HB-5566, As Passed Senate, July 18, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5566

A bill to amend 1980 PA 243, entitled

"Emergency municipal loan act,"

by amending the title and sections 1, 2, 3, 4, 5, 6, and 7 (MCL

141.931, 141.932, 141.933, 141.934, 141.935, 141.936, and 141.937),

the title as amended by 1988 PA 198, section 1 as amended by 2007

PA 178, sections 2, 3, 6, and 7 as amended by 1998 PA 528, and

sections 4 and 5 as amended by 2007 PA 198, and by adding sections

3a and 6a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

An act to provide emergency financial assistance for certain

~~municipalities;~~ political subdivisions of this state; to create a

local emergency financial assistance loan board and to prescribe

the powers and duties of this board; to prescribe conditions for

granting and receiving loans, to prescribe terms and conditions for

the repayment of loans, and to allow the limiting of repayment by a

county from specified revenue sources; to impose certain

requirements and duties on certain state departments,

~~municipalities~~ political subdivisions of this state, and officials

of ~~the~~ this state and ~~municipalities~~ political subdivisions of this

state; and to prescribe remedies and penalties.

Sec. 1. As used in this act:

(a) "Board" means the local emergency financial assistance

loan board created under ~~this act.~~section 2.

(b) "Fiscal year" means, unless otherwise provided in this

act, the fiscal year of the municipality applying for a loan under

this act.

municipality under the city income tax act, 1964 PA 284, MCL

141.501 to 141.787, in any calendar year.

(d) "Income tax revenue growth rate" means the quotient of the

following:

(i) The numerator is the income tax collections of the

municipality for the calendar year immediately preceding the

municipality's application for a loan under this act.

(ii) The denominator is the income tax collections for the

municipality for the calendar year preceding the calendar year used

in determining the numerator.

(e) "Municipality" means a county, city, village, or township

of in this state. For the period beginning on October 1, 2011 and

ending on September 30, 2018, municipality also includes a school

district in this state.

(f) "Local tax base growth rate" for a municipality means the

state equalized valuation of the real and personal property of the

municipality for the most recent year for which data is available

divided by the state equalized valuation of real and personal

property of the municipality for the fifth year preceding the most

recent year for which data is available.

(g) "Statewide tax base growth rate" means the total state

equalized valuation for real and personal property for the most

recent year for which data is available divided by the total state

equalized valuation for the fifth year preceding the most recent

year for which data is available.

(h) "State equalized valuation of real and personal property

of the municipality" means the valuation determined under 1911 PA

44, MCL 209.1 to 209.8, of real and personal property within the

municipality plus an amount equal to the state equalized valuation

equivalent of certain revenues of the municipality as determined

under this subdivision. The state equalized valuation equivalent

shall be calculated by dividing the sum of the following amounts by

the municipality's millage rate for the fiscal year:

(i) The amount levied by the municipality for its own use

during the municipality's fiscal year from the specific tax levied

under 1974 PA 198, MCL 207.551 to 207.572.

(ii) The amount levied by the municipality for its own use

during the municipality's fiscal year from the specific tax levied

under the commercial redevelopment act, 1978 PA 255, MCL 207.651 to

207.668.

Sec. 2. (1) There is created a local emergency financial

assistance loan board within the department of treasury. This board

shall consist of the state treasurer, the director of the

department of ~~consumer and industry services,~~ licensing and

regulatory affairs, and the director of the department of

technology, management, and budget. Except for budgeting,

procurement, and related functions of the board that shall be

performed under the direction and supervision of the state

treasurer, the board shall exercise its prescribed statutory

powers, duties, and functions independently of the department of

treasury.

(2) The board has the powers necessary to carry out and

effectuate the purposes and provisions of this act, and powers

vested in the board under other laws of this state, including, but

not limited to, all of the following powers:

(a) To act by an order issued in the name of the board and

signed by the members of the board. The signature of the designee

of a member, when the designee is acting for his or her principal,

has the same force and effect as the signature of the member.

