SB-1243, As Passed Senate, November 29, 2012

 

 

Text Box: SENATE BILL No. 1243

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1243

 

 

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.