Bill Text: MI HB4497 | 2015-2016 | 98th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State financing and management; bonds; qualification of refunding bonds; revise for schools that will not meet their final mandatory repayment date. Amends sec. 7 of 2005 PA 92 (MCL 388.1927).

Spectrum: Partisan Bill (Republican 9-0)

Status: (Passed) 2015-07-14 - Assigned Pa 97'15 With Immediate Effect [HB4497 Detail]

Download: Michigan-2015-HB4497-Engrossed.html

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HB-4497, As Passed House, May 21, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4497

 

April 21, 2015, Introduced by Reps. Victory, Jacobsen, Hughes, Howrylak, Hooker, Pagel, McCready, Inman and Forlini and referred to the Committee on Financial Liability Reform.

 

     A bill to amend 2005 PA 92, entitled

 

"School bond qualification, approval, and loan act,"

 

by amending section 7 (MCL 388.1927), as amended by 2012 PA 437.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7. (1) The state treasurer shall qualify bonds of a

 

school district if the state treasurer determines all of the

 

following:

 

     (a) A majority of the school district electors have approved

 

the bonds.

 

     (b) The terms of the bond issue comply with applicable

 

provisions of the revised school code, 1976 PA 451, MCL 380.1 to

 

380.1852.

 

     (c) The school district is in compliance with the revised

 

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.

 

     (d) The weighted average maturity of the qualified bond issue

 

does not exceed 120% of the average reasonably expected useful life

 

of the facilities, excluding land and site improvements, being

 

financed or refinanced with the proceeds of the bonds, determined

 

as of the later of the date on which the qualified bonds will be

 

issued or the date on which each facility is expected to be placed

 

in service.

 

     (e) The school district has filed any information necessary to

 

update the contents of the original application to reflect changes

 

in any of the information approved in the preliminary qualification

 

process.

 

     (f) The school district has agreed that the school district

 

will keep books and records detailing the investment and

 

expenditure of the proceeds of the qualified bonds and, at the

 

request of the state treasurer, the school district will promptly,

 

but not later than the date specified in the request, which date

 

shall be not less than 5 business days after the date of the

 

request, submit information requested by the state treasurer

 

related to the detailed information maintained by the school

 

district as to the investment and expenditure of the proceeds of

 

its qualified bonds.

 

     (2) An order qualifying bonds shall specify the principal and

 

interest payment dates for all the bonds, the maximum principal

 

amount of and maximum interest rate on the bonds, the computed

 

millage, if any, the final mandatory repayment date, and other

 

matters as the state treasurer shall determine or as are required

 

by this act.

 

     (3) If the application for prequalification demonstrates that

 

the school district will borrow from this state in accordance with

 

this act, the state treasurer and the school district shall enter

 

into a loan agreement setting forth the terms and conditions of any

 

qualified loans to be made to the school district under this act.

 

     (4) If a school district does not issue its qualified bonds

 

within 180 days after the date of the order qualifying bonds, the

 

order shall no longer be effective. However, the school district

 

may reapply for qualification by filing an application and

 

information necessary to update the contents of the original

 

application for prequalification or qualification.

 

     (5) The state treasurer shall qualify refunding bonds issued

 

to refund qualified loans or qualified bonds if the state treasurer

 

finds that all of the following are met:

 

     (a) The the refunding bonds comply with the provisions of the

 

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

 

141.2821.

 

     (b) That the school district will repay all outstanding

 

qualified bonds, the proposed qualified bonds, all outstanding

 

qualified loans, and all qualified loans expected to be incurred

 

with respect to all qualified bonds of the school district,

 

including the proposed qualified bond issue, not later than the

 

applicable final mandatory repayment date.