Bill Text: MI HB4046 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Education; financing; permissible use of sinking funds; expand to include school bus purchasing. Amends sec. 1212 of 1976 PA 451 (MCL 380.1212).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-01-18 - Bill Electronically Reproduced 01/18/2017 [HB4046 Detail]

Download: Michigan-2017-HB4046-Introduced.html

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HOUSE BILL No. 4046

 

 

January 18, 2017, Introduced by Rep. Kosowski and referred to the Committee on Tax Policy.

 

      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), the sinking

 

 9  fund tax may be used for the purchase of real estate for sites for,

 

10  and the construction or repair of, school buildings. For a sinking

 

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

 1  amendatory act that added subsection (6), the sinking fund tax may

 

 2  be used for the purchase of real estate for sites for, and the

 

 3  construction or repair of, school buildings, for school security

 

 4  improvements, or for the acquisition or upgrading of technology, or

 

 5  for purchasing school buses.

 

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

 

 7  date of the amendatory act that added subsection (6), the sinking

 

 8  fund tax shall not exceed 5 mills. For a sinking fund tax

 

 9  authorized on or after the effective date of the amendatory act

 

10  that added subsection (6), the sinking fund tax shall not exceed 3

 

11  mills.

 

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

 

13  date of the amendatory act that added subsection (6), the sinking

 

14  fund tax may be levied each year for a period not to exceed 20

 

15  years. For a sinking fund tax authorized on or after the effective

 

16  date of the amendatory act that added subsection (6), the sinking

 

17  fund tax may be levied each year for a period not to exceed 10

 

18  years.

 

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

 

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

 

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

 

22  62, MCL 211.201 to 211.217a.

 

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

 

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

 

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

 

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

 

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

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

 

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

 

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

 

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

 

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

 

 6  of treasury makes that determination.

 

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

 

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

 

 9  regular or special school election.

 

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

 

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

 

12  form:

 

 

13	"Shall _______________________________ levy _______ mills
14	(legal name of school district)
15	to create a sinking fund for the purpose of ___________________
16	_______________________________________________________________
17	for a period of _____ years?
18	Yes ( )
19	No  ( )".

 

 

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

 

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

 

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

 

23  electors.

 

24        (6) As used in this section:

 

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

 

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

 

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

 

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

 

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

 

 4  entryways. School security improvement also includes a mobile

 

 5  telephone application that provides the ability to communicate with

 

 6  personnel on site while also connecting an emergency telephone call

 

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

 

 8  personnel costs or operation costs related to a capital improvement

 

 9  or purchase or related to a mobile telephone application.

 

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