SENATE BILL No. 1109

 

 

September 5, 2018, Introduced by Senator O'BRIEN and referred to the Committee on Government Operations.

 

 

 

     A bill to authorize the issuance of general obligation bonds

 

of this state and to pledge the full faith and credit of this state

 

for the payment of principal and interest on the bonds to finance

 

infrastructure projects for drinking water systems, sewage systems,

 

stormwater systems, and drainage systems; the cleanup of

 

environmental contamination; and the abatement of lead hazards; to

 

pay for issuing the bonds; to provide for other measures relating

 

to the bonds; and to provide for the submission of the question of

 

the issuance of the bonds to the electors of this state.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the "great

 

waters, great lands bond authorization act".

 

     Sec. 2. The state shall borrow a sum not to exceed

 

$2,000,000,000.00 and issue the general obligation bonds of this

 


state, pledging the full faith and credit of this state for the

 

payment of principal and interest on the bonds, to finance

 

infrastructure projects for drinking water systems, sewage systems,

 

stormwater systems, and drainage systems; the cleanup of

 

environmental contamination; and the abatement of lead hazards.

 

     Sec. 3. Bonds authorized under this act shall be issued in

 

accordance with conditions and procedures established by law.

 

     Sec. 4. The proceeds of the sale of any series of the bonds

 

authorized under this act, any premium and accrued interest

 

received on the delivery of the bonds, and any interest earned on

 

the proceeds of the bonds shall be deposited in the state treasury

 

and credited to a restricted fund as provided by law and shall be

 

expended from that fund only for the purposes for which the bonds

 

have been authorized, including the expense of issuing the bonds.

 

The proceeds of sale of any series of the bonds, any premium and

 

accrued interest received on the delivery of the bonds, and any

 

interest earned on the proceeds of the bonds shall be expended for

 

the purposes set forth in this act in a manner as provided by law.

 

     Sec. 5. The question of borrowing a sum not to exceed

 

$2,000,000,000.00 and the issuance of the general obligation bonds

 

of the state for the purposes set forth in this act shall be

 

submitted to a vote of the electors of this state qualified to vote

 

on the question in accordance with section 15 of article IX of the

 

state constitution of 1963 at the next general election. The

 

question submitted to the electors shall be substantially as

 

follows:

 

     "Shall the state of Michigan finance infrastructure projects


for drinking water systems, sewage systems, stormwater systems, and

 

drainage systems; the cleanup of environmental contamination; and

 

the abatement of lead hazards by borrowing a sum not to exceed

 

$2,000,000,000.00 and issuing general obligation bonds of this

 

state, pledging the full faith and credit of this state for the

 

payment of principal and interest on the bonds, the method of

 

repayment of the bonds to be from the general fund of this state?

 

     Yes ........

 

     No. ........".

 

     Sec. 6. The secretary of state shall perform all acts

 

necessary to properly submit the question prescribed by section 5

 

to the electors of this state qualified to vote on the question at

 

the next general November election.

 

     Sec. 7. Bonds shall not be issued under this act unless the

 

question set forth in section 5 is approved by a majority vote of

 

the registered electors voting on the question.

 

     Sec. 8. (1) After the issuance of the bonds authorized by this

 

act, the legislature shall appropriate from the general fund of

 

this state each fiscal year a sufficient amount to pay promptly,

 

when due, the principal of and interest on all outstanding bonds

 

authorized by this act and the costs incidental to the payment of

 

the bonds.

 

     (2) The governor shall include the appropriation provided for

 

in subsection (1) in his or her annual executive budget

 

recommendations to the legislature.