WATERWAY FUNDING FOR HIGHER ED - S.B. 150 (S-2): FLOOR ANALYSIS

sans-serif">Senate Bill 150 (Substitute S-2 as reported by the Committee of the Whole)

Sponsor: Senator Jason E. Allen

Committee: Natural Resources and Environmental Affairs

CONTENT

The bill would amend the Natural Resources and Environmental Protection Act to:

--    Permit public colleges and universities to enter into agreements with the Department of Natural Resources (DNR) to finance harbor or waterway projects.

--    Allow public colleges and universities to receive funding for participation in Federal projects, the development of harbors, and public boating access sites.

--    Require the DNR’s operational requirements for public boating access site grants to be contained in a grant agreement, which could include provisions described in the bill.

Part 781 provides for the Michigan State Waterways Commission and a boating access sites grant program. Local units of government situated on inland Great Lakes waterways, or channels to nearby inland navigable lakes and streams, may enter into agreements with the DNR to accomplish the purposes of Part 781. The bill would include public colleges and universities in these provisions.

The boating access sites grant program provides money from the State Waterways Fund to local units to acquire land for public boating access sites and to develop the sites. The local units must agree to operate the access sites in accordance with the DNR’s requirements. The bill would include public colleges and universities in these provisions.

The bill would require the DNR’s operational requirements to be included in a grant agreement between the recipient and the DNR, which could require any of the following: 1) that the public boating access site and its facilities be open to the public at all times on equal and reasonable terms; 2) that any net revenues accrued from operating the site be reserved for its future maintenance or for expansion; and 3) that the site and its facilities be used exclusively for recreational watercraft. The agreement also could prohibit commercial operations from regularly using the site. As a rule, a fee for use of the site would have to be the same as that set by the DNR.

The bill also would amend Part 791 to allow public colleges and universities (in addition to local units) to enter into agreements with the DNR to act jointly as the lessor of real property accessible to water for the development of marinas.

MCL 324.78106 et al. - Legislative Analyst: Claire Layman

FISCAL IMPACT

The bill provides that, if a fee were charged for use of a public boating access site, the fee would have to be the same as the fee rates set by the DNR, except as otherwise provided in a grant agreement or authorized by the DNR. This could result in an increase or reduction of fee revenue to the grant recipient if its current fee differs from the fee set by the DNR. 

Date Completed: 3-21-03 - Fiscal Analyst: Jessica RunnelsFloor\sb150 - Bill Analysis @ www.senate.michigan.gov/sfa

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.