HB-4074,As Passed House,Feb 20, 2003
SUBSTITUTE FOR
HOUSE BILL NO. 4074
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, 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 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 10c, 10e, 10h, 10l, and 10n (MCL 247.660c,
247.660e, 247.660h, 247.660l, and 247.660n), sections 10c and 10h
as amended by 2002 PA 498, section 10e as amended by 1998 PA 87,
section 10l as amended by 1987 PA 234, and section 10n as amended
by 2002 PA 329.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 10c. As used in this act:
2 (a) "Urban or rural area" means a contiguous developed area,
3 including the immediate surrounding area, where transportation
4 services should reasonably be provided presently or in the
5 future; the area within the jurisdiction of an eligible
6 authority; or for the purpose of receiving funds for public
7 transportation, a contiguous developed area having a population
8 of less than 50,000 population that has an urban public
9 transportation program approved by the state transportation
10 department and for which the state transportation commission
11 determines that public transportation services should reasonably
12 be provided presently or in the future.
1 (b) "Eligible authority" means an authority organized
2 pursuant to under the metropolitan transportation
authorities
3 act of 1967, 1967 PA 204, MCL 124.401 to 124.426, or an authority
4 organized or continued under the Detroit area regional
5 transportation authority act.
6 (c) "Eligible governmental agency" means a county, city, or
7 village or an authority
created pursuant to under 1963 PA 55,
8 MCL 124.351 to 124.359; the urban cooperation act of 1967, 1967
9 (Ex Sess) PA 7, MCL 124.501 to 124.512; 1967 (Ex Sess) PA 8,
10 MCL 124.1 to 124.13; 1951 PA 35, MCL 124.1 to 124.13; the public
11 transportation authority act, 1986 PA 196, MCL 124.451 to
12 124.479; or the revenue bond act of 1933, 1933 PA 94, MCL 141.101
13 to 141.140.
14 (d) "Transit vehicle" means a bus, rapid transit vehicle,
15 railroad car, water vehicle, taxicab, or other type of public
16 transportation vehicle or individual unit, whether operated
17 singly or in a group which provides public transportation.
18 (e) "Transit vehicle mile" means a transit vehicle operated
19 for 1 mile in public transportation service including demand
20 actuated and line-haul vehicle miles.
21 (f) "Demand actuated vehicle" means a bus or smaller transit
22 vehicle operated for providing group rides to members of the
23 general public paying fares individually, and on demand rather
24 than in regularly scheduled route service.
25 (g) "Demand actuated vehicle mile" means a demand actuated
26 vehicle operated for 1 mile in service to the general public.
27 (h) "Public transportation", "comprehensive transportation",
1 "public transportation service", "comprehensive transportation
2 service", "public transportation purpose", or "comprehensive
3 transportation purpose" means the movement of people and goods by
4 publicly or privately owned water vehicle, bus, railroad car,
5 aircraft, rapid transit vehicle, taxicab, or other conveyance
6 which provides general or special service to the public, but not
7 including charter or sightseeing service or transportation which
8 is exclusively for school purposes. Public transportation,
9 public transportation services, or public transportation
10 purposes; and comprehensive transportation, comprehensive
11 transportation services, or comprehensive transportation purposes
12 as defined in this subdivision are declared by law to be
13 transportation purposes within the meaning of section 9 of
14 article IX of the state constitution of 1963.
15 (i) "State transportation commission" means the state
16 transportation commission established in section 28 of article V
17 of the state constitution of 1963.
18 (j) "Governmental unit" means the state transportation
19 department, the state transportation commission, a county road
20 commission, a city, or a village.
21 (k) "Department" or "department of transportation" means the
22 state transportation department, which may be referred to
23 administratively as the department of transportation.
24 (l) "Preservation" means an activity undertaken to preserve
25 the integrity of the existing roadway system. Preservation does
26 not include new construction of highways, roads, streets, or
27 bridges, a project that increases the capacity of a highway
1 facility to accommodate that part of traffic having neither an
2 origin nor destination within the local area, widening of a lane
3 width or more, or adding turn lanes of more than 1/2 mile in
4 length. Preservation includes, but is not limited to, 1 or more
5 of the following:
6 (i) Maintenance.
7 (ii) Capital preventive treatments.
8 (iii) Safety projects.
9 (iv) Reconstruction.
10 (v) Resurfacing.
11 (vi) Restoration.
12 (vii) Rehabilitation.
13 (viii) Widening of less than the width of 1 lane.
14 (ix) Adding auxiliary weaving, climbing, or speed change
15 lanes.
16 (x) Modernizing intersections.
17 (xi) Adding auxiliary turning lanes of 1/2 mile or less.
