HB-5839, As Passed Senate, November 10, 2004                                

    SENATE SUBSTITUTE FOR

    HOUSE BILL NO. 5839

                                                                             A bill to amend 1976 PA 451, entitled                                             

"The revised school code,"                                                  

by amending sections 681, 687, 1723, 1724a, and 1731 (MCL                   

380.681, 380.687, 380.1723, 380.1724a, and 380.1731), sections              

681 and 687 as amended by 2003 PA 299, section 1724a as added by            

1994 PA 258, and section 1731 as amended by 2002 PA 70, and by              

adding section 625b.                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 625b.  For a tax that is authorized after the effective                

2   date of this section for intermediate school district operating             

3   purposes, the duration of the authorization for the tax shall not           

4   exceed 20 years.  The authorization for a tax described in this             

5   section may be renewed with the approval of the intermediate                

6   school electors for a duration not to exceed 20 years.  The                 

7   duration of the authorization for a tax described in this section           

1   shall be stated in the ballot question concerning the levy or               

2   renewal of the tax.

3       Sec. 681.  (1) An intermediate school district may establish                

4   an area vocational-technical education program and operate the              

5   program under sections 681 to 690 if approved by a majority of              

6   the intermediate school electors of the intermediate school                 

7   district voting on the question.  The election shall be called              

8   and conducted in accordance with this act and the Michigan                  

9   election law.  The establishment of the area vocational-technical           

10  education program may be rescinded by the same process.                     

11      (2) The question of establishing an area vocational-technical               

12  education program may be submitted to the intermediate school               

13  electors of an intermediate school district at a regular school             

14  election or at a special election held in each of the constituent           

15  districts.  Subject to section 641 of the Michigan election law,            

16  MCL 168.641, the intermediate school board shall determine the              

17  date of the election and shall give notice to the school district           

18  filing official at least 60 days in advance of the date the                 

19  ballot question is to be submitted to the intermediate school               

20  electors.                                                                   

21      (3) The ballot for referring the question of adopting                       

22  sections 681 to 690 and establishing an area vocational-technical           

23  education program to the intermediate school electors of an                 

24  intermediate school district shall be substantially in the                  

25  following form:                                                             

26  "Shall _____________________________________________, state                 

27          (legal name of intermediate school district)                        

1   of Michigan, come under sections 681 to 690 of the revised school           

2   code and establish an area vocational-technical education program           

3   which is designed to encourage the operation of area                        

4   vocational-technical education programs if the annual property              

5   tax levied for this purpose is limited to __________ mills?                 

6       Yes ( )                                                                     

7                                                                                No  ( )".                                                                           

8       (4) Beginning in 1995, and subject to section 625b, the                     

9   number of mills of ad valorem property taxes an intermediate                

10  school board may levy for area vocational-technical education               

11  program operating purposes under sections 681 to 690 is limited             

12  to the following:                                                           

13      (a) If the intermediate school district did not levy any                    

14  millage in 1993 for area vocational-technical education program             

15  operating purposes under sections 681 to 690, the intermediate              

16  school board, with the approval of the intermediate school                  

17  electors, may levy not more than 1 mill for those purposes.                 

18      (b) If the intermediate school district levied millage in                   

19  1993 for area vocational-technical education program operating              

20  purposes under sections 681 to 690, the intermediate school                 

21  board, with the approval of the intermediate school electors, may           

22  levy mills for those purposes at a rate not to exceed 1.5 times             

23  the number of mills authorized for those purposes in the                    

24  intermediate school district in 1993.  Approval of the                      

25  intermediate school electors is not required for the levy under             

26  this subdivision of previously authorized mills until that                  

27  authorization expires.                                                      

1   (5) An intermediate school district that levies a tax for                   

2   area vocational-technical education program operating purposes              

3   shall not use proceeds from the tax for any purpose other than              

4   area vocational-technical education program operating purposes              

5   and shall submit to the department of treasury a copy of the                

6   audit report from the audit of the intermediate school district             

7   conducted under section 622a.  If the department of treasury                

8   determines from the audit report that the proceeds from the tax             

9   have been used for a purpose other than area vocational-technical           

10  education program operating purposes, as defined under subsection           

11  (7), the department of treasury shall notify the intermediate               

12  school district of that determination.  If the intermediate                 

13  school district disputes the determination or claims that the               

14  situation has been corrected, within 15 days after receipt of the           

15  determination the intermediate school district may submit an                

16  appeal of the determination to the department of treasury.                  

17  Within 90 days after receipt of the appeal, the department of               

18  treasury shall consider the appeal and make a determination of              

19  whether the initial determination was correct or incorrect and of           

20  whether the situation has been corrected.  If the department of             

21  treasury finds that the initial determination was correct and               

22  that the situation has not been corrected, then the department of           

23  treasury shall file a copy of the report with the attorney                  

24  general.  The attorney general shall review the report and, if              

25  the attorney general considers it appropriate, shall commence or            

26  direct the prosecuting attorney for the county in which the                 

27  violations occurred to commence appropriate proceedings against             

1   the intermediate school board or the official or employee.  These           

2   proceedings shall include at least a civil action in a court of             

3   competent jurisdiction for the recovery of any public money                 

4   determined by the audit to have been illegally expended and for             

5   the recovery of any public property determined by the audit to              

6   have been converted or misappropriated.                                     

