THE REVISED SCHOOL CODE (EXCERPT)
Act 451 of 1976
380.12 Loss of organization and dissolution of school district; attachment of disorganized district to organized school districts; distribution of property; taxation; bonded indebtedness; duties of board of trustees; audit; payment of discrepancy.
(1) A school district shall lose its organization if there are not enough persons in the district qualified under the law to hold district offices or who will accept the offices. Under either condition, the intermediate school board of the intermediate school district to which the district is constituent shall declare the district dissolved and immediately shall attach the territory, in whole or in part, to other organized school districts and make an equitable distribution of the money, property, and other material belonging to the district among the districts to which the territory is attached.
(2) The property of the disorganized district is subject to all increases in the constitutional limitation on taxes which have been voted by the school electors of the district to which it is attached. The disorganized district shall receive a credit in the amount of a levy remaining to be paid on an outstanding debt in the disorganized district, which shall be paid until debt is retired. The disorganized district shall pay an amount equal to the amount levied for debt retirement by the district to which it is attached not to exceed 5 mills on the state equalized valuation in the disorganized district. All other taxes levied for the purposes of the combined school district, including taxes for the retirement of bonded indebtedness, shall be spread over the entire area of the combined district.
(3) A disorganized district having a bonded indebtedness shall be attached in whole to another school district by the intermediate school board. The identity of the district is not lost because of the attachment, and its territory remains as separate assessing unit for the purpose of the bonded indebtedness until the indebtedness is retired or refunded. The board of the district to which the disorganized district is attached shall constitute the board of trustees for the disorganized district having the bonded indebtedness. Its officers shall be the officers for the disorganized district. The board of the district to which the disorganized district is attached shall certify the levy of taxes for bonded indebtedness in the name of the disorganized district, shall not commingle the debt retirement funds of the disorganized district with those of the district to which it is attached, and shall do all things relative to the bonded indebtedness required by law and by the terms under which the issuance and sale of the bonds were originally authorized. All other taxes levied for the purposes of the combined school district, including taxes levied for the retirement of bonded indebtedness, shall be spread over the entire area of the combined school district.
(4) Upon the attachment of a disorganized district to another school district, the intermediate school board shall audit the assets and liabilities of the disorganized district. If a considerable discrepancy is found, the intermediate school board shall order the receiving district to pay the discrepancy. The disorganized district shall repay that amount from moneys available including voted millage within a time to be determined by the intermediate school board.
History: 1976, Act 451, Imd. Eff. Jan. 13, 1977
Popular Name: Act 451
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