18 (m) "Maintenance" means routine maintenance or preventive
19 maintenance, or both. Maintenance does not include capital
20 preventive treatments, resurfacing, reconstruction, restoration,
21 rehabilitation, safety projects, widening of less than 1 lane
22 width, adding auxiliary turn lanes of 1/2 mile or less, adding
23 auxiliary weaving, climbing, or speed-change lanes, modernizing
24 intersections, or the upgrading of aggregate surface roads to
25 hard surface roads. Maintenance of state trunk line highways
26 does not include streetlighting except for freeway lighting for
27 traffic safety purposes.
1 (n) "Routine maintenance" means actions performed on a
2 regular or controllable basis or in response to uncontrollable
3 events upon a highway, road, street, or bridge. Routine
4 maintenance includes, but is not limited to, 1 or more of the
5 following:
6 (i) Snow and ice removal.
7 (ii) Pothole patching.
8 (iii) Unplugging drain facilities.
9 (iv) Replacing damaged sign and pavement markings.
10 (v) Replacing damaged guardrails.
11 (vi) Repairing storm damage.
12 (vii) Repair, replacement, or operation of traffic signal
13 systems.
14 (viii) Emergency environmental cleanup.
15 (ix) Emergency repairs.
16 (x) Emergency management of road closures that result from
17 uncontrollable events.
18 (xi) Cleaning streets and associated drainage.
19 (xii) Installing traffic signs and signal devices.
20 (xiii) Mowing roadside.
21 (xiv) Control of roadside brush and vegetation.
22 (xv) Cleaning roadside.
23 (xvi) Repairing lighting.
24 (xvii) Grading.
25 (o) "Preventive maintenance" means a planned strategy of
26 cost-effective treatments to an existing roadway system and its
27 appurtenances that preserve assets by retarding deterioration and
1 maintaining functional condition without significantly increasing
2 structural capacity. Preventive maintenance includes, but is not
3 limited to, 1 or more of the following:
4 (i) Pavement crack sealing.
5 (ii) Micro surfacing.
6 (iii) Chip sealing.
7 (iv) Concrete joint resealing.
8 (v) Concrete joint repair.
9 (vi) Filling shallow pavement cracks.
10 (vii) Patching concrete.
11 (viii) Shoulder resurfacing.
12 (ix) Concrete diamond grinding.
13 (x) Dowel bar retrofit.
14 (xi) Bituminous overlays of 1-1/2 inches or less in
15 thickness.
16 (xii) Restoration of drainage.
17 (xiii) Bridge crack sealing.
18 (xiv) Bridge joint repair.
19 (xv) Bridge seismic retrofit.
20 (xvi) Bridge scour countermeasures.
21 (xvii) Bridge painting.
22 (xviii) Pollution prevention.
23 (xix) New treatments as they may be developed.
24 (p) "County road commission" means the board of county road
25 commissioners elected or appointed pursuant to section 6 of
26 chapter IV of 1909 PA 283, MCL 224.6, or, in the case of a
27 charter county with a population of 2,000,000 or more with an
1 elected county executive that does not have a board of county
2 road commissioners, the county executive for ministerial
3 functions and the county commission provided for in section
4 14(1)(d) of 1966 PA 293, MCL 45.514, for legislative functions.
5 (q) "Capital preventive treatments" means any preventive
6 maintenance category project on state trunk line highways that
7 qualifies under the department's capital preventive maintenance
8 program.
9 Sec. 10e. (1) The comprehensive transportation fund is
10 appropriated for each fiscal year in the following order of
11 priority.
12 (2) The first priority is to pay, but only from money
13 restricted as to use by section 9 of article IX of the state
14 constitution of 1963, the principal and interest on bonds or
15 notes issued under section 18b for comprehensive transportation
16 purposes as defined by law. A sufficient portion of the
17 comprehensive transportation fund is irrevocably appropriated to
18 pay, when due, the principal and interest on those bonds and
19 notes.
20 (3) After making or setting aside payments required by
21 subsection (2), the second priority of the comprehensive
22 transportation fund is the payment of the department's cost in
23 administering the comprehensive transportation fund. The amount
24 to be expended pursuant to this subsection shall not exceed the
25 costs appropriated for the administration of the fund in the
26 fiscal year ending September 30, 1987, as adjusted annually on
27 October 1, by the change for the preceding 12 months in the
1 Detroit consumer price index for urban wage earners and shall be
2 appropriated annually by the legislature.
3 (4) After making or setting aside payments required by
4 subsections (2) and (3), the balance of the comprehensive
5 transportation fund shall be expended each fiscal year as
6 appropriated annually by the legislature pursuant to the state
7 transportation program approved by the commission as follows:
8 (a) The third priority shall be the payment of operating
9 grants to eligible authorities and eligible governmental agencies
10 according to the following formulations and subject to the
11 following requirements:
12 (i) For the fiscal year ending September 30, 1998, and for
13 each fiscal year thereafter, each eligible authority and eligible
14 governmental agency which provides public transportation services
15 in urbanized areas under Public Law 103-272, 49 U.S.C. 5307, with
16 a Michigan population greater than 100,000 shall receive a grant
17 of up to 50% of their eligible operating expenses as defined by
18 the state transportation department.
