Bill Text: MI HB4077 | 2009-2010 | 95th Legislature | Engrossed

---

Bill Title: State financing and management; bonds; bonding authority for prefunded retiree health care; provide for. Amends sec. 103 of 2001 PA 34 (MCL 141.2103). TIE BAR WITH: HB 4074'09, HB 4075'09

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-03-05 - Referred To Committee On Appropriations [HB4077 Detail]

Download: Michigan-2009-HB4077-Engrossed.html

---

HB-4077, As Passed House, March 4, 2009

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4077

January 22, 2009, Introduced by Rep. Marleau and referred to the Committee on Judiciary.

 

     A bill to amend 2001 PA 34, entitled

 

"Revised municipal finance act,"

 

by amending section 103 (MCL 141.2103).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 103. As used in this act:

 

     (a) "Assessed value", "assessed valuation", "valuation as

 

assessed", and "valuation as shown by the last preceding tax

 

assessment roll", or similar terms, used in this act, any statute,

 

or charter as a basis for computing limitations upon the taxing or

 

borrowing power of any municipality, mean the state equalized

 

valuation as determined under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.157 211.155.

 

     (b) "Chief administrative officer" means that term as defined

 

in section 2b of the uniform budgeting and accounting act, 1968 PA

 

2, MCL 141.422b.

 

     (c) "Debt" means all borrowed money, loans, and other

 

indebtedness, including principal and interest, evidenced by bonds,

 

obligations, refunding obligations, notes, contracts, securities,

 

refunding securities, municipal securities, or certificates of

 

indebtedness that are lawfully issued or assumed, in whole or in

 

part, by a municipality, or will be evidenced by a judgment or

 

decree against the municipality.

 

     (d) "Debt retirement fund" means a segregated account or group

 

of accounts used to account for the payment of, interest on, or

 

principal and interest on a municipal security.

 

     (e) "Deficit" means a situation for any fund of a municipality

 

in which, at the end of a fiscal year, total expenditures,

 

including an accrued deficit, exceeded total revenues for the

 

fiscal year, including any surplus carried forward.

 

     (f) "Department" means the department of treasury.

 

     (g) "Fiscal year" means a 12-month period fixed by statute,

 

charter, or ordinance, or if not so fixed, then as determined by

 

the department.

 

     (h) "Governing body" means the county board of commissioners

 

of a county; the township board of a township; the council, common

 

council, or commission of a city; the council, commission, or board

 

of trustees of a village; the board of education or district board

 

of a school district; the board of an intermediate school district;

 

the board of trustees of a community college district; the county

 

drain commissioner or drainage board of a drainage district; the

 

board of the district library; the legislative body of a

 

metropolitan district; the port commission of a port district; and,

 

in the case of another governmental authority or agency, that

 

official or official body having general governing powers over the

 

authority or agency.

 

     (i) "Health care trust fund" means a trust or fund created in

 

accordance with the public employee health care fund investment

 

act, 1999 PA 149, MCL 38.1211 to 38.1216, or other state or federal

 

statute, and used exclusively to provide funding for postemployment

 

health care benefits for public employee retirees of a county,

 

city, village, or township. A health care trust fund also includes

 

the retiree health fund vehicle administered by the municipal

 

employees retirement system described in the municipal employees

 

retirement act of 1984, 1984 PA 427, MCL 38.1501 to 38.1555, for a

 

county, city, village, or township that has adopted the municipal

 

employee retirement system to provide funding for postemployment

 

health care benefits for public employee retirees.

 

     (j) (i) "Municipal security" means a security that when issued

 

was not exempt from this act or the municipal finance act, former

 

1943 PA 202, MCL 131.1 to 139.3, by the provisions of this act or

 

by the provisions of the municipal finance act, former 1943 PA 202,

 

MCL 131.1 to 139.3, or by the provisions of the law authorizing its

 

issuance and that is payable from or secured by any of the

 

following:

 

     (i) Ad valorem real and personal property taxes.

 

     (ii) Special assessments.

 

     (iii) The limited or unlimited full faith and credit pledge of

 

the municipality.

 

     (iv) Other sources of revenue described in this act for debt or

 

securities authorized by this act.

 

     (k) (j) "Municipality" means a county, township, city,

 

village, school district, intermediate school district, community

 

college district, metropolitan district, port district, drainage

 

district, district library, or another governmental authority or

 

agency in this state that has the power to issue a security.

 

Municipality does not include this state or any authority, agency,

 

fund, commission, board, or department of this state.

 

     (l) (k) "Outstanding security" means a security that has been

 

issued, but not defeased or repaid, including a security that when

 

issued was exempt from this act or the municipal finance act,

 

former 1943 PA 202, MCL 131.1 to 139.3, by the provisions of this

 

act or by the provisions of the municipal finance act, former 1943

 

PA 202, MCL 131.1 to 139.3, or by the provisions of the law

 

authorizing its issuance.

 

     (m) (l) "Qualified status" means a municipality that has filed

 

a qualifying statement under section 303 and has been determined by

 

the department to be qualified to issue municipal securities

 

without further approval by the department.

 

     (n) (m) "Refunding security" means a municipal security issued

 

to refund an outstanding security.

 

     (o) (n) "Security" means an evidence of debt such as a bond,

 

note, contract, obligation, refunding obligation, certificate of

 

indebtedness, or other similar instrument issued by a municipality,

 

which pledges payment of the debt by the municipality from an

 

identified source of revenue.

 

     (p) (o) "Sinking fund" means a fund for the payment of

 

principal only of a mandatory redemption security.

 

     (q) (p) "Taxable value" means the taxable value of the

 

property as determined under section 27a of the general property

 

tax act, 1893 PA 206, MCL 211.27a.

 

     (r) "Unfunded accrued liability" means the difference between

 

the assets and liabilities of a health care trust fund as

 

determined by an actuarial study conducted pursuant to Rule 43 or

 

45 of the governmental accounting standards board.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 4075(request no.

 

01214'09).

 

     (b) Senate Bill No.____ or House Bill No. 4074(request no.

 

01215'09).