(b) To authorize and make loans; to renegotiate the terms of

outstanding loans; and to make, execute, and deliver contracts and

other instruments necessary or convenient to the exercise of its

powers.

respect to fiscal questions arising from and relating to its

proposed or outstanding loans.

(d) To promulgate rules under the administrative procedures

act of 1969, 1969 PA 306, MCL 24.201 to 24.328, that it considers

necessary.

(e) To examine the books and records of a municipality

applying for or receiving a loan under this act for the purpose of

ascertaining if the municipality is complying, in relation to a

loan under this act, with the requirements of the board, the laws

of this state, and the charter, ordinances, and resolutions of the

municipality. Additionally, for effectuating this purpose, the

board may require sworn statements from any officer or employee of

the municipality and may require the municipality to furnish a

statement of its financial condition. The board has full power, in

furtherance of its investigations, to examine witnesses on oath, to

compel the attendance of witnesses, to compel the giving of

testimony, and to compel the production of books, papers, and

records. Witnesses may be summoned by the board by its process upon

the payment of the same fees as are allowed to witnesses attending

in the circuit court for the county in which a hearing is held. A

person duly subpoenaed under this section who fails to attend or

testify at the place named in the subpoena served for that purpose

is guilty of a misdemeanor.

(f) To serve notice upon a municipality of an order relating

to the municipality issued by the board. A municipality has prima

facie notice of and is bound by an order of the board if notice has

been served upon it by registered mail addressed to any officer of

the municipality upon whom legal process may be served.

(g) To enforce compliance with its orders; with the terms of

outstanding loans; with any provision of this act; or, in relation

to a loan under this act, with any law of this state or with the

charter, ordinances, or resolutions of a municipality that received

a loan under this act. As 1 method to enforce compliance, the board

may institute appropriate proceedings in the courts of this state,

including proceedings for writs of mandamus and injunctions.

(h) To subject a loan to the terms and conditions the board

considers necessary to ensure compliance with the uniform budgeting

and accounting act, 1968 PA 2, MCL 141.421 to 141.440a, and to

ensure timely repayment of the loan, including, but not limited to,

requiring the direct assignment for repayment of a loan of any

state money appropriated to the municipality or, for a municipality

that is a school district, other revenue or money that may be

pledged by a school district under section 1211 of the revised

school code, 1976 PA 451, MCL 380.1211, or other law.

(i) To provide loan terms specifying conditions and events of

default and remedies available upon default by a municipality.

(j) To impose loan terms upon the disbursement of a loan

authorized to be made under section 3(2)(b) or (3).

(3) The board shall review each application for a loan from a

municipality to determine if the municipality satisfies the

requirements of this act. Except for loans authorized under section

3(2) or (3), upon determining those applications that satisfy the

application eligibility requirements of section 4 and, for

subsequent annual loans, section 8, the board may authorize an

annual loan to 1 or more of those eligible applicants upon

declaring that a local fiscal emergency exists in the municipality.

For loans authorized under section 3(2) or (3), the board may

authorize a loan upon determining that the municipality has

satisfied the requirements of this act applicable to loans under

section 3(2) or (3).

(4) All actions of the board shall be approved by all members

of the board. All meetings of the board shall be conducted at a

public meeting held in compliance with the open meetings act, 1976

PA 267, MCL 15.261 to 15.275.

(5) Subject to the requirements of this act, the board has the

sole authority to determine all of the following:

(a) The amount of a loan.

(b) The rate or rates of interest on a loan.

limited to, requiring that the proceeds of a loan be used for

specified purposes.

(6) The department of treasury shall provide staff services to

the board to carry out this act.

(7) A municipality may do 1 or more of the following:

(a) Borrow money under this act, and issue evidences of

indebtedness for repayment of obligations, including, but not

limited to, money advanced or previously advanced to a school

district or approved or previously approved for advancement to a

school district under section 15(2) of the state school aid act of

1979, 1979 PA 94, MCL 388.1615, or money borrowed by the school

district under section 1225 of the revised school code, 1976 PA

451, MCL 380.1225.

