HOUSE BILL No. 4817 May 22, 1997, Introduced by Reps. Llewellyn, Cropsey, Goschka, Walberg, Voorhees and Rhead and referred to the Committee on Appropriations. 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 clas- sification; 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 trans- portation fund and the use and administration of the fund for transportation purposes; 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 pur- poses; to set up and establish the Michigan truck safety commis- sion; 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 deficien- cies 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, critical bridge fund, comprehensive transportation fund, and cer- tain 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 00192'97 TJS 2 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 leg- islative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for condi- tions 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 certain acts and parts of acts," by amending sections 10 and 10c (MCL 247.660 and 247.660c), sec- tion 10 as amended by 1993 PA 294 and section 10c as amended by 1990 PA 73; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 10. (1) A fund to be known as the Michigan transporta- 2 tion fund is established and shall be set up and maintained in 3 the state treasury as a separate fund. Money received and col- 4 lected underAct No. 150 of the Public Acts of 1927, as amended,5being sections 207.101 to 207.202 of the Michigan Compiled Laws6 1927 PA 150, MCL 207.101 TO 207.202, except a license fee pro- 7 vided in that act, and a tax, fee, license, and other money 8 received and collected under sections 801 to 810 of the Michigan 9 vehicle code,Act No. 300 of the Public Acts of 1949, as10amended, being sections 257.801 to 257.810 of the Michigan11Compiled LawsTHE MICHIGAN VEHICLE CODE, 1949 PA 300, MCL 12 257.801 TO 257.810, except a truck safety fund fee provided in 13 section 801(1)(k) ofAct No. 300 of the Public Acts of 1949,14being section 257.801 of the Michigan Compiled LawsTHE MICHIGAN 15 VEHICLE CODE, 1949 PA 300, MCL 257.801, and money received under 00192'97 3 1 the motor carrier act,Act No. 254 of the Public Acts of 1933,2as amended, being sections 475.1 to 479.20 of the Michigan3Compiled Laws1933 PA 254, MCL 475.1 TO 479.43, shall be depos- 4 ited in the state treasury to the credit of the Michigan trans- 5 portation fund. In addition, income or profit derived from the 6 investment of money in the Michigan transportation fund shall be 7 deposited in the Michigan transportation fund. Except as pro- 8 vided in this act, no other money, whether appropriated from the 9 general fund of this state or any other source, shall be depos- 10 ited in the Michigan transportation fund. The legislature shall 11 appropriate funds for the necessary expenses incurred in the 12 administration and enforcement ofAct No. 150 of the Public Acts13of 1927, as amended, Act No. 254 of the Public Acts of 1933, as14amended, and sections 801 to 810 of Act No. 300 of the Public15Acts of 1949, as amended. After deduction of the amount as16appropriated pursuant to section 91 of Act No. 150 of the Public17Acts of 1927, being section 207.191 of the Michigan Compiled18Laws, all1927 PA 150, MCL 207.101 TO 207.202, THE MOTOR CARRIER 19 ACT, 1933 PA 254, MCL 475.1 TO 479.43, AND SECTIONS 801 TO 810 OF 20 THE MICHIGAN VEHICLE CODE, 1949 PA 300, MCL 257.801 TO 257.810. 21 ALL money in the Michigan transportation fund is apportioned and 22 appropriated, EXCEPT AS PROVIDED IN SUBDIVISION (D), FOR THE 23 FISCAL YEARS ENDING SEPTEMBER 30, 1993 THROUGH SEPTEMBER 30, 1998 24 in the following manner: 25(a) Beginning October 31, 1987 and for the fiscal years26ending September 30, 1988 through September 30, 1992:00192'97 4 1(i) Not more than $3,000,000.00 as may be annually2appropriated each fiscal year to the state trunk line fund for3subsequent deposit in the rail grade crossing account.4(ii) 10% to the comprehensive transportation fund for the5purposes described in section 10e.6(iii) $21,550,000.00 to the state trunk line fund for subse-7quent deposit in the transportation economic development fund, or8allocation to debt service on bonds issued to fund transportation9economic development fund projects for the fiscal year ending10September 30, 1988, and $36,775,000.00 for each fiscal year11thereafter through the fiscal year ending September 30, 1992.12(iv) The balance of the Michigan transportation fund as fol-13lows, after deduction of the amounts appropriated in subpara-14graphs (i), (ii), and (iii) and section 11b:15(A) 39.1% to the state trunk line fund for the purposes16described in section 11.17(B) 39.1% to the county road commissions of the state.18(C) 21.8% to the cities and villages of the state.19(b) Except as provided in subparagraph (vi), for the fiscal20years ending September 30, 1993 through September 30, 1998:21 (A)(i)Not more than $3,000,000.00 as may be annually 22 appropriated each fiscal year to the state trunk line fund for 23 subsequent deposit in the rail grade crossing account. 