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HB-4572, As Passed House, May 3, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 4572

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending section 5204 (MCL 324.5204), as added by 2002 PA 397.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 5204. (1) The strategic water quality initiatives 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. The

authority shall act as fiscal agent for the fund in accordance with

the shared credit rating act, 1985 PA 227, MCL 141.1051 to

141.1076.

(3) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

(4) The authority in consultation with the department shall

expend money from the fund, upon appropriation, only for ~~loans and~~

~~for~~ the following:

(a) Grants under this section.

(b) Loans under section 5202.

administering the fund.

(5) The fund may be pledged as security for bonds to be issued

by the authority for the purpose of funding loans if authorized by

the state administrative board.

(6) [except as provided in subsection (9),] The department shall

establish a grant program that

provides grants to governmental units to cover the costs of design,

engineering, and professional consulting when developing the

project plan in applying for loan assistance from the state water

pollution control revolving fund. Grant funds shall not be used for

public notice activities, general local government administration

costs, or costs associated with public education of the proposed

project. A governmental unit shall not receive more than an

accumulated total of $3,000,000.00 in grants under this section.

The department shall establish an application and review process

for considering grant applications under this section. The

application shall contain the information required by the

department. Within 60 days after receipt of an administratively

complete grant application, the department shall notify the

applicant whether the application is approved or rejected. If the

application is rejected, the department shall, in writing, notify

the applicant of the reasons why the application was rejected. If

the department approves a grant under this section, the department

shall enter into a grant agreement with the grant recipient prior

to releasing the grant. The grant agreement shall contain terms

approved by the department and a requirement that the grant

recipient repay the grant, with interest at a rate not to exceed 8%

per year, to the authority if any of the following occur:

(a) If the grant recipient fails to submit an administratively

complete loan application for assistance from the state water

pollution control revolving fund within 12 months after a grant is

released.

(b) If the grant recipient does not use funding from the state

water pollution control revolving fund for the project after

receiving approval for a loan from the state water pollution

control revolving fund.

pollution control revolving fund, but fails to make substantial

progress toward implementing the project for which the loan was

issued within 18 months after the issuance of the loan.

(7) If an applicant's administratively complete application

for a loan from the state water pollution control revolving fund is

rejected, the grant recipient is not required to repay a grant

under subsection (6).

(8) As used in this section, "state water pollution control

revolving fund" means the state water pollution control revolving

fund established in section 16a of the shared credit rating act,