HOUSE BILL No. 6070

 

December 2, 2014, Introduced by Rep. Kosowski and referred to the Committee on Local Government.

 

     A bill to amend 1976 PA 448, entitled

 

"Michigan energy employment act of 1976,"

 

by amending section 42 (MCL 460.842), as amended by 2002 PA 358.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 42. (1) A joint agency may issue bonds to pay all or part

 

of project costs of the joint agency. The bonds shall be payable

 

from and may be issued in anticipation of payment of the proceeds

 

of any of the methods of financing described in section 41 or

 

elsewhere in this act or as may be provided by law. A member

 

municipality of the joint agency may contract as provided in

 

section 43 or may contract to make payments, appropriations, or

 

contributions to the joint agency of the proceeds of taxes, special

 

assessments, or charges imposed and collected by the member

 

municipality or out of other funds legally available, and may

 


pledge its full faith and credit in support of its contractual

 

obligation to the joint agency. The contractual obligation shall

 

not constitute an indebtedness of the municipality within a

 

statutory or charter debt limitation. If the joint agency issues

 

bonds in anticipation of payments, appropriations, or contributions

 

to be made to the joint agency pursuant to contract by a political

 

subdivision having the power to levy and collect ad valorem taxes,

 

the political subdivision may obligate itself by the contract, and

 

thereupon may levy a tax on all taxable property within the

 

political subdivision, which tax as to rate or amount will not be

 

subject to limitation, as provided in section 6 of article IX of

 

the state constitution of 1963, for contract obligations in

 

anticipation of which bonds are issued to provide sufficient money

 

to fulfill its contractual obligation to the joint agency. The

 

contract is not subject to the revised municipal finance act, 2001

 

PA 34, MCL 141.2101 to 141.2821.

 

     (2) The bonds may be:

 

     (a) Issued for any period of years not exceeding 50.

 

     (b) Issued for a consideration other than cash.

 

     (c) For an amount that includes interest capitalized for a

 

period of not more than 10 years after the date of the bonds.

 

     (d) Secured by revenues, contract payments, funds, or

 

investments and securities as determined by the joint agency.

 

     (3) The resolution authorizing bonds may provide for the

 

appointment of 1 or more trustees for bondholders and a trustee may

 

be an individual or corporation domiciled or located within or

 

without this state and may be given appropriate powers whether with

 


or without the execution of an indenture.

 

     (4) Bonds issued by any joint agency under this act are

 

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

 

141.2101 to 141.2821.

 

     (5) A municipality or governmental unit may advance money or

 

deliver property to the joint agency to enable it to carry out or

 

finance any of its powers and duties. The joint agency may agree to

 

repay an advance or pay for the property within a period of not

 

more than 10 years, from the proceeds of its bonds or from other

 

funds legally available for that purpose, with or without interest

 

as may be agreed at the time of the advance or delivery. The

 

obligation of the joint agency to make the repayment or payment may

 

be evidenced by contract or note, which contract or note may pledge

 

a source of payment determined by the joint agency.

 

     (6) A municipality desiring to enter into a contract under

 

this section pledging the full faith and credit of the municipality

 

shall authorize, by resolution of its governing body, the execution

 

of the contract. Subsequent Before January 1, 2015, subsequent to

 

the adoption of the resolution a notice of the contract shall be

 

published by the municipality in a newspaper of general publication

 

in the municipality. , which Beginning January 1, 2015, subsequent

 

to the adoption of the resolution a notice of the contract shall be

 

provided by the municipality as tier A public notice as set forth

 

in the local government public notice act. The notice shall state

 

all of the following:

 

     (a) That the governing body has adopted a resolution

 

authorizing execution of the contract.

 


     (b) The purpose of the contract.

 

     (c) The source of payment of the municipality's contractual

 

obligation.

 

     (d) The right of referendum on the contract.

 

     (e) Any other information that the governing body determines

 

to be necessary to adequately inform all interested persons of the

 

nature of the obligation.

 

     (7) The contract may be executed and delivered by the

 

municipality upon approval by its governing body without a vote of

 

the electors, but the contract shall not become effective until the

 

expiration of 45 days after the date of publication of the notice

 

under subsection (6). If within the 45-day period a petition signed

 

by at least 10% or 15,000, whichever is the lesser, of the

 

registered electors residing within the limits of the municipality

 

is filed with the clerk of the municipality requesting a referendum

 

upon the contract, the contract shall not become effective until

 

approved by the vote of a majority of the electors of the

 

municipality qualified to vote and voting on the question at a

 

general or special election, which election shall be held within

 

180 days after the filing of a petition. When a contract described

 

in this section is to be entered into by any township only on

 

behalf of the unincorporated area of the township, only the

 

registered electors residing within the unincorporated area of the

 

township shall be qualified to sign the petition and vote at the

 

election.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. ___ or House Bill No. 5560 (request no.

 


03796'13) of the 97th Legislature is enacted into law.