HOUSE BILL No. 4343


     February 27, 2001, Introduced by Reps. Pestka, Schauer, Anderson, Rivet, Bernero, Switalski, Neumann, Sheltrown, Phillips, Williams, Plakas,
Bob Brown, Rison, Bogardus, Adamini, Rich Brown, Hale, Woodward, Wojno, Kolb, Spade, Jamnick, Minore, Lockwood, Kooiman, Birkholz, O'Neil,
Frank, Lipsey, Callahan, Bovin, Gosselin, Pappageorge, Richardville, Whitmer, Mans, Schermesser, Hansen, Howell, Julian and Lemmons and referred to
the Committee on Tax Policy.


        A bill to amend 1976 PA 225, entitled

   "An act to defer the collection of special assessments on home-
   stead properties; to provide for conditions of eligibility for
   such a deferment; to prescribe the powers and duties of the
   department of treasury, local assessing officers, and local col-
   lecting officers; to provide for the advancement of moneys by the
   state to indemnify special assessment districts for losses from
   deferment of collections; to provide for the advancement of money
   by the state to an owner for the repayment of loans used by the
   owner to pay special assessments; to provide for the collection
   of deferred special assessments and interest thereon, and the
   disposition of these collections; to make an appropriation; and
   to prescribe penalties,"

   by amending the title and sections 1, 2, 3, 4, 5, 6, 7, 8, 8a, 9,

   and 10 (MCL 211.761, 211.762, 211.763, 211.764, 211.765, 211.766,

   211.767, 211.768, 211.768a, 211.769, and 211.770), the title and

   sections 2, 3, 4, and 10 as amended by 1980 PA 403 and section 8a

   as amended by 1981 PA 59, and by adding section 4a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:





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                                    TITLE

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           An act to defer the collection of special assessments AND

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      PROPERTY TAXES on homestead properties; to provide for conditions

 4
      of eligibility for such a deferment; to prescribe the powers and

 5
      duties of the department of treasury, local assessing officers,

 6
      and local collecting officers; to provide for the advancement of

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       moneys  MONEY by the state to indemnify special assessment dis-

 8
      tricts AND LOCAL TAX COLLECTING UNITS for losses from deferment

 9
      of collections; to provide for the advancement of money by the

10
      state to an owner for the repayment of loans used by the owner to

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      pay special assessments AND PROPERTY TAXES; to provide for the

12
      collection of deferred special assessments AND PROPERTY TAXES and

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      interest thereon, and the disposition of these collections; to

14
      make an appropriation; and to prescribe penalties.

15
           Sec. 1.  As used in this act:

16
           (a) "Department" means the department of treasury.

17
           (B) "EQUITY" MEANS THE DIFFERENCE BETWEEN TWICE THE STATE

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      EQUALIZED VALUATION OF A HOMESTEAD AND ANY OUTSTANDING MORTGAGE,

19
      LAND CONTRACT, LIEN, OR OTHER ENCUMBRANCE, INCLUDING A LIEN

20
      IMPOSED UNDER THIS ACT.

21
           (C)  (b)  "Totally and permanently disabled" means a person

22
       as defined  DESCRIBED in  42 U.S.C.  section 416  SECTION
   216(i)

23
      OF TITLE II OF THE SOCIAL SECURITY ACT, CHAPTER 531, 49 STAT.

24
      620, 42 U.S.C. 416.

25
           (D)  (c)  "Homestead" means a dwelling or a unit in a

26
      multiple-unit dwelling, owned and occupied as a home by  the  AN

27
      owner,  thereof,  including all contiguous unoccupied real



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      property owned by the  person  OWNER.  Homestead includes a

 2
      dwelling and an outbuilding used in connection with a dwelling,

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      situated on the  lands  PROPERTY of another.

 4
           (E)  (d)  "Owner" includes a person eligible for the exemp-

 5
      tion specified in this act, who is purchasing a homestead under a

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      mortgage or land contract,  or  who owns a dwelling situated on

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      the leased lands of another, or WHO is a tenant-stockholder of a

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      cooperative housing corporation.

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           (F)  (e)  "Special assessment" means an assessment against

10
      real property calculated on a benefit or ad valorem basis for

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      curb and gutter, sidewalk, sewer, water, or street paving; a

12
      drain; a connection fee or similar charge for a sewer or water

13
      system; or the land contract on a parcel of property acquired

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      under the circumstances set forth in section  3(2)  3(3).

