August 8, 2007, Introduced by Reps. Jackson, Johnson, Young, Donigan, Robert Jones, Cushingberry, Sak, Alma Smith, Warren, Bauer, Melton and Sheltrown and referred to the Committee on Government Operations.
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,"
(MCL 21.141 to 21.147) by adding section 5.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) The state treasurer shall not deposit any surplus
funds belonging to the state in a financial institution with total
assets of more than $10,000,000.00 at the end of its last full
fiscal year unless the financial institution complies with
subsection (3).
(2) Before May 1 each year, the state treasurer shall publish
a list of financial institutions with total assets of more than
$10,000,000.00 at the end of their last full fiscal year that have
failed to comply with subsection (3). A financial institution that
does not appear on that list shall conclusively be presumed to have
complied with subsection (3) and to have filed the required reports
for purposes of determining its eligibility to be a depository of
state funds. Additional funds shall not be deposited in a financial
institution that appears on the list until the state treasurer
certifies that the financial institution has complied with
subsection (3) and has filed the required reports, or until 91 days
after the end of a subsequent year for which the required reports
are filed with the state treasurer, whichever occurs sooner.
(3) To be a depository of surplus funds belonging to this
state, a financial institution shall not knowingly make or maintain
a loan to an oppressive regime, a national corporation of an
oppressive regime, or a subsidiary or affiliate of a United States
firm operating in an oppressive regime. A financial institution
shall be considered to have complied with this subsection if the
financial institution has filed with the state treasurer an
affidavit attesting to the fact that it has after July 1, 2007 no
existing loans to an oppressive regime, a national corporation of
an oppressive regime, or a subsidiary or affiliate of a United
States firm operating in an oppressive regime, as determined by the
state treasurer.
(4) As used in this subsection:
(a) "National corporation" means a corporation, or a
subsidiary of affiliate of a corporation, that is more than 50%
owned or operated by the government of an oppressive regime.
(b) "Oppressive regime" means the Republic of Sudan.
(c) "Subsidiary or affiliate of a United States firm operating
in an oppressive regime" means, as determined by the state
treasurer, a firm incorporated under the laws of an oppressive
regime, domiciled in an oppressive regime, and controlled by a
United States firm. A subsidiary or affiliate shall not be
construed to mean a subsidiary or affiliate that is located in the
United States.
(d) "Surplus funds" means, at any given date, the excess of
cash and other recognized assets, that are expected to be resolved
into cash or its equivalent in the natural course of events and
with a reasonable certainty, over the liabilities and necessary
reserves at the same date. Surplus funds do not include the
proceeds of bond and note issues that are deposited for a period of
not more than 10 days in a financial institution for settlement
purposes.