TRANSPORTATION ECON. DEV'T FUND                                                               S.B. 25:

                                                                                  SUMMARY OF INTRODUCED BILL

                                                                                                         IN COMMITTEE

Senate Bill 25 (as introduced 1-22-15)

Sponsor:  Senator Mike Kowall

Committee:  Economic Development

Date Completed:  2-3-15

CONTENT

The bill would amend Public Act 231 of 1987, which provides for the Transportation Economic Development Fund, to add medical research or medical care to the list of targeted industries in the category of economic development road projects.

The Act authorizes the State Transportation Commission to approve funding from the Transportation Economic Development Fund for various categories of projects. The definition of "project" includes transportation road construction or improvement, transit-oriented development, and a transit-oriented facility. A project must relate to one of the categories listed in the Act

The categories include economic development road projects in any of the following targeted industries:

-- Agriculture or food processing

-- Tourism

-- Forestry

-- High technology research

-- Manufacturing

-- Mining

-- Office centers of at least 50,000 square feet

The bill would add medical research or medical care to the list of targeted industries.

MCL 247.909

BACKGROUND

Grants from the Transportation Economic Development Fund are awarded in five categories. According to the Fund's 2014 Annual Report, the categories are listed below along with the most recent fiscal year (FY) grants approved in each category (FY 2012-13 for Category E and FY 2013-14 for all others):

-- Category A: Road projects related to target industry development and redevelopment opportunities ($18.6 million).

-- Category C: Road improvements in urban counties to reduce traffic congestion ($51.0 million).

-- Category D: Road improvements in rural counties to create an all-season road network ($50.2 million).

-- Category E: Road improvements for the development of commercial forests in the State ($5.0 million).

-- Category F: Road improvements that support an all-season road network in the urban areas of rural counties ($2.7 million).

                                                                            Legislative Analyst:  Ryan M. Bergan

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

                                                                                    Fiscal Analyst:  Glenn Steffens

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.