March 31, 2009, Introduced by Reps. Booher, Horn, Caul, Wayne Schmidt, Calley, Hansen, Lahti and Kowall and referred to the Committee on Intergovernmental and Regional Affairs.
A bill to amend 1913 PA 380, entitled
"An act to regulate gifts of real and personal property to cities,
villages, townships, and counties, and the use of those gifts and
other funds; and to validate all gifts made before the enactment of
this act,"
by amending section 2 (MCL 123.872), as amended by 2003 PA 122.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) To provide a means and method to encourage and
assist businesses in locating and expanding in this state, and if
not prohibited by the terms of the grant or loan, a city, village,
township, or county may receive and use a federal, state, or local
grant or loan or the proceeds of a federal, state, or local grant
or loan to make a secured or unsecured loan or to make a grant to a
private person, to a corporation or other business association, to
a city, village, township, or county, or to an instrumentality of a
city, village, township, or county. A county may grant or loan
funds to a township, village, or city located within that county
for the purpose of encouraging and assisting businesses to locate
and expand within the county. A grant or loan under this subsection
shall not be derived from ad valorem taxes except for ad valorem
taxes approved by a vote of the people for economic development.
The county shall establish an application process for proposals to
receive a grant or loan under this subsection. The awarding of a
grant or loan under this subsection shall be made at a public
hearing of the county board of commissioners. The grant or loan
contract made by a county shall require a report to the county
board of commissioners regarding the activities of the recipient
and the degree to which the recipient has met the stated public
purpose of the funding.
(2) A loan or grant made under subsection (1) may be used for
local public improvements or to encourage and assist businesses in
locating or expanding in this state, to preserve jobs in this
state, to encourage investment in the communities in this state, or
for other public purposes.
(3) The right to repayment of a loan made under subsection (1)
may be assigned by a city, village, township, or county to an
entity, agency, or authority created pursuant to law, or to a
private corporation or association created to make and administer
loans made under subsection (1).
(4) A city, village, township, or county may receive loans
under subsection (1) and issue loan revenue bonds or notes secured
by the repayment of loans made under subsection (1). For the
purposes specified in subsection (2), bonds or notes issued
pursuant to this section shall be approved by the department of
treasury before their issuance, but shall not otherwise be subject
to the provisions of the revised municipal finance act, 2001 PA 34,
MCL 141.2101 to 141.2821. In determining whether the issuance of
the bonds or notes shall be approved, the department of treasury
shall take into consideration the following:
(a) Whether the bonds or notes conform to the provisions of
law.
(b) Whether the probable revenue and properties pledged for
payment of the bonds or notes will be sufficient to pay the
principal of and interest on the bonds or notes when due.
(c) Whether the amount of the proposed issue is sufficient or
excessive for the purpose for which the bonds or notes are to be
issued.
(5) The loan revenue bonds or notes shall not be general
obligations of the city, village, township, or county issuing the
loan revenue bonds or notes. The loan revenue bonds or notes are
declared to be issued for an essential public and governmental
purpose, and, together with interest on those bonds or notes and
income from those bonds or notes, shall be exempted from all taxes.
(6) A city, village, township, or county receiving a federal
loan may enter into an agreement with the federal government or an
agency of the federal government respecting the repayment of
principal and interest on the federal loan.