19 (ii) For the fiscal year ending September 30, 1998, and each
20 fiscal year thereafter, each eligible authority and eligible
21 governmental agency which provides public transportation services
22 in urbanized areas with a Michigan population less than or equal
23 to 100,000 and nonurbanized areas under Public Law 103-272, 49
24 U.S.C. 5311, shall receive a grant of up to 60% of their eligible
25 operating expenses as defined by the state transportation
26 department. For purposes of receiving a grant under this
27 subparagraph in nonurbanized areas, eligible costs of services
1 provided by water vehicle shall be reimbursed at not less than
2 50% of the portion of the costs not eligible for reimbursement by
3 the federal government.
4 (iii) Funds shall not be distributed to an eligible authority
5 or eligible governmental agency under this act unless the
6 eligible authority or eligible governmental agency provides or
7 agrees to provide preferential fares for public transportation
8 services to persons 65 years of age or over or persons with
9 disabilities riding in off peak periods of service. As used in
10 this section, "person with disabilities" means an individual with
11 a disability as that term is defined in 61 F.R.P. 56424 (November
12 1, 1996) and 49 C.F.R. part 27. The preferential fares shall not
13 be higher than 50% of the regular 1-way single fare.
14 (iv) Eligible authorities and eligible governmental agencies
15 shall not engage in charter service using vehicles, facilities,
16 or equipment funded under this act except on an incidental basis
17 as defined by 49 C.F.R. part 604.
18 (v) Notwithstanding any other provision of this subsection,
19 for the fiscal year ending September 30, 1998, each eligible
20 authority and eligible governmental agency shall receive a
21 distribution from the comprehensive transportation fund not less
22 than the distribution received for eligible operating expenses
23 for the fiscal year ending September 30, 1997. Beginning with
24 the fiscal year ending September 30, 1998 and each fiscal year
25 thereafter, each eligible authority and eligible governmental
26 agency shall receive a distribution from the comprehensive
27 transportation fund for eligible operating expenses not less than
1 the distribution received for the fiscal year ending
2 September 30, 1997. As it relates to this subsection the ratio
3 between comprehensive transportation funds and local funds in the
4 fiscal year ending September 30, 1989 shall be maintained for all
5 fiscal years by the eligible authority and eligible governmental
6 agency. Reductions in this ratio shall require a proportionate
7 reduction in the comprehensive transportation funds provided for
8 any fiscal year. An eligible authority created under the Detroit
9 area regional transportation authority act shall not receive a
10 grant or distribution under this section that has a greater
11 percentage of total grants or distributions than the grants or
12 distributions received by an entity created under the
13 metropolitan transportation authorities act of 1967, 1967 PA 204,
14 MCL 124.401 to 124.426, during the fiscal year ending September
15 30, 2004.
16 (vi) Each eligible authority and eligible governmental agency
17 receiving comprehensive transportation funds shall prepare and
18 submit to the department a quarterly report of the progress made
19 in carrying out its local transportation program within 40 days
20 after the end of each fiscal year quarter. The progress report
21 shall be made on forms authorized by the United States department
22 of transportation under the provisions of the surface
23 transportation and uniform relocation assistance act of 1987,
24 Public Law 100-17, 101 Stat. 132.
25 (vii) The department shall periodically adjust or
26 redistribute comprehensive transportation funds previously
27 distributed under this subdivision.
1 (b) For the fiscal year ending September 30, 1997, and each
2 fiscal year thereafter, not less than 10% shall be distributed by
3 the department for intercity passenger and intercity freight
4 transportation purposes.
5 (c) For the fiscal year ending September 30, 1997, and each
6 fiscal year thereafter, funds remaining in the fund after payment
7 of the amounts required by subdivisions (a) and (b) shall be
8 distributed by the department for public transportation
9 purposes. For the fiscal year ending September 30, 1998, and
10 each fiscal year thereafter, funds shall be made available to
11 match all projects for eligible authorities and eligible
12 governmental agencies that are approved for federal funding as
13 provided by federal law and for which an approved transportation
14 improvement program (TIP) and state transportation improvement
15 plan (STIP) exist. Funds distributed under this subdivision
16 shall be expended pursuant to specific line item appropriation
17 for, but are not limited to, the following public transportation
18 purposes:
19 (i) The specialized services assistance program. The
20 specialized services assistance program shall be funded with not
21 less than $3,600,100.00 from funds distributed under this
22 subdivision. Funds shall be distributed according to guidelines
23 developed by the department based upon the following
24 considerations:
25 (A) Proposals for coordinated specialized services assistance
26 funding shall be developed jointly between existing eligible
27 authorities or eligible governmental agencies that provide public
1 transportation services and the area agencies on aging or any
2 other organization representing specialized services interests,
3 as defined in this subdivision. Plans shall be reviewed and
4 approved by the bureau of urban and public transportation of the
5 department. Upon approval, the department shall release the
6 funds to the eligible authority or eligible governmental agency
7 which shall then allocate the funds to the area agency on aging
8 or any other organization representing specialized services
9 interests, as defined in this subdivision for the purchase of
10 services as approved in the plan by the department.