15
      Special assessment does not include charges for current service.

16
           Sec. 2.  (1) The payment of special assessments  assessed

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      AND PROPERTY TAXES LEVIED and due and payable on a homestead in

18
      any year in which the owner meets all of the terms and conditions

19
      of this act shall be deferred until 1 year after the owner's

20
      death, subject to further order by the probate court or until the

21
      homestead or any part of the homestead is conveyed or transferred

22
      to another or a contract to sell THE HOMESTEAD is entered into.

23
      The death of a spouse  shall  DOES not terminate the deferment of

24
      special assessments OR PROPERTY TAXES for a homestead owned by

25
      husband and wife under tenancy by the entireties as long as the

26
      surviving spouse does not remarry.  Special assessments AND





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      PROPERTY TAXES deferred under this act may be paid in full at any

 2
      time.

 3
           (2) If the collecting officer or the department determines

 4
      that legal or equitable title to a homestead or any part of a

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      homestead for which special assessments OR PROPERTY TAXES are

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      deferred under this act is conveyed or transferred or a contract

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      to sell the homestead or part of a homestead is entered into, and

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      the deferment is not terminated, the owner or owner's estate

 9
       shall be  IS subject to an interest rate of 1% per month or

10
      fraction of a month, on the amount deferred, computed from the

11
      date of conveyance, transfer, or contractual agreement.  The

12
      amount of interest shall be payable to the collecting officer and

13
      transmitted by that office pursuant to section 9.

14
           (3) The department shall notify each owner whose special

15
      assessments OR PROPERTY TAXES are authorized to be deferred under

16
      this act that if legal or equitable title to the homestead or any

17
      part of the homestead is conveyed or transferred or a contract to

18
      sell the homestead or part of the homestead is entered into, the

19
      deferment is terminated and the amount deferred is immediately

20
      due and payable, plus interest as provided in subsection (2).

21
           Sec. 3.  (1) An owner of a homestead who is 65 years of age

22
      or older,  or  who is totally and permanently disabled, WHO

23
      CLAIMS A DEPENDENCY EXEMPTION UNDER SECTION 30(2) OF THE INCOME

24
      TAX ACT OF 1967, 1967 PA 281, MCL 206.30, FOR A CHILD WHO IS LESS

25
      THAN 18 YEARS OLD, OR WHO IS AN ADULT IN NEED OF PROTECTIVE SERV-

26
      ICES AS DEFINED IN SECTION 11 OF THE SOCIAL WELFARE ACT, 1939

27
      PA 280, MCL 400.11, AND WHO IS a citizen of the United States, a



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      resident of this state for 5 or more years, and the sole owner of

 2
      the homestead for  5  3 or more years is eligible for the defer-

 3
      ment of special assessments AND PROPERTY TAXES LEVIED on that

 4
      homestead pursuant to this act, IF THE EQUITY IN THAT OWNER'S

 5
      HOMESTEAD IS NOT LESS THAN 25% OF TWICE THE STATE EQUALIZED VALU-

 6
      ATION OF THAT HOMESTEAD.  The owner and the owner's spouse shall

 7
      not have received during the last calendar year household income

 8
      as defined in section 508 of  Act No. 281 of the Public Acts of

 9
      1967, as amended, being section 206.508 of the Michigan Compiled

10
      Laws,  THE INCOME TAX ACT OF 1967, 1967 PA 281, MCL 206.508, in

11
      excess of  $8,000.00; this amount shall be increased to

12
      $10,000.00.   for the determination of eligibility for a defer-

13
      ment after December 31, 1982.  The gross amount of  the  A
   spe-

14
      cial assessment DEFERRED UNDER THIS ACT, exclusive of interest,

15
      shall not be less than $300.00.

16
           (2) The maximum dollar amount of household income required

17
      by subsection (1) to be eligible for the deferment of special

18
      assessments OR PROPERTY TAXES under this act shall be adjusted

19
      each year, beginning on January 1, 1984, pursuant to the annual

20
      average percentage increase or decrease in the Detroit consumer

21
      price index  --all items  as defined and reported by the United

22
      States department of labor, bureau of labor statistics.   The

23
      adjustment shall be made by multiplying the annual average per-

24
      centage increase or decrease in the Detroit consumer price index

25
      for the prior calendar year by the current maximum dollar amount

26
      of the household income requirement as adjusted by this

27
      subsection.  The resultant product shall be added to the maximum



   00966'01                                   6

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      dollar amount of the household income requirement as adjusted by

 2
      this subsection and then rounded off to the nearest whole number,

 3
      which shall be the new household income requirement for the cur-

 4
      rent year.