(b) Enter into a loan agreement with the board.

(d) Assign and convey any revenues allocated to it for

repayment of the loan.

(e) Take any other action necessary to receive, secure, or

repay a loan under this act.

Sec. 3. (1) ~~Except as provided in subsection (2)~~ For state

fiscal years ending before October 1, 2011, the board ~~shall not~~ may

authorize loans under this act to municipalities that total an

~~amount greater than~~ up to $5,000,000.00 in a state fiscal year. For

state fiscal years beginning after September 30, 2018, the board

may authorize loans under this act to municipalities that total up

to $10,000,000.00 in a state fiscal year, but a loan to a single

municipality shall not exceed $4,000,000.00 in a state fiscal year.

For the period beginning on October 1, 2011 and ending on September

30, 2018, the board may do all of the following:

(a) Authorize loans to municipalities other than school

districts that total up to $35,000,000.00 during the period. Loans

to a single municipality under this subdivision shall not total

more than $20,000,000.00. The board shall not authorize a loan to a

municipality under this subdivision until 30 days after the

effective date of the amendatory act that added this subdivision.

(b) Authorize loans to municipalities that are school

districts that total up to $50,000,000.00 during the period. Loans

to a single school district under this subdivision shall not total

more than $20,000,000.00.

(2) The board may authorize loans under this act to a county

within the following limitations:

(a) In the 1998-99 state fiscal year, the board may authorize

loans under this act to a county with a population greater than

1,500,000.

(b) For a state fiscal year in which the block grant

appropriated to a county with a population of more than 1,500,000

that is organized under 1966 PA 293, MCL 45.501 to 45.521, and that

is a county juvenile agency is less than the amount required to be

distributed to that county in that year under the social welfare

act, 1939 PA 280, MCL 400.1 to 400.119b, the board may authorize a

loan to that county in an amount not greater than the difference

between the amount of the block grant and the amount required to be

distributed to that county for that fiscal year under the social

welfare act, 1939 PA 280, MCL 400.1 to 400.119b. The board is not

required to authorize loans under this subdivision to a county for

more than 1 state fiscal year.

(3) If in a state fiscal year the block grant appropriated to

a county other than a county described in subsection (2) that is a

county juvenile agency is less than the amount required to be

distributed to that county in that year under the social welfare

act, 1939 PA 280, MCL 400.1 to 400.119b, the board may authorize a

loan to that county in an amount not greater than the difference

between the amount of the block grant and the amount required to be

distributed to that county under the social welfare act, 1939 PA

280, MCL 400.1 to 400.119b, in that state fiscal year.

(4) Sections 6(2), 7, and 8 and the conditions listed in

section 4(1) do not apply to a loan authorized under subsection (2)

or (3).

(5) The proceeds of a loan made under subsection (2) or (3)

shall be maintained in a separate account and shall not be

~~comingled~~ commingled with the county's general fund or any other

special fund or account.

(6) The state treasurer or his or her designee shall monitor

the expenditure of the proceeds of any loan made under subsection

(2) or (3).

(7) The proceeds of a loan made under subsection (2) or (3)

are subject to the requirements of the county juvenile agency act,

1998 PA 518, MCL 45.621 to 45.631.

(8) ~~Revenue~~ Except as otherwise provided in this subsection,

revenue for loans made under this act shall be provided from the

surplus funds of this state under authorization granted under

section 1 of 1855 PA 105, MCL 21.141. Alternatively, for a school

district, revenue for a loan made under this act may be provided

from money advanced to the school district by this state from money

appropriated from the state school aid fund established under

section 11 of article IX of the state constitution of 1963 and

payable to the school district under the state school aid act of

1979, 1979 PA 94, MCL 388.1601 to 388.1896.

