HB-5375, As Passed House, February 3, 2004
SUBSTITUTE FOR
HOUSE BILL NO. 5375
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 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, 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 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 10e (MCL 247.660e), as amended by 1998 PA
87.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 10e. (1) The comprehensive transportation fund is
2 appropriated for each fiscal year in the following order of
3 priority.
4 (2) The first priority is to pay, but only from money
5 restricted as to use by section 9 of article IX of the state
6 constitution of 1963, the principal and interest on bonds or
7 notes issued under section 18b for comprehensive transportation
8 purposes as defined by law. A sufficient portion of the
9 comprehensive transportation fund is irrevocably appropriated to
10 pay, when due, the principal and interest on those bonds and
11 notes.
12 (3) After making or setting aside payments required by
13 subsection (2), the second priority of the comprehensive
14 transportation fund is the payment of the department's cost in
15 administering the comprehensive transportation fund. The amount
House Bill No. 5375 (H-1) as amended February 3, 2004
1 to be expended pursuant to this subsection shall not exceed the
2 costs appropriated for the administration of the fund in the
3 fiscal year ending September 30, 1987, as adjusted annually on
4 October 1, by the change for the preceding 12 months in the
5 Detroit consumer price index for urban wage earners and shall be
6 appropriated annually by the legislature.
7 (4) After making or setting aside payments required by
8 subsections (2) and (3), the balance of the comprehensive
9 transportation fund shall be expended each fiscal year as
10 appropriated annually by
the legislature [pursuant to the state
11 transportation
program approved by the commission] as follows:
12 (a) The third priority shall be the payment of operating
13 grants to eligible authorities and eligible governmental agencies
14 according to the following formulations and subject to the
15 following requirements:
16 (i) For the fiscal year ending September 30, 1998, and for
17 each fiscal year thereafter, each eligible authority and eligible
18 governmental agency which provides public transportation services
19 in urbanized areas under Public
Law 103-272, 49 U.S.C. 5307 49
20 USC 5307, with a Michigan population greater than 100,000 shall
21 receive a grant of up to 50% of their eligible operating expenses
22 as defined by the state transportation department.
23 (ii) For the fiscal year ending September 30, 1998, and each
24 fiscal year thereafter, each eligible authority and eligible
25 governmental agency which provides public transportation services
26 in urbanized areas with a Michigan population less than or equal
27 to 100,000 and
nonurbanized areas under Public Law 103-272, 49
1 U.S.C. 5311 49 USC 5311, shall receive a grant of up to
60% of
2 their eligible operating expenses as defined by the state
3 transportation department. For purposes of receiving a grant
4 under this subparagraph in nonurbanized areas, eligible costs of
5 services provided by water vehicle shall be reimbursed at not
6 less than 50% of the portion of the costs not eligible for
7 reimbursement by the federal government.
8 (iii) Funds shall not be distributed to an eligible authority
9 or eligible governmental agency under this act unless the
10 eligible authority or eligible governmental agency provides or
11 agrees to provide preferential fares for public transportation
12 services to persons 65 years of age or over or persons with
13 disabilities riding in off peak periods of service. As used in
14 this section, "person with disabilities" means an individual with
15 a disability as that term
is defined in 61 F.R.P. 56424 61 FR
16 56424 (November 1, 1996) and
49 C.F.R. 49 CFR part 27. The
17 preferential fares shall not be higher than 50% of the regular
18 1-way single fare.
19 (iv) Eligible authorities and eligible governmental agencies
20 shall not engage in charter service using vehicles, facilities,
21 or equipment funded under this act except on an incidental basis
22 as defined by 49
C.F.R. 49 CFR part 604.
