HB-5156, As Passed House, October 21, 2003

SUBSTITUTE FOR

HOUSE BILL NO. 5156

                 (As amended October 21, 2003)                              

                                                                             A bill to amend 1909 PA 279, entitled                                             

"The home rule city act,"                                                   

(MCL 117.1 to 117.38) by adding section 36a.                                

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 36a.  (1) Except as otherwise provided under this                      

2   section, if a financial emergency exists under the local                    

3   government fiscal responsibility act, 1990 PA 72, MCL 141.1201 to           

4   141.1291, a city may issue [financial recovery] bonds in amounts greater than the                                                                             

5   limitations established by the city charter or this act.                    

6       (2) Any [financial recovery] bonds issued under this section are subject to the    

7   terms and conditions approved by the local emergency financial              

8   assistance loan board created under the emergency municipal loan            

9   act, 1980 PA 243, MCL 141.931 to 141.942.                                   

10  (3) Any [financial recovery] bonds issued under this section are not subject to    

11  section 5(g).

House Bill No. 5156 (H-1) as amended October 21, 2003

1   (4) Notwithstanding subsection (1), the net indebtedness of a               

2   city, reduced by any amounts excluded under section 4a(4), shall            

3    not exceed 20% of the assessed value of the city.

[(5) This section does not apply to municipal securities as defined under section 103 of the revised municipal finance act, 2001 PA 34, MCL 141.2103.]