 5
           (3)  After January 1, 1975, a  A person  65 years of age or

 6
      older  who  otherwise  qualifies under this section for
   deferral

 7
      of special assessments OR PROPERTY TAXES who  fails  FAILED to

 8
      pay a prior delinquent special assessment OR PROPERTY TAX

 9
      ASSESSMENT and  thereby  lost  the property  HIS OR HER
   HOMESTEAD

10
      to the local unit of government  who purchased the property

11
      through  tax  FORFEITURE, FORECLOSURE, AND sale may reacquire the

12
      property from the local unit of government through a land

13
      contract.   The  A land contract for a  parcel of property

14
      HOMESTEAD reacquired under  the circumstances set forth in  this

15
      subsection shall be treated as a special assessment for purposes

16
      of this act.

17
           (4)  The owner of a homestead who is 65 years of age or

18
      older or is totally and permanently disabled, a citizen of the

19
      United States, a resident of this state for 5 or more years, and

20
      the sole owner of the homestead for 5 or more years, in the year

21
      the special assessment was levied, and  A PERSON WHO QUALIFIES

22
      UNDER THIS SECTION FOR DEFERRAL OF SPECIAL ASSESSMENTS OR PROP-

23
      ERTY TAXES who has borrowed money from a lending institution to

24
      pay a special assessment OR PROPERTY TAXES before  the effective

25
      date of this subsection, shall be  JANUARY 8, 1981 IS eligible to

26
      receive money from the special revolving fund created in section

27
      10, to be used  for the purpose of repaying  TO REPAY the lending



   00966'01                                   7

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      institution the principal amount used by the person to pay the

 2
      special assessment OR PROPERTY TAXES.  The department shall cause

 3
      a lien on the homestead in favor of the state to be recorded with

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      the appropriate register of deeds, indicating the amount of the

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      money paid and identifying the homestead.  Money paid from the

 6
      fund under this subsection shall be treated as if the money had

 7
      been paid as deferred PROPERTY TAXES OR special assessment.

 8
           Sec. 4.  An owner may apply to the local assessing officer

 9
      for deferment of the payment of special assessments on the

10
      owner's homestead.  AN OWNER MAY APPLY TO THE DEPARTMENT FOR

11
      DEFERMENT OF THE PAYMENT OF PROPERTY TAXES LEVIED ON THE OWNER'S

12
      HOMESTEAD. The application shall be made upon an affidavit form

13
      to be furnished and made available by the department at conven-

14
      ient locations throughout the state.  The affidavit form shall

15
      contain the following statement in 10-point  boldface  BOLDFACED

16
      type located immediately above the affiant's signature:  "If this

17
      deferment is authorized the state will place a lien on your

18
      property."  THE AFFIDAVIT SHALL CONTAIN A STATEMENT THAT THE

19
      OWNER APPLYING FOR THE DEFERMENT OF SPECIAL ASSESSMENTS OR PROP-

20
      ERTY TAXES UNDER THIS ACT HAS RECEIVED OR HAS APPLIED FOR ALL

21
      CREDITS AVAILABLE TO THAT OWNER UNDER SECTIONS 520 AND 522 OF THE

22
      INCOME TAX ACT OF 1967, 1967 PA 281, MCL 206.520 AND 206.522. A

23
      person making a false affidavit for the purpose of obtaining

24
      deferment of special assessments OR PROPERTY TAXES under this act

25
      is guilty of perjury.  If the homestead is owned jointly by hus-

26
      band and wife, each spouse shall sign and file the affidavit.  If

27
      the homestead is encumbered by a mortgage or an unpaid balance on



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      a land contract, a deferment of special assessments OR PROPERTY

 2
      TAXES shall not be made without the written consent of the mort-

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      gagee or the land contract vendor, which shall be filed with the

 4
      affidavit.  The affidavit shall be filed with the local assessing

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      officer FOR THE DEFERMENT OF SPECIAL ASSESSMENTS AND WITH THE

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      DEPARTMENT FOR THE DEFERMENT OF PROPERTY TAXES at least 30 days

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       after  BEFORE the due date of a special assessment or install-

 8
      ment of a special assessment OR PROPERTY TAX BILL for which

 9
      deferment is requested.

