HOUSE BILL No. 5831

 

 

April 18, 2018, Introduced by Reps. Camilleri, Kosowski, Chang and Geiss and referred to the Committee on Transportation and Infrastructure.

 

      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 2016 PA 501.

 

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

 

 7  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 revenue

 

 4  shall be annually appropriated as follows:

 

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

 

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

 

 7  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 county

 

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

 

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

 

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

 

13  the construction or reconstruction of roads.

 

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

 

15  each fiscal year for improvements within rural counties to roads

 

16  and streets that are eligible for federal aid and are located

 

17  inside the boundaries of an urban area or an urbanized area as

 

18  determined by the most recent federal decennial census and as

 

19  adjusted by the department.

 

20        (3) Of the balance remaining after funding projects under

 

21  subsection (2), projects shall be funded in the categories

 

22  described in section 9 based on the following percentages:

 

23        (a) 50% for economic development road projects in any of the

 

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

 

25  only, the allocation made under this subdivision shall be reduced

 

26  by $9,423,700.00.

 

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


 1  and city major streets within urban counties including advanced

 

 2  traffic management systems. The funds shall be distributed to

 

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

 

 4  the following formula:

 

 

 5

          Population

  Percentage of Funds

 6

    1,750,000 or more

          16%

 7

    1,000,000 to 1,749,999

          40%

 8

      650,001 to 999,999

          20%

 9

      400,000 to 650,000

          24%

 

 

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

 

11  shall be divided equally.

 

12        Projects funded under this category shall be used for the

 

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

 

14  advanced traffic management systems in eligible counties.

 

15        (c) 25% for projects within rural counties. These revenues

 

16  shall be distributed for the improvement of rural primary roads in

 

17  rural counties and major streets in cities and villages with a

 

18  population of 5,000 or less that are located outside the boundaries

 

19  of an urban area or an urbanized area as determined by the most

 

20  recent federal decennial census and as adjusted by the department.

 

21  Funds distributed under this subdivision shall be allocated by the

 

22  commission to the regional rural task force areas defined in

 

23  section 12a in the same proportion that the rural primary mileage

 

24  of the regional rural task force area bears to the total rural

 

25  primary mileage of all counties. Each rural county shall be

 

26  credited with an allocation in the proportion that the county's

 

27  rural primary mileage is to the total rural primary mileage of


 1  those rural counties within the same regional rural task force

 

 2  area. Projects funded under this subdivision shall be limited to

 

 3  upgrading rural primary roads and major streets to create an all-

 

 4  season road network. For the fiscal year ending September 30, 2016

 

 5  only, the allocation made under this subdivision shall be reduced

 

 6  by $2,000,000.00, and $2,000,000.00 shall be allocated to the

 

 7  appropriated project as described in section 901 of article XX of

 

 8  2016 PA 268.

 

 9        (4) Beginning October 1, 2015, for the fiscal year ending

 

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

 

11  from the fund and the distribution to targeted industries under

 

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

 

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

 

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

 

15  purposes of matching available federal-aid highway funds.

 

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

 

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

 

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

 

19  airport safety appropriation.

 

20        (5) Beginning October 1, 2016, for the fiscal year ending

 

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

 

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

 

23  11 of 1951 PA 51, MCL 247.661, for the purpose of road and bridge

 

24  construction, and the distribution to targeted industries under

 

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

 

26        (6) Beginning October 1, 2018, for the fiscal year ending

 

27  September 30, 2019 and each fiscal year thereafter, $13,000,000.00


 1  is appropriated from the fund for credit to the MI-TRAIN account

 

 2  created in section 11i of 1951 PA 51, MCL 247.661i, and the

 

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

 

 4  be reduced accordingly.

 

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

 

 6  after the date it is enacted into law.

 

 7        Enacting section 2. This amendatory act does not take effect

 

 8  unless all of the following bills of the 99th Legislature are

 

 9  enacted into law:

 

10        (a) Senate Bill No.____ or House Bill No. 5832 (request no.

 

11  05802'18).

 

12        (b) Senate Bill No.____ or House Bill No. 5833 (request no.

 

13  06080'18).