COUNTY LOANS TO TOWNSHIPS S.B. 729:
SUMMARY AS ENACTED
Senate Bill 729 (as enacted) PUBLIC ACT 77 of 2016
Sponsor: Senator Wayne Schmidt
Senate Committee: Appropriations
House Committee: Local Government
CONTENT
The bill amended Public Act 156 of 1851, which defines the powers and duties of county boards of commissioners, to authorize a county board of commissioners to loan funds to a township in the county for the purpose of funding a road construction project or providing matching funds for a joint project between the county and the township. Such a loan may not exceed a term of 10 years.
The bill took effect on April 12, 2016.
MCL 46.11 Legislative Analyst: Suzanne Lowe
FISCAL IMPACT
The bill will have no fiscal impact on the State.
The bill will have no direct impact on local units of government. The bill may result in lower costs for local governments, in the long term, with regard to road construction and maintenance. Allowing county boards to loan funds to townships for road construction projects or joint projects could result in the earlier completion of some projects. Since road repair costs can increase exponentially over time, and counties often rely on townships to participate in funding road projects, those additional costs may be avoided to the extent that 1) townships lack funding for projects that they would otherwise engage in, and 2) counties provide loans to those townships.
Fiscal Analyst: Michael Siracuse
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.