DECF GRANT STRUCTURE; MODIFY H.B. 6027 (H-3):

SUMMARY OF HOUSE-PASSED BILL

IN COMMITTEE

 

 

 

 

 

 

 

House Bill 6027 (Substitute H-3 as passed by the House)

Sponsor: Representative Christine Morse

House Committee: Appropriations

Senate Committee: Government Operations

 

Date Completed: 12-19-24

 


CONTENT

 

The bill would amend the Emergency Management Act to increase the maximum grant amount a county could receive from the Disaster Emergency Contingency Fund (DECF). Currently, an eligible county or municipality with a population under 25,000 may receive up to $250,000 and an eligible county or municipality with a population of 25,00 or more may receive up to $500,000. Under the bill, an eligible county or municipality with a population under 75,000 could receive up to $1.0 million and with a population of 75,000 or more, $2.0 million.

 

The bill also would create the State Hazard Mitigation Fund and allow the State Treasurer to deposit money and other assets from the DECF or any other source into the State Hazard Mitigation Fund. The State Police (MSP) Director would have to promulgate administrative rules governing assistance applications, State Hazard Mitigation Fund award determinations, eligible expenditures, and program administration. Funds from the Fund would be disbursed by MSP as grants to support hazard mitigation programs, which would include the rebuilding of any damaged infrastructure in a manner that would reduce the exposure of the public to future hazards and mitigate against further loss. Unexpended and unencumbered funds remaining in the Fund at the end of the fiscal year would not lapse into the General Fund.

 

The bill is tie-barred to Senate Bill 1047.

 

MCL 30.419 et al.

 

FISCAL IMPACT

 

Modifying the DECF grant structure could have a positive fiscal impact on certain eligible local units of government by increasing the amount of grant assistance available to these entities. The bill s proposal to create the State Hazard Mitigation Fund would have an indeterminate fiscal impact on the State as the bill provides for no deposit into the Fund, thus the Fund would depend on a future appropriation or transfer to be funded.

 

Analyst: Bruce Baker

 

 

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.