HB-6045, As Passed House, April 29, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 6045

     A bill to provide for the procedure for allocation,

reallocation, and waiver of federal bond limitations under certain

bond programs; and to prescribe certain powers and duties of

certain state agencies and public officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. Unless prohibited by applicable federal law, the state

treasurer shall allocate and reallocate any federal law bond

limitation allocated, reallocated, or waived to the state of

Michigan before January 1, 2011 for any of the following in

accordance with the federal law establishing the bond limitation:

     (a) Qualified school construction bonds.

     (b) Recovery zone economic development bonds.

     (c) Recovery zone facility bonds.

     Sec. 2. (1) Except as otherwise provided in this section,

unless prohibited by applicable federal law, the state treasurer

may provide for the waiver, deemed waiver, or reallocation to the

state of Michigan of any federal bond limitations specified in

section 1 allocated to projects, municipalities, or other entities

within this state. The state treasurer shall not consider any

federal bond limitation specified in section 1 a deemed waiver

before July 1, 2010.

     (2) Subject to subsection (4), beginning July 1, 2010, the

state treasurer may consider any bond limitation specified in

section 1 a deemed waiver unless the municipality or other entity

that was allocated the bond limitation does all of the following:

     (a) The municipality or other entity adopts a resolution

describing the project and indicating the intent to issue bonds for

the project.

     (b) The municipality or other entity provides communications

from a third party nationally recognized bond counsel attesting to

the viability of the project.

     (c) If applicable, the municipality or other entity provides

communications from a third party that is responsible for payment

of the bonds.

     (3) Subject to subsection (5), beginning September 1, 2010,

the state treasurer may consider any bond limitation specified in

section 1 a deemed waiver if the municipality or other entity that

was allocated the bond limitation has not issued the bonds and

other municipalities or other entities have need for additional

bond limitation authority.

     (4) If the final deadline for issuing bonds is extended by

federal law enacted after the effective date of this act, then the

state treasurer shall not consider any federal bond limitation

specified under section 1 a deemed waiver prior to 180 days prior

to the last day provided for issuing those bonds and may consider

any federal bond limitation specified in section 1 a deemed waiver

after 180 days prior to the deadline for issuing those bonds unless

the municipality or other entity that was allocated the bond

limitation does all of the following:

     (a) The municipality or other entity adopts a resolution

describing the project and indicating the intent to issue bonds for

the project.

     (b) The municipality or other entity provides communications

from a third party nationally recognized bond counsel attesting to

the viability of the project.

     (c) If applicable, the municipality or other entity provides

communications from a third party that is responsible for payment

of the bonds.

     (5) If the final deadline for issuing bonds is extended by

federal law enacted after the effective date of this act, then the

state treasurer may consider any federal bond limitation specified

in section 1 a deemed waiver after 120 days prior to the deadline

for issuing those bonds if the municipality or other entity that

was allocated the bond limitation has not issued the bonds and

other municipalities or other entities have need for additional

bond limitation authority.

     (6) If a deemed waiver has occurred under subsection (1) prior

to the enactment of any federal law to which the provisions of this

section would otherwise apply, any deemed waiver amounts that have

not been reallocated shall be returned to the municipality or other

entity and the provisions of subsections (4), (5), (7), and (8)

shall apply to the reallocated amounts.

     (7) A municipality or other entity to which a deemed waiver

applies may obtain a reallocation of the amount deemed waived if it

subsequently demonstrates a viable project to the state treasurer

and the amount deemed waived remains available for allocation.

     (8) The state treasurer shall make an effort to reallocate

bond limitations that have been waived voluntarily or have been

deemed waived for failing to comply with the provisions of

subsections (2) and (4) before reallocating bond limitations that

have been deemed waived under subsections (3) and (5).

     Sec. 3. In determining any allocation or reallocation under

this act, the state treasurer shall, to the extent practicable,

give priority to projects within a region in which an original

allocation existed or a remaining allocation exists and which

reflect a consensus or preference among entities to which original

allocations were provided. However, an entity to which an

allocation or reallocation is provided shall not issue bonds for a

project that benefits a person who has been convicted of a felony

if the conviction will have a material impact on the ability of the

person to participate in the project.

     Sec. 4. Any allocation or reallocation of bond limitation for

qualified school construction bonds, recovery zone economic

development bonds, or recovery zone facility bonds made by the

Michigan department of education, the Michigan department of

energy, labor, and economic growth, or the state treasurer prior to

the effective date of this act is hereby ratified and confirmed.

     Sec. 5. As used in this act, "municipality or other entity"

means a county, city, school district, or other entity that has

received a federal bond limitation allocation.