24 (B)(ii)Not less than $3,000,000.00 each year to the 25 critical bridge fund established in section 11b for the purpose 26 of payment of the principal, interest, and redemption premium on 00192'97 5 1 any notes or bonds issued by the state transportation commission 2 under section 11b. 3(iii) 10% to the comprehensive transportation fund for the4purposes described in section 10e.5(iv) Not less than $20,000,000.00 for FY 1992-93, not more6than $33,000,000.00 for FY 1993-94 and 1994-95, not less than7$33,000,000.00 for FY 1995-96, as may be annually appropriated,8based on actual increased revenues from motor fuel tax collec-9tions beginning in FY 1992-93, for deposit in the state trunk10line fund for subsequent deposit in the local program fund cre-11ated in section 11e.12 (C)(v)$36,775,000.00 to the state trunk line fund for 13 subsequent deposit in the transportation economic development 14 fund, or allocation to debt service on bonds issued to fund 15 transportation economic development fund projects. 16 (D)(vi)The balance of the Michigan transportation fund 17 as follows, after deduction of the amounts appropriated in 18subparagraphs (i) through (v)SUBDIVISIONS (A) THROUGH (C) and 19 section 11b: 20 (i)(A)39.1% to the state trunk line fund for the pur- 21 poses described in section 11.From this amount, after the pay-22ment of debt service pursuant to section 11(1)(a), a state grant23of not more than $78,000,000.00 shall be annually appropriated24each fiscal year through the fiscal year ending September 30,251995 to the local program fund created in section 11e.Beginning 26 October 1, 1995, a state grant of not less than $33,000,000.00, 27 as may be annually appropriated each fiscal year, after the 00192'97 6 1 payment of debt service pursuant to section 11(1)(a), shall be 2 made to the local program fund created in section 11e. 3 (ii)(B)39.1% to the county road commissions of the 4 state. 5 (iii)(C)21.8% to the cities and villages of the state. 6 (2) If a distribution formula is not enacted into law for 7 any time period beginning after September 30, 1998, the following 8 amounts are appropriated each fiscal year thereafter with the 9 balance reverting to the Michigan transportation fund until a 10 distribution formula is enacted: 11 (a) An amount is apportioned and appropriated to the compre- 12 hensive transportation fund sufficient to pay the principal and 13 interest payments due on bonds and notes issued for comprehensive 14 transportation purposes under section 18b. 15 (b) An amount is apportioned and appropriated to the state 16 trunk line fund sufficient to pay the principal and interest pay- 17 ments due on bonds and notes issued for those purposes for which 18 the state transportation commission may issue bonds and notes 19 under section 18b, except for those bonds and notes issued for 20 comprehensive transportation purposes, and sufficient to pay the 21 obligations of the state trunk line fund pursuant to contracts 22 entered into under section 18d, which contributions are pledged 23 for the payment of principal and interest on bonds issued under 24 section 18d. 25 (c) An amount is apportioned and appropriated to county road 26 commissions sufficient to pay the principal and interest payments 27 due on bonds and notes described in section 12(8). 00192'97 7 1 (d) An amount is apportioned and appropriated to cities and 2 villages sufficient to pay the principal and interest payments 3 due on bonds and notes described in section 13(3)(a). 4 (3) The money appropriated pursuant to this section shall be 5 used for the purposes as provided in this act and any other 6 applicable act. The department shall develop programs to assist 7 small businesses as defined by law in becoming qualified to bid. 8 (4) The distribution formula enacted into law after 9 September 30, 1998 shall not adversely affect the ability of the 10 state or a city, village, county, or county road commission which 11 has issued bonds or notes payable from the Michigan transporta- 12 tion fund or the motor vehicle highway fund to pay the debt serv- 13 ice on those bonds or notes. 14 (5) Thirty-one and one-half percent of the funds appropri- 15 ated to this state from the federal government pursuant to 23 16 U.S.C. 157, commonly known as minimum allocation and donor state 17 bonus funds, shall be allocated to the transportation economic 18 development fund, if such an allocation is consistent with fed- 19 eral law. These funds shall be distributed 16-1/2% for develop- 20 ment projects for rural counties as defined by law and 15% for 21 capacity improvement or advanced traffic management systems in 22 urban counties as defined by law. Federal funds allocated for 23 distribution under this section shall be eligible for obligation 24 and use by all recipients as defined by the intermodal surface 25 transportation efficiency act of 1991, Public Law 102-240, 105 26 Stat. 1914. 