MI SB0822

Creates a local emergency financial assistance loan board within the Department of Treasury composed of the state treasurer, director of licensing and regulatory affairs, and director of technology, management, and budget, operating independently except for budgeting and procurement functions.

Authorizes the board to make loans to municipalities up to $10,000,000 annually per state fiscal year after September 30, 2018, with individual municipality caps of $4,000,000, and special provisions for school districts up to $150,000,000 for transitional operating costs.

Requires municipalities to demonstrate a projected general fund deficit, prior issuance of tax anticipation or revenue sharing notes within 18 months, meet specific revenue growth or property valuation conditions, and submit a 5-year balanced budget plan to be eligible for loans.

Establishes loan terms with interest rates at minimum the municipal 10-year rate for fixed-rate loans and minimum 2.5% for variable-rate loans, with principal repayment over no more than 30 years.

Repeals sections 5 and 8 of the 1980 Emergency Municipal Loan Act and conditions the act's effectiveness on enactment of House Bill 5384.