Bill Text: MI HB5348 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Local government; financing; reference to emergency managers in 1855 PA 105 regarding surplus funds in treasury; modify to include reference to financial management teams. Amends sec. 1 of 1855 PA 105 (MCL 21.141). TIE BAR WITH: HB 5337'17

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-12-13 - Bill Electronically Reproduced 12/12/2017 [HB5348 Detail]

Download: Michigan-2017-HB5348-Introduced.html

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HOUSE BILL No. 5348

 

 

December 12, 2017, Introduced by Rep. Yaroch and referred to the Committee on Local Government.

 

     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 2015 PA 116.

 

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, 1980 PA 243, MCL

 

141.931, if the loan is approved under the emergency municipal loan

 

act, 1980 PA 243, MCL 141.931 to 141.942.

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

 

the requirements of the emergency municipal loan act, 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 this state by an authorized representative

 

of the municipality, including, but not limited to, an emergency

 

manager or a financial management team for the municipality if the

 

municipality is in receivership under the local financial stability

 

and choice act, 2012 PA 436, MCL 141.1541 to 141.1575, the state

 

treasurer shall issue a warrant to the municipality in an amount

 

equal to the amount of the loan.

 

     (4) 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 must not exceed

 

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

 

3(2) of the emergency municipal loan act, 1980 PA 243, MCL 141.933.

 

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 must 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 in

amounts authorized under section 3(1)(a) of the emergency municipal

 

loan act, 1980 PA 243, MCL 141.933.

 

     (b) Loans to school districts in amounts authorized under

 

section 3(1)(b) 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) As used in this section, "board" means the local emergency

 

financial assistance loan board created pursuant to under the

 

emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5337 (request no.

 

03826'17) of the 99th Legislature is enacted into law.