HOUSE BILL No. 5569

 

April 24, 2012, Introduced by Reps. Ouimet, Denby, Pscholka, Rogers and Hughes and referred to the Committee on Local, Intergovernmental, and Regional Affairs.

 

     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repealed or otherwise not effective and former 1990 PA 72 is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 fiscal years beginning before October 1, 2011, the

 

total amount of loans made from surplus funds pursuant to this

 

section in any 1 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 fiscal years beginning October 1, 2011 and ending


 

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

 

funds pursuant to this section shall not exceed $100,000,000.00

 

plus the amount of loans authorized by section 3(2) of the

 

emergency municipal loan act, 1980 PA 243, MCL 141.933. For fiscal

 

years beginning after September 30, 2018, the total amount of loans

 

made from surplus funds pursuant to this section shall not exceed

 

$15,000,000.00 plus the amount of loans authorized by section 3(2)

 

of the emergency municipal loan act, 1980 PA 243, MCL 141.933.

 

     (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) Senate Bill No.____ or House Bill No. 5567(request no.

 

05368'12 *).

 

     (b) Senate Bill No.____ or House Bill No. 5568(request no.

 

05369'12 *).

 

     (c) Senate Bill No.____ or House Bill No. 5570(request no.

 

05384'12 *).


 

     (d) Senate Bill No.____ or House Bill No. 5566(request no.

 

04142'11 *).