SENATE BILL NO. 1071
August 15, 2020, Introduced by Senator HOLLIER
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 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
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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 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
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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 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 year ending September 30, 2020 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
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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 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.