HOUSE BILL No. 5644

May 11, 2016, Introduced by Rep. Lucido and referred to the Committee on Appropriations.

A bill to authorize the issuance of general obligation bonds

of this state to pay the bonded debt and certain other debts and

obligations of certain first class school districts located in this

state; to pledge the full faith and credit of this state for the

payment of principal and interest on the bonds; to pay for issuing

the bonds; to provide for other measures relating to the bonds; and

to provide for the submission of the question of the issuance of

the bonds to the electors of this state.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"Michigan first class school district bond authorization act".

Sec. 2. This state shall borrow a sum not to exceed

$515,000,000.00 and issue the general obligation bonds of this

state, pledging the full faith and credit of this state for the

payment of principal and interest on the bonds to finance up to

$515,000,000.00 to pay the bonded debt and certain other debts and

obligations of first class school districts located in this state

as provided in this act.

Sec. 3. Bonds shall be issued pursuant to conditions, methods,

and procedures to be established by law.

Sec. 4. The proceeds of the sale of the bonds or any series of

the bonds, any premium and accrued interest received on the

delivery of the bonds, and any interest earned on the proceeds of

the bonds shall be deposited in a restricted fund in the state

treasury and shall be disbursed from that fund only for the

purposes for which the bonds have been authorized, including the

expense of issuing the bonds and administrative costs as determined

by the state treasurer. The proceeds of sale of the bonds or any

series of the bonds, any premium and accrued interest received on

the delivery of the bonds, and any interest earned on the proceeds

of the bonds shall be expended for the purposes set forth in this

act in a manner as provided by law as determined by the state

treasurer.

Sec. 5. The question of borrowing a sum not to exceed

$515,000,000.00 and the issuance of the general obligation bonds of

this state for the purposes set forth in this act shall be

submitted to a vote of the electors of this state qualified to vote

on the question pursuant to section 15 of article IX of the state

constitution of 1963, at the next November general election. The

question submitted to the electors shall be substantially as

follows:

"Shall the state of Michigan borrow a sum not to exceed

$515,000,000.00 and issue general obligation bonds of this state,

pledging the full faith and credit of this state for the payment of

principal and interest on the bonds to finance up to

$515,000,000.00 to pay the bonded debt and certain other debts and

obligations of first class school districts located in this state,

with the method of repayment of the bonds to be from the general

fund of this state?

Yes........

No......... .".

Sec. 6. The secretary of state shall perform all acts

necessary to properly submit the question prescribed by section 5

to the electors of this state qualified to vote on the question at

the next November general election.

Sec. 7. (1) After the issuance of the bonds authorized by this

act, there shall be appropriated from the general fund and the

Michigan infrastructure repair fund of this state each fiscal year

a sufficient amount to pay promptly, when due, the principal of and

interest on all outstanding bonds authorized by this act and the

costs incidental to the payment of the bonds.

(2) The governor shall include the appropriation provided in

subsection (1) in the governor's annual executive budget

recommendations to the legislature.

Sec. 8. Bonds shall not be issued under this act unless the

question set forth in section 5 is approved by a majority vote of

the qualified electors voting on the question.