23 (v) Notwithstanding any other provision of this
subsection,
24 for the fiscal year
ending September 30, 1998, each eligible
25 authority and eligible
governmental agency shall receive a
26 distribution from the
comprehensive transportation fund not less
27 than the distribution
received for eligible operating expenses
1 for the fiscal year
ending September 30, 1997. Beginning
with
2 the fiscal year ending September 30, 1998 and each fiscal year
3 thereafter, each eligible authority and eligible governmental
4 agency shall receive a distribution from the comprehensive
5 transportation fund for eligible operating expenses not less than
6 the distribution received for the fiscal year ending
7 September 30, 1997. As it relates to this subsection the ratio
8 between comprehensive transportation funds and local funds in the
9 fiscal year ending September 30, 1989 shall be maintained for all
10 fiscal years by the eligible authority and eligible governmental
11 agency. Reductions in this ratio shall require a proportionate
12 reduction in the comprehensive transportation funds provided for
13 any fiscal year.
14 (vi) Each eligible authority and eligible governmental agency
15 receiving comprehensive transportation funds shall prepare and
16 submit to the department a quarterly report of the progress made
17 in carrying out its local transportation program within 40 days
18 after the end of each fiscal year quarter. The progress report
19 shall be made on forms authorized by the United States department
20 of transportation under the
provisions of the surface
21 transportation and uniform relocation assistance act of 1987,
22 Public Law 100-17, 101 Stat. 132.
23 (vii) The department shall periodically adjust or
24 redistribute comprehensive transportation funds previously
25 distributed under this subdivision.
26 (b) For the fiscal year ending September 30, 1997, and each
27 fiscal year thereafter, not less than 10% shall be distributed by
1 the department for intercity passenger and intercity freight
2 transportation purposes.
3 (c) For the fiscal year ending September 30, 1997, and each
4 fiscal year thereafter, funds remaining in the fund after payment
5 of the amounts required by subdivisions (a) and (b) shall be
6 distributed by the department for public transportation
7 purposes. For the fiscal year ending September 30, 1998, and
8 each fiscal year thereafter, funds shall be made available to
9 match all projects for eligible authorities and eligible
10 governmental agencies that are approved for federal funding as
11 provided by federal law and for which an approved transportation
12 improvement program (TIP) and state transportation improvement
13 plan (STIP) exist. Funds distributed under this subdivision
14 shall be expended pursuant to specific line item appropriation
15 for, but are not limited to, the following public transportation
16 purposes:
17 (i) The specialized services assistance program. The
18 specialized services assistance program shall be funded with not
19 less than $3,600,100.00 from funds distributed under this
20 subdivision. Funds shall be distributed according to guidelines
21 developed by the department based upon the following
22 considerations:
23 (A) Proposals for coordinated specialized services assistance
24 funding shall be developed jointly between existing eligible
25 authorities or eligible governmental agencies that provide public
26 transportation services and the area agencies on aging or any
27 other organization representing specialized services interests,
1 as defined in this subdivision. Plans shall be reviewed and
2 approved by the bureau of urban and public transportation of the
3 department. Upon approval, the department shall release the
4 funds to the eligible authority or eligible governmental agency
5 which shall then allocate the funds to the area agency on aging
6 or any other organization representing specialized services
7 interests, as defined in this subdivision for the purchase of
8 services as approved in the plan by the department.
9 (B) If an eligible authority or eligible governmental agency
10 does not exist to provide public transportation service in a
11 county, coordinated proposals for specialized services assistance
12 funding may be submitted by the area agency on aging or any other
13 organization representing specialized services interests, as
14 defined in this subdivision. The proposals shall be reviewed and
15 approved by the bureau of urban and public transportation of the
16 department. Upon approval, the department shall release the
17 funds to the area agency on aging or any other organization
18 representing specialized services interests, as defined in this
19 subdivision for the purchase of services as approved in the plan
20 by the department.
21 (C) For the purposes of this program, "specialized services"
22 means public transportation primarily designed for persons with
23 disabilities or persons who are 65 years of age or older.
24 (ii) Local bus capital. For the fiscal year ending
25 September 30, 1998 and each fiscal year thereafter, not less than
26 $8,000,000.00 will be distributed for either matching federal
27 funds for local bus capital or 100% capital projects for eligible
1 authorities and eligible governmental agencies that are not
2 eligible to receive federal capital formula funds under section
3 5307 of the federal intermodal surface transportation efficiency
4 act, Public Law
102-240, or any successor act 49 USC 5307.
5 (iii) Local bus new services.
6 (iv) Not less than $2,000,000.00 in each fiscal year for the
7 credit program established under section 10l.
