Bill Text: MI HB5473 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Transportation; funds; bonds issued by the state transportation commission; modify. Amends sec. 18b of 1951 PA 51 (MCL 247.668b).
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2020-02-11 - Bill Electronically Reproduced 02/06/2020 [HB5473 Detail]
Download: Michigan-2019-HB5473-Introduced.html
HOUSE BILL NO. 5473
February 06, 2020, Introduced by Reps. Calley,
Brann, Rendon, Afendoulis, O'Malley, Green, Bollin and Yaroch and referred
to the Committee on Transportation.
A bill to amend 1951 PA 51, entitled
"An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to promote safe and efficient travel for motor vehicle drivers, bicyclists, pedestrians, and other legal users of roads, streets, and highways; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, local bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; and to repeal acts and parts of acts,"
by amending section 18b (MCL 247.668b), as amended by 2002 PA 498.
the people of the state of michigan enact:
Sec. 18b. (1) The state transportation commission may
borrow money and issue notes or bonds for the following purposes:
(a) To pay all or any portion
of or to make loans, grants, or contract payments to pay all or any portion of
any capital costs for the purposes described in section 9 of article IX of the
state constitution of 1963.
(b) To pay the principal
or the principal and interest on notes and, if the state transportation
commission considers refunding to be expedient, to refund bonds payable from
money in the state trunk line fund or the comprehensive transportation fund or
received or to be received from the motor vehicle highway fund or the Michigan
transportation fund regardless of when the refunded bonds were issued, by the
issuance of new bonds, whether or not the bonds to be refunded have matured or
are subject to prior redemption or are to be paid, redeemed, or surrendered at
the time of issuance of the refunding bonds; and to issue new bonds partly to
refund bonds or pay notes then outstanding and partly for any other
transportation purpose authorized by this act.
(c) To pay all costs
relating to the issuance of the bonds or notes described in this section,
including, but not limited to, legal, engineering, accounting, and consulting
services, interest on bonds or notes for such period as determined by the state
transportation commission in the resolution authorizing the bonds or notes and
a reserve for payment of principal, interest, and redemption premiums on the
bonds or notes in an amount determined by the state transportation commission
in the resolution authorizing the bonds or notes.
(2) The refunding bonds
described in subsection (1)(b) shall be sold and the proceeds and the earnings
or profits from the investment of those proceeds applied in whole or in part to
the purchase, redemption, or payment of the principal or the principal and
interest of the bonds to be refunded and the refunding bonds issued by the
state transportation commission under subsection (1)(b) and the costs described
in subsection (1)(c). Refunding notes or bonds shall be considered to be issued
for the same purpose or purposes for which the notes or bonds to be refunded
were issued.
(3) The notes or bonds
authorized by this section shall be issued only after authorization by
resolution of the state transportation commission, which resolution shall
contain the following:
(a) An irrevocable pledge
providing for the payment of the principal and interest on the notes or bonds
from money which that is restricted as to use by section 9
of article IX of the state constitution of 1963 and which that is
deposited or to be deposited in the comprehensive transportation fund, in the
case of bonds or notes issued for comprehensive transportation purposes as
defined by law, or in the state trunk line fund, in the case of bonds or notes
issued for transportation purposes described in the second paragraph of section
9 of article IX of the state constitution of 1963, or in the case of notes or
bonds, if the resolution authorizing the notes or bonds provides, from money
received or to be received by the state transportation department from the
proceeds of bonds or renewal notes to be issued after the date of the
resolution or from money received or to be received from the proceeds of the
grants described in subsection (9). If the resolution authorizing the bonds or
notes so provides, a portion of the principal or interest on the bonds or notes
may be secured by an irrevocable pledge of money deposited in the comprehensive
transportation fund or the state trunk line fund, and the balance of the
principal and interest secured by an irrevocable pledge of the proceeds of
bonds or renewal notes or money received or to be received from the proceeds of
the grants described in subsection (9).
(b) A brief statement
describing the projects for which the notes or bonds are to be issued and in
the case of notes or bonds to pay notes or refund bonds, a description of the
notes or bonds to be paid or refunded. For purposes of this section and section
18k, in connection with bonds issued to fund the loan program established under
section 11(6) to (11), 11, the loan program shall constitute the
project, and it shall not be necessary to specify the particular item or costs
of a particular item to be financed from any particular loan made under the
loan program.
(c) The estimated cost of
the projects or refunding or refinancing.
