HB-6752, As Passed House, December 11, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6752

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,

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 sections 10 and 10c (MCL 247.660 and 247.660c), section

10 as amended by 2007 PA 210 and section 10c as amended by 2005 PA

45.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 10. (1) A fund to be known as the Michigan transportation

fund is established and shall be set up and maintained in the state

treasury as a separate fund. Money received and collected under the

motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170, except a

license fee provided in that act, and a tax, fee, license, and

other money received and collected under sections 801 to 810 of the

Michigan vehicle code, 1949 PA 300, MCL 257.801 to 257.810, except

a truck safety fund fee provided in section 801(1)(k) of the

Michigan vehicle code, 1949 PA 300, MCL 257.801, and money received

under the motor carrier act, 1933 PA 254, MCL 475.1 to 479.43,

shall be deposited in the state treasury to the credit of the

Michigan transportation fund. In addition, income or profit derived

from the investment of money in the Michigan transportation fund

shall be deposited in the Michigan transportation fund. 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 funds 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. Funds 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 funds 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 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 for the

fiscal year ending September 30, 2006. For the fiscal year ending

September 30, 2006, the legislature may appropriate funds in excess

of $20,000,000.00 from the Michigan transportation fund for all

incremental additional expenses incurred by the department of state

in enforcing sections 801 to 810 of the Michigan vehicle code, 1949

PA 300, MCL 257.801 to 257.810, that arise because of the

replacement of standard design registration license plates as

provided in section 224 of the Michigan vehicle code, 1949 PA 300,

MCL 257.224. 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 less than $3,000,000.00 each year to the local bridge

fund established in subsection (5) 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 (10).

~~(c) 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 state trunk line fund, county road commissions, and cities and~~

~~villages in the percentages provided in subdivision (i).~~

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

repair of state bridges under section 11. Beginning October 1, 2004

and continuing through September 30, 2005, 3/4 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, shall be appropriated to the

state trunk line fund for the repair of state bridges under section

11, and 1/4 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, shall be appropriated to the local bridge fund created in

subsection (5) for distribution only to cities, villages, and

county road commissions. Beginning October 1, 2005, 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, shall be

appropriated 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, shall be appropriated to the local bridge fund

created in subsection (5) for distribution only to cities,

villages, and county road commissions.

(d) ~~(e)~~ $43,000,000.00 to the state trunk line fund for debt

service costs on state of Michigan projects.

(e) ~~(f)~~ Except as provided in subsection (4), 10% to the

comprehensive transportation fund for the purposes described in

section 10e.

(f) ~~(g)~~ $5,000,000.00 to the local bridge fund established in

subsection (5) for distribution only to the local bridge advisory

board, the regional bridge councils, cities, villages, and county

road commissions.

(g) ~~(h)~~ $36,775,000.00 to the state trunk line fund for

subsequent deposit in the transportation economic development fund,

and, as of September 30, 1997, with first priority for allocation

to debt service on bonds issued to fund transportation economic

development fund projects. In addition, beginning October 1, 1997,

$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.

House Bill No. 6752 (H-1) as amended December 11, 2008

(h) ~~(i)~~ Not less than $33,000,000.00 as may be annually

appropriated each fiscal year to the local program fund created in

section 11e.

[(i) An amount equal to $200,000.00 per movable bridge each fiscal year to the state trunk line fund for the operation, maintenance, and rehabilitation of movable bridges in this state. if the local governmental agency in which the movable bridge is located provides a match of at least 25% of the amount designated for the movable bridge.

(j) ]The balance of the Michigan transportation fund as

follows, after deduction of the amounts appropriated in

subdivisions (a) through ~~(i)~~ (h) and section 11b:

(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 the state.

(iii) 21.8% to the cities and villages of the 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 funds appropriated

to this state from the federal government pursuant to 23 USC 157,

commonly known as minimum guarantee funds, shall be allocated to

the transportation economic development fund, if such an allocation

is consistent with federal law. These funds 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 funds

allocated for distribution under this section shall be eligible for

obligation and use by all recipients as defined by the

transportation equity act for the 21st century, Public Law 105-178.

(4) For the fiscal year beginning October 1, 2003 only, the

apportionment of 10% of Michigan transportation fund money to the

comprehensive transportation fund as provided in subsection (1)(f)

shall be reduced by $10,000,000.00 and the $10,000,000.00 shall be

transferred to the state trunk line fund for capacity improvements

to state trunk line highways.

