SENATE BILL No. 863

November 29, 2001, Introduced by Senator MILLER and referred to the Committee on

Finance.

A bill to amend 1980 PA 243, entitled

"Emergency municipal loan act,"

by amending section 4 (MCL 141.934), as amended by 1998 PA 528.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 4. (1) If the governing body of a municipality desires

2 to request a loan, it shall provide by resolution for the submis-

3 sion of an application to the board for a loan made under this

4 act. The municipality shall certify and substantiate all of the

5 following information and conditions to be eligible for consider-

6 ation for a loan authorization by the board:

7 (a) A deficit for the municipality's general fund is

8 projected for the current fiscal year.

9 (b) The municipality has applied to the department of

10 treasury, ISSUED A BOND OR NOTE within a period of not more than

11 6 months before its application for a loan under this act, for

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1 permission to issue ISSUING tax anticipation notes or revenue

2 sharing anticipation notes under the municipal finance act, 1943

3 PA 202, MCL 131.1 to 139.3, and the department of treasury has

4 acted upon the application. This subdivision shall be considered

5 to have been complied with if, pursuant to section 11 of

6 chapter III of the municipal finance act, 1943 PA 202,

7 MCL 131.11, the municipality, within a period of not more than 6

8 months before its application for a loan under this act, has

9 filed for an exception from prior approval for the issuance of

10 tax anticipation notes or revenue sharing anticipation notes and

11 has been eligible to issue those notes without the prior approval

12 of the department of treasury. REVISED MUNICIPAL FINANCE ACT,

13 2001 PA 34, MCL 141.2101 TO 141.2821.

14 (c) The municipality meets 1 or more of the following

15 conditions:

16 (i) Its income tax revenue growth rate is .90 or less.

17 (ii) Its local tax base growth rate is 75% or less of the

18 statewide tax base growth rate.

19 (iii) The state equalized valuation of real and personal

20 property within the municipality at the time the loan application

21 is made is less than the state equalized valuation of real and

22 personal property within the municipality in the immediately pre-

23 ceding year.

24 (d) The municipality submits a long-range plan, that has

25 been approved by the governing body of the municipality, outlin-

26 ing actions to be taken to balance future expenditures with

27 anticipated revenues.

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1 (2) If the board determines it necessary, the board may

2 inspect, copy, or audit the books and records of a municipality.

3 (3) Subsection (1) does not apply to a loan authorized under

4 section 3(2) or (3).

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