Bill Text: MI SB0719 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Natural resources; funding; clean Michigan initiative loans; allow to renegotiate. Amends sec. 19612 of 1994 PA 451 (MCL 324.19612).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-04-22 - Assigned Pa 0115'14 With Immediate Effect [SB0719 Detail]
Download: Michigan-2013-SB0719-Introduced.html
SENATE BILL No. 719
December 10, 2013, Introduced by Senator BOOHER and referred to the Committee on Natural Resources, Environment and Great Lakes.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 19612 (MCL 324.19612), as amended by 2012 PA
446.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 19612. (1) A recipient of a grant or a loan made with
money from the fund shall do both of the following:
(a) Keep an accounting of the money spent on the project or
facility in a generally accepted manner. The accounting shall be
subject to a postaudit.
(b) Obtain authorization from the administering state
department before implementing a change that significantly alters
the proposed project.
(2) The administering state department may revoke a grant or a
loan made with money from the fund or withhold payment if the
recipient fails to comply with the terms and conditions of the
grant or loan agreement or with the requirements of this part or
the rules promulgated under this part, or with other applicable law
or rules. If a grant or loan is revoked, the administering state
department may recover all funds awarded.
(3) The administering state department may withhold a grant or
a loan until the administering state department determines that the
recipient is able to proceed with the proposed project.
(4) To assure timely completion of a project, the
administering state department may withhold 10% of the grant or
loan amount until the project is complete.
(5) If an approved applicant fails to sign a grant or loan
agreement within 90 days after receipt of a written grant or loan
offer by the administering state department, the administering
state department may cancel the grant or loan offer. The applicant
may not appeal or contest a cancellation pursuant to this
subsection.
(6) The administering state department may terminate a grant
or loan agreement and require immediate repayment of the grant or
loan if the recipient uses grant or loan funds for any purpose
other than for the approved activities specified in the grant or
loan agreement. The administering state department shall provide
the recipient written notice of the termination 30 days prior to
the termination.
(7) A loan made with money in the fund shall have the
following terms:
(a) A loan interest rate of not more than 50% of the prime
rate as determined by the administering state department as of the
date of approval of the loan.
(b) Loan recipients shall repay loans in equal annual
installments of principal and interest beginning not later than 5
years after execution of a loan agreement and concluding not later
than 15 years after execution of a loan agreement.
(c) A loan recipient shall enter into a loan agreement with
the administering state department.
(d) Upon default of a loan, as determined by the administering
state department, or upon the request of the loan recipient as a
method to repay the loan, the department of treasury shall withhold
state payments from the loan recipient in amounts consistent with
the repayment schedule in the loan agreement until the loan is
repaid. The department of treasury shall deposit these withheld
funds into the fund until the loan is repaid.
(8) Upon request of a loan recipient and a showing of
financial hardship related to the project that was financed in
whole or in part by the loan, the administering state department
may renegotiate the terms of any outstanding loan, including the
length of the loan, the interest rate, and the repayment terms.
(9) (8)
Loan payments and interest shall be
deposited in the
fund.
(10) (9)
Upon default of a loan, as
determined by the
administering state department, or upon the request of the loan
recipient as a method to repay the loan, the department of treasury
shall withhold from the loan recipient state payments in amounts
consistent with the repayment schedule in the loan agreement until
the loan is repaid. The department of treasury shall deposit these
withheld funds into the fund until the loan is repaid.