8 (v) Public transportation development.
9 (vi) Other public transportation programs approved by the
10 commission.
11 (d) The unappropriated and unencumbered balance of the
12 comprehensive transportation fund lapses at the end of each
13 fiscal year and reverts to the comprehensive transportation fund
14 for appropriation in the following fiscal year.
15 (5) Eligible authorities and eligible governmental agencies
16 shall receive capital grants each fiscal year by the annual
17 process described in this section. Amounts received by an
18 eligible authority or eligible governmental agency pursuant to
19 this subsection shall be expended by that authority or agency
20 solely for capital projects which have been approved by the state
21 transportation commission. Any funds approved by distribution to
22 an eligible authority or eligible governmental agency pursuant to
23 this section which have not been encumbered by that agency or
24 authority for an approved capital project by the end of the
25 following fiscal year in which the funds were approved shall not
26 be expended by the authority or agency and be available for
27 distribution from the comprehensive transportation fund for the
1 purposes described in this section.
2 (6) The department, in carrying out the policy of the state
3 transportation commission, shall annually prepare and distribute
4 by December 1, instructions to eligible governmental agencies,
5 eligible authorities, and intercity carriers to enable the
6 preparation of a local transportation program. Eligible
7 governmental agencies, eligible authorities, and intercity
8 carriers shall give public notice of their intent to apply for
9 money in the comprehensive transportation fund to the residents
10 of the counties, townships, villages, and cities affected by the
11 local transportation program and shall make their application
12 available for a period of 30 days. All comments received by the
13 eligible governmental agency, eligible authority, or intercity
14 carrier shall be transmitted to the department.
15 (7) On or before March 1 of each year, each intercity
16 carrier, eligible authority, and eligible governmental agency
17 shall submit to the department its local transportation program
18 for the next succeeding fiscal year. The format for each local
19 transportation program shall be as prescribed by the federal
20 transportation improvement program insofar as practical and shall
21 include project descriptions, funding sources, and justification
22 for each line item, and summary budgets based on distributions
23 anticipated under subsection (4). The program shall contain at a
24 minimum the contemplated routes, hours of service, estimated
25 transit vehicle miles, costs of public transportation services,
26 and projected capital improvements or projects as exclusively
27 determined by the eligible authority or eligible governmental
1 agency. The costs of service and capital improvements or
2 projects shall be in sufficient detail to permit the state
3 transportation department to evaluate and approve the annual
4 public transportation program. Determination of individual
5 projects to be included in the local transportation programs
6 other than those provided in this subsection shall be made by the
7 governing body of the eligible authority or eligible governmental
8 agency.
9 (8) On or before
March 1 of each year As required under 23
10 USC 134, 23 USC 135, and 49 USC 5303 through 5305, the department
11 shall, on a biennial basis, prepare and file for public
12 inspection and review the
department state transportation
13 improvement program. The
department state transportation
14 improvement program shall be prepared on similar format to the
15 local transportation
programs, and shall include a summary
16 description of projects, with funding sources and project
17 justifications for each line item for the fiscal year immediately
18 succeeding the fiscal year in which the program is submitted. In
19 addition, the department transportation program shall include
20 summary, nondetailed budget information and project descriptions
21 and justifications excluding projects contained in a local
22 transportation program.
23 (9) On or before
April 1 of each year Within 30 days after
24 receiving approval of the state transportation improvement
25 program prepared and filed pursuant to subsection (8) and 23 USC
26 135, the department shall
prepare and file with the commission
27 the proposed state
transportation improvement program. for the
1 next succeeding fiscal
year. The proposed state
transportation
2 improvement program shall contain the local transportation
3 programs of each intercity carrier, eligible authority and
4 eligible governmental agency, the department transportation
5 program, and the programs for the expenditure of the state trunk
6 line fund as they may have been supplemented, amended, or
7 modified since their original filing. The state transportation
8 improvement program shall include the estimated amount of money
9 in the funds described in this subsection by revenue source,
10 project justifications, project descriptions funding sources, and
11 budget summaries.
