HB-5408, As Passed House, March 22, 2018
SUBSTITUTE FOR
HOUSE BILL NO. 5408
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 promote safe and efficient travel for
motor vehicle drivers, bicyclists, pedestrians, and other legal
users of roads, streets, and highways; 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 section 9a (MCL 247.659a), as amended by 2012 PA 298.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9a. (1) As used in this section:
(a) "Asset management" means an ongoing process of
maintaining, preserving, upgrading, and operating physical assets
cost-effectively, based on a continuous physical inventory and
condition assessment and investment to achieve established
performance goals.
(b) "Asset management plan" means a plan created by the
department or by a local road agency and approved by the local road
agency's governing body that includes provisions for asset
inventory, performance goals, risk of failure analysis, anticipated
revenues and expenses, performance outcomes, and coordination with
other infrastructure owners.
(c) (b)
"Bridge" means a
structure including supports erected
over a depression or an obstruction, such as water, a highway, or a
railway, for the purposes of carrying traffic or other moving
loads, and having an opening measuring along the center of the
roadway of more than 20 feet between undercopings of abutments or
spring lines of arches, or extreme ends of openings for multiple
boxes where the clear distance between openings is less than 1/2 of
the smaller contiguous opening.
(d) (c)
"Central storage data
agency" means that an
agency or
office chosen by the council where the data collected is stored and
maintained.
(d)
"Council" means the transportation asset management
council
created by this section.
(e) "Department" means the state transportation department.
(f) "Federal-aid eligible" means a public road or bridge that
is eligible for federal aid to be spent for the construction,
repair, or maintenance of that road or bridge.
(g) "Local road agency" means a county road commission or
designated county road agency or city or village that is
responsible for the construction or maintenance of public roads
within the state under this act.
(h) "Michigan infrastructure council" means the Michigan
infrastructure council created in section 3 of the Michigan
infrastructure council act.
(i) (h)
"Multiyear program" means
a compilation of road and
bridge projects anticipated to be contracted for by the department
or a local road agency during a 3-year period. The multiyear
program shall include a listing of each project to be funded in
whole or in part with state or federal funds.
(j) "Region" means the geographic jurisdiction of any of the
following:
(i) A regional planning commission created under 1945 PA 281,
MCL 125.11 to 125.25.
(ii) A regional economic development commission created under
1966 PA 46, MCL 125.1231 to 125.1237.
(iii) A metropolitan area council formed under the
metropolitan councils act, 1989 PA 292, MCL 124.651 to 124.729.
(iv) A Michigan metropolitan planning organization established
under the moving ahead for progress in the 21st century act, Public
Law 112-141.
(v) An agency directed and funded by section 822f of 2016 PA
268, to engage in joint decision-making practices related to, but
not limited to, community development, economic development,
talent, and infrastructure opportunities.
(k) (i)
"State planning and
development regions" means those
agencies
required by section 134 of title 23 of the United States
Code,
23 USC 134, and those agencies
established by Executive
Directive 1968-1.
(l) "Water asset management council" means the water asset
management council created in section 5002 of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.5002.
(2) In order to provide a coordinated, unified effort by the
various
roadway road agencies within the this state,
the
transportation asset management council is hereby created within
the
state transportation commission. and is charged with advising
Upon creation of the Michigan infrastructure council, the
transportation asset management council shall be placed within the
Michigan infrastructure council.
(3) The transportation asset management council shall advise
the
commission Michigan
infrastructure council on a statewide
transportation asset management strategy and the processes and
necessary
tools needed to implement such a
that strategy, beginning
with
the federal-aid eligible highway system
, and once completed,
continuing
on with the county road and municipal systems, in a
cost-effective,
efficient manner. Nothing in this and
infrastructure assets that impact system performance, safety, or
risk
management, including signals and culverts. This section shall
does not prohibit a local road agency from using an asset
management process on its non-federal-aid eligible system.
(4) The transportation asset management council shall consist
of 10 voting members appointed by the state transportation
commission. The transportation asset management council shall
include
2 members from the county road association County Road
Association
of Michigan, 2 members from the
Michigan municipal
league,
Municipal League, 2 members from the state planning and
development
regions, 1 member from the Michigan townships
association,
Townships Association, 1 member from the Michigan
association
Association of counties, Counties, and 2 members from
the department. Nonvoting members shall include 1 person from the
agency or office selected as the location for central data storage.
Each agency with voting rights shall submit a list of 2 nominees to
the state transportation commission from which the appointments
shall
be made. The Michigan townships association Townships
Association
shall submit 1 name, and the Michigan association
Association
of counties Counties shall
submit 1 name. Names shall
be submitted within 30 days after July 3, 2002. The state
transportation commission shall make the appointments within 30
days after receipt of the lists.
