June 12, 2007, Introduced by Reps. Vagnozzi, Knollenberg, Alma Smith, Young, Cushingberry, David Law, Hildenbrand, LaJoy, Pearce, Pastor, Hune, Moss, Miller, Ward, Marleau, Calley, Green, DeRoche, Elsenheimer, Pavlov, Hoogendyk, Amos, Moore, Agema, Palsrok, Garfield, Shaffer, Melton, Horn, Dean, Schuitmaker, Rick Jones, Moolenaar, Stahl, Steil, Opsommer, Brandenburg, Stakoe, Booher, Meisner, Wojno, Leland, Tobocman, Hansen, Ball, Nitz, Johnson, Huizenga, Brown, Kathleen Law, Warren, Donigan, Meadows, Bennett, Jackson, Byrnes, LeBlanc, Hammel, Condino, Emmons, Casperson, Clack and Corriveau and referred to the Committee on Government Operations.
A bill to amend 1855 PA 105, entitled
"An act to regulate the disposition of the surplus funds in the
state treasury; to provide for the deposit of surplus funds in
certain financial institutions; to lend surplus funds pursuant to
loan agreements secured by certain commercial, agricultural, or
industrial real and personal property; to authorize the loan of
surplus funds to certain municipalities; to authorize the
participation in certain loan programs; to authorize an
appropriation; and to prescribe the duties of certain state
agencies,"
(MCL 21.141 to 21.147) by adding section 5.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) The state treasurer shall not deposit any surplus
funds belonging to the state in a financial institution with total
assets of more than $10,000,000.00 at the end of its last full
fiscal year unless the financial institution complies with
subsection (3).
(2) Before May 1 each year, the state treasurer shall publish
a list of financial institutions with total assets of more than
$10,000,000.00 at the end of their last full fiscal year that have
failed to comply with subsection (3). A financial institution that
does not appear on that list shall conclusively be presumed to have
complied with subsection (3) and to have filed the required reports
for purposes of determining its eligibility to be a depository of
state funds. Additional funds shall not be deposited in a financial
institution that appears on the list until the state treasurer
certifies that the financial institution has complied with
subsection (3) and has filed the required reports, or until 91 days
after the end of a subsequent year for which the required reports
are filed with the state treasurer, whichever occurs sooner.
(3) To be a depository of surplus funds belonging to this
state, a financial institution shall not knowingly make or maintain
a loan to a terrorist state, a national corporation of a terrorist
state, or a subsidiary or affiliate of a United States firm
operating in a terrorist state. A financial institution shall be
considered to have complied with this subsection if the financial
institution has filed with the state treasurer an affidavit
attesting to the fact that it has after July 1, 2007 no existing
loans to a terrorist state, a national corporation of a terrorist
state, or a subsidiary or affiliate of a United States firm
operating in a terrorist state, as determined by the state
treasurer.
(4) As used in this subsection:
(a) "National corporation" means a corporation, or a
subsidiary of affiliate of a corporation, that is more than 50%
owned or operated by the government of a terrorist state.
(b) "Subsidiary or affiliate of a United States firm operating
in a terrorist state" means, as determined by the state treasurer,
a firm incorporated under the laws of a terrorist state, domiciled
in a terrorist state, and controlled by a United States firm. A
subsidiary or affiliate shall not be construed to mean a subsidiary
or affiliate that is located in the United States.
(c) "Surplus funds" means, at any given date, the excess of
cash and other recognized assets, that are expected to be resolved
into cash or its equivalent in the natural course of events and
with a reasonable certainty, over the liabilities and necessary
reserves at the same date. Surplus funds do not include the
proceeds of bond and note issues that are deposited for a period of
not more than 10 days in a financial institution for settlement
purposes.
(d) "Terrorist state" means all of the following:
(i) The Islamic republic of Iran.
(ii) The democratic people's republic of Korea.
(iii) The Sudan that includes the government in Khartoum, Sudan,
which is led by the national congress party or a successor
government formed on or after October 13, 2006 and does not include
the regional government of southern Sudan.
(iv) The Syrian Arab republic.