HB-5335, As Passed House, March 22, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5335

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to create the Michigan infrastructure council; and to

 

prescribe the powers and duties of certain state and local agencies

 

and officials.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"Michigan infrastructure council act".

 

     Sec. 2. As used in this act:

 

     (a) "Asset" means infrastructure related to drinking water,

 

wastewater, stormwater, transportation, energy, or communications,

 

including, but not limited to, drinking water supply systems,

 

wastewater systems, stormwater systems, drains, roads, bridges,

 

broadband and communication systems, and electricity and natural

 

gas networks.


     (b) "Asset class" means a single type of asset including its

 

network and all associated appurtenances critical to its

 

performance.

 

     (c) "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 performance goals.

 

     (d) "Asset management plan" means a set of procedures to

 

manage assets through their life cycles, based on principles of

 

life cycle costing. An asset management plan may be used as a tool

 

to help an asset owner implement its asset management program.

 

     (e) "Asset owner" means a person that owns or operates an

 

asset.

 

     (f) "Department" means the department of treasury.

 

     (g) "Performance goals" means standards of system performance

 

that reflect asset management principles for asset preservation and

 

sustainability, operations, capacity consistent with local needs,

 

and identified levels of service.

 

     (h) "Person" means an individual, partnership, corporation,

 

association, governmental entity, or other legal entity.

 

     (i) "Region" means the geographic jurisdiction of any of the

 

following:

 

     (i) A regional planning commission created pursuant to 1945 PA

 

281, MCL 125.11 to 125.25.

 

     (ii) A regional economic development commission created

 

pursuant to 1966 PA 46, MCL 125.1231 to 125.1237.

 

     (iii) A metropolitan area council formed pursuant to the


metropolitan councils act, 1989 PA 292, MCL 124.651 to 124.729.

 

     (iv) A metropolitan planning organization established pursuant

 

to federal law.

 

     (v) An agency directed and funded by section 822f of article

 

VIII of 2016 PA 268, to engage in joint decision-making practices

 

related, but not limited to, community development, economic

 

development, talent, and infrastructure opportunities.

 

     (j) "Transportation asset management council" means the

 

transportation asset management council created in section 9a of

 

1951 PA 51, MCL 247.659a.

 

     (k) "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.

 

     Sec. 3. (1) The Michigan infrastructure council is created

 

within the department.

 

     (2) The Michigan infrastructure council consists of the

 

following:

 

     (a) Nine voting members appointed pursuant to subsection (3)

 

who are representative of 1 or more of the following:

 

     (i) Asset management experts from the public and private

 

sectors with knowledge of and expertise in the areas of planning,

 

design, construction, management, operations and maintenance for

 

drinking water, wastewater, stormwater, transportation, energy, and

 

communications.

 

     (ii) Financial and procurement experts from the public or

 

private sector.

 

     (iii) Experts in regional asset management planning across


jurisdictions and infrastructure sectors.

 

     (b) The following nonvoting members:

 

     (i) The chairperson of the water asset management council or

 

his or her designee.

 

     (ii) The chairperson of the transportation asset management

 

council or his or her designee.

 

     (iii) The director of the department of agriculture and rural

 

development or his or her designee.

 

     (iv) The director of the department of environmental quality

 

or his or her designee.

 

     (v) The director of the department of natural resources or his

 

or her designee.

 

     (vi) The director of the department of technology, management,

 

and budget or his or her designee.

 

     (vii) The director of the state transportation department or

 

his or her designee.

 

     (viii) The state treasurer or his or her designee.

 

     (ix) The chairperson of the Michigan public service commission

 

or his or her designee.

 

     (3) Voting members of the Michigan infrastructure council

 

under subsection (2)(a) shall be appointed as follows:

 

     (a) Five by the governor.

 

     (b) One by the senate majority leader.

 

     (c) One by the speaker of the house of representatives.

 

     (d) One by the senate minority leader.

 

     (e) One by the house minority leader.

 

     (4) The voting members first appointed to the Michigan


infrastructure council must be appointed within 60 days after the

 

effective date of this act.

 

     (5) The voting members of the Michigan infrastructure council

 

serve for terms of 3 years or until a successor is appointed,

 

whichever is later, except as follows:

 

     (a) Of the members first appointed under subsection (3)(a), 1

 

shall serve for 2 years, 1 shall serve for 1 year, and 3 shall

 

serve for 3 years.

 

     (b) Of the members first appointed under subsection (3)(b),

 

(c), (d), and (e), 2 shall serve for 2 years and 2 shall serve for

 

1 year.

