SB-0794, As Passed House, December 13, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 794

 

 

September 20, 2007, Introduced by Senator JELINEK and referred to the Committee on Appropriations.

 

 

 

      A bill to amend 1987 PA 231, entitled

 

"An act to create a transportation economic development fund in

the state treasury; to prescribe the uses of and distributions

from this fund; to create the office of economic development and

to prescribe its powers and duties; to prescribe the powers and

duties of the state transportation department, state

transportation commission, and certain other bodies; and to

permit the issuance of certain bonds,"

 

by amending section 11 (MCL 247.911), as amended by 1993 PA 149.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 11. (1) Bonds may be issued as authorized by the

 

 2  commission for the purpose of funding projects under this act in

 

 3  the manner provided in sections 18b and 18k of Act No. 51 of the

 

 4  Public Acts of 1951, being sections 247.668b and 247.668k of the

 

 5  Michigan Compiled Laws 1951 PA 51, MCL 247.668b and 247.668k, and

 

 6  in accordance with the adopted policies of the commission. Bonds

 

 7  shall not be committed for any project under this act until the

 

 8  requirements set forth under section 3(1) have been satisfied.

 


 1        (2) Projects shall be funded in the following categories in

 

 2  the following amounts:

 

 3        (a) The first $5,000,000.00 of the fund shall be distributed

 

 4  each fiscal year to each qualified county in a percentage amount

 

 5  equal to the same percentage amount that the number of acres of

 

 6  commercial forest, national park, and national lakeshore land in

 

 7  each qualified county bears to the total number of acres of

 

 8  commercial forest, national park, and national lakeshore land in

 

 9  all qualified counties in this state. Revenue distributed under

 

10  this subdivision shall be used for the construction or

 

11  reconstruction of roads.

 

12        (b) The next $2,500,000.00 of the fund shall be distributed

 

13  each fiscal year for improvements to roads and streets that are

 

14  eligible for federal aid in cities and villages having a

 

15  population of 5,000 or greater within rural counties.

 

16        (3) Of the balance remaining after funding projects pursuant

 

17  to subsection (2), projects shall be funded in the categories

 

18  described in section 9 based on the following percentages:

 

19        (a) Except as otherwise provided in this subdivision, 50%

 

20  for economic development road projects in any of the targeted

 

21  industries. For the period beginning October 1, 2006 and

 

22  continuing through September 30, 2007, allocations made to

 

23  targeted industries under this subdivision shall be reduced by

 

24  $6,000,000.00.

 

25        (b) (c) 25% for projects to reduce congestion on county

 

26  primary and city major streets within urban counties including

 

27  advanced traffic management systems. The funds shall be

 


 1  distributed to counties with populations in excess of 400,000 in

 

 2  accordance with the following formula:

 

 

               Population                Percentage of Funds

         1,750,000 or more                       16%

         1,000,000 to 1,750,000                  40%

           600,000 to 1,000,000                  20%

           400,000 to 600,000                    24%

 

 

 8        When 2 or more counties occupy the same category, the funds

 

 9  shall be divided equally.

 

10        Projects funded under this category shall be used for the

 

11  widening of county primary roads or city major streets or for

 

12  advanced traffic management systems in eligible counties.

 

13        (c) (d) 25% for development projects within rural counties.

 

14  These revenues shall be distributed for the improvement of rural

 

15  primary roads in rural counties and major streets in cities and

 

16  villages with a population of 5,000 or less. Funds distributed

 

17  under this subdivision shall be allocated by the commission to

 

18  the regional rural task force areas defined in section 12a in the

 

19  same proportion that the rural primary mileage of the regional

 

20  rural task force area bears to the total rural primary mileage of

 

21  all counties. Each rural county shall be credited with an

 

22  allocation in the proportion that the county's rural primary

 

23  mileage is to the total rural primary mileage of those rural

 

24  counties within the same regional rural task force area. Projects

 

25  funded under this subdivision shall be limited to upgrading rural

 

26  primary roads and major streets to create an all-season road

 


 1  network.

 

 2        (4) The obligation authority for any federal funds allocated

 

 3  under section 10 of Act No. 51 of the Public Acts of 1951, being

 

 4  section 247.660 of the Michigan Compiled Laws 1951 PA 51, MCL

 

 5  247.660, shall be distributed equally among urban task forces and

 

 6  regional rural task forces according to the distribution formula

 

 7  outlined in subsection (3)(c) and (d). An additional 1.5% of the

 

 8  obligation authority for federal funds identified in section 10

 

 9  of Act No. 51 of the Public Acts of 1951 1951 PA 51, MCL 247.660,

 

10  shall be distributed among the regional rural task forces

 

11  according to the distribution formula outlined in subsection

 

12  (3)(d). These funds shall be obligated and used consistent with

 

13  the provisions of section 10 of Act No. 51 of the Public Acts of

 

14  1951 1951 PA 51, MCL 247.660.