REAL PROPERTY AND BUILDINGS ONLY, EXCLUDING INTEREST AND THOSE

5 CONTRACTS OR LEASES THAT ARE ENTERED INTO PURSUANT TO 1948 (1ST

6 EX SESS) PA 31, MCL 123.951 TO 123.965, OR ENTERED INTO WITH A

7 PUBLIC CORPORATION OR MUNICIPALITY, DOES NOT EXCEED 1-1/4% OF THE

8 TAXABLE VALUE OF THE REAL AND PERSONAL PROPERTY IN THE VILLAGE,

9 TOWNSHIP, CITY, OR SCHOOL DISTRICT AT THE DATE OF THE CONTRACT OR

10 AGREEMENT, THEN THE AGGREGATE OUTSTANDING BALANCE OF THE PUR-

11 CHASES FOR REAL PROPERTY AND BUILDINGS SHALL NOT BE INCLUDED IN

12 THE CALCULATION OF THE AGGREGATE OUTSTANDING BALANCE UNDER

13 SUBSECTION (1).

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