HB-5156, As Passed Senate, November 6, 2003                                 

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5156

                                                                             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              

5   greater than the limitations established by the city charter or             

6   this act.                                                                   

7       (2) Any financial recovery bonds issued under this section                  

8   are subject to the terms and conditions approved by the local               

9   emergency financial assistance loan board created under the                 

10  emergency municipal loan act, 1980 PA 243, MCL 141.931 to                   

11  141.942.                                                                    

1       (3) Any financial recovery bonds issued under this section                  

2   are not subject to section 5(g).

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

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

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

6       (5) Financial recovery bonds issued under this section are                  

7   not subject to the revised municipal finance act, 2001 PA 34, MCL           

8   141.2101 to 141.2821.