Act No. 147

Public Acts of 2000

Approved by the Governor

June 6, 2000

Filed with the Secretary of State

June 7, 2000

EFFECTIVE DATE: October 1, 2000

STATE OF MICHIGAN

90TH LEGISLATURE

REGULAR SESSION OF 2000

Introduced by Reps. Jellema, Caul, Gilbert, Scranton, Stamas, Byl, DeWeese, Bovin, Tesanovich, Ehardt, Mans, Prusi, Pestka, Callahan, LaSata, Mortimer, Kuipers and Birkholz

ENROLLED HOUSE BILL No. 5316

AN ACT to authorize certain governmental units to issue notes or bonds for planning for the acquisition, construction, improvement, or installation of safe drinking water facilities; to provide security for the payment of the principal of and interest on the notes or bonds; and to prescribe the powers and duties of certain governmental units.

The People of the State of Michigan enact:

Sec. 1. This act shall be known and may be cited as the "safe drinking water financial assistance act".

Sec. 2. As used in this act:

(a) "Assistance" means that term as it is defined in part 54 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5401 to 324.5418.

(b) "Community water supply" means that term as it is defined in part 54 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5401 to 324.5418.

(c) "Department" means the department of environmental quality.

(d) "Governmental unit" means a governmental unit as defined in section 3 of the shared credit rating act, 1985 PA 227, MCL 141.1053, that is eligible for reimbursement of project planning costs under section 5404(3)(b) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5404.

(e) "Noncommunity water supply" means that term as it is defined in part 54 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5401 to 324.5418.

(f) "Water supplier" means that term as it is defined in part 54 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5401 to 324.5418.

Sec. 3. Subject to this act, a governmental unit may issue notes or bonds and use the proceeds of the notes or bonds for planning for the acquisition, construction, improvement, or installation of real or personal property comprising all or a portion of a community water supply or noncommunity water supply or for the refunding or advance refunding of notes or bonds previously issued under this act, and for the payment of the costs of issuing the notes or bonds. For any governmental unit, the aggregate principal amount of all notes and bonds issued under this act less the principal amount used by the governmental unit to purchase notes or bonds issued by another governmental unit under this act shall not exceed $100,000.00. Subject to section 5, the issuance of notes or bonds under this act is not subject to any right of referendum, notwithstanding any other statutory or charter provision to the contrary. The notes or bonds issued under this act shall be sold to the Michigan municipal bond authority or to another governmental unit if the other governmental unit purchases the notes or bonds with proceeds of notes or bonds issued under this act and sold to the Michigan municipal bond authority. The notes or bonds issued under this act are not subject to the municipal finance act, 1943 PA 202, MCL 131.1 to 139.3. Subject to this act, each governmental unit is authorized to use proceeds of notes or bonds issued by it under this act and sold to the Michigan municipal bond authority to purchase notes or bonds issued under this act by any other governmental unit.

Sec. 4. Notes or bonds issued under this act shall be authorized by a resolution of the governing body of the governmental unit, which may pledge the full faith and credit of the governmental unit to the payment of the principal of and interest on the notes or bonds. The governmental unit may establish interest rates or methods for establishing interest rates, prices, discounts, maturities, principal amounts, denominations, dates of issuance, interest payment dates, optional or mandatory redemption or tender rights, obligations to be exercised by the governmental unit or the holders of the notes or bonds, the place of delivery and payment, and other matters and procedures necessary or desirable in connection with the issuance of the notes or bonds. A governmental unit may secure the notes or bonds with additional security as determined by the governing body of the governmental unit, including, but not limited to, a pledge or assignment of any school aid payments, revenue sharing payments or similar payments to be received from the state, a letter of credit, a line of credit, or an insurance contract. Subject to section 5, the governing body of the governmental unit authorizing the issuance of notes or bonds under this act may provide in the authorizing resolution that it is the duty of each officer and official of the governmental unit that issues notes or bonds authorized by this act, who is charged with such duty, to include in the annual taxes levied an amount such that the estimated collections thereof shall be sufficient to pay when due all payments of the principal of and interest on the notes or bonds due prior to the collection of the following year's taxes after taking into account money on hand or expected to be on hand for such payments from all sources. The governing body of the governmental unit shall include in its budget and pay such sum or sums that may be necessary each year to pay the principal of and the interest on the notes or bonds when and as the notes or bonds become due, including overdue installments or maturities. The resolution of the governing body of the governmental unit authorizing the issuance of notes or bonds under this act may authorize the governmental unit to enter into loan agreements, security agreements, pledge agreements, including, but not limited to, the pledge of water supply revenues, mortgages, assignments, or other agreements determined to be necessary to the issuance of the notes or bonds and may authorize the governmental unit to use proceeds of the notes or bonds sold to the Michigan municipal bond authority to purchase notes or bonds issued under this act by any other governmental unit.

Sec. 5. This act shall be construed as cumulative authority for the exercise of the powers granted under this act. The purpose of this act is to create full and complete additional and alternate methods for the exercise of these powers, and the powers conferred by this act shall not be affected or limited by any other statute or by any charter or incorporating document, except as otherwise provided in this act. However, this act does not authorize the governing body of any governmental unit to levy taxes in excess of constitutional, statutory, or charter limitations without the approval of its electors, as provided by law.

Enacting section 1. This act takes effect October 1, 2000.

This act is ordered to take immediate effect.

Clerk of the House of Representatives.

Secretary of the Senate.

Approved

Governor.