2004 House Bill 5839 / Public Act 415

Restrict ISD millage uses and durations

Introduced in the House

April 29, 2004

Introduced by Rep. Ruth Johnson (R-46)

To prohibit Intermediate School District (ISD) millage authorizations that have a duration of more than 25 years, and prohibit ISD bond issues from being used for any purpose other than providing facilities for special education or vocational-technical education. ISDs would be required to have annual independent audits done to ensure that bond money has not been used for any other purpose, and if it was, voter approval of the bond millage could be reconsidered in an election if 10 percent of the registered voters in the ISD sign petitions requesting a vote. This is one of a number of bills that have been introduced to reform ISDs.

Referred to the Committee on Education

Sept. 8, 2004

Reported without amendment

With the recommendation that the substitute (H-5) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that incorporates substantive changes resulting from committee testimony and deliberation. See House-passed version for details.

The substitute passed by voice vote

Amendment offered by Rep. Andy Meisner (D-27)

To strip out provisions authorizing voters to reconsider and revoke millage authorization if it is found that the money is being used for other than the purpose given when the millage election took place.

The amendment failed 49 to 55 (details)

Passed in the House 61 to 46 (details)

To prohibit Intermediate School District (ISD) operating purpose millage authorizations to have a duration of more than 20 years. Also, to require ISDs that impose new vocational education and special education operations millages to undergo an audit of the type described in the House-passed version of <a href="http://www.michiganvotes.org/2003-HB-5457">House Bill 5457</a>. If it was found that a millage was being used for other than its stated purpose, then voter approval of the millage could be reconsidered if 10 percent of the registered voters in the ISD sign petitions requesting a vote. If the millage was being used to repay debt secured by bonds, an election could only take place after the bonds were paid off.

Received in the Senate

Sept. 9, 2004

Referred to the Committee on Education

Nov. 3, 2004

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Nov. 9, 2004

Substitute offered

To replace the previous version of the bill with one that does not allow for voter reconsideration of millage that was being misused by an ISD. If an audit found that the money was misused, the matter could be referred to Attorney General for civil proceedings.

The substitute passed by voice vote

Nov. 10, 2004

Substitute offered by Sen. Wayne Kuipers (R-30)

To replace the previous version of the bill with one containing technical changes that do not affect its substance as previously described.

The substitute passed by voice vote

Passed in the Senate 36 to 0 (details)

To prohibit Intermediate School District (ISD) operating purpose millage authorizations to have a duration of more than 20 years. Also, to require ISDs that impose new vocational education and special education operations millages to undergo an audit of the type described in the House-passed version of House Bill 5457. If it was found that a millage was being used for other than its stated purpose, then the matter would be referred to the Attorney General for civil proceedings, and an ISD could be required to repay its special education or vocational-technical education programs. However, the "repayment" would be with money that is probably for those programs anyway.

Received in the House

Nov. 10, 2004

To concur with the Senate-passed version of the bill, which eliminates the voter reconsideration of misused bonds provision.

Passed in the House 102 to 0 (details)

Signed by Gov. Jennifer Granholm

Nov. 29, 2004