11 (B) If an eligible authority or eligible governmental agency
12 does not exist to provide public transportation service in a
13 county, coordinated proposals for specialized services assistance
14 funding may be submitted by the area agency on aging or any other
15 organization representing specialized services interests, as
16 defined in this subdivision. The proposals shall be reviewed and
17 approved by the bureau of urban and public transportation of the
18 department. Upon approval, the department shall release the
19 funds to the area agency on aging or any other organization
20 representing specialized services interests, as defined in this
21 subdivision for the purchase of services as approved in the plan
22 by the department.
23 (C) For the purposes of this program, "specialized services"
24 means public transportation primarily designed for persons with
25 disabilities or persons who are 65 years of age or older.
26 (ii) Local bus capital. For the fiscal year ending September
27 30, 1998 and each fiscal year thereafter, not less than
1 $8,000,000.00 will be distributed for either matching federal
2 funds for local bus capital or 100% capital projects for eligible
3 authorities and eligible governmental agencies that are not
4 eligible to receive federal capital formula funds under section
5 5307 of the federal intermodal surface transportation efficiency
6 act, Public Law 102-240, or any successor act.
7 (iii) Local bus new services.
8 (iv) Not less than $2,000,000.00 in each fiscal year for the
9 credit program established under section 10l.
10 (v) Public transportation development.
11 (vi) Other public transportation programs approved by the
12 commission.
13 (d) The unappropriated and unencumbered balance of the
14 comprehensive transportation fund lapses at the end of each
15 fiscal year and reverts to the comprehensive transportation fund
16 for appropriation in the following fiscal year.
17 (5) Eligible authorities and eligible governmental agencies
18 shall receive capital grants each fiscal year by the annual
19 process described in this section. Amounts received by an
20 eligible authority or eligible governmental agency pursuant to
21 this subsection shall be expended by that authority or agency
22 solely for capital projects which have been approved by the state
23 transportation commission. Any funds approved by distribution to
24 an eligible authority or eligible governmental agency pursuant to
25 this section which have not been encumbered by that agency or
26 authority for an approved capital project by the end of the
27 following fiscal year in which the funds were approved shall not
1 be expended by the authority or agency and be available for
2 distribution from the comprehensive transportation fund for the
3 purposes described in this section.
4 (6) The department, in carrying out the policy of the state
5 transportation commission, shall annually prepare and distribute
6 by December 1, instructions to eligible governmental agencies,
7 eligible authorities, and intercity carriers to enable the
8 preparation of a local transportation program. Eligible
9 governmental agencies, eligible authorities, and intercity
10 carriers shall give public notice of their intent to apply for
11 money in the comprehensive transportation fund to the residents
12 of the counties, townships, villages, and cities affected by the
13 local transportation program and shall make their application
14 available for a period of 30 days. All comments received by the
15 eligible governmental agency, eligible authority, or intercity
16 carrier shall be transmitted to the department.
17 (7) On or before March 1 of each year, each intercity
18 carrier, eligible authority, and eligible governmental agency
19 shall submit to the department its local transportation program
20 for the next succeeding fiscal year. The format for each local
21 transportation program shall be as prescribed by the federal
22 transportation improvement program insofar as practical and shall
23 include project descriptions, funding sources, and justification
24 for each line item, and summary budgets based on distributions
25 anticipated under subsection (4). The program shall contain at a
26 minimum the contemplated routes, hours of service, estimated
27 transit vehicle miles, costs of public transportation services,
1 and projected capital improvements or projects as exclusively
2 determined by the eligible authority or eligible governmental
3 agency. The costs of service and capital improvements or
4 projects shall be in sufficient detail to permit the state
5 transportation department to evaluate and approve the annual
6 public transportation program. Determination of individual
7 projects to be included in the local transportation programs
8 other than those provided in this subsection shall be made by the
9 governing body of the eligible authority or eligible governmental
10 agency.
11 (8) On or before March 1 of each year, the department shall
12 prepare and file for public inspection and review the department
13 transportation program. The department transportation program
14 shall be prepared on similar format to the local transportation
15 programs, and shall include a summary description of projects,
16 with funding sources and project justifications for each line
17 item for the fiscal year immediately succeeding the fiscal year
18 in which the program is submitted. In addition, the department
19 transportation program shall include summary, nondetailed budget
20 and project descriptions and justifications excluding projects
21 contained in a local transportation program.
