Bill Text: MI HB4075 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Education: financing; permissible use of sinking funds; expand to include school bus purchasing. Amends sec. 1212 of 1976 PA 451 (MCL 380.1212).
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2019-01-23 - Bill Electronically Reproduced 01/23/2019 [HB4075 Detail]
Download: Michigan-2019-HB4075-Introduced.html
HOUSE BILL No. 4075
January 23, 2019, Introduced by Reps. Miller and Meerman and referred to the Committee on Tax Policy.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending section 1212 (MCL 380.1212), as amended by 2016 PA 319.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 1212. (1) If approved by the school electors of the
2 school district, the board of a school district may levy a tax on
3 the taxable value of the real and personal property of the school
4 district each year for the purpose of creating a sinking fund. All
5 of the following apply to a sinking fund tax authorized under this
6 section:
7 (a) For a sinking fund tax authorized before the effective
8 date of the amendatory act that added subsection (6), March 29,
9 2017, the sinking fund tax may be used for the purchase of real
10 estate for sites for, and the construction or repair of, school
1 buildings. For a sinking fund tax authorized on or after the
2 effective date of the amendatory act that added subsection (6),
3 March 29, 2017, the sinking fund tax may be used for the purchase
4 of real estate for sites for, and the construction or repair of,
5 school buildings, for school security improvements, or for the
6 acquisition or upgrading of technology, or for purchasing school
7 buses. This subdivision does not impose a cap on the total amount
8 of money that may be spent on the purchase of school buses under
9 this subdivision, but the sinking fund tax must not be used for
10 compensation for school bus drivers or for costs relating to
11 servicing or maintaining a school bus.
12 (b) For a sinking fund tax authorized before the effective
13 date of the amendatory act that added subsection (6), March 29,
14 2017, the sinking fund tax shall
must not exceed 5 mills. For a
15 sinking fund tax authorized on or after the effective date of the
16 amendatory act that added subsection (6), March 29, 2017, the
17 sinking fund tax shall must
not exceed 3 mills.
18 (c) For a sinking fund tax authorized before the effective
19 date of the amendatory act that added subsection (6), March 29,
20 2017, the sinking fund tax may be levied each year for a period not
21 to exceed 20 years. For a sinking fund tax authorized on or after
22 the effective date of the amendatory act that added subsection (6),
23 March 29, 2017, the sinking fund tax may be levied each year for a
24 period not to exceed 10 years.
25 (d) The sinking fund tax levy is subject to the 15 mill tax
26 limitation provisions of section 6 of article IX of the state
27 constitution of 1963 and the property tax limitation act, 1933 PA
1 62, MCL 211.201 to 211.217a.
2 (2) A school district that levies a sinking fund tax under
3 this section shall have an independent audit of its sinking fund
4 conducted annually, including a review of the uses of the sinking
5 fund, and shall submit the audit report to the department of
6 treasury. If the department of treasury determines from the audit
7 report that the sinking fund has been used for a purpose other than
8 those authorized for the sinking fund under this section, the
9 school district shall repay the misused funds to the sinking fund
10 from the school district's operating funds and shall not levy a
11 sinking fund tax under this section after the date the department
12 of treasury makes that determination.
13 (3) The proposition of levying a sinking fund tax shall must
14 be submitted to the school electors of the school district at a
15 regular or special school election.
16 (4) The question of levying taxes for the purpose of creating
17 a sinking fund shall must
be by ballot in substantially the
18 following form:
19 |
"Shall _______________________________ levy _______ mills |
20 |
(legal name of school district) |
21 |
to create a sinking fund for the purpose of ___________________ |
22 |
_______________________________________________________________ |
23 |
for a period of _____ years? |
24 |
Yes ( ) |
25 |
No ( )". |
26 (5) For the purposes of this section, millage approved by the
27 school electors before December 1, 1993 for which the authorization
1 has not expired is considered to be approved by the school
2 electors.
3 (6) As used in this section:
4 (a) "School security improvement" means any capital
5 improvement or purchase that is designed to act as a deterrent to
6 unauthorized entry of persons or items onto school premises or to
7 otherwise promote security, including, but not limited to, metal
8 detectors, locks, doors, lighting, cameras, and enhancements to
9 entryways. School security improvement also includes a mobile
10 telephone application that provides the ability to communicate with
11 personnel on site while also connecting an emergency telephone call
12 to a 9-1-1 center. School security improvement does not include
13 personnel costs or operation costs related to a capital improvement
14 or purchase or related to a mobile telephone application.
15 (b) "Technology" means that term as defined in section 1351a.
16 Enacting section 1. This amendatory act takes effect 90 days
17 after the date it is enacted into law.