February 12, 2015, Introduced by Senator GREEN and referred to the Committee on Transportation.
A bill to amend 1951 PA 51, entitled
"An act to provide for the classification of all public roads,
streets, and highways in this state, and for the revision of that
classification and for additions to and deletions from each
classification; to set up and establish the Michigan transportation
fund; to provide for the deposits in the Michigan transportation
fund of specific taxes on motor vehicles and motor vehicle fuels;
to provide for the allocation of funds from the Michigan
transportation fund and the use and administration of the fund for
transportation purposes; to promote safe and efficient travel for
motor vehicle drivers, bicyclists, pedestrians, and other legal
users of roads, streets, and highways; to set up and establish the
truck safety fund; to provide for the allocation of funds from the
truck safety fund and administration of the fund for truck safety
purposes; to set up and establish the Michigan truck safety
commission; to establish certain standards for road contracts for
certain businesses; to provide for the continuing review of
transportation needs within the state; to authorize the state
transportation commission, counties, cities, and villages to borrow
money, issue bonds, and make pledges of funds for transportation
purposes; to authorize counties to advance funds for the payment of
deficiencies necessary for the payment of bonds issued under this
act; to provide for the limitations, payment, retirement, and
security of the bonds and pledges; to provide for appropriations
and tax levies by counties and townships for county roads; to
authorize contributions by townships for county roads; to provide
for the establishment and administration of the state trunk line
fund, local bridge fund, comprehensive transportation fund, and
certain other funds; to provide for the deposits in the state trunk
line fund, critical bridge fund, comprehensive transportation fund,
and certain other funds of money raised by specific taxes and fees;
to provide for definitions of public transportation functions and
criteria; to define the purposes for which Michigan transportation
funds may be allocated; to provide for Michigan transportation fund
grants; to provide for review and approval of transportation
programs; to provide for submission of annual legislative requests
and reports; to provide for the establishment and functions of
certain advisory entities; to provide for conditions for grants; to
provide for the issuance of bonds and notes for transportation
purposes; to provide for the powers and duties of certain state and
local agencies and officials; to provide for the making of loans
for transportation purposes by the state transportation department
and for the receipt and repayment by local units and agencies of
those loans from certain specified sources; and to repeal acts and
parts of acts,"
by amending section 10 (MCL 247.660), as amended by 2014 PA 473,
and by adding section 11g.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10. (1) A fund to be known as the Michigan transportation
fund is established in the state treasury as a separate fund. The
state treasurer may receive money or other assets from any source
for deposit into the fund. The state treasurer shall direct the
investment of the fund. The state treasurer shall credit to the
fund interest and earnings from fund investments. Except as
provided in this act, no other money, whether appropriated from the
general fund of this state or any other source, shall be deposited
in the Michigan transportation fund. Except as otherwise provided
in this section, the legislature shall appropriate money for the
necessary expenses incurred in the administration and enforcement
of the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170,
the motor carrier act, 1933 PA 254, MCL 475.1 to 479.43, and
sections 801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL
257.801 to 257.810. Money appropriated for necessary expenses shall
be based upon established cost allocation methodology that reflects
actual costs. Appropriations for the necessary expenses incurred by
the department of state in administration and enforcement of
sections 801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL
257.801 to 257.810, shall be made from the Michigan transportation
fund and from money in the transportation administration collection
fund created in section 810b of the Michigan vehicle code, 1949 PA
300, MCL 257.810b. Appropriations from the Michigan transportation
fund for the necessary expenses incurred by the department of state
in administration and enforcement of sections 801 to 810 of the
Michigan vehicle code, 1949 PA 300, MCL 257.801 to 257.810, shall
not exceed $20,000,000.00 per state fiscal year. Except as provided
in section 143 of the motor fuel tax act, 2000 PA 403, MCL
207.1143, all money in the Michigan transportation fund is
apportioned and appropriated in the following manner:
(a) Not more than $3,000,000.00 as may be annually
appropriated each fiscal year to the state trunk line fund for
subsequent deposit in the rail grade crossing account.
(b) Not more than $3,000,000.00 as may be annually
appropriated each fiscal year to the state trunk line fund for
subsequent deposit in the grade crossing surface account.
(c) Not less than $3,000,000.00 each year to the local bridge
fund established in subsection (4) for the purpose of payment of
the principal, interest, and redemption premium on any notes or
bonds issued by the state transportation commission under former
section 11b or subsection (9).
(d)
Revenue Except as
otherwise provided in this subdivision,
$5,000,000.00 each year of the revenue from 3 cents of the tax
levied under section 8(1)(a) of the motor fuel tax act, 2000 PA
403, MCL 207.1008, to the movable bridge fund created in section
11g, with the remainder to the state trunk line fund, county road
commissions, and cities and villages in the percentages provided in
subdivision (k). The department shall annually adjust the amount
allocated under this subdivision by an amount equal to the annual
increase in the Detroit consumer price index for the preceding
year.
