State of Michigan DEPARTMENT OF NATURAL RESOURCES Lansing
JENNIFER M. GRANHOLM governor		REBECCA A. HUMPHRIES director

BILL ANALYSIS

BILL NUMBER:	SENATE BILL 34 (AS INTRODUCED)
TOPIC:	Provide for allowable expenditures of waterways funding account
SPONSOR:	Senator Richardville
CO-SPONSORS:	Senators Birkholz, Kahn, and Patterson
COMMITTEE:	Natural Resources and Environmental Affairs
Analysis Done:	February 6, 2009

POSITION

The Michigan Department of Natural Resources (Department) supports the intent of this legislation.

PROBLEM/BACKGROUND

Existing statute (MCL 324.78110) describes, in very broad terms, the authorized expenditures from the waterways fund. In recent history, $7.8 million of the waterways fund was used to help balance the state budget. More recently, a ballot proposal was passed that would constitutionally protect restricted funds, such as the waterways fund. This bill would further protect the fund by specifying the authorized expenditure categories rather than relying on general language contained in the current statute.

DESCRIPTION OF BILL

This bill specifies, in great detail, the authorized expenditure categories for the waterways fund. It also defines "recreational boating facilities," a term that does not currently exist in statute.

SUMMARY OF ARGUMENTS

Pro

Senate Bill 34 would clearly define the authorized expenditure categories for waterways-related projects, and may help to protect this restricted fund from diversion to other uses.

Con

The term "recreational boating facilities" does not specify "public." There is some concern that this could lead to public waterways funding being diverted to private marinas or other privately held "recreational boating facilities." There is also some

danger inherent with detailing authorized expenditures. In the past, if a link could be established to tie the anticipated expenditure to the intent of the statutory language, the expenditure could be justified. In the current bill, due to the detail contained in the authorization language, one could speculate that any anticipated project NOT included in the list would not be an authorized expenditure. For example, fish cleaning stations and dams are not listed as authorized expenditures, yet they provide a boater service. Electrical upgrades to marina facilities and fuel docks are not specifically listed as authorized expenditures, yet security lighting is listed as an authorized expense. We must assume that some of these expenditures would be authorized under the umbrella of "moorage facilities." Also, the Department does not wish to assume the financial liability for maintaining U.S. Army Corps of Engineers (ACOE) structures (i.e. locks, piers, etc.), nor assume the financial burden for their traditional responsibilities (i.e. dredging, etc.). The Department is concerned that the language may open the door to expenditures not previously authorized (i.e. ACOE or private facilities), while at the same time restricting expenditures that would have previously been authorized as boater amenities.

FISCAL/ECONOMIC IMPACT

Are there revenue or budgetary implications in the bill to the --

(a) Department

Budgetary:

N/A

Revenue:

N/A

Comments:

None

(b) State

Budgetary:

N/A

Revenue:

N/A

Comments:

None

(c) Local Government

Comments:

None

OTHER STATE DEPARTMENTS

N/A

OTHER PERTINENT INFORMATION

The Department suggests some modifications to the bill that would clarify certain aspects, as well as allow for some additional interpretation of what may be deemed a boating amenity. The term “recreational boating facilities” in Sec. 78101(n) should be “public recreational boating facilities” to protect the intent of the funding source. Additionally, the term “public” should then be included after “with” in Sec. 78110(a). In Sec. 78110(a), also add “not the financial responsibility of the U.S. Army Corps of Engineers” after “facilities.” Similarly, add “and related support infrastructure” after “ramps” in Sec. 78110(a)(i) and after “facilities” in Sec. 78110(a)(iii). Finally, add “publication of” prior to “guides” in Sec. 78110(a)(xii).

ADMINISTRATIVE RULES IMPACT

Rules can be promulgated to provide for administration of the act.

_______________________________

Rebecca A. Humphries

Director

_______________________________

Date

BSS/PRD