SENATE BILL NO. 1354


   November 5, 1998, Introduced by Senator DE BEAUSSAERT and 
        referred to the Committee on Technology and Energy.



        A bill to amend 1985 PA 227, entitled

   "Shared credit rating act,"

   (MCL 141.1051 to 141.1077) by adding section 16c.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 16C.  (1) THE AUTHORITY SHALL ESTABLISH AN ENERGY EFFI-

 2    CIENCY REVOLVING LOAN FUND.  THE AUTHORITY SHALL ESTABLISH

 3    ACCOUNTS AND SUBACCOUNTS WITHIN THE ENERGY EFFICIENCY REVOLVING

 4    LOAN FUND AS IT DETERMINES ARE NECESSARY OR APPROPRIATE TO OPER-

 5    ATE THE ENERGY EFFICIENCY REVOLVING LOAN FUND.  AT THE CLOSE OF A

 6    FISCAL YEAR, MONEY IN AN ACCOUNT OR SUBACCOUNT ESTABLISHED UNDER

 7    THIS SECTION SHALL REMAIN IN THE ACCOUNT OR SUBACCOUNT AND SHALL

 8    NOT LAPSE TO THE GENERAL FUND.

 9         (2) THE AUTHORITY MAY FUND THE ENERGY EFFICIENCY REVOLVING

10    LOAN FUND THROUGH FEDERAL GRANTS, THROUGH REVENUES OF THE

11    AUTHORITY, OR THROUGH ANY OTHER MEANS PERMITTED BY LAW.


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 1         (3) MONEY IN THE ENERGY EFFICIENCY REVOLVING LOAN FUND SHALL

 2    BE USED TO PROVIDE LOANS TO LOCAL UNITS OF GOVERNMENT AS PROVIDED

 3    IN THE ENERGY EFFICIENCY ACT.  A LOAN SHALL BE MADE THROUGH A

 4    LOAN AGREEMENT IN WHICH A LOCAL UNIT OF GOVERNMENT AGREES TO MAKE

 5    LOAN REPAYMENTS TO THE AUTHORITY OR THROUGH THE PURCHASE OR REFI-

 6    NANCING OF MUNICIPAL OBLIGATIONS IN FULLY MARKETABLE FORM.  LOAN

 7    AGREEMENTS WITH LOCAL UNITS OF GOVERNMENT SHALL CONTAIN APPROPRI-

 8    ATE PROVISIONS RELATING TO MATURITY OR LENGTH OF LOAN, REPAYMENT

 9    TERMS, STATE OR LOCAL FUNDING REQUIREMENTS, AND OTHER PROVISIONS

10    THE AUTHORITY CONSIDERS NECESSARY OR APPROPRIATE.  THE MAXIMUM

11    AMOUNT OF ANY MUNICIPAL OBLIGATION PURCHASED WITH PROCEEDS OF THE

12    ENERGY EFFICIENCY REVOLVING LOAN FUND AND THE MAXIMUM INTEREST

13    RATE ON A LOAN OR MUNICIPAL OBLIGATION SHALL BE DETERMINED PURSU-

14    ANT TO THE ENERGY EFFICIENCY ACT.

15         Enacting section 1.  This amendatory act does not take

16    effect unless Senate Bill No. 1353

17                           of the 89th Legislature is enacted into

18    law.





















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