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HB 6070

Environmental protection: other; general obligation bond issuance; provide for. Creates new act.

2023-2024 Regular Session Introduced by Noah Arbit and 15 co-sponsors

authorize up to $2B in general obligation bonds, backed by the state, to fund environmental cleanup, water protection, and related projects if voters approve.

bill electronically reproduced 11/12/2024
#environmentalprotection:other
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Bill Summary · HB 6070

Summary of HB 6070 — Clean Michigan 2 Initiative Act

Overview

HB 6070 proposes a new act to authorize the state of Michigan to issue general obligation bonds totaling up to $2 billion. The bonds would be backed by the state’s full faith and credit and used to fund environmental and natural resources protection programs, including cleaning up contaminated sites, improving water quality, preventing pollution, abating lead contamination, revitalizing waterfronts, and cleaning up sediments in water bodies. The act requires voter approval at the next general election and would create a dedicated bond fund to manage proceeds and debt service.

Main purpose and intent

  • Provide a dedicated financing mechanism to fund environmental remediation, water protection, and related infrastructure and revitalization projects.
  • Leverage general obligation bonds as a means to accelerate cleanup and redevelopment efforts, with debt repaid by the state general fund.

Key provisions and changes

  • Sec. 2 – Bond authorization: The state may borrow up to $2,000,000,000 and issue general obligation bonds, pledging the full faith and credit of the state for principal and interest.
  • Sec. 3 – Issuance standards: Bonds must be issued in accordance with applicable law.
  • Sec. 4 – Bond fund: The following must be deposited into the Clean Michigan 2 Initiative Bond Fund:
    • Proceeds from the sale of bond series.
    • Bond delivery premiums and accrued interest.
    • Interest earned on bond proceeds.
    • Money may only be disbursed for purposes authorized by the act, including issuing costs.
    • The fund references the existing Clean Michigan 2 initiative bond fund (per NRPE Act, MCL 324.19806).
  • Sec. 5 – Voter approval: The borrowing and bond issuance must be submitted to the voters at the next general election. The ballot language is specified, asking whether to authorize up to $2B in bonds for environmental and natural resources projects with repayment from the state general fund.
  • Sec. 6 – Secretary of State duties: The SOS must take necessary actions to submit the ballot question to voters.
  • Sec. 7 – Election threshold: Bond issuance requires a majority approval by qualified electors voting on the measure.
  • Sec. 8 – Debt servicing and budgeting: After issuance, the Legislature must annually appropriate a sufficient amount from the General Fund to pay debt principal, interest, and related costs; the Governor must include this appropriation in the annual budget.
  • Enacting clause: The act takes effect only if a companion bill (HB 6071 or SB referenced) is enacted into law.

Who/what would be affected

  • Michigan residents and taxpayers (through potential general fund debt service).
  • State agencies and programs involved in environmental cleanup, water quality, pollution prevention, lead abatement, waterfront revitalization, and sediment cleanup.
  • Local communities and contaminated site owners/proponents of cleanup and redevelopment projects.
  • Ballot processes and state budgeting mechanisms, due to the voter approval requirement and annual debt service appropriations.

Procedural and timeline aspects

  • Introduced: November 12, 2024 (House Introduced Bill), with initial referral to the Committee on Natural Resources, Environment, Tourism and Outdoor Recreation.
  • Legislative actions indicate a 2025 progression: referral to the Joint Committee on Government Oversight (January 22, 2025) and prior committee considerations.
  • Requires passage by a majority of voters in the next general election to become law, plus enactment of a companion bill for effectiveness.

Potential impact and considerations

  • Enables substantial funding for environmental cleanup and redevelopment, potentially accelerating projects that improve water quality, reduce pollution, and revitalize communities.
  • Creates a new, dedicated bond fund and ties debt service to annual General Fund appropriations, requiring careful budget planning and long-term fiscal commitments.
  • Outcomes hinge on voter approval and the availability of ongoing General Fund resources to service the debt.

Compiled from official sources — confirm details with the bill’s official record.

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