SB-1324, As Passed Senate, July 1, 2010

SUBSTITUTE FOR

SENATE BILL NO. 1324

A bill to provide for the procedure for allocation,

reallocation, and waiver of federal bond limitations under certain

bond programs; and to prescribe certain powers and duties of

certain state agencies and public officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. Unless prohibited by applicable federal law, the state

treasurer shall allocate and reallocate any federal law bond

limitation allocated, reallocated, or waived to the state of

Michigan for any of the following in accordance with the federal

law establishing the bond limitation:

(a) Qualified school construction bonds.

(b) Recovery zone economic development bonds.

(d) Qualified energy conservation bonds.

Sec. 2. (1) Except as otherwise provided in this section,

unless prohibited by applicable federal law, the state treasurer

may provide for the waiver, deemed waiver, or reallocation to the

state of Michigan of any federal bond limitations specified in

section 1 allocated to projects, municipalities, or other entities

within this state. The state treasurer shall not consider any

federal bond limitation specified in section 1 a deemed waiver

before September 1, 2010.

(2) Subject to subsections (3) and (8), beginning September 1,

2010, the state treasurer may consider up to 2/3 of any bond

limitation specified in section 1(a), (b), or (c) a deemed waiver

unless the municipality or other entity that was allocated the bond

limitation does all of the following:

(a) The municipality or other entity adopts a resolution

describing the project and indicating the intent to issue bonds for

the project.

(b) The municipality or other entity provides communications

from a third party nationally recognized bond counsel attesting to

the eligibility of the project.

communications from a third party that is responsible for payment

of the bonds.

(3) Except as otherwise provided in subsection (8), if the

final deadline for issuing bonds is extended by federal law enacted

after the effective date of this act, then the state treasurer

shall not consider any federal bond limitation specified under

section 1(a) and (b) for which the deadline has been extended a

deemed waiver prior to 180 days prior to the last day provided for

issuing those bonds and may consider up to 2/3 of any federal bond

limitation specified in section 1(a) and (b) a deemed waiver after

180 days prior to the deadline for issuing those bonds unless the

municipality or other entity that was allocated the bond limitation

does all of the following:

(a) The municipality or other entity adopts a resolution

describing the project and indicating the intent to issue bonds for

the project.

(b) The municipality or other entity provides communications

from a third party nationally recognized bond counsel attesting to

the eligibility of the project.

communications from a third party that is responsible for payment

of the bonds.

(4) Subject to subsection (7), if a deemed waiver has occurred

under subsection (1) prior to the enactment of any federal law to

which the provisions of this section would otherwise apply, any

deemed waiver amounts that have not been reallocated shall be

returned to the municipality or other entity and the provisions of

subsections (3), (5), and (6) shall apply to the reallocated

amounts.

(5) A municipality or other entity to which a deemed waiver

applies may obtain a reallocation of the amount deemed waived if it

subsequently demonstrates a viable project to the state treasurer

and the amount deemed waived remains available for allocation.

(6) The state treasurer shall make an effort to reallocate

bond limitations that have been waived voluntarily before

reallocating bond limitations that have been deemed waived under

subsections (2) and (3).

(7) Except as otherwise provided in subsection (8), once a

recovery zone facility bond limitation allocation has been deemed

waived, regardless of whether the federal law establishing that

bond limitation is extended, the state treasurer shall reallocate

that bond limitation under this act.

(8) Notwithstanding any other provision of this section, if

federal law provides that a municipality shall be treated as having

waived any portion of an allocation made for bonds described under

section 1(b) or (c) that has not been allocated to bonds issued

before a date other than the date or dates specified in this

section, then the state treasurer may reallocate those bond

limitations that are treated as having been waived. However, the

provisions of subsections (5) and (6) shall still apply.

Sec. 3. In determining any allocation or reallocation under

this act, the state treasurer shall, to the extent practicable,

give priority to projects within a region in which an original

allocation existed or a remaining allocation exists and which

reflect a consensus or preference among entities to which original

allocations were provided. However, an entity to which an

allocation or reallocation is provided shall not issue bonds

related to an allocation or reallocation for a project that

benefits a person who has been convicted of a felony if the

conviction will have a material impact on the ability of the person

to participate in the project.

Sec. 4. Any allocation or reallocation of bond limitation for

qualified school construction bonds, recovery zone economic

development bonds, recovery zone facility bonds, or qualified

energy conservation bonds made by the Michigan department of

education, the Michigan department of energy, labor, and economic

growth, or the state treasurer prior to the effective date of this

act is hereby ratified and confirmed.

Sec. 5. As used in this act, "municipality or other entity"

means a county, city, school district, or other entity that has

received a federal bond limitation allocation.