Bill Text: MI SB0942 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: State financing and management; authorities; talent investment fund in the higher education loan authority act; implement. Amends secs. 2 & 4 of 1975 PA 222 (MCL 390.1152 & 390.1154) & adds sec. 8a.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-09-05 - Assigned Pa 0228'18 With Immediate Effect [SB0942 Detail]
Download: Michigan-2017-SB0942-Engrossed.html
SB-0942, As Passed House, June 12, 2018
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 942
A bill to amend 1975 PA 222, entitled
"Higher education loan authority act,"
by amending sections 2 and 4 (MCL 390.1152 and 390.1154), section 2
as amended by 1987 PA 206 and section 4 as amended by 2007 PA 34,
and by adding section 8a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Authority" means the Michigan higher education student
loan authority created by section 3.
(b) "Bonds" means the bonds authorized to be issued by the
authority under this act, which may consist of bonds, notes, term
loans, commercial paper, or other debt obligations evidencing an
obligation to repay borrowed money and payable solely from revenues
and other money pledged by the authority.
(c) "Bond resolution" or "resolution", when used in relation
to the issuance of bonds, means either the resolution or trust
agreement securing the bonds.
(d)
"Eligible institution" means
: an institution of higher
education; a vocational school; or, with respect to students or
their parents who are citizens or nationals of the United States,
an institution outside the United States comparable to an
institution
of higher education or to a vocational school which
that is approved by the state board of education and by the United
States secretary of education for purposes of the guaranteed loan
program.
(e) "National of the United States" means a person who, though
not a citizen of the United States, owes permanent allegiance to
the
United States, as defined described
in section 101(a)(22)
101(a)(22)(B)
of the immigration and nationality act,
8 U.S.C. USC
1101.
(f) "Obligations" or "borrower obligations" means loan notes
and other debt obligations evidencing loans to students or parents
of
students which that the authority may take, acquire, buy, sell,
or indorse under this act and may include a direct or indirect
interest in whole or part of the notes or obligations.
(g) "Parent" means a biological or adoptive parent or legal
guardian.
(h) "Standard rating service" means a service recognized in
the
investment profession which that
evaluates and measures
securities investment and credit risk.
(i) "Student" means a person who is enrolled or accepted for
enrollment at an eligible institution and who is making suitable
progress in his or her education toward obtaining a degree or other
appropriate certification in accordance with standards acceptable
to the authority.
(j) "Talent investment fund" means the talent investment fund
as defined in section 8a.
Sec.
4. The authority shall have has
the powers necessary to
carry out and effectuate the purposes of this act, including, but
not limited to, the following powers:
(a) The power to sue and be sued; to have a seal and alter the
seal at pleasure; to have perpetual succession; to make, execute,
and deliver contracts, conveyances, bonds, and other instruments
necessary in the exercise of its powers; and to make and amend
bylaws.
(b) The power to accept gifts, grants, loans, and other aids
or amounts from a person, corporation, or governmental agency.
(c) The power to loan money to students and parents of
students for the purpose of assisting students in obtaining an
education beyond or in addition to obtaining a high school
education by attending an eligible institution, including
refinancing or consolidating borrower obligations previously
incurred by a student or parent of a student with other lending
sources for this purpose and participating in loans to students and
parents of students for this purpose with other lending sources.
(d) The power to enforce its rights under a contract or
agreement including the commencement of a court action.
(e) The power to acquire, hold, and dispose of real and
personal property necessary for the accomplishment of the purposes
of this act.
(f) The power to procure insurance against losses that may be
incurred in connection with its property, assets, activities, or
the exercise of the powers granted under this act.
(g) The power to borrow money and to issue its bonds and
provide for the rights of the holders of the bonds and to secure
the bonds by assignment, pledge, or granting a security interest in
its
property including all or a part of a borrower obligation. The
This state shall not be liable for the repayment of bonds issued by
the authority, the bonds issued by the authority shall not be a
debt
of the this state, and each bond shall contain on its face a
statement to this effect. The authority may, at its option,
authorize the issuance of bonds for the purposes described in
section 5 that are subject to federal income taxation,
notwithstanding any intergovernmental immunity from federal
taxation under the constitution of the United States for bonds of
the authority, but any waiver of intergovernmental immunity,
expressed or implied in this act, shall extend only to bonds
specifically authorized by the authority as bonds that are subject
to federal income taxation.
(h) The power to invest funds not required for immediate use
or
disbursement in obligations of the this state or the United
States, in obligations the principal and interest of which are
guaranteed
by the this state or the United States, in United States
government or federal agency obligation repurchase agreements, in
mutual funds and common trust funds composed of investment vehicles
that are legal for direct investment by the authority, in bankers'
acceptances of United States banks, in certificates of deposit,
savings accounts, deposit accounts, or depository receipts of a
bank that is a member of the federal deposit insurance corporation
or a savings and loan association that is a member of the federal
savings and loan insurance corporation or a credit union that is
insured by the national credit union administration, or up to 50%
of the funds in commercial paper rated at the time of purchase
within the 3 highest rating classifications established by not less
than 2 standard rating services and that matures not more than 270
days after the date of purchase.
