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2005 Senate Bill 406: Overhaul School Bond Loan Fund; provide new loan subsidies

Public Act 92 of 2005

Introduced by Sen. Irma Clark-Coleman (D) on April 21, 2005
To overhaul the School Bond Loan Fund program, essentially replacing it with a state revolving loan fund that school districts can borrow from to finance capital improvement projects (buildings). When introduced, the legislation was linked to a proposal to provide $500 million in school loan subsidies for certain kinds of projects, including creating smaller high schools in big cities, as part of Gov. Jennifer Granholm’s “Jobs Today” public works proposal. Borrowing through the School Bond Loan Fund allows schools to borrow at the same interest rate as the state. The current program does not require schools to repay loans on a regular schedule, which burdens the state with part of a school's interest expense. The bill is part of a legislative package comprised of Senate Bills 407 to 411. This bill would require districts whose millage revenue exceeds minumum debt service levels to repay the state more quickly, which would increase state revenue in the near term.   Official Text and Analysis.
Referred to the Senate Appropriations Committee on April 21, 2005
Reported in the Senate on May 31, 2005
With the recommendation that the substitute (S-3) be adopted and that the bill then pass.
Substitute offered in the Senate on June 7, 2005
To replace the previous version of the bill with one that does not include the "Jobs Today" public works debt proposal, exempts school districts with elections in 2005 from proposed new millage ballot language requirements, and revises penalties for fraud related to school bonds. The substitute also revises other details of proposed school bond revolving fund that do not change its substance as previously described.
The substitute passed by voice vote in the Senate on June 7, 2005
Amendment offered by Sen. Irma Clark-Coleman (D) on June 8, 2005
To authorize an exception to the restrictions that the new school bond revolving fund would place on new school bond debt assumed by certain school districts, Detroit in particular.
The amendment failed by voice vote in the Senate on June 8, 2005
Amendment offered by Sen. Valde Garcia (R) on June 8, 2005
To revise provisions related to the transition to the new revolving loan system.
The amendment passed by voice vote in the Senate on June 8, 2005
Passed 33 to 5 in the Senate on June 8, 2005.
    See Who Voted "Yes" and Who Voted "No".
To overhaul the School Bond Loan Fund program, essentially replacing it with a state revolving loan fund that school districts can borrow from to finance capital improvement projects (buildings). Borrowing through the School Bond Loan Fund allows schools to borrow at the same interest rate as the state. The current program does not require schools to repay loans on a regular schedule, which burdens the state with part of a school's interest expense. The bill is part of a legislative package comprised of Senate Bills 407 to 411. This bill would require districts whose millage revenue exceeds minumum debt service levels to repay the state more quickly.
Received in the House on June 8, 2005
Referred to the House Appropriations Committee on June 8, 2005
Reported in the House on June 28, 2005
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered in the House on June 29, 2005
To replace the previous version of the bill with one that revises details, and strikes out an additional $500 fee proposed for schools applying to use the new loan fund.
The substitute passed by voice vote in the House on June 29, 2005
Amendment offered by Rep. Bill McConico (D) on June 29, 2005
To authorize an exception to the restrictions that the new school bond revolving fund would place on new school bond debt assumed by certain school districts, Detroit in particular.
The amendment failed 51 to 55 in the House on June 29, 2005.
    See Who Voted "Yes" and Who Voted "No".
Amendment offered by Rep. John Moolenaar (R) on June 29, 2005
To clarify the definition of "qualified bonds" covered by the bill.
The amendment passed by voice vote in the House on June 29, 2005
Amendment offered by Rep. John Moolenaar (R) on June 29, 2005
To clarify that schools may pay off certain loans from the proposed fund sooner than the latest allowable date.
The amendment passed by voice vote in the House on June 29, 2005
Passed 106 to 1 in the House on June 29, 2005.
    See Who Voted "Yes" and Who Voted "No".
(same description)
To overhaul the School Bond Loan Fund program, essentially replacing it with a state revolving loan fund that school districts can borrow from to finance capital improvement projects (buildings). Borrowing through the School Bond Loan Fund allows schools to borrow at the same interest rate as the state. The current program does not require schools to repay loans on a regular schedule, which burdens the state with part of a school's interest expense. The bill is part of a legislative package comprised of Senate Bills 407 to 411. This bill would require districts whose millage revenue exceeds minumum debt service levels to repay the state more quickly.
Received in the Senate on June 30, 2005
Passed 33 to 3 in the Senate on June 30, 2005.
    See Who Voted "Yes" and Who Voted "No".
To concur with the House-passed version of the bill.
Signed by Gov. Jennifer Granholm on July 20, 2005

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