SB-1243, As Passed House, December 13, 2012
September 11, 2012, Introduced by Senator PAPPAGEORGE 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 2011 PA 145.
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
7 section 3(1) have been satisfied.
8 (2) After the payment of interest and principal on bonds
1 issued under this act and the appropriation for costs of
2 administration of the fund as provided under this act, fund
3 revenue shall be annually appropriated as follows:
4 (a) The first $5,000,000.00 for a forest roads program.
5 Forest roads program funds shall be distributed each fiscal year
6 to each qualified county in a percentage amount equal to the same
7 percentage amount that the number of acres of commercial forest,
8 national park, and national lakeshore land in each qualified
9 county bears to the total number of acres of commercial forest,
10 national park, and national lakeshore land in all qualified
11 counties in this state. Revenue distributed under this
12 subdivision shall be used for the construction or reconstruction
13 of roads.
14 (b) The next $2,500,000.00 of the fund shall be distributed
15 each fiscal year for improvements to roads and streets that are
16 eligible for federal aid in cities and villages having a
17 population of 5,000 or greater within rural counties.
18 (3) Of the balance remaining after funding projects pursuant
19 to subsection (2), projects shall be funded in the categories
20 described in section 9 based on the following percentages:
21 (a) Except as otherwise provided in subsection (4), 50% for
22 economic development road projects in any of the targeted
23 industries.
24 (b) 25% for projects to reduce congestion on county primary
25 and city major streets within urban counties including advanced
26 traffic management systems. The funds shall be distributed to
27 counties with populations in excess of 400,000 in accordance with
1 the following formula:
2 Population Percentage of Funds
3 1,750,000 or more 16%
4 1,000,000 to 1,749,999 40%
5 650,001 to 999,999 20%
6 400,000 to 650,000 24%
7 When 2 or more counties occupy the same category, the funds
8 shall be divided equally.
9 Projects funded under this category shall be used for the
10 widening of county primary roads or city major streets or for
11 advanced traffic management systems in eligible counties.
12 (c) 25% for development projects within rural counties.
13 These revenues shall be distributed for the improvement of rural
14 primary roads in rural counties and major streets in cities and
15 villages with a population of 5,000 or less. Funds distributed
16 under this subdivision shall be allocated by the commission to
17 the regional rural task force areas defined in section 12a in the
18 same proportion that the rural primary mileage of the regional
19 rural task force area bears to the total rural primary mileage of
20 all counties. Each rural county shall be credited with an
21 allocation in the proportion that the county's rural primary
22 mileage is to the total rural primary mileage of those rural
23 counties within the same regional rural task force area. Projects
24 funded under this subdivision shall be limited to upgrading rural
25 primary roads and major streets to create an all-season road
26 network.
1 (4) For the fiscal years ending September 30, 2011, and
2 September 30, 2012, and September 30, 2013 only, there is
3 appropriated $12,000,000.00 from the fund for credit to the state
4 trunk line fund established in section 11 of 1951 PA 51, MCL
5 247.661, for the purposes of matching available federal-aid
6 highway funds, and the distribution to targeted industries under
7 subsection (3)(a) shall be reduced accordingly.
8 (5) The obligation authority for any federal funds allocated
9 under section 10 of 1951 PA 51, MCL 247.660, shall be distributed
10 equally among urban task forces and regional rural task forces
11 according to the distribution formula outlined in subsection
12 (3)(b) and (c). An additional 1.5% of the obligation authority
13 for federal funds identified in section 10 of 1951 PA 51, MCL
14 247.660, shall be distributed among the regional rural task
15 forces according to the distribution formula outlined in
16 subsection (3)(c). These funds shall be obligated and used
17 consistent with section 10 of 1951 PA 51, MCL 247.660.