SENATE BILL No. 1179

March 5, 2002, Introduced by Senator PETERS and referred to the Committee on Finance.

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending section 19603 (MCL 324.19603), as added by 1998 PA

288.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 19603. (1) The bonds shall be issued in 1 or more

2 series, each series to be in a principal amount, to be dated, to

3 have the maturities which THAT may be either serial, term, or

4 both, to bear interest at a rate or rates, to be subject or not

5 subject to prior redemption, and if subject to prior redemption

6 with or without call premiums, to be payable at a place or

7 places, to have or not have provisions for registration as to

8 principal only or as to both principal and interest, to be in a

9 form and to be executed in a manner as shall be determined by

10 resolution to be adopted by the state administrative board and

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1 subject to or granting those covenants, directions,

2 restrictions, or rights specified by resolution to be adopted by

3 the state administrative board as necessary to ensure the market-

4 ability, insurability, or tax exempt status of the bonds. The

5 state administrative board shall rotate the services of legal

6 counsel when issuing bonds.

7 (2) The state administrative board may refund bonds issued

8 under this part by the issuance of new bonds, whether or not the

9 bonds to be refunded have matured or are subject to prior

10 redemption. The state administrative board may issue bonds

11 partly to refund bonds issued under this part and partly for any

12 other purpose provided by this part. The principal amount of any

13 refunding bonds issued pursuant to UNDER this section shall not

14 be counted against the limitation on principal amount provided in

15 the clean Michigan initiative act, 1998 PA 284, MCL 324.95101 TO

16 324.95108. Further, refunding bonds issued pursuant to UNDER

17 this section are not subject to the restrictions of

18 section 19607.

19 (3) The state administrative board may approve insurance

20 contracts, agreements for lines of credit, letters of credit,

21 commitments to purchase bonds, and any other transaction to pro-

22 vide security to assure timely payment or purchase of any bond

23 issued under this part.

24 (4) The state administrative board may authorize the state

25 treasurer, but only within limitations contained in the authoriz-

26 ing resolution of the board, to do 1 or more of the following:

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1 (a) Sell and deliver and receive payment for the bonds.

2 (b) Deliver bonds partly to refund bonds and partly for

3 other authorized purposes.

4 (c) Select which outstanding bonds will be refunded, if any,

5 by the new issue of bonds.

6 (d) Buy issued bonds at not more than their face value.

7 (e) Approve interest rates or methods for fixing interest

8 rates, prices, discounts, maturities, principal amounts, purchase

9 prices, purchase dates, remarketing dates, denominations, dates

10 of issuance, interest payment dates, redemption rights at the

11 option of the state or the owner, the place and time of delivery

12 and payment, and other matters and procedures necessary to com-

13 plete the authorized transactions.

14 (f) Execute, deliver, and pay the cost of remarketing agree-

15 ments, insurance contracts, agreements for lines of credit, let-

16 ters of credit, commitments to purchase bonds or notes, and any

17 other transaction to provide security to assure timely payments

18 or purchase of any bond issued under this part.

19 (5) The bonds shall be approved by the department of trea-

20 sury before their issuance but are not otherwise subject to the

21 municipal finance act, 1943 PA 202, MCL 131.1 to 139.3 ARE NOT

22 SUBJECT TO THE REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL

23 141.2101 TO 141.2821.

24 (6) The bonds or any series of the bonds shall be sold at

25 such A price and at a publicly advertised sale as determined

26 by the state administrative board.

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1 (7) The bonds shall be sold in accordance with a schedule

2 established by the state administrative board.

3 (8) THE ISSUANCE OF BONDS UNDER THIS SECTION IS SUBJECT TO

4 THE AGENCY FINANCING REPORTING ACT.

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