Bill Text: MI HB5806 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Higher education; community colleges; term of installment contracts for energy conservation improvements allowed under statute; extend. Amends sec. 122 of 1966 PA 331 (MCL 389.122).
Spectrum: Bipartisan Bill
Status: (Passed) 2014-12-31 - Assigned Pa 485'14 2014 Addenda [HB5806 Detail]
Download: Michigan-2013-HB5806-Engrossed.html
HB-5806, As Passed Senate, December 17, 2014
SUBSTITUTE FOR
HOUSE BILL NO. 5806
A bill to amend 1966 PA 331, entitled
"Community college act of 1966,"
by amending section 122 (MCL 389.122), as amended by 2003 PA 306.
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. A The board
shall
not make a loan shall not be made
and or issue bonds shall
not
be issued 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 has
been
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
loans
may be made or the board may
make a loan or issue bonds may
be
issued in an amount that does not to exceed 15% of the total
state
equalized valuation taxable
value of the district.
(c) Provide for energy conservation improvements to be made to
community college facilities and pay for the improvements from
operating funds of the district or from the savings that result
from the energy conservation improvements. Energy conservation
improvements may include, but are not limited to, heating system
improvements, fenestration improvements, roof improvements, the
installation of any insulation, the installation or repair of
heating or air conditioning controls, and entrance or exit way
closures. The board of trustees may acquire 1 or more energy
conservation improvements by installment contract 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 improvements is paid from a portion of the
savings that result from the energy conservation improvements.
These
contractual agreements may provide that the cost of the
energy
conservation improvements are paid only if the energy
savings
are sufficient to cover their cost. An The term of an
installment
contract or notes issued pursuant to under this
subdivision
shall extend for a period of time not to exceed 10
years.
not exceed 25 years from the
date of installation of the
energy
conservation improvements. Notes issued
pursuant to under
this
subdivision shall be 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. This subdivision does not limit in
any manner the borrowing or bonding authority of a community
college as provided by law.