22 (9) On or before April 1 of each year, the department shall
23 prepare and file with the commission the proposed state
24 transportation program for the next succeeding fiscal year. The
25 proposed state transportation program shall contain the local
26 transportation programs of each intercity carrier, eligible
27 authority and eligible governmental agency, the department
1 transportation program, and the programs for the expenditure of
2 the state trunk line fund as they may have been supplemented,
3 amended, or modified since their original filing. The state
4 transportation program shall include the estimated amount of
5 money in the funds described in this subsection by revenue
6 source, project justifications, project descriptions funding
7 sources, and budget summaries.
8 (10) On or before May 1 of each year, the state
9 transportation commission shall act on the state transportation
10 program for the fiscal year commencing on the following
11 October 1. In considering approval of the proposed projects of
12 each intercity carrier, eligible authority, or eligible
13 governmental agency, other than projects which are to be funded
14 pursuant to subsection (5), the state transportation commission
15 shall consider whether the projects comply with state law, are
16 within funds allocated in this section, whether they may be
17 funded within the approved budgets, whether there are intercity
18 carriers, eligible authorities, and eligible governmental
19 agencies responsible to implement the projects, and the
20 recommendations of the department on individual projects. Upon
21 making those determinations, the state transportation commission
22 shall approve the projects which best meet the criteria of this
23 subsection.
24 (11) By October 1, the department and each intercity carrier,
25 eligible authority, or eligible governmental agency shall enter
26 into a contractual agreement or standardized grant memorandum of
27 agreement, which may cover 1 or more projects to be made from
1 this section in the applicable fiscal year to the intercity
2 carrier, eligible authority, or eligible governmental agency from
3 the comprehensive transportation fund.
4 (12) After a multiyear public transportation program is
5 approved by the state transportation commission, the state
6 transportation department may enter into a grant-in-aid
7 instrument with an eligible authority, intercity carrier, or
8 eligible governmental agency obligating the state to a minimum
9 level of funding for approved projects to be available over the
10 multiyear period of the program. This obligation shall be
11 binding upon the state transportation department as long as the
12 provisions and conditions of the state transportation commission
13 approved program are carried out as agreed.
14 (13) Contracts and grant memorandum agreements may be audited
15 by the state transportation commission's office of commission
16 audits using rules promulgated by the United States general
17 accounting office and the terms and conditions of the respective
18 contracts and agreements. Third party agreements are subject to
19 the review and approval of the department.
20 (14) Funds distributed by the department may pay 100% of the
21 portion of the cost not eligible for reimbursement by the federal
22 government for eligible capital projects authorized by the state
23 transportation commission using comprehensive transportation
24 funds or the proceeds of notes and bonds issued under section
25 18b. Priority for funding obligation shall be given to capital
26 projects for which federal funds have been authorized.
27 (15) All approved local bus new services initiated by
1 eligible authorities and eligible governmental agencies not in
2 their fourth year or beyond of funding on October 1, 1988, shall
3 be funded from subsection (4)(c)(iii). Local bus new services
4 shall be funded under subsection (4)(c)(iii) in the following
5 percentages of eligible operating expenses as determined by the
6 department:
7 (a) Startup 100%.
8 (b) First year 90%.
9 (c) Second year 80%.
10 (d) Third year 70%.
11 (e) Fourth year and each year thereafter, as determined by
12 and from funds provided under subsection (4)(a). The balance of
13 eligible operating expenses shall be met from local revenue
14 sources including farebox. The department shall pay up to 100%
15 of eligible capital expenses during the startup and first 3 years
16 of service, after the third year, the department shall
17 participate in eligible capital expenses in the same percentage
18 as for other eligible authorities and eligible governmental
19 agencies. For the purposes of this subsection, eligible
20 operating and capital expenses means those expenses determined by
21 the department as applicable to existing eligible authorities and
22 eligible governmental agencies. The department shall prioritize
23 annually all requests for comprehensive transportation funds to
24 institute new services under this subsection. First priority
25 shall be given to eligible authorities and eligible governmental
26 agencies who have not completed their first 3 years of service by
27 October 1, 1998. New services initiated by eligible authorities
1 and eligible governmental agencies under this subsection shall
2 meet all of the requirements of section 10.