10
           SEC. 4A.  THE APPLICATION PROVIDED FOR IN SECTION 4 SHALL

11
      CONTAIN BOTH OF THE FOLLOWING:

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           (A) A STATEMENT THAT THE OWNER APPLYING FOR THE DEFERMENT

13
      HAS PROPERTY AND CASUALTY INSURANCE ON THAT OWNER'S HOMESTEAD IN

14
      AN AMOUNT NOT LESS THAN THE AMOUNT OF ALL SPECIAL ASSESSMENTS AND

15
      PROPERTY TAXES DEFERRED.

16
           (B) AN ASSIGNMENT TO THE STATE OF THE OWNER'S INTEREST IN

17
      THE PROPERTY AND CASUALTY INSURANCE ON THAT OWNER'S HOMESTEAD IN

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      AN AMOUNT EQUAL TO THE TOTAL AMOUNT OF ALL SPECIAL ASSESSMENTS

19
      AND PROPERTY TAXES DEFERRED.

20
           Sec. 5.  (1) Upon receipt of the affidavit, the local

21
      assessing officer FOR THE DEFERMENT OF A SPECIAL ASSESSMENT AND

22
      THE DEPARTMENT FOR THE DEFERMENT OF PROPERTY TAXES shall promptly

23
      examine it to determine if the applicant meets the requirements

24
      of this act and shall make an inspection of the property and

25
      property records and conduct an investigation and survey as  it

26
      deems  necessary.  An applicant shall not be compelled to supply

27
      information not reasonably essential to a proper determination of



   00966'01                                   9

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      the eligibility of the owner and the homestead for the relief

 2
      provided under this act.  The local assessing officer FOR THE

 3
      DEFERMENT OF A SPECIAL ASSESSMENT AND THE DEPARTMENT FOR THE

 4
      DEFERMENT OF PROPERTY TAXES shall promptly make  its  A decision

 5
      with respect to an application under this section and shall

 6
      notify the applicant of  its  THAT decision not later than the

 7
      due date for a special assessment OR FOR THE PROPERTY TAXES

 8
      involved in the application.  A decision of the local assessing

 9
      officer  shall be  IS final except as otherwise provided

10
       pursuant to  UNDER the STATE constitution OF 1963.

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           (2) THE DEPARTMENT SHALL ANNUALLY DO ALL OF THE FOLLOWING

12
      FOR THE DEFERMENT OF PROPERTY TAXES UNDER THIS ACT:

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           (A) DETERMINE THAT THE PERSON ON WHOSE BEHALF PROPERTY TAXES

14
      ARE DEFERRED IS ELIGIBLE FOR THE DEFERRAL OF PROPERTY TAXES UNDER

15
      SECTION 3.

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           (B) SECURE AN ASSIGNMENT TO THIS STATE OF ANY CREDIT ALLOWED

17
      UNDER SECTIONS 520 OR 522 OF THE INCOME TAX ACT OF 1967, 1967

18
      PA 281, MCL 206.520 AND 206.522, PAYABLE TO THE PERSON ON WHOSE

19
      BEHALF THE PROPERTY TAXES ARE DEFERRED DURING THE PERIOD IN WHICH

20
      PROPERTY TAXES ARE DEFERRED ON THAT PERSON'S HOMESTEAD, WHICH

21
      CREDIT SHALL BE APPLIED TO ANY LIEN IMPOSED ON THAT HOMESTEAD

22
      UNDER THIS ACT.

23
           (C) DETERMINE THAT THE PERSON ON WHOSE BEHALF PROPERTY TAXES

24
      ARE DEFERRED HAS PROPERTY AND CASUALTY INSURANCE ON HIS OR HER

25
      HOMESTEAD IN AN AMOUNT NOT LESS THAN THE AMOUNT OF ALL SPECIAL

26
      ASSESSMENTS AND PROPERTY TAXES DEFERRED AND THAT THE PERSON ON

27
      WHOSE BEHALF PROPERTY TAXES ARE DEFERRED HAS ASSIGNED TO THE



   00966'01                                  10

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      STATE HIS OR HER INTEREST IN THAT PROPERTY AND CASUALTY INSURANCE

