HOUSE BILL No. 6530


     December 3, 2002, Introduced by Reps. Gilbert and Jamnick 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 clas-
   sification; 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 trans-
   portation 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 pur-
   poses; to set up and establish the Michigan truck safety commis-
   sion; to establish certain standards for road contracts for cer-
   tain businesses; to provide for the continuing review of trans-
   portation needs within the state; to authorize the state trans-
   portation 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 appropria-
   tions and tax levies by counties and townships for county roads;
   to authorize contributions by townships for county roads; to pro-
   vide for the establishment and administration of the state trunk
   line fund, critical bridge fund, comprehensive transportation
   fund, and certain other funds; to provide for the deposits in the
   state trunk line fund, critical bridge fund, comprehensive


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   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 submis-
   sion 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 offi-
   cials; to provide for the making of loans for transportation pur-
   poses 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 20a (MCL 247.670a).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 20a.  A board of county road commissioners in a county

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        having a population of not less than 500,000 and the township

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        board of a township having a population of not less than 40,000,

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        as determined by the most recent statewide federal census, and

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        which in the prior year and the contract year will have levied a

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        property tax of not less than 1 mill on each dollar of assessed

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        valuation of the township for the improvement or maintenance of

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        county roads within the township, may exercise the provisions of

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        this section only by entering into a written contract of not more

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        than 1 year providing for the maintenance by the township of all

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        or any part of the county local road system within that township,

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        subject to but not limited to the following conditions:

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             (a) The contract shall specify the total amount of money

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        that shall be annually expended by the contracting township for

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        the maintenance of the local road system or part thereof.  The

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        contracting road commission may pay not more than 75% of the

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        amount specified in the contract to the contracting township



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        annually.  The contracting road commission shall not pay more

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        than 66% of an amount equal to the average annual amount of funds

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        expended by the county road commission on the local road system

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        located within the contracting township for construction and

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        maintenance purposes over the previous 5-year period from local

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        road funds received by the county under this act.  Any funds

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        expended by the contracting road commission on the local road

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        system located within the contracting township in excess of 66%

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        shall be matched by the contracting township.  The amount paid

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        the contracting township shall not directly or indirectly include

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         moneys  MONEY transferred from the primary fund allocation to

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        the county as set forth in section 12(8).

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             (b) The contracting township shall keep separate accounts

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        and accurate and uniform records on all road maintenance work and

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        funds, and shall file with the state  highway  TRANSPORTATION

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        commission and the contracting county road commission on or

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        before April 1 of each year, on forms to be provided by the state

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         highway  TRANSPORTATION commission, a report showing the dispo-

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        sition of funds received and expended for road purposes.  The

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        failure of a contracting township to apply  moneys  MONEY

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        returned  pursuant to  UNDER this act to the purposes  herein

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        prescribed  AUTHORIZED UNDER THIS ACT shall result in the forfei-

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        ture by the contracting county of  any and  all funds to which it

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        may have been entitled under this act.  and all funds so

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        forfeited  ALL FORFEITED FUNDS shall  thereafter  be
    apportioned

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        among the other county road commissions in the same manner and





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        proportion as  hereinbefore  provided for the distribution of the

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         motor vehicle highway  MICHIGAN TRANSPORTATION fund.

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             (c) The contract shall require the contracting township to

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        provide insurance covering the contracting road commission's

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        liability for failure to maintain the local roads specified in

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        the contract.

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             (d) The contracting road commission shall determine and

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        specify the equipment and personnel necessary to provide the

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        maintenance as set forth in the contract, and the contract shall

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        not take effect until the contracting township has acquired the

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        necessary equipment and personnel so specified.  COUNTY ROAD COM-

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        MISSIONS SHALL NOT CHARGE AN ADMINISTRATIVE FEE HIGHER THAN

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        $1,000.00 ON ANY CONTRACT ENTERED INTO PURSUANT TO THIS SECTION.

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             (e) As used in this section, the term "maintenance"  shall

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        be construed to include  HAS the same meaning as set forth in

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        section 1b.  If the contracting parties intend to give THE TERM a

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        different meaning than as set forth in section 1b, the contract

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        shall so specify.





















   06561'02          Final page.                            MRM