GREAT LAKES WATER QUALITY BONDS - H.B. 5265: COMMITTEE SUMMARY


sans-serif">House Bill 5265 (as passed by the House)

Sponsor: Representative Clark Bisbee

House Committee: Commerce

Senate Committee: Natural Resources and Environmental Affairs


Date Completed: 12-16-03


CONTENT


The bill would amend Part 197 (Great Lakes Water Quality Bond Implementation) of the Natural Resources and Environmental Protection Act to increase the amount of Great Lakes Water Quality bonds that may be issued in any year.


Under the Great Lakes Water Quality Bond Authorization Act (which took effect May 30, 2002), the State must borrow up to $1 billion and issue general obligation bonds to finance sewage treatment works projects, storm water projects, and nonpoint source projects that improve the State’s water quality. Currently, not more than 10% of the bonds may be issued in any year; the bill would permit up to 20% of the bonds to be issued in a one-year period.


MCL 324.19703 - Legislative Analyst: Claire Layman


FISCAL IMPACT


This bill would double to $200 million the amount of Great Lakes Water Quality bonds that the State is authorized to sell in a single year. The bond revenue supports the State Revolving Fund (loans for local water pollution control projects) and the Strategic Water Quality Initiatives Fund (septic system upgrades and other projects). A ballot proposal creating this program was adopted in November 2002 by the voters of the State. No bonds have been issued, although it is anticipated that approximately $1 million in bonds will be sold later this fiscal year to support the Strategic Water Quality Initiatives Fund. Assuming 20-year bonds issued at a constant rate of 5%, debt service on an additional $100 million in bonds would be approximately $8 million. Debt service on general obligation bonds is paid from the General Fund.


 - Fiscal Analyst: Jessica RunnelsS0304\s5265sa

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.