Bill Text: MI HB5434 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Financial institutions; other; state surplus funds; authorize loans to eligible municipalities by state-owned bank. Amends sec. 1 of 1855 PA 105 (MCL 21.141). TIE BAR WITH: HB 5431'18, HB 5432'18

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-01-24 - Bill Electronically Reproduced 01/18/2018 [HB5434 Detail]

Download: Michigan-2017-HB5434-Introduced.html

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HOUSE BILL No. 5434

 

 

January 18, 2018, Introduced by Reps. Howrylak, LaGrand, Yanez, Rabhi, Camilleri, Lucido and Hammoud and referred to the Committee on Regulatory Reform.

 

     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 community bank of Michigan

 

shall make a loan from surplus funds deposited or invested in the

 

community bank of Michigan under section 3a 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 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 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 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 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 community bank of Michigan 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 community bank

 

of Michigan 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 all of the following bills of the 99th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5431 (request no.

 

02494'17).

 

     (b) Senate Bill No.____ or House Bill No. 5432 (request no.

 

03229'17).