HOUSE BILL No. 5852


     April 9, 2002, Introduced by Rep. Hager and referred to the Committee on Tax Policy.


        A bill to amend 1988 PA 265, entitled

   "District library financing act,"

   by amending sections 4, 5, and 9 (MCL 397.284, 397.285, and

   397.289), sections 4 and 5 as amended by 1989 PA 25.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 4.  (1) A district library shall not borrow money or

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        issue bonds or notes for a sum that, together with the total out-

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        standing bonded indebtedness of the district library, exceeds 5%

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        of the state equalized valuation of the taxable property within

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        the district.

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             (2) A district library shall not issue general obligation

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        unlimited tax bonds unless all of the following conditions are

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        met:






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             (a) The board adopts a resolution submitting the question of

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        issuing general obligation unlimited tax bonds or notes to the

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        electors of the district.

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             (b) The question of issuing general obligation unlimited tax

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        bonds or notes is certified by the board and the election is con-

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        ducted in the manner provided in sections 14 to 23 of the dis-

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        trict library establishment act, 1989 PA 24, MCL 397.184 TO

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        397.193, for an election for a districtwide tax.

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             (c) A majority of the qualified electors of the district

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        voting on the question approve the issuing of the general obliga-

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        tion unlimited tax bonds.

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             (3) The question of issuing general obligation unlimited tax

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        bonds pursuant to subsection (2) shall be submitted by ballot in

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        substantially the following form:

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                 "Shall the district library, formed by

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                 __________, county[ies] of __________, State of

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                 Michigan, borrow the sum of not to exceed

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                 __________ dollars ($__________) and issue its

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                 general obligation unlimited tax bonds for all

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                 or a portion of that amount for the purpose of

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                 __________?

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                 Yes [ ] No [ ]"

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              (4) Refunding bonds or the refunding part of a bond issue

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        shall not be considered to be within the 5% limitation of

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        subsection (1), but shall be considered to be authorized in

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        addition to the 5% limitation.



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             Sec. 5.   (1)  Except as otherwise provided in section 4, a

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        district library may issue limited tax bonds or notes by resolu-

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        tion of the board, without submitting the question to the elec-

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        tors of the district.

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              (2) A district library may borrow money and issue its nego-

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        tiable bonds and notes for the purpose of refunding outstanding

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        debt obligations of the district by resolution of the board,

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        without submitting the question to the electors of the district.

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             Sec. 9.  Bonds issued pursuant to this act are subject to

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        the  municipal finance act, Act No. 202 of the Public Acts of

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        1943, being sections 131.1 to 139.3 of the Michigan Compiled

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        Laws  REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

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        141.2821.































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