SENATE BILL No. 840

November 29, 2001, Introduced by Senator EMERSON and referred to the Committee on

Finance.

A bill to amend 1971 PA 140, entitled

"Glenn Steil state revenue sharing act of 1971,"

by amending section 17a (MCL 141.917a), as amended by 1987 PA

283.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 17a. (1) To the extent required by the emergency

2 municipal loan act, Act No. 243 of the Public Acts of 1980,

3 being sections 141.931 to 141.942 of the Michigan Compiled Laws

4 1980 PA 243, MCL 141.931 TO 141.942, a municipality granted a

5 loan pursuant to the emergency municipal loan act, Act No. 243

6 of the Public Acts of 1980 1980 PA 243, MCL 141.931 TO 141.942,

7 shall have withheld from any payment the city, village, township,

8 or county is eligible to receive, an amount equivalent to any

9 delinquent payments due on the loan.

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1 (2) The state treasurer may withhold all or part of any

2 payment that a city, village, township, or county is eligible to

3 receive under this act to the extent the withholdings are a com-

4 ponent part of a plan, developed and implemented pursuant to

5 chapter IX of the municipal finance act, Act No. 202 of the

6 Public Acts of 1943, being sections 139.1 to 139.3 of the

7 Michigan Compiled Laws UNDER THE REVISED MUNICIPAL FINANCE ACT,

8 2001 PA 34, MCL 141.2101 TO 141.2821, for financing an outstand-

9 ing obligation upon which the municipality defaulted. Amounts

10 withheld shall be used to pay, on behalf of the city, village,

11 township, or county, unpaid amounts or subsequently due amounts,

12 or both, of principal and interest on the outstanding obligation

13 upon which the city, village, township, or county defaulted.

14 (3) The state treasurer may withhold all or part of any pay-

15 ment that a city or village is eligible to receive under this

16 act, after payment of all money owing to the city or village

17 under this act which THAT, prior to the date of a withholding

18 under this subsection, has been pledged for the payment of debt

19 service on bonds or notes or for the payment of contractual obli-

20 gations pledged for the payment of debt service on bonds or

21 notes, in an amount necessary to repay loans made to the city or

22 village pursuant to UNDER section 11(6) of Act No. 51 of the

23 Public Acts of 1951, being section 247.661 of the Michigan

24 Compiled Laws 1951 PA 51, MCL 247.661, after any deduction

25 authorized by section 11(8) of Act No. 51 of the Public Acts of

26 1951 1951 PA 51, MCL 247.661, has been applied for the repayment

27 of the loan.

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1 (4) Under an agreement entered into by a city, village,

2 township, or county assigning all or a portion of the payment

3 that it is eligible to receive under this act to the Michigan

4 municipal bond authority or pledging that amount for payment of

5 an obligation it incurred with the Michigan municipal bond

6 authority, the state treasurer shall transmit to the Michigan

7 municipal bond authority or a trustee designated by the authority

8 the amount of the payment which THAT is assigned or pledged

9 under the agreement. Notwithstanding the payment dates pre-

10 scribed by this act for distributions under this act, the state

11 treasurer may advance all or part of a payment which THAT is

12 dedicated for distribution or for which the appropriation autho-

13 rizing the payment has been made if and to the extent, under the

14 terms of an agreement entered into by a city, village, township,

15 or county and the Michigan municipal bond authority, the payment

16 which THAT the city, village, township, or county is eligible

17 to receive has been assigned to or pledged for payment of an

18 obligation it incurred with the Michigan municipal bond

19 authority. This subsection does not require the state to make an

20 appropriation to any city, village, county, or township and shall

21 not be construed as creating an indebtedness of the state. Any

22 agreement made pursuant to this subsection shall contain a state-

23 ment to that effect.

24 (5) The state treasurer shall withhold all or part of a pay-

25 ment that a city, village, township, or county is eligible to

26 receive under this act to satisfy a payment due and owing to the

27 state or to a state department or agency from the city, village,

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1 township, or county unless and to the extent subsection (4)

2 requires otherwise or unless the city, village, township, or

3 county has pledged payments under this act for payment on an

4 obligation issued by the municipality. as approved by the state

5 treasurer.

6 (6) BONDS AND NOTES ISSUED UNDER THIS ACT ARE SUBJECT TO THE

7 REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

8 141.2821.

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