Legislative Analysis
Phone: (517) 373-8080
STATE BUILDING AUTHORITY POOL OBLIGATIONS
http://www.house.mi.gov/hfa
House Bill 4842 (H-1) as passed by the House Analysis available at
Sponsor: Rep. Natalie Price http://www.legislature.mi.gov
1st Committee: Insurance and Financial Services
2nd Committee: Appropriations
Complete to 4-18-24
SUMMARY:
House Bill 4842 would amend 1964 PA 183, which regulates the State Building Authority, to
eliminate the requirement that pools of obligations issued by the authority be fully payable to
the creditor or creditors within five years.
The State Building Authority is responsible for acquiring, constructing, furnishing, equipping,
and renovating buildings and equipment for use by the state, including public universities and
community colleges. 1 The authority is allowed to issue revenue obligations for various
purposes, such as acquiring or constructing buildings, up to an aggregate principal amount of
$2.7 billion.
The act currently allows the authority to authorize a pool of obligations, which may relate to
one or more projects, by resolution to meet interim financing needs. The obligations issued
under the pool must mature (i.e., be fully payable to the creditor or creditors) not later than five
years after the pool is established.
The bill would eliminate a requirement that obligations issued under a pool mature within five
years and instead provide that projects placed in a pool remain in it for a duration permitted
under tax rules and laws.
MCL 830.418
BRIEF DISCUSSION:
According to committee testimony in support of the bill, the requirement to reissue a new series
of obligations every five years is unnecessary and adds unnecessary costs for the state.
FISCAL IMPACT:
House Bill 4842 would have a potential reduction of costs for state government and no fiscal
impact on local government. The Department of Treasury notes that some staff time and
resources would be saved every five years through eliminating the need to have the pool of
obligations mature after a five-year period. Department resources are used to have the State
Building Authority’s credit rating reevaluated when a new pool of obligations is issued. As the
bill would lengthen the amount of time between the need to issue a new pool of obligations,
fewer resources would need to be spent on preparing new credit rating evaluations.
1
https://www.michigan.gov/treasury/finance/sba/state-building-authority
House Fiscal Agency Page 1 of 2
POSITIONS:
A representative of the Department of Treasury testified in support of the bill. (11-1-23)
Legislative Analyst: Alex Stegbauer
Fiscal Analysts: Perry Zielak
Viola Bay Wild
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4842 (H-1) as passed by the House Page 2 of 2


Statutes affected:
Substitute (H-1): 830.418
House Introduced Bill: 830.418
As Passed by the House: 830.418
As Passed by the Senate: 830.418
House Concurred Bill: 830.418
House Enrolled Bill: 830.418