HB-5569, As Passed Senate, July 18, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5569

     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,"

by amending section 1 (MCL 21.141), as amended by 1987 PA 284.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. (1) The state treasurer shall make a loan from surplus

funds to an eligible municipality, as municipality is defined in

section 1 of the emergency municipal loan act, Act No. 243 of the

Public Acts of 1980, being section 141.931 of the Michigan Compiled

Laws, 1980 PA 243, MCL 141.931, if the loan is approved pursuant to

under the emergency municipal loan act, Act No. 243 of the Public

Acts of 1980, being sections 141.931 to 141.942 of the Michigan

Compiled Laws.1980 PA 243, MCL 141.931 to 141.942.

     (2) A loan made under subsection (1) shall comply with the

requirements of the emergency municipal loan act, Act No. 243 of

the Public Acts of 1980, with respect 1980 PA 243, MCL 141.931 to

141.942, relating to the terms, conditions, rate of interest, and

amount of the loan.

     (3) Upon approval of a loan by the board and execution of a

note of indebtedness to the this state by an authorized

representative of the municipality, including, but not limited to,

an emergency manager for the municipality 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, a

successor statute, or, 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repealed or otherwise not effective and former 1990 PA 72 is

reenacted or otherwise again in effect or applicable, an emergency

financial manager for the municipality if the municipality has a

financial emergency under former 1990 PA 72, the state treasurer

shall issue a warrant to the municipality in an amount equal to the

amount of the loan.

     (4) The For state fiscal years beginning before October 1,

2011, the total amount of loans made from surplus funds pursuant to

this section in any 1 state fiscal year shall not exceed

$5,000,000.00 plus the amount of any loans authorized by section

3(2) of the emergency municipal loan act, Act No. 243 of the Public

Acts of 1980, being section 141.933 of the Michigan Compiled

Laws.1980 PA 243, MCL 141.933. For state fiscal years beginning

after September 30, 2018, the total amount of loans made from

surplus funds pursuant to this section in any 1 state fiscal year

shall not exceed $10,000,000.00 plus the amount of any loans

authorized by section 3(2) of the emergency municipal loan act,

1980 PA 243, MCL 141.933, with no loan to a single municipality

exceeding $4,000,000.00 in a state fiscal year. For the period

beginning on October 1, 2011 and ending on September 30, 2018,

loans made from surplus funds pursuant to this section may include

both of the following:

     (a) Loans to municipalities other than school districts

totaling 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.

     (b) Loans to school districts within this state 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.

     (5) The state treasurer may sell, assign, transfer, or

repurchase loans made from surplus funds under this section or from

the proceeds of the sale, assignment, or transfer of a loan under

section 6a of the emergency municipal loan act, 1980 PA 243, MCL

141.936a. The state treasurer shall use surplus funds to repurchase

a loan under this subsection.

(6) (5) As used in this section, "board" means the local

emergency financial assistance loan board created pursuant to the

emergency municipal loan act, Act No. 243 of the Public Acts of

1980.1980 PA 243, MCL 141.931 to 141.942.

     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. 5566.

     (b) House Bill No. 5567.

     (c) House Bill No. 5568.

     (d) House Bill No. 5570.