Bill Text: MI HB5307 | 2019-2020 | 100th Legislature | Introduced
Bill Title: State financing and management; funds; funding for businesses with lost revenue due to road construction projects; provide for. Amends 1951 PA 51 (MCL 247.651 - 247.675) by adding sec. 10q.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2019-12-31 - Bill Electronically Reproduced 12/31/2019 [HB5307 Detail]
Download: Michigan-2019-HB5307-Introduced.html
HOUSE BILL NO. 5307
December 19, 2019, Introduced by Reps. Anthony,
Love, Hope, Guerra, Liberati, Bolden, Manoogian, Camilleri, Cynthia Johnson
and Whitsett and referred to the Committee on Commerce and Tourism.
A bill to amend 1951 PA 51, entitled
"An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to promote safe and efficient travel for motor vehicle drivers, bicyclists, pedestrians, and other legal users of roads, streets, and highways; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, local bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; and to repeal acts and parts of acts,"
(MCL 247.651 to 247.675) by adding section 10q.
the people of the state of michigan enact:
Sec. 10q. (1) The department shall create and operate a road construction business loss reimbursement program. The department shall provide grants under the road construction business loss reimbursement program to businesses for revenue lost due to an unexpected street closure or a construction project that extends significantly beyond its scheduled end date. The amount of a grant will be equal to the recipient's decline in revenue up to a maximum amount of $15,000.00 per year.
(2) An application for a grant from the road construction business loss reimbursement program shall be made on a form approved by the department and shall contain the information required by the department. An application for a grant under this section may be made at any time as determined by the department.
(3) To qualify for a grant under this section, a business must demonstrate a significant decline in revenue caused by a road construction project. The decline in revenue must be determined by using an average of profits during the immediately preceding 3 tax years.
(4) The department shall establish a review process for considering grant applications under this section. No later than 120 days after receiving a grant application under this section, the department shall notify the applicant in writing whether the application is approved or rejected. The department shall prioritize the awarding of each grant on a case-by-case basis using all of the following criteria:
(a) Rate of decline in revenue.
(b) Duration of construction.
(c) Proximity to construction.
(d) Severity of traffic disruption during construction.
(e) Lack of access for pedestrian traffic during construction.
(f) Any other criteria the department determines to be relevant.
(5) For each year in which the department receives grant applications, the department shall report by December 1 to the standing committees of the senate and house of representatives with primary jurisdiction over issues pertaining to transportation and the senate and house of representatives appropriations committees on the utilization of funds from the road construction business loss reimbursement program. The report shall include, at a minimum, all of the following:
(a) The number of applications received.
(b) The name of each business applying for a grant, and whether each application was approved or denied.
(c) For each application approved, a status report on the construction project that caused the lost revenue claimed by the grant recipient.
(6) The road construction business loss reimbursement fund is created within the state treasury.
(7) The state treasurer may receive money or other assets from any source for deposit into the road construction business loss reimbursement fund. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments.
(8) Money in the road construction business loss reimbursement fund at the close of the fiscal year shall remain in the road construction business loss reimbursement fund and shall not lapse into the general fund.
(9) The state transportation department shall be the administrator of the road construction business loss reimbursement fund for auditing purposes.
(10) The state transportation department shall expend money from the road construction business loss reimbursement fund, upon appropriation, only to fund and operate the road construction business loss reimbursement program created in subsection (1).
