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State of
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JENNIFER M. GRANHOLM governor |
DEPARTMENT
OF NATURAL RESOURCES |
K. L. COOL director |
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State of
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JENNIFER M. GRANHOLM governor |
DEPARTMENT
OF NATURAL RESOURCES |
K. L. COOL director |
BILL
NUMBER: SB 1097 and HB 5733, as
introduced
TOPIC: Bills to exempt the
Department of Natural Resources from special assessments to establish or
maintain normal lake level assessments.
SPONSOR: Senator
Martha Scott
CO-SPONSORS: None
COMMITTEE: Natural
Resources and Environmental Affairs
Analysis Done:
The Department supports these
bills.
PROBLEM/BACKGROUND
County boards have the authority to assess landowners
on inland lakes for project costs associated with maintaining normal lake levels.
The Department is a landowner on inland
lakes and is billed for these assessments. In recent years, the legislature has not
provided appropriations of General Fund to pay the assessments so payments have
not been issued. The Department has been
sued repeatedly by counties for payment.
Recently, the Attorney General advised the Department to either seek an
appropriation for lake level assessments, or seek a statutory change so the
Department would no longer be obligated to pay the assessments.
DESCRIPTION OF BILL
These
bills would exempt the Department from paying lake level special assessments.
SUMMARY
OF ARGUMENTS
Pro
These
bills would alleviate the Department’s annual need for General Fund appropriations
to pay lake level special assessments.
This would also avoid costly litigation proceedings.
Con
The
financial burden of maintaining inland lake levels will fall on the remaining
property owners.
FISCAL/ECONOMIC IMPACT
Are there revenue or budgetary implications in the
bill to the --
(a) Department
Budgetary:
If these bills are not enacted,
the Department’s annual operating budget will have to be increased by
approximately $200,000 of General Fund.
If additional funding is not provided and the Department is required to
make the payments, this will result in program reductions.
Revenue:
This legislation would not impact the Department’s
revenues.
Comments:
None.
(b) State
Budgetary:
The legislation would
reduce General Fund obligations for the state by approximately $200,000
annually.
Revenue:
These bills would have no
impact on the state’s revenues.
Comments:
None.
(c)
Local
Government
Comments:
These
bills would remove the Department from the list of entities required to pay lake level special assessments. As a result, some special assessment districts may see a reduction in funding.
OTHER STATE DEPARTMENTS
There are no other state
departments that should have a concern or issue with these bills.
ANY OTHER PERTINENT INFORMATION
None.
ADMINISTRATIVE RULES IMPACT
None.
_______________________________
Rebecca A. Humphries
Director
_______________________________
Date
BSS