(9) After September 30, 2012, the board may restructure

payments, but not the outstanding principal balance or interest, on

a loan to a municipality under subsection (1) if all of the

following apply:

(a) For a municipality that is a school district, in a state

fiscal year after the state fiscal year in which the loan to the

school district was authorized by the board, the foundation

allowance for the school district under the state school aid act of

1979, 1979 PA 94, MCL 388.1601 to 388.1896, is less than the

foundation allowance for the school district in the state fiscal

year in which the loan was authorized.

(b) For a municipality other than a school district, in a

state fiscal year after the state fiscal year in which the loan to

the municipality was authorized by the board, statutory revenue

sharing for the municipality under the Glenn Steil state revenue

sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921, combined

with any economic vitality incentive program money payable to the

municipality is less than the statutory revenue sharing for the

municipality combined with any economic vitality incentive program

money payable to the municipality in the state fiscal year in which

the loan was authorized.

loan and any other requirements applicable to the municipality

under this act.

(d) The municipality is in compliance with any requirements

relating to a deficit elimination plan under state law.

(e) The municipality is in compliance with any applicable

consent agreement or order of an emergency manager under the local

government and school district fiscal accountability act, 2011 PA

4, MCL 141.1501 to 141.1531.

(f) For a municipality that is a school district, the school

district is in compliance with all requirements for receipt of the

foundation allowance and any other requirements applicable to the

school district under the state school aid act of 1979, 1979 PA 94,

MCL 388.1601 to 388.1896.

(g) For a municipality other than a school district, the

municipality is in compliance with all conditions for economic

vitality incentive program money or statutory revenue sharing or

other requirements applicable to the municipality under the Glenn

Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901

to 141.921.

(h) The restructuring of payments complies with applicable

law.

(i) The loan has not been sold or transferred under section

6a.

(10) ~~(9)~~ As used in this section, "county juvenile agency"

means that term as defined in section 2 of the county juvenile

agency act, 1998 PA 518, MCL 45.622.

Sec. 3a. The proceeds of a loan issued under this act to a

municipality shall not be used by the municipality to finance any

costs associated with a special assessment or special assessment

district established after the effective date of the amendatory act

that added this section.

Sec. 4. (1) If the governing body of a municipality desires to

request a loan, it shall provide by resolution for the submission

of an application to the board for a loan made under this act. The

municipality shall certify and substantiate all of the following

information and conditions to be eligible for consideration for a

loan authorization by the board:

(a) A deficit for the municipality's general fund is projected

for the current fiscal year.

(b) That 1 or both of the following have occurred within the 6

18 months immediately preceding the loan request:

(i) The municipality has issued tax anticipation notes or

revenue sharing notes under the revised municipal finance act, 2001

PA 34, MCL 141.2101 to 141.2821, or for a school district, issued

notes under section 1225 of the revised school code, 1976 PA 451,

MCL 380.1225.

(ii) The department of treasury has acted upon a request by the

municipality to issue tax anticipation notes or revenue sharing

notes under the revised municipal finance act, 2001 PA 34, MCL

141.2101 to 141.2821.

conditions:

(i) Its income tax revenue growth rate is .90 or less, or the

municipality has 2 or more emergency loans outstanding at the time

its application is submitted and its income tax revenue growth rate

is 1.3 or less.

(ii) Its local tax base growth rate is 75% or less of the

statewide tax base growth rate.

(iii) The state equalized valuation of real and personal

property within the municipality at the time the loan application

is made is less than the state equalized valuation of real and

personal property within the municipality in the immediately

preceding year.

(iv) The municipality is levying the maximum number of mills it

is authorized to levy as approved by the voters and has either of

the following:

(A) One or more delinquent special assessments.

(B) Outstanding bonds, notes, or other evidences of

indebtedness that were issued in anticipation of a contract

obligation with, or an assessment obligation against, another

municipality that has 1 or more delinquent special assessments that

were levied to satisfy, in whole or in part, the contract or

assessment obligation.

