2015 House Bill 4331 / Public Act 115

Increase municipal and school “emergency loan” funding

Introduced in the House

March 10, 2015

Introduced by Rep. Brad Jacobsen (R-46)

To increase from $50 million to $100 million the amount allocated through 2018 for “financial emergency” loans from the state to public school districts, and increase from $35 million to $85 million the amount of such loans to cities, townships, villages, and counties.

Referred to the Committee on Financial Liability Reform

March 25, 2015

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

April 23, 2015

Amendment offered by Rep. Robert Wittenberg (D-27)

To remove an effective date starting 90 days after the bill is enacted.

The amendment failed by voice vote

Amendment offered by Rep. Patrick Somerville (R-23)

To prohibit state loans authorized by this particular law from going to the Detroit School District.

The amendment passed by voice vote

Amendment offered by Rep. Patrick Somerville (R-23)

To remove an effective date starting 90 days after the bill is enacted.

The amendment passed by voice vote

Amendment offered by Rep. Patrick Somerville (R-23)

To reduce the proposed loan caps to $48 million for local governments and $70 million for school districts.

The amendment passed by voice vote

Amendment offered by Rep. Patrick Somerville (R-23)

To "dock" state school aid or other payments to a school district or local government that becomes delinquent repaying loans authorized by this law, in an amount equal to the delinquent interest and 5 percent of the loan principle.

The amendment passed by voice vote

Passed in the House 64 to 45 (details)

To increase from $50 million to $70 million the amount allocated through 2018 for “financial emergency” loans from the state to public school districts, and increase from $35 million to $48 million the amount of such loans to cities, townships, villages, and counties. The bill would also place minimum interest rates and/or durations on these loans, and give the state to penalize borrowers for missing payments. The bill is linked to House Bills 4225 and 4226, which are designed to create an overspending public school “early warning system”.

Received in the Senate

April 28, 2015

Referred to the Committee on Local Government

June 10, 2015

Reported without amendment

With the recommendation that the bill pass.

June 30, 2015

Amendment offered by Sen. Coleman Young (D-1)

To remove a provision prohibiting loans authorized by this particular law to the Detroit school district.

The amendment failed by voice vote

Passed in the Senate 25 to 10 (details)

To increase from $50 million to $70 million the amount allocated through 2018 for “financial emergency” loans from the state to public school districts, and increase from $35 million to $48 million the amount of such loans to cities, townships, villages, and counties. The bill would also place minimum interest rates and/or durations on these loans, and give the state to penalize borrowers for missing payments. The bill is linked to House Bills 4225 and 4226, which are designed to create an overspending public school “early warning system”.

Signed by Gov. Rick Snyder

July 7, 2015