SB-0572, As Passed House, June 25, 2003                                     

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                           HOUSE SUBSTITUTE FOR                                 

                                                                                

                           SENATE BILL NO. 572                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1961 PA 108, entitled                                             

                                                                                

    "An act to provide for loans by the state of Michigan to school             

    districts for the payment of principal and interest upon school             

    bonds; to prescribe the terms and conditions of the loans and the           

    conditions upon which levies for bond principal and interest                

    shall be included in computing the amount to be so loaned by the            

    state; to prescribe the powers and duties of the superintendent             

    of public instruction and the state treasurer in relation to such           

    loans; to provide for the repayment of such loans; to provide               

    incentives for repayment of such loans; to provide for other                

    matters in respect to such loans; and to make an appropriation,"            

                                                                                

    (MCL 388.951 to 388.963) by adding section 9c.                              

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 9c.  (1) Notwithstanding any other section of this act,                

                                                                                

2   if a school district repays all or a portion of the total amount            

                                                                                

3   of the outstanding balance on all loans made to the school                  

                                                                                

4   district under this act on the settlement date described in                 

                                                                                

5   subsection (3), the state treasurer shall reduce the total loan             

                                                                                

6   amount due from the school district by an amount equal to the               

                                                                                

7   reasonable cost to the school district of obtaining the money to            


                                                                                

1   make this repayment, as determined by the state treasurer in his            

                                                                                

2   or her discretion.  This amount shall not exceed 10% of the total           

                                                                                

3   amount of the outstanding balance being repaid by the school                

                                                                                

4   district, calculated as of the settlement date without the                  

                                                                                

5   reduction under this section.                                               

                                                                                

6       (2) A school district that issues its obligations to obtain                 

                                                                                

7   the money to use for the repayment under subsection (1) shall               

                                                                                

8   sell those obligations only to the Michigan municipal bond                  

                                                                                

9   authority created in the shared credit rating act, 1985 PA 227,             

                                                                                

10  MCL 141.1051 to 141.1076, on terms and conditions as are required           

                                                                                

11  by the Michigan municipal bond authority.                                   

                                                                                

12      (3) The state treasurer shall determine a settlement date for               

                                                                                

13  the purposes of this section.  The settlement date shall be the             

                                                                                

14  earliest practical date on which school districts will be able to           

                                                                                

15  make repayments under subsection (1) but not later than September           

                                                                                

16  30, 2004.                                                                   

                                                                                

17      (4) Notwithstanding any other section of this act, the state                

                                                                                

18  treasurer shall issue a certificate of qualification for a school           

                                                                                

19  district that issues an obligation described in subsection (2).             

                                                                                

20      (5) Notwithstanding any other section of this act, for the                  

                                                                                

21  purposes of section 4 the state treasurer shall consider an                 

                                                                                

22  obligation described in subsection (2) that is issued by a school           

                                                                                

23  district to be a loan made to the school district under this act,           

                                                                                

24  and for the purposes of calculating a school district's computed            

                                                                                

25  millage under section 2 the state treasurer shall disregard the             

                                                                                

26  obligation if inclusion of the obligation would otherwise result            

                                                                                

27  in an increase in the school district's computed millage.                   


                                                                                

1       (6) The state treasurer shall deposit the proceeds of                       

                                                                                

2   repayments made under subsection (1) into the general fund in               

                                                                                

3   accordance with section 4 of 1961 PA 112, MCL 388.984.                      

                                                                                

4       Enacting section 1.  This amendatory act does not take                      

                                                                                

5   effect unless all of the following bills of the 92nd Legislature            

                                                                                

6   are enacted into law:                                                       

                                                                                

7       (a) Senate Bill No. 573.                                                    

                                                                                

8       (b) House Bill No. 4866.