SB-0252, As Passed Senate, March 14, 2013

SUBSTITUTE FOR

SENATE BILL NO. 252

A bill to establish a marina dredging loan origination

program; to authorize certain loan guarantees; to prescribe the

powers and duties of certain state agencies and officials; and to

provide for an appropriation.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"marina dredging loan origination act".

Sec. 2. As used in this act:

(a) "Bottomland" means the land area of a water body that lies

below the ordinary high-water mark and that may or may not be

covered by water.

(b) "Dredging" means the removal of sediments from bottomland.

that were incurred after February 1, 2013, including costs of

removal, disposal, and testing of sediments, and the costs

associated with obtaining necessary permits required to conduct

dredging.

(d) "Eligible marina" means a privately owned, commercial

facility in this state that meets all of the following

requirements:

(i) Extends into or over the Great Lakes, their connecting

waters, or an inland lake or stream.

(ii) Provides docking, mooring, or launching services for

recreational boating and does not limit its services based on

religion, race, color, creed, national origin, sex, marital status,

disability, age, sexual orientation, or family status.

(iii) Has received the permits required by law from the

department of environmental quality and the army corps of

engineers, as appropriate, for the dredging to be conducted with

marina dredging loan funds.

(e) "Financial institution" means a state or national bank, a

state or federally chartered savings and loan association, a state

or federally chartered savings bank, a state or federally chartered

credit union, or other regulated lending institution whose deposits

are insured by an agency of the United States government, that

maintains a principal office or branch office in this state under

the laws of this state or the United States.

(f) "Inland lake or stream" means that term as it is defined

in section 30101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.30101.

(g) "Marina dredging loan" means a loan or the refinancing of

all or a portion of a loan made to the owner of an eligible marina

for dredging costs necessitated by low water levels to accommodate

the use of the marina by recreational watercraft.

(h) "Ordinary high-water mark" means either of the following:

(i) For an inland lake or stream, that term as it is defined in

section 30101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.30101.

(ii) For the Great Lakes, the ordinary high-water mark as

described in section 32502 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.32502.

(i) "Person" means an individual, partnership, corporation,

association, governmental entity, or other legal entity.

(j) "Program" means the marina dredging loan origination

program established under this act.

(k) "Qualified financial institution" means a financial

institution that has a physical location in this state or whose

principal office is located in this state, or both.

Sec. 3. (1) The state treasurer may establish a marina

dredging loan origination program as provided in this act.

(2) The program shall meet all of the following:

(a) A qualified financial institution shall make marina

dredging loans before March 1, 2014.

(b) A person receiving a marina dredging loan shall pay an

interest rate authorized under this act and established by the

qualified financial institution.

come first serve basis, for administrative costs incurred by the

qualified financial institution equal to 5% of the original

principal amount of the loan.

(3) A marina dredging loan shall comply with all of the

following:

(a) Interest shall be set by the qualified financial

institution at a rate of not more than the higher of 2.5% or the

adjusted prime rate minus 0.75%. As used in this subdivision,

"adjusted prime rate" means that term as it is defined in section

23 of 1941 PA 122, MCL 205.23.

(b) The term of the loan shall not be more than 5 years.

not occur before 24 months after the issuance of the loan.

(4) A marina dredging loan shall not exceed $500,000.00 per

eligible marina.

Sec. 4. (1) The state treasurer may take any necessary action

to ensure the successful operation of the program, including, but

not limited to, entering into agreements with qualified financial

institutions related to the operation of the program and the

issuance of marina dredging loans.

(2) The attorney general shall approve as to legal form all

documents relating to the payment of a loan origination fee by this

state.

(3) Each qualified financial institution participating in the

program shall do both of the following:

(a) By March 1, 2014, report to the state treasurer the

principal amount of marina dredging loans made under the program.

(b) File an affidavit with the state treasurer signed by a

senior executive officer of the qualified financial institution

stating that the qualified financial institution is in compliance

with the program and this act.

(4) Upon request by the state treasurer, a qualified financial

institution shall forward to the state treasurer a copy of any

affidavit executed by a person receiving a marina dredging loan

under this act. The qualified financial institution and the state

treasurer shall destroy the affidavit or its copy after the marina

dredging loan is repaid.

(5) The program is found and declared to be for a valid public

purpose.

Sec. 5. (1) For the state fiscal year ending September 30,

2013, there is appropriated from the general fund to the department

of treasury the sum of $1,000,000.00 for the payment of loan

origination fees under this act.

(2) The appropriation authorized in this section is a work

project appropriation, and any unencumbered or unallotted funds are

carried forward into the following fiscal year. The following is in

compliance with section 451a(1) of the management and budget act,

1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide financial

assistance to eligible marinas and to alleviate financial distress

caused by low water levels impacting recreational watercraft use

and related economic impacts through the program.

(b) The work project will be accomplished through the use of

payments to qualified financial institutions for marina dredging

loan origination fees for administrative costs incurred by