June 12, 2018, Introduced by Reps. Sabo, Rabhi, Wittenberg, Green, Chang, Geiss, Lasinski, Elder, Hertel, Sowerby, Yancey, Yanez, Moss, LaGrand, Sneller, Zemke, Cochran, Singh, Brinks, Durhal, Greig, Cambensy, Faris, Phelps, Gay-Dagnogo, Hammoud, Neeley and Jones and referred to the Committee on Natural Resources.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding part 198 and sections 19801,
19802, 19803, 19804, and 19805.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 198 CLEAN MICHIGAN INITIATIVE REAUTHORIZATION IMPLEMENTATION
Sec. 19801. As used in this part:
(a) "Bonds" means the bonds authorized under the clean
Michigan initiative reauthorization act.
(b) "Corrective action" means that term as it is defined in
part 213.
(c) "Department" means the department of environmental
quality.
(d) "Facility" means that term as it is defined in part 201.
(e) "Fund" means the clean Michigan initiative reauthorization
bond fund created in section 19806.
(f) "Gaming facility" means a gaming facility regulated under
the Michigan gaming control and revenue act, the Initiated Law of
1996, MCL 432.201 to 432.226.
(g) "Local unit of government" means a county, city, village,
or township, or an agency of a county, city, village, or township;
or an authority or other public body created by or pursuant to
state law.
(h) "Response activity" means that term as defined in part
201.
Sec. 19802. The legislature finds and declares that the
environmental, natural resources, and public health protection
programs implemented under this part are a public purpose and of
paramount public concern in the interest of the health, safety, and
general welfare of the citizens of this state.
Sec. 19803. (1) The bonds shall be issued in 1 or more series,
each series to be in a principal amount, to be dated, to have the
maturities that may be either serial, term, or both, to bear
interest at a rate or rates, to be subject or not subject to prior
redemption, and if subject to prior redemption with or without call
premiums, to be payable at a place or places, to have or not have
provisions for registration as to principal only or as to both
principal and interest, to be in a form and to be executed in a
manner as shall be determined by resolution to be adopted by the
state administrative board and subject to covenants, directions,
restrictions, or rights specified by resolution to be adopted by
the state administrative board as necessary to ensure the
marketability, insurability, or tax exempt status of the bonds. The
state administrative board shall rotate the services of legal
counsel when issuing bonds.
(2) The state administrative board may refund bonds issued
under this part by the issuance of new bonds, whether or not the
bonds to be refunded have matured or are subject to prior
redemption. The state administrative board may issue bonds partly
to refund bonds issued under this part and partly for any other
purpose provided by this part. The principal amount of any
refunding bonds issued under this section shall not be counted
against the limitation on principal amount provided in the clean
Michigan initiative reauthorization act. Further, refunding bonds
issued under this section are not subject to the restrictions of
section 19807.
(3) The state administrative board may approve insurance
contracts, agreements for lines of credit, letters of credit,
commitments to purchase bonds, and any other transaction to provide
security to ensure timely payment or purchase of any bond issued
under this part.
(4) The state administrative board may authorize the state
treasurer, but only within limitations contained in the authorizing
resolution of the board, to do 1 or more of the following:
(a) Sell and deliver and receive payment for the bonds.
(b) Deliver bonds partly to refund bonds and partly for other
authorized purposes.
(c) Select which outstanding bonds will be refunded, if any,
by the new issue of bonds.
(d) Buy issued bonds at not more than their face value.
(e) Approve interest rates or methods for fixing interest
rates, prices, discounts, maturities, principal amounts, purchase
prices, purchase dates, remarketing dates, denominations, dates of
issuance, interest payment dates, redemption rights at the option
of the state or the owner, the place and time of delivery and
payment, and other matters and procedures necessary to complete the
authorized transactions.
(f) Execute, deliver, and pay the cost of remarketing
agreements, insurance contracts, agreements for lines of credit,
letters of credit, commitments to purchase bonds or notes, and any
other transaction to provide security to ensure timely payments or
purchase of any bond issued under this part.
(5) The bonds are not subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
(6) The bonds or any series of the bonds shall be sold at a
price as determined by the state administrative board.
(7) The bonds shall be sold in accordance with a schedule
established by the state administrative board.
(8) The issuance of bonds under this section is subject to the
agency financing reporting act 2002 PA 470, MCL 129.171 to 129.177.
(9) For the purpose of more effectively managing its debt
service, the state administrative board may enter into an interest
rate exchange or swap, hedge, or similar agreement with respect to
its bonds or notes on the terms and payable from the sources and
with the security, if any, as determined by a resolution of the
state administrative board.
Sec. 19804. The bonds shall be fully negotiable under the
uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.9994. The
bonds and the interest on the bonds shall be exempt from all
taxation by the state or any political subdivision of the state.
Sec. 19805. The bonds are securities in which banks, savings
and loan associations, investment companies, credit unions, and
other persons carrying on a banking business; all insurance
companies, insurance associations, and other persons carrying on an
insurance business; and all administrators, executors, guardians,
trustees, and other fiduciaries may properly and legally invest
funds, including capital, belonging to them or within their
control.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 99th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 6244 (request no.
06530'18).
(b) Senate Bill No.____ or House Bill No. 6245 (request no.
06531'18).
Enacting section 2. This amendatory act does not take effect
unless the question provided for in the clean Michigan initiative
reauthorization act is approved by a majority of the registered
electors voting on the question at the next general election.