 2
      IN AN AMOUNT EQUAL TO THE TOTAL AMOUNT OF ALL SPECIAL ASSESSMENTS

 3
      AND PROPERTY TAXES DEFERRED.

 4
           Sec. 6.  The department shall pay the entire balance owing,

 5
      including delinquent amounts, of the special assessment OR PROP-

 6
      ERTY TAX of an applicant who qualifies under this act.  The

 7
      department shall transmit to the collecting officer the sum of

 8
      money required to indemnify the local special assessment district

 9
      OR LOCAL TAX COLLECTING UNIT for a revenue loss resulting from

10
      the deferment of the special assessment OR PROPERTY TAX.  At the

11
      same time, the department shall  cause the recording of  RECORD a

12
      lien in favor of the state with the register of deeds OF THE

13
      COUNTY IN WHICH THE HOMESTEAD IS LOCATED and notify the county

14
      treasurer OF THE COUNTY IN WHICH THE HOMESTEAD IS LOCATED of the

15
      special assessment OR PROPERTY TAXES deferred, indicating the

16
      amount deferred for PROPERTY TAXES AND FOR each special assess-

17
      ment and identifying the homestead.   The  IF PAYMENT IS MADE AS

18
      REQUIRED BY THIS SECTION, THE county treasurer shall keep a

19
      record of the notice and shall require that the homestead be

20
      included in the subsequent return of delinquent taxes by each

21
      collecting officer, that the property is identified on the delin-

22
      quent roll as provided in this act, and that the amount of spe-

23
      cial assessment OR PROPERTY TAXES shown on the roll as due and

24
      unpaid are the same as the amount approved by the department for

25
      deferment.  The sum received by the collecting officer from the

26
      department shall be distributed  to the several special

27
      assessment districts in direct proportion to their respective



   00966'01                                  11

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      shares of the total of special assessments deferred  in the same

 2
      manner that distribution would be made had the same amount been

 3
      received from the payment of the special assessments OR PROPERTY

 4
      TAXES.   The  IF PAYMENT IS MADE AS REQUIRED BY THIS SECTION, THE

 5
      collecting officer shall enter on the current tax roll opposite

 6
      each homestead for which deferment is allowed a notation that

 7
      payment is deferred pursuant to this act.

 8
           Sec. 7.  The treasurer of  any  A city, township, or vil-

 9
      lage, required by  Act No. 206 of the Public Acts of 1893, as

10
      amended, being sections 211.1 to 211.157 of the Michigan Compiled

11
      Laws  THE GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.1 TO

12
      211.157, to make a return of delinquent taxes to the county trea-

13
      surer, shall include in the delinquent tax roll all homesteads

14
      for which deferment of special assessments  are  OR PROPERTY

15
      TAXES IS approved, and shall enter on the delinquent tax roll

16
      opposite each  such item  SPECIAL ASSESSMENT OR PROPERTY TAX LEVY

17
      a notation that payment is deferred  pursuant to  UNDER this

18
      act.  In a city collecting its own delinquent taxes, the trea-

19
      surer  similarly  shall note on the city tax record of each

20
       such  property FOR WHICH SPECIAL ASSESSMENTS OR PROPERTY TAXES

21
      ARE DEFERRED that payment is deferred  pursuant to  UNDER this

22
      act.  The collection of special assessments OR PROPERTY TAXES

23
      deferred  for all such homesteads  UNDER THIS ACT shall be made

24
       thereafter only  in accordance with this act, any law, ordi-

25
      nance, or charter to the contrary notwithstanding.

26
           Sec. 8.  Upon termination of the deferment of special

27
      assessments OR PROPERTY TAXES under this act, the collection



   00966'01                                  12

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      procedures of  Act No. 206 of the Public Acts of 1893, as

 2
      amended  THE GENERAL PROPERTY TAX ACT, 1893 PA 206, MCL 211.1 TO

 3
      211.157, and any provisions of any law, ordinance, or charter

 4
      applicable to the collection of delinquent taxes in a city col-

 5
      lecting its own delinquent taxes, suspended  by the terms of

 6
      UNDER this act during the period of deferment, shall again apply

 7
      to the deferred special assessments  the same as they would have

 8
      applied had no  OR PROPERTY TAXES AS IF A deferment HAD NOT been

 9
      authorized and all of the special assessments OR PROPERTY TAXES

10
      had been levied initially in the third year preceding the calen-

11
      dar year in which the deferment was terminated, except that the

12
      provisions of those laws, ordinances, and charters with respect

13
      to collection fees, interest, penalties, and other charges shall

14
      not be applicable to the collection of, or foreclosure of the

15
      lien for special assessments OR PROPERTY TAXES deferred.

