HB-4440, As Passed House, June 9, 2016HB-4440, As Passed Senate, June 9, 2016

HOUSE SUBSTITUTE FOR SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4440

      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 2014 PA 302.

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 policies

 5  of the commission. Bonds shall not be committed for any project

 6  under this act until the requirements under section 3(1) have been

House Bill No. 4440 as amended June 9, 2016

 1  satisfied.

 2        (2) After the payment of interest and principal on bonds

 3  issued under this act and the appropriation for costs of

 4  administration of the fund as provided under this act, fund revenue

 5  shall be annually appropriated as follows:

 6        (a) The first $5,000,000.00 for a forest roads program. Forest

 7  roads program funds shall be distributed each fiscal year to each

 8  qualified county in a percentage amount equal to the same

 9  percentage amount that the number of acres of commercial forest,

10  national park, and national lakeshore land in each qualified county

11  bears to the total number of acres of commercial forest, national

12  park, and national lakeshore land in all qualified counties in this

13  state. Revenue distributed under this subdivision shall be used for

14  the construction or reconstruction of roads.

15        (b) The next $2,500,000.00 of the fund shall be distributed

16  each fiscal year for improvements to roads and streets that are

17  eligible for federal aid in cities and villages having a population

18  of 5,000 or greater within rural counties.

19        (3) Of the balance remaining after funding projects pursuant

20  to under subsection (2), projects shall be funded in the categories

21  described in section 9 based on the following percentages:

22        (a) Except as otherwise provided in subsection (4), 50% for

23  economic development road projects in any of the targeted

24  industries. [For the fiscal year ending September 30, 2017 only, the

    allocation made under this subdivision shall be reduced by

    $9,423,700.00.]

25        (b) 25% for projects to reduce congestion on county primary

26  and city major streets within urban counties including advanced

27  traffic management systems. The funds shall be distributed to

House Bill No. 4440 as amended June 9, 2016

 1  counties with populations in excess of 400,000 in accordance with

 2  the following formula:

 3  Population Percentage of Funds

 4      1,750,000 or more               16%

 5      1,000,000 to 1,749,999           40%

 6        650,001 to 999,999            20%

 7        400,000 to 650,000            24%

 8        When 2 or more counties occupy the same category, the funds

 9  shall be divided equally.

10        Projects funded under this category shall be used for the

11  widening of county primary roads or city major streets or for

12  advanced traffic management systems in eligible counties.

13        (c) 25% for development projects within rural counties. These

14  revenues shall be distributed for the improvement of rural primary

15  roads in rural counties and major streets in cities and villages

16  with a population of 5,000 or less. Funds distributed under this

17  subdivision shall be allocated by the commission to the regional

18  rural task force areas defined in section 12a in the same

19  proportion that the rural primary mileage of the regional rural

20  task force area bears to the total rural primary mileage of all

21  counties. Each rural county shall be credited with an allocation in

22  the proportion that the county's rural primary mileage is to the

23  total rural primary mileage of those rural counties within the same

24  regional rural task force area. Projects funded under this

25  subdivision shall be limited to upgrading rural primary roads and

26  major streets to create an all-season road network. [For the fiscal year

    ending September 30, 2017 only, the allocation made under this

    subdivision shall be reduced by $2,000,000.00.]

 1        (4) For the fiscal years ending September 30, 2011, September

 2  30, 2012, September 30, 2013, and September 30, 2014 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 highway

 6  funds, and the distribution to targeted industries under subsection

 7  (3)(a) shall be reduced accordingly.

 8        (5) Beginning October 1, 2015, for the fiscal year ending

 9  September 30, 2016 only, the following amounts are appropriated

10  from the fund and the distribution to targeted industries under

11  subsection (3)(a) shall be reduced accordingly:

12        (a) $2,000,000.00 for credit to the state trunk line fund

13  established in section 11 of 1951 PA 51, MCL 247.661, for the

14  purposes of matching available federal-aid highway funds.

15        (b) $2,000,000.00 for credit to the state aeronautics fund

16  established in section 34 of the aeronautics code of the state of

17  Michigan, 1945 PA 327, MCL 259.34, for the purpose of a 1-time

18  airport safety appropriation.

19        (6) Beginning October 1, 2016, for the fiscal year ending

20  September 30, 2017 only, $10,400,000.00 is appropriated from the

21  fund for credit to the state trunk line fund established in section

22  11 of 1951 PA 51, MCL 247.661, for the purpose of road and bridge

23  construction, and the distribution to targeted industries under

24  subsection (3)(a) shall be reduced accordingly.

25  (7) (5) The obligation authority for any federal funds

26  allocated under section 10 of 1951 PA 51, MCL 247.660, shall be

27  distributed equally among urban task forces and regional rural task

 1  forces according to the distribution formula outlined in subsection

 2  (3)(b) and (c). An additional 1.5% of the obligation authority for

 3  federal funds identified in section 10 of 1951 PA 51, MCL 247.660,

 4  shall be distributed among the regional rural task forces according

 5  to the distribution formula outlined in subsection (3)(c). These

 6  funds shall be obligated and used consistent with section 10 of

 7  1951 PA 51, MCL 247.660.