Drains: financing; interest charged for drain projects; limit. Amends sec. 278 of 1956 PA 40 (MCL 280.278).
Key claim: SB1081 amends Michigan’s Drain Code to limit the interest rate charged for drain project financing.
Abstract
(SB1081 · 103rd Legislature) Drains: financing; interest charged for drain projects; limit. Amends sec. 278 of 1956 PA 40 (MCL 280.278). Latest action (2026-06-25): Referred To Committee On Local Government
Why this matters
Drain projects are a distinct slice of local infrastructure financing in Michigan, funded through special assessments and debt issued by drainage districts rather than the transportation funds that pay for roads. Capping the interest rate on drain project financing changes the cost borne by assessed landowners and the terms under which drain commissioners can borrow, making it a narrow but consequential tweak to a longstanding financing regime.