(i) Subject to a contract with the holders of its bonds, an
applicable bond resolution, or a contract with the recipient of a
loan, when the authority considers it necessary or desirable, the
power to consent to the modification, with respect to security,
rate of interest, time of payment of interest or principal, or
other term of a bond contract or agreement between the authority
and a recipient of a loan, bondholder, or agency or institution
guaranteeing the repayment of a borrower obligation.
(j) The power to engage the services of private consultants to
render professional and technical assistance and advice in carrying
out the purposes of this act.
(k) The power to appoint officers, agents, and employees,
describe their duties, and fix their compensation subject to rules
promulgated
by the department of civil service commission.
(l) The power to solicit grants and contributions from a
government, or an agency of government, or from the public, and, at
its discretion, to arrange for the guaranteeing of the repayment of
borrower
obligations by other agencies of the this state or
agencies of the United States.
(m) The power to promulgate rules consistent with this act and
necessary to carry out the purpose of this act pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(n) The power to collect fees and charges in connection with
its loans, commitments, and servicing, including reimbursement of
the costs of financing by the authority, service charges, and
insurance premiums the authority determines are reasonable and as
approved by the authority.
(o) The power to sell borrower obligations held by the
authority for a price and at a time and pursuant to other terms,
including undertakings or options to repurchase borrower
obligations, as the authority may determine, if the sale will not
impair the rights or interests of holders of bonds issued by the
authority.
(p) The power to participate in federal programs supporting
loans to eligible students and parents of students, and to agree to
and comply with the conditions of those programs.
(q) The power to purchase or otherwise acquire notes or debt
obligations evidencing loans to students or parents of students.
(r) The power to purchase, sell, or exchange borrower
obligations securing a series of bonds of the authority with, or
for the proceeds of, or the borrower obligations securing a
separate series of bonds of the authority, but only to the extent
permitted by the respective bond resolutions for the affected
series of bonds.
(s) The power to grant and pay money to the Michigan higher
education assistance authority established by 1960 PA 77, MCL
390.951 to 390.961, for its loan guaranty fund whenever the
authority determines the grant and payment is necessary or
beneficial in order to effectuate and carry out the powers, duties,
and functions of the authority under this act.
(t) The power to enter into contracts with other authorities,
governmental agencies, private persons, firms, or corporations in
connection with any transaction relating to any indebtedness
incurred by the authority in the providing of funds for the
achievement of its purposes under this act.
(u) The power to competitively contract for services including
consulting services as needed to carry out the purposes of this
act.
(v) In the state fiscal year ending September 30, 2007, the
power to grant and pay money to the Michigan merit award trust fund
established by section 9 of the Michigan trust fund act, 2000 PA
489, MCL 12.259, to provide funding only for 1 or more of the
following:
(i) State competitive scholarships under 1964 PA 208, MCL
390.971 to 390.981.
(ii) Tuition grants under 1966 PA 313, MCL 390.991 to
390.997a.
(iii) The Michigan work-study program established in 1986 PA
288, MCL 390.1371 to 390.1382.
(iv) The Michigan work-study program established in 1986 PA
303, MCL 390.1321 to 390.1332.
(v) The tuition incentive program described in section
310 of
2006
PA 340.
(vi) Michigan merit award scholarships under the
Michigan
merit
award scholarship act, 1999 PA 94, MCL 390.1451 to 390.1459.
(v) (vii) The
Michigan nursing scholarship program established
in the Michigan nursing scholarship act, 2002 PA 591, MCL 390.1181
to 390.1189.
(w) In the state fiscal year ending September 30, 2019, the
power to grant and pay money to the talent investment fund
established under section 8a, to provide $100,000,000.00 to the
talent investment fund.
Sec. 8a. (1) The talent investment fund is created within the
state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the talent investment fund. The state
treasurer shall direct the investment of the talent investment fund
in accordance with section 4(h). The state treasurer shall credit
to the talent investment fund interest and earnings from talent
investment fund investments.
(3) Money in the talent investment fund at the close of the
fiscal year shall remain in the talent investment fund and shall
not lapse to the general fund.
(4) The department of treasury may be the administrator of the
talent investment fund for auditing purposes.
(5) The department of treasury shall expend money from the
fund, upon appropriation, only for the purpose of enhancing the
economic talent of Michigan residents, increasing access to
academic and technical credentials or certifications, improving
educational opportunities, or other purposes as provided by law.
