HB-5679, As Passed Senate, September 7, 2010
December 10, 2009, Introduced by Rep. Gonzales and referred to the Committee on Appropriations.
A bill to amend 1976 PA 295, entitled
"State transportation preservation act of 1976,"
by amending section 15a (MCL 474.65a), as added by 2002 PA 747.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 15a. (1) The rail infrastructure loan fund is created to
implement the rail infrastructure loan program in the state
transportation department. Subject to the maximum established by
this section, the legislature shall appropriate an amount not to
exceed $3,000,000.00 each year to the rail infrastructure loan fund
until the maximum in subsection (5) is met. Interest earned and
repayments received and any penalties assessed and received for
failure to repay loans on time shall be credited to the fund. The
rail infrastructure loan fund is a self-sustaining revolving loan
fund to finance construction and improvements that are designed for
improvements to freight railroad infrastructure for the purposes of
preserving, rebuilding, rehabilitating, or constructing facilities
or improvements on railroad operating property or property adjacent
to railroad operating property, in this state. Construction is
limited to those facilities or improvements required to continue
rail service on a particular line or to improve the efficiency and
safety of existing rail service. If the department determines that
the public interest requires, a loan may be made to eligible
applicants provided by subsection (2) to acquire rail property for
the purpose of preserving freight rail service or improving the
efficiency of existing freight rail service. An eligible applicant
described in subsection (2) may apply for a loan from the fund for
the purposes described in this section or for use as nonfederal
match for any federal rail infrastructure loan program.
(2) The fund shall provide noninterest bearing loans for the
purposes described in this section. The department shall evaluate
loan applications according to the relative merit of the project in
conjunction with program goals and make recommendations to the
state transportation commission regarding each loan application.
The state transportation commission shall approve or deny the loans
and establish loan disbursement and payment schedules based on the
needs of the work in progress. A loan shall fund not more than 90%
of the rail portion of project costs, and the loan repayment period
shall not exceed 10 years. A county, city, township, village,
economic development corporation, and railroad and current or
potential users of freight railroad services are eligible
applicants.
(3)
At Except as otherwise provided
in this subsection, at the
end of each fiscal year, unexpended funds shall remain in the rail
infrastructure loan fund and shall be available for the purposes of
the program in the succeeding fiscal year. For the fiscal year
ending September 30, 2010, $5,700,000.00 in unobligated fund
balance shall be deposited in the comprehensive transportation
fund. Amounts in the fund may be combined by the state treasurer
with other amounts in the state treasury for purposes of cash
management. The earnings from the investment of the fund shall
accrue to the fund. The fund shall be accounted for separately from
other funds of the state. The fund may receive gifts or grants for
the purposes of the fund. Any penalties assessed and received for
failure to repay a loan on time and money that is received by this
state as repayment for rail infrastructure loans made pursuant to
this program shall remain within the rail infrastructure loan fund
and shall only be used for the purposes of rail infrastructure
loans as provided in this section.
(4) By December 31 each year, the department shall report to
the house and senate appropriations subcommittees on transportation
and the house and senate fiscal agencies the following information,
as appropriate, regarding this section and on a separate report the
rail freight fund under section 17:
(a) The beginning fund balance of each fund, revenues
received, expenditures and encumbrances incurred, and the ending
fund balance for each fund for the preceding fiscal year.
(b) The projects funded during the preceding fiscal year.
(c) The status of projects funded in the preceding fiscal
years including the degree to which the projects funded have
achieved the objectives of this act.
(d) Status of all outstanding loans.
(e) Any other information considered necessary by the
department.
(5) The state's total contribution to the rail infrastructure
loan fund shall not exceed $15,000,000.00 exclusive of interest and
any penalties assessed, received, and credited to the fund.