(5) (3)
The positions for the department on the transportation
asset management council shall be permanent. The position of the
central data storage agency shall be nonvoting and shall be for as
long as the agency continues to serve as the data storage
repository.
The member from the Michigan association Association of
counties
Counties shall be initially appointed for 2 years. The
member
from the Michigan townships association Townships
Association shall be initially appointed for 3 years. Of the
members
first appointed from the county road association County
Road
Association of Michigan, the Michigan municipal
league,
Municipal League, and the state planning and development regions, 1
member of each group shall be appointed for 2 years and 1 member of
each group shall be appointed for 3 years. At the end of the
initial appointment, all terms shall be for 3 years. The
chairperson shall be selected from among the voting members of the
transportation asset management council. A member of the
transportation asset management council may be removed for
incompetence, dereliction of duty, malfeasance during his or her
tenure in office, or any other cause considered appropriate by the
Michigan infrastructure council.
(6) (4)
The department shall provide
qualified administrative
staff and the state planning and development regions shall provide
qualified technical assistance to the transportation asset
management council.
(5)
The council shall develop and present to the state
transportation
commission for approval within 90 days after the
date
of the first meeting the procedures and requirements that are
necessary
for the administration of the asset management process.
The
procedures and requirements developed and presented by the
council
shall, at a minimum, include the areas of training, data
storage
and collection, reporting, development of a multiyear
program,
budgeting and funding, and other issues related to asset
management.
All quality control standards and protocols shall, at a
minimum,
be consistent with existing federal requirements and
regulations
and existing government accounting standards.
(6)
The council may appoint a technical advisory panel whose
members
shall be representatives from the transportation
construction
associations and related transportation road
interests.
The asset management council shall select members to the
technical
advisory panel from names submitted by the transportation
construction
associations and related transportation road
interests.
The technical advisory panel members shall be appointed
for
3 years. The asset management council shall determine the
research
issues and assign projects to the technical advisory panel
to
assist in the development of statewide policies. The technical
advisory
panel's recommendations shall be advisory only and are not
binding
on the asset management council.
(7) The transportation asset management council may appoint
subcommittees or technical advisory committees whose members shall
serve as needed to provide research on issues and projects as
directed by the Michigan infrastructure council. A recommendation
from a subcommittee or a technical advisory committee appointed
under this subsection is advisory only and is not binding on the
Michigan infrastructure council.
(8) Except as otherwise provided in this subsection, costs
incurred for data collection, analysis, or submittal, other than
costs covered by the council for the federal-aid eligible highway
system, are the responsibility of the owner of the data. A local
road agency may request that the region collect data on local roads
or streets within that region. The region shall determine where to
collect local road or street data to expend its remaining data
collection money based upon requests received from local road
agencies.
(9) The transportation asset management council shall promote
and oversee the implementation of recommendations from the regional
infrastructure asset management pilot program on a statewide level
as the program relates to roads, bridges, and related
transportation infrastructure.
(10) No later than October 1, 2019, the transportation asset
management council shall develop a template for an asset management
plan for use by local road agencies responsible for 100 or more
certified miles of road and require its submission to the
transportation asset management council as provided in subsection
(12). No later than October 1, 2019, the transportation asset
management council shall establish a schedule for the submission of
asset management plans by local road agencies described in
subsection (11)(b) that ensures that 1/3 of those local road
agencies submit an asset management plan each year. The template
required by this subsection shall include, but is not limited to,
all of the following:
(a) Asset inventory, including the location, material, size,
and condition of the assets, in a format that allows for digital
mapping. All standards and protocols for assets shall be consistent
with government accounting standards. Standards and protocols for
assets that are eligible for federal aid shall be consistent with
federal requirements and regulations.
(b) Performance goals, including the desired condition and
performance of the assets, which shall be set by the local road
agency. Performance goals may vary among asset classes under the
local road agency's jurisdiction. If a local road agency has
jurisdiction over roads or bridges that are designated as part of
the federal National Highway System, performance goals for that
portion of the system shall be consistent with established federal
performance targets.
(c) Risk of failure analysis, including the identification of
the probability and criticality of a failure of the most critical
assets and any contingency plans.
(d) Anticipated revenues and expenses, including a description
of all revenue sources and anticipated receipts for the period
covered by the asset management plan and expected infrastructure
repair and replacement expenditures, including planned improvements
and capital reconstruction.
(e) Performance outcomes, including a determination of how the
local road agency's investment strategy will achieve the desired
levels of service and performance goals and the steps necessary to
ensure asset conditions meet or achieve stated goals and a
description and explanation of any gap between achievable condition
and performance through the investment strategy and desired goals.
