Bill Text: MI SB0978 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: State financing and management; funds; surplus funds act; modify. Amends sec. 1 of 1855 PA 105 (MCL 21.141).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2014-12-17 - Postponed Temporarily [SB0978 Detail]
Download: Michigan-2013-SB0978-Engrossed.html
SB-0978, As Passed Senate, December 3, 2014
SENATE BILL No. 978
June 11, 2014, Introduced by Senator KAHN and referred to the Committee on Appropriations.
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repealed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
Senate Bill No. 978 as amended December 3, 2014
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.
<<Enacting section 1. This amendatory act does not take
effect unless Senate Bill No. 957 of the 97th Legislature is
enacted into law.>>
