SENATE BILL No. 636
September 19, 2001, Introduced by Senator YOUNG 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 establish certain standards for road contracts for cer-
tain businesses; to provide for the continuing review of trans-
portation needs within the state; to authorize the state trans-
portation 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 appropria-
tions and tax levies by counties and townships for county roads;
to authorize contributions by townships for county roads; to pro-
vide for the establishment and administration of the state trunk
line fund, critical bridge fund, comprehensive transportation
fund, and certain other funds; to provide for the deposits in the
state trunk line fund, critical bridge fund, comprehensive
04967'01 TJS
2
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 submis-
sion 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 offi-
cials; to provide for the making of loans for transportation pur-
poses 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 2000 PA 188.
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 under 1927 PA
150, MCL
207.101 to 207.202 THE MOTOR FUEL
5 TAX ACT, 2000 PA 403, MCL 207.1001 TO 207.1170, except a license
6 fee provided in that act, and a tax, fee, license, and other
7 money received and collected under sections 801 to 810 of the
8 Michigan vehicle code, 1949 PA 300, MCL 257.801 to 257.810,
9 except a truck safety fund fee provided in section 801(1)(k) of
10 1949 PA 300, MCL 257.801, and money received under the motor car-
11 rier act, 1933 PA 254, MCL 475.1 to 479.43, shall be deposited in
12 the state treasury to the credit of the Michigan transportation
13 fund. In addition, income or profit derived from the investment
14 of money in the Michigan transportation fund shall be deposited
15 in the Michigan transportation fund. Except as provided in this
16 act, no other money, whether appropriated from the general fund
17 of this state or any other source, shall be deposited in the
04967'01
3
1 Michigan transportation fund. Except as otherwise provided in
2 this section, the legislature shall appropriate funds for the
3 necessary expenses incurred in the administration and enforcement
4 of 1927 PA 150, MCL
207.101 to
207.202 THE MOTOR FUEL TAX ACT,
5 2000 PA 403, MCL 207.1001 TO 207.1170, 1933 PA 254, MCL 475.1 to
6 479.43, and sections 801 to 810 of the Michigan vehicle code,
7 1949 PA 300, MCL 257.801 to 257.810. Funds appropriated for nec-
8 essary expenses shall be based upon established cost allocation
9 methodology that reflects actual costs. Beginning with the
10 fiscal year ending September 30, 1998 and the next 2 succeeding
11 fiscal years thereafter, funds appropriated for these administra-
12 tive expenses for all state agencies and departments, other than
13 the department, the commission, the department of environmental
14 quality expedited permit processing program for road agencies,
15 the department of state, and the attorney general shall be phased
16 out until further funds are no longer appropriated for this
17 purpose. All money in the Michigan transportation fund is appor-
18 tioned and appropriated in the
following manner ORDER:
19 (A) 10% TO THE COMPREHENSIVE TRANSPORTATION FUND FOR THE
20 PURPOSES DESCRIBED IN SECTION 10E.
21 (B) (a)
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 (C) (b)
Not less than
$3,000,000.00 each year to the crit-
25 ical bridge fund established in section 11b for the purpose of
26 payment of the principal, interest, and redemption premium on any
04967'01
4
1 notes or bonds issued by the state transportation commission
2 under section 11b.
3 (D) (c)
Revenue from 3 cents
of the tax levied under
4 section 2(1) of 1950 PA 127, MCL 207.102, to the state trunk line
5 fund, county road commissions, and cities and villages in the
6 percentages provided in subdivision (i).
7 (E) (d)
Revenue from 1 cent
of the tax levied under
8 section 2(1) of 1950 PA 127, MCL 207.102, to the state trunk line
9 fund for repair of state bridges under section 11.
10 (F) (e)
$43,000,000.00 to the
state trunk line fund for
11 debt service costs on state of Michigan projects.
12 (f) 10% to the
comprehensive
transportation fund for the
13 purposes described in
section 10e.
14 (g) $36,775,000.00 to the state trunk line fund for subse-
15 quent deposit in the transportation economic development fund,
16 and, as of September 30, 1997, with first priority for allocation
17 to debt service on bonds issued to fund transportation economic
18 development fund projects. In addition, beginning October 1,
19 1997, $3,500,000.00 is appropriated from the Michigan transporta-
20 tion fund to the state trunk line fund for subsequent deposit in
21 the transportation economic development fund to be used for eco-
22 nomic development road projects in any of the targeted industries
23 described in section 9(1)(a) of 1987 PA 231, MCL 247.909.
24 (h) Not less than $33,000,000.00 as may be annually appro-
25 priated each fiscal year to the local program fund created in
26 section 11e.
04967'01
5
1 (i) The balance of the Michigan transportation fund as
2 follows, after deduction of the amounts appropriated in
3 subdivisions (a) through (h) and section 11b:
4 (i) 39.1% to the state trunk line fund for the purposes
5 described in section 11.
6 (ii) 39.1% to the county road commissions of the state.
7 (iii) 21.8% to the cities and villages of the state.
8 (2) The money appropriated pursuant to this section shall be
9 used for the purposes as provided in this act and any other
10 applicable act. Subject to the requirements of section 9b, the
11 department shall develop programs in conjunction with the
12 Michigan state chamber of commerce and the Michigan minority
13 business development council to assist small businesses, includ-
14 ing those located in enterprise zones and those located in empow-
15 erment zones as determined under federal law, as defined by law
16 in becoming qualified to bid.
17 (3) Thirty-one and one-half percent of the funds appropri-
18 ated to this state from the federal government pursuant to 23
19 U.S.C. 157, commonly known as minimum guarantee funds, shall be
20 allocated to the transportation economic development fund, if
21 such an allocation is consistent with federal law. These funds
22 shall be distributed 16-1/2% for development projects for rural
23 counties as defined by law and 15% for capacity improvement or
24 advanced traffic management systems in urban counties as defined
25 by law. Federal funds allocated for distribution under this sec-
26 tion shall be eligible for obligation and use by all recipients
04967'01
6
1 as defined by the transportation equity act for the 21st century,
2 Public Law 105-178, 112 Stat. 107.
04967'01 Final page. TJS