7       (6) If the attorney general determines from a report filed                  

8   under subsection (5) that an intermediate school district has               

9   misspent tax proceeds as described in subsection (5) and notifies           

10  the intermediate school district of this determination, the                 

11  intermediate school district shall repay to its area                        

12  vocational-technical education program operating fund an amount             

13  equal to the amount the department of treasury determined under             

14  subsection (5) has been used for a purpose other than area                  

15  vocational-technical education program operating purposes.  The             

16  intermediate school district shall make this repayment from funds           

17  of the intermediate school district that lawfully may be used for           

18  making such a repayment.                                                    

19      (7) For the purposes of subsections (5) and (6), the                        

20  department and the department of treasury, in consultation with             

21  intermediate school districts, shall develop and make available             

22  to intermediate school districts a definition of area                       

23  vocational-technical education program operating purposes.                  

24      (8)  (5)  An intermediate school district shall not hold more               

25  than 2 elections in a calendar year concerning the authorization            

26  of a millage rate for area vocational-technical education program           

27  operating purposes under sections 681 to 690.                               

1       Sec. 687.  (1) An intermediate school board in which an area                

2   vocational-technical education program is established, by a                 

3   majority vote of the intermediate school electors voting on the             

4   question at a regular school election or at a special election              

5   called for that purpose, may borrow money and issue bonds of the            

6   intermediate school district subject to the revised municipal               

7   finance act, 2001 PA 34, MCL 141.2101 to 141.2821, to defray all            

8   or part of the cost of purchasing, erecting, completing,                    

9   remodeling, improving, furnishing, refurnishing, equipping, or              

10  reequipping area vocational-technical buildings and other                   

11  facilities, or parts of buildings and other facilities or                   

12  additions to buildings and other facilities; acquiring,                     

13  preparing, developing, or improving sites, or parts of sites or             

14  additions to sites, for area vocational-technical buildings and             

15  other facilities; refunding all or part of existing bonded                  

16  indebtedness; or accomplishing a combination of the foregoing               

17  purposes.  An intermediate school district shall not issue bonds            

18  under this part for an amount greater than 1.5% of the total                

19  assessed valuation of the intermediate school district.                     

20      (2) A bond qualified under section 16 of article IX of the                  

21  state constitution of 1963 and implementing legislation shall not           

22  be included for purposes of calculating the foregoing 1.5%                  

23  limitation.                                                                 

24      (3) An intermediate school board may submit a proposal to                   

25  issue bonds of the intermediate school district, authorized under           

26  this section, to the intermediate school electors at the same               

27  election at which the intermediate school electors vote on the              

1   establishment of an area vocational-technical education program.            

2   If these questions are presented to the school electors at the              

3   same election, the board shall include the bond proposal in the             

4   60-day notice given the boards of constituent districts.  The               

5   establishment of an area vocational-technical education program             

6   shall become effective if approved by a majority of the                     

7   intermediate school electors voting on the question.  The                   

8   authority to issue bonds is effective only if a majority of the             

9   intermediate school electors approve both the establishment of              

10  the area vocational-technical education program and the issuance            

11  of bonds.                                                                   

12      (4) The ballot used in submitting the question of borrowing                 

13  money and issuing bonds under this section shall be in                      

14  substantially the following form:                                           

15      "Shall __________ (here state the legal name of the                         

16  intermediate school district designating the name of a district             

17  of not less than 18,000 pupils or first class school district               

18  that has elected not to come under this act as far as an area               

19  vocational-technical education program is concerned) state of               

20  Michigan, borrow the sum of not to exceed $__________ and issue             

21  its bonds therefor, for the purpose of __________?                          

22      Yes (   )                                                                   

23                                                                               No  (   )".                                                                         

24  (5) An intermediate school district shall not use the                       

25  proceeds from bonds issued or refunded under this section or levy           

26  a tax to repay bonds issued or refunded under this section for              

27  any purpose other than facilities used for area                             

1   vocational-technical education purposes.  If a facility is to be            

2   used during regular school hours for purposes other than                    

3   providing area vocational-technical education programs and                  

4   services, proceeds from bonds issued or refunded under this                 

5   section or from millage levied to repay bonds issued or refunded            

6   under this section shall be used only for that portion of the               

7   facility that is used for providing area vocational-technical               

8   education programs and services.

