HB-4994, As Passed Senate, May 3, 2016

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4994

A bill to amend 1851 PA 156, entitled

"An act to define the powers and duties of the county boards of

commissioners of the several counties, and to confer upon them

certain local, administrative and legislative powers; and to

prescribe penalties for the violation of the provisions of this

act,"

by amending section 11c (MCL 46.11c), as amended by 2002 PA 275.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 11c. (1) A county board of commissioners may provide by

resolution for the acquisition or financing of energy conservation

improvements to be made to county facilities or infrastructure and

may pay for the improvements or the financing or refunding of the

improvements from the general fund of the county or from the

savings that result from the energy conservation improvements.

Energy conservation improvements may include, but are not limited

to, heating, ventilating, or air-conditioning system improvements,

fenestration improvements, roof improvements, the installation of

any insulation, the installation or repair of heating, ventilating,

or ~~air conditioning~~ air-conditioning controls, ~~and~~ entrance or exit

way closures, information technology improvements associated with

an energy conservation improvement, and municipal utility

improvements associated with an energy conservation improvement.

(2) The county board of commissioners of a county may acquire,

finance, or refund 1 or more of the energy conservation

improvements described in subsection (1) by installment contract,

which may include a lease-purchase agreement described in

subsection (5), or may borrow money and issue notes for the purpose

of securing funds for the improvements or may enter into contracts

in which the cost of the energy conservation improvements is paid

from a portion of the savings that result from the energy

conservation improvements. These contractual agreements may provide

that the cost of the energy conservation improvements are paid only

if the energy savings are sufficient to cover their cost. An

installment contract, a lease-purchase agreement described in

subsection (5), or notes issued pursuant to this subsection shall

extend for a period of time not to exceed 10 20 years from the date

of the final completion of the energy conservation improvements or

the useful life of the aggregate energy conservation improvements,

whichever is less. Notes issued pursuant to this subsection shall

be full faith and credit, tax limited obligations of the county,

payable from tax levies and the general fund as pledged by the

county board of commissioners of the county. The notes are subject

to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to

141.2821. A lease-purchase agreement issued pursuant to this

subsection shall not be subject to the revised municipal finance

act, 2001 PA 34, MCL 141.2101 to 141.2821, and shall not be a

municipal security or a debt as those terms are defined in that

act. This subsection does not limit in any manner the borrowing or

bonding authority of a county as provided by law.

(3) If Prior to entering into a contract for energy

conservation improvements ~~are made as provided in~~ under this

section, the county board of commissioners shall determine the

following information and, within 60 days of the completion of the

improvements, shall report the following information to the

department of treasury: ~~within 60 days of the completion of the~~

~~improvements:~~

(a) Name of each facility to which an improvement is made and

a description of the energy conservation improvement.

(b) Actual energy consumption during the 12-month period

before ~~completion~~ commencement of the improvement.

lease payments over the duration of the lease-purchase agreement.

(d) Estimated annual energy savings, including projected

savings over the duration of the installment contract.

(4) If energy conservation improvements are made as provided

in this section, the county board of commissioners shall report to

the department of treasury, by July 1 of each of the 5 years after

the improvements are completed, only the actual annual energy

consumption of each facility to which improvements are made. The

forms for the reports required by this section shall be furnished

by the department of treasury.

(5) An installment contract described in this section may

include a lease-purchase agreement, which may be a multiyear

contractual obligation that provides for automatic renewal unless

positive action is taken by the legislative body to terminate that

contract. Payments under a lease-purchase agreement shall be a

current operating expense subject to annual appropriations of funds

by the legislative body and shall obligate the legislative body

only for those sums payable during the fiscal year of contract

execution or any renewal year thereafter. The legislative body may

make payments under a lease-purchase agreement from any legally

available funds or from a combination of energy or operational

savings, capital contributions, future replacement costs avoided,

or billable revenue enhancements that result from energy

conservation improvements, provided that the legislative body has

determined that those funds are sufficient to cover, in aggregate

over the full term of the contractual agreement, the cost of the

energy conservation improvements. The lease-purchase agreement will

terminate immediately and absolutely and without further obligation

on the part of the legislative body at the close of the fiscal year

in which it was executed or renewed or at such time as appropriated

and otherwise unobligated funds are no longer available to satisfy

the obligations of the legislative body under the lease-purchase

agreement. During the term of the lease-purchase agreement, the

legislative body shall be the vested owner of the energy

conservation improvements and may grant a security interest in the

energy conservation improvements to the provider of the lease-

purchase agreement. Upon the termination of the lease-purchase