2011 Senate Bill 770 / 2012 Public Act 437

Revise school bond details

Introduced in the Senate

Oct. 20, 2011

Introduced by Sen. John Pappageorge (R-13)

To essentially cap at $1.5 billion the amount of debt guaranteed by the state School Bond Loan Fund, which allows school districts to get the state’s credit rating when they borrow for capital projects. The bill would also prohibit districts from using the fund if they can’t themselves meet projected debt service payments for a particular project, and impose a final mandatory repayment date, which among other things would require districts to completely pay off previous loans before using the fund to back any new ones. This proposal is accomplished by a package consisting of Senate Bills 770 to 772.

Referred to the Committee on Appropriations

May 17, 2012

Reported without amendment

With the recommendation that the substitute (S-3) be adopted and that the bill then pass.

June 6, 2012

Substitute offered

The substitute passed by voice vote

June 7, 2012

Amendment offered by Sen. Bruce Caswell (R-16)

To revise some technical details of the proposal.

The amendment passed by voice vote

Passed in the Senate 25 to 12 (details)

To essentially cap at $1.8 billion the amount of debt guaranteed by the state School Bond Loan Fund, which allows school districts to get the state’s credit rating when they borrow for capital projects. The bill would also prohibit districts from using the fund if they can’t themselves meet projected debt service payments for a particular project, and impose a final mandatory repayment date, which among other things would require districts to completely pay off previous loans before using the fund to back any new ones. This proposal is accomplished by a package consisting of Senate Bills 770 to 772.

Received in the House

June 7, 2012

Referred to the Committee on Appropriations

Dec. 5, 2012

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Dec. 13, 2012

Substitute offered

The substitute failed by voice vote

Substitute offered by Rep. Ken Goike (R-33)

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Chuck Moss (R-40)

To revise details of the millage rate a school district must levy to repay its bond debt.

The amendment passed by voice vote

Amendment offered by Rep. Eileen Kowall (R-44)

To remove a provision requiring a school bond debt refunding to be "financially beneficial to this state".

The amendment passed by voice vote

Amendment offered by Rep. Anthony Forlini (R-24)

To revise proposed restrictions on school district refunding its debt to accomodate refundings that would allow it to pay off the debt more quickly.

The amendment failed by voice vote

Amendment offered by Rep. Rick Outman (R-70)

To require the Department of Treasury to prepare a report on school district debt and "infrastructure needs".

The amendment failed by voice vote

Passed in the House 68 to 41 (details)

To essentially cap at $1.8 billion the amount of debt guaranteed by the state School Bond Loan Fund, which allows school districts to get the state’s credit rating when they borrow for capital projects. The bill would also prohibit districts from using the fund if they can’t themselves meet projected debt service payments for a particular project, and impose a final mandatory repayment date, which among other things would require districts to completely pay off previous loans before using the fund to back any new ones. This proposal is accomplished by a package consisting of Senate Bills 770 to 772.

Received in the Senate

Dec. 14, 2012

Passed in the Senate 26 to 12 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 22, 2012