(f) A description of how the local road agency plans to
coordinate with other infrastructure owners, including neighboring
jurisdictions and utilities, to minimize duplication of effort
regarding infrastructure preservation and maintenance.
(g) Proof of acceptance, certification, or adoption by the
local road agency's governing body.
(11) (7)
The department, each county road
commission, and each
city and village of this state shall annually submit a report on
infrastructure conditions and investment to the transportation
asset management council. This report shall include a multiyear
program developed through the asset management process described in
this section. All of the following apply to a multiyear program
required by this subsection:
(a) Projects contained in the department's annual multiyear
program shall be consistent with the department's asset management
process and asset management plan, and shall be reported consistent
with categories established by the transportation asset management
council.
(b) Projects contained in the annual multiyear program of each
local road agency responsible for 100 or more certified miles of
road shall be consistent with the asset management process and
asset
management plan of each that local
road agency and shall be
reported consistent with categories established by the
transportation asset management council.
(c) Projects contained in the annual multiyear program of each
local road agency responsible for less than 100 certified miles of
road shall be consistent with the asset management process of that
local road agency and shall be reported consistent with categories
established by the transportation asset management council.
(12) Beginning October 1, 2020, each local road agency
described in subsection (11)(b) shall begin submitting an asset
management plan to the transportation asset management council
according to the 3-year schedule described in subsection (10). The
asset management plan shall cover a period of at least 3 years, and
shall be consistent with a template provided by the transportation
asset management council. A local road agency that is required to
submit an asset management plan under this subsection that has not
submitted the asset management plan by October 1, 2024 is out of
compliance with this act and will not receive funding under this
act until it submits an asset management plan to the transportation
asset management council that satisfies the requirements of this
section.
(13) The transportation asset management council shall review
an asset management plan submitted under subsection (12) no later
than 6 months after receipt of the asset management plan. The
transportation asset management council shall compare the asset
management plan to the minimum requirements of this act and the
template created by the transportation asset management council,
and determine whether the asset management plan is in compliance
with those standards. If the asset management plan does not meet
those standards, the transportation asset management council shall
seek concurrence from the department that the asset management plan
does not meet the transportation asset management council's
standards. If the department concurs, the transportation asset
management council shall require the local road agency to revise
its asset management plan to conform to the standards within 6
months after notifying the local road agency that the asset
management plan does not meet the transportation asset management
council's standards.
(14) Beginning October 1, 2025, a local road agency described
in subsection (11)(b) that cannot demonstrate that it has made
progress toward achieving the condition goals described in its
asset management plan for its federal-aid eligible county primary
road system or city major street system, as applicable, shall not
shift funds distributed to it under this act from a county primary
road system to a county local road system or from a city major
street system to a city local street system, as applicable. A local
road agency may submit a revised asset management plan to the
transportation asset management council.
(15) An annual report shall be prepared by the staff assigned
to the transportation asset management council regarding the
results of activities conducted during the preceding year and the
expenditure of funds related to the processes and activities
identified by the Michigan infrastructure council. The report shall
also include a summary analysis of the asset management plans and
annual reports received from local road agencies, a determination
of how investments are achieving desired levels of service and
performance goals, an identification of any additional steps that
may be needed to achieve desired levels of service and performance
goals, and an overview of the activities identified for the
succeeding year. The transportation asset management council shall
submit this report to the Michigan infrastructure council, the
state transportation commission, the legislature, and the
transportation committees of the house and senate by May 2 of each
year.
(16) (8)
Funding necessary to support the
activities described
in this section shall be provided by an annual appropriation from
the Michigan transportation fund to the state transportation
commission. Beginning on the effective date of the amendatory act
that amended this subsection, the annual appropriation provided for
in this subsection shall be allocated to the Michigan
infrastructure council and shall be used to support the activities
described in this section.
(17) (9)
The department and each local road
agency shall keep
accurate and uniform records on all road and bridge work performed
and funds expended for the purposes of this section, according to
the procedures developed by the transportation asset management
council. Each local road agency and the department shall annually
report to the transportation asset management council the mileage
and condition of the road and bridge system under their
jurisdiction and the receipts and disbursements of road and street
funds in the manner prescribed by the transportation asset
management council, which shall be consistent with any current
accounting
procedures. An annual report shall be prepared by the
staff
assigned to the council regarding the results of activities
conducted
during the preceding year and the expenditure of funds
related
to the processes and activities identified by the council.
The
report shall also include an overview of the activities
identified
for the succeeding year. The council shall submit this
report
to the state transportation commission, the legislature, and
the
transportation committees of the house and senate by May 2 of
each
year.
(18) A local road agency may seek and use federal grants or
loans to achieve the goals and manage the asset inventory described
in its asset management plan.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 99th Legislature are
enacted into law:
(a) House Bill No. 5335.
(b) House Bill No. 5406.