(v) For a school district, the school district's membership

under section 6 of the state school aid act of 1979, 1979 PA 94,

MCL 388.1606, at the time the loan application is made has declined

over a preceding 3-state-fiscal-year period by a total of 15% or

more, as determined by the department of treasury.

(vi) The municipality is in receivership or is subject to a

consent agreement under the local government and school district

fiscal accountability act, 2011 PA 4, MCL 141.1501 to 141.1531, or

a successor statute, and loan authorization by the board is

necessary to implement a financial and operating plan, a consent

agreement, or a continuing operations plan or recovery plan for the

municipality under the local government and school district fiscal

accountability act, 2011 PA 4, MCL 141.1501 to 141.1531, or a

successor statute.

(vii) The municipality is a municipality for which a financial

emergency has been confirmed to exist and responsibilities for the

municipality are vested in an emergency financial manager under

former 1990 PA 72 or is a municipality for which a consent

agreement, including a plan to address a serious financial problem,

is in place for the municipality under former 1990 PA 72. This

subparagraph applies only if the local government and school

district fiscal accountability act, 2011 PA 4, MCL 141.1501 to

141.1531, is repealed or otherwise not effective and former 1990 PA

72 is again in effect or applicable.

(d) The municipality submits a ~~long-range~~ 5-year plan, that

has been approved by the governing body of the municipality,

~~outlining actions to be taken to~~ and that will balance future

expenditures with anticipated revenues.

(2) If the board determines it necessary, the board may

inspect, copy, or audit the books and records of a municipality.

(3) Subsection (1) does not apply to a loan authorized under

section 3(2) or (3).

Sec. 5. Except for a county subject to section 3(2), until

September 30, 2011, the board may authorize loans to any 1

municipality in an amount not to exceed $3,000,000.00 in any 1

fiscal year of the municipality. Except for a county subject to

section 3(2), a municipality is not eligible to receive loans in

more than 5 fiscal years in any 10-year period.

Sec. 6. (1) A loan made under this act shall bear an annual

rate or rates of interest, if any, as established by the board

under section 2(5). The board may establish interest for a loan

under this act either at a rate or rates that are fixed for the

term of the loan or, if the formula is approved by the board at the

time the loan is made or renegotiated as authorized in section 2,

at a rate calculated upon a formula that varies the rate annually.

If The board may provide that the interest rate or rates for a loan

under this act may adjust to an interest rate or rates determined

at the time of the sale or transfer by the state treasurer to be

sufficient to facilitate the sale of the loans under section 6a.

Except for loans sold or transferred under section 6a, if the

interest rate for a loan under this act is a single fixed rate, the

annual rate of interest for the term of a loan shall not ~~exceed the~~

~~average rate of interest earned at the time the loan is approved by~~

~~the board on the investment of surplus funds, other than those~~

~~surplus funds invested under this act and section 1 of 1855 PA 105,~~

~~MCL 21.141.~~be less than the municipal 10-year rate as determined by

the state treasurer. The board may consider a higher interest rate

based on both the market interest rates and the risk of the

municipality requesting the loan.

(2) Interest payments are due and payable ~~annually, beginning~~

~~1 year after the loan is issued to the municipality. Notes of~~

~~indebtedness executed to the state by a municipality for a loan~~

~~made under this act shall not require payment of principal until 10~~

~~years after the loan is issued to the municipality~~ as determined by

the board or the state treasurer under section 6a. Repayment of all

of the principal shall be made ~~in not less than 10 equal annual~~

~~installments,~~ not more than 30 years from the date of issuance

determined by the board or state treasurer under section 6a, except

as provided in subsection (5). This subsection, sections 7 and 8,

and the conditions listed in section 4(1) do not apply to a loan

authorized under section 3(2) or (3).

