SENATE BILL No. 858
November 29, 2001, Introduced by Senator JOHNSON and referred to the Committee on
Finance.
A bill to amend 2000 PA 321, entitled
"Recreational authorities act,"
by amending section 21 (MCL 123.1151).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 21. (1) An authority may borrow money and issue bonds
2 or notes to finance the acquisition, construction, and improve-
3 ment of a public swimming pool, a public recreation center, a
4 public auditorium, a public conference center, or a public park,
5 including the acquisition of sites and the acquisition and
6 installation of furnishings and equipment for these purposes.
7 (2) An authority shall not borrow money or issue bonds or
8 notes for a sum that, together with the total outstanding bonded
9 indebtedness of the authority, exceeds 2 mills of the taxable
10 value of the taxable property within the district as determined
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2
1 under section 27a of the general property tax act, 1893 PA 206,
2 MCL 211.27a.
3 (3) Bonds or notes issued by an authority are a debt of the
4 authority and not of the participating municipalities.
5 (4) Unless an
exception from prior approval
is available
6 under sections 10 and 11
of chapter III of the
municipal finance
7 act, 1943 PA 202, MCL
133.10 and 133.11, ALL bonds
or notes
8 issued by a recreational authority
under this act
shall be
9 approved by the
department of treasury, and are
subject to the
10 municipal finance act,
1943 PA 202, MCL 131.1 to
139.3 REVISED
11 MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO 141.2821.
12 Before approving the
issuance of a bond or note
under this sub-
13 section, the department
of treasury shall determine
that the
14 amount of the proposed
bond or note is sufficient
but not exces-
15 sive, that any revenue or
income pledged for the
payment of the
16 bond or note is
sufficient, and that the bond or
note and the
17 proceedings authorizing
the bond or note comply
with this act and
18 other applicable
law.
19 (5) Bonds or notes
issued by a recreational
authority under
20 this act shall not, in
whole or in part, appreciate
in principal
21 amount or be sold at a
discount of more than 10%.
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