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.