(3) The loan agreement between the board and a county for a

loan authorized under section 3(2) or (3) shall establish the

schedule for payment of the principal of and interest on the loan,

the nature of the obligation of the county to repay a loan made

under this act, and any security for that loan. Payments of

principal and interest for a loan authorized by section 3(2) shall

be limited to revenues allocated to the county under the health and

safety fund act, 1987 PA 264, MCL 141.471 to 141.479, minus those

revenues authorized by the board in the loan agreement for use in

the payment of other county obligations.

(4) Unless other state appropriations to a municipality are

pledged or assigned in an amount sufficient for the municipality to

make a required principal or interest payment, if the

municipality's payment of required principal or interest is

delinquent, the state treasurer ~~shall~~ may withhold the amount of

all delinquent payments that are due on a loan issued under this

act from state payments to the municipality under the Glenn Steil

state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to

141.921.

(5) ~~Notwithstanding~~ Except for loans sold or transferred under

section 6a or as otherwise determined by the board, notwithstanding

the payment schedules and methods established by this section or by

the terms of a loan agreement, a municipality may initiate

repayment of all or part of a loan made under this act at an

earlier date or may make repayment in fewer installment payments,

or both. The board shall not condition either eligibility for

consideration for a loan or the grant of a loan under this act on

repayment schedules and terms other than those required by

subsections (1), (2), (3), and (4). In addition, failure of a

municipality to make repayments under terms or a schedule it has

instituted under this subsection does not disqualify the

municipality from eligibility for consideration for loans in

subsequent fiscal years.

(6) A loan issued under this act shall be a general obligation

of the municipality except that a loan issued under section 3(2)

shall not be a general obligation of the municipality and shall be

repaid solely from specific revenues pledged for repayment of the

loan.

Sec. 6a. (1) The state treasurer may sell or transfer a loan

under this act and enter into an agreement related to the sale or

transfer of the loan. The state treasurer also may assign to the

purchaser or transferee of a loan under this act all security

pledged for the loan by a municipality. A loan sold or transferred

under this section shall be secured in the same manner as a loan

under this act not sold or transferred, including, but not limited

to, benefiting from the security provided by section 6(4).

(2) The state treasurer may enter into an agreement with the

purchaser or transferee of a loan under this act to repurchase the

loan at a price and time or upon the occurrence of an event

provided in the agreement.

(3) Except as otherwise provided in this subsection, at the

time a loan is sold or transferred under this section, the state

treasurer may set the interest rate, or method of determining the

interest rate, on the loan being sold or transferred, including,

but not limited to, a loan made before the effective date of the

amendatory act that added this section, at a rate the state

treasurer determines necessary and advisable to accomplish the sale

or transfer. A rate determined by the state treasurer shall not

exceed the maximum rate otherwise authorized by law.

(4) When a loan is sold or transferred under this section, the

state treasurer may make changes to the terms of the loan,

including a loan made before the effective date of the amendatory

act that added this section, as the state treasurer determines

necessary and advisable to permit a purchaser or transferee to sell

obligations secured by the loans as tax-exempt under federal law,

including, but not limited to, modifying redemption provisions,

principal amortization, and interest and principal payment dates of

the loan. The state treasurer also may require a municipality to

make certain covenants the state treasurer determines necessary or

advisable relating to the tax-exempt status of the obligations of a

purchaser or transferee.

(5) At any time, the state treasurer may require a

municipality to enter into an agreement with a purchaser or

transferee of a loan regarding continuing disclosure obligations

under federal law or any other matters the state treasurer

determines are necessary and advisable. The state treasurer may

require entry into an agreement with a recipient of a loan issued

before the effective date of the amendatory act that added this

section.

(6) If a loan is sold or transferred under this section, the

state treasurer shall notify all of the following that the loan was

sold or transferred:

(a) Governor.

(b) Senate majority leader.

(d) Speaker of the house of representatives.

(e) House minority leader.

(f) Senate fiscal agency.

(g) House fiscal agency.