3 (16) The department shall pay up to 80% of the portion of the
4 cost not eligible for reimbursement by the federal government for
5 intercity passenger operating assistance projects authorized by
6 the commission for the first 2 years of new services. For the
7 third year, eligible costs shall be reimbursed at up to 60% of
8 the portion of the cost not eligible for reimbursement by the
9 federal government. After the third year, eligible costs shall
10 be reimbursed at up to 50% of the portion of the cost not
11 eligible for reimbursement by the federal government. Eligible
12 costs of services provided as of September 30, 1981, shall be
13 reimbursed at up to 50% of the portion of the cost not eligible
14 for reimbursement by the federal government. However, the amount
15 of funds from the comprehensive transportation fund when added to
16 federal funds and local funds shall not exceed the total
17 operating assistance project cost.
18 (17) A vehicle purchased, leased, or rented after
19 November 15, 1976, by an eligible authority or eligible
20 governmental agency with funds made available under this act,
21 which funds were not already committed under a contract in
22 existence on November 15, 1976, shall not be used to provide
23 service on a fixed schedule and fixed route for which a passenger
24 fee is charged unless the vehicle is accessible to a person using
25 a wheelchair from a roadway level or curb level, and has
26 accommodations in which 1 or more wheelchairs can be secured.
27 (18) A vehicle shall not be purchased, leased, or rented by
1 an eligible authority or eligible governmental agency after
2 October 1, 1978, with funds made available under this act which
3 vehicle is used to provide demand actuated service unless the
4 eligible authority or eligible governmental agency has submitted
5 a plan to the state transportation department describing the
6 service to be provided by the demand actuated service to persons
7 65 years of age or older and persons with disabilities within the
8 applicable service area and that plan has been approved by the
9 department. The department shall approve the plan as submitted
10 or modified or shall reject the plan within 60 days after the
11 plan is submitted. A plan which describes the service to be
12 provided by the demand actuated service shall not be approved by
13 the department unless that plan provides the following:
14 (a) That demand actuated service will be provided to persons
15 65 years of age or older and persons with disabilities residing
16 in the entire service area subject to the plan.
17 (b) That as a minimum, demand actuated service will be
18 provided to persons 65 years of age or older and persons with
19 disabilities during the same hours as service is provided to all
20 other persons in the service area subject to the plan.
21 (c) That the average time period required for demand actuated
22 service to persons 65 years of age or older and persons with
23 disabilities from the initiation of a service request to arrival
24 at the destination is equal to the average time period required
25 for demand actuated service provided to all other persons in the
26 service area subject to the plan.
27 (d) That the eligible authority or eligible governmental
1 agency submitting the plan has established a local advisory
2 council with not less than 50% of its membership representing
3 persons 65 years of age or older and persons with disabilities
4 within the service area subject to the plan and that the local
5 advisory council has had an opportunity to review and comment
6 upon the plan before its submission to the department. Each
7 eligible authority or eligible governmental agency jointly with
8 the area agency on aging shall approve at least 1 or the
9 equivalent of 12% of the membership of the local advisory
10 council. Each advisory council comment shall be included in the
11 plan when submitted to the department.
12 (19) Notwithstanding subsection (18), a plan required by
13 subsection (18) which is not approved or rejected by the state
14 transportation department within 60 days after submission shall
15 be considered approved as submitted.
16 (20) Subsections (17), (18), and (19) shall not apply to
17 vehicles or facilities used to transport persons by rail, air, or
18 water or to vehicles of common carriers licensed by the state
19 transportation department.
20 (21) After January 1, 1979, the department shall submit an
21 annual report to the legislature detailing the service provided
22 in the prior year for persons 65 years of age or older and
23 persons with disabilities by fixed route service and demand
24 actuated service. This report shall include a record of
25 passenger usage and shall be submitted by April 1 of each year.
26 (22) Notwithstanding any other provision of this section, if
27 the unreserved balance of the comprehensive transportation fund
1 as of September 30, 1997 is greater than $50,000,000.00, then the
2 entire unreserved balance minus $50,000,000.00 shall be
3 appropriated for the fiscal year ending September 30, 1998 only
4 to local bus transit authorities for discretionary capital
5 expenditures. These funds shall be distributed to individual
6 authorities in the same proportion provided for in the provisions
7 of section 10e(4)(a)(i) except that the costs of services
8 provided by water vehicle shall not be eligible for
9 reimbursement.
10 Sec. 10h. (1) By May 1 of each year, the state
11 transportation commission shall report to each member of the
12 legislature, the governor, and the auditor general its
13 recommendations for a transportation program which the state
14 transportation commission acts on under section 10e(10). The
15 report shall specify the following:
16 (a) The estimated amount of money in the comprehensive
17 transportation fund to be distributed in the following fiscal
18 year and the amount of money in the comprehensive transportation
19 fund to be distributed to each eligible authority, each intercity
20 carrier, each eligible governmental agency, and the state
21 transportation department; the estimated amount of money in the
22 state trunk line fund to be distributed to the state
23 transportation department for the preservation, as defined in
24 section 10c, of state trunk line highways; and the estimated
25 amount of money in the state trunk line fund to be distributed to
26 the state transportation department for all other purposes in the
27 following fiscal year. The report shall further subdivide the
1 money to be distributed to each eligible authority, each
2 intercity carrier, each eligible governmental agency, the state
3 transportation department from the comprehensive transportation
4 fund, the state transportation department from the state trunk
5 line fund for the preservation of state trunk line highways, and
6 the state transportation department from the state trunk line
7 fund for all other purposes specifying how much of that money is
8 proposed to be expended for either capital acquisitions,
9 including demonstration projects, or for operating expenses,
10 including demonstration projects.
