SB-0408, As Passed House, June 29, 2005S

SENATE BILL No. 408

April 21, 2005, Introduced by Senators CLARKE, CLARK-COLEMAN, CHERRY and PRUSI and referred to the Committee on Appropriations.

A bill to amend 1961 PA 112, entitled

"An act to authorize and provide for the issuance, sale, and

refunding of bonds, notes, or commercial paper of the state; to

provide funds for making loans to school districts for payment of

principal and interest on certain school bonds; to provide for use

of moneys repaid to the state by school districts; and to make an

appropriation,"

by amending sections 2 and 4 (MCL 388.982 and 388.984), section 2

as amended by 2000 PA 245 and section 4 as amended by 1991 PA 64.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. The proceeds of sale of refunding bonds, notes, or

commercial paper issued under this act shall be applied as

determined by the state administrative board. The proceeds of sale

of other bonds, notes, or commercial paper issued under this act

shall be deposited in ~~a separate fund in the state treasury to be~~

~~known as "the school bond loan fund"~~ the school loan revolving

fund created in section 16c of the shared credit rating act, 1985

Senate Bill No. 408 as amended June 7, 2005

PA 227, MCL 141.1066c, and shall be paid out in no other manner or

for any other purpose than provided in section 16 of article IX of

the state constitution of 1963 and laws enacted pursuant to that

section.

Sec. 4. Any money repaid by school districts on loans made

from the school ~~bond~~ loan revolving fund created in section 16c

of the shared credit rating act, 1985 PA 227, MCL 141.1066c, shall

be deposited in the ~~general~~ school loan revolving fund. Unless

amounts on deposit in the school loan revolving fund are

insufficient for the purpose of making loans to school districts,

the state treasurer may satisfy the requirements of section 16 of

article IX of the state constitution of 1963 and laws enacted

pursuant to that section by causing loans to be made from the

school loan revolving fund. The state treasurer may assign

repayments on loans previously made from the school bond loan fund

before the effective date of the amendatory act amending this

section to require the deposit of proceeds of sale to the school

loan revolving fund.

<<Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

(a) Senate Bill No. 406.

(b) Senate Bill No. 407.