(d) The detail of the notes
or bonds including the date of issue, maturity date or dates of the bonds or
notes, the maximum interest rate, the dates of payment of interest, the paying
agents, the transfer agent or agents, the provisions for registration, the
redemption provisions, and the manner of execution or, as provided in
subsection (11)(d), the limitations within which such detail may be determined
by the person designated by the commission.
(4) If after the issuance
of notes or bonds, the state transportation commission determines that a
project for which the notes or bonds are to be issued should be changed, the
state transportation commission, by resolution, adopted after the 30 days'
notice of intention to adopt the resolution has been given to the
appropriations committees of the senate and the house of representatives, shall
amend the resolution authorizing the bonds or notes to change the description
of the project or projects or to substitute a different project or projects for
the project for which the notes or bonds were issued and shall make other
revisions in the resolution authorizing the notes or bonds with respect to cost
as may be necessary to permit the change in or substitution of a project or
projects.
(5) Before October 1,
1979, the total amount of bonds and notes issued pursuant to this section for
comprehensive transportation purposes as defined by law shall not exceed an
amount as will be serviced as to maximum principal and interest requirements by
a sum equal to the amount deposited to the credit of the general transportation
fund for the fiscal year ending September 30, 1977. After September 30, 1979,
the total amount of bonds and notes issued pursuant to this section for
comprehensive transportation purposes as defined by law shall not exceed an amount
as will be serviced, out of state funds only, as to maximum annual principal
and interest requirements by an amount equal to 50% 10% of
the total amount of money from taxes, the use of which money is restricted by
section 9 of article IX of the state constitution of 1963, and which money is
deposited in the state treasury to the credit of the comprehensive
transportation fund during the state fiscal year immediately preceding the
issuance of the bonds or notes.
(6) The total amount of
bonds and notes issued pursuant to this section for transportation purposes
described in the second paragraph of section 9 of article IX of the state
constitution of 1963 shall not exceed an amount as will be serviced as to the
maximum principal and interest requirements by a sum equal to 50% 10% of the total of the amount of money
received from taxes, the use of which is restricted by section 9 of article IX
of the state constitution of 1963 and which is deposited in the state treasury
to the credit of the state trunk line fund during the state fiscal year
immediately preceding the issuance of the bonds or notes.
(7) The principal or
principal and interest or the portion of principal or interest of bonds or
notes which that are issued in anticipation of the
issuance of bonds or renewal notes or of federal grants as provided in
subsection (9) and which that do not pledge for their payment
money in the state trunk line fund or the comprehensive transportation fund or
money received or to be received by the state transportation department from
the Michigan transportation fund or the motor vehicle highway fund shall not be
considered to be principal and interest requirements subject to the limitation
set forth in subsections (5) and (6). The principal of and interest on notes or
bonds refunded or for the refunding of which refunding bonds have been sold,
whether the bonds to be refunded are to be retired at the time of delivery of
the refunding bonds or not, shall not be considered to be principal and
interest requirements subject to the limitation set forth in subsections (5)
and (6).
(8) In computing the
maximum annual principal and interest requirements under subsection (6), the
total outstanding maximum annual contributions required to be made by the state
highway commission and the state transportation commission pursuant to
contracts entered into under the authorization of section 18d, which
contributions are pledged to the payment of bonds issued under section 18d,
shall be included in the amount.
(9) The state
transportation commission may borrow money and issue notes or bonds in
anticipation of the receipt of grants from the United States of America or any
agency or instrumentality thereof and may pledge for the payment of the
principal, interest, and redemption premiums on such notes or bonds 1 or more
of the following:
(a) The proceeds of any
grant and any investment earnings or gain on the grant.
(b) If deemed considered advisable by the state
transportation commission, money which is restricted as to use by section 9 of article
IX of the state constitution of 1963, and which is deposited or to be deposited in the
comprehensive transportation fund, in the case of bonds or notes issued for
comprehensive transportation purposes as defined by law, or in the state trunk
line fund, in the case of bonds or notes issued for transportation purposes
described in the second paragraph of section 9 of article IX of the state
constitution of 1963.
(c) If deemed considered advisable by the state
transportation commission, money received or to be received by the state from
the sale of the bonds or notes described in this section to be issued after the
issuance of the notes or bonds described in this subsection and any investment
earnings or gain thereon.
(10) Bonds or notes may
be issued under this section as separate issues or series with different dates
of issuance, but the aggregate of the bonds or notes shall be is subject to the limitations set forth in this
section.
