HOUSE BILL No. 4440

 

April 14, 2015, Introduced by Rep. Canfield 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 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

 

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

 

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

 

 7  have been satisfied.

 


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

 

 2  issued under this act and the appropriation for costs of

 

 3  administration of the fund as provided under this act, fund

 

 4  revenue shall be annually appropriated as follows:

 

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

 

 6  Forest roads program funds shall be distributed each fiscal year

 

 7  to each qualified county in a percentage amount equal to the same

 

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

 

 9  national park, and national lakeshore land in each qualified

 

10  county bears to the total number of acres of commercial forest,

 

11  national park, and national lakeshore land in all qualified

 

12  counties in this state. Revenue distributed under this

 

13  subdivision shall be used for the construction or reconstruction

 

14  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

 

18  population 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

 

21  categories described in section 9 based on the following

 

22  percentages:

 

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

 

24  economic development road projects in any of the targeted

 

25  industries.

 

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

 

27  and city major streets within urban counties including advanced

 


 1  traffic management systems. The funds shall be distributed to

 

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

 

 3  the following formula:

 

 

               Population             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%

 

 

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

 

10  shall be divided equally.

 

11        Projects funded under this category shall be used for the

 

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

 

13  advanced traffic management systems in eligible counties.

 

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

 

15  These revenues shall be distributed for the improvement of rural

 

16  primary roads in rural counties and major streets in cities and

 

17  villages with a population of 5,000 or less. Funds distributed

 

18  under this subdivision shall be allocated by the commission to

 

19  the regional rural task force areas defined in section 12a in the

 

20  same proportion that the rural primary mileage of the regional

 

21  rural task force area bears to the total rural primary mileage of

 

22  all counties. Each rural county shall be credited with an

 

23  allocation in the proportion that the county's rural primary

 

24  mileage is to the total rural primary mileage of those rural

 

25  counties within the same regional rural task force area. Projects

 

26  funded under this subdivision shall be limited to upgrading rural

 


 1  primary roads and major streets to create an all-season road

 

 2  network.

 

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

 

 4  September 30, 2012, September 30, 2013, and September 30, 2014,

 

 5  and September 30, 2016 only, there is appropriated $12,000,000.00

 

 6  from the fund for credit to the state trunk line fund established

 

 7  in section 11 of 1951 PA 51, MCL 247.661, for the purposes of

 

 8  matching available federal-aid highway funds, and the

 

 9  distribution to targeted industries under subsection (3)(a) shall

 

10  be reduced accordingly.

 

11        (5) The obligation authority for any federal funds allocated

 

12  under section 10 of 1951 PA 51, MCL 247.660, shall be distributed

 

13  equally among urban task forces and regional rural task forces

 

14  according to the distribution formula outlined in subsection

 

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

 

16  for federal funds identified in section 10 of 1951 PA 51, MCL

 

17  247.660, shall be distributed among the regional rural task

 

18  forces according to the distribution formula outlined in

 

19  subsection (3)(c). These funds shall be obligated and used

 

20  consistent with section 10 of 1951 PA 51, MCL 247.660.

 

21        Enacting section 1. This amendatory act takes effect 90 days

 

22  after the date it is enacted into law.