Bill Text: MI SB0215 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Watercraft; marinas; marina dredging loans; reestablish program. Amends secs. 2d, 3 & 7 of 1855 PA 105 (MCL 21.142d et seq.).

Spectrum: Moderate Partisan Bill (Republican 9-1)

Status: (Introduced - Dead) 2013-02-21 - Referred To Committee On Outdoor Recreation And Tourism [SB0215 Detail]

Download: Michigan-2013-SB0215-Introduced.html

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SENATE BILL No. 215

 

 

February 21, 2013, Introduced by Senators BRANDENBURG, HANSEN, CASPERSON, BOOHER, GREEN, WALKER, ROBERTSON, JONES, PROOS and SMITH and referred to the Committee on Outdoor Recreation and Tourism.

 

 

 

     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 sections 2d, 3, and 7 (MCL 21.142d, 21.143, and

 

21.147), section 2d as added and sections 3 and 7 as amended by

 

2000 PA 280.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2d. (1) The state treasurer may invest surplus funds

 

under the state treasurer's control in certificates of deposit or

 

other instruments of a financial institution qualified under this

 

act to receive deposits or investments of surplus funds for the

 

purpose of facilitating marina dredging loans. The state treasurer

 

shall endeavor to make investments under this subsection in

 

financial institutions such that marina dredging loans will be

 

conveniently available in all geographic regions in this state. The

 

state treasurer may enter into an investment agreement with a

 

financial institution to provide for the investment under this

 

subsection. The investment agreement shall contain all of the

 

following:

 

     (a) The term of the investment, which shall be not more than

 

10 years.

 

     (b) A requirement that the interest accruing on the investment

 

shall not be more than the interest earned by the financial

 

institution on marina dredging loans made after the date of the

 

investment.

 

     (c) A requirement that the financial institution shall provide

 

good and ample security as the state treasurer requires and shall

 

identify the marina dredging loans and the terms and conditions of

 

those loans that are made after the date of the investment that are

 

attributable to that investment together with other information

 

required by this act.

 

     (d) A requirement that a marina dredging loan made by the

 

financial institution that is attributable to the investment shall

 

be issued at a rate or rates of interest that are established in

 

the investment agreement.

 

     (e) A requirement that a marina dredging loan made by the

 

financial institution that is attributable to the investment shall

 

be made not later than 3 years after the effective date of this

 

section.10 years after the effective date of the 2013 amendatory

 

act that amended this section.

 

     (f) A requirement that a marina dredging loan made by the

 

financial institution that is attributable to the investment shall

 

be issued for a loan repayment period of not more than 7 years.

 

     (g) A requirement that a marina dredging loan made by the

 

financial institution that is attributable to the investment shall

 

not exceed $75,000.00.$500,000.00.

 

     (h) A requirement that a marina dredging loan made by the

 

financial institution that is attributable to the investment shall

 

not be released by the financial institution unless the loan

 

applicant has certified that it is an eligible marina.

 

     (i) A requirement that to the extent the financial institution

 

has not made marina dredging loans in an amount at least equal to

 

the amount of the investment within 90 days after the investment,

 

the rate of interest payable on that portion of the outstanding

 

investment shall be increased to a rate of interest provided in the

 

investment agreement, with the increase in the rate of interest

 

applied retroactively to the date on which the state treasurer made

 

the investment.

 

     (j) Incentives for the early repayment of the investment and

 

for the acceleration of payments in the event of a state cash

 

shortfall as prescribed by the investment agreement, if required by

 

the state treasurer.

 

     (k) Other terms as prescribed by the state treasurer.

 

     (2) An investment made under this section is found and

 

declared to be for a valid public purpose.

 

     (3) The attorney general shall approve documentation for an

 

investment under this section as to legal form.

 

     (4) The aggregate amount of investments made under this

 

section shall not exceed $20,000,000.00.$30,000,000.00.

 

     (5) Upon the determination by the directors of the departments

 

of natural resources and environmental quality that the need to

 

facilitate marina dredging loans has significantly diminished based

 

on changes in Great Lakes water levels, the state treasurer may

 

take actions necessary to ensure that no new marina dredging loans

 

that are attributable to an investment under this section are made.

 

Such a determination shall not affect existing marina dredging

 

loans that are attributable to an investment under this section.

 

     (6) Earnings from an investment made under this section that

 

are in excess of the average rate of interest earned during the

 

same period on other surplus funds, other than surplus funds

 

invested under section 1, shall be credited to the general fund of

 

the state. If interest from an investment made under this section

 

is below the average rate of interest earned during the same period

 

on other surplus funds, other than surplus funds invested under

 

section 1, the general fund shall be reduced by the amount of the

 

deficiency on an amortized basis over the remaining term of the

 

investment. A loss of principal from an investment made under this

 

section shall reduce the earnings of the general fund by the amount

 

of that loss on an amortized basis over the remaining term of the

 

investment.