 

     (6) A vacancy on the Michigan infrastructure council shall be

 

filled for the unexpired term in the same manner as the original

 

appointment.

 

     (7) A member of the Michigan infrastructure 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 office for whom the appointment was made.

 

     (8) The governor shall call the first meeting of the Michigan

 

infrastructure council within 90 days after the effective date of

 

this act. At the first meeting, the Michigan infrastructure council

 

shall elect from among its members a chairperson and other officers

 

as it considers appropriate. After the first meeting, the Michigan

 

infrastructure council shall meet at least quarterly, or more

 

frequently at the call of the chairperson or if requested by 3 or

 

more members.

 

     (9) A majority of the voting members of the Michigan


infrastructure council and a majority of the nonvoting members of

 

the Michigan infrastructure council constitute a quorum for the

 

transaction of business at a meeting of the Michigan infrastructure

 

council. An affirmative vote of a majority of the voting members of

 

the Michigan infrastructure council is required for official action

 

of the Michigan infrastructure council.

 

     (10) The Michigan infrastructure council shall perform its

 

business at a public meeting of the Michigan infrastructure council

 

held in compliance with the open meetings act, 1976 PA 267, MCL

 

15.261 to 15.275.

 

     (11) A writing created by the Michigan infrastructure council

 

in the performance of an official function is subject to the

 

freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

 

     (12) Members of the Michigan infrastructure council serve

 

without compensation. However, members of the Michigan

 

infrastructure council may be reimbursed for their actual and

 

necessary expenses incurred in the performance of their official

 

duties as members of the Michigan infrastructure council.

 

     (13) The departments of agriculture and rural development;

 

environmental quality; natural resources; technology, management,

 

and budget; transportation; and treasury shall provide qualified

 

administrative and technical staff to the Michigan infrastructure

 

council.

 

     (14) The department of technology, management, and budget

 

shall serve as the central data storage agency for the statewide

 

database provided for in this act.

 

     Sec. 4. (1) The Michigan infrastructure council shall do all


of the following:

 

     (a) Develop a multiyear program, work plan, budget, and

 

funding recommendation for asset management; update these every

 

year; and provide these to the governor and the legislature by

 

September 30 every year.

 

     (b) Ensure that the work plan in subdivision (a) includes an

 

emphasis on coordination and integration across asset classes and

 

regions.

 

     (c) Prepare an annual report on the current statewide asset

 

management assessment that tracks progress on established

 

performance goals.

 

     (d) Undertake research and advise on matters relating to asset

 

management, including all of the following:

 

     (i) Funding and financing models.

 

     (ii) Best practices.

 

     (iii) Information technology advancements.

 

     (iv) Emerging technology to advance smart systems.

 

     (v) Right sizing and cost-efficiencies.

 

     (vi) Impediments to delivery.

 

     (vii) Opportunities for greater coordination and collaboration

 

across asset classes and asset owners.

 

     (viii) Align and link state incentives to asset performance

 

improvement goals, including cost control, asset management,

 

operational efficiency, and cost-effective regional solutions.

 

     (e) Within 180 days after its first meeting, evaluate the

 

regional infrastructure asset management pilot program created

 

under Executive Directive 2017-1, and the findings of the 21st


Century Infrastructure Commission created in Executive Order No.

 

2016-5, and develop and publish a 3-year strategy for establishing

 

a statewide integrated asset management system. The initial

 

multiyear program, work plan, budget, and funding recommendation

 

under subdivision (a) must include development of the strategy for

 

establishing a statewide integrated asset management system. The

 

strategy must also include, at a minimum, all of the following:

 

     (i) A determination of appropriate assets within the asset

 

classes.

 

     (ii) Consistent data standards and definitions for each asset

 

class.

 

     (iii) Identify and designate a process to plan, analyze, and

 

coordinate asset management across assets and asset owners at the

 

regional level. This process may be implemented through regional

 

planning agencies, the regional prosperity initiative regions, or

 

another approach, which may vary among regions, that ensures all

 

areas of the state are included and efforts are consistent with

 

state and federal requirements. Regions shall be responsible for

 

maintaining and managing the statewide database at a regional

 

level.

 

     (iv) Procedures for data storage, collecting, updating, and

 

reporting.

 

     (v) Recommendations related to the appropriate level of

 

financial support for local asset data collection, local

 

development of asset management plans, regional review and

 

collaboration, and participation in an integrated statewide asset

 

management system.


