Bill Text: MI SB0771 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Education; financing; disposition of bond proceeds from school loan revolving fund bonds by state administrative board; provide for. Amends secs. 1, 2 & 4 of 1961 PA 112 (MCL 388.981 et seq.). TIE BAR WITH: SB 0770'11, SB 0772'11
Spectrum: Partisan Bill (Republican 9-0)
Status: (Passed) 2012-12-31 - Assigned Pa 0438'12 [SB0771 Detail]
Download: Michigan-2011-SB0771-Engrossed.html
SB-0771, As Passed Senate, June 7, 2012
SUBSTITUTE FOR
SENATE BILL NO. 771
A bill to amend 1961 PA 112, entitled
"An act to authorize and provide for the issuance, sale, and
refunding of bonds, notes, or commercial paper of the state; to
provide funds for making loans to school districts for payment of
principal and interest on certain school bonds; to provide for use
of moneys repaid to the state by school districts; and to make an
appropriation,"
by amending sections 1, 2, and 4 (MCL 388.981, 388.982, and
388.984), section 1 as amended by 2000 PA 245 and sections 2 and 4
as amended by 2005 PA 94.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) The people of this state by virtue of the
provisions of section 16 of article IX of the state constitution of
1963 having authorized the state to borrow from time to time such
amounts as shall be required, pledge its faith and credit, and
issue its notes or bonds for the purpose of making loans to school
districts as provided in that constitutional provision and
legislation enacted to implement that constitutional provision, the
state administrative board is authorized and directed to borrow on
the full faith and credit of the state from time to time such sums
of money as may be necessary for these purposes, including such
sums as may be necessary to reimburse funds advanced or loaned by
this state or the Michigan finance authority to the school bond
loan fund or the school loan revolving fund established under
section 16c of the shared credit rating act, 1985 PA 227, MCL
141.1066c, to make loans to school districts or to refund bonds,
notes, or commercial paper issued under this act or to pay the
principal of and interest on any notes or renewals of notes issued
pursuant to the provisions of section 5 to provide temporary
financing of sums used for the purpose of making loans to school
districts. The amount to be borrowed from time to time shall be not
less than an amount certified in writing by the state treasurer as
being in his or her opinion necessary to provide funds for the
purposes of this act.
(2) The bonds, notes, or commercial paper issued under this
act shall be designated school loan bonds, notes, or commercial
paper, respectively, and may be issued in series from time to time
as money is needed for purposes of this act, with different dates
of issuance for each series. The state administrative board may
from time to time determine, and by resolution prescribe, the date
of issue of each series, the amount of bonds, notes, or commercial
paper to be included in each series, the maturities of the bonds,
notes, or commercial paper so included, the maximum rate or rates
of interest on the bonds, notes, or commercial paper, the dates of
payment of interest, the place or places of payment of principal
and interest, and provisions relative to registration of bonds,
notes, or commercial paper, if any. The bonds, notes, or commercial
paper, or any portion thereof, may be made subject to redemption
before maturity upon such terms as may be prescribed before the
issuance of the bonds, notes, or commercial paper by resolution of
the state administrative board.
(3) The bonds, notes, or commercial paper issued under this
act shall be executed for and on behalf of this state by the state
treasurer or a deputy state treasurer, and a facsimile of the seal
of the state treasurer shall be printed or impressed on or affixed
to the bonds, notes, or commercial paper. Interest coupons, if any,
evidencing accrued interest to the respective dates of maturity of
the bonds, notes, or commercial paper shall bear the facsimile
signature of the state treasurer.
(4) The bonds, notes, or commercial paper issued under this
act shall be sold by the state administrative board at a price
determined by or pursuant to a resolution of the state
administrative board. The sales shall be public or private sales,
as determined by the state administrative board.
(5) The state administrative board may authorize payment of
the costs of issuance from the proceeds of the bonds, notes, or
commercial paper issued under this act, including, but not limited
to, fees for placement and fees and charges for insurance, letters
of credit, purchase of sale agreements or commitments, or
agreements to provide security to assure timely payment of the
bonds, notes, or commercial paper.
(6) As used in this act, except for this subsection, "state
treasurer" means the state treasurer or his or her designee. This
designation shall be in a written instrument signed by the state
treasurer and maintained in a permanent file. The signature of any
designee shall have the same force and effect as the signature of
the state treasurer for all purposes of all other provisions of
this act.
(7) As used in this act, "Michigan finance authority" means
the Michigan finance authority created under MCL 12.194.
Sec. 2. The proceeds of sale of refunding bonds, notes, or
commercial paper issued under this act shall be applied as
determined by the state administrative board. The proceeds of sale
of bonds, notes, or commercial paper issued under this act for the
purpose of reimbursing this state or the Michigan finance authority
shall be applied as determined by the state administrative board.
The proceeds of sale of other bonds, notes, or commercial paper
issued under this act shall be deposited in the school loan
revolving
fund created in established
under section 16c of the
shared credit rating act, 1985 PA 227, MCL 141.1066c, and shall be
paid out in no other manner or for any other purpose than provided
in section 16 of article IX of the state constitution of 1963 and
laws enacted pursuant to that section.
Sec. 4. Any money repaid by school districts on loans made
from
the school loan revolving fund created in established under
section 16c of the shared credit rating act, 1985 PA 227, MCL
141.1066c, other than loans or repayments that have been assigned
to this state by the Michigan finance authority, shall be deposited
in the school loan revolving fund. Unless amounts on deposit in the
school loan revolving fund are insufficient for the purpose of
making loans to school districts, the state treasurer may satisfy
the requirements of section 16 of article IX of the state
constitution of 1963 and laws enacted pursuant to that section by
causing loans to be made from the school loan revolving fund. The
state treasurer may assign repayments on loans previously made from
the
school bond loan fund before the effective date of the
amendatory
act amending this section July
20, 2005 to require the
deposit of proceeds of sale to the school loan revolving fund. The
state treasurer may accept the assignment to this state of loans or
repayments on loans made from or payable to the school loan
revolving fund.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No. 770.
(b) Senate Bill No. 772.
