SB-0353, As Passed Senate, June 14, 2005

SUBSTITUTE FOR

SENATE BILL NO. 353

     A bill to operate certain programs in the Michigan strategic

fund; and to impose certain duties and responsibilities on certain

state employees and public employees.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. As used in this act:

     (a) "Community development block grant program" means the

federal community development block grant program described in

title I of the housing and community development act of 1974, 42

USC 5301 to 5321, that is operated by the Michigan strategic fund.

     (b) "Michigan strategic fund" means the Michigan strategic

fund created in the Michigan strategic fund act, 1984 PA 270, MCL

125.2001 to 125.2093.

     (c) "Rural area" means a county with a population of 90,000 or

Senate Bill No. 353 as amended June 14, 2005

less.

     Sec. 2. (1) In operating and administering the community

development block grant program, to the extent allowed by law and

except as provided in subsection (2), the Michigan strategic fund

shall provide that not less than 55% of the community development

block grant program funds shall be awarded for projects located in

rural areas. Projects that create or retain jobs shall be given

priority.

     (2) If there are insufficient applicants for projects in rural

areas, the Michigan strategic fund may award community development

block grant program funds for projects not in rural areas <<only for

including, but not limited to,>>

the following projects:

     (a) Economic development infrastructure.

     (b) Economic development planning.

     (c) Downtown and gateway development.

     (d) Economic development grants and loans.

     (e) Broadband telecommunications development.

     (3) The Michigan strategic fund shall not require matching

funds greater than 5% of the cost of the project for projects

located in rural areas. Projects that provide matching funds

greater than 5% of the cost of the project may be given priority.