(5) A fund to be known as the local bridge fund is established

and is set up and maintained 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

state transportation 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. Names

shall be submitted within 45 days after October 1, 2004. The state

transportation commission shall make the appointments by January

30, 2005. 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.

(6) Beginning October 1, 2005, no less than 5% and no more

than 15% of the funds 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. Beginning October 1, 2005,

funds remaining after the funds allocated for critical large bridge

repair and emergencies are 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 state transportation department in each

region. The members of the state transportation department shall be

nonvoting members who shall provide qualified administrative staff

and qualified technical assistance to the regional councils.

(7) Beginning October 1, 2005, funds 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.

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.

(8) Beginning October 1, 2005, the regional bridge councils

shall allocate the funds 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.

(9) Beginning January 1, 2007 and each January after 2007, 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.

subsection (7).

(d) A listing of the total money distributed to each region.

(e) A listing of what specific projects were funded pursuant

to subsection (8).

(10) 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 (6). The bonds or notes issued

pursuant to this subsection may be issued by the commission for any

purpose for which other local bridge funds 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.

(11) The state transportation department shall promulgate

rules pursuant to 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.

(12) Beginning October 1, 2004, the revenue appropriated to

the local bridge fund pursuant to subsection (1)(d) shall be

distributed only to the local bridge advisory board, the regional

bridge councils, cities, villages, and county road commissions.

(13) Beginning October 1, 2008, the regional bridge councils

shall determine what bridge projects are selected for funding from

the local bridge fund created in subsection (5) 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

funds.

(14) Beginning October 1, 2008, 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 funds 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 funds 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 funds by the

regional bridge council. Based on available local bridge funds,

when a bridge project that was implemented with borrowed funds 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 funds were borrowed. To be eligible for repayment of

the amount borrowed, a bridge project that has been implemented

with borrowed funds shall be administered through the department's

local bridge program.

Sec. 10c. As used in this act:

(a) "Urban or rural area" means a contiguous developed area,

including the immediate surrounding area, where transportation

services should reasonably be provided presently or in the future;

the area within the jurisdiction of an eligible authority; or for

the purpose of receiving funds for public transportation, a

contiguous developed area having a population of less than 50,000

population that has an urban public transportation program approved

by the state transportation department and for which the state

transportation commission determines that public transportation

services should reasonably be provided presently or in the future.

(b) "Eligible authority" means an authority organized pursuant

to the metropolitan transportation authorities act of 1967, 1967 PA

204, MCL 124.401 to 124.426.

village or an authority created pursuant to 1963 PA 55, MCL 124.351

to 124.359; the urban cooperation act of 1967, 1967 (Ex Sess) PA 7,

MCL 124.501 to 124.512; 1967 (Ex Sess) PA 8, MCL ~~124.1~~ 124.531 to

~~124.13~~ 124.536; 1951 PA 35, MCL 124.1 to 124.13; the public

transportation authority act, 1986 PA 196, MCL 124.451 to 124.479;

or the revenue bond act of 1933, 1933 PA 94, MCL 141.101 to

141.140.

(d) "Transit vehicle" means a bus, rapid transit vehicle,

railroad car, water vehicle, street railway car, taxicab, or other

type of public transportation vehicle or individual unit, whether

operated singly or in a group which provides public transportation.

(e) "Transit vehicle mile" means a transit vehicle operated

for 1 mile in public transportation service including demand

actuated and line-haul vehicle miles.

(f) "Demand actuated vehicle" means a bus or smaller transit

vehicle operated for providing group rides to members of the

general public paying fares individually, and on demand rather than

in regularly scheduled route service.

(g) "Demand actuated vehicle mile" means a demand actuated

vehicle operated for 1 mile in service to the general public.

(h) "Public transportation", "comprehensive transportation",

"public transportation service", "comprehensive transportation

service", "public transportation purpose", or "comprehensive

transportation purpose" means the movement of people and goods by

publicly or privately owned water vehicle, bus, railroad car,

aircraft, rapid transit vehicle, taxicab, or other conveyance which

provides general or special service to the public, but not

including charter or sightseeing service or transportation which is

exclusively for school purposes. Public transportation, public

transportation services, or public transportation purposes; and

comprehensive transportation, comprehensive transportation

services, or comprehensive transportation purposes as defined in

this subdivision are declared by law to be transportation purposes

within the meaning of section 9 of article IX of the state

constitution of 1963.