     (vi) A process to coordinate the planning efforts of the

 

transportation asset management council, the water asset management

 

council, the Michigan public service commission, and the Michigan

 

economic development corporation, with other state-required asset

 

management planning requirements. In coordinating planning efforts

 

under this subparagraph, the Michigan infrastructure council shall

 

endeavor to provide efficiencies to the planning process and to

 

reduce any unnecessary duplication of effort.

 

     (vii) Coordination with the transportation asset management

 

council and the water asset management council to ensure that

 

training and education programs that address all of the following

 

are coordinated across assets:

 

     (A) Asset management principles and plan development.

 

     (B) The use of the statewide database.

 

     (C) Ongoing user support.

 

     (D) State department asset management requirements.

 

     (viii) Develop statewide performance goals for appropriate

 

assets within each asset class and identify regional and statewide

 

progress toward meeting performance goals.

 

     (ix) Protocols that ensure data security and accuracy at the

 

local, regional, and state levels.

 

     (x) Development of consistent and coordinated state

 

department, transportation asset management council, and water

 

asset management council asset management plan components and

 

requirements including, but not limited to:

 

     (A) Asset inventory, condition assessment, and uniform data.

 

     (B) Performance goals.


     (C) Revenue structure, investment strategy, and capital

 

improvement plan.

 

     (D) Asset criticality and risk analysis.

 

     (E) Public engagement and transparency.

 

     (F) Self-assessment of asset management maturity.

 

     (G) Reports at an asset owner, regional, and statewide level.

 

Reporting levels should take into account the size and complexity

 

of the network or system. Priority should be placed on the largest

 

systems.

 

     (H) A resolution by the appropriate governing body approving

 

the plan.

 

     (I) Certification that asset management is being coordinated

 

to the asset owners' best ability across asset classes and

 

regionally.

 

     (f) Beginning 3 years after the effective date of this act,

 

start the second phase of the statewide system for asset management

 

implementation and include, at a minimum, all of the following:

 

     (i) Predictive analytics to forecast asset condition.

 

     (ii) A public dashboard of state, regional, and local system

 

performance across asset classes, including the appropriate and

 

secure level of geospatial data and aggregated reporting.

 

     (iii) Develop and publish a 30-year integrated infrastructure

 

strategy that is updated every 5 years and includes all of the

 

following:

 

     (A) Current statewide condition assessment and infrastructure

 

priorities across asset classes, tracked progress on established

 

performance goals, and net changes in asset value.


     (B) Investment needs to reach targeted overall system ratings

 

and performance goals, with a goal of leveling annual investments

 

to long-term predictable amounts.

 

     (C) Network intelligence in asset management planning and

 

monitoring. Retrofit technologies should be considered, pursued,

 

and incorporated as they become available for upgrades and

 

maintenance activities to existing and future assets.

 

     (2) The multiyear programs, work plans, budgets, and funding

 

recommendations required in subsection (1)(a), the annual reports

 

required by subsection (1)(c), the 3-year strategy for establishing

 

a statewide integrated asset management system required by

 

subsection (1)(e), and the second phase of the statewide system for

 

asset management implementation required in subsection (1)(f) shall

 

comply with both of the following:

 

     (a) Not propose, recommend, or fund any government-owned

 

broadband or telecommunications network to provide service to

 

residential or commercial premises, except that this prohibition

 

does not apply to state expenditures for a transportation purpose,

 

connected vehicle communication technologies, or other

 

transportation-related activities.

 

     (b) To the extent government funding is proposed or

 

recommended to subsidize non-government-owned broadband networks to

 

expand service to residential or commercial premises, require that

 

the proposals and recommendations must be limited to areas unserved

 

by broadband, must be technology neutral, and include a competitive

 

bid process that results in the award of the subsidy based on

 

objective and efficient procedures.


     Sec. 5. (1) This act does not authorize the Michigan

 

infrastructure council to place any obligations or requirements on

 

providers of telecommunications services, broadband services, or

 

wireless services.

 

     (2) Any network or financial information provided to the

 

Michigan infrastructure council by a provider of telecommunications

 

services, broadband services, or wireless services is exempt from

 

disclosure under section 13(1)(d) of the freedom of information

 

act, 1976 PA 442, MCL 15.243, provided that it is marked as

 

confidential or commercial information. The Michigan infrastructure

 

council shall preserve the confidentiality of this information.

 

     Sec. 6. Funding necessary to support the activities described

 

in this act shall be provided through funds as provided by law.

 

     Enacting section 1. This act does not take effect unless all

 

of the following bills of the 99th Legislature are enacted into

 

law:

 

     (a) House Bill No. 5406.

 

     (b) House Bill No. 5408.