Bill Text: MI HB4148 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Property tax; special assessments; revolving loan fund to pay bonds funded by delinquent special assessments; create. Creates new act.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2011-01-27 - Printed Bill Filed 01/27/2011 [HB4148 Detail]
Download: Michigan-2011-HB4148-Introduced.html
HOUSE BILL No. 4148
January 26, 2011, Introduced by Reps. Denby, Hughes and Rogers and referred to the Committee on Local, Intergovernmental, and Regional Affairs.
A bill to create the delinquent special assessment revolving
loan fund; to provide for the administration of the fund; to
prescribe requirements for loans from the fund; to prescribe duties
of certain state and local officials; and to make appropriations.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"delinquent special assessment revolving loan fund".
Sec. 3. As used in this act:
(a) "Department" means the department of treasury.
(b) "Eligible local governmental unit" means a city, village,
township, or county that meets all of the following requirements:
(i) Has issued bonds, or has pledged its full faith and credit
for bonds, for infrastructure improvements financed by a special
assessment.
(ii) Is unable to make necessary payments on those bonds
because special assessment payments on properties benefited by the
infrastructure improvements have been delinquent for a period of 6
months or more.
(c) "Fund" means the delinquent special assessment revolving
loan fund created in section 5.
Sec. 5. (1) The delinquent special assessment revolving loan
fund is created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department of treasury shall be the administrator of
the fund for auditing purposes.
(5) The department of treasury shall expend money from the
fund only for loans to eligible local tax governmental units to
permit necessary bond payments for infrastructure improvements as
provided in this act.
Sec. 7. (1) An eligible local governmental unit may apply for
a loan from the delinquent special assessment revolving loan fund
as provided in this section. If a county has pledged its full faith
and credit for bonds issued by a city, village, or township, any
loan application submitted by a city, village, or township under
this section shall first be approved by that county.
(2) An application for a loan from the fund shall be in a form
prescribed by the department.
(3) The department shall review an application for a loan from
the fund submitted by an eligible local governmental unit and shall
notify the eligible local governmental unit in writing within 30
days of receipt of the application whether the loan has been
approved or disapproved.
(4) The department shall consider loan applications under this
act on a first-come, first-served basis.
Sec. 9. (1) A loan under this act shall not exceed an amount
equal to 1 year's bond payment.
(2) A loan under this act shall be for a period not to exceed
5 years after the bond expires.
(3) Interest on a loan under this act shall be at a rate
prescribed by the department of treasury. The department shall not
charge a rate of interest greater than that rate necessary to
ensure that the fund remains actuarially sound.
Sec. 11. As a condition for any loan under this act, the
eligible local governmental unit shall require any property
connecting to the infrastructure improvements for which the bond
was issued to pay to the eligible local governmental unit the full
amount of all delinquent and all future special assessment payments
levied on that property for the infrastructure improvements for
which the bond was issued.
Sec. 13. If an eligible local governmental unit does not make
payments to this state as prescribed under the terms of the loan,
any amount delinquent shall be withheld from any payments made to
the eligible local governmental unit under the Glenn Steil state
revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.
Sec. 15. There is appropriated from the general fund to the
department for deposit into the delinquent special assessment
revolving loan fund the sum of $5,000,000.00 for the purpose of
making loans to eligible local governmental units as prescribed in
this act.
