SB-1485, As Passed House, December 10, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1485

 

 

September 11, 2008, Introduced by Senator JELINEK and referred to the Committee on Appropriations.

 

 

 

      A bill to amend 1987 PA 231, entitled

 

"An act to create a transportation economic development fund in

the state treasury; to prescribe the uses of and distributions

from this fund; to create the office of economic development and

to prescribe its powers and duties; to prescribe the powers and

duties of the state transportation department, state

transportation commission, and certain other bodies; and to

permit the issuance of certain bonds,"

 

by amending section 11 (MCL 247.911), as amended by 2007 PA 168.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 11. (1) Bonds may be issued as authorized by the

 

 2  commission for the purpose of funding projects under this act in

 

 3  the manner provided in sections 18b and 18k of 1951 PA 51, MCL

 

 4  247.668b and 247.668k, and in accordance with the adopted

 

 5  policies of the commission. Bonds shall not be committed for any

 

 6  project under this act until the requirements set forth under

 


 1  section 3(1) have been satisfied.

 

 2        (2) Projects shall be funded in the following categories in

 

 3  the following amounts:

 

 4        (a) The first $5,000,000.00 of the fund shall be distributed

 

 5  each fiscal year to each qualified county in a percentage amount

 

 6  equal to the same percentage amount that the number of acres of

 

 7  commercial forest, national park, and national lakeshore land in

 

 8  each qualified county bears to the total number of acres of

 

 9  commercial forest, national park, and national lakeshore land in

 

10  all qualified counties in this state. Revenue distributed under

 

11  this subdivision shall be used for the construction or

 

12  reconstruction of roads.

 

13        (b) The next $2,500,000.00 of the fund shall be distributed

 

14  each fiscal year for improvements to roads and streets that are

 

15  eligible for federal aid in cities and villages having a

 

16  population of 5,000 or greater within rural counties.

 

17        (3) Of the balance remaining after funding projects pursuant

 

18  to subsection (2), projects shall be funded in the categories

 

19  described in section 9 based on the following percentages:

 

20        (a) Except as otherwise provided in this subdivision, 50%

 

21  for economic development road projects in any of the targeted

 

22  industries. For the period beginning October 1, 2006 2007 and

 

23  continuing through September 30, 2007 2008, allocations made to

 

24  targeted industries under this subdivision shall be reduced by

 

25  $6,000,000.00 $13,000,000.00.

 

26        (b) 25% for projects to reduce congestion on county primary

 

27  and city major streets within urban counties including advanced

 


 1  traffic management systems. The funds shall be distributed to

 

 2  counties with populations in excess of 400,000 in accordance with

 

 3  the following formula:

 

 

               Population              Percentage of Funds

         1,750,000 or more                      16%

         1,000,000 to 1,750,000                 40%

           600,000 to 1,000,000                 20%

           400,000 to 600,000                   24%

 

 

 9        When 2 or more counties occupy the same category, the funds

 

10  shall be divided equally.

 

11        Projects funded under this category shall be used for the

 

12  widening of county primary roads or city major streets or for

 

13  advanced traffic management systems in eligible counties.

 

14        (c) 25% for development projects within rural counties.

 

15  These revenues shall be distributed for the improvement of rural

 

16  primary roads in rural counties and major streets in cities and

 

17  villages with a population of 5,000 or less. Funds distributed

 

18  under this subdivision shall be allocated by the commission to

 

19  the regional rural task force areas defined in section 12a in the

 

20  same proportion that the rural primary mileage of the regional

 

21  rural task force area bears to the total rural primary mileage of

 

22  all counties. Each rural county shall be credited with an

 

23  allocation in the proportion that the county's rural primary

 

24  mileage is to the total rural primary mileage of those rural

 

25  counties within the same regional rural task force area. Projects

 

26  funded under this subdivision shall be limited to upgrading rural

 


 1  primary roads and major streets to create an all-season road

 

 2  network.

 

 3        (4) The obligation authority for any federal funds allocated

 

 4  under section 10 of 1951 PA 51, MCL 247.660, shall be distributed

 

 5  equally among urban task forces and regional rural task forces

 

 6  according to the distribution formula outlined in subsection

 

 7  (3)(c) and (d). An additional 1.5% of the obligation authority

 

 8  for federal funds identified in section 10 of 1951 PA 51, MCL

 

 9  247.660, shall be distributed among the regional rural task

 

10  forces according to the distribution formula outlined in

 

11  subsection (3)(d). These funds shall be obligated and used

 

12  consistent with section 10 of 1951 PA 51, MCL 247.660.