HOUSE BILL No. 5013


     July 8, 1997, Introduced by Reps. Baird, Martinez, Quarles, Baade, Scott, Vaughn, Gire and Brater 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 1993 PA

   312.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 1212.  (1) If approved by the school electors of the

 2    school district, the board of a school district may levy a tax of

 3    not to exceed 5 mills on the state equalized valuation of the

 4    school district each year for a period of not to exceed 20 years,

 5    for the purpose of creating a sinking fund to be used for the

 6    purchase of real estate for sites for, and the construction or

 7    repair of, school buildings; FOR THE PURCHASE OF SCHOOL BUSES; OR

 8    FOR THE PURCHASE OF COMPUTER TECHNOLOGY AND SOFTWARE.  The

 9    sinking fund tax levy is subject to the 15 mill tax limitation

10    provisions of section 6 of article IX of the state constitution


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 1    of 1963 and the property tax limitation act,  Act No. 62 of the

 2     Public Acts of 1933, as amended, being sections 211.201 to

 3     211.217a of the Michigan Compiled Laws  1933 PA 62, MCL 211.201

 4    TO 211.217A.  A school district that levies a sinking fund tax

 5    under this section shall have an independent audit of its sinking

 6    fund conducted annually, including a review of the uses of the

 7    sinking fund, and shall submit the audit report to the department

 8    of treasury.  If the department of treasury determines from the

 9    audit report that the sinking fund has been used for a purpose

10    other than those authorized for the sinking fund under this sec-

11    tion, the school district shall repay the misused funds to the

12    sinking fund from the school district's operating funds and shall

13    not levy a sinking fund tax under this section after the date the

14    department of treasury makes that determination.

15         (2) The proposition of levying a sinking fund tax shall be

16    submitted to the school electors of the school district at an

17    annual or special meeting or election.

18         (3) The question of levying taxes for the purpose of creat-

19    ing a sinking fund shall be by ballot in substantially the fol-

20    lowing form:

21         "Shall _______________________________ levy __________ mills
22                (legal name of school district)

23    to create a sinking fund for the purpose of ___________________

24    _________________________________________________________________

25    for a period of _____ years?

26         Yes ( )

27         No  ( )".




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 1         (4) For the purposes of this section, millage approved by

 2    the school electors before December 1, 1993 for which the

 3    authorization has not expired is considered to be approved by the

 4    school electors.
















































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