April 21, 2005, Introduced by Senators LELAND, THOMAS, CLARK-COLEMAN, JACOBS, PRUSI, OLSHOVE, BRATER, BARCIA, SCHAUER, BASHAM and BERNERO and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending section 17a (MCL 388.1617a), as amended by 2002 PA 71.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 17a. (1) The department may withhold all or part of any
payment that a district or intermediate district is entitled to
receive under this act to the extent the withholdings are a
component part of a plan, developed and implemented pursuant to the
revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821, or other statutory authority, for financing an
outstanding obligation upon which the district or intermediate
district defaulted. Amounts withheld shall be used to pay, on
behalf of the district or intermediate district, unpaid amounts or
subsequently due amounts, or both, of principal and interest on the
outstanding obligation upon which the district or intermediate
district defaulted.
(2) The state treasurer may withhold all or part of any
payment that a district or intermediate district is entitled to
receive under this act to the extent authorized or required under
section 16 of the school bond qualification, approval, and loan
act.
(3)
(2) Under
an agreement entered into by a district or
intermediate district assigning all or a portion of the payment
that it is eligible to receive under this act to the Michigan
municipal bond authority or to the trustee of a pooled arrangement
or pledging the amount for payment of an obligation it incurred
with the Michigan municipal bond authority or with the trustee of a
pooled arrangement, the state treasurer shall transmit to the
Michigan municipal bond authority or a trustee designated by the
authority or to the trustee of a pooled arrangement the amount of
the payment that is assigned or pledged under the agreement.
Notwithstanding the payment dates prescribed by this act for
distributions under this act, the state treasurer may advance all
or part of a payment that is dedicated for distribution or for
which the appropriation authorizing the payment has been made if
and to the extent, under the terms of an agreement entered into by
a district or intermediate district and the Michigan municipal bond
authority, the payment that the district or intermediate district
is eligible to receive has been assigned to or pledged for payment
of an obligation it incurred with the Michigan municipal bond
authority. This subsection does not require the state to make an
appropriation to any school district or intermediate school
district and shall not be construed as creating an indebtedness of
the state, and any agreement made pursuant to this subsection shall
contain a statement to that effect. As used in this subsection,
"trustee of a pooled arrangement" means the trustee of a trust
approved by the state treasurer and, subject to the conditions and
requirements of that approval, established for the purpose of
offering for sale, as part of a pooled arrangement, certificates
representing undivided interests in notes issued by districts or
intermediate districts under section 1225 of the revised school
code, 1976 PA 451, MCL 380.1225. If a trustee applies to the state
treasurer for approval of a trust for the purposes of this
subsection, the state treasurer shall approve or disapprove the
trust within 10 days after receipt of the application.
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.
(c) Senate Bill No. 409.
(d) Senate Bill No. 411.
(e) Senate Bill No. 408.