BOND LENGTH; SPECIAL ASSESSMENTS S.B. 1080:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 1080 (as reported without amendment)
Committee: Environmental Quality
CONTENT
The bill would amend Part 307 (Inland Lake Levels) of the Natural Resources and Environmental Protection Act to extend the length of bonds and notes issued by a special assessment district, from 10 to 40, years after the date of issuance.
Under Part 307, if a county board, based on a preliminary study of a lake-level project, finds it expedient to have and resolves to have determined and established the normal level of an inland lake, the board must direct the prosecuting attorney or other legal counsel of the county to initiate a proceeding by proper petition in the court of that county for determining the normal level for that lake and for establishing a special assessment district if the board determines by resolution that one is necessary.
("Normal level" means the level or levels of the water of an inland lake that provided the most benefit to the public; that best protect the public health, safety, and welfare; that best preserve the natural resources of the State; and that best preserve and protect the value of the property around the lake. A normal level must be measured and described as an elevation based on national geodetic vertical datum.)
The special assessment district may issue bonds or lake level orders in anticipation of special assessments. Under the bill, instead, a special assessment district could issue any of the following in anticipation of the collection of special assessments:
-- Bonds or notes that would have to be payable by special assessments under Part 307 and could not be issued exceeding the cost of the lake level project that was being financed.
-- Lake level orders.
Bonds or notes issued for these purposes would have a final maturity date no more than 40 years after the date of original issuance.
Under the Act, the special assessment district may issue notes in anticipation of special assessments made against lands in the special assessment district or public corporation at large. The final maturity of the notes must be no later than 10 years from their date. The notes are subject to the Revised Municipal Finance Act. The bill would remove this language.
MCL 324.30705 Legislative Analyst: Dana Adams
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 9-14-20 Fiscal Analyst: Ryan Bergan
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.