(e) One-half of the revenue from 1 cent of the tax levied
under section 8(1)(a) of the motor fuel tax act, 2000 PA 403, MCL
207.1008, to the state trunk line fund for the repair of state
bridges under section 11, and 1/2 of the revenue from 1 cent of the
tax levied under section 8(1)(a) of the motor fuel tax act, 2000 PA
403, MCL 207.1008, to the local bridge fund created in subsection
(4) for distribution only to cities, villages, and county road
commissions.
(f) $43,000,000.00 to the state trunk line fund for debt
service costs on state of Michigan projects.
(g) Ten percent to the comprehensive transportation fund for
the purposes described in section 10e.
(h) $5,000,000.00 to the local bridge fund established in
subsection (4) for distribution only to the local bridge advisory
board, the regional bridge councils, cities, villages, and county
road commissions.
(i) $36,775,000.00 to the state trunk line fund for subsequent
deposit in the transportation economic development fund, with first
priority for allocation to debt service on bonds issued to fund
transportation economic development fund projects. In addition,
$3,500,000.00 is appropriated from the Michigan transportation fund
to the state trunk line fund for subsequent deposit in the
transportation economic development fund to be used for economic
development road projects in any of the targeted industries
described in section 9(1)(a) of 1987 PA 231, MCL 247.909.
(j) Not less than $33,000,000.00 as may be annually
appropriated each fiscal year to the local program fund created in
section 11e.
(k) The balance of the Michigan transportation fund as
follows, after deduction of the amounts appropriated in
subdivisions (a) to (j) and section 11g:
(i) 39.1% to the state trunk line fund for the purposes
described in section 11.
(ii) 39.1% to the county road commissions of this state.
(iii) 21.8% to the cities and villages of this state.
(2) The money appropriated pursuant to this section shall be
used for the purposes as provided in this act and any other
applicable act. Subject to the requirements of section 9b, the
department shall develop programs in conjunction with the Michigan
state chamber of commerce and the Michigan minority business
development council to assist small businesses, including those
located in enterprise zones and those located in empowerment zones
as determined under federal law, as defined by law in becoming
qualified to bid.
(3) Thirty-one and one-half percent of the money appropriated
to this state from the federal government under 23 USC 157,
commonly known as minimum guarantee funds, shall be allocated to
the transportation economic development fund, if the allocation is
consistent with federal law. This money shall be distributed 16-
1/2% for development projects for rural counties as defined by law
and 15% for capacity improvement or advanced traffic management
systems in urban counties as defined by law. Federal money
allocated for distribution under this section is eligible for
obligation and use by all recipients as provided in the moving
ahead for progress in the 21st century act, Public Law 112-141.
(4) A fund to be known as the local bridge fund is established
in the state treasury as a separate fund. The money appropriated to
the local bridge fund and the interest accruing to that fund shall
be expended for the local bridge program. The purpose of the fund
is to provide financial assistance to highway authorities for the
preservation, improvement, or reconstruction of existing bridges or
for the construction of bridges to replace existing bridges in
whole or part. The money in the local bridge fund is not subject to
section 12(15) or 13(5). The local bridge advisory board is created
and shall consist of 6 voting members appointed by the state
transportation commission and 2 nonvoting members appointed by the
department. The board shall include 3 members from the county road
association of Michigan, 1 member who represents counties with
populations 65,000 or greater, 1 member who represents counties
with populations greater than 30,000 and less than 65,000, and 1
member who represents counties with populations of 30,000 or less.
Three members shall be appointed from the Michigan municipal
league, 1 member who represents cities with a population 75,000 or
greater, 1 member who represents cities with a population less than
75,000, and 1 member who represents villages. Each organization
with voting rights shall submit a list of nominees in each
population category to the state transportation commission. The
state transportation commission shall make the appointments from
the lists submitted under this subsection. Voting members shall be
appointed for 2 years. The chairperson of the board shall be
selected from among the voting members of the board. In addition to
the 2 nonvoting members, the department shall provide qualified
administrative staff and qualified technical assistance to the
board.
(5) No less than 5% and no more than 15% of the money received
in the local bridge fund may be used for critical repair of large
bridges and emergencies as determined by the local bridge advisory
board. Money remaining after the money allocated for critical large
bridge repair and emergencies is deducted shall be distributed by
the board to the regional bridge councils created under this
section. One regional council shall be formed for each department
of transportation region as those regions exist on October 1, 2004.
The regional councils shall consist of 2 members of the county road
association of Michigan from counties in the region, 2 members of
the Michigan municipal league from cities and villages in the
region, and 1 member of the department in each region. The members
of the department are nonvoting members and shall provide qualified
administrative staff and qualified technical assistance to the
regional councils.
(6) Money in the local bridge fund after deduction of the
amounts set aside for critical repair of large bridges and
emergency repairs shall be distributed among the regional bridge
councils according to all of the following ratios, which shall be
assigned a weight expressed as a percentage as determined by the
board, with each ratio receiving no greater than a 50% weight and
no less than a 25% weight:
(a) A ratio with a numerator that is the total number of local
bridges in the region and a denominator that is the total number of
local bridges in this state.
(b) A ratio with a numerator that is the total local bridge
deck area in the region and a denominator that is the total local
bridge deck area in this state.
