2005 Senate Bill 353

Shift federal block grants to rural projects

Introduced in the Senate

March 24, 2005

Introduced by Sen. Jud Gilbert (R-25)

To require the Michigan Strategic Fund to allocate at least 60 percent of federal community block grant program funds to projects located in rural areas, with water and sewer system development given priority, to the extent this is allowed by federal regulations, and that there are sufficient applicants for grants. The bill defines a "rural county" as one with a population under 90,000.

Referred to the Committee on Economic Development, Small Business, and Regulatory Reform

June 7, 2005

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

June 9, 2005

Substitute offered

To replace the previous version of the bill with one that earmarks 55 percent of the grants to rural areas, not 60 percent. Also, to give priority to projects that create or retain jobs, rather than water and sewer system development projects.

The substitute passed by voice vote

June 14, 2005

Amendment offered by Sen. Jud Gilbert (R-25)

To give the Michigan Economic Development Corporation (MEDC) more discretion in the kinds of projects to which they may allocate community development block grant money that is not earmarked for rural areas.

The amendment passed by voice vote

Passed in the Senate 32 to 5 (details)

To require the Michigan Strategic Fund to allocate at least 55 percent of the approximately $40 million of federal community block grant funds given to the state to projects located in rural areas, with projects that create or retain jobs would given priority. The bill defines a "rural county" as one with a population under 90,000.

Received in the House

June 14, 2005

Referred to the Committee on Commerce