March 24, 2005, Introduced by Reps. Stakoe, Stahl, Robertson, Taub, Palsrok, Pastor, Garfield, Brandenburg, Meyer, Jones, Green, Ward, Baxter, Marleau, Caswell, Gosselin, Vander Veen, Gaffney, Hopgood, Accavitti, Tobocman, Acciavatti, Schuitmaker, Shaffer, Amos, Moolenaar, LaJoy, Nitz and Drolet and referred to the Committee on Local Government and Urban Policy.
A bill to amend 1985 PA 227, entitled
"Shared credit rating act,"
(MCL 141.1051 to 141.1076) by adding section 16c.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 16c. (1) The wastewater application grant fund is created
within the state treasury.
(2) The state treasurer may receive money of other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments. The
authority shall act as fiscal agent for the fund.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The authority, in consultation with the department, shall
expend money from the fund, upon appropriation, only for grants to
governmental units to cover the total cost of engineering and
professional consulting when developing the project plan in
applying for loan assistance from the state water pollution control
revolving fund. Grant funds shall not be used for public notice
activities, general local government administration costs, or costs
associated with public education of the proposed project. A
governmental unit shall not receive more than an accumulated total
of more than $3,000,000.00 in grants under this section.
(5) The department shall establish an application and review
process for considering grant applications under this section. The
application shall contain the information required by the
department. Within 60 days after receipt of an administratively
complete grant application, the department shall notify the
applicant whether the application is approved or rejected. If the
application is rejected, the department shall, in writing, notify
the applicant of the reasons why the application was rejected.
(6) If the department approves a grant under this section, the
department shall enter into a grant agreement with the grant
recipient prior to releasing the grant. The grant agreement shall
contain terms approved by the department and a requirement that the
grant recipient repay the grant, with interest at a rate not to
exceed 8% per year, to the authority if any of the following occur:
(a) If the grant recipient fails to submit an administratively
complete loan application for assistance from the state water
pollution control revolving fund within 12 months after a grant is
issued.
(b) If the grant recipient does not use funding from the state
water pollution control revolving fund for the project after
receiving approval for a loan from the state water pollution
control revolving fund.
(c) If the grant recipient obtains a loan from the state water
pollution control revolving fund, but fails to make substantial
progress toward implementing the project for which the loan was
issued within 18 months after the issuance of the loan.
(7) If an applicant's administratively complete application
for a loan from the state water pollution control revolving fund is
rejected, the grant recipient is not required to repay the grant.
(8) As used in this section:
(a) "Fund" means the wastewater grant fund created in
subsection (1).
(b) "State water pollution control revolving fund" means the
state water pollution control revolving fund established in section
16a.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4573(request no.
02060'05) of the 93rd Legislature is enacted into law.