May 12, 2010, Introduced by Senator STAMAS and referred to the Committee on Appropriations.
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 before January 1, 2011 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.
(c) Recovery zone facility 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 July 1, 2010.
(2) Subject to subsection (4), beginning July 1, 2010, the
state treasurer may consider any bond limitation specified in
section 1 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 viability of the project.
(c) If applicable, the municipality or other entity provides
communications from a third party that is responsible for payment
of the bonds.
(3) Subject to subsection (5), beginning September 1, 2010,
the state treasurer may consider any bond limitation specified in
section 1 a deemed waiver if the municipality or other entity that
was allocated the bond limitation has not issued the bonds and
other municipalities or other entities have need for additional
bond limitation authority.
(4) 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) a deemed waiver prior to 180
days prior to the last day provided for issuing those bonds and may
consider 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 viability of the project.
(c) If applicable, the municipality or other entity provides
communications from a third party that is responsible for payment
of the bonds.
(5) If the final deadline for issuing bonds is extended by
federal law enacted after the effective date of this act, then the
state treasurer may consider any federal bond limitation specified
in section 1(a) and (b) a deemed waiver after 120 days prior to the
deadline for issuing those bonds if the municipality or other
entity that was allocated the bond limitation has not issued the
bonds and other municipalities or other entities have need for
additional bond limitation authority.
(6) Subject to subsection (9), 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 (4), (5), (7), and (8) shall apply to the reallocated
amounts.
(7) 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.
(8) The state treasurer shall make an effort to reallocate
bond limitations that have been waived voluntarily or have been
deemed waived for failing to comply with the provisions of
subsections (2) and (4) before reallocating bond limitations that
have been deemed waived under subsections (3) and (5).
(9) 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.
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 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, or recovery zone facility 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.