(11) The state
transportation commission in determining to issue bonds or notes may do 1 or
more of the following:
(a) Authorize and enter
into insurance contracts, agreements for lines of credit, letters of credit,
commitments to purchase obligations, remarketing agreements, reimbursement
agreements, and any other transactions to provide security to assure ensure timely payment of any bonds or
notes.
(b) Authorize payment
from the proceeds of the bonds or notes or other funds available, of the cost
of issuance, including, but not limited to, fees for placement, fees or charges
for insurance, letters of credit, lines of credit, remarketing agreements,
reimbursement agreements, or purchase or sales agreements or commitments, or
other agreements to provide security to assure ensure timely
payment of bonds or notes.
(c) Authorize principal
and interest to be payable from 1 or more of the following:
(i) Money described in subsection (3)(a).
(ii) Proceeds of bonds
or notes.
(iii) Earning on
proceeds of bonds or notes or other funds held for payment of bonds or notes.
(iv) Proceeds of any
other security provided to assure
ensure timely
payment of the bonds or notes.
(v) Proceeds of
federal grants and other money described in subsection (9).
(vi) Any combination
of the sources described in subparagraphs (i) to (v).
(d) Authorize or provide for a person designated by the state
transportation commission, but only within limitations which that shall be contained
in the authorization resolution of the state transportation commission, to do 1
or more of the following:
(i) Sell and deliver
and receive payment for bonds or notes.
(ii) Refund bonds or
notes by the delivery of new bonds or notes, whether or not the bonds or notes
to be refunded have matured or are subject to redemption prior to before maturity on the
date of delivery of the refunding bonds or notes.
(iii) Deliver bonds or
notes partly to refund bonds or notes and partly for any other authorized
purposes.
(iv) Buy, hold without
cancellation, or sell bonds or notes so issued.
(v) Approve interest
rates or methods for fixing interest rates, prices, discounts, maturities,
principal amounts, denominations, dates of issuance, interest payment dates,
optional or mandatory redemption or tender rights and obligations to be
exercised by the state transportation commission or the holder, the place of
delivery and payment, and other matters and procedures necessary to complete
the transactions authorized.
(e) In connection with outstanding bonds, notes, or other
obligations issued under this act, or in connection with the issuance or
proposed issuance of bonds, notes, or other indebtedness, the state
transportation commission may authorize by resolution the execution and
delivery of agreements providing for interest rate exchanges or swaps, hedges,
or similar agreements. The obligations of this state under the agreements,
including termination payments, may be made payable from and secured by a
pledge of the same sources of funds as the bonds, notes, or other obligations
in connection with which the agreements are entered into, or from any other
sources of funds available as a payment source of bonds, notes, or other
obligations issued under this act. In calculating debt service on bonds, notes,
and other obligations, the payments and receipts under the agreements
authorized by this subsection, without regard to termination payments, and the
payment obligations under the bonds, notes, or other obligations in connection
with which the agreements are entered into, shall be aggregated and treated as
a single obligation.
(f) Bonds and notes issued under this act are not subject to
the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(g) The issuance of bonds and notes under this section is
subject to the agency financing reporting act, 2002 PA 470, MCL 129.171 to 129.177.
If additionally secured as provided in this subsection, the
bonds or notes, notwithstanding other provisions of this act, may be made
payable or subject to purchase on demand or prior to before maturity at the option of the holder
at the time and in the manner as determined by the state transportation
commission or the designated person as provided in the resolution authorizing
the bonds or notes. Any bonds or notes authorized by this section may bear no
interest or interest at a rate or rates which that may be variable but which shall be that are subject to the
limitations provided in section 18e as provided in the resolution authorizing
the obligations. If bonds or notes are subject to payment or purchase on demand
or prior to before maturity at the
option of the holder, and the obligation of the state to make payment or effect
purchases on demand or prior
to before maturity,
at the option of the holder is limited to the proceeds of 1 or more of the
additional security devices described in this subsection and is not payable
from constitutionally restricted funds deposited in the comprehensive
transportation fund or the state trunk line fund, for purposes of computing
maximum annual principal and interest requirements under subsections (5) and
(6), the principal and interest on the bonds or notes subject to payment or
purchase on demand or prior redemption at the option of the holder shall be
disregarded and the maximum annual principal and interest requirements which that would arise with
respect to the repayment of the proceeds of the additional security device
shall be substituted therefor.