2011 Senate Bill 772 / 2012 Public Act 439

Revise school bond details

Introduced in the Senate

Oct. 20, 2011

Introduced by Sen. Howard Walker (R-37)

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-1) be adopted and that the bill then pass.

June 6, 2012

Substitute offered

The substitute passed by voice vote

June 7, 2012

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 passed 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