SENATE BILL No. 384

 

 

May 17, 2017, Introduced by Senators ZORN, BOOHER, HANSEN and KNEZEK and referred to the Committee on Finance.

 

 

      A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending section 1212 (MCL 380.1212), as amended by 2016 PA 319.

 

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 on

 

 3  the taxable value of the real and personal property of the school

 

 4  district each year for the purpose of creating a sinking fund. All

 

 5  of the following apply to a sinking fund tax authorized under this

 

 6  section:

 

 7        (a) For a sinking fund tax authorized before the effective

 

 8  date of the amendatory act that added subsection (6), March 29,

 

 9  2017, the sinking fund tax may be used for the purchase of real

 

10  estate for sites for, and the construction or repair of, school

 

11  buildings. For a sinking fund tax authorized on or after the


 1  effective date of the amendatory act that added subsection (6),

 

 2  March 29, 2017, the sinking fund tax may be used for the purchase

 

 3  of real estate for sites for, and the construction or repair of,

 

 4  school buildings, for school security improvements, or for the

 

 5  acquisition or upgrading of technology, or for purchasing school

 

 6  buses. This subdivision does not impose a cap on the total amount

 

 7  of money that may be spent on the purchase of school buses using

 

 8  the sinking fund tax, but the sinking fund tax shall not be used

 

 9  for compensation for school bus drivers or for costs relating to

 

10  servicing or maintaining a school bus.

 

11        (b) For a sinking fund tax authorized before the effective

 

12  date of the amendatory act that added subsection (6), March 29,

 

13  2017, the sinking fund tax shall not exceed 5 mills. For a sinking

 

14  fund tax authorized on or after the effective date of the

 

15  amendatory act that added subsection (6), March 29, 2017, the

 

16  sinking fund tax shall not exceed 3 mills.

 

17        (c) For a sinking fund tax authorized before the effective

 

18  date of the amendatory act that added subsection (6), March 29,

 

19  2017, the sinking fund tax may be levied each year for a period not

 

20  to exceed 20 years. For a sinking fund tax authorized on or after

 

21  the effective date of the amendatory act that added subsection (6),

 

22  March 29, 2017, the sinking fund tax may be levied each year for a

 

23  period not to exceed 10 years.

 

24        (d) The sinking fund tax levy is subject to the 15 mill tax

 

25  limitation provisions of section 6 of article IX of the state

 

26  constitution of 1963 and the property tax limitation act, 1933 PA

 

27  62, MCL 211.201 to 211.217a.


 1        (2) A school district that levies a sinking fund tax under

 

 2  this section shall have an independent audit of its sinking fund

 

 3  conducted annually, including a review of the uses of the sinking

 

 4  fund, and shall submit the audit report to the department of

 

 5  treasury. If the department of treasury determines from the audit

 

 6  report that the sinking fund has been used for a purpose other than

 

 7  those authorized for the sinking fund under this section, the

 

 8  school district shall repay the misused funds to the sinking fund

 

 9  from the school district's operating funds and shall not levy a

 

10  sinking fund tax under this section after the date the department

 

11  of treasury makes that determination.

 

12        (3) The proposition of levying a sinking fund tax shall be

 

13  submitted to the school electors of the school district at a

 

14  regular or special school election.

 

15        (4) The question of levying taxes for the purpose of creating

 

16  a sinking fund shall be by ballot in substantially the following

 

17  form:

 

 

18

      "Shall _______________________________ levy _______ mills

19

             (legal name of school district)

20

to create a sinking fund for the purpose of ___________________

21

_______________________________________________________________

22

for a period of _____ years?

23

      Yes ( )

24

      No  ( )".

 

 

25        (5) For the purposes of this section, millage approved by the

 

26  school electors before December 1, 1993 for which the authorization

 

27  has not expired is considered to be approved by the school


 1  electors.

 

 2        (6) As used in this section:

 

 3        (a) "School security improvement" means any capital

 

 4  improvement or purchase that is designed to act as a deterrent to

 

 5  unauthorized entry of persons or items onto school premises or to

 

 6  otherwise promote security, including, but not limited to, metal

 

 7  detectors, locks, doors, lighting, cameras, and enhancements to

 

 8  entryways. School security improvement also includes a mobile

 

 9  telephone application that provides the ability to communicate with

 

10  personnel on site while also connecting an emergency telephone call

 

11  to a 9-1-1 center. School security improvement does not include

 

12  personnel costs or operation costs related to a capital improvement

 

13  or purchase or related to a mobile telephone application.

 

14        (b) "Technology" means that term as defined in section 1351a.

 

15        Enacting section 1. This amendatory act takes effect 90 days

 

16  after the date it is enacted into law.