February 8, 2017, Introduced by Rep. Kosowski and referred to the Committee on Natural Resources.
A bill to amend 1976 PA 399, entitled
"Safe drinking water act,"
(MCL 325.1001 to 325.1023) by adding section 11e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11e. (1) The drinking water emergency loan fund is
created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year remains
in the fund and does not lapse to the general fund.
(4) The department shall be the administrator of the fund for
auditing purposes.
(5) The department shall expend money from the fund, upon
appropriation, only for interest-free emergency loans to owners and
operators of public water supplies for the emergency remediation of
contamination or a threat of contamination.
(6) The department shall issue a loan under this section, upon
application from the owner or operator of a public water supply,
only if both of the following conditions are met:
(a) The public water supply has no other source of potable
drinking water.
(b) The owner or operator of the public water supply has not
been able to secure other sources of funding to address the
contamination or threat of contamination.
(7) Prior to releasing any loan funds, the department shall
enter into a loan agreement with the owner or operator of the
public water supply that contains the following terms:
(a) The principal of the loan amount must not exceed
$25,000.00.
(b) The loan must be repaid within 12 months.
(c) The owner or operator has agreed to submit information to
the department sufficient for the department to conduct a financial
background check to ensure that the owner or operator can meet the
repayment terms of the loan.
(d) Other terms considered necessary by the department.
(8) As used in this section:
(a) "Fund" means the drinking water emergency loan fund
created in subsection (1).
(b) "Threat of contamination" means a condition that prevents
a public water supply from supplying adequate quantities of potable
water that is in compliance with state drinking water standards to
its water users.