HOUSE Substitute For
SENATE BILL NO. 1071
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 2018 PA 473.
the people of the state of michigan enact:
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Sec. 11. (1)
Bonds may be issued as authorized by the commission for the purpose of funding
projects under this act in the manner provided in sections 18b and 18k of 1951
PA 51, MCL 247.668b and 247.668k, and in accordance with the adopted policies
of the commission. Bonds shall not be committed for any project
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under this act
until the requirements under section 3(1) have been satisfied.
(2) After the
payment of interest and principal on bonds issued under this act and the
appropriation for costs of administration of the fund as provided under this
act, fund revenue shall be annually appropriated as follows:
(a) The first
$5,000,000.00 for a forest roads program. Forest roads program funds shall be
distributed each fiscal year to each qualified county in a percentage amount
equal to the same percentage amount that the number of acres of commercial
forest, national park, and national lakeshore land in each qualified county
bears to the total number of acres of commercial forest, national park, and
national lakeshore land in all qualified counties in this state. Revenue
distributed under this subdivision shall be used for the construction or
reconstruction of roads.
(b) The next
$2,500,000.00 of the fund shall be distributed each fiscal year for
improvements within rural counties to roads and streets that are eligible for
federal aid and are located inside the boundaries of an urban area or an
urbanized area as determined by the most recent federal decennial census and as
adjusted by the department.
(3) Of the
balance remaining after funding projects under subsection (2), projects shall
be funded in the categories described in section 9 based on the following
percentages:
(a) 50% for
economic development road projects in any of the targeted industries. For the
fiscal years ending September 30, 2019 through September 30, 2023 only, the
allocation made under this subdivision shall be reduced by $3,000,000.00 and
allocated to projects described in section 9(1)(b). The office of economic
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development shall
use geographic distribution as a grant selection criterion for projects
described in section 9(1)(b). An eligible city or village may apply for a grant
for a project described in section 9(1)(b) in consecutive fiscal years. For the fiscal years ending September 30, 2020 and September 30,
2021 only, the allocation made under this subdivision shall be reduced by an
additional $13,000,000.00.
(b) 25% for
projects to reduce congestion on county primary and city major streets within
urban counties including advanced traffic management systems. The funds shall
be distributed to counties with populations in excess of 400,000 in accordance
with the following formula:
Percentage of Funds |
|
1,750,000 or more |
16% |
1,000,000 to 1,749,999 |
40% |
650,001 to 999,999 |
20% |
400,000 to 650,000 |
24% |
When 2 or more
counties occupy the same category, the funds shall be divided equally.
Projects funded
under this category shall be used for the widening of county primary roads or city
major streets or for advanced traffic management systems in eligible counties.
(c) 25% for projects within rural counties. These revenues shall be distributed for the improvement of rural primary roads in rural counties and major streets in cities and villages with a population of 5,000 or less that are located outside the boundaries of an urban area or an urbanized area as determined by the most recent federal decennial census and as adjusted by the department. Funds distributed under this subdivision shall be allocated by the
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commission to the regional rural task force areas described in section 12a in the same proportion that the rural primary mileage of the regional rural task force area bears to the total rural primary mileage of all counties. Each rural county shall be credited with an allocation in the proportion that the county's rural primary mileage is to the total rural primary mileage of those rural counties within the same regional rural task force area. Projects funded under this subdivision shall be limited to upgrading rural primary roads and major streets to create an all-season road network.