16
       hereunder.  The lien for deferred special assessments OR PROP-

17
      ERTY TAXES shall be for the amount of the special assessments OR

18
      PROPERTY TAXES only and shall not have any additional fee, penal-

19
      ty, or interest added except as provided in this act.

20
           Sec. 8a.  (1) Except for an owner or owner's estate qualify-

21
      ing for deferment of special assessments under this act before

22
      January 8, 1981, the payment of special assessments OR PROPERTY

23
      TAXES deferred under this act made by the owner or owner's estate

24
      shall include interest computed for periods after January 8,

25
      1981, at a rate of 1/2 of 1% per month or fraction of a month.







   00966'01                                  13

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           (2) The department shall notify each owner whose special

 2
      assessments OR PROPERTY TAXES are authorized to be deferred under

 3
      this act of the interest rate provided in this section.

 4
           (3) The lien created in section 6 for special assessments OR

 5
      PROPERTY TAXES deferred under this act shall include  an amount

 6
      of  interest as provided in this section.

 7
           (4) The department of treasury shall refund to each owner

 8
      who, before  the effective date of this subsection  JANUARY 8,

 9
      1981, paid their special assessment OR PROPERTY TAXES and was

10
      subject to the interest payment of subsection (1), an amount

11
      equal to the difference between the interest paid and the inter-

12
      est  which  THAT would have been due at a rate of 1/2 of 1% per

13
      month or fraction of a month.

14
           (5) If a deferment of a special assessment was terminated by

15
      an owner solely by payment of the deferred special assessment

16
      after January 8, 1981, and before  the effective date of this

17
      subsection  JUNE 4, 1981, the owner may reapply within 60 days of

18
      the effective date of this subsection to the local assessing

19
      officer for reinstitution of the previously deferred special

20
      assessment and the department of treasury shall refund the amount

21
      of the special assessment paid and redeferred to the owner.

22
           Sec. 9.  Upon receipt of payment of special assessments OR

23
      PROPERTY TAXES deferred under this act, the collecting officer

24
      shall  forthwith  transmit the amount received to the department

25
      as reimbursement for the sums  theretofore  advanced  ,  to

26
      indemnify the local special assessment districts OR LOCAL TAX

27
      COLLECTING UNIT.



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           Sec. 10.  (1) There is created a special revolving fund

 2
      within the department to pay special assessments AND PROPERTY

 3
      TAXES under this act and the sum of $3,000,000.00 of the princi-

 4
      pal of the Michigan veterans' trust fund shall be used for this

 5
      investment purpose.

 6
           (2) An amount  which  THAT is paid by the department to a

 7
      local assessment district OR LOCAL TAX COLLECTING UNIT for a

 8
      deferred special assessment OR DEFERRED PROPERTY TAXES shall be

 9
      paid from the special revolving fund created in subsection (1).

10
           (3) From the amounts received by the department as payment

11
      for deferred special assessments OR PROPERTY TAXES under this

12
      act, the department shall credit, on a quarterly basis, 1/2 of

13
      the total amount received to the special revolving fund created

14
      in this section, and shall transmit the remainder of this quar-

15
      terly payment to the Michigan veterans' trust fund UNTIL THE INI-

16
      TIAL $3,000,000.00 SET FORTH IN SUBSECTION (1) IS REPAID TO THE

17
      MICHIGAN VETERANS' TRUST FUND.

18
           (4) AFTER THE INITIAL $3,000,000.00 SET FORTH IN

19
      SUBSECTION (1) IS REPAID TO THE MICHIGAN VETERANS' TRUST FUND,

20
      THE DEPARTMENT SHALL CREDIT, ON A QUARTERLY BASIS, THE TOTAL

21
      AMOUNT RECEIVED TO THE SPECIAL REVOLVING FUND CREATED IN THIS

22
      SECTION.

23
           (5)  (4)  Interest received pursuant to section 8a, and

24
      civil penalties received pursuant to section 2, shall be credited

25
      in full to the special revolving fund created in this section.

26
           (6)  (5)  Amounts required to be transmitted to the Michigan

27
      veterans' trust fund under subsection (3) shall be reduced by the



   00966'01                                  15

 1
      amount of principal and earnings  which was  returned to the

 2
      Michigan veterans' trust fund before  the effective date of this

 3
      subsection  JANUARY 8, 1981.


















































   00966'01          Final page.                            FDD