SB-1155, As Passed Senate, December 12, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1155

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

(MCL 324.101 to 324.90106) by adding section 5204f.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 5204f. (1) The department, in conjunction with the

authority, shall establish a wetland mitigation bank funding

program that provides grants and loans totaling not more than

$10,000,000.00 to eligible municipalities. Of the money expended

under this subsection, up to $500,000.00 may be used for grants.

Funding may be used for the purpose of this subsection as long as

funds remain available.

(2) Grants awarded under the wetland mitigation bank funding

program shall provide assistance to municipalities to complete loan

application requirements for funding from the wetland mitigation

bank funding program or to complete loan application requirements

for other sources of financing. Grants for wetland mitigation banks

are subject to the following:

(a) Grants shall not cover more than 90% of the costs incurred

by a municipality to complete an application for loan assistance.

(b) Grant funding may be used for the following purposes:

(i) Developing an approvable wetland mitigation banking

proposal.

(ii) Notifying affected local units of government and adjacent

property owners of the proposed wetland mitigation bank, and

working to resolve objections to the project.

(iii) Planning and designing the wetland mitigation bank.

(iv) Completing the wetland mitigation bank funding program

loan application or loan application requirements for other sources

of financing.

from the wetland mitigation funding bank program.

(d) Grant funds shall not be used for general local government

administrative activities or activities performed by municipal

employees that are unrelated to development of the wetland

mitigation bank loan application.

(e) Applications for grants from the wetland mitigation

funding bank program shall be made on a form provided by the

department and shall contain the information required by the

department and the authority. Grant applications may be made at any

time.

(f) The department shall establish a review process for

considering grant applications under this subsection. The

department shall notify the applicant in writing whether the

application is approved or rejected. If the department approves a

grant under this section, the department and the authority shall

enter into a grant agreement with the recipient prior to

transferring funds.

(g) The grant agreement shall contain terms established by the

department and the authority and a requirement that the grant

recipient repay the grant, within 90 days of being informed to do

so, with interest at a rate not to exceed 8% per year, to the

authority for deposit into the fund if any of the following occur:

(i) The applicant fails to submit an administratively complete

loan application for assistance from the wetland mitigation bank

funding program or other source of financing for the project within

1 year of the date on which the grant expires.

(ii) The applicant declines the loan assistance for 2

consecutive years unless the applicant proceeds with funding from

another source.

(iii) The applicant is unable to enter into a signed wetland

mitigation banking agreement with the department within 2 years of

the date on which the grant expires.

(iv) The applicant is unable to or decides not to proceed with

constructing the project.

(3) Loans under the wetland mitigation bank funding program

shall provide assistance to municipalities to establish a wetland

mitigation bank. Loans shall be subject to the following:

(a) Loans under the wetland mitigation bank funding program

shall be for 1 or more of the following:

(i) Complete and execute the wetland mitigation banking

agreement with the department.

(ii) Complete engineering and design for the wetland mitigation

bank.

(iii) Purchase land for the wetland mitigation bank.

(iv) Construct the wetland mitigation bank.

(v) Conduct monitoring and maintenance necessary to ensure

that the performance standards are or will be met.

(vi) In addition, the department may approve the use of loan

funds for other activities needed to establish a wetland mitigation

bank upon a demonstrated need by the municipality.

(b) Applications for loans from the wetland mitigation bank

funding program shall be made on a form provided by the department

and shall contain the information required by the department and

the authority. Loan applications may be made at any time.

(4) The department shall establish a review process for

considering loan applications under this subsection. The department

shall notify the applicant in writing whether the loan is approved

or rejected. Prior to releasing a loan, the authority in

consultation with the department shall enter into a loan agreement

with the loan recipient.

(5) For each year in which the department receives grant or

loan applications under this section, the department shall report

by October 1 to the standing committees of the senate and the house

of representatives with primary jurisdiction over issues pertaining

to natural resources and the environment and to the senate and

house appropriations committees on the utilization of funds under

this part that were received from the Great Lakes water quality

bond fund created in section 19706. The report shall include, at a

minimum, all of the following:

(a) The number of grant and loan applications received under

this section.

(b) The name of each municipality applying for a grant or

loan, or both.

(d) The individual and annual cumulative amount of grant and

loan funds awarded, including an identification of the purpose of

each grant and loan awarded.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 96th Legislature are

enacted into law:

(a) Senate Bill No. 1156.

(b) Senate Bill No. 1157.

(d) House Bill No. 5673.