MI SB0618

Amends the School Bond Qualification and Approval Act to modify interest rate calculations for qualified loans that school districts borrow from the state to pay principal and interest on qualified bonds.

Establishes three options for interest rates on qualified loans: the average annual cost of funds plus 0.125% (computed at least annually), a lower rate necessary to maintain federal tax-exempt status, or a higher rate necessary to prevent contract impairment.

Maintains existing provisions requiring school districts to levy computed millage until qualified loans are fully repaid and allows the state treasurer to waive millage requirements if financially beneficial and not reducing levies below 7 mills.

Sets mandatory repayment dates for qualified loans at 72 months after the final maturity date of the underlying qualified bonds for loans issued after July 20, 2005.

Takes effect immediately upon enactment on March 29, 2022.