ROAD COMMISSION CONTRACTS H.B. 4120:
SUMMARY OF HOUSE-PASSED BILL
IN COMMITTEE
House Bill 4120 (as passed by the House)
Sponsor: Representative Gregory Markkanen
House Committee: Transportation
Ways and Means
Senate Committee: Transportation and Infrastructure
CONTENT
The bill would amend the county road law to modify, from 15 to 30 years, the period of time for which a county road commission could pay installments on a contract or agreement for the purchase of real or personal property for public purposes.
Currently, a county road commission may enter into a contract or agreement for the purchase of real or personal property for public purposes, must be paid for in installments over a period of 15 years or the useful life of the property acquired, whichever is less. Under the bill, instead, the contract or agreement would have to be paid for in installments over a period not to exceed 30 years or the useful life the property acquired, whichever was less.
MCL 224.10 Legislative Analyst: Tyler VanHuyse
FISCAL IMPACT
The bill would not have a fiscal impact on the State, but could have a small, positive fiscal impact on county road commissions. By extending the term limit of installment payments for the purchase of real or personal property from 15 years to 30 years, some county road commissions could have options for installment payment terms that would be more manageable than currently available under the current 15 year maximum.
Fiscal Analyst: Michael Siracuse
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.