9       Sec. 1723.  The ballot submitting the question of the                       

10  adoption of sections 1722 to 1729 to the school electors of an              

11  intermediate school district shall be substantially in the                  

12  following form:                                                             

13      "Shall the __________ (legal name of the intermediate school                

14  district), state of Michigan, come under sections 1722 to 1729 of           

15  the revised school code,  of 1976,  which are designed to                   

16  encourage the education of handicapped persons, if the annual               

17  property tax levied for administration is limited to _____                  

18  mills?                                                                      

19      Yes  (  )                                                                   

20                                                                               No   (  )".

21      Sec. 1724a.  (1) Beginning in 1995, and subject to section                  

22  625b, the board of an intermediate school district may levy ad              

23  valorem property taxes for special education purposes under                 

24  sections 1722 to 1729 at a rate not to exceed 1.75 times the                

25  number of mills of those taxes authorized in the intermediate               

26  school district in 1993.  All or part of the millage levied under           

27  this section may be renewed as provided in this article.                    

1   Approval of the intermediate school electors is not required for            

2   the levy under this section of previously authorized mills until            

3   that authorization expires.                                                 

4   (2) An intermediate school district that levies a tax for                   

5   special education operating purposes shall not use proceeds from            

6   the tax for any purpose other than special education operating              

7   purposes and shall submit to the department of treasury a copy of           

8   the audit report from the audit of the intermediate school                  

9   district conducted under section 622a.  If the department of                

10  treasury determines from the audit report that the proceeds from            

11  the tax have been used for a purpose other than special education           

12  operating purposes, as defined under subsection (4), the                    

13  department of treasury shall notify the intermediate school                 

14  district of that determination.  If the intermediate school                 

15  district disputes the determination or claims that the situation            

16  has been corrected, within 15 days after receipt of the                     

17  determination the intermediate school district may submit an                

18  appeal of the determination to the department of treasury.                  

19  Within 90 days after receipt of the appeal, the department of               

20  treasury shall consider the appeal and make a determination of              

21  whether the initial determination was correct or incorrect and of           

22  whether the situation has been corrected.  If the department of             

23  treasury finds that the initial determination was correct and               

24  that the situation has not been corrected, then the department of           

25  treasury shall file a copy of the report with the attorney                  

26  general.  The attorney general shall review the report and, if              

27  the attorney general considers it appropriate, shall commence or            

1   direct the prosecuting attorney for the county in which the                 

2   violations occurred to commence appropriate proceedings against             

3   the intermediate school board or the official or employee.  These           

4   proceedings shall include at least a civil action in a court of             

5   competent jurisdiction for the recovery of any public money                 

6   determined by the audit to have been illegally expended and for             

7   the recovery of any public property determined by the audit to              

8   have been converted or misappropriated.                                     

9       (3) If the attorney general determines from a report filed                  

10  under subsection (2) that an intermediate school district has               

11  misspent tax proceeds as described in subsection (2) and notifies           

12  the intermediate school district of this determination, the                 

13  intermediate school district shall repay to its special education           

14  operating fund an amount equal to the amount the department of              

15  treasury determined under subsection (2) has been used for a                

16  purpose other than special education operating purposes.  The               

17  intermediate school district shall make this repayment from funds           

18  of the intermediate school district that lawfully may be used for           

19  making such a repayment.                                                    

20      (4) For the purposes of subsections (2) and (3), the                        

21  department and the department of treasury, in consultation with             

22  intermediate school districts, shall develop and make available             

23  to intermediate school districts a definition of special                    

24  education operating purposes.                                               

25      (5)  (2)  An intermediate district shall not hold more than 2               

26  elections in a calendar year concerning the authorization of a              

27  millage rate for special education purposes under sections 1722             

1   to 1729.                                                                    

2       Sec. 1731.  (1) An intermediate school district may borrow                  

3   money and issue bonds of the intermediate school district subject           

4   to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to           

5   141.2821, to defray all or part of the costs of purchasing,                 

6   erecting, completing, remodeling, improving, furnishing,                    

7   refurnishing, equipping, or reequipping buildings for special               

8   education facilities; acquiring, preparing, developing, or                  

9   improving sites, or parts of sites or additions to sites, for               

10  buildings and other special education facilities; refunding all             

11  or part of existing bonded indebtedness; or the accomplishment of           

12  a combination of  the foregoing these purposes.                            

13      (2) An intermediate school district shall not issue bonds for               

14  purposes of purchasing, erecting, completing, remodeling,                   

15  improving, furnishing, refurnishing, equipping, or reequipping              

16  buildings for special education for an amount greater than 1.5%             

17  of the total assessed valuation of the intermediate school                  

18  district.                                                                   

19  (3) An intermediate school district shall not use the                       

20  proceeds from bonds issued or refunded under this section or levy           

21  a tax to repay bonds issued or refunded under this section for              

22  any purpose other than facilities used for special education                

23  purposes.  If a facility is to be used during regular school                

24  hours for purposes other than providing special education                   

25  programs and services, proceeds from bonds issued or refunded               

26  under this section or from millage levied to repay bonds issued             

27  or refunded under this section shall be used only for that                  

1   portion of the facility that is used for providing special                  

2   education programs and services.