Bill Text: MI HB4410 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Watercraft; marinas; marina dredging loan origination program; establish. Creates new act.
Spectrum: Strong Partisan Bill (Republican 12-1)
Status: (Introduced - Dead) 2013-03-13 - Printed Bill Filed 03/13/2013 [HB4410 Detail]
Download: Michigan-2013-HB4410-Introduced.html
HOUSE BILL No. 4410
March 12, 2013, Introduced by Reps. LaFontaine, Pscholka, Rendon, Lauwers, Franz, Zorn, Price, Genetski, Kivela, Foster, Muxlow, Forlini and McCready and referred to the Committee on Natural Resources.
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.
(c) "Dredging costs" means the costs associated with dredging
that were incurred after the effective date of this act, 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 that maintains
a principal office or branch office in this state under the laws of
this state or the United States, including, but not limited to, an
entity of the federally chartered farm credit system.
(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.
(c) This state shall pay loan origination fees for
administrative costs incurred by the qualified financial
institution equal to 5% of the original principal amount of the
loan. Loan origination fees shall be paid by this state in 5 equal
annual installments by September 1, 2018.
(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 1% or at the rate of the 5-year United
States treasury note plus 1/4%.
(b) The term of the loan shall not be more than 5 years.
(c) The first principal payment required under the loan shall
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. An amount sufficient to pay loan origination fees
under this act, not to exceed $5,000,000.00, shall be expended if
it is appropriated to the department of treasury. The appropriation
authorized in this subsection 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
qualified financial institutions.
(c) The total estimated completion cost of the work project is
$5,000,000.00.
(d) The estimated completion date of the work project is
September 1, 2018.
