HB-4332, As Passed House, April 23, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4332

 

March 11, 2015, Introduced by Rep. Garcia and referred to the Committee on Financial Liability Reform.

 

     A bill to amend 1855 PA 105, entitled

 

"An act to regulate the disposition of the surplus funds in the

state treasury; to provide for the deposit of surplus funds in

certain financial institutions; to lend surplus funds pursuant to

loan agreements secured by certain commercial, agricultural, or

industrial real and personal property; to authorize the loan of

surplus funds to certain municipalities; to authorize the

participation in certain loan programs; to authorize an

appropriation; and to prescribe the duties of certain state

agencies,"

 

by amending section 1 (MCL 21.141), as amended by 2012 PA 287.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) The state treasurer shall make a loan from surplus

 

funds to an eligible municipality, as municipality is defined in

 

section 1 of the emergency municipal loan act, 1980 PA 243, MCL

 

141.931, if the loan is approved under the emergency municipal loan

 

act, 1980 PA 243, MCL 141.931 to 141.942.

 


     (2) A loan made under subsection (1) shall comply with the

 

requirements of the emergency municipal loan act, 1980 PA 243, MCL

 

141.931 to 141.942, relating to the terms, conditions, rate of

 

interest, and amount of the loan.

 

     (3) Upon approval of a loan by the board and execution of a

 

note of indebtedness to this state by an authorized representative

 

of the municipality, including, but not limited to, an emergency

 

manager for the municipality if the municipality is in receivership

 

under the local government and school district fiscal

 

accountability act, 2011 PA 4, MCL 141.1501 to 141.1531, a

 

successor statute, or, if the local government and school district

 

fiscal accountability act, 2011 PA 4, MCL 141.1501 to 141.1531, is

 

repealed or otherwise not effective and former 1990 PA 72 is

 

reenacted or otherwise again in effect or applicable, an emergency

 

financial manager for the municipality if the municipality has a

 

financial emergency under former 1990 PA 72, local financial

 

stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575,

 

the state treasurer shall issue a warrant to the municipality in an

 

amount equal to the amount of the loan.

 

     (4) For state fiscal years beginning before October 1, 2011,

 

the total amount of loans made from surplus funds pursuant to this

 

section in any 1 state fiscal year shall not exceed $5,000,000.00

 

plus the amount of any loans authorized by section 3(2) of the

 

emergency municipal loan act, 1980 PA 243, MCL 141.933. For state

 

fiscal years beginning after September 30, 2018, the total amount

 

of loans made from surplus funds pursuant to this section in any 1

 

state fiscal year shall not exceed $10,000,000.00 plus the amount

 


of any loans authorized by section 3(2) of the emergency municipal

 

loan act, 1980 PA 243, MCL 141.933, with no loan to a single

 

municipality exceeding $4,000,000.00 in a state fiscal year. For

 

the period beginning on October 1, 2011 and ending on September 30,

 

2018, loans made from surplus funds pursuant to this section may

 

include both of the following:

 

     (a) Loans to municipalities other than school districts

 

totaling up to $35,000,000.00 during the period. Loans to a single

 

municipality under this subdivision shall not total more than

 

$20,000,000.00.in amounts authorized under section 3(1)(a) of the

 

emergency municipal loan act, 1980 PA 243, MCL 141.933.

 

     (b) Loans to school districts within this state that total up

 

to $50,000,000.00 during the period. Loans to a single school

 

district under this subdivision shall not total more than

 

$20,000,000.00.in amounts authorized under section 3(1)(b) of the

 

emergency municipal loan act, 1980 PA 243, MCL 141.933.

 

     (5) The state treasurer may sell, assign, transfer, or

 

repurchase loans made from surplus funds under this section or from

 

the proceeds of the sale, assignment, or transfer of a loan under

 

section 6a of the emergency municipal loan act, 1980 PA 243, MCL

 

141.936a. The state treasurer shall use surplus funds to repurchase

 

a loan under this subsection.

 

     (6) As used in this section, "board" means the local emergency

 

financial assistance loan board created pursuant to the emergency

 

municipal loan act, 1980 PA 243, MCL 141.931 to 141.942.