Bill Text: MI HB4035 | 2011-2012 | 96th Legislature | Introduced
Bill Title: State financing and management; bonds; use of capital outlay bond proceeds for certain transit infrastructure projects; allow. Amends sec. 1 of 1964 PA 183 (MCL 830.411) & adds sec. 8b.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2011-01-18 - Printed Bill Filed 01/14/2011 [HB4035 Detail]
Download: Michigan-2011-HB4035-Introduced.html
HOUSE BILL No. 4035
January 13, 2011, Introduced by Reps. Wayne Schmidt, Tyler and MacMaster and referred to the Committee on Transportation.
A bill to amend 1964 PA 183, entitled
"An act creating the state building authority with power to
acquire, construct, furnish, equip, own, improve, enlarge, operate,
mortgage, and maintain facilities for the use of the state or any
of its agencies; to act as a developer or co-owner of facilities as
a condominium project for the use of the state or any of its
agencies; to authorize the execution of leases pertaining to those
facilities by the building authority with the state or any of its
agencies; to authorize the payment of true rentals by the state; to
provide for the issuance of revenue obligations by the building
authority to be paid from the true rentals to be paid by the state
and other resources and security provided for and pledged by the
building authority; to authorize the creation of funds; to
authorize the conveyance of lands by the state or any of its
agencies for the purposes authorized in this act; to authorize the
appointment of a trustee for bondholders; to permit remedies for
the benefit of parties in interest; to provide for other powers and
duties of the authority; and to provide for other matters in
relation to the authority and its obligations,"
by amending section 1 (MCL 830.411), as amended by 2005 PA 67, and
by adding section 8b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Building authority" means the state building authority
created by this act.
(b) "State" means the legislative, executive, and judicial
branches of state government and includes institutions of higher
education.
(c) "Existing facilities" means all existing buildings and
other facilities, the sites for the buildings or facilities, and
furnishings or equipment for the buildings or facilities located on
real property acquired by the building authority under the terms of
this act.
(d) "Facilities" means furnishings or equipment, capital
maintenance improvements, existing facilities, and all new
buildings, parking structures and lots, rail transportation
projects, new fixed-guideway transit infrastructure projects, and
other facilities, the sites for the buildings, structures, or
facilities, and furnishings or equipment for the buildings,
structures, or facilities in any way acquired or constructed by the
building authority under this act.
(e) "True rental" means the rental required to be paid by the
state to the building authority under a lease between the state and
the building authority entered into under this act. The true rental
shall be paid by the state to the building authority or its
assignee periodically as specified in the lease with the building
authority and shall be in periodic amounts that do not exceed the
economic or market value to the state of the leased facilities. The
economic or market value to the state of the leased facilities
shall be determined by the state administrative board before the
execution of a lease by the state under this act by an appraisal
made by or for the state using commonly employed procedures that
will fairly determine economic or market value. When using
procedures commonly employed by appraisers, an appraisal may set
forth a range for the true rental that reflects variations that may
occur in the components upon which the appraisal is based. If a
lease is only for furnishings or equipment, the state
administrative board may employ an appraiser to determine the
economic or market value to the state of the furnishings or
equipment, or the state administrative board may approve an
alternative method to determine the economic or market value to the
state of the furnishings or equipment. The alternative method may
include the determination of the economic or market value to the
state by a person who is in the business of leasing furnishings or
equipment.
(f) "Board" means the board of trustees of the building
authority.
(g) "Bond" or "obligation" means a bond, note, or other debt
obligation issued by the building authority under section 8.
(h) "Institution of higher education" means a college or
university listed in section 4 or 5 of article VIII of the state
constitution of 1963 or described in section 6 of article VIII of
the state constitution of 1963 or a community or junior college
established under section 7 of article VIII of the state
constitution of 1963.
(i) "Equipment" means machinery, hardware, or any other type
of equipment or a group of integrally related equipment, which
shall meet all of the following:
(i) The equipment or the predominant portion of the group of
integrally related equipment is located in or is physically
connected to a state occupied building or facility or is located on
state owned property.
(ii) The portion of the group of integrally related equipment
that is not described in subparagraph (i) is integral to the
functioning of the integrally related equipment described in
subparagraph (i).
(iii) The projected useful life of the equipment is 5 years or
more.
(j) "Party in interest" includes an owner of an obligation
issued under this act; a counterparty to an agreement relating to
security or management of payment, revenue, or interest rate
exposure, including, but not limited to, a bank, bond insurance
provider, or security firm, as its interest appears; and a trustee
or fiduciary duly designated by the building authority or otherwise
to act on behalf of 1 or more owners or counterparties.
(k) "Capital maintenance improvements" means an expenditure to
provide capital maintenance that is an asset depreciable under the
internal revenue code that is used by this state or an institution
of higher education.
Sec. 8b. The board may authorize up to $100,000,000.00 of bond
proceeds for facilities associated with rail transportation
projects or new fixed-guideway transit infrastructure projects.
