February 27, 2003, Introduced by Reps. Wenke and Hoogendyk and referred to the Committee on Local Government and Urban Policy.
A bill to amend 1913 PA 380, entitled
"An act to regulate gifts of real and personal property to
cities, villages, townships, and counties, and the use of the
those gifts; and to validate all such gifts made before the
enactment of this act,"
by amending the title and section 2 (MCL 123.872), the title as
amended and section 2 as added by 1985 PA 9.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
2 An act to regulate gifts of real and personal property to
3 cities, villages,
townships, and counties, and the use of the
4 those gifts and other
funds; and to validate all such gifts
5 made before the enactment of this act.
6 Sec. 2. (1) To provide a means and method to encourage and
7 assist businesses in locating and expanding in this state, and if
8 not prohibited by the terms of the grant, a city, village,
9 township, or county may use a federal, state, or local grant or
1 the proceeds of a federal, state, or local grant to make a
2 secured or unsecured loan or to make a grant to a private person,
3 to a corporation or other business association, to a city,
4 village, township, or county, or to an instrumentality of a city,
5 village, township, or county. A county may grant or loan funds
6 that are not derived from ad valorem taxes to a township,
7 village, or city located within that county for the purpose of
8 encouraging and assisting businesses to locate and expand within
9 the county.
10 (2) A loan or grant
made pursuant to under subsection (1)
11 may be used for local public improvements or to encourage and
12 assist businesses in locating or expanding in this state, to
13 preserve jobs in this state, to encourage investment in the
14 communities in this state, or for other public purposes.
15 (3) The right to repayment of a loan made under subsection
16 (1) may be assigned by a city, village, township, or county to an
17 entity, agency, or authority created pursuant to law, or to a
18 private corporation or association created to make and administer
19 loans made under subsection (1).
20 (4) A city, village, township, or county may receive loans
21 pursuant to under subsection (1) and issue loan revenue
bonds
22 secured by the repayment of loans made under subsection (1). For
23 the purposes specified in subsection (2), bonds issued pursuant
24 to this section shall be approved by the department of treasury
25 before their issuance, but shall not otherwise be subject to the
26 provisions of the revised
municipal finance act, Act No. 202 of
27 the Public Acts of
1943, being sections 131.1 to 139.3 of the
1 Michigan Compiled Laws
2001 PA 34, MCL 141.2101 to
141.2821. In
2 determining whether the issuance of the bonds shall be approved,
3 the department of treasury shall take into consideration the
4 following:
5 (a) Whether the bonds conform to the provisions of law.
6 (b) Whether the probable revenue and properties pledged for
7 payment of the bonds will be sufficient to pay the principal of
8 and interest on the bonds when due.
9 (c) Whether the amount of the proposed issue is sufficient or
10 excessive for the purpose for which the bonds are to be issued.
11 (5) The loan revenue bonds shall not be general obligations
12 of the city, village, township, or county issuing the loan
13 revenue bonds. The loan revenue bonds are declared to be issued
14 for an essential public and governmental purpose, and, together
15 with interest on those bonds and income from those bonds, shall
16 be exempted from all taxes.