SENATE BILL No. 629

 

 

October 17, 2013, Introduced by Senators JONES and WHITMER and referred to the Committee on Economic Development.

 

 

 

     A bill to amend 1948 (1st Ex Sess) PA 31, entitled

 

"An act to provide for the incorporation of authorities to acquire,

furnish, equip, own, improve, enlarge, operate, and maintain

buildings, automobile parking lots or structures, transit-oriented

developments, transit-oriented facilities, recreational facilities,

stadiums, and the necessary site or sites therefor, together with

appurtenant properties and facilities necessary or convenient for

the effective use thereof, for the use of any county, city,

village, or township, or for the use of any combination of 2 or

more counties, cities, villages, or townships, or for the use of

any school district and any city, village, or township wholly or

partially within the district's boundaries, or for the use of any

school district and any combination of 2 or more cities, villages,

or townships wholly or partially within the district's boundaries,

or for the use of any intermediate school district and any

constituent school district or any city, village, or township,

wholly or partially within the intermediate school district's

boundaries; to provide for compensation of authority commissioners;

to permit transfers of property to authorities; to authorize the

execution of contracts, leases, and subleases pertaining to

authority property and the use of authority property; to authorize

incorporating units to impose taxes without limitation as to rate

or amount and to pledge their full faith and credit for the payment

of contract of lease obligations in anticipation of which bonds are

issued by an authority; to provide for the issuance of bonds by


such authorities; to validate action taken and bonds issued; to

provide other powers, rights, and duties of authorities and

incorporating units, including those for the disposal of authority

property; and to prescribe penalties and provide remedies,"

 

by amending section 11 (MCL 123.961), as amended by 2008 PA 452.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 11. (1) For the purpose of defraying all or part of the

 

cost of acquiring, improving, and enlarging any building or

 

buildings, automobile parking lots or structures, recreational

 

facilities, stadiums, and the necessary site or sites for the

 

property, together with appurtenant properties and facilities

 

necessary or convenient for the effective use of the property,

 

furnishing and equipping the same, or refunding outstanding bonds,

 

the authority, after execution and delivery of a full faith and

 

credit general obligation contract of lease, as provided in this

 

act, and pursuant to ordinance or resolution duly adopted by a

 

majority vote of the elected members of the commission, may issue

 

its negotiable bonds in anticipation of the contract obligations of

 

the incorporating unit or units to make cash rental payments to the

 

authority and may pledge the receipts from the payments for payment

 

of bonds and interest on the bonds. Bonds shall not be issued

 

unless the property has been leased by the authority to its

 

incorporating unit or units for a period extending beyond the last

 

maturity of the bonds and until the contract of lease is fully

 

effective. The bonds shall be called building authority bonds, or,

 

in the case of bonds issued to refund outstanding bonds, the bonds

 

shall be called building authority refunding bonds.

 

     (2) For the purpose of defraying all or part of the cost of

 

refunding capital appreciation bonds originally issued on May 17,


 

1990, or bonds issued to refund those bonds, the authority,

 

pursuant to resolution duly adopted by a majority vote of the

 

elected members of the commission, may issue its negotiable bonds

 

in anticipation of the contract obligations of the incorporating

 

unit to make cash rental payments to the authority under a full

 

faith and credit general obligation contract of lease dated

 

November 14, 1989, and may pledge the receipts from the contract of

 

lease for payment of bonds and interest on the bonds. If issued

 

before January 1, 2011, December 31, 2019, the refunding bonds are

 

not subject to the requirements of section 305(2), (3), (5), or

 

(6), 501, or 503, or 611 of the revised municipal finance act, 2001

 

PA 34, MCL 141.2305, 141.2501, and 141.2503, and 141.2611.

 

Notwithstanding the bond maturity dates contained in the notice of

 

intention of entering into the full faith and credit general

 

obligation contract of lease published by the incorporating unit as

 

required by section 8b(3), the refunding bonds may be payable

 

through 2039.2043.