HOUSE BILL No. 5841


     April 9, 2002, Introduced by Reps. Hansen and Lemmons and referred to the Committee on Tax Policy.


        A bill to amend 1963 PA 55, entitled

   "An act to provide for the incorporation of public authorities to
   acquire, own, and operate or cause to be operated mass transpor-
   tation systems; to require the state to guarantee payment of cer-
   tain claims against certain transportation authorities and to
   give the state a lien in satisfaction of payment; to prescribe
   the rights, powers, and duties of those public authorities; to
   provide for the issuance of bonds; to provide for the levy and
   collection of certain taxes; and to authorize contracts between
   those authorities and either public or private corporations to
   carry out the operation of those mass transportation systems,"

   by amending section 7 (MCL 124.357), as amended by 1983 PA 137.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
             Sec. 7.  (1) For the purpose of acquiring, improving,

 2
        enlarging, or extending a mass transportation system, the author-

 3
        ity may issue self-liquidating revenue bonds  pursuant to  UNDER

 4
        the revenue bond act of 1933,  Act No. 94 of the Public Acts of

 5
        1933, as amended, being sections 141.101 to 141.139 of the

 6
        Michigan Compiled Laws  1933 PA 94, MCL 141.101 TO 141.140, or



   03412'01                                                 JLB                                   2

 1
        any other act providing for the issuance of self-liquidating

 2
        revenue bonds.  The bonds shall not be a general obligation of

 3
        the authority, but shall be payable solely from the revenue of

 4
        the mass transportation system.  HOWEVER, IF THE AUTHORITY ISSUES

 5
        SELF-LIQUIDATING REVENUE BONDS WITH A PLEDGE OF THE FULL FAITH

 6
        AND CREDIT OF THE MUNICIPALITY, THOSE REVENUE BONDS ARE SUBJECT

 7
        TO THE REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

 8
        141.2821.

 9
             (2) An authority formed under this act may levy a tax on all

10
        of the taxable property within the political subdivisions  which

11
        THAT comprise the authority for public transportation purposes as

12
        authorized by this act.

13
             (3) The tax authorized in subsection (2) shall not exceed

14
        5 mills of the state equalized valuation on each dollar of

15
        assessed valuation in the political subdivisions  which  THAT

16
        comprise the applicable authority.

17
             (4) The tax authorized under subsection (2) shall not be

18
        levied except upon the approval of a majority of the registered

19
        electors residing in the political subdivisions  which  THAT com-

20
        prise the authority affected and qualified to vote and voting on

21
        the tax at a general or special election.  The election may be

22
        called by resolution of the board of the authority.  The record-

23
        ing officer of the authority shall file a copy of the resolution

24
        of the board calling the election with the clerk of each affected

25
        county, city, or township not less than 60 days before the date

26
        of the election.  The resolution calling the election shall

27
        contain a statement of the proposition to be submitted to the



   03412'01                                   3

 1
        electors.  Each county, city, and township clerk and all other

 2
        county, city, and township officials shall undertake those steps

 3
        to properly submit the proposition to the electors of the county,

 4
        city, and township at the election specified in the resolutions

 5
        of the authority.  The election shall be conducted and canvassed

 6
        in accordance with the Michigan election law,  Act No. 116 of the

 7
        Public Acts of 1954, being sections 168.1 to 168.992 of the

 8
        Michigan Compiled Laws  1954 PA 116, MCL 168.1 TO 168.992, except

 9
        that if the authority is located in more than 1 county, the elec-

10
        tion shall be canvassed by the state board of canvassers.  The

11
        results of the election shall be certified to the board of the

12
        authority promptly after the date of the election.  The authority

13
        shall not call more than 1 election within a calendar year

14
         pursuant to  UNDER this section for the approval of the tax

15
        authorized by subsection (2) without the approval of the legisla-

16
        tive bodies of a majority of the member political subdivisions of

17
        the authority.  If the election is a special election, the

18
        authority in which the election is held shall pay the costs of

19
        the election.  If the election is a general election, the author-

20
        ity in which the election is held shall pay the increased costs

21
        of the election due to the placement of the proposition on the

22
        ballot by the authority or an amount  as  negotiated between the

23
        authority and the appropriate political subdivisions.

24
             (5) The taxes authorized by this section may be levied at a

25
        rate and for a period of not more than 5 years as determined by

26
        the authority in the resolution calling the election and as shall

27
        be set forth in the proposition submitted to the electors.



   03412'01                                   4

 1
             (6) The tax rate authorized by this section shall be levied

 2
        and collected as are all ad valorem property taxes in  the  THIS

 3
        state and the recording officer of the authority shall at the

 4
        appropriate times certify to the proper tax assessing or collect-

 5
        ing officers of each tax collecting county, city, and township

 6
        the amount of taxes to be levied and collected each year by each

 7
        county, city, and township.  The board of the authority shall

 8
        determine on which tax roll, if there  be  IS more than 1, of the

 9
        county, city, or township that the taxes authorized by this sec-

10
        tion shall be collected.   It shall be the duty of each  EACH tax

11
        assessing and collecting officer and each county treasurer  to

12
        SHALL levy and collect the taxes certified by the authority and

13
         to  pay the  same  TAXES to the authority by the time provided

14
        in section 43 of the general property tax act,  Act No. 206 of

15
        the Public Acts of 1893, being section 211.43 of the Michigan

16
        Compiled Laws  1893 PA 206, MCL 211.43.  The tax rate authorized

17
        by this section may be first levied by the authority as a part of

18
        the first tax roll of the appropriate counties, cities, and town-

19
        ships occurring after the election described in subsection (4).

20
        The tax may be levied and collected on the June or December tax

21
        roll  next  IMMEDIATELY following the date of election, if the

22
        tax is certified to the proper tax assessing officials not later

23
        than May 15 or November 15, respectively, of the year in which

24
        the election is held.









   03412'01          Final page.                            JLB