Bill Text: MI HB5749 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Local government; financing; emergency municipal loan act; modify loan totals, and modify definition of municipality to include school districts. Amends secs. 1 & 3 of 1980 PA 243 (MCL 141.931 & 141.933). TIE BAR WITH: HB 5750'16

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-11-30 - Referred To Second Reading [HB5749 Detail]

Download: Michigan-2015-HB5749-Introduced.html

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HOUSE BILL No. 5749

June 9, 2016, Introduced by Rep. Pscholka and referred to the Committee on Appropriations.

 

     A bill to amend 1980 PA 243, entitled

 

"Emergency municipal loan act,"

 

by amending sections 1 and 3 (MCL 141.931 and 141.933), section 1

 

as amended by 2012 PA 284 and section 3 as amended by 2015 PA 115.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Board" means the local emergency financial assistance

 

loan board created under section 2.

 

     (b) "Fiscal year" means, unless otherwise provided in this

 

act, the fiscal year of the municipality applying for a loan under

 

this act.

 

     (c) "Income tax collections" means the total collection of a

 

municipality under the city income tax act, 1964 PA 284, MCL

 

141.501 to 141.787, in any calendar year.

 

     (d) "Income tax revenue growth rate" means the quotient of the

following:

 

     (i) The numerator is the income tax collections of the

 

municipality for the calendar year immediately preceding the

 

municipality's application for a loan under this act.

 

     (ii) The denominator is the income tax collections for the

 

municipality for the calendar year preceding the calendar year used

 

in determining the numerator.

 

     (e) "Municipality" means a county, city, village, or township,

 

or school district in this state. For the period beginning on

 

October 1, 2011 and ending on September 30, 2018, municipality also

 

includes a school district in this state.

 

     (f) "Local tax base growth rate" for a municipality means the

 

state equalized valuation of the real and personal property of the

 

municipality for the most recent year for which data is available

 

divided by the state equalized valuation of real and personal

 

property of the municipality for the fifth year preceding the most

 

recent year for which data is available.

 

     (g) "Statewide tax base growth rate" means the total state

 

equalized valuation for real and personal property for the most

 

recent year for which data is available divided by the total state

 

equalized valuation for the fifth year preceding the most recent

 

year for which data is available.

 

     (h) "State equalized valuation of real and personal property

 

of the municipality" means the valuation determined under 1911 PA

 

44, MCL 209.1 to 209.8, of real and personal property within the

 

municipality plus an amount equal to the state equalized valuation

 

equivalent of certain revenues of the municipality as determined

under this subdivision. The state equalized valuation equivalent

 

shall be calculated by dividing the sum of the following amounts by

 

the municipality's millage rate for the fiscal year:

 

     (i) The amount levied by the municipality for its own use

 

during the municipality's fiscal year from the specific tax levied

 

under 1974 PA 198, MCL 207.551 to 207.572.

 

     (ii) The amount levied by the municipality for its own use

 

during the municipality's fiscal year from the specific tax levied

 

under the commercial redevelopment act, 1978 PA 255, MCL 207.651 to

 

207.668.

 

     Sec. 3. (1) For state fiscal years ending before October 1,

 

2011, the The board may authorize loans under this act to

 

municipalities that total up to $5,000,000.00 in a state fiscal

 

year. For state fiscal years beginning after September 30, 2018,

 

the board may authorize loans under this act to municipalities that

 

total up to $10,000,000.00 in a state fiscal year, but a loan to a

 

single municipality shall not exceed $4,000,000.00 in a state

 

fiscal year. For the period beginning on October 1, 2011 and ending

 

on September 30, 2018, the board may do all of the following:

 

     (a) Authorize loans to municipalities other than school

 

districts that total up to $48,000,000.00 during the period. Loans

 

to a single municipality under this subdivision shall not total

 

more than $20,000,000.00.

 

     (b) Authorize loans to municipalities that are school

 

districts that total up to $70,000,000.00 during the period. Loans

 

to a single school district under this subdivision shall not total

 

more than $20,000,000.00. The board shall not authorize a loan to a

school district organized as a school district of the first class

 

under part 6 of the revised school code, 1976 PA 451, MCL 380.401

 

to 380.485.$148,000,000.00.

