November 8, 2012, Introduced by Rep. Huuki and referred to the Committee on Tax Policy.
A bill to establish certain programs that promote the
sustainability of land-based industries and support infrastructure
that benefits rural communities; to establish a fund and provide
for its use; and to prescribe the powers and duties of certain
state agencies and officials.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "rural
development fund act".
Sec. 2. As used in this act:
(a) "Board" means the rural development fund board established
in section 3.
(b) "Commission" means the commission of agriculture and rural
development.
(c) "Department" means the department of agriculture and rural
development.
(d) "Director" means the director of the department.
(e) "Fund" means the rural development fund created in section
5.
(f) "Land-based industries" means food and agriculture,
forestry, mining, oil and gas production, and tourism.
(g) "Local unit of government" means a county, city, township,
village, school district, or any authority composed of counties,
cities, townships, villages, or school districts, or any
combination of these entities.
Sec. 3. (1) The rural development fund board is created within
the department.
(2) The board shall be composed of 5 members as follows:
(a) The director, or his or her designee from within the
department, who shall provide the board with input and expertise
relating to this state's food and agriculture sector and economic
development.
(b) Four individuals appointed by the governor with the advice
and consent of the senate who have knowledge, skill, or experience
in land-based industries or fields of economic development or
infrastructure. In making the appointments under this subdivision,
the governor shall comply with all of the following:
(i) Two of the members shall be residents of the Upper
Peninsula and 2 of the members shall be residents of the Lower
Peninsula.
(ii) Not more than 2 of the members shall be members of the
same political party.
(iii) At least 1 of the members shall be a resident of the area
where funds are generated under section 5(2)(c).
(3) The members appointed under subsection (2)(b) shall serve
for terms of 4 years. Of members first appointed, 1 shall be
appointed for an initial term of 1 year, 1 shall be appointed for
an initial term of 2 years, and 2 shall be appointed for an initial
term of 3 years. Members shall serve until a successor is
appointed. A vacancy shall be filled for the balance of the
unexpired term in the same manner as the original appointment.
(4) A member of the board shall not receive compensation for
his or her services. However, a board member is entitled to
reimbursement for all expenses necessarily incurred in the
performance of his or her duties.
(5) The members of the board shall qualify by taking and
filing the oath of office.
(6) The board shall annually elect 1 of the members of the
board as chairperson of the board and other officers as considered
necessary by the board.
(7) The department shall provide the board with personnel
sufficient to perform the board's powers, duties, and functions
under law.
(8) A majority of the board members shall be required to
constitute a quorum. The business which the board may perform shall
be conducted at a meeting of the board held in compliance with the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice
of the time, date, and place of the meeting shall be given in the
manner required by that act.
(9) A member of the board appointed under subsection (2)(b)
may be removed by the governor for inefficiency, neglect of duty,
or malfeasance in office.
(10) The board shall carry out responsibilities as provided in
this act and as otherwise provided by law.
Sec. 4. (1) Notwithstanding section 3(1) of 1968 PA 317, MCL
15.323, members of the board are considered public servants subject
to 1968 PA 317, MCL 15.321 to 15.330, and public officers subject
to 1973 PA 196, MCL 15.341 to 15.348. A member of the board shall
discharge the duties of the position in a nonpartisan manner, in
good faith, in the best interests of this state, and with the
degree of diligence, care, and skill that a fiduciary would
exercise under similar circumstances in a like position.
(2) A member of the board shall not make or participate in
making or in any way attempt to use his or her position as a member
of the board to influence a matter before the board regarding a
grant, loan, loan guarantee, or other expenditure under this act to
his or her employer.
(3) A member, employee, or agent of the board shall not engage
in any conduct that constitutes a conflict of interest and shall
immediately advise the board in writing of the details of any
incident or circumstances that may present the existence of a
conflict of interest with respect to the performance of the board-
related work or duty of the member or agent of the board.
(4) A member of the board who has a conflict of interest
related to any matter before the board shall disclose the conflict
of interest before the board takes any action with respect to the
matter, which disclosure shall become a part of the record of the
board's official proceedings. The member with the conflict of
interest shall refrain from doing all of the following with respect
to the matter that is the basis of the conflict of interest:
(a) Voting in the board's proceedings related to the matter.
(b) Participating in the board's discussion of and
deliberation on the matter.
(c) Being present at the meeting when the discussion,
deliberation, and voting on the matter take place.
(d) Discussing the matter with any other board member.
(5) Failure of a member to comply with subsection (4)
constitutes malfeasance in office subject to removal under section
3(9).
Sec. 5. (1) The rural development fund is created within the
state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund, including, but not limited
to, all of the following:
(a) State or federal appropriations, transfers, or grants.
(b) Gifts, bequests, or donations.
(c) Funds generated under the nonferrous metallic minerals
extraction severance tax act.
(3) The state treasurer shall direct the investment of the
fund. The state treasurer shall have the same authority to invest
the assets of the fund as is granted to an investment fiduciary
under the public employee retirement system investment act, 1965 PA
314, MCL 38.1132 to 38.1140m. The state treasurer shall comply with
the divestment from terror act, 2008 PA 234, MCL 129.291 to
129.301, in making investments under this act. The state treasurer
shall credit to the fund interest and earnings from fund
investments.
(4) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(5) The department shall be the administrator of the fund for
auditing purposes.
(6) The department shall annually prepare a report containing
an accounting of revenues and expenditures from the fund prepared
by the state treasurer. The report shall identify the interest and
earnings of the fund from the previous year, the investment
performance of the fund during the previous year, and the total
amount of appropriations from the fund during the previous year.
The report shall also include a status report for projects funded
under section 6 and the criteria used by the department for the
allocation of funds. The report shall be provided to the senate and
house of representatives appropriations committees and the standing
committees of the senate and house of representatives with
jurisdiction over issues pertaining to agriculture and rural
development.
Sec. 6. (1) The board shall develop criteria for evaluating
project proposals for funding with money from the fund. The
criteria shall include both of the following:
(a) A preference for projects in the region in which revenues
are generated as described in section 5(2)(c).
(b) Support for projects that address the expansion and
sustainability of land-based industries, worker training related to
land-based industries, and energy, transportation, communications,
water, and wastewater infrastructures to benefit rural communities.
(2) The board shall annually review the criteria developed
under subsection (1) and update the criteria as the board considers
necessary.
(3) The criteria developed under this section, as updated
under subsection (2), shall be posted on the department's website
and on printed materials in advance of any request for funding
proposals.
Sec. 7. (1) Not more than 75% of the money deposited into the
fund each year, plus the interest and earnings, excluding
unrealized gains and losses, credited to the fund during the
previous fiscal year, shall be available for appropriation from the
fund. Interest and earnings in the fund in any 1 state fiscal year
shall be available for appropriation in subsequent state fiscal
years.
(2) Money in the fund shall be expended, upon appropriation,
for all of the following:
(a) Grants, loans, and loan guarantees to fund projects
identified under subsection (4).
(b) Administrative expenses of the department in implementing
this act.
(c) Not more than $250,000.00 of the revenue received during
each state fiscal year may be transferred to the nonferrous
metallic mineral surveillance fund created in section 63217 of the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.63217.
(3) The department shall solicit requests for project
proposals to be funded with money from the fund from individuals,
organizations, businesses, local units of government, federally
recognized tribes, and educational institutions.
(4) The department, with the advice of the board, shall
determine which projects should be funded with money from the fund,
based on the criteria established by the board under section 6.
(5) Grants from the fund may be used to provide matching funds
for other available grants, as allowed by law.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. 6008(request no.
02659'11 ***) of the 96th Legislature is enacted into law.