12 (10) On or before
May 1 of each year, the state
13 transportation
commission shall act on the state transportation
14 program for the fiscal
year commencing on the following
15 October 1. In
considering approval of the proposed projects of
16 each intercity
carrier, eligible authority, or eligible
17 governmental agency,
other than projects which are to be funded
18 pursuant to subsection
(5), the state transportation commission
19 shall consider whether
the projects comply with state law, are
20 within funds allocated
in this section, whether they may be
21 funded within the
approved budgets, whether there are intercity
22 carriers, eligible
authorities, and eligible governmental
23 agencies responsible
to implement the projects, and the
24 recommendations of the
department on individual projects. Upon
25 making those
determinations, the state transportation commission
26 shall approve the
projects which best meet the criteria of this
27 subsection.
1 (10) (11) By
October 1, the department and each intercity
2 carrier, eligible authority, or eligible governmental agency
3 shall enter into a contractual agreement or standardized grant
4 memorandum of agreement, which may cover 1 or more projects to be
5 made from this section in the applicable fiscal year to the
6 intercity carrier, eligible authority, or eligible governmental
7 agency from the comprehensive transportation fund.
8 (11) (12) After
a multiyear public transportation program
9 is approved by the state transportation commission, the state
10 transportation department may enter into a grant-in-aid
11 instrument with an eligible authority, intercity carrier, or
12 eligible governmental agency obligating the state to a minimum
13 level of funding for approved projects to be available over the
14 multiyear period of the program. This obligation shall be
15 binding upon the state transportation department as long as the
16 provisions and conditions of the state transportation commission
17 approved program are carried out as agreed.
18 (12) (13) Contracts
and grant memorandum agreements may be
19 audited by the state transportation commission's office of
20 commission audits using rules promulgated by the United States
21 general accounting office and the terms and conditions of the
22 respective contracts and agreements. Third party agreements are
23 subject to the review and approval of the department.
24 (13) (14) Funds
distributed by the department may pay 100%
25 of the portion of the cost not eligible for reimbursement by the
26 federal government for eligible capital projects authorized by
27 the state transportation commission using comprehensive
1 transportation funds or the proceeds of notes and bonds issued
2 under section 18b. Priority for funding obligation shall be
3 given to capital projects for which federal funds have been
4 authorized.
5 (14) (15) All
approved local bus new services initiated by
6 eligible authorities and eligible governmental agencies not in
7 their fourth year or beyond of funding on October 1, 1988, shall
8 be funded from subsection (4)(c)(iii). Local bus new services
9 shall be funded under subsection (4)(c)(iii) in the following
10 percentages of eligible operating expenses as determined by the
11 department:
12 (a) Startup 100%.
13 (b) First year 90%.
14 (c) Second year 80%.
15 (d) Third year 70%.
16 (e) Fourth year and each year thereafter, as determined by
17 and from funds provided under subsection (4)(a). The balance of
18 eligible operating expenses shall be met from local revenue
19 sources including farebox. The department shall pay up to 100%
20 of eligible capital expenses during the startup and first 3 years
21 of service, after the third year, the department shall
22 participate in eligible capital expenses in the same percentage
23 as for other eligible authorities and eligible governmental
24 agencies. For the purposes of this subsection, eligible
25 operating and capital
expenses means those expenses determined
26 by the department as to
be applicable to existing eligible
27 authorities and eligible governmental agencies. The department
1 shall prioritize annually all requests for comprehensive
2 transportation funds to institute new services under this
3 subsection. First priority shall be given to eligible
4 authorities and eligible governmental agencies who have not
5 completed their first 3 years of service by October 1, 1998. New
6 services initiated by eligible authorities and eligible
7 governmental agencies under this subsection shall meet all of the
8 requirements of section 10.
9 (15) (16) The
department shall pay up to 80% of the portion
10 of the cost not eligible for reimbursement by the federal
11 government for intercity passenger operating assistance projects
12 authorized by the commission for the first 2 years of new
13 services. For the third year, eligible costs shall be reimbursed
14 at up to 60% of the portion of the cost not eligible for
15 reimbursement by the federal government. After the third year,
16 eligible costs shall be reimbursed at up to 50% of the portion of
17 the cost not eligible for reimbursement by the federal
18 government. Eligible costs of services provided as of
19 September 30, 1981, shall be reimbursed at up to 50% of the
20 portion of the cost not eligible for reimbursement by the federal
21 government. However, the amount of funds from the comprehensive
22 transportation fund when added to federal funds and local funds
23 shall not exceed the total operating assistance project cost.