 

     (2) The board may authorize loans under this act to a county

 

within the following limitations:

 

     (a) In the 1998-99 state fiscal year, the board may authorize

 

loans under this act to a county with a population greater than

 

1,500,000.

 

     (b) For a state fiscal year in which the block grant

 

appropriated to a county with a population of more than 1,500,000

 

that is organized under 1966 PA 293, MCL 45.501 to 45.521, and that

 

is a county juvenile agency is less than the amount required to be

 

distributed to that county in that year under the social welfare

 

act, 1939 PA 280, MCL 400.1 to 400.119b, the board may authorize a

 

loan to that county in an amount not greater than the difference

 

between the amount of the block grant and the amount required to be

 

distributed to that county for that fiscal year under the social

 

welfare act, 1939 PA 280, MCL 400.1 to 400.119b. The board is not

 

required to authorize loans under this subdivision to a county for

 

more than 1 state fiscal year.

 

     (3) If in a state fiscal year the block grant appropriated to

 

a county other than a county described in subsection (2) that is a

 

county juvenile agency is less than the amount required to be

 

distributed to that county in that year under the social welfare

 

act, 1939 PA 280, MCL 400.1 to 400.119b, the board may authorize a

 

loan to that county in an amount not greater than the difference

 

between the amount of the block grant and the amount required to be

distributed to that county under the social welfare act, 1939 PA

 

280, MCL 400.1 to 400.119b, in that state fiscal year.

 

     (4) Sections 6(2), 7, and 8 and the conditions listed in

 

section 4(1) do not apply to a loan authorized under subsection (2)

 

or (3).

 

     (5) The proceeds of a loan made under subsection (2) or (3)

 

shall be maintained in a separate account and shall not be

 

commingled with the county's general fund or any other special fund

 

or account.

 

     (6) The state treasurer or his or her designee shall monitor

 

the expenditure of the proceeds of any loan made under subsection

 

(2) or (3).

 

     (7) The proceeds of a loan made under subsection (2) or (3)

 

are subject to the county juvenile agency act, 1998 PA 518, MCL

 

45.621 to 45.631.

 

     (8) Except as otherwise provided in this subsection, revenue

 

for loans made under this act shall be provided from the surplus

 

funds of this state under authorization granted under section 1 of

 

1855 PA 105, MCL 21.141. Alternatively, for a school district,

 

revenue for a loan made under this act may be provided from money

 

advanced to the school district by this state from money

 

appropriated from the state school aid fund established under

 

section 11 of article IX of the state constitution of 1963 and

 

payable to the school district under the state school aid act of

 

1979, 1979 PA 94, MCL 388.1601 to 388.1896.

 

     (9) After September 30, 2012, the board may restructure

 

payments, but not the outstanding principal balance or interest, on

a loan to a municipality under subsection (1) if all of the

 

following apply:

 

     (a) The municipality is in compliance with the terms of the

 

loan and any other requirements applicable to the municipality

 

under this act.

 

     (b) The municipality is in compliance with any requirements

 

relating to a deficit elimination plan under state law.

 

     (c) The municipality is in compliance with any applicable

 

consent agreement or order of an emergency manager under the local

 

financial stability and choice act, 2012 PA 436, MCL 141.1541 to

 

141.1575, or a successor statute.

 

     (d) For a municipality that is a school district, the school

 

district is in compliance with all requirements for receipt of the

 

foundation allowance and any other requirements applicable to the

 

school district under the state school aid act of 1979, 1979 PA 94,

 

MCL 388.1601 to 388.1896.

 

     (e) For a municipality other than a school district, the

 

municipality is in compliance with all conditions for economic

 

vitality incentive program money or statutory revenue sharing or

 

other requirements applicable to the municipality under the Glenn

 

Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901

 

to 141.921.

 

     (f) The restructuring of payments complies with applicable

 

law.

 

     (g) The loan has not been sold or transferred under section

 

6a.

 

     (10) As used in this section, "county juvenile agency" means

that term as defined in section 2 of the county juvenile agency

 

act, 1998 PA 518, MCL 45.622.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. ____ or House Bill No. 5750 (request no.

 

06071'16 a) of the 98th Legislature is enacted into law.