Bill Text: MI SB1054 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: State financing and management; bonds; public notice for competitive sales of municipal bonds; modify. Amends sec. 309 of 2001 PA 34 (MCL 141.2309).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-06-07 - Referred To Committee On Appropriations [SB1054 Detail]

Download: Michigan-2017-SB1054-Introduced.html

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SENATE BILL No. 1054

 

 

June 7, 2018, Introduced by Senators BRANDENBURG, NOFS, JONES, EMMONS, MARLEAU, BIEDA, HANSEN, HUNE, PROOS, ROBERTSON and PAVLOV and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 2001 PA 34, entitled

 

"Revised municipal finance act,"

 

by amending section 309 (MCL 141.2309).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 309. (1) A municipality may sell an authorized municipal

 

security at a competitive sale or a negotiated sale Except as

 

otherwise provided in this section, a municipality must sell

 

authorized municipal securities at a public sale. If a municipal

 

security is in an amount less than $500,000.00, the municipality

 

may sell that municipal security at a private sale as determined in

 

the authorizing resolution.

 

     (2) If a municipality determines to sell a municipal security

 

at a negotiated private sale as provided in subsection (1), the

governing body shall expressly state the method and reasons for

 

choosing a negotiated private sale instead of a competitive public

 

sale in the resolution or ordinance authorizing the issuance or

 

sale of the municipal security.

 

     (3) (2) If a municipality determines to sell a municipal

 

security at a competitive public sale, the municipality shall

 

publish a notice of sale at least 7 days before the date set for

 

the sale, in a publication printed in the English language and

 

circulated in this state that carries as a part of its regular

 

service the notices of the sale of municipal securities.

 

     (4) (3) A municipality shall award a municipal security sold

 

at a competitive public sale to the bidder whose bid meets all

 

specifications and requirements and results in the lowest interest

 

cost to the municipality, unless all bids are rejected.

 

     (5) If the municipality has received a bid or bids at the time

 

fixed for public sale which is rejected by the governing body, then

 

the municipal security may be sold at private sale within 30 days

 

thereafter at a price not less than the highest bid received at the

 

public offering, or if the municipality has offered the municipal

 

security at 2 public offerings and has not received any bid or a

 

bid satisfactory at the second public offering to the governing

 

body, then the municipal security may be sold at a private sale

 

within 30 days after the last public offering at a price not less

 

than the highest bid, if any, received at the last public offering.

 

     (6) (4) A municipality may accept bids for the purchase of a

 

municipal security made in person, by mail, by facsimile, by

 

electronic means, or by any other means authorized by the

municipality.