SCRAP TIRE REGULATORY FUND:

ALLOW CAPITAL EXPENDITURE GRANTS

House Bill 6235

Sponsor:  Rep. Chris Kolb

Committee:  Land Use and Environment

Complete to 11-9-04

A SUMMARY OF HOUSE BILL 6235 AS INTRODUCED 9-22-04

House Bill 6235 would amend the Natural Resources and Environmental Protection Act (NREPA) to allow capital expenditure grants from the Scrap Tire Regulatory Fund.  The bill would define "capital expenditure" to mean an expenditure for land and improvements, transportation improvements, infrastructure improvements, or equipment acquisition intended to enhance or improve the overall value of scrap tires or scrap tire processed materials into a product of higher value.

Currently under the law, money in the Scrap Tire Regulatory Fund can be used, upon appropriation, for 1) administrative costs at the Department of Environmental Quality (DEQ) associated with scrap tire clean-up (including the employment of no more than 11 full-time positions); 2) administrative costs at the Office of the Secretary of State associated with the collection of the tire disposal surcharge; and 3) for the cleanup or collection of abandoned scrap tires, and scrap tires at collection sites (including grants to users of scrap tire processed material, as well as grants to end-users who receive scrap tires or tire chips).  Under House Bill 6235, these provisions would be retained. 

MCL 324.16901 and 324.16908

FISCAL IMPACT:

This bill would not have a fiscal impact on the State or on local governmental units.

                                                                                           Legislative Analyst:   J. Hunault

                                                                                                  Fiscal Analyst:   Kirk Lindquist

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.