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2011 Senate Bill 770: Revise school bond details

Public Act 437 of 2012

Introduced by Sen. John Pappageorge (R) on October 20, 2011 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.   Official Text and Analysis.
Referred to the Senate Appropriations Committee on October 20, 2011
Reported in the Senate on May 17, 2012 With the recommendation that the substitute (S-3) be adopted and that the bill then pass.
Substitute offered in the Senate on June 6, 2012
The substitute passed by voice vote in the Senate on June 6, 2012
Amendment offered by Sen. Bruce Caswell (R) on June 7, 2012 To revise some technical details of the proposal.
The amendment passed by voice vote in the Senate on June 7, 2012
Passed 25 to 12 in the Senate on June 7, 2012 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 on June 7, 2012
Referred to the House Appropriations Committee on June 7, 2012
Reported in the House on December 5, 2012 With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered in the House on December 13, 2012
The substitute failed by voice vote in the House on December 13, 2012
Substitute offered by Rep. Ken Goike (R) on December 13, 2012 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 in the House on December 13, 2012
Amendment offered by Rep. Chuck Moss (R) on December 13, 2012 To revise details of the millage rate a school district must levy to repay its bond debt.
The amendment passed by voice vote in the House on December 13, 2012
Amendment offered by Rep. Eileen Kowall (R) on December 13, 2012 To remove a provision requiring a school bond debt refunding to be "financially beneficial to this state".
The amendment passed by voice vote in the House on December 13, 2012
Amendment offered by Rep. Anthony Forlini (R) on December 13, 2012 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 in the House on December 13, 2012
Amendment offered by Rep. Rick Outman (R) on December 13, 2012 To require the Department of Treasury to prepare a report on school district debt and "infrastructure needs".
The amendment failed by voice vote in the House on December 13, 2012
Passed 68 to 41 in the House on December 13, 2012 (same description)
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 on December 14, 2012
Passed 26 to 12 in the Senate on December 14, 2012 To concur with the House-passed version of the bill.
Signed by Gov. Rick Snyder on December 22, 2012

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