November 25, 2008, Introduced by Rep. Byrnes and referred to the Committee on Transportation.
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).
(c) (d)
Until September 30, 2004, all 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, 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.
(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) (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.
(c) A ratio with a numerator that is the total amount of
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.
(c) The actual weights used in the calculation required under
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.
(c) "Eligible governmental agency" means a county, city, or
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.