 

     (7) The state treasurer may take any necessary action to

 

ensure the successful operation of this section, including making

 

investments with financial institutions to cover the administrative

 

and risk-related costs associated with a marina dredging loan.

 

     (8) Annually, each financial institution in which the state

 

treasurer has made an investment under this section shall file an

 

affidavit, signed by a senior executive officer of the financial

 

institution, stating that the financial institution is in

 

compliance with the terms of the investment agreement.

 

     (9) The Beginning in 2013, the state treasurer shall annually

 

prepare and submit a report to the legislature regarding the

 

disposition of money invested for purposes of facilitating marina

 

dredging loans under this section. The report shall include all of

 

the following information:

 

     (a) The total number of eligible marina owners who have

 

received a marina dredging loan.

 

     (b) By county, the total number and amounts of the marina

 

dredging loans that were issued.

 

     (c) The name of each financial institution participating in

 

the marina dredging loan program and the amount invested in each

 

financial institution for purposes of the loan program.

 

     (10) As used in this section:

 

     (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 January 1, 2000, the effective date of the

 

2013 amendatory act that amended this section, 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 and or their

 

connecting waters that are navigable by motorized watercraft from a

 

Great Lake.

 

     (ii) Provides docking, mooring or launching services available

 

to the general public for recreational boating . Marinas that limit

 

their and does not limit its services based on membership or

 

residency requirements are not eligible.religion, race, color,

 

creed, national origin, sex, marital status, disability, age,

 

sexual orientation, or family status.

 

     (iii) Provides mooring facilities for no more than 200

 

recreational watercraft through the use of docks, slips, or

 

broadside mooring.

 

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

 

department of environmental quality and the United States army

 

corps of engineers for the dredging to be conducted with loan

 

funds.

 

     (e) "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.

 

     (f) "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.

 

     (g) "Surplus funds" means, at any given date, the excess of

 

cash and other recognized assets that are expected to be resolved

 

into cash or its equivalent in the natural course of events and

 

with a reasonable certainty, over the liabilities and necessary

 

reserves at the same date.

 

     Sec. 3. (1) A financial institution shall not be a depository

 

of surplus funds of the state unless the financial institution

 

complies with this act. The state treasurer shall require of a

 

financial institution, before it is made a depository of surplus

 

funds of the state, good and ample security as approved by the

 

state treasurer and the attorney general for the safekeeping and

 

reimbursement of the surplus funds and the payment of the rate of

 

return as the state treasurer, in the treasurer's discretion,

 

considers best for the interest of the state.

 

     (2) The state treasurer may invest surplus funds of the state

 

in the bonds, notes, and other evidences of indebtedness of the

 

United States government and its agencies, in prime commercial

 

paper, and may also use surplus funds in the manner provided in

 

sections 2, 2a, 2b, and 2d and may use each fiscal year not more

 

than that amount of the surplus funds necessary to make loans to

 

municipalities under section 1.

 

     (3) All earnings from loans made under section 1 in excess of

 

the average rate of interest earned on other surplus funds during

 

the same period shall be credited to the general fund of the state.

 

Any loss of principal or interest sustained from loans made under

 

section 1 shall reduce the earnings of the general fund on an

 

amortized basis over the remaining term of the loan.

 

     (4) The investment of surplus state funds in bonds, notes, and

 

other evidences of indebtedness of the United States government and

 

its agencies as provided in subsection (1) may include securities

 

of, or other interests in, a no-load open-end or closed-end

 

management type investment company or investment trust registered

 

under the investment company act of 1940, title I of chapter 686,

 

54 Stat. 789, 15 U.S.C. USC 80a-1 to 80a-3 and 80a-4 to 80a-64, if

 

both of the following are true:

 

     (a) The portfolio of the investment company or investment

 

trust is limited to United States government obligations and

 

repurchase agreements fully collateralized by United States

 

government obligations.

 

     (b) The investment company or investment trust takes delivery

 

of the collateral for any repurchase agreement either directly or

 

through an authorized custodian.

 

     Sec. 7. As used in this act:

 

     (a) "Commissioner" means the commissioner of the office of

 

financial and insurance services of the department of consumer and

 

industry services.

 

     (a) (b) "Deposit" includes the purchase of, or investment in,

 

shares of credit unions.

 

     (b) "Director" means the director of the department of

 

insurance and financial services.

 

     (c) Except as otherwise provided by this subdivision,

 

"financial institution" means a state or nationally chartered bank

 

or a state or federally chartered savings and loan association,

 

savings bank, or credit union whose deposits are insured by an

 

agency of the United States government and which maintains a

 

principal office or branch office located in this state under the

 

laws of this state or the United States. For the purpose of

 

repurchase agreements, "financial institution" means a state or

 

nationally chartered bank or state or federally chartered savings

 

and loan association, savings bank, or credit union whose deposits

 

are insured by an agency of the United States government under the

 

laws of this state or the United States.