00192'97 8 1 Sec. 10c. As used in this act: 2 (a) "Urban or rural area" means a contiguous developed area, 3 including the immediate surrounding area, where transportation 4 services should reasonably be provided presently or in the 5 future; the area within the jurisdiction of an eligible authori- 6 ty; or for the purpose of receiving funds for public transporta- 7 tion, a contiguous developed area having a population of less 8 than 50,000 population that has an urban public transportation 9 program approved by the state transportation department and for 10 which the state transportation commission determines that public 11 transportation services should reasonably be provided presently 12 or in the future. 13 (b) "Eligible authority" means an authority organized pursu- 14 ant to the metropolitan transportation authorities act of 1967, 15Act No. 204 of the Public Acts of 1967, as amended, being sec-16tions 124.401 to 124.426 of the Michigan Compiled Laws1967 PA 17 204, MCL 124.401 TO 124.426. 18 (c) "Eligible governmental agency" means a county, city, or 19 village or an authority created pursuant toAct No. 55 of the20Public Acts of 1963, as amended, being sections 124.351 to21124.359 of the Michigan Compiled Laws1963 PA 55, MCL 124.351 TO 22 124.359; the urban cooperation act of 1967,Act No. 7 of the23Public Acts of the Extra Session of 1967, being sections 124.50124to 124.512 of the Michigan Compiled Laws; Act No. 8 of the Public25Acts of the Extra Session of 1967, being sections 124.531 to26124.536 of the Michigan Compiled Laws; Act No. 35 of the Public27Acts of 1951, as amended, being sections 124.1 to 124.13 of the00192'97 9 1Michigan Compiled Laws1967 (EX SESS) PA 7, MCL 124.501 TO 2 124.512; 1967 (EX SESS) PA 8, MCL 124.531 TO 124.536; 1951 PA 35, 3 MCL 124.1 TO 124.13; the public transportation authority act, 4Act No. 196 of the Public Acts of 1986, being sections 124.4515to 124.479 of the Michigan Compiled Laws1986 PA 196, MCL 6 124.451 TO 124.479; or the revenue bond act of 1933,Act No. 947of the Public Acts of 1933, as amended, being sections 141.101 to8141.140 of the Michigan Compiled Laws1933 PA 94, MCL 141.101 TO 9 141.140. 10 (d) "Transit vehicle" means a bus, rapid transit vehicle, 11 railroad car, water vehicle, taxicab, or other type of public 12 transportation vehicle or individual unit, whether operated 13 singly or in a group which provides public transportation. 14 (e) "Transit vehicle mile" means a transit vehicle operated 15 for 1 mile in public transportation service including demand 16 actuated and line-haul vehicle miles. 17 (f) "Demand actuated vehicle" means a bus or smaller transit 18 vehicle operated for providing group rides to members of the gen- 19 eral public paying fares individually, and on demand rather than 20 in regularly scheduled route service. 21 (g) "Demand actuated vehicle mile" means a demand actuated 22 vehicle operated for 1 mile in service to the general public. 23 (h) "Public transportation","comprehensive24transportation","public transportation service", 25"comprehensive transportation service",OR "public transporta- 26 tion purpose", or "comprehensive transportation purpose"means 27 the movement of people and goods by publicly or privately owned 00192'97 10 1 water vehicle, bus, railroad car, aircraft, rapid transit 2 vehicle, taxicab, or other conveyance which provides general or 3 special service to the public, but not including charter or 4 sightseeing service or transportation which is exclusively for 5 school purposes. Public transportation, public transportation 6 services, or public transportation purposes; and comprehensive7transportation, comprehensive transportation services, or compre-8hensive transportation purposes as defined in this subdivision9 are declared by law to be transportation purposes within the 10 meaning of section 9 of article IX of the state constitution of 11 1963. 12 (i) "State transportation commission" means the state trans- 13 portation commissionor the state highway commissionas estab- 14 lished in section 28 of article V of the state constitution of 15 1963. 16 (j) "Governmental unit" means the state transportation 17 department,state highway commission or thestate transporta- 18 tion commission, or a county road commission. 19 (k) "Department" or "department of transportation" means the 20 state transportation department, which may be referred to admin- 21 istratively as the department of transportation. 22 Enacting section 1. Sections 10b, 10d, 10e, 10g, 10h, 10j, 23 10k, 10l, and 10n of 1951 PA 51, MCL 247.660b, 247.660d, 24 247.660e, 247.660g, 247.660h, 247.660j, 247.660k, 247.660l, and 25 247.660n, are repealed. 00192'97 Final page. TJS