March 24, 2005, Introduced by Reps. Vander Veen, Wenke, Ball, Huizenga, Taub and Stakoe and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1212 (MCL 380.1212), as amended by 2003 PA 299.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1212. (1) If approved by the school electors of the
school district, the board of a school district may levy a tax of
not
to exceed 5 mills on the state equalized valuation taxable
value of the real and personal property of the school district each
year for a period of not to exceed 20 years, for the purpose of
creating
a sinking fund to be used for the purchase of real estate
for
sites for, and the construction or repair
of , school
buildings or for any purpose for which a school district may borrow
money and issue bonds under section 1351a. The sinking fund tax
levy is subject to the 15 mill tax limitation provisions of section
6 of article IX of the state constitution of 1963 and the property
tax limitation act, 1933 PA 62, MCL 211.201 to 211.217a.
(2) A school district that levies a sinking fund tax under
this section shall have an independent financial and compliance
audit
of its sinking fund conducted annually , including a review
of
the uses of the sinking fund, and
shall submit the audit report
to the department of treasury. If the department of treasury
determines from the audit report that the sinking fund has been
used for a purpose other than those authorized for the sinking fund
under this section or other than the purpose specified in the
ballot language as described in subsection (4), the school district
shall repay the misused funds to the sinking fund from the school
district's operating funds and shall not levy a sinking fund tax
under this section after the date the department of treasury makes
that determination.
(3) (2)
The proposition of levying a
sinking fund tax shall
be submitted to the school electors of the school district at a
regular or special school election.
(4) (3)
The Subject to subsection (6), the
question of
levying taxes for the purpose of creating a sinking fund shall be
by ballot in substantially the following form:
"Shall _______________________________ levy __________ mills
(legal name of school district)
to create a sinking fund for the purpose of _______________________
___________________________________________________________________
for a period of _____ years?
Yes ( )
No ( )".
(5) (4)
For the purposes of this section,
millage approved
by the school electors before December 1, 1993 for which the
authorization has not expired is considered to be approved by the
school electors.
(6) In the ballot language under subsection (4), a school
district may refer to the sinking fund by another appropriate
descriptive term, such as "infrastructure investment fund".