Sec. 7. (1) A municipality that receives a loan under this act

shall perform all of the following:

(a) ~~Employ~~ Except as otherwise provided in this subdivision,

employ a full-time professional administrator or contract with a

person with expertise in municipal finance and administration to

direct or participate directly in the management of the

municipality's operations until otherwise ordered by the board. If

the municipality is in receivership under the local government and

school district fiscal accountability act, 2011 PA 4, MCL 141.1501

to 141.1531, or a successor statute, compensate the emergency

manager for the municipality and reimburse the emergency manager's

actual and necessary expenses as provided under section 15(5)(e) of

the local government and school district fiscal accountability act,

2011 PA 4, MCL 141.1515, or a successor statute. If the

municipality is under a consent agreement as provided under the

local government and school district fiscal accountability act,

2011 PA 4, MCL 141.1501 to 141.1531, or a successor statute,

compensate those officials who are required to be compensated under

the consent agreement with the municipality and reimburse those

officials' actual and necessary expenses as provided under the

consent agreement.

(b) If the local government and school district fiscal

accountability act, 2011 PA 4, MCL 141.1501 to 141.1531, is

repealed or otherwise not effective and former 1990 PA 72 is again

in effect or applicable and an emergency financial manager is in

place for the municipality under former 1990 PA 72, compensate the

emergency financial manager and reimburse the emergency financial

manager's actual and necessary expenses. If the local government

and school district fiscal accountability act, 2011 PA 4, MCL

141.1501 to 141.1531, is repealed or otherwise not effective and

former 1990 PA 72 is again in effect or applicable and a consent

agreement is in place for the municipality under former 1990 PA 72,

compensate those officials who are required to be compensated under

the consent agreement with the municipality and reimburse those

officials' actual and necessary expenses as provided under the

consent agreement.

semiannually after that date for the period the loan is

outstanding, submit to the board an evaluation of the performance

of the municipality against the ~~long-range~~ 5-year plan submitted

under section 4(1).

(d) ~~(c)~~ Submit all of the following to the board on a

quarterly basis:

(i) A statement of actual revenues received in the last quarter

and in the current fiscal year to date.

(ii) A statement of total revenues estimated to be received by

the municipality in the current fiscal year.

(iii) A statement of expenditures made and encumbrances entered

into by the municipality in the last quarter and in the current

fiscal year to date.

(iv) A statement of revenues that were estimated to be received

and expenditures that were estimated to be made during the current

fiscal year and through the end of the last quarter.

(v) A balance sheet indicating whether total estimated

expenditures for the current fiscal year and for the last quarter

exceed the total estimated revenues for the current fiscal year and

for the last quarter, respectively.

(e) ~~(d)~~ Submit the general appropriations act of the

municipality, and any amendments to that act, adopted under the

uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to

141.440a, or any equivalent report as may be required by the board

if the municipality is not required to adopt a general

appropriations act.

(f) ~~(e)~~ Submit any budget change in the current fiscal year or

any amendment to the general appropriations act of the municipality

for the current fiscal year to the board before adoption.

(g) ~~(f)~~ Submit any budget for the ensuing fiscal year or the

general appropriations act of the municipality for the ensuing

fiscal year to the board before adoption.

(h) ~~(g)~~ Certify that the municipality has fully complied with

all statutory requirements concerning use of the uniform chart of

accounts and audits.

(2) If the state treasurer determines that a municipality is

not in compliance with all of the requirements under subsection (1)

and with the 5-year plan submitted under section 4(1), the state

treasurer may modify the terms of the loan to require a higher

interest rate or to accelerate the repayment of the loan.

(3) ~~(2)~~ As used in this section, "expenditure" and "revenue"

mean those terms as defined in sections 2c and 2d of the uniform

budgeting and accounting act, 1968 PA 2, MCL 141.422c and 141.422d.

(4) ~~(3)~~ Subsection (1) does not apply to a loan authorized

under section 3(2) or (3).

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 96th Legislature are

enacted into law:

(a) House Bill No. 5567.

(b) House Bill No. 5568.

(d) House Bill No. 5570.