Bill Text: MI HB4457 | 2017-2018 | 99th Legislature | Introduced
Bill Title: State financing and management; other; certain forms of energy improvement financing for community colleges; provide for. Amends sec. 122 of 1966 PA 331 (MCL 389.122).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-10-31 - Assigned Pa 133'17 With Immediate Effect [HB4457 Detail]
Download: Michigan-2017-HB4457-Introduced.html
HOUSE BILL No. 4457
March 30, 2017, Introduced by Reps. Iden, Griffin, Lucido, Hertel and Love and referred to the Committee on Local Government.
A bill to amend 1966 PA 331, entitled
"Community college act of 1966,"
by amending section 122 (MCL 389.122), as amended by 2014 PA 485.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 122. The board of trustees may do all of the following:
(a) Borrow, subject to the provisions of the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821, for community
college purposes, including capital expenditures, money on the
terms it considers desirable and give notes of the district for
those purposes. If a newly organized community college district
borrows in anticipation of the collection of the first tax levy of
the district, the loan shall not exceed 50% of the estimated amount
of the first tax levy.
(b) Borrow, subject to the revised municipal finance act, 2001
PA 34, MCL 141.2101 to 141.2821, money as it considers necessary
and issue bonds of the community college district, to purchase
sites for buildings, playgrounds, athletic fields, or agricultural
farms; to purchase or erect and equip any building or buildings
that it is authorized to purchase and erect; or to make any
permanent improvement that it is authorized to make. The board
shall not make a loan or issue bonds for any sum that, together
with the total outstanding bonded indebtedness of the district,
including bonds voted but not issued, exceeds the total of 1-1/2%
of the first $250,000,000.00 plus 1% of the excess over
$250,000,000.00 of the last confirmed state equalized valuation of
all taxable property in the district unless the proposition of
making the loan or of issuing bonds is submitted first to a vote of
the qualified electors of the district, at a regular or special
election, and approved by the majority of the electors voting at
the election, in which event the board may make a loan or issue
bonds in an amount that does not exceed 15% of the total taxable
value of the district.
(c) Provide for the acquisition or financing of energy
conservation and operational improvements to be made to community
college facilities or infrastructure and pay for the improvements
or the financing or refunding of the improvements from operating
funds of the district or from the savings that result from the
energy conservation and operational improvements. Energy
conservation and operational improvements may include, but are not
limited to, heating, ventilating, or air-conditioning system
improvements, fenestration improvements, roof improvements, the
installation of any insulation, the installation or repair of
heating, ventilating, or air conditioning air-conditioning
controls,
and entrance or exit way closures, information technology
improvements associated with an energy conservation and operational
improvement, and municipal utility improvements associated with an
energy conservation and operational improvement. The board of
trustees may acquire, finance, or refund 1 or more energy
conservation and operational improvements by installment contract,
which may include a lease-purchase agreement described in this
subdivision, or may borrow money and issue notes for the purpose of
securing funds for the improvements or may enter into contracts in
which the cost of the energy conservation and operational
improvements is paid from a portion of the savings that result from
the energy conservation and operational improvements. The term of
an installment contract, a lease-purchase agreement described in
this subdivision, or notes issued under this subdivision shall not
exceed
25 20 years from the date of installation of the energy
conservation
improvements. the final
completion of the energy
conservation and operational improvements or the useful life of the
aggregate energy conservation and operational improvements,
whichever is less. Notes issued under this subdivision are full
faith and credit, tax limited obligations of the community college
district, payable from tax levies and the general fund as pledged
by the board of trustees. The notes are subject to the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821. A
lease-purchase agreement issued pursuant to this subsection shall
not be subject to the revised municipal finance act, 2001 PA 34,
MCL 141.2101 to 141.2821, and shall not be a municipal security or
a debt as those terms are defined in that act. This subdivision
does not limit in any manner the borrowing or bonding authority of
a community college as provided by law. An installment contract
described in this subdivision may include a lease-purchase
agreement, which may be a multiyear contractual obligation that
provides for automatic renewal unless positive action is taken by
the board of trustees to terminate that contract. Payments under a
lease-purchase agreement shall be a current operating expense
subject to annual appropriations of funds by the board of trustees
and shall obligate the board of trustees only for those sums
payable during the fiscal year of contract execution or any renewal
year thereafter. The board of trustees may make payments under a
lease-purchase agreement from any legally available funds or from a
combination of energy or operational savings, capital
contributions, future replacement costs avoided, or billable
revenue enhancements that result from energy conservation and
operational improvements, provided that the board of trustees has
determined that those funds are sufficient to cover, in aggregate
over the full term of the contractual agreement, the cost of the
energy conservation and operational improvements. The lease-
purchase agreement will terminate immediately and absolutely and
without further obligation on the part of the board of trustees at
the close of the fiscal year in which it was executed or renewed or
at such time as appropriated and otherwise unobligated funds are no
longer available to satisfy the obligations of the board of
trustees under the lease-purchase agreement. During the term of the
lease-purchase agreement, the board of trustees shall be the vested
owner of the energy conservation and operational improvements and
may grant a security interest in the energy conservation and
operational improvements to the provider of the lease-purchase
agreement. Upon the termination of the lease-purchase agreement and
the satisfaction of the obligations of the board of trustees, the
provider of the lease-purchase agreement shall release its security
interest in the energy conservation and operational improvements.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
