HOUSE BILL No. 5486

 

November 28, 2007, Introduced by Reps. Dean, Scott and Espinoza and referred to the Committee on Tax Policy.

 

     A bill to amend 1981 PA 97, entitled

 

"Michigan municipal distributable aid bond act,"

 

by amending section 2 (MCL 141.1022), as amended by 1983 PA 77.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Commission" means the municipal finance commission

 

created under the municipal finance act, Act No. 202 of the Public

 

Acts of 1943, as amended, being sections 131.1 to 139.3 of the

 

Michigan Compiled Laws, department of treasury or its successor

 

agency.

 

     (b) "Debt service" means payments of principal and interest or

 

other required amounts upon distributable aid obligations.

 

     (c) "Director" means the director of the commission before

 


July 1, 1984, and the state treasurer on and after July 1, 1984.

 

     (d) "Distributable aid" means state shared revenues provided

 

for in the state revenue sharing act of 1971, Act No. 140 of the

 

Public Acts of 1971, as amended, being sections 141.901 to 141.921

 

of the Michigan Compiled Laws Glenn Steil state revenue sharing act

 

of 1971, 1971 PA 140, MCL 141.901 to 141.921, the single business

 

tax act, Act No. 228 of the Public Acts of 1975, as amended, being

 

sections 208.1 to 208.145 of the Michigan Compiled Laws 1975 PA

 

228, MCL 208.1 to 208.145, any other law providing for distribution

 

of state shared revenues which are derived from the same taxes

 

distributed under Act No. 140 of the Public Acts of 1971, as

 

amended, and Act No. 228 of the Public Acts of 1975, as amended the

 

Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL

 

141.901 to 141.921, and the single business tax act, 1975 PA 228,

 

MCL 208.1 to 208.145, and any law providing reimbursement to a

 

municipality under the state constitution of 1963 as reimbursement

 

for revenue which would otherwise be collected from taxes imposed

 

by the municipality.

 

     (e) "Distributable aid obligations" means obligations of a

 

municipality eligible to participate under this act.

 

     (f) "Governing body" means the board of commissioners of a

 

county; the township board of a township or charter township; the

 

council, common council, or commission of a city; the council,

 

commission, or board of trustees of a village; and in any other

 

governmental authority or agency, the officials or official body

 

who are given general governing powers.

 

     (g) "Municipality" means a county, city, village, township, or

 


charter township within the state which is eligible to receive

 

distributable aid and which is authorized by law or charter to

 

issue general obligation bonds or other instruments of

 

indebtedness.

 

     (h) "Municipality's financial officer" means the chief fiscal

 

officer of a municipality.

 

     (i) "Obligations" means general obligation bonds or notes of a

 

municipality including bonds, notes, or other debt instruments

 

which are secured, primarily or secondarily, by the full faith and

 

credit of the municipality and on which the last installment of

 

principal becomes due not less than 2 years after the date of

 

issuance. Obligations described in this subdivision, including

 

obligations issued prior to July 15, 1981 if so determined by the

 

governing body, may be payable from taxes levied without rate or

 

amount limitations or from taxes levied subject to constitutional,

 

statutory, or charter limitations.

 

     (j) "Paying agent" means a state or nationally chartered bank,

 

or state or federally chartered savings and loan association, or a

 

municipal or state officer named in distributable aid obligations

 

as the agent for the paying of the principal and interest and who

 

is qualified by law to act as a paying agent.