June 27, 2008, Introduced by Reps. Proos, Nitz, Acciavatti, Palsrok, Elsenheimer, Horn, Walker, Marleau, LaJoy, Booher, Ball, Moolenaar, Wenke, Hansen, Sheltrown, Pastor, Schuitmaker, Meekhof, LeBlanc, Huizenga, Pearce, Moore and Brown and referred to the Committee on Tourism, Outdoor Recreation and Natural Resources.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding part 794; and to make an
appropriation.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 794 EMERGENCY WATER ACCESS
Sec. 79401. As used in this part:
(a) "Bottomland" means the land area of a water body that lies
below the ordinary high-water mark and that may or may not be
covered by water.
(b) "Dredging" means the removal of sediments from bottomland.
(c) "Dredging costs" means the costs associated with dredging
including costs of removal, disposal, and testing of sediments, and
the costs associated with obtaining necessary permits required to
conduct dredging.
(d) "Fund" means the emergency water access fund created in
section 79403.
(e) "Ordinary high-water mark" means either of the following:
(i) For an inland lake or stream, that term as it is defined in
section 30101.
(ii) For the Great Lakes, the ordinary high-water mark as
described in section 32502.
(f) "Water body" means the Great Lakes and their connecting
waters and inland lakes and streams as defined in section 30101.
Sec. 79402. (1) By January 1, 2009, the department shall
establish a loan program with money in the fund that will provide
loans to counties for dredging costs necessitated by low water
levels. The program shall do all of the following:
(a) Provide loans for projects to dredge navigable waters that
begin on or after January 1, 2009.
(b) Provide loans on a first-come-first-served basis to
counties that document the need for dredging of navigable waters to
provide safe passage for watercraft.
(c) Limit the maximum amount of a loan to a county to 50% of
the total project cost.
(d) Limit the maximum amount of a loan to a county to
$50,000.00.
(e) Charge interest on a loan in an amount equal to the amount
charged for loans from the state water pollution control revolving
fund established under section 16a of the shared credit rating act,
1985 PA 227, MCL 141.1066a.
(f) Require that a loan be repaid in not more than 7 years.
(g) Require that the first installment of repayment on a loan
begin 1 year after the date of issuance of the loan.
(2) A county that wishes to apply for a loan under this
section shall submit an application to the department on a form
prescribed by the department and containing the information
required by the department. At a minimum, the application shall
contain all of the following information:
(a) The loan amount requested.
(b) A description of the proposed dredging project.
(c) The dredging costs of the proposed dredging project.
(d) A description of how the dredging costs were determined.
(e) Evidence of the financial capability of the county to
repay the loan amount requested.
(3) The department shall approve a loan under this section if
all of the following conditions are met:
(a) The department determines that dredging is necessary to
provide safe passage for watercraft.
(b) The department determines, in consultation with the
department of treasury, that the applicant is financially capable
of repaying the loan.
(c) The department determines that the applicant will be able
to complete the dredging project in full compliance with this part.
(4) Upon approval of a loan under subsection (3), the
department shall enter into a loan agreement with the recipient
that contains terms and conditions as required by the department.
The department shall require as part of the loan agreement that the
loan recipient submit evidence to the department that the loan
amount was used to pay for dredging costs. The loan agreement shall
contain penalties for default on the loan.
(5) All money received by the department for the repayment of
a loan issued under this section shall be forwarded to the state
treasurer for deposit into the fund.
Sec. 79403. (1) The emergency water access 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) The department shall be the administrator of the fund for
auditing purposes.
(4) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(5) Money from the fund shall be expended, upon appropriation,
only for the following purposes:
(a) Loans to counties for dredging costs as provided in this
part.
(b) The department's costs of administering the loan program
created under this part. However, not more than 3% of the money
expended from the fund in any state fiscal year shall be expended
for the purpose of this subdivision.
Sec. 79404. (1) The department shall not approve a loan from
the fund after January 1, 2015.
(2) Prior to January 1, 2014, the department, in consultation
with the department of treasury, shall prepare and submit to the
legislature a detailed report that evaluates the loan program
provided for in this part and recommends whether a need exists in
the state to continue the loan program beyond January 1, 2015. The
department may include recommendations in this report for statutory
changes that would improve the loan program.
Sec. 79405. (1) For the fiscal year ending September 30, 2009,
there is appropriated from the general fund to the fund the sum of
$5,000,000.00.
(2) For the fiscal year ending September 30, 2009, there is
appropriated from the fund to the department the sum of
$5,000,000.00 to be used to provide loans under this part.
(3) Any money appropriated to the department under subsection
(2) that is not expended by September 30, 2009 shall lapse to the
fund.