(i) "State transportation commission" means the state

transportation commission established in section 28 of article V of

the state constitution of 1963.

(j) "Governmental unit" means the state transportation

department, the state transportation commission, a county road

commission, a city, or a village.

(k) "Department" or "department of transportation" means the

state transportation department, which may be referred to

administratively as the department of transportation.

(l) "Preservation" means an activity undertaken to preserve the

integrity of the existing roadway system. Preservation does not

include new construction of highways, roads, streets, or bridges, a

project that increases the capacity of a highway facility to

accommodate that part of traffic having neither an origin nor

destination within the local area, widening of a lane width or

more, or adding turn lanes of more than 1/2 mile in length.

Preservation includes, but is not limited to, 1 or more of the

following:

(i) Maintenance.

(ii) Capital preventive treatments.

(iii) Safety projects.

(iv) Reconstruction.

(v) Resurfacing.

(vi) Restoration.

(vii) Rehabilitation.

(viii) Widening of less than the width of 1 lane.

(ix) Adding auxiliary weaving, climbing, or speed change lanes.

(x) Modernizing intersections.

(xi) Adding auxiliary turning lanes of 1/2 mile or less.

(xii) Installing traffic signs in new locations, installing

signal devices in new locations, and replacing existing signal

devices.

(m) "Maintenance" means routine maintenance or preventive

maintenance, or both. Maintenance does not include capital

preventive treatments, resurfacing, reconstruction, restoration,

rehabilitation, safety projects, widening of less than 1 lane

width, adding auxiliary turn lanes of 1/2 mile or less, adding

auxiliary weaving, climbing, or speed-change lanes, modernizing

intersections, or the upgrading of aggregate surface roads to hard

surface roads. Maintenance of state trunk line highways does not

include streetlighting except for freeway lighting for traffic

safety purposes.

(n) "Routine maintenance" means actions performed on a regular

or controllable basis or in response to uncontrollable events upon

a highway, road, street, or bridge. Routine maintenance includes,

but is not limited to, 1 or more of the following:

(i) Snow and ice removal.

(ii) Pothole patching.

(iii) Unplugging drain facilities.

(iv) Replacing damaged sign and pavement markings.

(v) Replacing damaged guardrails.

(vi) Repairing storm damage.

(vii) Repair or operation of traffic signs and signal systems.

(viii) Emergency environmental cleanup.

(ix) Emergency repairs.

(x) Emergency management of road closures that result from

uncontrollable events.

(xi) Cleaning streets and associated drainage.

(xii) Mowing roadside.

(xiii) Control of roadside brush and vegetation.

(xiv) Cleaning roadside.

(xv) Repairing lighting.

(xvi) Grading.

(o) "Preventive maintenance" means a planned strategy of cost-

effective treatments to an existing roadway system and its

appurtenances that preserve assets by retarding deterioration and

maintaining functional condition without significantly increasing

structural capacity. Preventive maintenance includes, but is not

limited to, 1 or more of the following:

(i) Pavement crack sealing.

(ii) Micro surfacing.

(iii) Chip sealing.

(iv) Concrete joint resealing.

(v) Concrete joint repair.

(vi) Filling shallow pavement cracks.

(vii) Patching concrete.

(viii) Shoulder resurfacing.

(ix) Concrete diamond grinding.

(x) Dowel bar retrofit.

(xi) Bituminous overlays of 1-1/2 inches or less in thickness.

(xii) Restoration of drainage.

(xiii) Bridge crack sealing.

(xiv) Bridge joint repair.

(xv) Bridge seismic retrofit.

(xvi) Bridge scour countermeasures.

(xvii) Bridge painting.

(xviii) Pollution prevention.

(xix) New treatments as they may be developed.

(p) "County road commission" means the board of county road

commissioners elected or appointed pursuant to section 6 of chapter

IV of 1909 PA 283, MCL 224.6, or, in the case of a charter county

with a population of 2,000,000 or more with an elected county

executive that does not have a board of county road commissioners,

the county executive for ministerial functions and the county

commission provided for in section 14(1)(d) of 1966 PA 293, MCL

45.514, for legislative functions.

(q) "Capital preventive treatments" means any preventive

maintenance category project on state trunk line highways that

qualifies under the department's capital preventive maintenance

program.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law: