Section 388.1611g - Allocation; payments for fiscal year ending September 30, 2015; waiver resolution; offers of settlement and compromise; creation of obligation or liability; payment date; use of funds; reduction in number of mills levied for debt service; pledge or assignment of payments; dissolution of district(1) From the appropriation in section 11, there is allocated for this section an amount not to exceed $39,500,000.00 for the fiscal year ending September 30, 2015, after which these payments will cease. These allocations are for paying the amounts described in subsection (3) to districts and intermediate districts, other than those receiving a lump-sum payment under section 11f(2), that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, submitted to the state treasurer a waiver resolution described in section 11f. The amounts paid under this section represent offers of settlement and compromise of any claim or claims that were or could have been asserted by these districts and intermediate districts, as described in this section.(2) This section does not create any obligation or liability of this state to any district or intermediate district that does not submit a waiver resolution described in section 11f. This section and any other provision of this article are not intended to admit liability or waive any defense that is or would be available to this state or its agencies, employees, or agents in any litigation or future litigation with a district or intermediate district regarding these claims or potential claims.(3) The amount paid each fiscal year to each district or intermediate district under this section shall be 1 of the following:(a) If the district or intermediate district does not borrow money and issue bonds under section 11i, 1/30 of the total amount listed in section 11h for the district or intermediate district through the fiscal year ending September 30, 2015.(b) If the district or intermediate district borrows money and issues bonds under section 11i, an amount in each fiscal year calculated by the department of treasury that is equal to the debt service amount in that fiscal year on the bonds issued by that district or intermediate district under section 11i and that will result in the total payments made to all districts and intermediate districts in each fiscal year under this section being no more than the amount appropriated under this section in each fiscal year.(4) The entire amount of each payment under this section each fiscal year shall be paid on May 15 of the applicable fiscal year or on the next business day following that date. If a district or intermediate district borrows money and issues bonds under section 11i, the district or intermediate district shall use funds received under this section to pay debt service on bonds issued under section 11i. If a district or intermediate district does not borrow money and issue bonds under section 11i, the district or intermediate district shall use funds received under this section only for the following purposes, in the following order of priority: (a) First, to pay debt service on voter-approved bonds issued by the district or intermediate district before the effective date of this section.(b) Second, to pay debt service on other limited tax obligations.(c) Third, for deposit into a sinking fund established by the district or intermediate district under the revised school code.(5) To the extent payments under this section are used by a district or intermediate district to pay debt service on debt payable from millage revenues, and to the extent permitted by law, the district or intermediate district may make a corresponding reduction in the number of mills levied for debt service.(6) A district or intermediate district may pledge or assign payments under this section as security for bonds issued under section 11i, but shall not otherwise pledge or assign payments under this section.(7) If a district eligible for payments under this section is dissolved under section 12 of the revised school code, MCL 380.12, the payment otherwise due to the dissolved district under this section shall be paid instead to the intermediate district of the dissolved district. The intermediate district of the dissolved district shall perform any functions and responsibilities of the board and other officers of the dissolved district necessary under this section on behalf of the dissolved district. As used in this subsection, "dissolved district" and "receiving district" mean those terms as defined in section 20.Amended by 2014, Act 196,s 5, eff. 10/1/2014.Amended by 2013, Act 97,s 3, eff. 10/1/2013.Amended by 2013, Act 60,s 4, eff. 10/1/2013.Amended by 2012, Act 201,s 6, eff. 10/1/2012.Amended by 2011, Act 62,s 5, eff. 10/1/2011.Amended by 2010, Act 110,s 6 , eff. 10/1/2010.Amended by 2009, Act 121,s 6 , eff. 10/19/2009.Amended by 2008, Act 268,s 6 , eff. 10/1/2008.Amended by 2007, Act 137,s 7 , eff. 11/8/2007.Amended by 2007, Act 6,s 3 , eff. 4/30/2007.Amended by 2006, Act 342, s 6, eff. 10/1/2006.Amended by 2005, Act 155, s 7, eff. 10/1/2005.Amended by 2004, Act 351, s 7, eff. 10/1/2004.Amended by 2003, Act 158, s 9, eff. 8/11/2003.Add. 1997, Act 142, Imd. Eff. 11/19/1997 ;--Am. 1998, Act 339, Imd. Eff. 10/13/1998 ;--Am. 1998, Act 553, Imd. Eff. 1/27/1999 ;--Am. 1999, Act 119, Imd. Eff. 7/20/1999 ;--Am. 2000, Act 297, Imd. Eff. 7/26/2000 ;--Am. 2001, Act 121, Imd. Eff. 9/28/2001 ;--Am. 2002, Act 191, Imd. Eff. 4/26/2002 ;--Am. 2002, Act 521, Imd. Eff. 7/25/2002.