RAIL GRADE CROSSING FUNDS - H.B. 6523: FLOOR ANALYSIS


House Bill 6523 (as reported without amendment)

Sponsor: Representative Scott Shackleton

House Committee: Transportation

Senate Committee: Transportation and Tourism


CONTENT


The bill would amend Public Act 51 of 1951, the Michigan Transportation Fund law, to revise the priority of expenditures of railroad grade crossing funds.


Current law outlines the allocation of money within the State Trunk Line Fund for specific purposes and according to certain priorities. One of these specific purposes is the transfer of funds to the Railroad Grade Crossing Account, which is used for the improvement, installation, and retirement of new or existing safety devices or other rail grade crossing improvements at rail grade crossings on public roads and streets under the jurisdiction of this State, counties, cities, and villages. Under the bill, this language would be modified to require that funds from the Railroad Grade Crossing Account be used for "rail grade crossing improvement purposes", which the bill would define.


The bill also would delete several provisions that prioritize railroad grade crossing projects, including those undertaken with Federal funds. The bill would eliminate a provision directing payment to a local road authority if the Department of Transportation and the road authority formally agree that a grade crossing should be eliminated by permanent closing of the public road or street. Currently, the road authority is to receive $5,000 from the Railroad Grade Crossing Account and may be reimbursed for the actual cost of any connecting road improvements necessitated by the grade crossing closure up to $10,000 per crossing closed. The bill would eliminate this provision, but would continue to require that the physical removal of the crossing, roadway within railroad rights-of-way and street termination treatment be negotiated between the road authority and the railroad company. The bill specifies that any funds provided to the road authority as a result of a crossing closure could be used for any transportation purpose within the road authority's jurisdiction.


MCL 247.661 - Legislative Analyst: Julie Koval


FISCAL IMPACT


The bill would have no fiscal impact on the State but would change the current limits regarding the amount a local unit may receive from the State for rail grade crossing purposes.


Date Completed: 12-9-02 - Fiscal Analyst: Bill BowermanFloor\hb6523 - Bill Analysis @ www.senate.michigan.gov/sfa

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.