24 (16) (17) A
vehicle purchased, leased, or rented after
25 November 15, 1976, by an eligible authority or eligible
26 governmental agency with funds made available under this act,
27 which funds were not already committed under a contract in
1 existence on November 15, 1976, shall not be used to provide
2 service on a fixed schedule and fixed route for which a passenger
3 fee is charged unless the vehicle is accessible to a person using
4 a wheelchair from a roadway level or curb level, and has
5 accommodations in which 1 or more wheelchairs can be secured.
6 (17) (18) A
vehicle shall not be purchased, leased, or
7 rented by an eligible authority or eligible governmental agency
8 after October 1, 1978, with funds made available under this act
9 which vehicle is used to provide demand actuated service unless
10 the eligible authority or eligible governmental agency has
11 submitted a plan to the state transportation department
12 describing the service to be provided by the demand actuated
13 service to persons 65 years of age or older and persons with
14 disabilities within the applicable service area and that plan has
15 been approved by the department. The department shall approve
16 the plan as submitted or modified or shall reject the plan within
17 60 days after the plan is submitted. A plan which describes the
18 service to be provided by the demand actuated service shall not
19 be approved by the department unless that plan provides the
20 following:
21 (a) That demand actuated service will be provided to persons
22 65 years of age or older and persons with disabilities residing
23 in the entire service area subject to the plan.
24 (b) That as a minimum, demand actuated service will be
25 provided to persons 65 years of age or older and persons with
26 disabilities during the same hours as service is provided to all
27 other persons in the service area subject to the plan.
1 (c) That the average time period required for demand actuated
2 service to persons 65 years of age or older and persons with
3 disabilities from the initiation of a service request to arrival
4 at the destination is equal to the average time period required
5 for demand actuated service provided to all other persons in the
6 service area subject to the plan.
7 (d) That the eligible authority or eligible governmental
8 agency submitting the plan has established a local advisory
9 council with not less than 50% of its membership representing
10 persons 65 years of age or older and persons with disabilities
11 within the service area subject to the plan and that the local
12 advisory council has had an opportunity to review and comment
13 upon the plan before its submission to the department. Each
14 eligible authority or eligible governmental agency jointly with
15 the area agency on aging shall approve at least 1 or the
16 equivalent of 12% of the membership of the local advisory
17 council. Each advisory council comment shall be included in the
18 plan when submitted to the department.
19 (18) (19) Notwithstanding
subsection (18) (17), a plan
20 required by subsection (18)
(17) which is not approved or
21 rejected by the state transportation department within 60 days
22 after submission shall be considered approved as submitted.
23 (19) (20) Subsections
(16), (17), and (18) , and (19)
24 shall not apply to vehicles or facilities used to transport
25 persons by rail, air, or water or to vehicles of common carriers
26 licensed by the state transportation department.
27 (20) (21) After
January 1, 1979, the department shall
1 submit an annual report to the legislature detailing the service
2 provided in the prior year for persons 65 years of age or older
3 and persons with disabilities by fixed route service and demand
4 actuated service. This report shall include a record of
5 passenger usage and shall be submitted by April 1 of each year.
6 (21) (22) Notwithstanding
any other provision of this
7 section, if the unreserved balance of the comprehensive
8 transportation fund as of September 30, 1997 is greater than
9 $50,000,000.00, then the entire unreserved balance minus
10 $50,000,000.00 shall be appropriated for the fiscal year ending
11 September 30, 1998 only to local bus transit authorities for
12 discretionary capital expenditures. These funds shall be
13 distributed to individual authorities in the same proportion
14 provided for in the
provisions of section 10e(4)(a)(i)
15 subsection (4)(a)(i) except that the costs of services provided
16 by water vehicle shall not be eligible for reimbursement.