11 (b) An account of all expenditures of funds distributed from
12 the state trunk line fund and the comprehensive transportation
13 fund to the state transportation department, eligible
14 authorities, intercity carriers, and eligible governmental
15 agencies, and the progress made by the state transportation
16 department, eligible authorities, intercity carriers, and
17 eligible governmental agencies in carrying out the approved
18 transportation programs in the preceding fiscal year through the
19 use of those funds. The progress report shall be made based on
20 information supplied to the state transportation department on
21 forms authorized by the federal department of transportation.
22 For those eligible authorities, intercity carriers, and eligible
23 governmental agencies not receiving federal funds pursuant to the
24 urban mass transportation act of 1964, Public Law 88-365, the
25 progress report shall be made upon forms supplied by the state
26 transportation department. The progress report shall also
27 contain the whole amount of the expenses of the state
1 transportation department for the fiscal year.
2 (c) Each project certified to be eligible for a multiyear
3 funding commitment.
4 (d) The status of all multiyear funding commitments.
5 (e) An account of the state transportation department's
6 compliance in the preceding year with the requirements of section
7 11(2) and (3). The report shall also specify the justification
8 for a waiver of the requirement of section 11(3), if that
9 requirement was waived.
10 (2) The financial transactions and accounts related to
11 distributions made from the comprehensive transportation fund to
12 an eligible authority created
under the metropolitan
13 transportation
authorities act of 1967, 1967 PA 204, MCL 124.401
14 to 124.426, shall be audited pursuant to that act the
15 metropolitan transportation authorities act of 1967, 1967 PA 204,
16 MCL 124.401 to 124.426, or the Detroit area regional
17 transportation authority act, whichever applies. The cost of the
18 audit shall be paid by the eligible authority. The financial
19 transactions and accounts related to distributions made from the
20 fund to an eligible governmental agency, other than a county,
21 shall be audited in accordance with the uniform budgeting and
22 accounting act, 1968 PA 2, MCL 141.421 to 141.440a. The
23 financial transactions and accounts related to distributions made
24 from the fund to a county which is an eligible governmental
25 agency shall be audited in accordance with 1919 PA 71, MCL 21.41
26 to 21.55. The financial transactions and accounts relative to
27 distributions made to an intercity carrier shall be audited by an
1 independent certified public accountant in accordance with
2 instructions promulgated by the department of treasury. A copy
3 of the complete audit report and management letter shall be
4 submitted by the eligible authority, intercity carrier, or
5 eligible governmental agency to the state transportation
6 department. The department of treasury shall develop minimum
7 audit standards and requirements.
8 (3) There is hereby established a task force composed of the
9 Michigan public transit association, the Michigan motorbus
10 association, the Michigan rail users and supporters association,
11 the Michigan railroad association, a representative of a
12 state-owned or leased short line railroad, and the office of
13 auditor general or a certified public accountant appointed by the
14 auditor general, to assist the department in the development of
15 the progress report requirements outlined in subsection (1)(b).
16 Sec. 10l. (1) For each 12-month period beginning October 1,
17 1987, and each 12-month period thereafter, $2,000,000.00 shall be
18 returned from the distribution under section 10e(4)(a) by each
19 multicounty eligible authority created under the
metropolitan
20 transportation
authorities act of 1967, Act No. 204 of the
21 Public Acts of 1967,
being sections 124.401 to 124.425 of the
22 Michigan Compiled
Laws, organized under the Detroit
area
23 regional transportation authority act in terms of a credit to
24 those cities, villages, and townships within each
25 transportation
district of the authority, created
under section
26 16a of Act No. 204 of
the Public Acts of 1967, being section
27 124.416a of the Michigan
Compiled Laws, which receiving or
1 eligible to receive credits as of October 1, 2001 that apply to
2 the authority for the credit in accordance with procedures and
3 standards established by the authority, except as provided by
4 subsections (2) and (3). The return of money in terms of a
5 credit shall be based upon the population of each city, village,
6 or township within the authority.