(c) A ratio with a numerator that is the total amount of
structurally deficient local bridge deck area in the region and a
denominator that is the total amount of structurally deficient
local bridge deck area in this state.
(7) The regional bridge councils shall allocate the money
received from the board for the preservation, improvement, and
reconstruction of existing bridges or for the construction of
bridges to replace existing bridges in whole or in part in each
region.
(8) Each January, the department shall submit a report to the
chair and the minority vice-chair of the appropriations committees
of the senate and the house of representatives, and to the standing
committees on transportation of the senate and the house of
representatives, on all of the following activities for the
previous state fiscal year:
(a) A listing of how much money was dedicated for emergency
and large bridge repair.
(b) A listing of what emergency and large bridge repair
projects were funded.
(c) The actual weights used in the calculation required under
subsection (6).
(d) A listing of the total money distributed to each region.
(e) A listing of the specific projects that were funded under
subsection (7).
(9) The state transportation commission shall borrow money and
issue notes or bonds in an amount of not less than $30,000,000.00
to supplement the funding provided for the local bridge program
under subsection (5). The bonds or notes issued under this
subsection may be issued by the commission for any purpose for
which other local bridge money may be used under this section. The
bonds or notes authorized by this subsection shall be issued by
resolution of the state transportation commission consistent with
the requirements of section 18b.
(10) The department shall promulgate rules under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, governing the administration of the local bridge program.
The rules shall set forth the eligibility criteria for financial
assistance under the program and other matters related to the
program that the department considers necessary and desirable. The
department shall take into consideration the availability of
federal aid and other financial resources of the highway authority
responsible for the bridge, the importance of the bridge to the
highway, road, or street network, and the condition of the existing
bridge.
(11) The revenue appropriated to the local bridge fund under
subsection (1)(e) shall be distributed only to the local bridge
advisory board, the regional bridge councils, cities, villages, and
county road commissions.
(12) The regional bridge councils shall determine what bridge
projects are selected for funding from the local bridge fund
created in subsection (4) and shall make a list of selected
projects available to interested parties in the region. A
determination that a bridge project is selected for funding in a
given fiscal year is not approval to disburse the money.
(13) A county road commission, city, or village may implement
a bridge project if the bridge project has been selected for
funding and is included in the appropriate regional bridge
council's current multiyear bridge plan for the local bridge
program but the regional bridge council has not allocated money to
the bridge project for the fiscal year that the bridge project is
on the current multiyear bridge plan. A county road commission,
city, or village may borrow money to implement a project that has
been selected for funding and is included in the appropriate
regional bridge council's current multiyear bridge plan but has not
been allocated money by the regional bridge council. Based on
available local bridge money, when a bridge project that was
implemented with borrowed money is allocated funding in a
subsequent fiscal year, the funding shall only be used to repay the
amount approved by the multiyear bridge plan when the money was
borrowed. To be eligible for repayment of the amount borrowed, a
bridge project that has been implemented with borrowed money shall
be administered through the department's local bridge program.
Sec. 11g. (1) The movable bridge fund is created in the state
treasury as a separate fund. The state treasurer may receive money
or other assets from any source for deposit into the fund. The
state treasurer shall direct the investment of the fund. The state
treasurer shall credit to the fund interest and earnings from fund
investments. Money in the fund at the close of the fiscal year
shall remain in the fund and shall not lapse to the general fund.
The department shall be the administrator of the fund for auditing
purposes.
(2) The department may enter into a contract with a person or
agency that has jurisdiction of a publicly owned movable bridge for
the operation of that bridge. A contract entered into under this
subsection shall require any contractor hired by the department to
operate the bridge to maintain insurance in an amount specified by
the department. This subsection does not require the department to
assume ownership or jurisdiction of a publicly owned movable bridge
as part of a contract described in this subsection.
(3) Each person or agency other than the department that owns
or has jurisdiction of a publicly owned movable bridge shall submit
to the department the operational procedures for that bridge and
the operational costs incurred by the person or agency in operating
the bridge on an annual basis. The department shall develop
procedures to govern the operation of and to determine the
operational costs of all publicly owned movable bridges in this
state. The department shall annually develop an estimate for the
operational cost of each publicly owned movable bridge in this
state for each fiscal year. For each publicly owned movable bridge
that is owned by or under the jurisdiction of a person or agency
other than the department, the department shall use the operational
procedures and operational costs submitted by that person or agency
under this subsection in developing the procedures and estimate
required by this subsection. Using the estimates developed under
this subsection, the department shall distribute a percentage of
money from the movable bridge fund to each person or agency
responsible for the operation of a publicly owned movable bridge.
If the department is responsible for the operation of a publicly
owned movable bridge, the money distributed under this subsection
shall be distributed to the department.
(4) If the department offers to enter into a contract
described in subsection (2) and the owner or agency that has
jurisdiction of the bridge declines, the owner or agency shall
continue to receive the amount of money that it otherwise would
have received for the operation of that bridge under this act.
(5) As used in this section, "operational costs" includes all
reasonable and customary costs associated with the operation of a
publicly owned moveable bridge. Operational costs do not include
routine maintenance costs, capital improvement costs, or emergency
structural, mechanical, electrical, or hydraulic repairs.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.