Bill Text: MI SB0419 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Education; financing; school district's permissible use of sinking funds; expand to include school buses and technology. Amends sec. 1212 of 1976 PA 451 (MCL 380.1212).
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2011-06-08 - Referred To Committee On Education [SB0419 Detail]
Download: Michigan-2011-SB0419-Introduced.html
SENATE BILL No. 419
June 8, 2011, Introduced by Senators WHITMER, WARREN and ANDERSON and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1212 (MCL 380.1212), as amended by 2003 PA 299.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
1212. (1) If Subject to
subsection (6), if approved by
the school electors of the school district, the board of a school
district
may levy a tax of not to exceed 5 mills on the state
equalized
valuation taxable value of
the real and personal property
of
the school district each year for a period of not to exceed 20
years,
for the purpose of creating a
sinking fund to be used for
the purchase of real estate for sites for, and the construction or
repair of, school buildings, for the purchase or major maintenance
of school buses, or for the acquisition or upgrading of technology.
The maximum time period for a sinking fund tax levy is as
prescribed in subsection (6). The sinking fund tax levy is subject
to the 15 mill tax limitation provisions of section 6 of article IX
of the state constitution of 1963 and the property tax limitation
act, 1933 PA 62, MCL 211.201 to 211.217a.
(2) A school district that levies a sinking fund tax under
this section shall have an independent audit of its sinking fund
conducted annually, including a review of the uses of the sinking
fund, and shall submit the audit report to the department of
treasury. The school district also shall submit to the department
of treasury and to the legislature, and shall make available on its
website, an annual report detailing the uses of the sinking fund.
This report shall be submitted in the form and manner prescribed by
the department of treasury and shall meet the requirements
established by the department of treasury under subsection (7). If
the department of treasury determines from the audit report that
the sinking fund has been used for a purpose other than those
authorized for the sinking fund under this section, the school
district shall repay the misused funds to the sinking fund from the
school district's operating funds and shall not levy a sinking fund
tax under this section after the date the department of treasury
makes that determination.
(3) (2)
The proposition of levying a sinking fund tax shall be
submitted to the school electors of the school district at a
regular or special school election. This election shall be held on
either the May regular election date or the November regular
election date, as provided under section 641 of the Michigan
election law, 1954 PA 116, MCL 168.641.
(4) (3)
The question of levying taxes for the purpose of
creating a sinking fund shall be by ballot in substantially the
following form:
"Shall _______________________________ levy _______ mills
(legal name of school district)
to create a sinking fund for the purpose of _____________________
_________________________________________________________________
for a period of _____ years?
Yes ( )
No ( )".
(5) (4)
For the purposes of this section, millage approved by
the school electors before December 1, 1993 for which the
authorization has not expired is considered to be approved by the
school electors.
(6) A sinking fund tax levied under this section for creating
a sinking fund to be used for the purchase of real estate for sites
for, and the construction or repair of, school buildings may be
levied each year for a period of not to exceed 20 years. A sinking
fund tax levied under this section for creating a sinking fund to
be used for the purchase or major maintenance of school buses or
for the acquisition or upgrading of technology may be levied each
year for a period of not to exceed 10 years.
(7) Not later than 180 days after the effective date of the
amendatory act that added this subsection, the department of
treasury shall prescribe requirements for the contents and
submission of the annual report described in subsection (2). The
report shall be designed to ensure fiscal transparency and best
financial practices and shall include as least identification of
all cost containment measures and benchmarks for measuring the
effectiveness of the projects funded by the sinking fund tax levy.
(8) As used in this section, "technology" means that term as
defined in section 1351a.
