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