State finance: authorities; outstanding obligations of the state building authority; provide exception to the limit of. Amends sec. 8 of 1964 PA 183 (MCL 830.418).
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill modifies the state building authority’s ability to issue revenue obligations to finance state facilities. Specifically, it removes a limit on the total amount of outstanding obligations the authority can have, allowing for greater flexibility in financing projects. The bill also clarifies how proceeds from these obligations can be used and ensures they are primarily repaid with rental income from the facilities, along with other approved security.
Key provisions
- Removes a limit on the total principal amount of outstanding revenue obligations the state building authority can have.
- Allows revenue obligations to be used to cover costs including legal fees, interest, and reserve funds.
- Specifies that revenue obligations are primarily repaid with true rental income.
- Clarifies how proceeds from revenue obligations can be used for facility construction, renovation, and refunds.
- Permits the issuance of refunding revenue obligations to reduce debt.
- Authorizes the use of a reserve fund to cover principal, interest, and redemption premiums.
- Allows the board to determine interest rates and other terms of obligations.
- Establishes a process for creating and managing interim financing pools.
Who is affected
- State Building Authority
- State Agencies
- Taxpayers (indirectly through state spending)
- Bondholders
Bill text
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Document of record
- Version
- Senate Introduced Bill
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