HOUSE BILL No. 5976 June 30, 1998, Introduced by Rep. Profit and referred to the Committee on Tax Policy. A bill to amend 1968 PA 2, entitled "Uniform budgeting and accounting act," by amending section 2d (MCL 141.422d), as amended by 1996 PA 401. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 2d. (1) "Depository library" means a depository 2 library designated under section 10 of the library of Michigan 3 act,Act No. 540 of the Public Acts of 1982, being4section 397.20 of the Michigan Compiled Laws1982 PA 540, MCL 5 397.20. 6 (2) "Legislative body" means any of the following: 7 (a) The council, commission, or other entity vested with the 8 legislative power of a village. 9 (b) The council or other entity vested with the legislative 10 power of a city. 06430'98 FDD 2 1 (c) The board of education of a local school district. 2 (d) The board of education of an intermediate school 3 district. 4 (e) The township board of a township. 5 (f) The county board of commissioners of a county. 6 (g) The board of county road commissioners of a county. 7 (h) The official body to which is granted general governing 8 powers over an authority or organization of government estab- 9 lished by law that may issue obligations pursuant to the munici- 10 pal finance act,Act No. 202 of the Public Acts of 1943, being11sections 131.1 to 139.3 of the Michigan Compiled Laws1943 PA 12 202, MCL 131.1 TO 139.3, and that either may levy a property tax 13 or may expend funds of the authority or organization. AS USED IN 14 THIS ACT, LEGISLATIVE BODY DOES NOT INCLUDE AN INTERMUNICIPALITY 15 COMMITTEE ESTABLISHED UNDER 1957 PA 200, MCL 123.631 TO 123.636. 16 (3) "Library of Michigan" means the library of Michigan cre- 17 ated under section 3 ofAct No. 540 of the Public Acts of 1982,18being section 397.13 of the Michigan Compiled LawsTHE LIBRARY 19 OF MICHIGAN ACT, 1982 PA 540, MCL 397.13. 20 (4) "LOCAL UNIT" DOES NOT INCLUDE AN INTERMUNICIPALITY COM- 21 MITTEE ESTABLISHED UNDER 1957 PA 200, MCL 123.631 TO 123.636. 22 Except as used in sections 14 to 20a,"local unit"LOCAL UNIT 23 means a village, city, or township or an authority or commission 24 established by a county, village, city, or township ordinance or 25 charter. As used in sections 14 to 20a,"local unit"LOCAL 26 UNIT means any of the following: 06430'98 3 1 (a) A village. 2 (b) A city. 3 (c) A local school district. 4 (d) An intermediate school district. 5 (e) A township. 6 (f) A county. 7 (g) A county road commission. 8 (h) An authority or organization of government established 9 by law that may issue obligations pursuant toAct No. 202 of the10Public Acts of 1943THE MUNICIPAL FINANCE ACT, 1943 PA 202, MCL 11 131.1 TO 139.3, and that either may levy a property tax or may 12 expend funds of the authority or organization. 13 (5) "Local school district" means the following: 14 (a) Unless included in subdivision (b) or (c), a school dis- 15 trict organized under part 2, 3, 4, 5, or 6 of the revised school 16 code,Act No. 451 of the Public Acts of 1976, being sections17380.71 to 380.485 of the Michigan Compiled Laws1976 PA 451, MCL 18 380.71 TO 380.485, or a local act school district. 19 (b) After December 15, 1981, a school district organized as 20 a local act school district or under part 2, 3, 4, 5, or 6 of 21Act No. 451 of the Public Acts of 1976THE REVISED SCHOOL CODE, 22 1976 PA 451, MCL 380.71 TO 380.485, which levied 35.75 mills, 23 34.83 mills, 28 mills, 31.2155 mills, 24.19 mills, 22.6027 mills, 24 or 27.90 mills for operating purposes in 1979-80, and operated 25 under a deficit budget for its 1980-81 fiscal year. Once a 26 school district is considered a local school district pursuant to 27 this subdivision or subdivision (c), the chief administrative 06430'98 4 1 officer shall comply, if necessary, with the requirements of 2 section 17 and the local school district shall amend, if neces- 3 sary, its budget or general appropriations act to conform with 4 the requirements of section 16. 5 (c) After December 15, 1981, any school district organized 6 as a local act school district or under part 2, 3, 4, 5, or 6 of 7Act No. 451 of the Public Acts of 1976THE REVISED SCHOOL CODE, 8 1976 PA 451, MCL 380.71 TO 380.485, that meets all of the follow- 9 ing criteria: 10 (i) A deficit in excess of $150,000.00 was incurred as of 11 June 30, 1980. 12 (ii) A deficit in excess of $300,000.00 was anticipated for 13 the fiscal year of the school district ending June 30, 1981. 14 (6) "Revenue" means an addition to the assets of a fund 15whichTHAT does not increase a liability, does not represent 16 the recovery of an expenditure, does not represent the cancella- 17 tion of a liability without a corresponding increase in any other 18 liability or a decrease in assets, and does not represent a con- 19 tribution of fund capital in enterprise or in intragovernmental 20 service funds. 21 (7) "Surplus" means an excess of the assets of a fund over 22 its liabilities and reserves. 06430'98 Final page. 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