7 (2) For each 12-month period described in subsection (1), a
8 city, village, or township described in subsection (1) may apply
9 to the authority to use its credit for public transportation
10 purposes within the authority's jurisdiction. However, the money
11 returned in terms of a credit to any city, village, or township
12 which that provides public transportation service
for that
13 city, village, or township shall be used exclusively toward
14 reducing the operating
deficit of that service. Moreover, any
15 Any service provided by the city, township, or village utilizing
16 the credit received pursuant
to under this section shall be
17 operated by the authority returning the money in terms of a
18 credit on a contractual basis with each city, village, or
19 township or with a combination of cities, villages, and
20 townships. If a city, township, or village has not applied to
21 the authority to utilize its credit pursuant to this subsection
22 by the last day of the 12-month period, that municipality's share
23 of the money credited pursuant to subsection (1) shall be used by
24 the authority for an expenditure within the county within which
25 the city, village, or township lies.
26 (3) A city, village,
or township which that has applied
27 for and received approval from the authority for use of its
1 credit pursuant to subsection (2) shall have 1 year after the end
2 of the period in which the application was made to actually
3 expend that credit. A credit not actually expended by the city,
4 village, or township by the last day of the year after the end of
5 the period in which the application was made shall be used by the
6 authority for an expenditure within the county within which the
7 city, village, or township lies.
8 (4) Notwithstanding any other section of this or any other
9 act, each authority authorized by this section to return money in
10 terms of a credit shall have the final decision as to what
11 constitutes a proper expenditure, a public transportation
12 service, or a public transportation purpose under subsections (2)
13 and (3).
14 (5) The expenditure of the amounts required to be expended
15 under subsections (2) and (3) shall not be conditioned on an
16 expenditure by a county in which the expenditure is required to
17 be expended.
18 (6) The An
authority shall retain the its ability to
19 coordinate services between contracting cities, villages, and
20 townships or groups of cities, villages, or townships.
21 (7) As used in this section, "operating deficit" means the
22 operating cost of a public transportation service less the
23 revenues generated by the service.
24 Sec. 10n. (1) Funds from the comprehensive transportation
25 fund may be distributed to a trustee, or to the Michigan
26 municipal bond authority as created under the shared credit
27 rating act, 1985 PA 227, MCL 141.1051 to 141.1076, that is
1 authorized to receive the funds under a borrowing resolution
2 adopted by an eligible authority. The issuance of the notes of
3 an eligible authority in anticipation of payment of proceeds from
4 the comprehensive transportation fund shall be authorized by a
5 borrowing resolution of the eligible authority under the
6 metropolitan transportation authorities act of 1967, 1967 PA 204,
7 MCL 124.401 to 124.426, or the Detroit area regional
8 transportation authority act. The issuance of the notes under
9 this section is not subject to the revised municipal finance act,
10 2001 PA 34, MCL 141.2101 to 141.2821, and shall be subject to the
11 prior approval of the state transportation commission. Failure
12 of the commission to take action within 35 days after receipt of
13 notification from the eligible authority of intent to issue the
14 notes, constitutes approval by the state transportation
15 commission. The eligible authority may only issue the notes in
16 anticipation of funds to be received during its current fiscal
17 year at any time before the eligible authority's receipt of the
18 funds from the comprehensive transportation fund. The principal
19 amount of notes for which the funds to be received from the
20 comprehensive transportation fund are pledged shall not exceed
21 85% of the amount remaining to be received by the eligible
22 authority from the comprehensive transportation fund in the
23 current fiscal year. The pledge of 100% of the funds the
24 eligible authority expects to receive from the comprehensive
25 transportation fund shall be secured by a direct transfer of the
26 pledge funds from the comprehensive transportation fund to the
27 trustee or the Michigan municipal bond authority that is
1 authorized to receive the funds by the borrowing resolution
2 adopted by the eligible authority. The notes of the eligible
3 authority shall not be in any way a debt or a liability of the
4 state and shall not create or constitute any indebtedness,
5 liability, or obligations of the state or be or constitute a
6 pledge of the full faith and credit of the state. Each note
7 shall contain on its face a statement to the effect that the
8 eligible authority is obligated to pay the principal of and the
9 interest on the note only from funds of or due to the eligible
10 authority and that this state is not obligated to pay that
11 principal or interest and that neither the faith in credit nor
12 the taxing power of this state is pledged to the payment of the
13 principal of or the interest on the note. The notes shall mature
14 not more than 13 months from the date of issuance, shall bear
15 interest at a fixed or variable rate or rates of interest per
16 annum, and, in addition to other security required by this
17 section, may be secured by letter or line of credit issued by a
18 financial institution or as provided in the borrowing
19 resolution.
20 (2) The issuance of notes under this section is subject to
21 the agency financing reporting act, 2002 PA 470, MCL 129.171 to
22 129.177.
23 Enacting section 1. This amendatory act takes effect June
24 30, 2003.
25 Enacting section 2. This amendatory act does not take
26 effect unless House Bill No. 4072 of the 92nd Legislature is
27 enacted into law.